DBS India gets Rs 508 cr capital infusion

The Singapore-headquartered DBS Bank has pumped Rs 508.5 crore capital into its Indian franchise to support future growth plans, a top official said today.

"India is an excellent growth story for DBS Bank and an integral part of the DBS Group's Asia strategy. We have consistently invested in growing India business and augmented our capital base through a recent tier-I and tier-2 injection of Rs 508.50 crore to cater to the demands of this rapidly growing franchise," DBS India Chief Executive Sanjiv Bhasin told reporters here today.

With the latest round of capital infusion, the total capital of the foreign lender in India is over Rs 3,300 crore. "While tier-I capital has gone up to Rs 2,200 crore, tier -II has increased to Rs 1,100 crore after the capital infusion," DBS India Chief Financial Officer Yazad Cooper said.

In percentage terms, the capital adequacy ratio will be around 14.5-15% post-infusion, he said.

As per the bank, the fund will suffice to support the growth needs for the next 18 months.

Referring to growth trends, Bhasin said the bank is focussing on corporate and retail segments here.

"At present, corporate banking accounts for around 98% of its revenue with the rest coming in from retail. Over the years, we want to increase the retail contribution to 25%," Bhasin said.

The focus will continue to be on the retail liabilities side (deposits) and the bank will not enter retail asset segment (lending) in the near future, he added.

DBS, which has 12 branches, will expand its trade and cash management business in future.

Referring to the wealth management business, which most of the foreign banks focus here, the bank said this space is growing with the uptick of business opportunities.