DBS back in the black; gets aggressive with 7% on SB deposits

DBS Bank India swung back into the black with a small profit in 2015-16 and to widen retail footprint, the Singapore-based lender will offer an interest of 7 per cent on its savings bank (SB) accounts, which is highest in the industry.
Unlike the competition, which offers 6 per cent (Kotak Mahindra and Yes Bank on deposits above Rs 1 lakh and RBL 7.1 per cent for above Rs 10 lakh), DBS will pay 7 per cent even on Re 1 balance.
"We have returned to profit with a marginal profit in FY16 after the losses in FY15," DBS Bank India Chief Executive Surojit Shome told reporters here on the sidelines of an event to launch the bank's newest product offering. But he did not offer more details.

Reverses on bets taken on infra and construction sectors had led to a loss of Rs 275 crore in the previous fiscal, where it had to write-off loans and make heavy provisions.
Shome said the quantum of core capital which the Singapore parent had to infuse also went up to Rs 670 crore last year, while over the past two years, it has infused Rs 1,700 crore in tier-II capital. The bank has so far invested Rs 6,500 crore in the country.
At present, India accounts for just 5 per cent of its overall loan-book, but accounts for the highest investments outside of the capital employed to cover up for bad assets, Group Chief Executive Piyush Gupta said.

Singapore's largest lender DBS Bank today said it has unveiled India's first mobile-only bank - 'digibank'.

Gupta said the bank is able to give a higher interest of 7 per cent as against the current 5 per cent for up to 40,000 savings bank account-holders, because of the savings which will be accruing to it will be passed on to the customers.
He said this offering is possible because of investments in digital and added at the group level, it has increased its spend on digital to SGD800 million this year from SGD 700 million a year ago.
It is targeting to enroll five million accounts through the Digibank initiative and take the deposits up to Rs 50,000 crore in five years, Gupta said.