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DBS Bank India eyes self-sufficiency in capital within next 3-5 yrs

Lender aims to reduce net NPA below 2%; Grow CASA to 40% level

DBS. Photo: Bloomberg
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The capital assessment is based on growth trajectory.. Photo: Bloomberg

Abhijit Lele Mumbai
DBS Bank India, which bought ailing Lakshmi Vilas Bank, expects to generate internal capital--that is, attain self-funding capacity--over a three-five year period to grow business.

Fow now capital is adequate and as the bank grows, it will need resources for which a plan is already in place. Eventually over three to five years, it assumes that business on combined basis will be large enough to be able to generate capital to self-fund growth. Till that time, the bank has the support of group (DBS), said Surojit Shome, managing director and chief executive, DBS Bank India.

The bank's Capital Adequacy Ratio