DBS Bank India stocks: DBS Bank India eyes double-digit growth in loan book, profit

Mumbai: DBS Bank was the first international bank to buy into a domestic lender to give a push to retail lending. It is now increasing its lending presence among SME and retail borrowers after folding Lakshmi into itself.

The Singapore-based bank expects loans and profits to expand in double digits.

“We have seen demand from FAB & storage space and infrastructure. The diversification in Asian supply chains and shift to China-plus is another big opportunity,” said Niraj Mittal, head – Institutional Banking Group, DBS Bank India.

The bank is also seeing an opportunity in decarbonisation initiatives and has identified nine sectors where targets have been set to reduce carbon footprint. These include power, oil & gas, steel, automotive, real estate, shipping, aviation, besides chemicals and food & agriculture. It also provides strategic support and best-in-class services to emerging companies in the digital economy.

The bank will be helping the mid-sized companies around environmental, social and governance issues.

“Large corporates, both local and MNCs, are taking steps around ESG issues, tweaking their business models to be more sustainable and to reduce their carbon footprint. This trend is also spreading to mid-sized corporates. DBS is staying close to such developments to capture business opportunities by advising clients around their financing structures and options as well as providing balance sheet support,” Mittal said.

DBS expects to grow its business in double digits and is confident of meeting the capital needs of a fast-growing loan book.

“Despite macroeconomic and geopolitical headwinds, we are confident of growing in the 20-25% range in the coming year,” Mittal said.

The bank is not facing any capital constraints to meet the growing loan book or its support for decarbonisation initiatives.

“The bank is well capitalised and, with our expanded footprint, able to garner sufficient liquidity to meet increased corporate loan demand,” he said.

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