DBS Bank India Looks To Expand Footprint In India; Focus On SME, Retail Segments

DBS Bank India is looking to grow its presence in the country and is targeting to have its footprint in 15 States with at least 39 branches by the middle of this year.

“Our expanded footprint is now over 12 states. We are in 22 cities and we have around 30 branches today. We are growing our footprint. By mid-2020, we hope to increase coverage of States to 15, branches will be close to 39 and we will have some additional touchpoints across kiosks and other formats,” said Niraj Mittal, Head - Institutional Banking Group, DBS Bank India.

DBS Bank (branches) were amalgamated by conversion into DBS Bank India Limited (DBIL), a wholly-owned subsidiary (WoS) of Singapore-based DBS Bank from March 1, 2019.

In an interaction with BusinessLine, Mittal said that while historically the lender has been a wholesale franchise in India, it is looking to focus more on small and medium enterprises (SMEs) and retail customers, as well as expanding into Tier II and below cities.

Over a five-year period, the lender plans to reshape its business portfolio mix, comprising 40 per cent large corporates, 30 per cent SMEs and 30 per cent consumer business.

“Our book is largely a wholesale book at present — about 70-odd per cent exposure comes from larger corporate business, 20 odd per cent from SME business and we have a small consumer business as well from an asset perspective,” Mittal said.

In terms of strategy, the lender is focusing on trade finance from large- to mid-sized companies as well as SMEs and is also harnessing technology.

“We are now consciously doing more with the same customer…instead of just being a balance sheet provider, we are doing in a much more thought through manner and are doing other related flow business — trade finance, cash management, foreign exchange business and how we can help our clients to hedge risk. Technology is important,” he said.

The bank remains cautious on the infrastructure front but said it is willing to work on projects depending on the sponsors and structure as well as on sustainability-related projects in sectors like wind and solar energy and ports.

While declining to comment on the resolution of Ruchi Soya as the case is sub-judice, Mittal was optimistic about the Insolvency and Bankruptcy Code. “The whole industry is watching. Resolutions are always good. It’s not easy particularly when a thing hasn’t been done before, it takes time. But resolutions are good news,” he said.