DBS turns Indian franchise into wholly-owned unit

It plans to build 75-90 branches in India.

DBS received approval from the Reserve Bank of India (RBI) to convert its Indian franchise into a wholly-owned unit.

According to an OCBC report, DBS intends to open about 75-90 branches in India in the coming years.

DBS Group CEO Piyush Gupta said, “Over this time, we have grown to become the fifth-largest foreign bank in India. As we look into the future, I believe India’s consumption boom, investment and export drive, as well as positive policy action, will further fuel its growth, making it one of the biggest stories in Asia by 2030. With this local incorporation, DBS will be able to build greater scale in India, enabling us to better participate in India’s rise.”

"We expect this move to be long-term positive for the DBS as it strengthens its presence in this market," OCBC said.

Banks from India, like State Bank of India and HDFC Bank, have seen a significant jump in market capitalization in the past few years.

HDFC Bank’s market capitalisation grew by a compound annual growth rate (CAGR) of 27% from 2014 to 2017, whilst its net income grew by a CAGR of 20%.

Currently, DBS’s share has fallen from a recent high of S$22.25 to the current price of S$20.35, due to the current weak sentiment for oil and gas stocks.

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