Mumbai: DBS Bank India (DBS), part of Asia’s foremost financial services group, DBS Group Holdings Limited today announced its annual financial results for the fiscal ending 31 March, 2016.
Performance highlights for the year ended 31 March, 2016:
There has been an increase in overall lending both in Institutional Banking and Consumer Banking segment in line with the bank’s India strategy. Net advances increased by 11.5% to INR 17,653.1 crore from INR 15,828.7 crore in the corresponding period of the previous year.
The growth in total deposits was marked by increase in current account balances by 32.5% to INR 1,428.0 crore, savings deposits by 64.3% to INR 460.7 crore and term deposits by 34.3% to INR 21,538.8 crore. Growth in CASA YoY was 39.1% albeit from a small base. The bank’s CASA ratio improved to 8.1% compared to 7.8% last year.
Despite of continued credit deterioration in overall banking sector, the bank maintained net non-performing assets (NPAs) below 4.5% [4.34% as on 31 March 2016 as compared to 4.15% as on 31 March 2015]. The Provision Coverage Ratio (PCR) improved from 59.35% to 62.28%. The bank had starting recognizing in FY 2013-14 and FY 2014-15, the weakness in the various sectors which have been hit by the slowdown in growth and drop in commodity prices.
During the year, DBS Group infused additional CET1 capital of INR 667.5 crore taking the total capital funds to INR 6,168.9 crore, inclusive of USD 260.0 million infused last year as Basel III compliant sub debt. The capital infusion by DBS Group underlines the bank’s commitment to India and its plan to convert into a wholly-owned subsidiary (WOS), which is awaiting regulatory approval.
Speaking on the occasion, Surojit Shome, CEO – India, DBS Bank said: “The past year has been a year of transition for our existing core businesses as is evident from our annual performance. We have been ahead of the curve in implementing initiatives which led to a gradual turnaround in financial performance, and the bank reporting net profit of INR 8.6 crore for FY16. The all round growth in advances and deposits, improved coverage and infusion of additional capital has further strengthened our balance sheet in India. Further, the year has also been very exciting as we have continued to leverage on the opportunities that are continuing to open up with rapid digitization and growth of e-commerce. It is to this end that we have launched a mobile-only offering through digibank for digitally savvy consumers and have also continued to expand our products for small and medium enterprise businesses (SMEs).”
At a group level, DBS continues to report strong financial results. In February 2016, DBS Group reported record net profit of SGD 4.45 billion for full-year 2015, despite slower economic growth and elevated volatility in financial markets.
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