DBS Bank India today announced that it aims to grow its gold loan portfolio by 3x in the next five years. DBS Bank India also offers an industry-leading Fixed Deposit interest rate of 7.25% p.a. for a tenor of 600 days. The bank’s current gold loan book stands at ~ INR 4500 Cr.
Commenting on the bank’s growth in this segment, DBS Bank India Retail Customer Segment Executive Director & Head, Bharath Mani said, “DBS Bank India is well-entrenched in the Indian market, and the advantages of the expanded network across business segments, including products such as gold loans, have started to flow through. We have seen a heightened demand for gold loans among the agrarian community, and 70% of the demand is driven from southern India. We aim to grow the gold loan book by 3x to INR 13500 Cr in the next five years. Looking ahead, we will continue to build innovative solutions that cater to a wider customer franchise and empower customers to “Live more, Bank Less.”
The former Lakshmi Vilas Bank amalgamated with DBS Bank India Limited (DBIL) in November 2020. The scheme of amalgamation was under the special powers of the Government of India and Reserve Bank of India under Section 45 of the Banking Regulation Act, 1949, India. The amalgamation has provided the bank with a strong foothold in South India, and it now has a network of ~525 branches across 19 states. The integration has focused on four pillars — product and process, systems and technology, and people and brand.
DBS Bank India’s FY22 results reflected the progress on the integration as the bank reported robust growth, recording a net profit of INR 167 Cr in the fiscal. The company’s net revenue grew 11%, and asset quality further improved in FY22, with gross and net NPA ratios improving to 9.50% (from 12.93% in FY21) and 1.61% (from 2.83% in FY21), respectively.