DBS Bank Strengthens India franchise on 24% growth in advances and 15% in deposits during FY 2016-17

DBS Bank India (DBS), part of Asia's leading financial services group, DBS Group Holdings Limited today announced its annual financial results for the fiscal ending 31 March, 2017.

Performance highlights for the year ended 31 March, 2017:

- Net advances grew by 23.7% to INR 21,838.2 crore
- Total deposits increased by 15.2% to INR 26,991 crore
- Gross and net non-performing assets (NPA) ratios were moderated to 3.77% and 2.12% respectively
- Capital Adequacy Ratio ended at 16.49% as on 31 March 2017
- Net investments reduced by 34.2% as the drop in interest rates levelled off, thereby moderating total assets growth at 1.6%. Total assets stood at INR 44,542.1 crore as on 31 March 2017

- Marginal increase in net profit at INR 12.8 crore for the year ended 31 March 2017 despite continued pressure due to drag from NPAs

Operating review:

Credit growth

There has been an increase in overall lending both in institutional banking and consumer banking segments in line with the bank's India strategy. Net advances increased by 23.7% to INR 21,838.2 crore from INR 17,653.1 crore in the corresponding period of the previous year.

Deposit growth

The growth in total deposits was marked by increase in current account balances by 22.6% to INR 1,751.4 crore, savings deposits by 69.8% to INR 782.1 crore and term deposits by 13.6% to INR 24,457.4 crore. Growth in CASA YoY was 34.1% albeit from a small base. The bank's CASA ratio improved to 9.4% compared from 8.1% last year.

Asset quality

The bank improved its net NPAs to 2.12% as on 31 March 2017 from 4.34% as on 31 March 2016. The reduction on gross and net NPAs was through recoveries, sale of NPAs as well as some written down assets to asset reconstruction companies (ARCs).

Capital Adequacy

Despite 23.7% growth in advances, the capital adequacy ratio remains strong at 16.49% (the 18.64% as on 31 March 2016 was at elevated levels due to a INR 667.5 crore capital infusion from Head Office in March 2016).

Speaking on the occasion, Surojit Shome, CEO - India, DBS Bank said: "Over the previous financial year our focused approach led to an all-around growth in advances and deposits and improvement in asset quality. We continue to drive the digital agenda for DBS Bank in India in our consumer, SME and institutional banking businesses."

At the overall group level, DBS reported net profit of SGD 4.24 billion for full-year 2016 with total income at a record SGD 11.5 billion.

Source : Equity Bulls

Keywords