DBS India grows profitability despite impact from amalgamation of Lakshmi Vilas Bank
BS Bank India Limited (DBIL), the wholly-owned subsidiary of DBS Bank, has announced its financial results for the fiscal ending 31 March 2021.
As of 27 November 2020, Lakshmi Vilas Bank (LVB) was amalgamated with DBS Bank India Limited (DBIL), and as per the Scheme of Amalgamation, the results include LVB’s performance since that date.
After the amalgamation, the bank’s primary focus has been on welcoming the employees and customers of LVB into the DBS family, unifying the LVB and DBS workforces and re-building the LVB business. The integration of operating platforms and branches is currently underway. The steady growth in LVB's current & savings account balances as well as in the gold loans portfolio in 2021 is an early indicator of the success of the current strategy.
Speaking about the bank’s performance, Surojit Shome, Managing Director and CEO – DBS Bank India Limited, said, “We have made considerable progress with the integration of Lakshmi Vilas Bank (LVB) since the amalgamation in November 2020 even with the dislocations due to the second wave of the pandemic. While, as expected, there has been an immediate impact on our financial results due to the high Net NPAs and operating losses at LVB, we are confident of realising the long-term prospects of the combined franchise. In the erstwhile LVB operations, we have already been able to revitalise the gold loans business and grow deposits. Our immediate priority is to integrate the operating systems and processes so that we can deliver best-in-class solutions to a wider customer franchise.”
In June 2021, DBS was named by Forbes in its list of the World’s Best Banks for the second consecutive year. Based on a global survey of 40,000 banking customers, DBS was ranked first out of 30 domestic and international banks present in India. Earlier in the year, Asiamoney recognised DBS Bank India as the Best International Bank in India. The bank was also lauded for being one of India’s Best Employers in BFSI by the Great Place to Work Institute. The bank has a network of over 600 branches across 19 states in India, with about 5,500 employees.
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