Singapore (CU)_As part of the streamlining operations, Singapore-based DBS Bank aims to decrease its network of 600 branches in India in the next two to three years. When it collaborated the troubled private lender Lakshmi Vilas Bank (LVB) with its Indian subsidiary DBS Bank India in the fourth quarter of calendar year 2020, the bank acquired 560 branches into its fold.
At the end of December 2020, the consolidated deposits of its Indian operations stood at SGD 9 billion and net advances stood at SGD 5.6 billion. Piyush Gupta, chief executive of the DBS Group, in a post-results media interview said, ‘Do we need 600 branches? I don’t think so.” However, the bank did not mention about the number of branches it was preparing to rationalize.
Shakti Sinha, the then director of LVB, said before the collaboration that a network of 563 branches was enormous for a bank of its size. Earlier, he had said that there is every possibility of DBS Bank India rationalizing LVB’s branch network during these days of digital banking.
DBS Bank has stated that it will have a significant number of branches, particularly in cities in the five southern Indian states. A strategy called Phigital has been introduced, which combines physical networks with a strong digital presence. The bank hopes that, because of the advantages of lower deposit costs and higher returns, integrated operations would increase its net interest margin. In 12-24 months, the bank expects profits in Indian operations.
