With fully integrated LVB, DBS Bank India focuses on gold lending and MSMEs

CHENNAI: Growing gold/MSME lending business, launching proprietary credit cards and increasing bancassurance linkages are some of the focus areas of DBS Bank India Ltd, a senior official has said.

He also said that the integration of Lakshmi Vilas Bank (LVB) with DBS Bank is almost complete. The technology integration will soon be complete and the whole bank will be working on a single solution.

“We plan to expand our gold lending business to Rs 15,000 crore in five years. Currently, it is around Rs 4,500 crore. Additionally, we will also focus on micro, small and medium enterprises (MSME), ” Bharath Mani, executive director and head of national distribution in India, told reporters on Thursday.

According to him, DBS Bank India aims to expand its retail and lending business by targeting 40% of its overall revenue to come from large corporates and 60% from its consumer and SME banking.

Mani said the bank with a foreign banking pedigree and with a wide network is ready to serve the broader commercial section.

“We can now offer the full suite of services to the MSME sector. In addition, we can also offer DBS Bank India’s products to high net worth individuals in this part of the country, Mani added.

In 2020, the Reserve Bank of India (RBI) mooted the merger of LVB whose net worth was eroded with DBS Bank India.

At that time, LVB had 563 branches and about 970 Automated Teller Machines (ATMs), while DBS Bank India had about 35 branches and mainly engaged in corporate banking.

After the merger, DBS Bank India streamlined the branch network and currently has about 525 branches in 19 Indian states.

“Less than 200 LVB employees chose to leave the bank after the merger,” Mani added.

According to him, the salaries of LVB employees have been harmonized with those of DBS Bank India staff. LVB employees have also received intensive training on technology and other aspects.

DBS Bank India will keep the LVB logo (image of Hindu Goddess Lakshmi) on branch name sign boards in parts of southern India for some time to come, Mani said.

After the merger, there was not much customer churn, but there was a flight of some high-cost deposits as the bank offered its regular interest rate, he said.

According to him, the bank plans to launch its own proprietary credit card next year. Currently, he has a co-branded credit card with Bajaj Finserv.

Mani said the bank had bancassurance links with three life insurers and planned to expand the links into the non-life space.

Comments are closed.