DBS Bank India Announces Its Financial Results



DBS Bank India Limited has announced its financial results for the year ending March 31, 2022. The bank reported a net profit of INR 167 Cr for FY22. Business momentum was healthy, with overall advances growing 19% over last year. Net revenue grew 11% on the year with a strong performance by both the corporate and retail banking segments. Asset quality further improved in FY22, with gross and net NPAs reducing to 9.50% (from 12.93% in FY21) and 1.61% (from 2.83% in FY21), respectively.

Some of the key financial performance highlights:          

 ●   Net advances grew 19% to INR 43,898 Cr from INR 36,973 Cr in FY21.

 ●   The CASA ratio improved to 33% in FY22 from 31% in the previous fiscal year.

 ●   Net revenues grew 11% annually to INR 2,892 Cr in FY22 from INR 2,599 Cr in FY21.  

 ●   Revenue growth was led by Institutional Banking across products and services and robust growth of Consumer Banking business despite the third Covid wave (Dec 2021 - Jan 2022).

 ●  Stable income (NII and fee income) grew by 29% to INR 2,580 Cr in FY22. This was partially offset by a 52% on-year drop in trading income at INR 284 Cr in FY22, mainly due to lower market opportunities vis-à-vis FY21 with the reversal of the rate environment.

 ●   FY22 PAT stood at INR 167 Cr FY21* despite the increased annual pre-tax drag from the erstwhile Lakshmi Vilas Bank at INR 669 Cr in FY22 compared to INR 341 Cr in FY21, where the impact was only for four months. 

 ●   The net NPA ratio improved to 1.61% in FY22 from 2.83% last year. Simultaneously, the gross NPA ratio improved to 9.5% in FY22 from 12.93% in FY21, giving 87% provision coverage. Credit risks and gradual progress with NPLs from the LVB franchise were under control.

 ●   In FY22, DBS Bank Ltd., Singapore infused INR 1,040 Cr capital in DBS Bank India to increase the Capital Adequacy Ratio to 16.29%, with CET at 13.71%, compared to 15.13%, with CET1 at 12.34% in FY21.

Speaking on the FY22 results, Surojit Shome, MD & Chief Executive Officer, DBS Bank India, said, “Revenue growth was witnessed across both corporate and retail segments. Large corporate & SME businesses witnessed robust growth in lending, trade, cash as well as treasury products. Retail growth was fuelled by savings accounts, mortgages and the wealth business. While the work toward recoveries on stressed advances have been underway, and reflected in improvement in NPA ratios in FY22 compared to FY21, the P&L of the erstwhile LVB franchise was still under transition as network efficiencies were being improved and the one-time pension liabilities were high. Significant strides have been made in integration of the expanded franchise in terms of products, process, technology, brand and most importantly, our people. The advantages of the expanded network across businesses segments, including products such as Gold Loans have started to gradually flow through, despite the repeated Covid waves.”

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