DBS Bank on Monday said digitisation is changing consumer preferences in the financial sector rapidly after it launched a locally incorporated wholly-owned subsidiary, DBS Bank India.
In an interview to CNBC-TV18, Surojit Shome, chief executive officer, said, "DBS Bank has 2.5 million customers and this transformation would help the bank to add a strong physical network expansion that will help strengthen physical plus digital strategy, which is the primary route to grow business in India."
From March 1, 2019, all the branches of DBS Bank in India will function as branches of DBS Bank India after the Reserve Bank of India (RBI) approved the amalgamation.
According to Shome, the bank is planning to make its presence in 25 cities with more than 100 touch points over the next 12 months, "In March, we aim to double our network and would be adding nine new cities and five new centres which are unbanked rural. Touchpoints would include branches, digital kiosks as well as manned ATMs to build relevant footprint."
Shome said DBS Bank's business was skewed more towards corporate lending, wherein 70 percent of the book was corporate, "However, going forward, our goal over the next three year is to take the book to 40 percent large and medium corporates, 30 percent SMEs and 30 percent in the consumer sector."
"By the end of this financial year, the bank expects the net non-performing assets (NPAs) to be less than 0.4 percent and coverage ratio to be above 90 percent," he added.