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DBS Bank India’s net profit surged by 181 per cent in 2020-21 to ₹312 crore from ₹111 crore in the fiscal year 2019-20.
As of November 27, 2020, Lakshmi Vilas Bank (LVB) was amalgamated with DBS Bank India Ltd (DBIL) and the results include LVB’s performance since that date.
Net revenue for DBIL grew by 85 per cent to ₹2,673 crore in 2020-21 from ₹1,444 crore in 2019-20. The net revenue for last fiscal includes ₹134 crore from LVB.
Total deposits increased by 44 per cent to ₹51,501 crore, which includes ₹18,823 crore from LVB.
Savings account balances grew by about 207 per cent, and current account balances grew by about 98 per cent year on year, including the growth on account of the amalgamation.
NPA
Overall CASA ratio improved to 31 per cent from 19 per cent.
Gross non performing assets (NPA) remained moderate at 1.83 per cent for DBIL excluding the LVB portfolio.
While gross NPA deteriorated to 12.93 per cent after the amalgamation of LVB, the net NPA for the bank on a combined basis, stands at 2.83 per cent given 84 per cent provision coverage.
“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,” DBIL said in a statement.
Platforms integration
The integration of operating platforms and branches is currently underway.
“The steady growth in LVB current and savings account balances as well as in the gold loans portfolio in 2021 is an early indicator of the success of the current strategy,” it further said.
Surojit Shome, Managing Director and CEO, DBIL said there has been considerable progress with the integration of 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,” he said, adding that in the erstwhile LVB operations, DBIL has 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,” he further said.
DBIL’s capital adequacy ratio stood at 15.13 per cent, with CET1 at 12.34 per cent. During the year, DBS Bank infused ₹2,500 crore into DBIL to support the amalgamation.
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