Singapore-based lender, which has folded Lakshmi Vilas Bank It expects double-digit growth in its operations, debt and profits to further its retail business.
The bank is expecting to grow its loan book in double digits across every segment and will focus on areas where medium-sized firms have a strong presence. “We have seen demand from FAB and storage space and infrastructure. Diversification in Asian supply chains and transition to China-plus is another big opportunity,” said Neeraj Mittal, Managing Director & Head – Institutional banking Group, DBS Bank India.
The bank sees an opportunity in this too. decarbonization Initiatives have been taken and identified nine areas where targets have been set to reduce the carbon footprint. These include power, oil and gas, steel, automotive, real estate, shipping, aviation, chemicals and food, besides agriculture. The lender also provides strategic support and best-in-class services to emerging companies in the digital economy.
The bank will help medium-sized companies around environmental, social and governance issues, which is a new area of interest for lenders around the world. “Big corporates, both local and multinational, are taking steps to esg issues, to make your business model more sustainable and reduce your carbon footprint. This trend is also spreading to medium-sized corporates. DBS is staying close to such developments to capture business opportunities by providing balance sheet support to the clients along with advising them about their financial structure and options,” Mittal said.
DBS expects its business to grow in double digits and is confident of meeting the capital requirements of the rapidly growing loan book. “Despite macroeconomic and geopolitical constraints, we are confident of growing in the range of 20-25% in the coming year,” Mittal said.
The bank is not facing any capital crunch to meet the growing loan book or its support for decarbonization initiatives, which are estimated to be around $3-3.5 trillion globally. “The bank is well capitalized and with our expanded footprint, has been able to obtain sufficient liquidity to meet the increased corporate credit demand.”