Singapore-based DBS Group Holdings, is set to roll out its retail banking services in India.At present, DBS has 10 branches across key cities like Mumbai and Delhi. DBS India has a 37.5% stake in Cholamandalam DBS Finance, a non-bank financial institution.
However, in contrast to other overseas banks, which preferred to develop a retail base by growing their loan books, DBS intends to focus on building its deposits first – reported The Economic Times.
Reportedly, Barclays and Deutsche Bank, which had forayed into the Indian market a couple of years ago, hit by a sharp spurt in delinquencies, had to change their focus from mass players to niche players. Other banks like Citi, HSBC and ABN Amro have run into losses in their retail and consumer banking businesses.
Speaking to the newspaper, Rajan Raju, group executive of consumer banking group at DBS Bank, said: “With 10 branches, from a corporate point of view we cannot be a mass market bank. We are currently servicing a niche in the consumer business with liabilities, investment and protection. We are not looking at assets at this stage. In the first quarter we will also start off with transaction services for retail by launching a premium debit card. Post the crisis the focus is on liabilities. Liabilities has become a key driver in the retail business rather than assets. Almost all the banks are looking to improve their liability base — especially the current and savings account base so as to get a pool of cheap money.”
