Results driven by the expansion of both retail and corporate banking, bolstered by expanded physical presence
DBS Bank India Limited, the wholly owned subsidiary of DBS Bank Ltd., announced its financial results for the fiscal year ending March 31, 2023. The bank reported a net profit of INR 228 Cr for FY22-23, representing a 37% growth compared to FY21-22’s net profit of INR 167 Cr. Business momentum continued to be healthy, with overall deposit growth of 25% and a 10% increase in customer assets* Y-o-Y. Net revenue grew by 16% for the year, driven by strong retail and corporate banking performance. Asset quality further improved in FY22-23, with gross and net NPAs reducing to 5.61% (from 9.5% in FY21-22) and 1.17% (from 1.61% in FY21-22), respectively. The balance sheet exhibited robust growth at 32%, with total assets reaching INR 1.1 lakh Cr.
Key financial performance highlights:
- Customer assets* grew 10% to reach INR 50,701 Cr in FY22-23, compared to INR 46,250 Cr in FY21-22.
- Net revenues grew by 16%, reaching INR 3,351 Cr in FY22-23, up from INR 2,892 Cr in FY21-22.
- Stable income (Net Interest Income (NII) and fee income) exhibited a growth of 18% to reach INR 3,068 Cr in FY22-23.
- FY22-23 PAT stood at INR 228 Cr, increasing from INR 167 Cr in FY21-22.
- The net NPA ratio improved to 1.17% compared to 1.61% in the previous year, while the gross NPA ratio showed improvement to 5.61% in FY22-23 from 9.5% in FY21-22. This improvement resulted in a provision coverage of 87.7%.
- As of FY22-23, the Capital Adequacy Ratio stood at 15%, with Common Equity Tier 1 (CET1) at 12.55%.
Speaking on the DBS Bank India results for FY22-23, Surojit Shome, Managing Director & Chief Executive Officer, DBS Bank India, said, “During FY22-23, we substantially completed the integration of the business that was acquired through the amalgamation of the erstwhile Lakshmi Vilas Bank. The outlays on the multi-dimensional integration process across the technology platform, branch network and people were reflected in elevated one-time and ongoing costs in this fiscal. Despite that, overall performance parameters were better than the previous year with robust growth across all our businesses as we continued to make meaningful strides towards improving our business momentum, asset quality, and depth of our talent. Our differentiated proposition of an expanded physical network, overlayed with strong digital capabilities will allow us to significantly scale our SME and consumer businesses, strengthen our large corporate franchise to improve overall financial performance by leveraging our platform more effectively.”
*Advances plus credit substitutes.