Mumbai: Singapore-based DBS Bank Ltd on Tuesday exited its consumer loans business in India when it sold its 37.48% stake in local non-banking financial company, Cholamandalam DBS Finance Ltd (CDFL), to its Chennai-based partner Murugappa Group for Rs376 crore.
The sale doubles Murugappa’s holding to 74.96%.
DBS chief executive Piyush Gupta said the bank has recovered its “carrying cost of investment” from the deal.
“We spent some time figuring out what was the best way to maximize our business opportunity here and realized that we are not going to focus on the consumer segment for the next few years,” Gupta said, explaining the rationale behind the decision to end the partnership.
Though DBS did not give consumer loans through its bank, CDFL had a Rs3,000 crore portfolio at its peak, giving out home, auto and personal loans.
Gupta said DBS will now focus on the “corporate and top-end affluent segments in India”.
DBS currently has 10 operational branches with two more in the pipeline.