BackSingapore’s DBS Bank to expand operations in India
Singapore’s DBS Bank to expand operations in India
Premium
Singapore: Singapore’s DBS Bank has set up a factoring office in India as parts of its plan to expand its global transaction services business regionally, The Straits Times reported on Friday.
DBS obtained its membership of the Factors Chain International (FCI) in January, allowing it to widen factoring solutions it can offer in India. It has also introduced export factoring in its Indonesian operation since last month.
Export factoring was likely to increase alongside with the strong Asian trade growth, projected to account for 60 per cent of the global trade flow by 2020, said head of DBS’ global transaction services, Tom McCabe.
Factoring volume in Asia rose 219% from 2004 to 2010, valued at SD 637 billion, according to FCI, the world’s largest factoring network. Likewise, factoring volume in Singapore grew by 123 per cent to SD 10.4 billion over the same period.
It focuses on cash management and trade funding for companies, allowing them to sell their invoices to financial institutions and get up to 90% of the invoiced money in advance.
The buyers of invoices collect the money later on behalf of the businesses and charges interest on the advanced money given under the factoring system.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
