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Home / Companies / Company Results /  DBS India reports higher FY21 profit, NPAs surge

DBS Bank India, the wholly-owned subsidiary of the Singaporean lender, reported a surge in net profit to 312 crore in FY21 on the merger of Lakshmi Vilas Bank (LVB). The bank had reported a net profit of 111 crore in the previous fiscal year. FY20.

Following the merger with the old age private sector bank, DBS India saw deterioration in asset quality with gross NPA rising to 12.93%. Excluding the LVB merger, gross NPA would have stood at 1.83%.

“We have made considerable progress with the integration of Lakshmi Vilas Bank (LVB) since the amalgamation in November 2020 even with the dislocations due to the second wave of the pandemic. While, as expected, there has been an immediate impact on our financial results due to the high Net NPAs and operating losses at LVB, we are confident of realising the long-term prospects of the combined franchise," said the bank’s MD & CEO Surojit Shome.

The bank reported a 44% increase in the overall deposits to 51,051 crore, including 18,823 crore of it from LVB. Savings deposits grew 207%, current account was up 98% year on year. Overall current and savings accounts deposits (CASA) ratio improved to 31% from 19% earlier.

With the infusion of 2500 crore into the bank from the parent, capital Adequacy Ratio improved to 15.13%, with tier 1 capital at 12.34%.

In a statement on Thursday, DBS said that after the amalgamation, the bank's primary focus has been on welcoming the employees and customers of LVB into the DBS family, unifying the LVB and DBS workforces and re-building the LVB business.

The integration of operating platforms and branches is currently underway. The steady growth in LVB current and savings account balances as well as in the gold loans portfolio in 2021 is an early indicator of the success of the current strategy, it added.

In November RBI announced the merger of LVB with the wholly-owned subsidiary of DBS Bank in India soon after it imposed a one-month moratorium on the private lender and capped deposit withdrawals at 25,000.

Post the merger, DBS Bank India has 600 branches in 19 states and 5,500 employees.

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