DBS Bank India reports net profit of Rs167 crore in 2021-22

3 Aug 2022 , 07:46 AM

According to a press statement from the firm on Tuesday, DBS Bank India recorded a profit after tax of Rs 167 crore for the fiscal years 2021—22, with strong results in the corporate and retail banking divisions driving an increase in net revenues of 11% year over year.

The bank, a fully-owned subsidiary of DBS Bank, stated that the merger with Lakshmi Vilas Bank had a delayed impact on its net earnings. Despite a higher yearly pre-tax drag from the former Lakshmi Vilas Bank in FY22 at Rs669 crore compared to Rs341 crore in FY21, when the impact was only felt for four months, DBS Bank reported that FY22 PAT (profit after tax) was at Rs167 crore.

The Reserve Bank of India imposed a 30-day ban before Lakshmi Vilas Bank and DBS Bank India amalgamated in November 2020. DBS Bank’s net advances increased by 19% year over year to Rs43,898 crore in the most recent fiscal year, while revenues increased by 11% year over year to Rs2,892 crore.

Despite the third wave of COVID-19 in India from December 2021 to January 2022, the consumer banking industry continued to develop well, driving an increase in revenues, according to DBS Bank. The bank’s CASA (current account savings account) percentage increased from 31% to 33% in the preceding fiscal year.

In the preceding fiscal year, net interest and fee revenue increased by 29% to Rs2,580 crore, while the increase in income was largely offset by a 52% year-over-year decline in trading income to Rs 284 crore in 2021—2022.

In the preceding fiscal year, DBS Bank India reported an improvement in asset quality, with the net non-performing asset (NPA) ratio falling to 1.61 % from 2.83 % the previous year. From 12.93% in 2021—2022 to 9.5% in the same period, the gross NPA ratio decreased. The bank has an 87 % provision coverage ratio.