DBS Bank reports higher net profit for FY21
DBS Bank India, which bailed out LVB and in the process increased its network, had reported a post tax net of Rs 111 crore in FY20.
Mumbai: DBS Bank India, the wholly-owned subsidiary of the Singaporean lender, witnessed a surge in FY21 net profit at Rs 312 crore on the merger of Lakshmi Vilas Bank (LVB), but reported a huge spike in dud loans as a result of the amalgamation with the old-age private sector bank.
DBS Bank India, which bailed out LVB and in the process increased its network, had reported a post tax net of Rs 111 crore in FY20.
The gross non-performing assets of the combined entity shot up to 12.93 per cent, with a bulk of the strain coming from the erstwhile LVB’s portfolio. The net NPAs stood at 2.83 per cent with a provision coverage ratio of 84 per cent.
The bank’s managing director and chief executive Surojit Shome acknowledged the pain on the asset quality front and the operating losses and also called it as being on “expected lines”. “We are confident of realising the long-term prospects of the combined franchise,” Shome said.
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