DBS India reports Rs 275 cr loss on write-offs in FY15

Mumbai: Singapore-based DBS Bank's Indian arm on Friday reported a loss of Rs 275 crore in FY15 as it cleared stress on its books suffered due to reverses on bets on infrastructure and construction sectors in last four years.

The lender had posted a net profit of Rs 2 crore for the financial year 2014.

"We have taken proactive steps to re-balance our portfolio and strengthen the balance sheet. We have provided for and rundown a substantial part of the stressed portfolio which was essentially in construction and infrastructure-linked sectors," DBS Bank India's newly-appointed Chief Executive Surojit Shome told reporters here.

He said the domestic arm of the largest Singaporean lender had to write off Rs 667 crore and sell receivables worth over Rs 400 crore for just Rs 105 crore during the fiscal.

The bank also witnessed a 31 per cent jump in provisioning at Rs 704 crore. Its provision coverage ratio has more than doubled to 59.35 per cent from 27.04 per cent in FY14.

DBS India, the first foreign lender to apply for operating as a wholly-owned subsidiary, saw gross non-performing assets ratio come down to 7.79 per cent in FY15 from 13.45 per cent in the previous year.

Shome said the bank is committed to India while adding that last year its parent infused Rs 1,625 crore in tier-II capital, taking the total capital adequacy to 17.01 per cent.

Without disclosing a number, he said there might be another tier-II capital infusion this fiscal as well.

Shome added that there was also a Rs 4,500 crore reduction in the investment book during the fiscal, driven by a withdrawal from the certificate of deposits, which the bank feels is not friendly from the perspective of newer norms on liquidity.

After diversifying its book, DBS India will be concentrating on small businesses and consumer loans to drive growth, Shome said, adding it will continue doing the large and mid-corporate lending.