DBS Bank India aims to grow gold-loan portfolio threefold: ED
The Hindu
The bank is a;sp planning to roll out its phygital offerings and products such as unsecured personal loan for individuals, loans against property for small business establishments for working capital requirements, increase the share of retail banking from 30% to 40%, issue of proprietary credit card and tying up with insurance players for general insurance
DBS Bank India Ltd. has set itself a target to grow the gold loan portfolio by more than threefold in five years, said a top official.
“Currently, the gold loan profolio stands at ₹4,500 crore,” said Bharat Mani, ED & Head – Retail Customer Segment. “It is a core inherited product of erstwhile Lakshmi Vilas Bank. We want to build and grow it to ₹13,500 crore,” said Bharat Mani, ED & Head – Retail Customer Segment.
Besides, DBS Bank India is planning to roll out its phygital offerings and products such as unsecured personal loan for individuals, loan against property for small business establishment for working capital requirement, increase the share of retail banking from 30% to 40%, issue of proprietary credit card and tying up with insurance players for general insurance.
“Since the amalgamation with LVB some two years ago, we are on track as per the plan despite losing one year due to Covid. By January, technical integration of LVB with DBS will get completed and we will migrate to the higher version of Finnacle and the whole bank will work on a single solution,” he said.
According to Mr. Mani, gold loan will be offered in 500 outlets, unsecured personal loans for all across the country, SME loans in 250 branches and MSME loans in 475 branches. The average ticket size of SME and MSME loans would be in the region of ₹20-30 lakh.
On the branch network, he said that at present they have 525 branches including 35 of DBS. LVB had a strong presence in South and hence new branches will be opened in the upcountry.
Asserting that they have adequate funds for the next two to three years, he said the bank has made enough provisions in the past. So, the recovery would add to the kitty.