Singapore-based DBS Bank is, reportedly, planning to open 50 branches in India over the next three years, with an aim to benefit from the new guidelines for foreign banks issued by the Reserve Bank of India (RBI).
Under the new policy that was introduced earlier this month, foreign banks moving to wholly owned subsidiary (WOS) structure will be treated as local banks.
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As part of its plan, DBS, which currently offers wealth management and deposit products in India, also aims to boost its retail banking segment in the country. The bank currently operates 12 branches and 37 ATMs.
DBS Bank consumer banking group executive director and head Rahul Johri was quoted by The Economic Times as saying that they expect their retail banking operations to be profitable by 2015.
"We have 23,000 clients and we will add another 8,000 next year, which will help us extract greater value," Johri added.
Under the retail banking segment, DBS will launch asset products such as mortgages and loan against property in the first quarter of 2014.
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By GlobalDataNoting that they are among the few foreign banks that have been open to go the WOS route, Johri said they will depend on mobile banking to bring down the cost of operations in rural centres.
"Our hiring has been done with that thought process. There are some open items on the time frame in which foreign banks have to meet the 40% priority sector norms and clarity on stamp duty and capital gains," Johri added.
The new policy, however, is yet to attract banks such as Citigroup, Standard Chartered Bank, HSBC and Deutsche Bank.
