Singapore’s DBS Bank has secured in-principle nod from the Reserve Bank of India (RBI) to set up a wholly-owned-subsidiary (WOS) in India.
The bank said that the approval will allow it to expand offerings and cater to retail, SMEs and large corporates across a larger footprint.
“WOS will enable the bank to offer competitive transaction banking and supply chain solutions through specialised offerings that span both cash management and trade finance,” the bank said in a statement.
The Singaporean lender launched a representative office in India in 1994, which was converted to a bank branch the following year.
DBS Group CEO Piyush Gupta: “As we look into the future, I believe India’s consumption boom, investment and export drive, as well as positive policy action, will further fuel its growth, making it one of the biggest stories in Asia by 2030. With this local incorporation, DBS will be able to build greater scale in India, enabling us to better participate in India’s rise.”
Gupta expects the transition to the subsidiary model to be completed in the next six to nine months and expects the bank to increase its branch network from the existing 12 to more than 70 over the next few years. So far, the bank has invested $1bn in its India business.
In addition, DBS Bank also established its new India headquarters in the country’s financial hub Mumbai.