DBS Bank India aims to expand gold and MSME loan business; details here

DBS Bank India Ltd. is focusing on expanding its gold and MSME loan businesses. After merging the former Lakshmi Vilas Bank (LVB) into its fold, DBS Bank India, which is a wholly-owned subsidiary of the Singapore-based DBS, has a substantial retail footprint. As a result, it has ambitious intentions in the gold loan market. In order to reach Rs 13,500 crore, it plans to increase the portfolio by more than three times in the next five years. The bank’s gold loan book currently stands at Rs 4,500 crore. According to Bharath Mani, DBS Bank’s executive director and head of the retail customer segment, DBS Bank India has presently a strong presence in the Indian market, and benefits from the network’s expansion across business sectors, especially those related to services like gold loans, have begun to emerge. There has been a rise in the demand for gold loans among people from rural areas, and 70 percent of that demand comes from southern India. To enhance the share of retail banking, DBS Bank India plans to expand its digital offerings and products, including loans for SMEs, and MSMEs, unsecured personal loans for consumers, and small business loans against property for working capital requirements of small business operations. Mani claims that DBS Bank India wants to expand its retail and lending operations, and targets 60 percent of its revenues coming from consumer and SME banking and 40 percent of its total revenues from huge companies. New branches will be established in the upcountry as LVB has a significant presence in the south. The gold loan service will be made available in 500 branches, as well as unsecured personal loans for everyone all across the country, SME loans in 250 outlets, and MSME loans in 475 branches. The typical loan amount for SMEs and MSMEs will be in the range of Rs 20-30 lakh. Additionally, the lender intends to expand tie-ups for bancassurance, introduce its own proprietary credit card, and expand collaborations with NBFCs for co-lending. It currently offers a credit card that carries the Bajaj Finserv co-brand. It has bancassurance tie-ups with three insurers presently. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.