DBS Bank India reports profit after tax of Rs 167 crore in 2021-22

DBS Bank India reported a profit after tax of Rs 167 crore in 2021-22, with firm performance in corporate and retail banking segments leading to an 11 per cent on-year rise in net revenues, the lender said via a press release on Tuesday.

The bank, which is a wholly-owned subsidiary of DBS Bank, acknowledged the lagged effects of its amalgamation with Lakshmi Vilas Bank on its net profit.

“FY22 PAT (profit after tax) stood at Rs 167 crore despite the increased annual pre-tax drag from the erstwhile Lakshmi Vilas Bank at Rs 669 crore in FY22 compared to Rs 341 crore in FY21, where the impact was only for four months,” DBS Bank said.

After being put under a 30-day moratorium by the Reserve Bank of India, Lakshmi Vilas Bank was merged with DBS Bank India in November 2020.

In the previous financial year, DBS Bank’s net advances rose 19 per cent on-year to Rs 43,898 crore, while revenues registered a growth of 11 per cent on-year to Rs 2,892 crore.

The improvement in revenues was driven by firm growth in the consumer banking business despite the third wave of COVID-19 in India from December 2021 to January 2022, DBS Bank said.

The bank’s CASA (current account savings account) ratio rose to 33 per cent in the previous financial year from 31 per cent a year ago.

Net interest income and fee income rose 29 per cent to Rs 2,580 crore in the previous financial year although the rise in income was partially offset by a 52 per cent on-year fall in trading income to Rs 284 crore 2021-22.

DBS Bank India reported an improvement in asset quality in the previous fiscal year, with the net non-performing asset (NPA) ratio dropping to 1.61 per cent from 2.83 per cent a year ago. The gross NPA ratio declined to 9.5 per cent in 2021-22 from 12.93 per cent a year ago. The bank’s provision coverage ratio was at 87 per cent.

“While the work toward recoveries on stressed advances have been underway, and reflected in improvement in NPA ratios in FY22 compared to FY21, the P&L of the erstwhile LVB franchise was still under transition as network efficiencies were being improved and the one-time pension liabilities were high,” Surojit Shome, MD, CEO DBS Bank India said.