Singapore-based DBS Bank is planning to open 50 branches in India in the next three years, with an aim to benefit from the new guidelines issued by Reserve Bank of India (RBI) for foreign banks.
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As per the new guidelines, foreign banks moving to wholly owned subsidiary (WOS) structure would be treated as local banks.
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.
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.
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By GlobalDataUnder the retail banking segment, DBS will launch asset products such as mortgages and loan against property in the first quarter of 2014.
Johri told the news agency that they are among the few foreign banks that have been open to go the WOS route.
"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.
DBS, which has 12 branches and 37 ATMs in India, has assets of INR407 billion (US$6.46 billion) at the end of March 2013.
