Mumbai-based DBS Bank India Aims for Doubling its Small Business Exposure

Having achieved its target of a billion-dollar book in the small business segment, DBS Bank India now plans to double its exposure in three years, a senior banker said, underscoring the lender’s optimism around a sector that contributes nearly 30% to the gross domestic product (GDP) and is a significant job creator.

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Expansion Strategies and New Product Offerings

“We are growing our SME (small and medium enterprise) book and we have added new products. Like startups, it is not only a lending business and there is a liability side of the business too,” Rajat Verma, managing director and head of institutional banking at DBS Bank India said in an interview.

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Positive Revenue Growth in SME Business Segment

Its SME business revenue has increased to 20% of its institutional banking revenue in Q1 2024, from 19% in Q1 2023. These percentages, however, exclude the offshore institutional book.

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Consistent Growth Trajectory and Asset Quality Assurance

Verma believes the current growth trajectory of its small business segment, which he says is “in the 30s”, should continue at the current level.

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Focus on Client Onboarding and Long-term Partnerships

According to Verma, DBS Bank India’s strategy is to partner with these companies for the long term. “I am also interested in making sure that we onboard clients who will stay with us five or 10 years down the road,” he said, adding that the bank is interested in SMEs, midcaps, and large caps.

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Embracing ESG Financing and Market Expansion

Meanwhile, the bank’s environmental, social, and governance (ESG) financing book had crossed SGD 1 billion (about $740 million) in 2023. While it had planned to grow from that base by 60% by the end of calendar year 2024, it now expects to exceed this substantially.

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