DBS Bank India's net profit up 164% in 2011-12

MUMBAI: DBS Bank's India operations net profit for the year ended March 2012 grew by 164% to Rs335.5 crore as against Rs 127.2 crore last year, on improved margins and asset growth. India operations contribute about 8 to 10% to the global profits of the bank. The net interest margin of the bank improved to 3.24% from 2.86% last year.

“We registered encouraging growth with a disciplined execution of our strategy and prudent risk management. Our performance was broad-based with growth across all business lines," said Sanjiv Bhasin, GM & CEO, DBS Bank India.

Their balance sheet for FY 2011-12 grew by 71% to Rs36,386 crore as gainst Rs26,680 crore last year. The bank's deposit base grew by 75% to Rs12,922 crore at the end of March 2012. With this growth DBS becomes the fourth largest foreign bank in terms of assets displacing Deutsche Bank after it saw a contraction in its loan growth in 2011-12.

DB's advances were down to Rs 28,626 crore from Rs 28,680 crore a year ago. Deposits were up 15% to Rs 14,646 crore. The bank closed last financial year with a balance sheet size of Rs 28,680 crore.

During the year, DBS injected Rs508 crore into DBS Bank India as additional capital. The bank's capital adequacy stood at 14.38% compared to 14.98% last year. The cost to income ratio dipped to 38.76% at the end of March 2012 as against 47.72% last year.