DBS India, converted its existing India franchise to a locally incorporated wholly-owned subsidiary, becoming the second foreign lender to get approval.
DBS Bank India, part of Singapore-based financial services group DBS Group Holdings, received in-principle approval from the Reserve Bank of India (RBI) to convert its India operations into a wholly owned subsidiary.
DBS was the first Singapore bank to set up a representative office in 1994, upgrading to a formal branch in 1995.
With 12 branches in the country and over 1 million customers, DBS is the largest Singaporean bank in India and the fifth-largest foreign bank by assets.
Equal Treatment
After the 2008 global credit crisis, the RBI has been insisting the large foreign banks convert their operations (from the branch mode) into wholly owned subsidiaries.
According to the RBI, local incorporation has several advantages. Foreign lenders who have a subsidiary structure have been promised a «near national treatment.»
Physical Presence
The RBI had also said that after a review of the extent of penetration of foreign investment in Indian banks, these subsidiaries may also be allowed to acquire private banks, subject to the overall foreign investment limit.
Underlining its commitment to India, DBS also inaugurated its new India headquarters spread across 100,000 square feet over five floors at the Express Towers in Nariman Point, Mumbai.
