DBS Group Chief Executive Piyush Gupta remains optimistic about India’s economy and the bank’s expansion plans in the country. While acknowledging the challenges in China, Gupta expressed confidence in the long-term prospects in India. DBS aims to triple its India business in the next three to five years, reaching revenues of $1.3 billion to $1.5 billion. Additionally, Gupta mentioned Indonesia as a potential market for greater capital allocation. DBS’s wealth management business has experienced recent inflows from Asia, Middle East, and Europe, and Gupta believes net inflows will continue to be strong.
Gupta noted the headwinds in China’s short-term economic outlook, particularly in its debt-ridden property sector. The impact of the real estate sector overhang is significant and not easy to resolve. However, despite these challenges, DBS plans to expand in China by increasing its stake in Shenzhen Rural Commercial Bank and seeks to eventually hold a majority stake in the bank.
DBS has been operating in India for nearly 30 years and currently has about 530 branches across 19 states. Gupta sees significant growth potential in the country and expects to bring DBS’s India business on par with Taiwan.
In terms of wealth management, Gupta highlighted the strong performance of DBS’s wealth management segment, which has benefited from inflows across Asia, the Middle East, and Europe. He emphasized that the industry can support a high number of participants, as wealth management has been one of the best-performing segments in the financial services sector.
Gupta’s comments come amid recent events in the banking industry, such as UBS Group’s emergency takeover of Credit Suisse. Singapore, where DBS is based, has seen strong inflows from wealthy customers seeking a financial safe haven amidst global uncertainty, including U.S.-China geopolitical tensions.
Singapore banks, including DBS, have experienced boosted earnings due to higher interest rates globally and inflows. DBS has predicted a record year in 2023 following a 48% jump in second-quarter profit.
In conclusion, DBS Group Chief Executive Piyush Gupta remains positive about India’s economy and DBS’s expansion plans in the country. Despite acknowledging the challenges in China, DBS aims to increase its stake in Shenzhen Rural Commercial Bank and expand its presence in the world’s second-largest economy. Gupta also sees growth opportunities in Indonesia. DBS’s wealth management business has experienced recent inflows and is expected to continue seeing strong net inflows. Singapore banks have benefited from higher interest rates and inflows, contributing to DBS’s improved financial performance.
