DBS turns Indian franchise into wholly-owned unit

It plans to build 75-90 branches in India.

DBS received approval from the Reserve Bank of India (RBI) to convert its Indian franchise into a wholly-owned unit.

According to an OCBC report, DBS intends to open about 75-90 branches in India in the coming years.

"We expect this move to be long-term positive for the DBS as it strengthens its presence in this market," OCBC said.

Banks from India, like State Bank of India and HDFC Bank, have seen significant jump in market capitalisation in the past few years.

HDFC Bank’s market capitalisation grew by a compound annual growth rate (CAGR) of 27% from 2014 to 2017, whilst its net income grew by a CAGR of 20%.

Currently, DBS’s share has fallen from a recent high of S$22.25 to the current price of S$20.35, due to the current weak sentiment for oil and gas stocks.