Singaporean lender DBS Bank’s local unit said it has acquired a 9.9 per cent stake in the micro businesses-focused non-bank finance company Svakarma Finance for an undisclosed sum. DBS Bank India said the stake buy in Svakarma will help in delivering relevant financial solutions to the micro-enterprises through a combination of direct lending and co-lending.
Earlier, DBS Bank had taken over domestic private sector lender Lakhsmi Vilas Bank(LVB) in 2020 at the request of the Reserve Bank to add heft to its network. LVB was grappling with a high quantum of non-performing assets (NPAs) and was unable to bolster its capital buffers as multiple attempts fell through.
Taking over LVB helped DBS Bank India add over 550 branches and 900 automated teller machines (ATMs) to its relatively small presence in the country. DBS continues to be among the small set of global lenders, who have signed up to operate as a wholly-owned subsidiary as desired by the local authorities.
A DBS Bank India statement said its strategy envisages significant growth in SME and consumer businesses.
“DBS will continue to identify opportunities to support lending to micro-enterprises in a cost-efficient manner through its own expanded franchise as well as through partners,” it added.
