DBS Bank India acquired 9.9% of NBFC Svakarma Finance for an undisclosed amount
The local unit of Singaporean lender DBS Bank announced on Monday that it had acquired a 9.9% stake in non-bank micro-focused finance company Svakarma Finance for an undisclosed amount.
DBS Bank India said the purchase of stake in Svakarma will help provide relevant financial solutions to micro-enterprises through a combination of direct lending and co-lending.
Previously, DBS Bank took over domestic private sector lender Lakhsmi Vilas Bank (LVB) in 2020 at the request of the Reserve Bank to strengthen its network. LVB was struggling with a high number of non-performing assets (NPA) and was unable to bolster its capital reserves as several attempts failed.
The LVB takeover 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 part of the small group of global lenders, which have signed on to operate as a wholly owned subsidiary, as desired by local authorities.
A statement from DBS Bank India said its strategy foresees significant growth of SMEs and consumer businesses.
“DBS will continue to identify opportunities to support micro business lending profitably through its own expanded franchise as well as through partners,” he added.
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