DBS Bank India, one of the two foreign banks with a local subsidiary in India, has reported a remarkable financial performance for the fiscal year ended March 2025. The bank's net profit surged by 81% to Rs 684.00 crore, up from Rs 377.00 crore in the previous year, showcasing robust growth and operational efficiency.

Strong Revenue Growth

The bank's impressive profit growth was primarily driven by two key factors:

1. Interest Income: DBS Bank India witnessed a substantial 19% increase in interest income, which rose to Rs 9,295.00 crore.
2. Other Income: The bank's other income, including fees and treasury operations, saw a significant jump of 32%, reaching Rs 2,037.00 crore.

Asset Growth and Loan Book Expansion

DBS Bank India's total assets in India grew by 8% to Rs 1,40,000.00 crore. The bank's loan book also expanded, albeit at a more modest rate of 3%, reaching Rs 55,360.00 crore.

Improved Asset Quality

The bank demonstrated improved asset quality, with gross Non-Performing Assets (NPAs) declining to 2.78% from 3.33% year-on-year. This reduction in NPAs indicates better risk management and loan recovery practices.

Strengthened Capital Position

DBS Bank India's capital adequacy ratio, a key indicator of financial stability, strengthened to 16.81% from 15.75% in the previous year. This improvement suggests enhanced capacity to absorb potential losses and support future growth.

Expanding Presence

DBS Bank India operates close to 500 branches across the country, reflecting its commitment to the Indian market. The bank's presence was further bolstered by its acquisition of Lakshmi Vilas Bank in 2020, which has contributed to its growth strategy in India.

DBS Bank India's strong performance in FY25 demonstrates its resilience and growth potential in the competitive Indian banking sector. The significant increase in profitability, coupled with improved asset quality and a stronger capital position, positions the bank well for continued expansion in the Indian market.

State Bank of India (SBI), India's largest public sector bank, has announced a revision in its Immediate Payment Service (IMPS) charges, effective August 15. The new fee structure will impact online IMPS transfers exceeding Rs 25,000, introducing nominal charges ranging from Rs 2.00 to Rs 10.00, plus applicable GST.

New IMPS Charge Structure

The revised fee structure for online IMPS transfers is as follows:

It's important to note that these charges apply only to online IMPS transfers. Branch-based IMPS transfers will continue to be processed without any additional charges.

Exemptions and Special Considerations

SBI has outlined several exemptions and special considerations in its revised IMPS charge policy:

1. Salary Package Account Holders: These customers will continue to enjoy full waivers for online IMPS transfers.

2. Corporate Customers: The implementation of revised charges for corporate customers has been deferred to September 8, 2025.

3. Exempt Account Types: Current account holders with Gold, Diamond, Platinum, and Rhodium status, as well as government departments, will remain exempt from these new charges.

Impact on Customers

This move by SBI introduces a tiered charging system for online IMPS transfers, which may affect customers who frequently make high-value online transactions. However, the charges remain relatively modest, especially for transfers in the lower ranges.

Customers who prefer to avoid these charges can still utilize branch-based IMPS transfers at no additional cost. Additionally, salary account holders and certain types of current account holders can continue to enjoy free online IMPS transfers.

The introduction of these charges reflects a broader trend in the banking sector towards monetizing instant payment services while still maintaining accessibility for most everyday transactions.

As digital transactions continue to grow in India, customers are advised to review their banking habits and choose the most cost-effective methods for their regular financial activities.