Latest News | DBS Bank India Acquires 9.9% in NBFC Svakarma Finance

Mumbai, Jun 20 (PTI) Singaporean lender DBS Bank's local unit on Monday 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.

Also Read | Poco X4 GT Confirmed To Be Powered by MediaTek Dimensity 8100 SoC.

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.

Also Read | US Agrees to Help Pakistan With IMF Talks on Bailout Package: Report.

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.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)