DBS Bank India Ltd. has acquired a 9.9% stake in Svakarma Finance.
Svakarma Finance is a non-deposit-taking, non-Banking Finance company.
DBS Bank aims to deliver financial solutions to micro-enterprises through direct lending and co-lending.
DBS Bank said, “Our strategy for its expanded franchise across over 300 locations and over 500 branches envisages significant growth in SME and consumer businesses.”
The Bank added, “We will continue to identify opportunities to support lending to micro-enterprises cost-efficiently through our expanded franchise and our partners.”
Svakarma Finance is currently functional in Gujarat, Maharashtra, and Tamil Nadu. It is looking to expand its network across the country.
DBS Bank is a leading financial services body with 18 markets in Asia. It has been named ‘World’s Best Bank’ by Euromoney, ‘Global Banks of the Year’ by The Banker, and ‘Best Bank in the World’ by Global Finance.
DBS Bank is the forerunner of adapting to digital technology to shape the future of banking. It has been awarded as the ‘Safest Bank in Asia’ by Global Finance for 13 consecutive years from 2009-2021. It was also ranked No.1 on the Forbes list of the World’s Best Banks in India for two consecutive years.
Earlier, DBS Bank had taken over domestic private sector lender Lakshmi Vilas Bank (LVB) in 2020. LVB had a massive quantity of non-performing assets.
After the DBS Bank took over LVB, it added over 550 branches and 990 ATMs in the country. DBS continues to be among the small set of global lenders, who have signed up to operate as a subsidiary as desired by the local authorities.
Hence, this acquisition of a 9.9% stake in Svakarma Finance by DBS Bank is projected as a fruitful coalition in the future.