The bank infused Rs 1,600 crore in its India operations in March and remains committed to the country, stepping up investments in wealth, supply chain financing and client connectivity, she tells ET’s Joel Rebello & Sangita Mehta.
Edited excerpts:
There is no end in sight for this war. What are your best- and worst-case scenarios for the global economy?
The best-case scenario is a swift end to the war in Iran. The worst-case scenario is prolonged uncertainty, with the Strait of Hormuz remaining shut, supply chains disrupted, and prices of everything from chemicals and fuel to jet fuel and helium staying elevated. Not just elevated, inventories could run down, leaving you short of essential supplies. Right now, we are in a phase of flip-flopping, and this lack of clarity is making markets jittery. While markets want to stay optimistic, even small negative signals can trigger sharp reactions.
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Have you seen any shift of global activity as an outcome of this war? This is a structural trend. It started with Covid, when companies realised they couldn’t rely on a single source of supply and needed to diversify. Covid was the first test, tariffs the second and now the Iran war is the third. The importance of diversifying supply chains, demand markets, payments, currency, capital markets, and even where you manage and book wealth, has grown. People want to eliminate single points of vulnerability or failure, even at the cost of higher supply chain or operating costs. Another key trend is the urgency around the shift to renewables. Earlier, sustainable aviation fuel was too expensive, but with jet fuel prices having tripled, it now appears more viable.
World trade has become weaker. How do you see this international trade scenario emerging in this scenario?
Countries and companies that once relied heavily on the US have diversified. Intra-regional trade has picked up across Asia — between India and Taiwan, the West Asia and GCC, within Asean, and across North and South Asia. Companies are also pivoting quickly. Another structural trend is the AI boom, which has created shortages in areas like memory chips and hardware, driving a resurgence in hardware valuations. Companies in supply chains linked to players like Nvidia are seeing strong growth. This is positive for India, which stands to benefit from the hardware push as it aims to become a manufacturing hub. With Tata’s first fab expected by January 2027, the broader ecosystem is likely to follow.
But the refrain here is that India missed the AI bus…
India can still leapfrog by building the latest generation fabs. But it must invest in talent, people and education. Indians are hardworking, smart and nimble, and I’m positive India can make the switch. Long-term structural opportunities are there for the taking.
How will DBS take these opportunities?
We continue to invest in people, technology, and deeper client relationships. We aim to bring more Asian and multinational companies into India, leveraging the country’s growing connectivity and manufacturing pivot to build supply chain pipelines and attract capital and production. We also see strong potential in wealth creation for Indians. Wealth management, though currently a small part of the business, can scale significantly.
Any plan to expand branch network or infuse new capital in India?
We infused Rs 1,600 crore in March this year. If it makes sense, we will expand branches, with a clear focus on wealth — we are already adding eight wealth centres in India. It’s not just about physical branches or capital, but also investing in talent and workforce. I remain optimistic about India’s long-term structural growth.
The RBI’s move on FCNR(B) and ECB offers an opportunity to mobilise funds. Do you have internal targets?
We last tapped FCNR(B) in 2013, so this presents a fresh opportunity to build the NRI pipeline. We are working on pricing and flows, and I remain optimistic; it is helping support rupee stability.
What more can the government do to attract foreign capital?
We’ve seen success with ‘India Day’ and roadshows in markets like Taiwan, the UK, and the US. I think the government’s economic development board can work with banks like us to promote India. We can go and find people who are genuinely interested, but don’t know where to start. We have brought in Korean, Japanese and Mandarin speakers because there is some familiarity, especially on language which is a starting point.
On the policy level, are there gaps the government can address quickly?
People invest in countries where they have long-term confidence and that comes from predictability, transparency and stability which is there in this country. It’s got a strong, hardworking workforce that has ambition, vision, ability and agility. PM Modi’s your biggest advocate, but there needs to be more communicators at different levels and maybe different industry levels.
It’s been six years since DBS acquired Lakshmi Vilas Bank. Have you fully realised the benefits?
There was a lot of work that was being done in the last five years. It has been challenging. The team’s done a good job to integrate. We see a pickup in retail business, gold loans and CASAs (current and savings accounts). But we are just starting the journey.
Many foreign companies like Hyundai and LG have listed in India. What about DBS?
There is no such plan right now — it is too early to have that conversation.
Where does India rank in DBS revenue?
It ranks around four or five, depending on the currency, with the rupee having lost some value. Taiwan is larger on the top line. But India has been one of our best growth stories over the last three years, driven by the strength of the economy and a growing middle class. We see this as short-term consolidation but a long-term growth story, and we remain committed — if anything, this is an opportunity for us to grow again. Taiwan is growing fast because of the AI semiconductor construct, while India’s growth is more spread out and long term, given its younger demographics, rising middle class, and new verticals being built.
Where do you see the smart money chasing five years from now? Gold or dollar?
My crystal ball is very murky, but smart money stays nimble and diversified. It doesn’t fall in love with one thing. Gold was supposed to be a hedge against the dollar. But in India, gold has become a hedge against the rupee. But to answer your question. The US is now two-thirds of the world global market. So, you cannot not have US dollars. But gold is supposed to be that anti US dollar bet. You need both because there will be days when the dollar goes up and maybe gold goes down. You can have your cake and eat it.
What keeps you awake at night?
Cyber. AI is now agentic and recursive, which makes it very powerful. Cybersecurity and data security have to be front and centre of everything we do. It has to be a long-term investment —what we call cyber hygiene and layering. You cannot be over-reliant on any one counterparty, especially in times of conflict. So, you must layer defences, continuously test systems, find vulnerabilities, and ensure you are the first to patch.