DBS's plan to buy Alliance Bank stake is said to have stalled

DBS's plan to buy Alliance Bank stake is said to have stalled

DBS Bank, India's largest foreign bank by number of branches, has seen its plan to acquire a stake in Alliance Bank stall, according to recent reports. The acquisition, which was part of DBS's strategy to expand its presence in the Indian market, has faced unexpected hurdles. While the specific reasons for the delay are not publicly disclosed, industry insiders suggest that regulatory approvals and potential restructuring issues at Alliance Bank may be contributing factors.

DBS Bank reported a significant 81% growth in net profit for the year ended March 2025, with interest income and fee income both contributing to the robust financial performance. The bank's net profit increased to Rs 684 crore from Rs 377 crore a year ago, driven by a 19% increase in interest income and a 32% surge in other income [1].


Despite the acquisition setback, DBS continues to demonstrate strong financial health. The bank's total assets in India increased by 8% to Rs 1.40 lakh crore, with a stable asset quality, as indicated by a gross NPA of 2.78% of total loans [1]. DBS's capital adequacy ratio also improved, reaching 16.81% in March 2025 from 15.75% a year ago [1].

The acquisition of Alliance Bank would have been a strategic move for DBS, given the latter's extensive network of branches across India. However, the delay in this acquisition may necessitate DBS to reassess its expansion plans or explore alternative opportunities to strengthen its market position.

References:
[1] https://economictimes.indiatimes.com/markets/stocks/earnings/dbs-india-fy25-profit-up-81-at-rs-684-crore/articleshow/123587372.cms