<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 2, 2010
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Letter to the editor
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Analysing DBS's Indian venture
IT IS disappointing that your elaborate analysis of DBS's venture into the Indian market 'DBS sells Indian JV stake for $117m' (BT, March 31) does not spell out more plainly the bottom line of the foray.
The report informs that DBS sank $79 million in two tranches, presumably around mid-2005, and 'injected another $45 million in early 2009', requiring readers to bring out their calculators to learn that the total investment added up to $124 million ($79 million + $45 million) and is now being sold off with a resultant loss of $7 million within less than five years. Of course, this is more than amply covered in the '2.59 billion rupees (S$80.6 million) after-tax profit for the financial year ended March 31, 2009', also mentioned in the article.
Still, readers must wonder why this simple figure could not find mention along with all those others. As that trite saying goes: 'New brooms sweep clean', and with this exit from Chola, DBS's new CEO seems to have swung into swift action in his declared objective 'to sharpen the bank's focus on businesses where it has clear advantages over its rivals'.
With plenty of rivals in the field, it may be a little more difficult this time around to find another plum pick like POSB.
While the capital injection of $45 million in 2009 was disclosed, we could not be certain that there were no other relevant costs or returns on the investment; therefore, we could not put a firm number on the overall performance of the investment, which was not a 'simple figure' as the letter claims.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Letter to the editor
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Analysing DBS's Indian venture
IT IS disappointing that your elaborate analysis of DBS's venture into the Indian market 'DBS sells Indian JV stake for $117m' (BT, March 31) does not spell out more plainly the bottom line of the foray.
The report informs that DBS sank $79 million in two tranches, presumably around mid-2005, and 'injected another $45 million in early 2009', requiring readers to bring out their calculators to learn that the total investment added up to $124 million ($79 million + $45 million) and is now being sold off with a resultant loss of $7 million within less than five years. Of course, this is more than amply covered in the '2.59 billion rupees (S$80.6 million) after-tax profit for the financial year ended March 31, 2009', also mentioned in the article.
Still, readers must wonder why this simple figure could not find mention along with all those others. As that trite saying goes: 'New brooms sweep clean', and with this exit from Chola, DBS's new CEO seems to have swung into swift action in his declared objective 'to sharpen the bank's focus on businesses where it has clear advantages over its rivals'.
With plenty of rivals in the field, it may be a little more difficult this time around to find another plum pick like POSB.
Narayana Narayana
BT's Editor replies: DBS did not disclose the acquisition cost of its stake in Cholamandalam in its announcement of the sale - that had to be inferred from its past annual reports. While the capital injection of $45 million in 2009 was disclosed, we could not be certain that there were no other relevant costs or returns on the investment; therefore, we could not put a firm number on the overall performance of the investment, which was not a 'simple figure' as the letter claims.
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