DBS CEO Piyush Gupta is unsackable

[LITTLEREDDOT]

DBS CEO Piyush Gupta sees 2% rise in pay to $12.1m for 2019; down from 15.5% hike in 2018​

DBS CEO Piyush Gupta saw a pay rise by about $230,000 or 2 per cent to $12.13 million in 2019. PHOTO: BUSINESS TIMES

MAR 9, 2020

SINGAPORE (THE BUSINESS TIMES) - DBS Group Holdings chief executive Piyush Gupta saw his pay rise by about $230,000 or 2 per cent to $12.13 million in 2019 in his 10th year heading Singapore's largest bank, its latest annual report out on Monday (March 9) showed.
This is down from the 15.5 per cent pay rise to $11.9 million that he received in 2018, his best compensation year.
DBS on Monday separately said that Mr Gupta has made a personal donation of $500,000 to the Community Chest. This was "in support of communities in Singapore especially during these challenging times", said a spokesman.
The remuneration for 2019 comprised a cash bonus of $4.59 million, and shares worth $6.27 million, and come on top of a basic salary of $1.2 million.
The share plan amounting to $6.27 million excludes the estimated value of retention shares worth roughly another $1.25 million, which serve as a retention tool and are to compensate staff for the time value of deferral. This comes as at DBS, ordinary dividends on unvested shares do not accrue to employees, its annual report showed.
In November last year, the DBS board granted a one-time special recognition award of 80,000 shares, which are subject to DBS's usual four-year vesting period. This was to recognise Mr Gupta's "outstanding contributions" over 10 years of his leadership, DBS said. Over one decade, DBS's total income has more than doubled, net profit has tripled, and market capitalisation has nearly doubled. These 80,000 shares exclude a further number of retention shares amounting to 16,000.
In the annual report, Mr Gupta said it is likely that the new digital banking entrants in Singapore "will be free from the burden of legacy, and have access to large resources".

"They will quite possibly be able to disrupt the market in interesting ways, and are not to be underestimated. However, I do not believe that it will be easy for new entrants to be successful in the short or medium term," he said.
"With the Singapore banking market already well served by more than 200 players, the additional competition from five new digital banks is likely to be manageable."
Besides having no contest for "really no obvious" underserved segments in Singapore, the new digital players will have to meet sizeable capital requirements once they reach a certain minimum size, he said.
Meanwhile, banking incumbents have invested in their digital strengths.
"The onus for regulatory compliance will create challenges. On the back of the Uber and WeWork IPOs (initial public offerings), it is unlikely that investors will have appetite for continued unlimited cash burn without a line of sight to (operating profit) and returns," added Mr Gupta.

"While competitors are likely to drive price competition, it is a healthy sign that the regulators are unwilling to support predatory pricing. In industries like e-commerce and ride hailing, deep discounting with a 'winner take all' mentality has led to industry instability. Such instability in financial services may be unwise."
With additional information from The Straits Times

 

[LITTLEREDDOT]

Parliament: Ministers challenge PSP NCMP Leong Mun Wai over comments on DBS CEO​

Minister for Communications and Information S. Iswaran sparred with PSP NCMP Leong Mun Wai over his remarks in Parliament concerning DBS Bank. PHOTOS: GOV.SG

Rei Kurohi
Tech Correspondent

SEP 4, 2020

SINGAPORE - Minister for Communications and Information S. Iswaran and Transport Minister Ong Ye Kung sparred with Non-Constituency MP Leong Mun Wai in Parliament on Friday (Sept 4) over remarks in his maiden speech.
The Progress Singapore Party (PSP) NCMP had on Tuesday said he was "deeply disappointed" that DBS Bank did not have a home-grown chief executive. The bank's current CEO, Mr Piyush Gupta, was born in India and became a Singapore citizen in 2009.
Joining the debate on the President's Address on Friday, Mr Iswaran said he was troubled by Mr Leong's comment.
"By all means, let us passionately argue the case to do more for Singaporeans," he said in his speech. "But, as parliamentarians, let us also be careful about what our words convey; in this case, the message we send to those who - to paraphrase Mr S. Rajaratnam - have chosen out of conviction to become citizens of Singapore."

Iswaran: What message is being sent?​

Mr Iswaran made the point in his speech that building trust with Singapore's international partners is the duty not only of the Government and public service, but also of Parliament.
"What we say, but also what we actively advocate in this House, and ultimately what we do, are all keenly watched," he said.
"We have painstakingly built an open and inclusive economy - that is able to create opportunities for Singaporeans by welcoming competitive enterprises and talent. It is a precious asset that we must not squander."

Mr Leong replied by saying his party is committed to an open and inclusive society and economy, but differs with the Government on issues relating to foreign workers and jobs.
He said his party would like to see "a cap on the foreigners, at least for the immediate future, and to ensure there is skills transfer".
Speaker Tan Chuan-Jin then cut him off and asked if he was seeking a clarification or making a new speech.

Mr Leong said: "I want to ask the minister whether the debate that we are conducting over the last few days, when we're questioning certain issues, rebalancing certain issues that we are looking for, is against the spirit that he's trying to explain to us just now."
SPH Brightcove Video

Mr Iswaran said the process of reviewing and evolving Singapore's manpower policy is an "ongoing venture".
"It is an evolutionary effort because it has to respond to the economic environment, the population's needs and concerns, and we have to then adapt and move along."
The issue is not with the process, Mr Iswaran said, but the message Mr Leong's speech sends.
"The issue is when we lament that a Singaporean occupying a certain position is somehow not home-grown, then I think we really have to ask ourselves the question: As parliamentarians, as elected representatives, what is the message we're sending to our citizens?"

Mr Iswaran also asked what message Mr Leong was sending to those who have chosen to become Singaporeans, their spouses and their children.
"The question I would put to Mr Leong is, after this debate and all the information that's been shared, does he still lament that DBS does not have a home-grown CEO?
"And does he acknowledge that... much has been done in the organisation and there are in fact a large number of Singaporeans at the senior levels?"
Mr Leong replied that he would "still hold on to (his) disappointment".
"Why didn't the Government in the process put in certain safeguards or certain other rules to ensure that we have skills transfer and... ensure that Singaporeans will be groomed to take over the job?" the NCMP asked.
He added: "I don't think it will be taken very negatively by the international community. Singapore is open enough. Foreigners know that we are very, very open.
"In fact, if we fail to do certain things to safeguard the interests of Singaporeans, I'm afraid we may be laughed at."

Ong Ye Kung: Don't limit Singapore to being big fish in a pond​

Mr Ong then rose to respond to Mr Leong, reiterating a number of points from his own speech on Tuesday.
He noted that he had traced Singapore's journey of building up its finance sector over the last 50 years, starting with bringing in foreign expertise and growing local talent to today's situation where "many of our own rose up to take senior positions".
Mr Ong said this approach is the best way to serve Singaporeans, and cautioned against limiting Singapore to being a "big fish in a pond".
"Open up to the lagoon, open up to the sea, have a much more exciting, diverse ecosystem, but invest in our own people, hold our own. That is what we have been doing for decades.
"(We) never reached a stage where we say the only way to achieve this is to set a quota, set a rule: it must be a Singaporean CEO, born here, before we declare success. I think that would be a wrong approach."
Mr Iswaran reiterated that Parliament must be a voice of reason.
"Don't take that lightly because what we say cannot be unsaid. It is there for the record, for the future, and everyone - Singaporeans, new citizens or Singapore-born, others who are here - will all be looking at this.
"And I think we in this House as elected representatives must hold ourselves up to a higher standard. If we don't, then I think we fail our duties as Members of Parliament and I think we ultimately do a disservice to Singaporeans."

 

[LITTLEREDDOT]

Ministers take NCMP Leong Mun Wai to task over remarks about DBS chief​

Minister for Communications and Information S. Iswaran sparred with PSP NCMP Leong Mun Wai over his remarks in Parliament concerning DBS Bank. PHOTOS: GOV.SG

Rei Kurohi
Tech Correspondent

SEP 5, 2020

Minister for Communications and Information S. Iswaran and Transport Minister Ong Ye Kung sparred with Non-Constituency MP Leong Mun Wai yesterday over remarks in his maiden speech.
The Progress Singapore Party NCMP had on Tuesday said he was "deeply disappointed" that DBS Bank did not have a home-grown chief executive. The bank's current CEO, Mr Piyush Gupta, was born in India and became a Singapore citizen in 2009.
Joining the debate on the President's Address yesterday, Mr Iswaran told the House he was troubled by Mr Leong's comment.
"By all means, let us passionately argue the case to do more for Singaporeans," he said in his speech. "But, as parliamentarians, let us also be careful about what our words convey; in this case, the message we send to those who - to paraphrase Mr S. Rajaratnam - have chosen out of conviction to become citizens of Singapore."

ISWARAN: WHAT MESSAGE IS BEING SENT?​

Mr Iswaran made the point that building trust with Singapore's international partners is the duty of not only the Government and public service, but also of Parliament. "What we say, but also what we actively advocate in this House, and ultimately what we do, are all keenly watched," he said.
"We have painstakingly built an open and inclusive economy that is able to create opportunities for Singaporeans by welcoming competitive enterprises and talent. It is a precious asset that we must not squander."
Mr Leong replied by saying his party is committed to an open and inclusive society and economy, but differs with the Government on issues relating to foreign workers and jobs. He said his party would like to see "a cap on the foreigners, at least for the immediate future, and to ensure there is skills transfer".

Speaker Tan Chuan-Jin then cut Mr Leong off and asked if he was seeking a clarification or making a new speech.

Mr Leong said: "I want to ask the minister whether the debate that we are conducting over the last few days, when we are questioning certain issues, rebalancing certain issues that we are looking for, is against the spirit that he is trying to explain to us just now."
Replying, Mr Iswaran said the process of reviewing and evolving Singapore's manpower policy is an "ongoing venture". "It is an evolutionary effort because it has to respond to the economic environment, the population's needs and concerns, and we have to then adapt and move along."

The issue is not with the process, Mr Iswaran said, but the message Mr Leong's speech sends.
"The issue is when we lament that a Singaporean occupying a certain position is somehow not homegrown, then I think we really have to ask ourselves the question: As parliamentarians, as elected representatives, what is the message we are sending to our citizens?"

The minister also asked what message Mr Leong was sending to those who have chosen to become Singaporeans, their spouses and their children.
"The question I would put to Mr Leong is, after this debate and all the information that has been shared, does he still lament that DBS does not have a home-grown CEO?
"And does he acknowledge that... much has been done in the organisation and there is in fact a large number of Singaporeans at the senior levels?"
Mr Leong replied that he would "still hold on to (his) disappointment".
"Why didn't the Government in the process put in certain safeguards or certain other rules to ensure that we have skills transfer and... ensure that Singaporeans will be groomed to take over the job?"
He added: "I don't think it will be taken very negatively by the international community. Singapore is open enough.
"Foreigners know that we are very, very open. In fact, if we fail to do certain things to safeguard the interests of Singaporeans, I am afraid we may be laughed at."

ONG YE KUNG: DON'T LIMIT SINGAPORE TO BEING BIG FISH IN A POND​

Mr Ong then rose to respond to Mr Leong, reiterating several points from his own speech on Tuesday.
He noted that he had traced Singapore's journey of building up its finance sector over the last 50 years, starting with bringing in foreign expertise and growing local talent to today's situation where "many of our own rose up to take senior positions".
Mr Ong said this approach is the best way to serve Singaporeans, and cautioned against limiting Singapore to being a "big fish in a pond".

"Open up to the lagoon, open up to the sea, have a much more exciting, diverse ecosystem, but invest in our own people, hold our own. That is what we have been doing for decades.
"(We) never reached a stage where we say the only way to achieve this is to set a quota, set a rule: it must be a Singaporean CEO, born here, before we declare success. I think that would be a wrong approach."
Mr Iswaran reiterated that Parliament has to be a voice of reason.
"Don't take that lightly because what we say cannot be unsaid. It is there for the record, for the future, and everyone - Singaporeans, new citizens or Singapore-born, others who are here - will all be looking at this.
"And I think we in this House as elected representatives must hold ourselves up to a higher standard. If we don't, then I think we fail our duties as Members of Parliament, and I think we ultimately do a disservice to Singaporeans."

 

[syed putra]

Gupta has all the PAp top brass account details. He can sack The PAP. Or dictate pap policies.

 

[LITTLEREDDOT]

FinCEN leaks: DBS, CIMB and Deutsche among banks in S'pore that handled about $6 billion in suspicious transactions​

Singapore received about US$3 billion and sent US$1.5 billion in 1,781 suspicious transactions, within 20 years. PHOTO: ST FILE

Aw Cheng Wei
China Correspondent

SEP 21, 2020

SINGAPORE - A number of banks in Singapore handled about US$4.5 billion (S$6.13 billion) in suspicious transactions between 2000 and 2017, with DBS Bank, CIMB Bank and Deutsche Bank among those that processed the largest sums of such funds here.
This is according to the findings of the International Consortium of Investigative Journalists (ICIJ) on leaked files, comprising so-called suspicious activity reports, from the Financial Crimes Enforcement Network (FinCEN) in the United States.
The consortium noted that, within almost 20 years, Singapore received about US$3 billion and sent US$1.5 billion in 1,781 suspicious transactions.
The Monetary Authority of Singapore (MAS) told The Straits Times on Monday that it is aware that Singapore banks were mentioned in media reports on suspicious transaction reports filed with FinCEN.
Although such suspicious transaction reports do not imply that the transactions are illicit, the authority takes such reports very seriously, said a spokesman, adding that Singapore's regulatory framework to combat money laundering meets international standards set by the Financial Action Task Force.
"MAS is closely studying the information in these media reports, and will take appropriate action based on the outcome of our review," she added.
In all, the ICIJ reported on Sunday (Sept 20) that the files contained information about more than US$2 trillion worth of transactions between 1999 and 2017, which were flagged by internal compliance departments of financial institutions as suspicious.

Experts told The Straits Times that filing suspicious activity reports do not translate to wrongdoing. Furthermore, banks and financial institutions are obliged to flag unusual transactions so that regulators can follow up on them, they added.
For example, an account which typically sees small transactions getting an unusually large deposit of money might pop up on banks' radars, the noted.
Alternatively, if bank customer who has $1 million in his account decides to transfer all his money to another bank - such a transaction might also show up as "suspicious".

Associate Professor Lawrence Loh at National University of Singapore Business School said: "The revelation so far has been more focused on the movements rather than the applications of the funds.
"In fact, there may be a wide spectrum of possibilities for the applications, including those relating to corruption or even as drastic as criminal support," he added.
In Singapore, the Commercial Affairs Department (CAD) publishes the number of suspicious transaction reports it received in its annual report. The CAD is the police unit that deals with white-collar crime.

The CAD's Suspicious Transaction Reporting Office received 32,660 reports in 2018, down 8 per cent from 35,471 reports in 2017, according to CAD's 2018 annual report.
CAD noted that banks filed the most number of suspicious transaction reports - 16,314 - in 2018, followed by the 6,510 reports filed by casinos and 4,823 reports filed by moneychangers and remittance agents.
The consortium on Sunday released a list of banks in Singapore involved in the allegedly illicit transfers, based on more than 2,100 reports amounting to some $35 billion, that were filed by about 90 financial institutions. A report may contain multiple transactions.
The list "displays cases where sufficient details about both the originator and beneficiary banks were available, and is designed to illustrate how potentially dirty money flows from country to country around the world, via US-based banks", said the ICIJ.
The consortium reported that five global banks appeared most often in the leaked documents - HSBC Bank, JPMorgan, Deutsche Bank, Standard Chartered and Bank of New York Mellon.
In Singapore, DBS Bank was listed as having sent US$596.8 million and received US$228.3 million in 461 suspicious transactions between 2000 and 2017.
CIMB Bank was noted to have sent US$250.4 million and received US$34.3 million in 294 suspicious transactions, while Deutsche Bank sent US$224.3 million and received US$62 million in 19 suspicious transactions within the same period.

A DBS spokesman told ST that the bank has "zero tolerance for bad actors abusing the financial system" and is firm on collaborating with the authorities in the seizure of funds and disruption of criminal networks.
"Outside of sanctions on names or specific account freezes, it is generally very difficult to delay or intercept money in transit given the impact on legitimate business, so the normal process - which happens behind the scenes - involves subsequent investigations to establish suspicion, based on which the necessary action is taken," he added.
CIMB Singapore "operates in compliance with the anti-money laundering laws, regulations and guidelines issued by the Monetary Authority of Singapore", a bank spokesman said in response to queries. He added that the bank is investigating the matter.
Deutsche Bank noted that it has invested billions of dollars to more support the authorities in this effort. "Naturally, this leads to increased detection levels," it said in a statement.
The German bank has "devoted significant resources to strengthening our controls and we are very focused on meeting our responsibilities and obligations", it added.

 

[LITTLEREDDOT]

Singapore oil trader Hontop's debts with DBS and SocGen close to being settled, say sources​

SEP 25, 2020

SINGAPORE (BLOOMBERG) - China Wanda Group, the parent company of Singapore-based Hontop Energy, is close to settling the troubled oil trader's disputes with two of its major lenders, according to people familiar with the negotiations.
Shandong-based conglomerate China Wanda is in advanced talks with DBS Bank and Societe Generale, and has agreed to pay the outstanding debts on behalf of Hontop Energy (Singapore) via its other subsidiaries, said the people, who asked not to be identified as the talks are private.
Banks have been struggling to collect debts from failed commodities traders after oil's collapse exposed financial shortfalls and sparked accusations of fraud and dishonest dealings.
If successful, the Hontop deal could mark the first significant settlement amid a wave of disputes this year between trading houses and their lenders.
Hontop, which went into receivership in February, was placed under judicial management earlier this month by a Singapore court. Its outstanding debts totaled US$469 million (S$644.2 million) to seven lenders as of February, of which US$33.2 million was to DBS and US$63.3 million to SocGen, a general manager at Hontop said in an affidavit.
SocGen said by email on Thursday (Sept 24) that it's "not in a position to comment", while DBS declined to comment. Emailed inquiries to Wanda Group and Hontop's judicial manager, RSM Corporate Advisory, went unanswered.
The Singaporean units of lenders CIMB Bank and Natixis have also accused Hontop of fabricating documents and suspicious transactions. The allegations span four separate oil deals involving the three same companies: Hontop, Sugih Energy International, and oil major BP.

Hontop, which bought crude oil on behalf of an affiliated Chinese private refiner, Shandong Tianhong Chemical, said in March that its financial difficulties were caused by a collapse in demand because of the coronavirus.
That was before the virus spread globally, sparking oil's crash that saw prices in April momentarily plunge into negative territory.

The turmoil exposed the risks of financing the opaque business of moving raw materials around the world, and rocked the close-knit oil trading community in Singapore, one of the world's most important commodity hubs.
The turbulence has pushed banks to rethink commodity financing. SocGen decided to close its trade commodity finance unit in Singapore after the collapse of Hin Leong Trading, which owed more than US$3 billion to over 20 Singapore and international banks. ABN Amro Bank announced it would quit commodity trade finance, while BNP Paribas is shutting its Swiss commodity trade finance business.

 

[LITTLEREDDOT]

Former DBS wealth planning manager jailed 12 weeks for selling personal information of customers​

Terry Tang Jia Lin made about $900 from the sale. ST PHOTO: LIM YAOHUI

Jean Iau

SEP 29, 2020

SINGAPORE - A former DBS Bank wealth planning manager was jailed for 12 weeks on Tuesday (Sept 29) for accessing the personal information of 37 customers and selling the information to a data broker for profit.
The man, Terry Tang Jia Lin, 29, made about $900 from the sale to a co-accused person, Goh Kok Liang, between April to July last year.
Goh, also 29, then sold the personal details of the customers to buyers which included unlicensed moneylenders.
Tang faced one charge under the Computer Misuse Act, with another similar charge taken into consideration for his sentencing.
According to court documents, the pair met through a mutual friend in 2016.
In April 2019, they met in a nightclub at Orchard Hotel and Goh asked Tang if he was able to help him screen the personal information of various individuals.
Tang said that if Goh provided him with identifying details of an individual such as their NRIC number, mobile phone number, e-mail address or bank account number, he could provide Goh with the individual's address, family member's details, employment details and account balance.

As part of his job then, Tang was allowed access to DBS customers' personal information in the bank's secure computer system. However, he was authorised to use the system only to evaluate his customers' risk level in order to recommend financial products to them.
Goh offered Tang $100 for every four screening requests that he performed.
The court heard that Tang neither verified nor looked into the nature of Goh's business. He also did not find out what Goh intended to do with the personal information.

Despite knowing that he was not authorised to access the computer system for this purpose, Tang then logged in to DBS' secure computer system and keyed in the identifying details, generating the individual's personal information.
He then supplied Goh with the personal information over WhatsApp under the name "Ted Fat" before being arrested on Aug 5.

Court documents did not reveal how Goh was dealt with.
Deputy Public Prosecutor Andre Chong argued for Tang to be sentenced to 15 weeks' imprisonment, noting that he "exploited his position and breached the trust reposed in him by virtue of his capacity as an officer of the bank".
Although defence counsel Kalidass Murugaiyan urged the court to consider a community-based sentencing for Tang, Deputy Presiding Judge Jennifer Marie said that this was "not appropriate".
She called Tang's acts a "breach of trust", adding that his use of a moniker showed premeditation to commit the crimes.

In sentencing, she said: "(Tang is) not someone to have been so naive to have been misled or misguided."
Responding to queries from The Straits Times, a spokesman from DBS said: "We take a zero-tolerance approach towards any breach of our code of conduct, and our employees are expected to conduct business in an honest and ethical manner."

 

[LITTLEREDDOT]

Analysts react to proposed DBS takeover of ailing India bank​

Under a draft scheme by the RBI, LVB may be folded into the Indian business of South-east Asia's biggest bank. PHOTO: REUTERS

NOV 18, 2020

SINGAPORE (THE BUSINESS TIMES) - The proposed amalgamation of ailing Lakshmi Vilas Bank (LVB) into DBS's wholly-owned India unit may weigh on the Singapore lender's profitability in the near to medium term.
It also raises a few questions about DBS's dividend trajectory, considering the impending pandemic-related credit risk migration, said Jefferies Equity Research in a note on Wednesday morning (Nov 18).
Jefferies analyst Krishna Guha thus downgraded DBS to "hold" from "buy", and lowered the estimates for its dividends per share by about 10 per cent.
He cut the target price on the stock to S$22, from S$26 previously. As at 11.24am on Wednesday, DBS shares were trading at S$24.72, up S$0.07 or 0.3 per cent.
Under a draft scheme by the Reserve Bank of India (RBI), LVB may be folded into the Indian business of South-east Asia's biggest bank, DBS said in a filing on Tuesday night.
To support the amalgamation, DBS will inject 25 billion rupees (S$463 million) of fresh capital into DBS Bank India Ltd (DBIL), if the scheme is approved. This will be fully funded from DBS's existing resources.
The original share capital of LVB will be written off, and its existing shareholders will not get any stake in the new entity. No haircuts will be applied to depositors or bondholders.

LVB has been put under a one-month moratorium from Nov 17 to Dec 16. RBI said in a statement that the Indian bank's financial position "has undergone a steady decline" as it incurred continuous losses over the last three years and eroded its net worth.
JPMorgan's research team, which has an "overweight" rating and S$24.50 target on DBS, wrote in a note on Wednesday that the proposed deal will likely be positive for the Singapore-listed group.
"Effectively, DBS is buying the (LVB) business at about 10 per cent of current deposits. The Common Equity Tier 1 (CET1) impact for DBS will be around 10 basis points," said JPMorgan analysts Harsh Wardhan Modi and Saurabh Kumar.

Moreover, as soon as a credible controlling shareholder comes in, the LVB franchise will likely start regaining deposit market share. JPMorgan also expects DBS to use digital capabilities to enhance its physical footprint in India. Hence, the proposed deal could lead to a 30-40 per cent increase in Indian assets of DBS, according to JPMorgan.
Jefferies noted that although the estimated impact on DBS's CET1 capital will be negligible initially, an assessment of the book, risk management practices and subsequent growth may call for continued capital infusion, given LVB's high non-performing assets (NPA) and negative equity.
If successful, the deal will strengthen DBS's footprint in southern India, which has longstanding and close business ties with Singapore, Mr Guha said.

In particular, Singapore real estate firms have recently deepened their presence in southern India. DBS also earlier highlighted the need to scale up its branch presence to target small and medium enterprise (SME) lending.
However, scaling up will weigh on DBS's profitability and efficiency, as an increase of one percentage point in group cost-to-income ratio will lower earnings per share by 2.5 per cent, in the near to medium term, Mr Guha said.
According to RBI, LVB has not been able to raise adequate capital to address issues around its negative net worth and continuing losses, and is experiencing continuous withdrawals of deposits as well as low levels of liquidity.
Reuters reported that India's government said it had also temporarily capped withdrawals from LVB. The bank has been looking for a partner since last year amid surging bad loans that come on top of "governance issues", Reuters added.
JPMorgan noted that the upside for DBS will depend on its ability to consolidate the franchise and attract deposits, and to generate consistent returns while maintaining credit risk.
Provisions will also need to be reduced "dramatically" in the near term, which the JPMorgan analysts see as likely because almost the entire amount of non-performing loans (NPLs) will be written off.
"We believe DBS has built underwriting or risk management capabilities in India, and at the group level in the last few years. Those have led to a relatively resilient NPL (non-performing loan) outcome.
"These attributes, combined with digital offerings, should allow the bank to deliver PPoP RoA (pre-provision operating profit, return on assets) at least in line with its historical outcome," they added.
If this thesis plays out, DBS will see value accretion from the proposed transaction, JPMorgan said.
According to Jefferies, the amalgamated entity will have the most bank branches (598) in the country and rank fifth by loans among foreign banks, with CET1 of 9.6 per cent. "We understand DBS may have the flexibility to rationalise branch footprint and avail other concessions," Mr Guha said.
DBS on Tuesday said it will wait for the final decision from RBI and the Indian government on the proposed scheme before announcing further details.
Members, depositors and other creditors of LVB and DBIL have until 5pm this Friday to submit to RBI their suggestions or objections, if any, on the draft scheme.
Jefferies remains constructive on the banking sector. On Wednesday, it upgraded UOB to "buy" from "hold" previously, and raised its target price to S$25, from S$22.

 

[LITTLEREDDOT]

India set to hand troubled Lakshmi Vilas Bank to Singapore's DBS​

The Reserve Bank of India took over LVB due to a “serious deterioration” in its finances. PHOTO: REUTERS

NOV 18, 2020

MUMBAI/SINGAPORE (REUTERS) - Lakshmi Vilas Bank is set to be folded into the Indian unit of Singapore's DBS under a plan proposed by the Reserve Bank of India (RBI), which took over LVB on Tuesday (Nov 17) due to a "serious deterioration" in its finances.
India's government said it had also temporarily capped withdrawals from LVB, which has been scouting for a partner since last year amid mounting bad loan and governance issues.
The RBI's proposed plan would give the Singapore bank's expansion ambitions a fillip as it would vastly increase the footprint of DBS in India, where it only has around 30 branches.
Chennai-headquartered LVB, by contrast, has a vast network of more than 550 branches and 900-plus ATMs across India.
"It's positive for DBS as it will get a ready customer base, branch network with this merger, and this works in their favour as they've been looking to expand in India," Asutosh Mishra, a research analyst at Ashika Stock Broking, said.
Analysts also noted that despite the crippling size of LVB's non-performing assets, a merger would give DBS a valuable client base.
"DBS will gain a ready customer and deposit base worth 210 billion rupees which otherwise would be challenge to build for a foreign bank," said Mona Khetan, an analyst at Dolat Capital.

In a regulatory filing on Tuesday, DBS said it will pump 25 billion rupees (S$463 million) into its India unit, if the RBI's plan is approved. This will be funded from DBS' existing resources, it added.
DBS said it will await final decision on the proposed scheme from RBI and the Government of India, and will announce further details at a later stage.
LVB did not respond to an email seeking comment.
The proposal took many by surprise as LVB had been locked in talks with Clix Capital around a potential deal.
Clix, part of a company owned by Mumbai-based private equity firm AION Capital, a partnership between New York-based Apollo Global Management and a unit of India's ICICI Bank , had submitted a non-binding offer for LVB in June.
However, RBI said on Tuesday that LVB had failed to submit any concrete proposal and it had therefore appointed an administrator and superseded the bank's board

 

[sbfuncle]

While the root cause of the outage remains uncertain, DBS is investigating the system failure with help from IBM, which runs some of the bank’s IT operations under an outsourcing contract.

Fark this statement.
Dbs employ many sinkies jlb old farts that only do the talking and whacking. They spent 90% of their time carrying out useless meetings. There are many old fart sinkies lao chee byes like gansiokbin kind contributing nothing to the organisation but their long service chee bye mouth.
Dbs has no technical specialty personnel's.
It outsource to IBM, which again hire many jlbs that only do the talking and whacking. Same thing they are lacking with knowledge in technical aspects.
The actual personnel's on the ground doing the technical work are outsourced to a ah neh agency which hire mostly nehs.
With this kind of setups , tell me how not to screw up things. LOL

 

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DBS applies to wind up Novena Global Healthcare founded by Loh cousins​

Novena Global Healthcare founders Mr Terence Loh (left) and his cousin Mr Nelson Loh said in October that they have agreed to legally split their business interests. PHOTO: BT FILE

Joyce Lim
Senior Correspondent

NOV 19, 2020

SINGAPORE - DBS Bank has applied to the High Court to wind up Novena Global Healthcare Pte Ltd, which is believed to have owed the bank millions of dollars.
The firm will be put into liquidation if the High Court grants the application next month.
Its parent Novena Global Healthcare Group, incorporated in the Cayman Islands by Singaporean cousins Terence, 42 and Nelson Loh, 40, are being investigated by the police for allegedly using unauthorised signatures of accounting firm Ernst & Young (EY) on its financial statements.
Police declined to comment as investigations are still ongoing.
Novena Global Healthcare Pte Ltd, which was incorporated in 2016, had also breached Accounting and Corporate Regulatory Authority (Acra) regulations by failing to file its annual return.
The return has still not been filed despite warnings and enforcement action by Acra.
An Acra spokesman told The Straits Times on Wednesday that the authority will be taking further enforcement action against Novena Global Healthcare and Novena Life Sciences which was also co-founded by the Loh cousins.

This could lead to the companies and/or their directors prosecuted in court.
Acra also found that six more entities owned by the Loh cousins had not filed annual returns. Enforcement actions against them are ongoing, the spokesman added.
The entities include Aesthetic Medical Partners and Rock Star Advisers.

The cousins made news in August this year for their £280 million (S$492 million) takeover bid for English Premier League club Newcastle United.
This bid was made under the Bellagraph Nova Group (BN Group), which they founded with Chinese entrepreneur Evangeline Shen, 32, in July.

The cousins have since parted ways.
Last month, Mr Terence Loh issued a statement announcing a "separation agreement" entered into between the cousins and former business partners.
Mr Nelson Loh will transfer all the shares he owns in three corporate entities - Cayman Islands-registered Novena Global Healthcare Group and all its subsidiaries, Singapore-registered Dorr Global Healthcare International, and Singapore-registered Rock Star Advisors - to Mr Terence Loh for $1. He will also resign as director of these three entities.
The ST reported previously that Acra searches showed Citibank registered charges on Novena Aptus and Novena Novaptus on Feb 24 this year, a month after the two companies were incorporated by the Loh cousins.
A charge is a form of security interest usually taken by a lender or creditor - "chargee" - to secure repayment of a loan.
Sources with knowledge of the loans said that Citibank lent the Loh cousins several million dollars.
Citibank declined comment.

 

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DBS faces potential culture clash if it scoops up distressed Indian lender​

DBS will inject S$463 million into its India subsidiary for the proposed merger. PHOTO: ST FILE

NOV 19, 2020

MUMBAI/BENGALURU/SINGAPORE (REUTERS) - DBS Group's proposed move to take over troubled Lakshmi Vilas Bank (LVB) will give South-east Asia's largest lender the boost in India it has long desired, but aligning the two banks' business cultures could prove tricky.
LVB, facing mounting bad loans and governance issues and a failure to secure capital, is set to be folded into DBS's Indian subsidiary under a plan proposed by India's central bank, which took control of the 94-year old Chennai-based lender on Tuesday (Nov 17), citing a "serious deterioration" in its finances.
The plan will accelerate DBS's expansion ambitions in India and potentially transform it from a largely digital bank in the country to one with hundreds of branches.
DBS currently has just over 30 branches in India, while LVB has more than 550, and 900-plus ATMs. DBS, which has a market value of about US$47 billion, will inject 25 billion rupees (S$463 million) into its India subsidiary for the proposed merger.
"The branches are the crown jewels and offer a readymade network at a very affordable price," said Mr Willie Tanoto, an analyst at Fitch Ratings in Singapore.
But turning around and integrating LVB, which employs more than 4,000 staff, will pose challenges for DBS, even though the Singapore bank has been in India since 1994 and in 2019 converted its Indian operations from a branch to a wholly-owned subsidiary.
India's banking union has already expressed reservations about the potential DBS deal.

The All India Bank Employees' Association (AIBEA), which represents about half a million bank employees, protested against the proposed amalgamation and has demanded a merger with a public sector lender instead.
"Government must preserve the essence of an Indian bank and give it to a national lender instead of handing it over to a foreign bank," said Mr CH Venkatachalam, AIBEA's general secretary.
LVB did not immediately respond to a Reuters' e-mail seeking comment on the proposed merger, while DBS declined to comment.

In terms of culture, there are differences between the two banks, with DBS staff trained in digital skills and strong underwriting processes at a multinational bank, while LVB has a more traditional client-focused approach.
Their branches also differ in look and feel. LVB's branches have steel benches for waiting customers and numerous notices on walls and windows, contrasting with a more minimalist style often seen in branches at multinational banks.

"Prima facie, there will be challenges in terms of cultural integration as well as process-orientation of people who've not worked in a new-age bank," said Mr Venkat Iyer, partner at recruitment firm Aventus Partners.
Macquarie analyst Suresh Ganapathy said beyond any cultural differences, there are other issues at play.
"DBS employees will have far better capability in terms of digital banking, credit appraisals and underwriting," Mr Ganapathy said.
Some analysts highlighted that DBS has a strong track record in acquisitions, such as its takeover of a failed Taiwanese bank in 2008 and the acquisition of ANZ's wealth management and retail businesses in five Asian markets, completed in 2018.
One fund manager said the deal was a strategic fit but he also pointed to a potential culture clash.
"The key unknown at this stage is execution especially for a turnaround acquisition like this where Lakshmi Vilas Bank, which appears to have been operating under a different risk appetite and intensity of internal controls, will need to be aligned with DBS's prudent and conservative culture," said Mr Xin-Yao Ng, Asian equities investment manager at Aberdeen Standard Investments, which holds DBS shares.

 

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DBS business service fully restored by Tuesday afternoon after outage on Monday morning​

The system was rectified as at 3.30pm on Nov 24, 2020. PHOTO: SCREENGRAB FROM YOUTUBE

Ang Qing

NOV 24, 2020

SINGAPORE - A number of customers of DBS Bank faced difficulties in accessing its business banking portal DBS Ideal for more than a day, with some taking to Facebook to complain about the disruptions.
The problem was confirmed by a DBS spokesman, who said in a statement on Tuesday afternoon (Nov 24): "On Monday, DBS detected that a small number of our corporate customers were facing intermittent delays when accessing Ideal."
The system was rectified as at 3.30pm on Tuesday, with tech teams having been "working around the clock to resolve this", said DBS, which apologised for the inconvenience caused.
Some frustrated customers posted their complaints on the DBS Facebook page from Monday morning. In its reply in the comments section, the bank apologised and stated that it was working on a solution.
Mr Jeremy Pao, who has used DBS Ideal for seven years, said this is the first time that technical issues from the platform have incurred costs for his company - around $50 in late payment fees.
"Yesterday, a lot of our subcontractors were unable to receive their payouts for contracted work due to this issue. We were also unable to remit payment for vehicle instalments and rental," added the 46-year-old transportation business owner.
While Mr Pao could access the service at around 1.30pm on Tuesday, he faced glitches about 10 minutes later.

Mr Charis Fu, who has been using the portal since December 2019, attempted to log in to the system on nine occasions to access bank statements for a client.
"I have been trying to access the system yesterday and today but there appears to be a delay error," the 34-year-old accountant said on early Tuesday afternoon.
A finance manager in a company of around 10 people, who wanted to be known only as Ms Cheong, said that she had tried to access the system hourly since Monday morning while being "chased by overseas vendors".
Some customers suggested that DBS could have notified them via e-mail about the status of the situation or through social media to help manage expectations.
"We need to know an estimated timeline on when things can be resolved so that we can advise our customers and staff... Two days' down time for business banking is too long," said Mr Pao.
DBS said customers who need further assistance can contact the bank on 1800-222-2200, or e-mail [email protected] or their relationship managers.

 

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India approves merger of Lakshmi Vilas Bank with DBS unit​

The merger will give a boost to DBS' expansion ambitions in India. ST PHOTO: ROHINI MOHAN

NOV 25, 2020

MUMBAI (REUTERS) - The Indian government has approved the merger of crisis-hit Lakshmi Vilas Bank (LVB) with the Indian unit of South-east Asia's largest lender DBS.
LVB was placed under a moratorium earlier this month after a serious deterioration in its financial health. The moratorium will be lifted from Nov 27 once the amalgamation comes into effect, after which, all its branches will function as part of DBS.
"Customers, including depositors of the Lakshmi Vilas Bank Ltd will be able to operate their accounts as customers of DBS Bank India Ltd with effect from November 27, 2020," the central bank said in a notification on Wednesday (Nov 25).
LVB has a network of more than 550 branches and more than 900 ATMs across India, where DBS has a limited presence with only around 30 branches.
LVB had failed to submit any concrete proposal for capital raising and therefore the central bank stepped in and appointed an administrator and superseded the bank's board.
Trading in equity shares of LVB will be suspended from Nov 26, a regulatory filing said.
With this merger the 94-year old Chennai-based lender will cease to exist while giving a boost to DBS' expansion ambitions in India.

 

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High Court grants DBS' application to wind up Novena Global Healthcare founded by Loh cousins​

Mr Nelson Loh (left) co-founded Novena Global Healthcare with his cousin Mr Terence Loh. PHOTOS: ST FILE, COURTESY OF TERENCE LOH

Joyce Lim
Senior Correspondent

DEC 12, 2020

SINGAPORE - The High Court has granted an application from DBS Bank to wind up Novena Global Healthcare Pte Ltd.
The company owed the bank more than $14 million.
RSM has been appointed as the liquidator.
DBS, represented by Mr Ng Yeow Khoon and Ms Claudia Khoo from Shook Lin & Bok LLP, told the court that the defendant had not been in touch with them and they would proceed to wind up the company on Friday.
No one from Novena Global Healthcare attended the hearing on Friday morning.
But its subsidiary Novu Fasthetics said in a statement on Friday evening that the winding-up order "will not affect the day-to-day operations of Novu which will honour the packages to its customers".
The company operates aesthetics clinics under the Novu Aesthetics trade name.

"Notwithstanding the corporate and legal issues facing our parent company, it is business as usual at all our six outlets in Singapore," said Ms Marjory Loh, executive director of Novu Fasthetics.
RSM's Ong Su Sun confirmed with ST that the winding up order granted by the court relates only to Novena Global Healthcare and not other entities or subsidiaries.
In a separate statement, Mr Terence Loh, 43, who co-founded Novena Global Healthcare with his cousin Nelson Loh, 40, said: "There are parties which have expressed interest to acquire the Novu business, considering its track record and growth potential. In fact, some have already begun conducting due diligence."

Novu Aesthetics was formerly known as PPP Laser.
It was founded by Dr Goh Seng Heng in 2010 and operated under a company called Aesthetic Medical Partners. The Loh cousins later became directors, and following disputes with shareholders, Dr Goh quit in 2016. PPP Laser was rebranded that year.
In November, an Accounting and Corporate Regulatory Authority (Acra) regulations spokesman confirmed with The Straits Times that Aesthetic Medical Partners was one of eight entities owned by the Loh cousins which had not filed annual returns. Enforcement actions against them are ongoing.
Novena, which also owed millions of dollars to Citibank, United Overseas Bank, Maybank and Standard Chartered Bank, was earlier found to have breached Acra regulations by failing to file its annual return. Further enforcement action has been taken against the company, said Acra.
Its parent, Novena Global Healthcare Group, which was incorporated in the Cayman Islands by the Loh cousins, has been under police investigations for allegedly using unauthorised signatures of accounting firm Ernst & Young (EY) in financial statements.

The Loh cousins made news in August with a £280 million (S$498 million) takeover bid for English Premier League football club Newcastle United. The bid was made under the Bellagraph Nova Group, which they founded with Chinese entrepreneur Evangeline Shen, in July.
Mr Nelson Loh later transferred all his shares in Novena Global Healthcare Group and all its units to Mr Terence Loh for $1.
In a letter sent to more than 30 shareholders in November, Mr Terence Loh said he "firmly believes" the potential liquidation of the Singapore subsidiary "may not necessarily result in the demise" of the parent company.
Mr Terence Loh also said that his cousin and former business partner had left Singapore.
ST understands from sources that Mr Nelson Loh is in China.

 

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33 months' jail for former DBS employee who cheated clients of over $400,000​

Marcus Loh Thim Mun fraudulently obtained funds from his clients to settle his escalating gambling debts. ST PHOTO: KELVIN CHNG

Dominic Low

JAN 6, 2021

SINGAPORE - In a bid to pay off his growing gambling debts, a former DBS wealth planning manager cheated four people of more than $400,000.
Marcus Loh Thim Mun, 31, was sentenced to 33 months' jail on Wednesday (Jan 6).
He had earlier pleaded guilty to three charges of cheating, as well as one count of forgery and one involving the use of his benefits from criminal conduct.
Seven other charges - five of cheating, one of forgery and another involving illegal remote gambling - were taken into consideration during sentencing by District Judge Teoh Ai Lin.
Court documents state that Loh was employed by DBS between September 2017 and November 2018, when his offences were discovered.
Some time around October 2018, he decided to fraudulently obtain funds from his clients to settle his escalating gambling debts.
Loh told two of his victims that they could place a fixed deposit with DBS, earning a higher interest than they typically would from savings accounts.

He met one of them, a 56-year-old woman, on Oct 24, 2018, and asked her to log into her bank account using his DBS-issued iPad.
The victim did as she was told and left it to Loh to place a fixed deposit for her as she was unfamiliar with how to do so.
But he transferred $50,000 from her bank account to his own account instead, lying to her that his account was specifically created for her fixed deposit.

On Oct 31, 2018, Loh met the other victim, a 60-year-old woman, and told her to apply for Internet banking.
He then asked her to log into her bank account using his iPad and gave her detailed instructions, which resulted in the woman transferring $250,000 to his bank account.
Loh lied to a third victim, a 50-year-old Sri Lankan man, about a supposed DBS share ownership scheme which was exclusive to the bank's employees.
Saying that he wanted to help the victim participate in the scheme to capitalise on its high interest rates, Loh told the man to transfer money to his bank account first, with an assurance that DBS would issue a letter guaranteeing the money used.
The victim transferred $20,000 to him on Oct 15, 2018.
Loh later gave the man a letter allegedly from DBS, about the sum transferred, which he had forged using the bank's letterhead and stamp.

Court documents state that Loh met the last victim, a 34-year-old woman, at the DBS branch at Woodlands Civic Centre on Nov 13, 2018.
Pretending to assist the woman in placing a fixed deposit of $100,000 with the bank, Loh instead transferred the sum to his personal account.
As the victim could not view the details of her supposed fixed deposit, she asked Loh about the transaction.
Loh replied that this was due to a system delay, and the woman left the DBS branch.
Later that day, Loh called the victim and told her that $50,000 would be transferred back to her, with the remaining amount placed in a fixed deposit with a guaranteed interest rate of 2 per cent per annum.
He then transferred $50,000 back to her for unknown reasons, court documents state.
On Nov 15, 2018, the woman asked Loh again why she was unable to view the details of her fixed deposit.
When he replied that he was on leave, she sought clarification at another DBS branch. She was then informed that DBS did not have any records of the fixed deposit being placed and that the bank would investigate the matter.
The next day, Loh's bank account was frozen and a police report lodged.
Court documents state that he had made 20 bank account transactions involving $88,000 in all between Oct 8 and Nov 14, 2018. The sum was used to buy virtual credits, which he used to gamble.
He has since made full restitution to DBS, which had compensated all his victims.
On Wednesday, District Judge Teoh granted Loh's request to defer his sentence to Jan 18 so that he can settle some personal matters, including a housing loan.
For each of his cheating offences, Loh could have been jailed for up to 10 years and/or fined.
He could also have been jailed for up to four years and/or fined for his forgery offence.
For using the benefits of his criminal conduct, Loh could have been jailed for up to 10 years and/or fined up to $500,000.

 

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DBS apologises after customers experience delays on new notes exchange portal​

DBS bank said that the delays were due to a surge of traffic. PHOTO: ST FILE

Jean Iau

JAN 24, 2021

SINGAPORE - DBS bank has apologised after customers experienced delays accessing its new notes exchange reservation portal.
In a Facebook post on Sunday (Jan 24), the bank said that the delays were due to a surge of traffic.
"Due to overwhelmingly high traffic, some customers may experience intermittent delays when accessing our new notes exchange online reservation portal.
"We sincerely apologise for the inconvenience caused and seek your kind understanding," said DBS Bank.
From Monday, customers who are unable to reserve a slot can get new notes from its 61 new notes ATMs located across the island.
Those who are aged 60 and above, or those with disabilities, can visit its branches for new notes services.
The new notes are subject to availability.

The Monetary Authority of Singapore (MAS) has encouraged people to opt for e-hongbao this Chinese New Year.
Those who still want to give physical notes for Chinese New Year will have to make an appointment using their bank's online reservation system before visiting the branches to collect the new notes.

 

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Online reservation of notes​

Forum: DBS system not well designed​

DBS Asia Hub located at the Changi Business Park, on Jan 11, 2019. PHOTO: ST FILE

JAN 27, 2021


The software used by DBS Bank for the online reservation of new notes is badly designed.
Users are required to try selecting different dates and collection centres, but might then get an apology message saying the selection has been fully taken.
A well-designed system would instead check the database for available slots and centres, and present them for users to select.
Why have users go through the process if slots are already taken?

Choo Hock Lye

 

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Online reservation of notes​

Forum: Still no success on second attempt​

A man types on his laptop, on Nov 3, 2020. ST PHOTO: GIN TAY

JAN 27, 2021


I thank DBS Bank for its reply, in which it said more slots for the online reservation of new notes would be available from the past Sunday (DBS to make available more slots for reservation of notes online, Jan 23).
But my second experience with the reservation system turned out to be just as frustrating.
I tried logging in to the website at 9am on Sunday.
And similar to what I experienced last week, the reservation system seemed unable to handle the load.
I spent nearly four hours trying to make a reservation, but I kept receiving error messages from the system and eventually gave up.
DBS is one of the largest banks in Singapore serving many residents, and I wonder how many customers faced the same issue.

I spent nearly four hours trying to make a reservation, but I kept receiving error messages from the system and eventually gave up.​

Han Ming Guang

 

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New notes​

New measures taken to ease queues​

JAN 30, 2021

We refer to the letters, "Some seniors sat on floor to rest while queueing at pop-up ATM", "DBS system for online reservation of notes not well designed" and "Still no success on second attempt to reserve notes online", all published on Jan 27.
We know that Chinese New Year is a very special occasion for many of us. Heralding the new year with the tradition of exchanging red packets is something we all look forward to.
This year, however, with safety measures in place, we anticipated that it would be more challenging for customers to get new notes and doubled our online reservation slots.
We also added 21 more new notes ATMs, totalling 61 new notes ATMs across 41 locations. This is in addition to our more than 1,200 ATMs islandwide.
We also took safety precautions such as having capacity limits at our branches and deploying safety ambassadors to ensure customers practise safe distancing.
However, we saw overwhelming demand for new notes in the first week of distribution, resulting in unacceptably long wait times in some locations. This is understandably very frustrating, and we are sorry for the inconvenience caused.
We have since implemented new steps to ease the situation by:

• Placing more chairs for seniors waiting in line;
• Providing customers with timely updates on estimated wait times;
• Employing additional engineers to be on hand to fix any new notes ATM issues.
In the meantime, the following options are also available:
• Customers can obtain notes from our network of more than 1,200 regular ATMs, which are available round-the-clock;
• They can also consider alternatives such as the DBS QR Gift, which preserves the tradition of exchanging red packets. From now till Feb 2, customers can order DBS QR Gift cards online (go.dbs.com/sg-qrgiftorder), which we will mail to them for free.
Customers can also get DBS QR Gift cards at all 63 Sheng Siong outlets from today to Feb 11, and Esso service stations from Feb 6 onwards, while stocks last.
We thank our customers for their patience and will continue to work on giving them a better experience. Wishing everyone a safe and happy Chinese New Year.

Jeremy Soo
Head, Consumer Banking Group, DBS Singapore