DBS venture in India to shut branches, slash jobs
DBS Group's joint venture in India, Cholamandalam DBS Finance, will close more than a
quarter of its branches because of a sharp slowdown in demand. 'As a result of a decision by
the Chola DBS board and major shareholders to put more focus on vehicle finance, asset
management, corporate lending and home equity, Chola DBS is closing 75 branches within its
personal loans business,' said a DBS spokesman in response to BT queries. The Times of
India daily said yesterday that Chola DBS would shut 75 of its 260 branches and lay off up to
200 of its 1,800 staff.
The newspaper quoted an e-mail message sent to staff by the company's managing director,
Atul Pande, who said that the company faces 'unprecedented challenges'. The e-mail message
- which the paper said it has a copy of - blames 'great turbulence' in the financial services
industry and an economic slowdown for a drop in demand for personal loans. Mr Pande told
the paper that the company would try to offer jobs elsewhere in the group to the 200 staff at the
branches to be shut. He said that Chola DBS was doing well in other areas of business,
including vehicle finance.
DBS bought a 37.48 per cent stake in the financial services company in 2005. India's
Murugappa Group holds another 37.48 per cent. The rest is owned by public shareholders.
DBS Group chief executive Richard Stanley said at the PBD Singapore international
conference last week that the bank has 'very big' ambitions for its operations in India. DBS
plans to have 10 branches and some 500 staff in the country by year-end, he said. 'India
remains an important market in DBS's regional expansion strategy and we are still in growth
mode,' said a bank spokesman yesterday.
DBS Group's joint venture in India, Cholamandalam DBS Finance, will close more than a
quarter of its branches because of a sharp slowdown in demand. 'As a result of a decision by
the Chola DBS board and major shareholders to put more focus on vehicle finance, asset
management, corporate lending and home equity, Chola DBS is closing 75 branches within its
personal loans business,' said a DBS spokesman in response to BT queries. The Times of
India daily said yesterday that Chola DBS would shut 75 of its 260 branches and lay off up to
200 of its 1,800 staff.
The newspaper quoted an e-mail message sent to staff by the company's managing director,
Atul Pande, who said that the company faces 'unprecedented challenges'. The e-mail message
- which the paper said it has a copy of - blames 'great turbulence' in the financial services
industry and an economic slowdown for a drop in demand for personal loans. Mr Pande told
the paper that the company would try to offer jobs elsewhere in the group to the 200 staff at the
branches to be shut. He said that Chola DBS was doing well in other areas of business,
including vehicle finance.
DBS bought a 37.48 per cent stake in the financial services company in 2005. India's
Murugappa Group holds another 37.48 per cent. The rest is owned by public shareholders.
DBS Group chief executive Richard Stanley said at the PBD Singapore international
conference last week that the bank has 'very big' ambitions for its operations in India. DBS
plans to have 10 branches and some 500 staff in the country by year-end, he said. 'India
remains an important market in DBS's regional expansion strategy and we are still in growth
mode,' said a bank spokesman yesterday.
