Key facts
- DBS Bank CEO Su Shan Tan expressed optimism about India's long-term structural growth potential.
- The bank infused Rs 1,600 crore into its Indian operations in March and plans to expand wealth management services.
- Tan believes India can benefit from the AI boom by investing in talent, people, and education.
- Global trends like supply chain diversification and the shift to renewables are creating opportunities.
- Cybersecurity is a major concern for DBS due to the increasing power of AI.
Su Shan Tan, CEO of Singapore-based DBS Bank, views India as a significant long-term structural growth opportunity, despite acknowledging near-term global economic volatility. She believes India can capitalize on the artificial intelligence boom, particularly in memory chips and hardware manufacturing, but emphasizes the critical need for investment in talent, people, and education to achieve this.
DBS has demonstrated its commitment to India by infusing Rs 1,600 crore into its operations in March and plans to expand its presence, especially in wealth management, by adding eight new wealth centers. The bank is also focusing on supply chain financing and deepening client relationships, aiming to attract more multinational corporations to India and leverage the country's manufacturing pivot.
Tan highlighted broader global trends influencing economic activity, including the structural shift towards supply chain diversification driven by events like the COVID-19 pandemic, trade tariffs, and geopolitical conflicts. She also pointed to the growing urgency of the transition to renewable energy. Intra-regional trade within Asia has seen an increase, and companies are actively pivoting their operations.
Regarding India's potential to miss the AI wave, Tan expressed confidence that the country can still leapfrog by building advanced generation fabs, provided it invests adequately in its workforce. She noted that India's growth is more broadly spread and long-term, supported by its young demographics and rising middle class, contrasting with Taiwan's growth, which is heavily influenced by the AI semiconductor sector.
DBS is also exploring opportunities presented by the Reserve Bank of India's (RBI) FCNR(B) and ECB offers to mobilize funds and support rupee stability. Tan suggested that government economic development boards could collaborate with banks to actively promote India to potential foreign investors.
Reflecting on the integration of Lakshmi Vilas Bank, acquired six years ago, Tan acknowledged the challenges but noted progress in retail business, gold loans, and current and savings accounts. She stated there are no immediate plans for DBS to list in India, as it is too early for such a conversation.
In terms of investment strategy, Tan advised that smart money remains nimble and diversified, not fixated on a single asset class. She noted gold's role as a hedge against the rupee in India, while emphasizing the continued importance of the US dollar in the global market. Finally, Tan identified cybersecurity as a primary concern, given the increasing power and recursive nature of AI, stressing the need for continuous investment in cyber hygiene and layered defenses.