A bank that serves businesses across India has reported nearly a fourfold increase in net profits, substantially helped by a strong showing in its non-interest income.

The head of DBS Bank India says letters of credit (L/Cs) are amongst the products and services that have helped the bank boost its profits.

Substantial increases

DBS Bank India recorded an increased net profit of 2.59 billion rupees (Rs2.59 billion) for the financial year ended 31 March 2009 compared with just Rs650 million in the previous year.

Comparing the same periods, the bank's net interest income grew to Rs3.14 billion from Rs2.407 billion while net trading income increased to Rs1.067 as against a trading loss of Rs731 million in the previous year.

Income from fees and advances experienced fivefold growth at Rs1.949 billion in the year compared with just Rs364 million at the end of the previous year.

Income growth

General manager and chief executive officer of DBS Bank India, Sanjiv Bhasin, explained to local media how the bank had boosted its profits.

"The good showing in non-fund income is a result of our focus on short-term products like short-term credit, trade limits and L/Cs," he said.

"Non-fund income is going to be our focus for the next few years," he added.

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