DBS CEO Tan Sees Overseas Confidence in India Despite Capital Outflow Fears
DBS Bank CEO Tan Su Shan pushed back on concerns over India capital outflows, pointing to $133 billion mobilised by Indian banks under the FCNR(B) scheme. The comments matter to USD/INR traders because the rupee is near historic lows and foreign investors have been net sellers of Indian equities.
Key Takeaways
- Rupee support: Tan said India needs more foreign direct investment (FDI) and higher exports to attract more durable capital.
- Growth case: She said few big countries are left in the world with GDP growth above 7%.
- Credit data: Tan said India Stack, GST and UPI create a data ecosystem that helps financial institutions assess credit.
What Happened
Tan met Finance Minister Nirmala Sitharaman during the minister's visit to Singapore on Saturday. No response from Sitharaman or the Indian government is quoted.
Tan read the strength of FCNR(B) deposit demand as a sign of overseas confidence. "That tells you the world has faith in Indian credits," she said.
She said India must find a way to hold its currency steady while it draws more FDI and exports. "We've got to figure out a way to keep the rupee stable," Tan said.
She said India has the power and the people, pointing to its software talent and digital infrastructure.
Background
Tan said she remains structurally optimistic about India. She cited its growing middle class, economic growth and digital infrastructure.
She said DBS's Indian SME loan book performed best during Covid because the bank had good data. For artificial intelligence, she said, India still needs hardware and precision-engineering capabilities.
Tan also said Singapore could play an important role in intermediating investment between north and south Asia. The reporter was in Singapore at the invitation of DBS Bank.
Market Impact
- USD/INR: Foreign investors' net equity selling has put pressure on the rupee. The USD/INR rate was 96.65 (ECB reference rate, 2026-10-12).
- Indian equities: Foreign investors sold a net $7.76 billion of Indian shares over the past two months. The source gives no end date for that period or for the $133 billion FCNR(B) total.
- INR volatility: The Reserve Bank of India (RBI) announced measures to curb volatility. The source gives no details of the measures or the date.
What to Watch Next
- FDI and export data: Tan named both as the route to more durable capital, but the source gives no current figures for either.
- RBI measures: Their design would show how the central bank plans to limit rupee swings.
- Foreign equity flows: Net selling is the pressure point the source names for the rupee.
Bottom Line
A senior foreign banker is arguing that deposit demand, not equity selling, shows how overseas investors view India. For USD/INR traders, the split between those two capital channels is the point of contention.
Related Reading
Source: Economic Times
This material is for informational purposes only and does not constitute investment advice.