Foreign news: DBS Bank's covered bond program, India banks' capital boost, Lloyds sell-off continues 25 June 2015 4:24PM Banking Day staff Foreign news, Singapore's DBS Bank has set up a US$10 billion covered bond program - the first by a Singaporean bank. Since 2013 the Monetary Authority of Singapore has allowed the country's banks to issue covered bonds worth up to four per cent of their total assets. DBS said in a statement that the issue would allow it to "engage a fresh group of investors" and lower its cost of funds. Moody's said in a note that the issue would give the bank a stable funding source that would ensure access to funds even in times of market disruption. State-owned banks in India might receive a collective balance sheet boost of US$3 billion this fiscal year and potentially US$6 billion more next year, as the government tries to recapitalise the sector to meet Basel III rules. Reuters reports the planned capital injection is much higher than the Budget estimate of US$1.25 billion for this fiscal year. Nevertheless, Morgan Stanley observed that rising bad debts - now heading towards six per cent - could require as much as US$15 billion across all state banks to be injected "urgently" to achieve a common equity tier 1 ratio of around ten per cent. The British taxpayers' share of Lloyds Bank sits at 16.9 per cent, taking the total sum recovered to £11.5 billion. Reuters reports UKFI, which manages government's stakes in bailed-out banks, has extended a 'trading plan ' that will allow Morgan Stanley to sell Lloyds shares beyond the June 30 deadline until the end of the year. The retail sale could enable a full exit in the next year as shares have sold through the plan at an average of more than 80 pence, above the government's average 73.6 pence buy-in price. A Chase Bank survey of banking customers has indicated the majority of US consumers have embraced online services, using mobile applications (33 per cent) or online banking (35 per cent), about one-third of the time each, with only 16 per cent stopping by branches for their banking needs. Usage has been solid, with 54 per cent using their mobile banking apps at work, 39 per cent using them at restaurants and 38 per cent using them in a checkout line at a store. Of the 1,500 adults surveyed, 70 per cent are using a bank's website or online portal.