With an aim to attract more depositors, especially Generation Z, the State Bank of India (SBI) is looking to innovate existing products by combining fixed deposits and SIP, SBI Chairman Setty told PTI in an interview.
“We are trying to innovate on some of the conventional products like recurring deposit, which is actually a conventional SIP… Maybe we can combine fixed deposit/recurring deposit and SIP, a combined product that could be accessible digitally.” the SBI president told PTI. This move aims to popularize deposit products among Generation Z, he added. Challa Sreenivasalu Setty.
‘Products that will attract them’
Setty stated that day by day clients are becoming more financially aware and demanding, with a view to innovative investment instruments. They are placing more importance on asset allocation and seeking value in their investments.
“Obviously, no one wants to put everything into a risk asset or a speculative asset…banking products will always be part of the basket. Therefore, we are trying to offer products that are attractive to them,” the SBI chairman said, PTI reported.
‘…not fighting the tariff war’
In addition to innovating with a combination of old and new products, The SBI has also undertaken a large-scale extension program to boost deposit mobilization. He stated that the SBI “would not like to participate in the rate war”, implying that the bank’s objective remains to offer balanced interest rates and superior customer service.
Moving rapidly into the digital economy, SBI has issued 50 per cent of its fixed deposits through digital channels. Additionally, the bank opens between 50,000 and 60,000 savings accounts daily, many of which are processed digitally.
SBI has also set its sights on becoming the first Indian financial institution to achieve a net profit milestone of $1 lakh crore in the next 3-5 years. In FY24, the bank posted a standalone net profit of $61,077 crore, registering a growth of 21.59 per cent. Looking ahead, Setty told PTI: “We have potential. We would definitely like to be the first company in India to reach that milestone.”
In addition, OSE also has a solid corporate loan portfolio, with $4 lakh crore in outstanding credit from India Inc. The bank expects private sector capex to recover in the second half of the fiscal year, PTI reported.
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