In a bid to attract depositors, State Bank of India is contemplating launching innovative products including a combined recurring deposit and SIP product, bank chairman CS Setty said.
As the economy advances, he said, clients are becoming more financially aware and demanding, and have begun to look for innovative investment instruments.
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Today clients are looking at the value proposition as financial literacy improves and the concept of asset allocation will gain greater importance, he said.
“Obviously, no one wants to put everything in a risk asset or a speculative asset…banking products will always be part of the basket. So we are trying to offer products that are attractive to them,” he 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.” said.
So, he said, these are the innovations the bank is thinking about in terms of popularizing deposit products among Generation Z.
Furthermore, he said, the bank has undertaken a massive outreach program for deposit mobilization.
“As I said, for us, warehouse mobilization is a franchise job. We have the largest number of physical outlets across the country. We are leveraging our huge physical reach by starting outreach programs where customers are contacted. Today , the effort on part of SBI must reach out to all customers, both existing and new,” he said.
Underlining that the deposit is a function of the interest rate and customer service, Setty said: “Obviously there is a requirement to adequately compensate our customers, but we wouldn’t want to fight the rate war. I think most “Banks are also pursuing a balancing act between offering the right rate and the right service. Therefore, we aim to improve customer service and also adequately compensate our customers.”
In addition, he said, the SBI has promoted the opening of new accounts and between 50,000 and 60,000 savings bank accounts are opened every day.
Coming to fixed deposits, Setty said, almost 50 per cent of our fixed deposits are raised solely through digital channels and also many accounts are opened through digital means.
Meanwhile, he also said that SBI aims to become the first Indian financial company to cross the milestone of a net profit of Rs 1 lakh crore in the next 3-5 years.
SBI posted a standalone net profit of Rs 61,077 crore in FY24, registering a growth of 21.59 per cent.
“We have potential. We would definitely like to be the first company in India to reach that milestone,” Setty said when asked if it is possible to cross Rs 1 lakh crore in the next 3-5 years.
However, he said, “while profits, market capitalization, etc. are extremely important elements for our organization, we give equal impetus to customer focus and it acts as a fundamental aspect of our operations.”
Regarding corporate loan demand, Setty said, the bank already has a strong loan portfolio of Rs 4 lakh-crore from India Inc and private sector capex is expected to pick up in the second half of the year. fiscal.
(Only the title and image of this report may have been modified by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 29, 2024 | 10:54 am IS
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