Country’s largest lender State Bank of India (SBI) is planning to expand its physical presence significantly with opening of 600 new branches in FY25 across the country. This will be part of efforts at business opportunities in all emerging areas, including large residential townships, which remain largely underbanked. Speaking to an interviewer, SBI Chairman C S Setty said that this would further the bank’s reach and reach out to a growing population to serve their financial needs.
Emerging Areas State Bank of India
As part of such a move, SBI would look to push its reach into residential colonies and other emerging micro-markets that remain out of the bank’s network. “Most large residential townships and new business hubs are not yet completely covered through bank services,” Setty said. These are now likely to get new branches of the bank across untapped markets to provide improved banking services to residents, who at present remain un-enabled with easy access to physical banking infrastructure.
Setty observed that the growth would have to be sustained across regions where demand for banking services is on an uptrend. “We are looking at 600 branches this year, as well,” he said, referring to the bank’s bullish expansion plan.
State Bank of India’s Previous Expansion and Network Size
During FY24, the group opened 137 new branches, of which 59 were in rural settings. The banking group continues to step up its efforts on financial and banking inclusion for rural populations who otherwise receive little or no such services. The gross network of the bank’s branches at the end of March 2024 stood at 22,542 across India.
Apart from its large branch network, SBI operates 65,000 ATMs and has 85,000 business correspondents. Its base of customers is as large as nearly 50 crore or 500 million. SBI can, therefore, boast of being the banker to a large part of the Indian population.
Innovative Products for Depositors
The bank also plans to introduce some innovative banking products in a bid to attract more depositors. The combo product, which is an amalgam of recurring deposit and SIP, will be hitting the markets soon. According to Setty, with the increasing financial literacy of the customers, they have started demanding higher investment avenues. The bank is looking to meet that requirement by addressing it with stability as well as growth in a few of its products. The RD-SIP combination product would allow the depositors to derive the benefits of both fixed deposits and SIP, hence bringing balance within an investment instrument that can also be accessed digitally.
As Setty explained, “We are trying to bring innovation in some of the conventional products like recurring deposits, which is actually a conventional SIP. Maybe we can combine both fixed deposits/recurring deposits and SIP, a combo product that could be digitally accessible.”
State Bank of India Outreach for Deposit Mobilization
SBI has also initiated a big outreach program to raise deposit mobilization. To this end, the initiative focuses on covering both existing and prospective customers throughout the country. According to Setty, deposit mobilization has been the mainstay of the bank’s business. At the same time, it was using its humongous branch network to reach out to as many customers as possible. “Today, the outreach on the part of SBI is to talk to every customer, both new and existing ones,” he said.
This outreach program is one of the consolidation steps taken by SBI. To expand its deposit base and thus put it in a suitable position to support its lending and investment activities.
State Bank of India Vision
Chairman Setty speaks like he articulated a vision for SBI, which is not only about financial performance. He wants to make SBI the best bank in this country, not just in terms of shareholder value but also in terms of value. That it could add to its customers, its employees, and then the larger ecosystem. He was very keen on stakeholder satisfaction. According to him, the bank aims to be a trusted and reliable partner for all.
Setty summed it all up, emphasizing SBI’s commitment to its customers, innovation, and expansion. As part of a promise made in response to Indians’ new wishes in financial matters.
FAQs
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What does SBI plan in FY25?
SBI plans to open 600 new branches across the country in FY25 to expand its physical presence to even more underserved pockets.
2. Why is SBI planning to expand more and more branch networks?
SBI is looking to service the rising population’s financial needs and to reach emerging areas such as residential townships and business hubs that lack banking infrastructure.
3. How many new branches SBI opened in FY24?
SBI opened 137 new branches in FY24 with 59 rural areas banking inclusion.
4. How big is the total branch network of SBI?
As of March 2024, SBI had 22,542 branches all over India, besides 65,000 ATMs and 85,000 business correspondents.
5. How many customers is SBI catering to?
SBI caters to nearly 500 million customers and is one of the biggest banks in India by customer base.
6. Which kind of innovative products is SBI launching?
SBI is launching a combination product that combines recurring deposits (RD) with Systematic Investment Plans (SIP), ready to be available digitally to cater to the investment needs of customers.
7. What does the State Bank of India’s outreach program try to do?
It seeks to enhance deposit mobilization by touching base with the existing as well as prospective customers in the entire country.
8. What is your vision for SBI, says Chairman Setty?
That SBI should be the best bank in India by adding value not only to shareholders but also to customers, employees, and the larger ecosystem.
9. How does SBI address residential townships?
SBI would add new branches in underbanked residential colonies and micro-markets for better access to banking services.
10. What does the combo product of an RD and SIP offer?
This is a combo product of an RD and SIP that offers the benefit of both fixed deposits and SIP providing stability and growth within the digital investment instrument.
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