The Reserve Bank of India recently advised banks to work on increasing their deposits.
In response, CS Shetty, the new Chairman of the State Bank of India (SBI), shared the bank’s approach. He mentioned that the pressure to boost deposits is likely to continue for a while.
However, instead of getting into a competition over interest rates, SBI will focus on enhancing customer service and leveraging its extensive network to attract more deposits.
Bank’s Growth Goals
SBI is aiming for a loan growth of 14-16% in the financial year 2024-25.
According to Shetty, the bank can comfortably achieve this with an 8-10% growth in deposits, thanks to its strong financial foundation.
He also plans to build on the bank’s existing strengths, noting that SBI’s financial position is solid.
Upcoming Customer Benefits
Shetty also announced that SBI is preparing to launch the highly anticipated Uno 2.0 for a select group of users in November, with plans to make it widely available later.
Additionally, the bank aims to process 90% of its retail unsecured loans through digital platforms.
Key Statistics
A report from SBI economists reveals that almost half of the term deposits in the financial system are held by senior citizens, while younger people are exploring other investment options.
Since the financial year 2021-22, deposits have grown by ₹61 lakh crore, outpacing the loan growth of ₹59 lakh crore.
For context, CS Shetty recently took over as SBI’s Chairman, succeeding Dinesh Khara. Before this, Shetty was the senior-most Managing Director at SBI.
