In Short:
The State Bank of India (SBI) aims to attract Gen Z depositors by innovating its products, merging fixed deposits and SIPs into a digital combo. Chairman Setty noted the growing demand for flexible investment options. SBI also plans to avoid rate wars, focusing instead on balanced interest rates and customer service. They aim for a ₹1 lakh crore net profit in 3-5 years and have a strong corporate loan pipeline.
In an exciting move to reel in more depositors, particularly those from **Gen Z**, the **State Bank of India (SBI)** is set to shake things up by reimagining some of their traditional products. During a recent interview with PTI, **SBI Chairman Challa Sreenivasalu Setty** shared insights on these innovative plans.
Innovative Financial Solutions
“We’re on a mission to introduce innovation into our conventional offerings like recurring deposits, which are essentially similar to a traditional SIP,” Setty explained. “Imagine a product that combines the benefits of fixed deposits, recurring deposits, and SIPs—easily accessible in a digital format. Our goal is to make these deposit products more appealing to the younger generation,” he added.
Understanding the Modern Investor
Setty highlighted a noteworthy trend: “Day by day, customers are becoming savvier about their finances. They’re looking for innovative investment options, placing a higher value on asset allocation, and seeking genuine returns on their investments.” This shift has prompted SBI to focus on products that resonate with this evolving mindset.
“Clearly, no one wants to put all their eggs in a risky or speculative basket. Banking products will always hold their ground. Therefore, we’re dedicated to creating offerings that align with what modern investors are searching for,” Setty emphasized.
Strategic Approach Over Rate Wars
On top of revamping their product lineup, SBI has kicked off an extensive outreach program to enhance deposit mobilization. Setty stated, “We’re not interested in waging a rate war.” Their objective remains clear: to balance competitive interest rates with top-notch customer service.
Embracing Digital Transformation
Making impressive strides in the digital economy, SBI has already issued a significant **50%** of its fixed deposits through digital channels. Moreover, the bank is successfully opening up **50,000 to 60,000 savings accounts daily**, many of which are processed online.
Aiming for New Heights
Looking ahead, SBI has its sights set on a monumental goal: becoming the first Indian financial institution to record a net profit of **₹1 lakh crore** within the next **3-5 years**. For FY24, the bank achieved a standalone net profit of **₹61,077 crore**, marking an impressive growth of **21.59%**. Setty confidently stated, “We have the potential. Without a doubt, we aspire to be the first in India to reach that remarkable milestone.”
Corporate Loan Prospects
Furthermore, SBI boasts a robust corporate loan pipeline, with **₹4 lakh crore** in pending credit requests from India Inc. The bank anticipates that private sector capital expenditures will gain momentum in the latter half of the fiscal year, according to the latest report from PTI.
