More Stories

Informist, Friday, Aug 30, 2024

--SBI Setty: Fintech ecosystem re-shaping the way banks do business 
--SBI Setty: Not under pressure of a reducing credit ratio 
--SBI Setty: Too early to gauge commercial impact of GenAI 
--SBI Setty: Competition for deposits likely to continue for some time 
--SBI Setty: Most bks not getting into 'rate war' to garner deposits 
--SBI Setty: We want to have enterprise-wide adoption of AI 
--SBI Setty: Most retail personal loans via digital channel 
--CONTEXT: SBI Chairman Setty speaking at Global Fintech Fest 
--SBI Setty: To launch YONO 2.0 by November in closed user group 
--SBI Setty: Aim to revamp all channels, including net banking, branches 

MUMBAI – A majority of Indian banks are not getting into a rate war to garner deposits even as deposit growth in the banking system continues to lag credit growth, State Bank of India Chairperson, CS Setty, said at the Global Fintech Fest. "Most of the banks...we are not getting into a rate war. We want to attract customers by way of improved service quality, improved access," Setty said. 

However, the competition for deposits is expected to continue for some time, Setty said. "There will be some tweaking in the interest in the 1-2-year bucket, which is the most popular one. The competition for deposits is likely to continue for some time," he said. 

These comments came in the backdrop of household savings shifting to other alternatives such as mutual funds, insurance from bank deposits in order to get better returns.

The bank is planning to launch the second version of its mobile application YONO, the YONO 2.0 in November, Setty said. "We are looking to completely transform the app," Setty said. "Hopefully sometime during November we will be able to launch the first phase under closed user group and then eventually to the public," he said. Setty aims to bring 90% of the unsecured retail loans from digital channels.

He also said that in order to enhance customer experience, the bank is working on all channels to enhance all the ways in which customers do banking. "We would like to create an omni-channel experience. It's not just about the mobile application, we want to revamp our internet banking, and we want to refresh our branch experience," he said.

In terms of deposit growth, Setty said that the bank is not under any pressure to bring down the credit-deposit ratio. "We have robust credit growth, we are anticipating a credit growth of 14-16%. Deposits even if we have 8–10% growth because of a large base, in absolute numbers it will be more than absolute amount of credit," he said. The bank's loan growth was up 15.4% on year and the deposits were up 8.2% on year as on Jun 30. 

Setty also said that the financial technology system ecosystem is re-shaping the way banks do business. They are looking at large scale adoption of market technologies, he added. "This would help us, combined with our prowess which we developed in AI & ML (Artificial Intelligence and Machine Learning) to make hyper personalised offers. And not only in terms of retail personnel, we are looking at even other segments--bottom of the pyramid, financial inclusion segment, agriculture, MSME, what kind of personalisation can be done," he said. End

Reported by Kabir Sharma and Kshipra Petkar

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.