SBI Chairman C S Setty Warns Of Continued Pressure On Deposit Growth
However, the country's largest lender will not get into a 'rate war' to attract deposits, he said.
SBI's new chairman C S Setty on Friday said pressures on enhancing deposits are likely to persist for some more time in the banking system.
However, the country's largest lender will not get into a 'rate war' to attract deposits, he said, adding that the bank will bet on its customer service and wider network to drive the deposit growth.
"Competition on deposits is expected to continue for some time," Setty, who took over on Wednesday, said speaking at the annual GFF (Global Fintech Fest) here.
He said the bank is targeting for a credit growth of 14-16% in financial year 2025, and can easily sustain it with a deposit growth of 8-10% given the higher base of liabilities that it possesses.
Speaking to reporters on the sidelines, Setty said he plans to build on the strengths of the bank as it has a strong balance sheet.
He also said that the bank is aiming to launch the widely anticipated YONO 2.0 offering in a closed user group in November and then follow it up with a wider launch for all.
The bank is aiming to get 90% of its retail unsecured loans from the digital channels, he said, adding that it has disbursed 1.3 trillion personal loans through the YONO app till now.
Setty launched three new offerings to enhance commute experience across India on Friday, which include the MTS RuPay NCMC prepaid card offline payment solution and one view mobile app and Advanced design for SBI FASTag.
Meanwhile, speaking at the same event, Axis Bank chief executive and managing director Amitabh Chaudhry said the highly celebrated zero balance accounts are yet to reach a scale at the system level.
He also said that the rising incidence of frauds has made people 'worried' about undertaking banking transactions.
Chaudhry said very soon, the bank will offer a service on its mobile app where customers of other banks will be able to undertake transactions rather than just being able to view the account details as is offered today.
The bank is running a total of 15 pilots on artificial intelligence and machine learning at present, he said, specifying that one of the areas will be in Human Resources where technology will help the bank go through resumes to make hiring easier.
