SBI to see consolidation gains in 2-3 years

Now ‘SBI Wealth’ is serving nearly 36,000 customers and is looking to significantly expand client base to 1,25,000 with an AUM of Rs 1 lakh crore in the next two years.
SBI (File | Reuters)
SBI (File | Reuters)

BHUBANESWAR: State Bank of India, the nation’s top lender by assets, expects to see gains from consolidation of its associate banks last year in the next two to three years, said SBI Chairman Rajnish Kumar on Monday.

“In the last one year, we focussed on combining the balance sheets, shuffle stuff and several other integrations to save costs. We have so far rationalised 1,800 branches and it is reflecting in our operational efficiencies,” said the chairman adding it will take another two or three years to show better profitability and improve lending capabilities.

On April 1, 2017, five associates and the Bharatiya Mahila Bank became part of the State Bank of India (SBI), catapulting the country’s largest lender to among the top 50 banks in the world. 

Currently, SBI is the largest bank, with a market share of 23 per cent.

Addressing the gathering at the Make in Odisha conclave, the chairman said that the lender is ready to fund two-third of the capital requirement for industries to invest in the state. “They (investors) only need to worry about the one-third, and we will provide the rest.”

As part of its plan to open wealth hubs in 50 centres in the country by 2020, Kumar also launched its wealth business services in Bhubaneswar.

“Introducing wealth business has been one of the top strategic business priorities as we have several HNI clients whose banking needs require highly specialised services,” Kumar said. 

Now ‘SBI Wealth’ is serving nearly 36,000 customers and is looking to significantly expand client base to 1,25,000 with an AUM of `1 lakh crore in the next two years.

Stating that ‘SBI Wealth’ had a presence in 25 major centres in the country with a network of 95 ‘Wealth Hubs’, he said, the bank was in the process of setting up a state-of-the-art global e-wealth centre at Kochi.

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