SBI Mulls Service Charge as ATM Segment Incurs Loss - The New Indian Express

SBI Mulls Service Charge as ATM Segment Incurs Loss

Published: 13th January 2014 10:02 AM

Last Updated: 13th January 2014 10:02 AM

Stating that its ATM operations are making losses, nation’s largest bank, State Bank of India has said it is all for charging customers for transactions.

It also said a commercially viable model is needed for ATM network expansion.

“Whatever services we give, ultimately it has to be a win-win situation.... We just want a commercially viable model, I cannot afford to lose month after month,” SBI Chairperson Arundhati Bhattacharya told PTI in an interview.

Bhattacharya also said barring in a few states, the ATM operations are making losses. She did not name the states where the ATM segment is making money. She said SBI cannot subsidise ATMs forever.

“The loss from ATMs is very concerning. I would like to roll out many more ATMs. I am ready to do that, but I need to explain also how I am going to sustain this,” she said.

When asked about the industry demand that customers be charged for ATM services, especially after the push in costs of ATMs after the Bangalore incident wherein a woman was attacked inside the ATM kiosk, she said SBI supports the idea of charging even its own customers.

“If you are looking at extending the ATM network and making it available to more and more people, there has to be a commercially viable model,” she said.

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