Mumbai: State Bank of India is aiming to be the market leader in all 787 districts of the country as it prepares for the next 10 years, said chairman C.S. Setty, in an interview with Mint on the occasion of its platinum jubilee celebrations.
SBI’s market share is at 22.54% in deposits and 19.36% in advances. Setty explained that the bank is taking a three-pronged approach to improving its market share.
In areas where the bank has a dominant market share in deposits, SBI is looking to defend its existing business and acquire more of the pie. In metros, where the bank has a lower market share, it is looking to be a dominant player.
“Despite having almost 23,000 branches, we still find that in some developing urban areas, our presence is not there. These are what we call white spaces. So, we would like to set up branches in places where we need to have a branch and deploy a new sales force, whether it is our internal team or using some of the feet on the street from subsidiaries,” he added.
In areas where SBI has a dominant market share in deposits but a lower share in loans, the bank is looking to set up specialized branches.
In its annual report, the SBI chairman also mentioned that the bank is considering forming strategic partnerships with fintech, agrotech and government-backed digital platforms to build a broader ecosystem. “We are deepening our footprint in high-potential micro-markets while modernising our brand to better resonate with digital-first generations and underserved entrepreneurs. These steps support both customer acquisition and deeper engagement,” the report said.
To drive this strategy, the SBI chairman and his four managing directors are conducting a massive outreach programme across 104 zonal offices to align officers with the management’s thinking. The bank’s focus remains on improving profitability through disciplined cost management, optimising asset mix and expanding fee-based income streams.
The outreach programmes start with a presentation tracing SBI’s legacy over the last 70 years. Flashes of a 1955 advertisement convey the message of a bank that stands for the country and people. Challenges of asset quality, deposit mobilisation, outsourcing, and the penetration of the YONO app are some of the key themes of discussion.
“How do you future-proof our organisation from a customer service point of view and also the services which are offered across the channels? So, this is the primary message which I keep talking about and then there are some elements in terms of digitalisation, in terms of being compliant and in terms of a more market-oriented approach,” Setty said.