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SBI to launch new current & savings accounts in FY24
April 10, 2023
The State Bank of India (SBI) is planning to launch new variants of current account (with balances of ₹50,000 and ₹50 lakh) and “Parivar” (family) savings account in FY24 to minimise the gap between deposit growth and credit growth.
The new plans come in the wake of deposit growth lagging credit growth over the last few quarters.
Domestic deposits of India’s largest bank grew 8.86 per cent year-on-year (y-o-y) by the end of 2022, while domestic advances were up 16.91 per cent y-o-y.
SBI expects that its domestic deposits and domestic advances will grow about 12 per cent and 16 per cent y-o-y, respectively, in FY24.
The low proportion of low-cost current account (CA) deposits (5.6 per cent of the total domestic deposits of ₹40,48,149 crore by the end of December 2022) is a drag on the bank’s net interest margin (NIM).
As a result, growing the CA deposits has emerged as a clear actionable and focus area for the bank, Dinesh Kumar Khara, Chairman, said in an internal document seen by businessline.
To grow retail liabilities, the bank has placed more than 500 RMCAs (Relationship Managers for Current Accounts) in various Circles and launched CA product “Shubharambh” for start-ups.
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