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The State Bank of India (SBI) is planning to revamp its current and savings accounts (CASA), salary accounts and transaction banking businesses. In a bid to increase deposits, SBI is looking to to hire an external consultant to redesign strategy for these businesses.
“The bank with a intention to revamp its CA, SA, CSP and Transaction Banking Business intends to bring in consultancy support in the form of external consultant to benchmark the Bank’s product, processes, and performances vis-a-vis other competitors in the market for all these products viz., Current Account, SB accounts, CSP, Transaction Banking & CMP Products, and to identify gaps, define areas of improvement and opportunity for the Bank.” SBI’s recently released document said.
The bank plans to complete the exercise within 12 months of hiring the consultant, extendable by a year, if required.
The latest move by the SBI is being seen as an effort to secure more deposits amid rising competition. Currently, Indian banks are witnessing slower inflow of deposits and rising credit demand. Lenders are announcing short-term offers to lure in more deposits ahead of the festive season.
In its document, while defining scope of work for the consultant, the SBI acknowledged importance of efficient digitisation and the role of fintech firms in facilitating the same.
According to the document, the consultant will work with the bank to study and assess current technology solutions of the bank, re-design end-to-end digitisation, and digital solutions of bank across transaction banking and CMP products (on YONO-B/
CINB platform) and identify different fintech players for integration to provide necessary technology and data support for all digital development.
In its revamp effort, India’s largest bank is looking to leverage data. “The bank has vast amount of data that can be used for customer analytics.” the document read.
SBI’s deposits were up by 8.73 per cent YoY but down 0.14 per cent sequentially to Rs 40.45 trillion. Domestic CASA reported a 6.5 per cent YoY growth to Rs 17.67 trillion, taking the CASA ratio to 45.33.
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“On deposits we have been very mindful because currently our credit deposit ratio is somewhere around 63 per cent so we will like to see how best we can deploy our resources without really compromising on the NIMs,” SBI Chairman Dinesh Kumar Khara had said on August 6.
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