“We are anticipating a 14% to 16% credit growth this year. Even at 8% to 10% deposit growth at our large base the absolute number will be similar to the credit. Yes some amount of investable surplus is going to other asset classes but we are getting into a rate war (for deposits) rather we will use our service quality and bank branches to get deposits,” Setty said.
He acknowledged that some amount of “tweaking” in deposit rates will happen especially in the one to two year bucket. “Competition for deposits is likely to continue for some time,” he said while speaking on the third day of the Global Fintech Fest (GFF).
Setty who took over as chairman two days earlier said that corporate credit growth continues to be robust at 15% to 16% and SBI has a pipeline of Rs 4 lakh crore of sanctions and disbursements.
“Companies are funding their brownfield expansion by their own cash but we are also seeing people from the core sectors talking about expansion. Renewables and roads are also doing well. Private capital investment will come back,” Setty said.
He said SBI is working on a five year roadmap focussing on technology and technological resiliance. He said the bank intends to upgrade its YONO app to ensure customers can start transactions from any of its platforms–branches, YONO or internet and complete it on any other platform.”We are currenly doing a deep reorcastration of our IT platform to improve scalibility, resilience and cyber security. It will also focus on new to bank customers,” Setty said.The phase one of the YONO app reorganisation will be completed and tested to a closed user group in November, he said.
SBI is the largest bank with India with more than 50 crore customers, 22,500 branches and also processing 35% of UPI payments.
“We need to see liability being scalled up through digital banking channels just like the success we have seen on our asset side as many customers are opening accounts through features like video KYC,” Setty said.
