SBI: Good news for depositors! SBI to implement new investment scheme
NEWS18 | October 1, 2024 11:12 AM CST
With an aim to attract more depositors, especially Zen Z, State Bank of India (SBI) has moved to innovate existing investments by combining Fixed Deposits (RD) and Systematic Investments (SIP), SBI Chairman Sethi said.
With an aim to attract more depositors, especially Zen Z, State Bank of India (SBI) has moved to innovate existing investments by combining Fixed Deposits (RD) and Systematic Investments (SIP), SBI Chairman Sethi said.In an interview to PTI, he said, “We are trying to innovate some traditional products like recurring deposits, which is actually a traditional SIP. Perhaps, we can combine both Fixed Deposit or Recurring Deposit and SIP, a combo product that can be accessed digitally”. Such a move aims to popularize deposit products among Gen Z, said Challa Srinivasalu Setty.Day by day consumers are becoming more financially conscious and are paying attention to new investment tools. People are giving more importance to asset allocation and looking for better value in their investments. “Obviously, no one wants to invest in risky assets or speculative assets. Banking products are always part of the basket. So, we are trying to come up with products that appeal to them," the SBI chairman said, PTI reported.Besides innovating a mix of old and new products, SBI has also undertaken a large-scale outreach program to increase deposit mobilization. SBI "doesn't like to fight in a rate war", he said, hinting that the bank's focus remains on offering balanced interest rates and superior customer service.Making rapid strides in the digital economy, SBI has released 50 per cent of its fixed deposits through digital channels. Further, the bank is opening 50,000 to 60,000 savings accounts every day, most of which are going digital, he said.SBI is eyeing to become the first Indian financial institution to achieve the ₹ 1 lakh crore net profit milestone in the next 3 to 5 years. In FY-24, the bank recorded a standalone net profit of ₹61,077 crore, a growth of 21.59 per cent, he said.We have the potential, certainly we have strived to become the first company in India to register a milestone of ₹ 1 lakh crore net profit in the next 3 to 5 years. In addition, SBI has a strong corporate loan pipeline, with an outstanding loan of ₹ 4 lakh crore from India Inc. The bank expects private sector capital spending to increase in the second half of the financial year, PTI reported.
