Kolkata: State Bank of India has decided to enter a new line of business in the coming fiscal, that of providing point of sales (POS) terminals to merchant establishments for debit card transactions.
A top official of SBI said on Friday that POS terminals had a good business potential, particularly due to the increase in cashless transactions at merchant establishments.
By providing such card swiping instruments, the bank would be able to earn a commission from the transactions entered into by various debit card holders across the country.
A number of leading private sector banks have already entered into this business activity.
Talking about new business initiatives taken by the public sector lender, the official said that the bank, which had already entered the life insurance business, has shortlisted three overseas firms for partnership in the proposed non-life venture.
The selection of the partner for the proposed venture would be done shortly, the official said, He added that SBI would start non-life business the next financial year.
The country’s largest lender is also mulling to start mobile banking services for its customers.
Asked whether the bank would go ahead with its proposed rights issue because of the current volatility in the stock markets, the official said that SBI would not defer it.
Regarding the Bengal circle, the official said that during 2008-09, the bank plans to add 100 branches from the present levels of 854.
To focus on the rural sector, the bank had already floated rural credit processing centre for faster delivery of loans. By March 2010, the bank plans to set up 1,100 ATMs across the Bengal circle.