FD-SIP combos: How State Bank Of India is looking to attract Gen Z, SBI Chairman Setty says ‘ ₹1 lakh crore in…’

With an aim to attract more depositors, especially the Gen Z, the State Bank of India(SBI) is looking to innovate existing products by combining fixed deposits and SIPs, SBI Chairman Setty told PTI in an interview.

“We are trying to bring innovation in some of the conventional products like recurring deposit, which is actually a conventional SIP...Maybe, we can combine both fixed deposit/recurring deposit and SIP, a combo product that could be digitally accessible,” the SBI Chairman told PTI. Such a move is aimed at popularising the deposit products among the Gen Z, further added Challa Sreenivasalu Setty.

‘Products which will appeal to them’

Setty said that day by day, customers are becoming financially more aware and demanding, with an eye for innovative investment instruments. They are giving more importance to asset allocation, and are seeking value in their investments.

“Obviously, nobody wants to put everything in a risky asset or a speculative asset...banking products will always be part of the basket. So, we are trying to bring products which will appeal to them,” the SBI chairman said, reported PTI.

'..not fight the rate war'

Besides innovating a mix of old and new products, SBI has also undertaken a large-scale outreach programme to boost deposit mobilisation. He stated that SBI "would not like to fight in the rate war," hinting that the bank's focus remains on offering balanced interest rates and superior customer service.

Making rapid strides in digital economy, SBI has issued 50 per cent of its fixed deposits through digital channels. In addition, the bank is opening 50,000 to 60,000 savings accounts daily, many of which are processed digitally.

SBI has further set its eye on becoming the first Indian financial institution to achieve a net profit milestone of ₹1 lakh crore within the next 3-5 years. In FY24, the bank posted a standalone net profit of ₹61,077 crore, clocking a 21.59 per cent growth. Looking ahead, Setty told PTI, "We have potential. Definitely, we would like to be the first company in India to reach that milestone."

In addition, the SBI also has a strong corporate loan pipeline, with ₹4 lakh crore in pending credit from India Inc. The bank expects private sector capital expenditure to pick up in the second half of the fiscal year, reported PTI.