SBI is planning to launch new variants of the current a/c (with balances of ₹50,000 and ₹50 lakh) and the “Parivar” (family) savings a/c in FY24.

The State Bank of India (SBI) is planning to launch new variants of current account (with balances of ₹50,000 and ₹50 lakh) and “Parivar” (family) savings account in FY24 to minimise the gap between deposit growth and credit growth.

* The new plans come in the wake of deposit growth lagging credit growth over the last few quarters.

* Domestic deposits of India’s largest bank grew 8.86 per cent year-on-year (y-o-y) by the end of 2022, while domestic advances were up 16.91 per cent y-o-y.

* SBI expects that its domestic deposits and domestic advances will grow about 12 per cent and 16 per cent y-o-y, respectively, in FY24.

* The low proportion of low-cost current account (CA) deposits (5.6 per cent of the total domestic deposits of ₹40,48,149 crore by the end of December 2022) is a drag on the bank’s net interest margin (NIM).

* As a result, growing the CA deposits has emerged as a clear actionable and focus area for the bank, Dinesh Kumar Khara, Chairman, said in an internal document seen by businessline.

* To grow retail liabilities, the bank has placed more than 500 RMCAs (Relationship Managers for Current Accounts) in various Circles and launched CA product “Shubharambh” for start-ups.

Source : The Hindu Businessline