Sbi News update:
As part of its network expansion plan, the State Bank of India (SBI) intends to open 400 branches across the country in the current financial year. Last fiscal year, the country’s largest lender opened 137 branches, including 59 new rural branches. SBI Chairman Dinesh Kumar Khara addressed concerns about the necessity of physical branches given that 89 percent of digital transactions and 98 percent of overall transactions occur outside branches. He affirmed the continued need for branches, especially in emerging areas.
“There are certain services, such as most advisory and wealth services, that can only be offered from branches,” Khara explained in an interview with PTI. “We will identify locations with opportunities and plan to open branches there. We aim to add almost 400 branches this year.” As of March 2024, the bank’s network includes 22,542 branches nationwide.
Regarding the monetization of subsidiaries, Khara stated that the bank would wait for these subsidiaries to scale up their operations before considering listing them to increase their valuation and ensure better returns for the parent bank. “Monetization would be through the capital market,” Khara noted, mentioning that the bank General and potentially SBI Payment Services could be eligible for this route, but not in the current financial year.
During the year ended March 2024, the bank infused additional capital of ₹489.67 crore into SBI General Insurance Company Ltd, leading to a slight decrease in the bank’s stake from 69.95 percent to 69.11 percent. the bank General Insurance reported a 30.4 percent rise in net profit to ₹240 crore for the fiscal year ended March 2024, up from ₹184 crore the previous year.
SBI Payment Services Pvt Ltd, in the merchant acquiring business, is 74 percent owned by the bank, with the remaining stake held by Hitachi Payment Services. As of March 2024, SBI Payments is one of the largest acquirers in the country, with over 33.10 lakh merchant payment acceptance touchpoints, including 13.67 lakh POS machines. However, its net profit declined to ₹144.36 crore for the year ended March 2024, down from ₹159.34 crore the previous year.
