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SBI to focus on cost reduction, rationalisation to mitigate Covid-19 impact: Rajnish Kumar – The Economic Times

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Mumbai: State Bank of India (SBI) will focus on cost reduction, rationalization and reskilling of workforce and improve staff productivity by redeploying workforce from administration offices to sales roles as it mitigates the impact of the Covid 19 pandemic on its business, chairman Rajnish Kumar said in his address to shareholders.

India’s largest lender by assets and branch network plans to save Rs 1,000 crore through such cost optimization Kumar told shareholders at the bank’s 65th Annual General Meeting (AGM) which was held through video conferencing due to the pandemic.

“Bank will maintain a constant vigil on the emerging stress and take proactive action, to help our borrower customers and maintain asset quality…The Bank has stepped up its monitoring of all the projects under implementation and expects to tide over COVID impact in the short to medium term,” Kumar said.

The SBI chairman’s three year term ends later this year. He said that the fiscal 2021 will be a challenging year due to the Covid 19, however SBI’s strong liability franchise with a customer base of over 44 crores, diversified loan portfolio, digital banking channels and identified legacy stress will help it to navigate this period.

SBI will further scale up its YONO digital banking app and has set a target of doubling user registrations in the next six months with new additions on the platform like end to end home loans, pre-approved car loan and personal gold loans, Kumar said.

The bank ended fiscal 2020 witj a deposit growth of 11.34% to Rs 32.42 lakh crore from Rs 29.11 lakh crore a year earlier, increasing its market share by 46 basis points to 22.84%.

Total advances grew by 5.64% to Rs 24.23 lakh crore in fiscal 2020 from Rs 22.93 lakh crore a year earlier, led by a 15.40% growth in personal loans.



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