SBI to focus on retail, fee-based income
By Our Banking Bureau | 31 Oct 2001
Mumbai: Indias largest commercial bank, the State Bank of India (SBI), proposes to focus on retail- and fee-based income as part of its broad-business strategy. Speaking to press persons, SBI chairman Janki Ballabh said: Retail will be a thrust area. More so, given that it is not so interest-rate sensitive, and the spreads too are better.
Retail banking is critical to the SBI, considering the spread factor. Housing finance will form a key component in the banks retail strategy. The growth of the banks housing loan portfolio was Rs 1,106 crore in the first half of this fiscal as against the Rs 758 crore in the corresponding period last year.
We are offering a host of services like refinance, floating and fixed-rate loans. Many customers who had availed of finance at higher interest rates can have their loans refinanced at cheaper rates now, Ballabh said.
On the fee-based income side, Ballabh said cash management would form a key component part now that corporate India is very much into managing its funds in a very scientific manner.
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