SBI to roll out new deposit product

To get into securitisation in a major way by June-July.

State Bank of India (SBI) will launch a new deposit product soon and also get into securitisation in a big way to mobilise resources, according to chairman Arun Kumar Purwar.

SBI will continue to look at acquisitions and a foray into pension business, whenever that sector is opened up, he added. The bank is expected to get into securitisation by June-July.

"Timing has been decided. Quantum can be decided depending on our requirements at that point of time," Purwar said.

Mutual funds, life insurers, credit card companies, general public, institutions, public funds, and pension funds are likely to be the buyers, he added.

The bank is also focusing on overseas acquisitions and new ventures. "We are also trying to get into specialised activities such as pension ventures. As soon as the pension market opens up we should be interested in setting up a venture," he added. The proposed pension foray will be through a subsidiary, he added.

Following the tax sops to fixed deposits under the Budget, the bank is considering to unveil a new product.

"We are developing some product and will release it shortly. We will have to assess the demand, market. But, I personally believe that there will definitely be improvement in resource mobilisation," Purwar said.

The product will be a five-year deposit, though the bank has not yet decided on the rate. "As soon as we fix the rate we will let you know," he said.

Although the pace of retail loan growth has raised many an eyebrow, Purwar said banks still have a long way to go as they have just tapped 20 per cent of the potential thus far.

"As far as retail lending""housing loans and commercial properties""is concerned, there has definitely been good growth. But, I personally believe that the retail lending or housing loan lending ... we have not met even 15-20 per cent of the total corpus still. There is huge market to be tapped," Purwar said.