 "State Bank of India plans to open 300-400 branches a year in medium term")
State Bank of India (SBI), the country’s largest lender, plans to add 300-400 branches annually to its existing network in the medium term to increase penetration of financial services in the country, the bank’s Chairman C S Setty said on Monday.
He said a large number of residential colonies are coming up in India and are in need of branches. The bank did an extensive micro market survey this year (FY25) to find out areas, which are yet to be covered. That is how 500 branches number came into picture, Setty said on the sidelines of the 11th SBI Banking and Economics Conclave 2024 held in Mumbai.
He said that there is also a possibility that some of the branches that were opened earlier and are not making progress may be relocated.
Another bank executive said while there is freedom in urban areas to open and close branches depending on requirements, in rural and semi-urban areas, banks have to keep in mind aspects like access to financial services and priority sector lending.
SBI branch count stood at 22,640 at the end of September 2024, up from 15,870 in March 2014.
Referring to SBI’s standing amongst banks in the world, the SBI chairman said the bank is currently at the 17th position in terms of market capitalisation worldwide and would like to be among the top 10 in three years.
State Bank of India’s market capitalisation is Rs 7.26 trillion ($ 86 billion) and the country’s largest private lender HDFC Bank market capital was Rs 13.06 trillion ($ 154 billion), according to BSE data.
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Market capitalisation is very important because investors have to keep in mind valuation. The higher market capitalisation will increase the investor base. The diversified investor will come and look at the stock, helping in capital raising exercise. The focus is on delivering consistent performance on various parameters including profitability, he added. Bank has said that while it aspires for Rs 1 trillion of annual net profit, it is working to report Rs 1 trillion of operating profit this year.
Meanwhile, SBI culminated the centennial celebration of its main branch in Mumbai. The bank operates 63,000+ ATMs, engages 80,300 banking correspondents, and serves over 500 crore customers.