India’s TOP 500 Companies 2020

INDIA’S TOP 500 COMPANIES 2020 119 Experts’ View cut rates on fresh loans by 91 basis points, the fastest transmission ever recorded. SBI has cut by an equivalent 115 basis points on its Repo linked product. Overall, the financing conditions have eased considerably after the rate cut. However, the businesses must feel confident for significant credit growth, and the overhang of COVID will remain for some time at least. The Indian banking sector is poised for consolidation. Growth prospects for the banking sector will be moderate as credit growth depends on how the economy is faring to achieve a brisk pace. Rapid technological change is also causing disruptions, and banks have to make investments in these areas, and the returns on these investments will be visible only after some time. How has SBI responded to the disruption caused by the ongoing pandemic? What is your strategy to tide over this crisis? In the past few years, SBI has given a massive push to the digital infrastructure. We have 76.3 million internet banking users, 17.4 million mobile banking users, 58882 ATMs/CDMs/ ADWMs, 62,259 baking correspondent outlets, and 22,135 branches. By employing the digital infrastructure, despite having limited branch timings, we have been able to meet all our customers’ needs. We have adopted digital whole-heartedly by implementing work from anywhere policy, and going forward, giving more push to digital will be our strategy to keep our business running smoothly. What are the key business initiatives taken by SBI in the past few years that have led to the bank’s success? Realizing the potential of the personal loan segment, SBI has aggressively improved its focus in this area, and it has paid rich dividends. We have adopted digital strategies, catering specifically to the retail segment, which has helped us improve our business. Our target group for personal loans has been defense personnel, government employees, and corporate salary accounts. The portfolio is very robust, as demonstrated by a lower number of customers opting for a moratorium. For SMEs, Project Vivek heralded a paradigm shift in SBI’s appraisal system from traditional balance sheet based funding, to a more objective appraisal system. It is a promising initiative launched by the State Bank of India to implement a new Credit Underwriting Engine (CUE) for the SME segment, thereby bringing objectivity in better risk assessment. Moreover, it reduces TAT, resulting in better customer experience. How has SBI leveraged technology in providing superior consumer experience? What are the innovative techniques used by SBI that give you an edge over others? YONO is designed using four fundamental principles, i.e., Customer centricity, Omnichannel experience, Reimagine journeys, and complete safety. Some key innovative strategies that have enabled us to deliver a seamless experience: • Full-fledged digital banking proposition: We are now offering a full suite of banking services through the YONO platform to migrate customers to digital proposition and drive significant productivity growth. • Building an integrated digital ecosystem: We have created an integrated platform that caters to the banking and lifestyle needs of the customer. At YONO, we’re achieving this through the online marketplace with 80+ merchants across retail, health & wellness, education, entertainment, etc. • Launch innovative products: We have launched multiple products that cater to the customers’ needs in the current situation. E.g., Special personal loans with paperless instant disbursal to meet emergency funding needs of customers, Instant account opening to enable customers to open accounts, and access the full suite of services through YONO, etc. • Increased agility: Customers want to be able to do more from home, and institutions have to respond. We have launched customer-relevant journeys like Insta account opening, special pre-approved personal loans, and insurance renewal through the YONO app. • Personalized offerings: YONO offers personalized recommendations like which funds to invest in, which insurance to purchase, on-demand loan offerings. • Shifted reliance from branches to digital: We have increased focus from branch-based transactions and sales to digital marketing through emails, push notifications and social media targeting for relevant customer segments A few other technology-driven Digital transformation initiatives that are under focus by our bank are: • Leveraging Artificial intelligence (AI) and Machine Learning, including natural language processing, for our Cheque Clearing Operations. • Enable end-to-end digital onboarding loans and liabilities by identifying potential partner Fin- Techs in various categories such as payments, onboarding, credit underwriting, and collections. • Shifting a higher share of our marketing budget to digital acquisition. Dun & Bradstreet