 "Time ripe for further transformation to make bank future-ready: SBI chief")
With enhanced capacity to operate in a tough operating environment, the time was ripe for State Bank of India to engage in transformation, especially in digital banking for emerging opportunities, said the bank's chairman Dinesh Khara in a communication to shareholders in the annual report for 2021-22.
The state-owned lender will scale up partnerships with fintech firms and finance companies to increase penetration and reach. It would also intensify efforts for lending to sectors covered by Production Linked Incentive (PLI) schemes, electric mobility, said Khara.
"Overall, FY22 has been a much better year compared to the year before (FY21). The pace of economic activity has picked up and the momentum is expected to continue," he said . The bank’s annual general meeting will be held on June 22, 2022.
FY22 was not without its share of surprises. The outbreak of hostilities between Ukraine and Russia towards the end of FY22 has severely affected the global economic landscape.
A look at the bank's financial performance in the past few years showed discernible improvement on all parameters. Thus, despite the challenges posed by the operating environment, the bank had better loss-absorbing capability, said Khara.
"The bank’s risk management practices have delivered better results, especially in containing the slippages. The time is, therefore, opportune to undertake the much-needed transformation with an eye on emerging trends in banking, especially in India," he added.
The bank will continue to accelerate its digital agenda both in front and back offices. The scope and reach of its Super App SBI YONO would be expanded further and with enhanced user experience, said Khara.
Also Read
In business operations, the lender will leverage advanced analytics for deeper insights on internal data and its best possible usage. Mutually beneficial partnerships with fintech firms and finance companies will be explored further to increase penetration and reach, he added.
SBI is comfortably placed in terms of growth capital in the current year. Opportunities for lending in promising sectors such as sectors identified under PLI scheme and renewables as well as electric mobility will be explored to diversify the portfolio, said Khara.
"Despite the economic headwinds, the bank has adapted well to the challenges posed by the operating environment. Hence, the performance achieved in FY22 will show further improvement in FY23."