FD-SIP combos: How State Bank Of India is ensuring to gain Gen Z, SBI Chairman Setty says ‘ ₹1 lakh crore in…’

State Bank of India (SBI) is working on attracting more depositors, particularly Gen Z, by introducing innovative products that combine fixed deposits and SIPs (Systematic Investment Plans), according to Chairman Challa Sreenivasalu Setty in an interview with PTI. He mentioned that the bank is exploring a combo product that merges fixed or recurring deposits with SIPs, making it easily accessible through digital platforms. This initiative aims to modernise deposit products and make them more appealing to younger customers.

Setty noted that today’s customers are increasingly financially savvy, with a focus on asset allocation and seeking value in their investments. While they don’t want to put everything into high-risk assets, banking products will always play a role in their investment portfolios. SBI is therefore aiming to offer products that resonate with these preferences.

Additionally, while SBI is not engaging in a “rate war” to attract deposits, it is focusing on balanced interest rates and strong customer service. The bank has also made significant strides in digital banking, with 50% of its fixed deposits now being processed online, and it is opening 50,000 to 60,000 savings accounts per day, many through digital means.

SBI has set an ambitious goal of becoming the first Indian financial institution to achieve a net profit of ₹1 lakh crore within the next 3-5 years. For FY24, it reported a standalone net profit of ₹61,077 crore, marking a 21.59% growth. The bank also has a corporate loan pipeline of ₹4 lakh crore and expects private sector capital expenditure to increase in the latter half of the fiscal year.