Now is the time for further transformation to prepare for the future of the bank, says SBI chief

With increased ability to operate in a challenging operating environment, the time was ripe for State Bank of India to embark on transformation, especially in digital banking for emerging opportunities, said bank chairman Dinesh Khara, in a communication to shareholders in the annual report for 2021. -22.

The public lender will intensify its partnerships with fintech companies and finance companies to increase penetration and reach. It would also intensify lending efforts to sectors covered by production-linked incentive programs (PLIs), electric mobility, Khara said.

“Overall, FY22 was a much better year than the year before (FY21). The pace of economic activity has picked up and the momentum is expected to continue,” he said. he declares. 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 severely affected the global economic landscape.

A look at the bank’s financial performance over the past few years showed a noticeable improvement on all metrics. So, despite the challenges posed by the operating environment, the bank had better loss-absorbing capacity, Khara said.

“The bank’s risk management practices have yielded better results, particularly in containing slippages. Therefore, now is an opportune time to undertake much-needed transformation by keeping an eye on emerging trends in banking, particularly in India. “, he added.

The bank will continue to accelerate its digital agenda both front and back office. The scope and reach of its SBI YONO Super App would be further expanded and with an improved user experience, Khara said.

In business operations, the lender will leverage advanced analytics to gain deeper insights into internal data and its best possible use. Mutually beneficial partnerships with fintech companies and financial firms will be further explored to increase penetration and reach, he added.

SBI is comfortably placed in terms of growth capital for the current year. Lending opportunities in promising sectors such as the sectors identified under the PLI program and renewable energy as well as electric mobility will be explored to diversify the portfolio, Khara said.

“Despite the economic headwinds, the bank has adapted well to the challenges posed by the operating environment. As a result, the performance achieved in FY22 will show further improvement in FY23.”