New Delhi:
State Bank of India (SBI), the nation’s largest bank, is set to open 400 new branches across the country in the financial year 2024-25.
This move is part of the bank’s broader network expansion strategy. In the previous financial year, SBI launched 137 new branches, including 59 in rural areas.
Last Friday, SBI’s shares fell by 0.88%, closing at Rs 836.40 on the BSE, reducing the company’s market capitalization to Rs 7.46 lakh crore.
Chairman’s Vision for SBI’s Branch Network
By March 2024, SBI aims to have increased its branch count from the current 22,542.
SBI Chairman Dinesh Khara emphasized the importance of branches despite the rise in digital transactions.
In an interview, Khara stated, “Someone asked me that with 89 percent digital and 98 percent transactions happening outside the branch, is there a need for branches now? My answer is yes. It is still necessary because new areas are emerging.”
He pointed out that branches are crucial for providing advisory and wealth services.
Khara added,
“We are identifying places where there is potential. We plan to open 400 new branches in those places in the current financial year.”
Monetization of Subsidiaries
Addressing the future of SBI’s subsidiary companies, Khara revealed plans for their expansion before going public.
“We will further expand their operations before listing them. Increasing their operations will increase the valuation and ensure better returns for the parent company SBI,” he said.
The monetization of these subsidiaries will be executed through the capital market to maximize their value.
