State Bank of India (SBI), the largest lender in the country, is giving its wealth management business a renewed push amid a surge in the number of affluent individuals in India. Chairman Dinesh Khara announced in earnings call that SBI is deploying about 2,000 executives as relationship managers, focusing on partnerships with smaller companies nationwide. This move comes as SBI aims to improve its approach to the wealth management sector.
SBI’s wealth management unit is considered “old,” according to Khara.
“We manufacture all the products in the financial sector and have the largest distribution network. We should be in a position to reach out the product to the customers,” Khara said. However, he declined to disclose the bank’s current assets under management.
The bank, which operates over 22,500 branches across India, is entering a competitive field of global and domestic players targeting India’s growing wealth. A recent report by the Boston Consulting Group indicates that India generated approximately $590 billion in new financial wealth in 2023, marking its largest historical increase.
In its expansion efforts, SBI will face competition from global entities such as HSBC Holdings Plc and Barclays Plc, as well as local firms like 360 One WAM Ltd. The wealth management market in India is also seeing increased activity from private lenders, including ICICI Bank Ltd. and Axis Bank Ltd.
For the quarter ended June 30, 2024, SBI reported a standalone net profit of Rs 17,035 crore, representing a 0.9% increase over the Rs 16,884.29 crore reported in the same period the previous year. This figure exceeded the estimated Rs 16,786 crore by analysts. Additionally, the bank’s net interest income (NII) for Q1FY25 was Rs 41,125 crore, a 5.71% rise from Rs 38,905 crore in Q1FY24.
(With inputs from agencies)
