SBI to develop tool so that bank does not lose ground to rivals: Rajnish Kumar
, ET Bureau|
Updated: Nov 06, 2017, 03.35 PM IST
MUMBAI: State Bank of India (SBI) is working to create a tool that will enable the frontline staff the discretion in taking banking decisions without losing ground to the rivals in the banking industry. Speaking at a seminar, chairman Rajnish Kumar said, "So we are working on a tool where the discretion are available to protect the business going away to the competition and we should know the right price. But ultimately the call will have to taken on where the let the business go and where to protect our turf."
He was speaking at a banking seminar jointly organised by Indian Banks' Association and Ficci where he spoke about banker’s dilemma on pricing of loan versus controlling their market share. “In a competitive market when the concern comes about protecting the turf, than all signs of pricing vanishes. In an environment in India which is so competitive, running a business profitable is a huge task. So there has to be a tool available to front line employees to deal with this dilemma,” he said.
SBI chief said that very often the our credit committee will face is that if you don't do at this business at a particular price it will go away to other banks and that is when the questions of protecting turf arises.
Post merger of five associate banks with itself State Bank of India has emerged as the largest bank with 25% market share in advances and deposits market. Earlier speaking to ET he has said although the bank's market share will not up from here, but it will also not go down.
"Protecting the turf and meeting the challenge from all the new fintech that is coming so we have to be alert to this challenge. We cannot live in this comfort since we have such a huge market share or customer base... The biggest challenge will be to protect the turf and continue to remain a dominant player in India. We are readying ourselves for it," he had said.
He was speaking at a banking seminar jointly organised by Indian Banks' Association and Ficci where he spoke about banker’s dilemma on pricing of loan versus controlling their market share. “In a competitive market when the concern comes about protecting the turf, than all signs of pricing vanishes. In an environment in India which is so competitive, running a business profitable is a huge task. So there has to be a tool available to front line employees to deal with this dilemma,” he said.
SBI chief said that very often the our credit committee will face is that if you don't do at this business at a particular price it will go away to other banks and that is when the questions of protecting turf arises.
Post merger of five associate banks with itself State Bank of India has emerged as the largest bank with 25% market share in advances and deposits market. Earlier speaking to ET he has said although the bank's market share will not up from here, but it will also not go down.
"Protecting the turf and meeting the challenge from all the new fintech that is coming so we have to be alert to this challenge. We cannot live in this comfort since we have such a huge market share or customer base... The biggest challenge will be to protect the turf and continue to remain a dominant player in India. We are readying ourselves for it," he had said.
