Arun Shandilya: SBB) has a strong network of 860 branches. Of these, 698 branches are in Rajasthan which is the largest network among all banks operating in the state. Of these, 524 branches are located in rural and semi-urban areas, which play an important role in rural development and poverty alleviation in the state. Even in terms of number of customers, about 93% of them emanate from Rajasthan. The percentage of SBB) customers (both deposits and advances) is about 9.8% of total population and about 19% of the adult population of the state, which is the highest amongst all banks in Rajasthan. Over the last few years, the bank has made significant progress towards financial inclusion and providing services to hitherto un-banked population of the state.
What are the major changes observed in the pattern of savings, fixed deposits, loan taking, etc, over a period of time?
The interest rates have generally gone up in the financial system (barring the last six months when policy rates have been cut aggressively to combat the economic slowdown). As a result, there has been an increasing preference of our customers towards the term deposits which provides better return to depositors. Between March 2005 and March 2009, the share of term deposits in total deposits of the bank has gone up from 56.9% to 62.2%. The share of savings and current deposits has correspondingly gone down, although in quantitative terms, even CASA deposits have grown by over 80% between March 2005 and March 2009. Likewise in case of advances, over the last few years there has been substantial upscaling of advances in commercial and institutional (C&I) segment particularly by financing of infrastructure sector projects. Accordingly, the proportionate share of C&I segment in total advances has gone up from 36.1% in March 2005 to about 50.4% in March 2009. The share of personal segment and small scale industries has correspondingly gone down, although in quantitative terms advances to these segments too have gone up significantly over the last few years.
Is the NRls' contribution in your bank increasing'? \\ hat is the percentage of the NRls' clientele?
The bank has a customer base of nearly 70,000 NRls. The deposits from NRls have increased from Rs 637 crore in March 2005 to Rs 813 crore in March 2009.
What are the major projects currently at ')BBF
SBB) is amongst the first few public sector banks in the country with all branches on core banking. One of the major projects at hand is to optimize the usage of technology to offer value added services to customers. Amongst the major objective is to migrate more and more customers towards alternate delivery channels particularly internet banking and ATMs. The bank is also implementing BPR exercise whereby most of the bank office functions are being centralized so that branches can focus more on improving customer service, sales and marketing. We are endeavoring to boost non-interest income by cross selling life and non-life insurance, mutual funds and credit cards, besides expanding the coverage of online share trading facility launched during 2008-09.
How does your bank compete with other banks, especiallv cooperative banks, in the statl?
AU branches are on core banking solution and the bank has satellite connectivity even in the remotest corner of the state. Today SBB) offers multiple products and delivery channels which include internet banking at all branches, online funds transfer, B2B payments, utility and other biH payments, online tax payments, railway freight payments, etc. The bank has about 500 ATMs which are connected to State Bank group ATM network. Overall, SBB) is far ahead in terms of network, business size and technology particularly compared to cooperative banks in the state.
Can you explain the strategy of business growth and expansion plans of your bank? What are the targets for 2009-1 O?
Notwithstanding the global economic slowdown, SBB) has maintained a healthy growth in business and profitability in 2008-09 with net profit growth of 28.1%. For the year 200910, the bank is targeting a business growth of Rs 18,600 crore, as against the growth of Rs 9,885 crore in 2008-09. For the purpose, special emphasis is being laid on the retail segment, particularly agriculture, housing, education and SMEs. Branch expansion shaH also be pursued Vigorously keeping in view the potential at select centers.
What are the major changes observed in the pattern of savings, fixed deposits, loan taking, etc, over a period of time?
The interest rates have generally gone up in the financial system (barring the last six months when policy rates have been cut aggressively to combat the economic slowdown). As a result, there has been an increasing preference of our customers towards the term deposits which provides better return to depositors. Between March 2005 and March 2009, the share of term deposits in total deposits of the bank has gone up from 56.9% to 62.2%. The share of savings and current deposits has correspondingly gone down, although in quantitative terms, even CASA deposits have grown by over 80% between March 2005 and March 2009. Likewise in case of advances, over the last few years there has been substantial upscaling of advances in commercial and institutional (C&I) segment particularly by financing of infrastructure sector projects. Accordingly, the proportionate share of C&I segment in total advances has gone up from 36.1% in March 2005 to about 50.4% in March 2009. The share of personal segment and small scale industries has correspondingly gone down, although in quantitative terms advances to these segments too have gone up significantly over the last few years.
Is the NRls' contribution in your bank increasing'? \\ hat is the percentage of the NRls' clientele?
The bank has a customer base of nearly 70,000 NRls. The deposits from NRls have increased from Rs 637 crore in March 2005 to Rs 813 crore in March 2009.
What are the major projects currently at ')BBF
SBB) is amongst the first few public sector banks in the country with all branches on core banking. One of the major projects at hand is to optimize the usage of technology to offer value added services to customers. Amongst the major objective is to migrate more and more customers towards alternate delivery channels particularly internet banking and ATMs. The bank is also implementing BPR exercise whereby most of the bank office functions are being centralized so that branches can focus more on improving customer service, sales and marketing. We are endeavoring to boost non-interest income by cross selling life and non-life insurance, mutual funds and credit cards, besides expanding the coverage of online share trading facility launched during 2008-09.
How does your bank compete with other banks, especiallv cooperative banks, in the statl?
AU branches are on core banking solution and the bank has satellite connectivity even in the remotest corner of the state. Today SBB) offers multiple products and delivery channels which include internet banking at all branches, online funds transfer, B2B payments, utility and other biH payments, online tax payments, railway freight payments, etc. The bank has about 500 ATMs which are connected to State Bank group ATM network. Overall, SBB) is far ahead in terms of network, business size and technology particularly compared to cooperative banks in the state.
Can you explain the strategy of business growth and expansion plans of your bank? What are the targets for 2009-1 O?
Notwithstanding the global economic slowdown, SBB) has maintained a healthy growth in business and profitability in 2008-09 with net profit growth of 28.1%. For the year 200910, the bank is targeting a business growth of Rs 18,600 crore, as against the growth of Rs 9,885 crore in 2008-09. For the purpose, special emphasis is being laid on the retail segment, particularly agriculture, housing, education and SMEs. Branch expansion shaH also be pursued Vigorously keeping in view the potential at select centers.
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