SBI Set To Launch Innovative Products To Boost Deposit Growth: Chairman

The State Bank of India (SBI) is set to introduce a new financial product aimed at investors seeking high returns without risk. The service is designed to boost the bank’s deposits by offering higher interest rates to attract depositors. According to SBI Chairman CS Shetty, the upcoming product will be a blend of Recurring Deposits (RD) and Systematic Investment Plans (SIPs), providing an opportunity for depositors to earn significant returns, similar to those seen in the stock market. Shetty also highlighted that as the economy grows, customers are becoming more financially aware and are demanding better returns on their investments. In response to this, the bank is considering launching innovative products like the RD-SIP combination to meet the changing needs of investors.

CS Shetty emphasised that today’s customers are increasingly focused on the value proposition of financial products. With rising financial literacy, the importance of asset allocation is becoming more pronounced. Investors are wary of placing all their funds in risky assets, preferring a balanced approach. As a result, banking products will continue to play a crucial role in their investment strategies. To address this shift, SBI is working on developing innovative products that appeal to these evolving preferences, ensuring that they meet the diverse needs of investors.

He said, “We are trying to bring innovation in some traditional products like recurring deposit, which is actually a traditional SIP. Maybe, we can give a combined product by combining both fixed deposit/recurring deposit and SIP which can be accessible digitally. The bank is considering these innovations to popularise deposit products among the new generation.”

Shetty mentioned that SBI has initiated a comprehensive outreach program aimed at boosting deposit growth. The bank is focusing on digital processes, with around 50% of fixed deposits (FDs) now being opened online. SBI is successfully opening 50,000 to 60,000 savings accounts daily across the country, with a significant portion of these accounts also created through digital channels. He noted that investments in the upcoming products from SBI will also be facilitated digitally, reflecting the bank’s commitment to enhancing convenience and accessibility for its customers.