'We are not getting into a war for deposits': SBI’s CS Setty acknowledges the heat but stays firm

State Bank of India (SBI) Chairman, CS Setty, made it clear that the bank, despite the competition, has no intention of engaging in a "rate war" to attract deposits. 

"Even with a modest 8% to 10% growth in deposits, our large base ensures it will match the anticipated 14% to 16% credit growth this year," Setty said at the Global Fintech Fest. 

Instead of aggressive rate hikes, SBI plans to leverage its extensive branch network and service quality to attract deposits, though some minor adjustments in deposit rates are expected.

Setty, who recently assumed the role of chairman, acknowledged the ongoing competition for deposits but remains confident in SBI's robust deposit base. He also highlighted the bank’s strong corporate credit growth, noting a 15% to 16% increase, with a pipeline of ₹4 lakh crore in sanctions and disbursements. "We are seeing positive trends in core sectors like renewables and infrastructure, and private capital investment is expected to pick up," he added.

SBI’s Managing Director Ashwini Kumar Tewari also stressed on the importance of innovation in raising deposits. Speaking on the same occasion, Tewari noted, "As the equity markets correct over time, we anticipate that some of the funds that moved away from banks will return." He mentioned that SBI is actively focusing on segments like trusts, societies, hospitals, and the base of the pyramid, areas that had not received as much attention previously. Tewari also pointed out that the bank is now more aggressively targeting small-ticket deposits, moving beyond digital efforts to deploy outbound teams specifically for deposit mobilization.

Looking forward, Setty discussed SBI's five-year roadmap, which focuses on technological advancements and resilience. The bank plans to upgrade its YONO app, allowing seamless transactions across various platforms, and is currently overhauling its IT infrastructure to enhance scalability and cybersecurity. The first phase of the YONO revamp will be tested with a select user group in November. "We aim to scale up liabilities through digital banking channels, similar to the success we've seen on the asset side," Setty said.