According to a Livemint report that cited an internal document from the largest bank in the nation, the State Bank of India (SBI) may revamp its current and savings accounts (CASA), salary accounts, and transaction banking businesses.
SBI’s Managing Director (Retail Business and Operations), Ashish Kumar Choudhary, called it “a two-pronged strategy.” On August 6, Chaudhary said in a statement to analysts, “The first is to recruit new, valuable clients so that the bank may create new accounts, and the second is to improve its connection with existing customers.”
The report noted that the public sector organization will hire an outside consultant to rethink the strategy for these enterprises and cited the internal document that requested bids for the exercise. The consultant will collaborate on this with the various internal SBI teams and circle teams. After hiring the consultant, SBI hopes to have the project finished within a year. However, if more time is needed, the deadline may be extended by an additional year.
Before the forthcoming holiday season, some banks have offered limited-time deals on deposits in an effort to draw customers.
Banks traditionally favor low-cost CASA deposits; while interest is not paid on deposits made under current accounts, savings accounts do pay interest at a rate of less than 4%, which is significantly less than the 6% and higher offered by several banks on term deposits.