SBI Targets India's Rich, 2,000 Executives Deployed to Attract Wealthy Customers

State Bank of India, India's largest state-owned lender, is ramping up its wealth management efforts in response to the growing number of affluent people in the country.

Chairman Dinesh Khara said that the bank's existing wealth management unit is outdated and requires a new approach, as per a Bloomberg report. The state-owned bank is planning to deploy nearly 2,000 executives as relationship managers and strengthen ties with smaller businesses nationwide.

At 9:41 am, the shares of the state-owned bank were trading at Rs 821 price level, up by 1.2 per cent on the National Stock Exchange.

In response to a question about potential collaborations with other wealth managers, Chairman Dinesh Khara stated, “We manufacture all the products in the financial sector and have the largest distribution network.” “We should be in a position to reach out the product to the customers,” he added.

With over 22,500 branches across the country, SBI is positioning itself alongside global and domestic competitors to capture a share of the nation’s expanding affluent class. In 2023, India saw a historic surge in new financial wealth, totaling nearly $590 billion, as per a report by Boston Consulting Group.

The banking firm will now compete with global entities such as HSBC Holdings Plc and Barclays Plc, as well as established local firms like 360 One WAM Ltd., all of which are expanding their offerings and teams to cater to India's affluent population. Private banks like ICICI Bank Ltd. and Axis Bank Ltd. have also entered the country's wealth management space, further intensifying the competition.

Last week, SBI reported a minor increase in its standalone net profit at Rs 17,035 crore for the quarter ending June.

On year-to-date basis, the shares of SBI have surged by nearly 28 per cent on the National Stock Exchange.