Feeling the pinch of competition, the largest public sector bank in India is aggressively trying to come up with innovative schemes in order to hold on to its market share.
State
Bank of India (SBI), the biggest and the largest public
sector bank of India, since its establishment in 1951
has done a lot towards the development of the country.
SBI has established a wide reach all over India with its
9,034 branches and a market share of over 20%. The bank
is consistently trying to increase its hold in the
retail and wholesale market by entering into businesses
like credit cards, insurance, brokerage, gold, etc.
Recently, it has started cross-selling insurance
products, and also focusing on the most profitable home
loan business.
In
order to move with the time, SBI has fully computerized
3,345 branches, and has also deployed 1,163 ATMs.
Despite its wide network, SBI could not capitalize on it
in capturing the retail market of the
post-liberalization era. Having realized the need of the
hour, the bank is now trying to increase its presence in
the retail business by employing new and innovative
schemes.
SBI
is one of the most profitable banks in India. It is on
the way of creating a niche for itself in the banking
sector, and this may be justified by analysis of its
financial statement. The net profit of the bank has
increased to Rs.2,367.45cr for the 9-month period ended
December 31, 2002 from Rs.1,815.93 cr for the 9-month
period ended December 31, 2001, registering a growth of
30.37%.The operating profit of the bank has also given a
good picture with a growth of 23.74%.
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