Indian banks must continue to innovate, boost efficiency: Finance Minister

Indian banks must continue to innovate and enhance operational efficiency to provide personalised services in a highly-competitive business environment, Union finance minister Nirmala Sitharaman said on Saturday.

 

Sitharaman was speaking at the launch of the Platinum Jubilee Celebrations for the Foundation Day of State Bank of India (SBI) in Mumbai. 

“With a surge in tech-savvy customers, there is an increasing demand for innovative, personalised and on-the-go banking experiences. Furthermore, strict regulatory compliance and the entry of new banks and non-bank entities have presented both challenges and opportunities to established players,” she added. 

The finance minister virtually inaugurated 70 branches across India, 501 women customer service points, coinciding with the International Women's Day and also launched 17 corporate social responsibility (CSR) initiatives of the country’s largest lender.

“As we celebrate this Platinum Jubilee, let us also look to the future. The world is changing rapidly, and the banking sector must continue to innovate and also to lead.” The number of banking service providers are on the rise. The customer base is expanding with India's favourable demographics (at median age 28) and growing aspirations, she observed. 

SBI has continuously evolved to meet the changing landscape. Despite recent disruptions and regulatory tightening, the bank has retained its position as a market leader, earning the trust of millions in a lower to middle-income economy. 

The country’s largest lender is reinventing its personal distribution channels to align with evolving customer expectations. As the largest commercial bank in the world's most populous nation, SBI is catering to about 5.6 per cent of the global population, Sitharaman said.

 

Unlike many organisations that resist change, SBI has embraced it. It has bolstered its infrastructure, established a robust monitoring and control framework, and built a talent pool of committed professionals. Additionally, the bank has re-engineered its internal processes to improve risk management and accelerate growth velocity.