The State Bank of India (SBI) will pursue an aggressive strategy by offering more number of digital products and strengthening the Business Correspondents Model to take on the competition from new banking and other entities, its chief said here on Saturday.
Participating at an interaction organised by the Indian Chamber of Commerce, SBI chairperson Arundhati Bhattacharya said the country's largest bank has to step up its aggressiveness as competition will "hot up", with the country metamorphosing from being unbanked to properly banked.
"With the country moving from being unbanked to properly banked, competition will hot up. And so it is better to go on the offence," she said.
A number of payment banks, small finance banks and foreign banks together will intensify the competition in the sector, she said.
"We will adopt an aggressive strategy. We will come up with more digital products and strengthen the Business Correspondents' Model," she said.
Bhattacharya said stringent regulatory conditions around the world were affecting banks which are unable to help weaker entities, who remain out of the formal banking system.
She said to meet the Basel III - international regulatory framework for banks - norms, the banks require around Rs.4.6 lakh crore.
The State Bank of India is considering listing its subsidiaries, particularly those in the insurance and card businesses, to fund its long term capital requirement, its chief added.
Bhattacharya said the bank was also toying with ideas like leveraging its real estate assets and through infusion of government funds.
"We are talking about listing the subsidiaries; but not this year. Among the subsidiaries we are looking to list are the life insurance subsidiary (SBI Life Insurance) and the cards business (SBI Cards)," she said.
Bhattacharya, however, did not give any timeframe for listing the two subsidiaries. "It is very difficult to tell you when."
The banking sector needs around Rs 4.6 lakh crore to meet the Basel III - international regulatory framework for banks - norms, she said.
Bhattacharya said SBI was expecting a credit and deposit growth of 14 percent in the 2015-16 fiscal.