The State Bank of India (SBI), India’s largest lender, has announced plans to open 400 new branches across the country in the financial year 2024-25 (FY25). This expansion initiative signifies the bank’s commitment to strengthening its physical presence even as digital banking gains significant traction in India.
Chairman Dinesh Khara said, SBI’s expansion plans prioritize establishing a presence in new and developing areas. These branches will cater to the growing demand for banking services in these regions, promoting financial inclusion and economic development.
Despite the rapid growth of digital banking, SBI recognizes the continued importance of physical branches for many customers. Branches provide essential services such as cash deposits and withdrawals, loan processing, and personalized customer support.
The opening of new branches will create employment opportunities, both directly within the bank and indirectly through ancillary services and businesses that support branch operations. An expanded branch network can support local economic growth by providing businesses and individuals with greater access to financial services, loans, and credit facilities.
Even with the expansion of physical branches, SBI continues to invest in and promote its digital banking services. This includes enhancing the functionality and security of its mobile banking app, internet banking platform, and other digital channels.
SBI’s approach represents a hybrid banking model where physical branches and digital banking coexist, offering customers flexibility and a comprehensive range of banking solutions.
With the addition of 400 new branches, SBI’s extensive network will reach a total of 22,942 branches by the end of FY25. This expansive network ensures greater accessibility and convenience for SBI customers across the country.
This extensive network will enhance accessibility and convenience for customers across the country. While focusing on this expansion, SBI has decided to temporarily put on hold the monetization of its subsidiaries, such as SBI General Insurance and SBI Payment Services, to concentrate on scaling up their operations.
The bank’s decision to delay the monetization of its subsidiaries, focusing instead on scaling up operations, reflects a strategic approach to maximize their value in the long term. With subsidiaries like SBI General Insurance showing strong performance and SBI Payment Services maintaining market dominance, SBI is well-positioned to continue its leadership in the banking and financial services sector.
