The State Bank of India, recognized as the largest financial institution in the country, is intensifying its efforts in wealth management in response to the increasing number of affluent individuals.
The wealth management division of the bank is considered “outdated,” and it aims to revise its strategy for engaging in this sector, as stated by Chairman Dinesh Khara. In pursuit of this goal, SBI is assigning approximately 2,000 executives to serve as relationship managers and is prioritizing partnerships with smaller enterprises nationwide, Khara mentioned during the bank’s earnings presentation.
Khara stated, in reply to an inquiry regarding the potential collaboration of SBI with other wealth management firms, “We produce a comprehensive range of products within the financial sector and possess the most extensive distribution network. This enables us to effectively deliver our products to customers.” He refrained from providing details about the bank’s existing assets under management.
State Bank of India (SBI), boasting over 22,500 branches across the nation, is aligning itself with both international and domestic entities eager to capture a portion of India’s expanding wealth management sector. A recent report from the Boston Consulting Group indicates that the country experienced an unprecedented increase in financial wealth, amounting to approximately $590 billion in 2023, marking the largest growth in its history.
SBI is set to encounter competition from international entities such as HSBC Holdings Plc and Barclays Plc, as well as established local firms like 360 One WAM Ltd., which are broadening their offerings and workforce to cater to India’s affluent population. Additionally, private banks such as ICICI Bank Ltd. and Axis Bank Ltd. have begun to penetrate the wealth management market in the country.
