India's Larget PSU Lender SBI Deployes 2,000 Bankers To Woo The Rich Residents For Wealth Management

State Bank of India (SBI), the country's largest PSU lender, is making a push into the wealth management sector as the number of affluent individuals continues to rise. The bank's renewed focus comes amid a surge in financial wealth within the country.

SBI's wealth management unit, although established, is set for a transformation. According to Chairman Dinesh Khara, the bank is re-evaluating its approach to better align with the burgeoning market needs. This shift involves deploying around 2,000 executives as relationship managers, tasked with strengthening ties with smaller companies across India. During the bank's earnings briefing, Khara emphasized, "We manufacture all the products in the financial sector and have the largest distribution network. We should be in a position to reach out the product to the customers."

The deployment of a vast network of relationship managers is a strategic move to leverage SBI's extensive branch network, which exceeds 22,500 across India. This presence offers an advantage, enabling the bank to reach a wide customer base, including those in less penetrated regions. Khara did not disclose the current assets under management, but the bank's aggressive approach signals a strong focus on expanding its wealth management footprint.

India generated approximately $590 billion in new financial wealth in 2023, marking its largest increase in history, as per a report by the Boston Consulting Group. This surge presents an opportunity for wealth managers, including SBI, to cater to an expanding clientele of affluent individuals.

SBI will compete with both global and domestic players who are keen on capturing a slice of India's growing wealth. International banks such as HSBC Holdings Plc and Barclays Plc, along with local stalwarts like 360 One WAM Ltd., are expanding their services to tap into this market. Moreover, private sector banks like ICICI Bank Ltd. and Axis Bank Ltd. have already made strides in wealth management.

SBI's extensive branch network and comprehensive product offerings position it well to cater to a diverse range of customers. Additionally, the bank's focus on deploying relationship managers to foster personal connections with clients is likely to enhance customer satisfaction and loyalty.