India’s biggest lender, State Bank of India has joined hands with McKinsey and Co as its advisor to help it in developing its rural business. The banking giant has paid Rs. 62.8 crore to McKinsey for this purpose.
SBI had kept a project allotted to McKinsey in 2007 on hold because of some operational reasons. The services of the consulting company are now revived.
Minister of State for Finance Namo Narian Meena said, “SBI had engaged McKinsey & Co as consultants in January, 2007, for a period of four months for building bank’s rural banking business. However, the engagement was temporarily put in abeyance after some time due to operational reasons”.
McKinsey has been selected for 4 months in order to start the stagnant project of 2007, he said.
The company would be counseling SBI on topics like appraisal of rural tactic, amended channel tactics to outreach, major partners to target, technology plan, business plan, organizational revamp etc, he said.
Meena also claimed that the bank had paid a consultancy fee of Rs 9.99 crore to McKinsey & Co in 2006-07.