A recent press report said that State Bank of India has set higher deposit targets for its business branches in urban centres and is likely to tap high net worth individuals (HNIs).
Reports said that the bank has asked its managers in Tier III towns to insistently sell its mortgage-backed products like car loan and home loans besides market-linked mutual fund schemes. The bank has asked its regional officers to ensure R10 crore in deposits and enrolment of at least 120 HNIs as new customers annually per branch. Reports said that the targets set for the bank branches are to be reviewed on a monthly basis. The bank has asked its branches to sell its insurance products under SBI Life with addition of new customers.
An executive from SBI said that the targets for different products were not segregated earlier but there used to be a consolidated target of R 4-5 crore annually for the branches. He said that the bank has planned to implement its aggressive business plan at a time when international rating agency Moody’s has downgraded its standalone rating on concerns of “modest capital and weakening asset quality”.