The State Bank of India (SBI), recognized as the country’s largest lender, is intensifying its efforts in wealth management amidst a surge in wealth among individuals. Chairman Dinesh Khara noted that SBI’s wealth management unit has been outdated and needs a strategic overhaul to better address the evolving market demands. To address this, SBI is deploying approximately 2,000 executives as relationship managers and is placing an emphasis on building relationships with smaller companies across India.
In-House Financial Products and Distribution Network
Khara highlighted SBI’s extensive in-house financial product offerings and its robust distribution network. He suggested that the bank is well-positioned to deliver these products directly to customers, potentially negating the need for partnerships with other wealth managers. However, Khara chose not to comment on the current assets under management of the bank.
Competitive Landscape
With over 22,500 branches nationwide, SBI is positioning itself alongside both global and domestic competitors in capturing a share of India’s expanding wealth management sector. In 2023, India saw a historic increase in new financial wealth, amounting to approximately $590 billion, according to a recent Boston Consulting Group report.
Competition from Global and Local Players
SBI will encounter significant competition from global institutions such as HSBC Holdings Plc and Barclays Plc, as well as established local players like 360 One WAM Ltd. These entities are actively expanding their services and teams to cater to India’s affluent clients. Additionally, private lenders such as ICICI Bank Ltd. and Axis Bank Ltd. are also making significant strides in the wealth management sector.
