SBI to launch new current accounts and ‘Parivar’ savings accounts this year, Check details

The State Bank of India (SBI) is planning to launch new variants of current account (with balances of ₹50,000 and ₹50 lakh) and “Parivar” (family) savings account in FY24 to minimise the gap between deposit growth and credit growth.

The new plans come in the wake of deposit growth lagging credit growth over the last few quarters. Domestic deposits of India’s largest bank grew 8.86 per cent year-on-year (y-o-y) by the end of 2022, while domestic advances were up 16.91 per cent y-o-y.

SBI expects that its domestic deposits and domestic advances will grow about 12 per cent and 16 per cent y-o-y, respectively, in FY24. The low proportion of low-cost current account (CA) deposits (5.6 per cent of the total domestic deposits of ₹40,48,149 crore by the end of December 2022) is a drag on the bank’s net interest margin (NIM).

To grow retail liabilities, the bank has placed more than 500 RMCAs (Relationship Managers for Current Accounts) in various Circles and launched CA product “Shubharambh” for start-ups. Further, the bank sees integration with the Ministry of Corporate Affairs’ SPICe+ form as a major opportunity for opening CAs of newly incorporated companies.

According to the SBI, the proposed Parivar Savings Bank Account will have additional features like insurance/health check-up /concession in locker rent. With the launch of this account, the bank is expecting that customers will open bank accounts for their family members.

State Bank of India (SBI)