State Bank of India’s (SBI) YONO mobile application has generated loans worth Rs 1 trillion, SBI chairman Dinesh Kumar Khara said in an interaction with Motilal Oswal Financial Services. Digital loans disbursed on the SBI YONO stood at Rs 71,000 crore as on December 31, 2022.
The digital banking application is now opening more than 30,000 savings accounts on a daily basis, while in-principle approval for gold loans stands high at 52-53%.
SBI YONO allows users access to a variety of financial and other services such as flight, train, bus and taxi bookings, online shopping, or medical bill payments.
“The cost of acquisition (for customers) is lower for YONO, which is likely to result in operating efficiency and moderation in cost ratios. While the cost-to-assets ratio remains among the lowest, the bank believes that it can further improve the ratio by a few basis points,” analysts at Motilal Oswal noted.
Other Banks’ Apps
Akin to SBI YONO application, Kotak Mahindra Bank’s Kotak 811 and ICICI Bank’s iMobile Pay application have witnessed strong traction. Similarly, value of transactions on ICICI Bank’s iMobile Pay application has risen 29.2% year-on-year as on December 31.
While Kotak Mahindra Bank has not disclosed the latest data on its Kotak811 application, overall throughput rose 104% year-on-year in 2021-22 (April-March).
“In the next one year, you will see banks trying to cut corners in terms of operating costs. There is a limit to which, you can take interest rate up on assets and there is a limit to which, you can hike the interest rate on deposits,” Rajan Pental, executive director, YES Bank said.
Digital Loans
The push for digital banking has coincided with the growth in the digital loans. Digital loan values have grown sharply in recent times even as Reserve Bank of India (RBI) has tightened norms for digital lenders in recent times. Digital loan volumes grew 147% year-on-year and digital loan value rose 118% year-on-year in the December quarter, a recent report by the Fintech Association for Consumer Empowerment showed.
SBI
| Established | 1 July 1955 |
| Headquarters | State Bank Bhawan, M.C. Road, Nariman Point, Mumbai, Maharashtra, India |
| Branches | 22,219 Branches 229 Branches in 31 countries |
| ATMs | 62,617 |
| Revenue | ₹406,973 crore (US$51 billion) |
| Operating income | ₹78,898 crore (US$9.9 billion) |
| Net income | ₹43,774 crore (US$5.5 billion) |
| Total assets | ₹5,177,545 crore (US$650 billion) |
| Total equity | ₹300,972 crore (US$38 billion) |
| Number of employees | 2,44,250 (March 2022) |
| Owned By | Ministry of Finance (Government of India) |
| Subsidiaries | ● SBI Life Insurance Ltd SBI Cards and Payment Services Ltd ● SBI General Insurance (70%) ● Jio Payments Bank (30%) ● Yes Bank (30%) ● Andhra Pradesh Grameena Vikas Bank (35%) ● Kaveri Grameena Bank (35%) |
| Capital ratio | Tier 1 11.03% (2022) |
| Rating | S&P BBB- / A-3/ Stable Moody’s Baa3/ P-3/ Stable Fitch BBB- / F-3/ Stable |
| Website | bank.sbi |