The State Bank of India is contemplating launching new variants of current account (with balances of ₹50,000 and ₹50 lakh) and Parivar savings account in FY24. These variants of accounts will be launched to minimise the gap between deposit growth and credit growth, reported Business Line.
The new plans come in the wake of deposit growth lagging credit growth over the last few quarters. Our Bureau Domestic deposits of India’s largest bank grew 8.86 per cent year-on-year (yoy) by the end of 2022, while domestic advances were up 16.91 per cent yoy.
SBI expects that its domestic deposits and domestic advances will grow by about 12 per cent and about 16 per cent y-o-y, respectively, in FY24, according the Bank’s business plan for the new financial year.
The low proportion of lowcost current account (CA) deposits (at only 5.6 per cent (of the total domestic deposits of ₹40,48,149 crore by the end of December 2022 end 2023) is a drag on the bank’s net interest margin (NIM).