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NEW DELHI: SBI chairman CS Setty on Monday said that the structural transformation in the domestic banking sector is driven by investment opportunities aided with ease of doing business and digitalization. He also pointed out that, over the past decade, banks have not placed sufficient emphasis on deposits.
At a panel discussion on the ‘role of young leaders for Viksit Bharat@2047’ hosted by SBI, Setty said, “I think it is also a sign of a maturing investment climate and the digitalization, which has played an important role (in driving people to invest at places other than banks).”
The chairman was addressing concerns about the growing challenge of deposit mobilization, as an increasing number of people are exploring alternative ways to invest their money instead of relying on bank deposits.
The chairman noted that a few years ago, banking was a “pain”, and investing in SIPs was not an easy process either.
He said, “But today, with two clicks, you can move these funds out of the bank into fixed deposits or into SIP, which means that the ease of doing business is also resulting in a structural shift apart from the opportunities of investment.”
Setty stated that, despite this, he firmly believes it is true that, over the past decade, banks have not paid enough attention to deposit mobilization.
He further mentioned that during the Covid pandemic, when many banks were not accepting deposits, it was only SBI that continued to do so, adding, “I’m sure that as the income levels of the individual goes, there’s an asset allocation.
“I hope and trust that the bank deposits will be one of the important assets, which they will definitely consider,” Setty said.
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