As India gradually steps out of the nationwide lockdown, India’s largest bank, the State Bank of India has planned to save Rs 1,000 crore by allowing its staff to work from anywhere. SBI is set to focus on cost reduction, rationalisation and reskilling of the workforce, improving staff productivity, and redeployment of the workforce from admin offices to sales roles, SBI Chairman Rajnish Kumar said while addressing the shareholders at the bank’s annual general meeting today. Rajnish Kumar added that the measure is expected to save Rs 1,000 crore through cost optimisation and will be a key component of SBI’s business continuity during the challenging times of coronavirus, PTI reported.
In the address, the SBI Chairman said that the bank will maintain a constant vigil on the emerging stress and take proactive action to help its borrower customers while maintaining the asset quality. He further assured that the bank is well prepared to deal with the emerging challenges. The State Bank of India has stepped up monitoring of all the projects under implementation and has expected to tide over Covid-19 impact in the short to medium term.
Speaking about the relief measures for MSMEs in the Atma Nirbhar Bharat package launched by Prime Minister Narendra Modi, Rajnish Kumar said that the bank has set up financial inclusion and micro-market vertical to derive value in micro-markets, with a cost-efficient business model. For efficient financing, he added that the bank will use cash flow-based lending models.
Meanwhile, the central board of the State Bank of India will meet tomorrow, 15 July, to consider raising capital via Basel III compliant debt instrument in USD or INR during FY21. SBI had posted a net profit of Rs 14,488.11 crore for FY 2019-20, compared to Rs 862.23 crore in the previous fiscal year. Recently, the bank has also agreed to invest another Rs 1,760 crore in Yes Bank later this month.