State Bank of India (SBI) is planning to replace over half of its ATMs/ADWMs (Automated Teller Machine/ Automated Deposit cum Withdrawal Machine) in the next three years and expand its Business Correspondent (BC) network by 30,000 in FY24 to reduce the footfall at branches and free the manpower for sales and marketing.

Currently, about 97 per cent of the Bank’s transactions are through alternative delivery channels, including digital means (comprising internet, mobile, UPI & mobile banking app YONO, and Green Channel Counter at branches), ATMs/ADWMs, and BC channel.

Proper upkeep

India’s largest bank is planning to procure 34,250 new ATMs/ADWMs in the next three years to replace more than seven-year-old machines, per the Bank’s business plan. As of December-end 2022, SBI had 65,650 ATMs/ADWMs (64,216 as at December-end 2021).

Dinesh Kumar Khara, Chairman, SBI, emphasised that proper upkeep and maintenance of ATMs/ADWMs, which represent the Bank’s brand, should be ensured at all times to have near 100 per cent up time.

Also read: Retail personal loans will continue to be main driver of credit growth for SBI in FY24

“BC channel is another robust way of decluttering the branches. We aim to achieve the milestone of 1 lakh CSP (customer service point) outlets by end of March 2024,” he said.

In the short to medium term, all CSP outlets will have Micro ATMs. As of December-end 2022, SBI had 70,258 BC/CSP outlets (69,500 as of December-end 2021). BCs/CSPs are extended arms of Banks, providing financial and banking services to customers in unbanked and underbanked areas.

Colour coding of branches

In FY24, the Bank plans to “colour code” (categorise) branches based on continued achievement of business targets, long standing high value relationships, audit ratings, high market share, among others, in order to leverage the full business potential of high performing branches.

High potential branches will be augmented with suitable staff, ambience, and mentors so that they continue to perform better, Khara said. As of December-end 2022, SBI had 22,381 branches.

Recently, SBI announced its plan to launch new variants of current account (with balances of ₹50,000 and ₹50 lakh) and “Parivar” (family) savings account in FY24.

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