SBI made a profit of 860 Cr in 2019 By 2023 it is 50,232 Cr How did SBI pull this off? Some context ✅ State Bank of India is the largest public sector unit bank (& probably the oldest) in India with ~22,266 branches and ~ 47 Cr (470 million) customers. But the fascinating part is how Profit Per Employee went from ₹33,000 (2019) → ₹21,22,640 (2023)
Customer service which was a major issue has improved of late and its strong ethical foundation has been a strength. The Yono advantage is a case of an incumbent becoming a challenger. As India scales to become the world's third largest economy, SBI will have to march in tandem which will require a differential strategy.
What is interesting is sbi serves the pm Jan dhan account holders as well as big business. It is there in rural areas as well as in metros. Its leadership so far has been able to balance these various roles deftly. Going forward these challenges will become more demanding because the catch up is now to be with China
The SBI story is an example of what a cutting-edge leadership which is confident of its potential can achieve with truly domestic talent and resources. It has built a model which is strong and can be used for scaling up. As the nation grows, SBI may have to lean more on new age technologies and IT's frontiers to provide the ballast for India's resurgence.
But this doesn't really attribute any kind of effort to SBI. They just rode the country's growth wave and took advantage of the fact that they have the largest distribution of branches in the country. This is less a case of growth through efforts and more like right place right time.
Full marks to the employees for being prepared for the country's demands and growth needs and kudos to the tech team for making sure the infrastructure was in place to handle the demand. But this is more of operational preparedness than deliberate strategic planning.
Simply amazing
Customer service which was a major issue has improved of late and its strong ethical foundation has been a strength. The Yono advantage is a case of an incumbent becoming a challenger. As India scales to become the world's third largest economy, SBI will have to march in tandem which will require a differential strategy.
What is interesting is sbi serves the pm Jan dhan account holders as well as big business. It is there in rural areas as well as in metros. Its leadership so far has been able to balance these various roles deftly. Going forward these challenges will become more demanding because the catch up is now to be with China
The SBI story is an example of what a cutting-edge leadership which is confident of its potential can achieve with truly domestic talent and resources. It has built a model which is strong and can be used for scaling up. As the nation grows, SBI may have to lean more on new age technologies and IT's frontiers to provide the ballast for India's resurgence.
I feel most of it's customers have --
a) Generation preferred approach
b) The rate of interest it caters its customers (offering less than competitions)
c) Because they took over listed banks they created a trust factor.
d) Bank has slowly become customer centric too recently
But this doesn't really attribute any kind of effort to SBI. They just rode the country's growth wave and took advantage of the fact that they have the largest distribution of branches in the country. This is less a case of growth through efforts and more like right place right time.
Full marks to the employees for being prepared for the country's demands and growth needs and kudos to the tech team for making sure the infrastructure was in place to handle the demand. But this is more of operational preparedness than deliberate strategic planning.