The Hindu Business Line : Focus on market share: SBI chief

Mr Om Prakash Bhatt, who took over as Chairman of State Bank of India on Saturday, said he wants to ensure that SBI regains its market share by at least two per cent over the next couple of years.

"We want to grab back (part of the lost) market share," Mr Bhatt said at a press conference immediately after his taking over. SBI currently has a market share of 17 per cent (in terms of total business) in the Indian banking sector. The SBI Group (including subsidiaries) accounts for 25 per cent of the domestic banking business. SBI alone enjoyed a market share of more than 19 per cent five years ago.

Even if the bank's market share increases by one per cent every year for the next two-three years, it would be an achievement, Mr. Bhatt said.

To achieve his goal, Mr Bhatt's first priority would be to improve customer service. SBI would also introduce innovative banking products that could bring news business. He said he would discuss his strategy with the bank's Board of Directors before announcing it.

Mr Bhatt expects the bank's advances to grow by 25 per cent in the current fiscal against 29 per cent last year. But deposits are expected to register a higher growth of 17 per cent against 13 per cent last year.

Responding to a question on which of the SBI's four unlisted subsidiaries would get listed first, he said, it could be either State Bank of Hyderabad or State Bank of Patiala.

On interest rates, he said there is no upward pressure on interest rates as of now with the liquidity condition being comfortable.

Mr Bhatt said in addition to the Rs 2,300-crore raised by SBI through an issue of bonds, the bank required to raise another Rs 2,000-2500 crore in the current fiscal. He said the bank would find enough capital to meet the credit requirements.

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Focus on market share: SBI chief