SBM Bank aims to add up to six branches in FY21

SBM Bank (India), a step-down subsidiary of SBM Holdings (erstwhile State Bank of Mauritius), will add two branches in the current quarter, taking the branch network to eight by March-end 2020.

The bank, which was the first foreign bank to obtain a banking licence from the Reserve Bank of India to operate as a wholly-owned subsidiary (WoS) in December 2018, may add four to six branches in the next financial year, said Sidharth Rath, MD and CEO.

Tie-up with PayNearby

While it will increase its own network in a calibrated manner, Rath said the emphasis will be on digital and partnership approach to expand business. In this regard, SBM Bank (India), on Monday, announced a tie-up with a hyperlocal fintech start-up, PayNearby, to build an “open banking” network towards delivering basic banking solutions as well as advanced financial services to their customers. The partnership will enable the bank to offer a complete suite of digital and assisted banking solutions through PayNearby’s network of micro-enterprise and retail touchpoints. The network of PayNearby retailers spans across over 16,700 PIN codes in the country, the bank and the fintech company said in a joint statement.

The deployment of the banking module will be done in a phased manner, and will work seamlessly with the existing platforms at PayNearby outlets and touchpoints, it added.

“Branch locations, banking hours or normal waiting time – these concepts are fast eroding. We, being a new bank, have set sights on offering a seamless experience.

“Our partnership with Nearby Technologies is built on a commitment to facilitate financial empowerment among the underbanked and unbanked segments through the wide network comprising MSMEs and retail outlets.”