SBI Poised For Entry Into Private Banking

Vanessa Doctor

2 December 2010

The State Bank of India is looking to capture a greater portion of India's high net worth market with the proposed establishment of a separate private banking unit, the Business Standard reports.

Details on the planned new firm are still in discussion, but V Murali, the general manager of SBI's new businesses division, reportedly said at the Private Banking India 2010 conference that it will target HNW individuals and families with at least Rs1 crore (around $90,000) in investable assets.

SBI had already made its foray into the affluent scene with the launch of an exclusive by-invitation-only branch in Hyderabad in September this year.

The bank's close relationship with many of the country's small- and medium-sized enterprises will be the main jump-off point of the new private banking arm, Murali was quoted as saying. The majority of the SME units are family-owned, making them strong candidates to go on to seek private banking services. According to the latest World Wealth Report by Merrill Lynch and Capgemini, India holds the second fastest growing HNW market in the Asia Pacific region, with the number of HNW individuals with at least $1 million rising to 126,700 by 2009, from just around 84,000 in 2008.

SBI is the largest lender in India with a network of over 16,000 branches.