How SBI is gearing up to take on this major competitor

SBI has put focus on digital agendas including expansion of the YONO app

State Bank of India is taking steps to take on Housing Development Finance Corp. and HDFC Bank’s combined strength, which has emerged as the main competitor for the country's largest lender.

“SBI is the largest home loan provider in the country. Our home loan market share stands at 35.3 per cent; we are very mindful of the HDFC-HDFC Bank merger and are taking necessary steps to counter the emerging competition," SBI Chairman Dinesh Khara Wednesday told shareholders during the bank’s 67th annual general meeting.

HDFC and HDFC Bank’s merger, which is set to close in 18 months, will widen their total loans lead over private sector banks like ICICI and Axis. Mint reports that as of December 31, the merged loan book stands at Rs 17.9 trillion while SBI, at the end of December, had total loans of Rs 26.64 trillion.

Also read: HDFC Limited to merge into HDFC Bank

SBI has put focus on digital agendas which include expanding the YONO app. “Further digitisation of the entire home loan journey is at an advanced stage. In-house developed digital platforms like YONO and Online Customer Acquisition Solution/ Retail Assets Acquisition Solution are being promoted extensively as resource tools to maximise the home loan business and increase our market share," read SBI’s annual report.

Khara’s quote in the annual report read, “The bank will explore mutually-beneficial partnerships with fintechs and non-banking financial companies to increase penetration and reach of the lender.”

In March, Mint reported that SBI is in the process of planning a separate digital entity and would update its mobile app.

The annual report said, as of March 31, YONO has seen 111.74 million downloads, saw the opening of 26,000 new digital savings bank accounts per day and has counted 48.35 million registered users.