State Bank of India (SBI), the nation’s largest lender, is making a strong push into wealth management, recognizing the significant increase in wealthy individuals in India. SBI’s wealth management division, though established, is undergoing a transformation in its approach to this market, according to Chairman Dinesh Khara. To achieve this shift, SBI is deploying a team of approximately 2,000 executives to serve as relationship managers and focusing on building relationships with smaller companies nationwide.
During the bank’s earnings briefing, Khara emphasized SBI’s comprehensive financial product offerings and vast distribution network. He stated, “We manufacture all the products in the financial sector and have the largest distribution network,” in response to inquiries about potential collaborations with other wealth management firms. “We should be in a position to reach out the product to the customers.” Khara declined to disclose the bank’s current assets under management.
SBI, with its expansive network of over 22,500 branches across India, joins a growing number of global and domestic players vying for a share of the burgeoning Indian wealth management market. A recent report from the Boston Consulting Group highlights India’s remarkable financial wealth creation, generating approximately $590 billion in new wealth in 2023, the highest increase ever recorded.
SBI will face stiff competition from established global players like HSBC Holdings Plc and Barclays Plc, as well as local veterans like 360 One WAM Ltd., all expanding their services and teams to cater to India’s growing affluent population. Private lenders such as ICICI Bank Ltd. and Axis Bank Ltd. have also made significant inroads into the country’s wealth management sector.
