SBI to focus on e-commerce and SME lending

CHENNAI: After touch screen branches, State Bank of India is now focusing on digitization of its operations. “The idea is to define all processes digitally whether it be a loan against fixed deposit or shares. This will be a major thrust area for the next two years,” managing director of the bank, B Sriram said. In addition, funding e-commerce players will be another focus area for the bank. “We would like to finance the entire e-commerce value chain platform digitally, be it warehouse finance or other remittances,” Sriram said. Already, SBI has tie-ups with companies like Ola, PayPal and Amazon.
Under its tie-up with Ola, SBI has financed over 1,500 drivers. “The repayment of loan is trip wise with 20% of earnings of every journey going towards loan repayment. Such repayment mechanism also helps in early detection in case of default,” Sriram said. The country’s largest bank is also embarking on risk mitigated product lending. “This has worked well in segments like auto dealer finance where we give loans to dealers based on their inventory. With 60% of new cars in such dealer networks being financed through loans via our channel, it ultimately helps the dealer in liquidating his loans,” Sriram said.The dealer finance portfolio stood at Rs 10,866 crore at the end of the June quarter, registering a year on year growth of 35%.

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