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Speaking to shareholders at the bank’s 65th annual general meeting on Tuesday, he said the focus going forward would be on cost reduction, rationalization and workforce restoration, improvement in staff productivity and redevelopment of workforce from admin offices to sales roles .
“Following global best practices, the bank will manage work-to-place (WFA) infrastructure to facilitate work from any location, taking care of the social aspects of work-life balance.
Kumar said that this measure is expected to save Rs 1,000 crore through cost optimization and will be a key component of the continuation of our business during COVID-19.
As the COVID-19 epidemic is still in play, FY21 will be a challenging year for a bank like any other bank or financial institution. The bank is well placed to meet such challenges.
He said that the lender has increased oversight of all projects under implementation and COVID-19 is expected to reduce impact for the medium term.
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“The bank will continue to monitor the emerging tensions and take proactive action to help our indebted customers and maintain asset quality,” he said.
The bank has already carved out a comprehensive business continuity plan. It has identified business continuity hub branches to cater to customers in case of emergency, and identified business continuity planning (BCP) sites to support essential back-end services.
In line with the opportunities created by the ‘Atmanibhar Bharat Package’ for Micro, Small and Medium Enterprises (MSMEs), the bank established a financial inclusion and micro-market vertical to achieve value in micro-markets with cost-efficient business is. Model, he informed the shareholders.
“A cash flow-based lending model will be used, leading to efficient financing and helping reduce delinquency,” the chairman said.
He said that the epidemic has focused on the value of contactless digital banking channels.
The bank’s mobile banking app, SBI YONO, has already achieved huge growth.
“The bank further expanded YONO and aimed to double user registrations over the next six months and strengthen the platform through new product offerings such as end-to-end home loans, pre-approved car loans and personal gold loans Is, “he said.
He said a strong liability franchise with a customer base of over 44 crore, a diversified lending portfolio with diverse capabilities, digital leadership across channels are some of the key strengths banks will rely on in the post-COVID landscape.
The lender also held a general meeting of its shareholders, later in the day, to get approval to raise up to Rs 20,000 crore of equity capital in the current financial year.
The results of the e-voting on the proposal will be announced later.
In a filing to the exchanges last month, the bank said it would allow shareholders at the meeting to “create, issue and issue 1, such as the number of equity shares of Rs 1, amounting to Rs 20,000 crore or more.” No. As per the condition approved by the Government and the Reserve Bank of India, the Government of India at any time does not have less than 52 percent in the equity share capital of the bank. ‘
Shares will be allocated through a public issue (follow-up public offer) or private placement, including Qualified Institutional Placement (QIP) / Global Depository Receipt (GDRs) / US Depository Receipt (ADRs) and / or any other mode) or Combination of
Talking to the shareholders, Kumar said that the bank will decide the best way to raise capital at the right time.
“We will decide on increasing the capital in the best way so that the existing minority shareholders of the bank are not harmed,” he said.
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