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To cash in on its huge branch network and client base, State Bank of India is all set to start wealth management business and financial planning services.
"We are currently running this service on a pilot basis and roll out through select branches across important cities and town would be done soon," a senior official told PTI.
The business would mean additional fee income for the bank, the official said, adding that SBI has started talent hunt for the specialised service.
The bank has about 12,000 branches across the country and has over 14 crore (140 million) account holders spread across length and breadth of the country.
It would be targeting middle income group as many large players are already present to provide services to high net worth individual, the official added.
No bank or wealth managers are providing advisory to middle income group so there is a great opportunity for the bank, the official added.
The official said the branches will depute financial planners to approach account holders with over Rs 5 lakh (Rs 500,000) in their account, to ascertain whether the financial strategy adopted by the customer is correct or not.
The planner will also help the customer plan cash flows and income and expenses and also firm up financial goals with specific target dates.
The financial managers, the official said, will then assess the risk appetite and tolerance levels of the customers, who opt for the scheme and suggest, if the existing savings and investment practice are in line with the risk appetite or not.
For the second quarter ended September 2009, SBI posted a 10.19 per cent jump in its standalone net profit at Rs 2,490 crore (Rs 24.90 billion).
Image: SBI Chairman O P Bhatt