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SBI to invest Rs 8 billion for network banking

Fakir Chand in Bangalore

The State Bank of India, the largest bank in the country, will be investing around Rs 8 billion in the next 2-3 years for offering network banking across the country.

Disclosing this, SBI chairman Janki Ballabh told rediff.com on Monday that the bank had embarked on an ambitious information technology drive to computerise and network its entire operations for a competitive edge in the banking sector.

"We may be late starters to infuse IT in our branch network, but in terms of technology infusion, we would be second to none. We can claim to go in for the best of the hardware and software available anywhere in the world. Keeping in view our vast network spanning the country, we had to undertake a massive exercise to work out the logistics and modalities for connectivity."

Admitting that competition had intensified with the emergence of new generation banks and the expansion of foreign banks' branch network, Ballabh said in terms of reach and penetration, SBI was far ahead of others.

"We have to only leverage on our vast network, especially in cities where new private banks had a ahead start with an IT-savvy image. In the run-up to provide anywhere and anytime banking across the country, we have started offering Internet banking in select cities, besides ATM counters," he affirmed.

Launching the bank's ATM network and Internet banking in Bangalore, Ballabh said the number of ATMs on the bank's network would go up to 395 in 15 cities by August 15 from 97 ATMs in 8 cities as of now.

At the end of the current fiscal, the number will go up to 1,000, out of which about 600 would be on the network in 42 cities.

Ironically, in the hi-tech capital of India, SBI chose to launch the ATM network and Internet Banking belatedly, i.e., after launching similar facilities in seven other cities across the country, including Pune, Hyderabad, and Thiruvananthapuram. Interestingly, SBI will be the only of its kind to install about 40 ATMs in its rural branch network in the country. Of its whopping 2,600 branches, about 350 of them will be networked in about 40 cities to offer online services, including anywhere banking. With VSATs at multiple locations in every major city, the bank will be providing a national ATM grid. The bank's ATM card, issued by any networked branch free-of-charge, will enable its customer holders to operate and transact business from any networked branch in other cities.

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