State Bank of India (SBI) Has achieved another big success. In FY 2024-25, the bank has recorded a record net profit of around $ 9.2 billion. With this achievement, SBI has become India’s third such company after Reliance Industries and ONGC to join the top 100 companies in the world for profit. His digital initiative behind this strong performance of SBI is considered to be a major role of ‘Yono’. The platform today has more than 7.4 crore registered users. So far, loans worth more than Rs 3.2 lakh crore have been issued through Yono, which has become an important part of the bank’s retail debt business.
The popularity of Yono can be gauged from the fact that the platform has more than one crore logins every day and the transactions of 65% Savings account of SBI are now being completed through this. This digital revolution is not only making SBI competitive globally, but is also putting it in the queue of companies leading future banking.
2.2 lakh employees work in SBI
However, India’s well -known marketing strategist Rajendra Srivastava posted on social media that a large part of SBI’s profits is due to a relatively small digital group. He wrote that SBI serves more than 50 crore accounts, making it the largest bank in the world according to the customer base. But only 7.4 crore of these accounts (about 14%) are connected to the Yono. It is a contradiction that a large part of the profits comes from this small digital class, while the remaining 37 crore accounts represent less profits and higher cost segments.
Rajendra Srivastava also questioned whether this huge network with 20,000 branches and 2.2 lakh employees is the most effective model of financial inclusion in today’s digital age?
Transactions through mobile phones became easier
Rajendra Srivastava said that India’s digital public infrastructure (DPI) such as Aadhaar, UPI, Internet connectivity and smartphone has revolutionized the access of financial services. Due to this, citizens of rural areas are also able to make transactions easily through mobile.
On this, he questioned the need for SBI’s material branches and said that in this context, the bank should reconsider its huge branch network. Srivastava also stated that despite that SBI has made record profits, he is trading on a low assessment (P/B ratio 1.4) as compared to its private sector competitors, while the P/B ratio of HDFC Bank is 2.8 and ICICI Bank 3.3.
Yono should be given more priority
Srivastava stated that SBI’s low P/B compared to its competitors in the domestic market reflects investors’ concerns about structural disabilities in asset use rather than financial performance. He said that SBI should give more priority to Yono.
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