India’s largest public sector lender State Bank of India (SBI) is most likely to soft launch its micro market vertical from June 1 in a bid to raise its stake with the bottom-of-the-pyramid borrowers.
Industry sources reveal that the lender has directed SBI Life Insurance chief executive Sanjeev Nautiyal to head the department.
SBI is going to unveil the specialised cell for small borrowers despite the crisis situation associated with the line of lending amid the Covid-19 outbreak. Around 7,500 rural branches of SBI will be at the forerunner of this initiative.
SBI chairman Rajnish Kumar stated that the bank would be doing a soft launch on June 1.
With the contracting economy and the shrinking opportunities in both wholesale and retail loan markets, the last-mile connect would be SBI’s response. SBI’s group chief economic advisor Soumya Kanti Ghosh predicted the economy to contract 6.8 percent in FY21.
The state-owned lender has already formulated a vertical named Financial Inclusion & Micro Market (FIMM) for handling its microfinance business. Deputy managing director KV Haridas, who has been in charge of FIMM until now, will be retiring on May 31.