SBI Eyes PMJDY Accounts to Boost Deposits Amid Market Correction: MD Ashwini Tewari

SBI Managing Director Ashwini Tewari emphasized on Wednesday that corrections in equity markets can help banks regain lost deposits. The bank is focusing on small-ticket Prime Minister Jan Dhan Yojana (PMJDY) accounts for deposit growth. Regulatory moves and market demands might necessitate raising deposit rates.

SBI Managing Director Ashwini Tewari stated on Wednesday that a correction in equity markets over time could enable banks to reclaim lost deposits.

He highlighted the bank's strategy to leverage small-ticket Prime Minister Jan Dhan Yojana (PMJDY) accounts for driving deposit growth. He noted that market shifts have directed funds away from banks towards higher-yielding investments.

To address deposit growth, the bank is prioritizing small-value accounts under PMJDY, a segment previously under-focused. The credit growth outpacing deposit growth for 18 months underscored the need for banks to raise deposit rates and seek alternative funding methods. Tewari also addressed regulatory measures for unsecured loans and project loan provisioning as moderating factors for deposit growth.

(With inputs from agencies.)