YONO is more than just a banking app and is an important part of SBI’s customer acquisition strategy, said Dinesh Kumar Khara, Chairman, State Bank of India (SBI) in an interview with CNBC-TV18.

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“We have a larger dependency on this kind of a channel for reaching out to our customers; it has proved to be a great success so going forward, we will be leveraging this channel,” he added, adding that it would help lower the cost of customer acquisition.

On demand for corporate loans, Khara said corporates have shifted focus from banks to money markets for raising capital. Khara said the corporate loan book has grown 10 percent, but was hopeful of this number rising further in the March quarter. He was hopeful of the retail segment doing better.

Khara also said SBI would not be going to the rescue of any more troubled banks, like for instance Lakshmi Vilas Bank.

“The resolution mechanism which has been suggested by Reserve Bank of India (RBI) and also approved by various board of banks is very pragmatic resolution mechanism. More than the stress, there would be very conscious efforts on the part of the borrower as well as on the part of the banks to get into the resolution process faster,” Khara said.

First Published:Oct 14, 2020 8:40 PM IST