SBM Bank India, a part of Mauritius-based SBM Group, is looking to foray into the unsecured credit card segment to diversify its product portfolio and ramp up its retail business.
The bank is planning to launch unsecured credit cards in the next 6-12 months, said Nikhil Rajadhyaksha, Head – Consumer & Retail Banking. It currently has secured credit cards, which is typically issued against a collateral such as FDs.
“We aspire to be a financial supermarket for our customers, offering a comprehensive range of services in the retail space. We currently have a secured credit card portfolio which we are looking to scale up. And, we are also planning to launch an unsecured credit card in the next 6-12 months,” Rajadhyaksha told businessline.
The lender currently has a total retail loan book of close to ₹1000 crore, with MSME loans constituting around 10 per cent, and of the remaining, around 75 per cent in secured loans and around 25 per cent in unsecured loans.
SBM Bank India is planning to adopt a two-pronged strategy, which includes expanding its brick-and-mortar branch network and leveraging the digital banking channels, to expand its presence as well as business in the “rather crowded financial services market” in the country.
The bank, which grew its branch network to 21 branches at present from 15 last year, is looking to accelerate the growth in the years to come.
“Our branch expansion strategy now focuses on tier II towns and smart cities. This expansion aims to deepen our reach, bringing customer-centric services closer to emerging and underserved markets. These towns and cities are the growth engines, with increasing demands for modern banking products, digital services, and personalised financial solutions,” Rajadhyaksha said.
Alongside the brick-and-mortar branch network, it is looking to scale up its organic growth through a “Do it Yourself” digital journey. This channel specifically targets professionals who prioritise convenience and efficiency, seeking quick, accessible, and user-friendly digital services.
The bank is hopeful of adding one million customers in the next two years, up from the current three million.
SBM Bank India is the first foreign bank to receive a universal banking license from the Reserve Bank of India to set up and operate as a scheduled commercial bank under the wholly owned subsidiary (WOS) mode. It commenced operations in December, 2018.
