LONDON, Dec 18: The State Bank of India is celebrating its centenary year in the UK with the launch of a new ‘Namaste UK’ account, aimed at benefitting Indian students and professionals on long-term visas to be able to set up their banking services in Britain before they set off from India.
Backed up by a “robust” mobile application called YONO – You Only Need One, SBI UK chief expects further interest in the account in the New Year as more Indian students and professionals make their way to the UK.
Additional plans are aimed at New to Bank (NTB) customers, allowing them to use SBI UK remittance facilities without the need to open a bank account.
“Almost 500 accounts a month are being opened through YONO. Its big advantage is also for long-term UK visa holders, who can complete their banking requirements as soon as the visa is issued in India and before they arrive in Britain,” Sharad Chandak, Regional Head of UK Operations for SBI, told PTI in an interview.
“This is dubbed the ‘Namaste UK’ account, which gives peace of mind to travellers. This service has been up and running for almost six months and Indian students and professionals coming to the UK will greatly benefit from this service,” he said.
The London-based banking chief traced SBI’s 100-year history in the UK, where the India banking major has had a presence since 1921.
“Initially when we started, there were only three lines of activities – rediscounting of bills of bilateral trade, supporting government transactions and arranging the funds for the parent bank. Over the period, the bank has grown and in 100 years, our balance sheet size has grown by 10,000 times. In the first year, our balance sheet was only GBP 1,960 and now it is almost USD 20 billion. So, that is the extent of the growth,” he said.
In 2015-16, the UK regulators came up with the concept of ring-fencing and wanted the retail business carved out into a local subsidiary. Therefore in 2018, SBI formed a local subsidiary and today has a London branch as a branch of the parent bank and an SBI UK Ltd as the subsidiary with 11 branches – six in London, four in the Midlands and one in Manchester – with a subsidiary balance sheet size of almost GBP 2 billion.
“This growth is down to the trust we have built over the years, of the customers, employees and regulators, with our customer service, transparency and full compliance of the norms. We have also kept pace with the time, adopting new technologies as we go along. We have invested huge amounts and energy in best risk management practices. All of these aspects have helped us grow and come this far,” said Chandak.
“As part of the centenary celebrations, we are also in discussion with local councils for tree plantation initiatives,” he revealed.
Looking ahead to 2022, the SBI UK chief expects the largest Indian bank to play a key role in the India-UK partnership as the two governments progress towards a free trade agreement (FTA).
He reflected: “SBI is on the board of the West Midlands India Partnership. We are also in discussion with the Manchester India Partnership. The Midlands is keen to attract investments from India, for which the very basic thing required is banking and that is where SBI comes in.
“Besides the initial bank account requirements, we can help out with other financing activities. SBI in any case handles the India-UK trade business.
Therefore, SBI will definitely be a major part of the India-UK business corridor in future as well.”
Besides, considering the demand from many of its existing customers, SBI UK is also considering entering into the Development Finance market in the New Year. (PTI)
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