State Bank of India Chairman C S Setty has announced an ambitious target for the bank’s digital platform. The goal is to double the YONO app user base to 20 crore over the next two years. This push begins with the launch of a new version called YONO 2.0.
YONO 2.0 represents a significant upgrade for the digital banking experience. It offers a better experience for customers and a more robust platform for the bank. Full-fledged features will be rolled out gradually over the next six to eight months.
From the bank’s perspective, YONO 2.0 is a key anchor of digitalization. It features a common code for internet and mobile banking. This allows for seamless integration across different channels.
This integration enables SBI to launch new products and processes much more quickly. The bank aims to leverage YONO 2.0 to significantly enhance its digital presence. Customer engagement is a major focus of this strategic move.
For example, YONO 2.0 has developed a common core for customer journeys. This will ensure a seamless experience whether using internet banking, mobile banking, or visiting a branch. This applies to account opening or any other transaction.
Setty provided clear numbers on the current and future state. Today, the platform has almost 10 crore customers. The objective is to bring 20 crore customers to YONO mobile banking or internet banking.
Achieving this 20 crore customer base requires significant investment in infrastructure. The bank’s idea is to reach this milestone within the next two years. This underscores a major commitment to digital expansion.
The chairman also expressed confidence in the bank’s financial targets. He is confident in achieving a 3 percent net interest margin guidance. This comes despite a recent repo rate cut by the Reserve Bank of India.
On December 5, the RBI lowered the repurchase rate by 25 basis points to 5.25 percent. It also retained a neutral stance, leaving room for further rate cuts. This move came after a gap of six months.
The rate cut was made with a view to further bolster economic growth. Growth hit a six-quarter high of 8.2 percent in the second quarter of FY26. Following this decision, SBI took action as well.
The bank lowered its lending rate linked to the repo rate by 25 basis points. The new rate of 7.90 percent became effective from December 15. SBI also slashed its Marginal Cost of Funds-Based Lending Rate across all tenures by 5 basis points.
On the topic of capital, Setty said the bank may not need equity capital. This is to drive credit growth and maintain a capital adequacy ratio. The target is to maintain a ratio of 15 percent over the next five to six years.
Credit growth momentum is expected from the RAM segment. The Retail, Agriculture, and MSME segment will drive a 14 percent overall credit growth this fiscal. This segment constitutes 67 percent of the total loan portfolio.
The RAM segment crossed a major milestone of Rs 25 lakh crore in September. With improving economic growth, SBI has revised its credit growth target upward. The target is now 14 percent for the ongoing financial year, up from 12 percent.
The bank is also witnessing good growth in specific loan areas. Gold loans are performing well. Express credit, an unsecured personal loan, is expected to see double-digit growth.