Physical banking to remain core to SBI strategy amid digital expansion

State Bank of India will continue to back its branch network even as it accelerates investments in artificial intelligence and digital banking, chairman C S Setty said, signalling that India’s largest lender sees physical banking remaining central to its growth strategy.

“Physical banking will continue to remain an important pillar of our relationship-led model,” Setty said in SBI’s FY26 annual report.

“Our endeavour will be to integrate the strength of our branch network with the speed and convenience of digital platforms, thereby creating a truly omni-channel banking experience for our customers,” he said.

The comments come as SBI sharpens its “Digital First, Customer First” strategy, with continued investments planned in “technology, data analytics, artificial intelligence, cybersecurity, and digital infrastructure”.

Setty said the bank’s next phase of transformation would focus on “delivering deeply personalised, seamless, and intuitive banking experiences across all customer segments and channels”.

At the centre of the effort is Project SARAL, under which SBI plans further “process re-engineering, standardisation, digital integration, and greater use of automation and Artificial Intelligence”.

Even as the lender pushes digital adoption, Setty indicated that SBI would continue relying on its physical network alongside technology-led delivery.

The bank also said strengthening its liability franchise and customer engagement would remain a strategic priority.

“We see significant opportunities in expanding digital onboarding, transaction banking, SME ecosystems, and relationship-led banking solutions,” Setty said.

“Our focus will be on building a granular, stable, and low-cost deposit base while further strengthening customer trust and loyalty.”

SBI also sees opportunities in expanding wealth management and advisory services through “technology-enabled engagement models”, according to the annual report.

Setty said the bank remained committed to supporting India’s growth ambitions under the government’s Viksit Bharat vision, while sustainability, workforce development, governance and prudent capital management would remain key focus areas.

“As we move forward, our vision is to build a future-ready institution that combines technological leadership with human trust and business growth with social responsibility,” he said.