Page 17 - Banking Finance January 2020

MUTUAL FUND

MUTUAL FUND

NEWS
NEWS
NEWS
NEWS
NEWS

Aditya Birla Sun Life al- SBI Mutual Fund IPO to come before SBI general insur-

lows lumpsum invest- ance: SBI chief
ment via WhatsApp SBI Chairman Rajnish Kumar said his bank is confident of absorbing any shock,
thanks to its resilient balance sheet. He reiter-
Aditya Birla Sun Life Mutual Fund has
ated that he has no intention of helping out pri-
decided to al-
low investors vate lender YES Bank.
to make lump Kumar said SBI Mutual Fund IPO will come be-
sum invest- fore SBI General Insurance’s issue. He further
ment through said that banks are in the business of taking risks,
WhatsApp. “Considering that but such risks should be priced correctly. The dif-
WhatsApp is one of the most widely ference between private sector banks and pub-
used application, the service provides lic sector banks lies in pricing this risk, he said. Kumar said his bank has also lost
convenience and ease of access to in- money in the telecom sector, but insisted that the banks has diversified its risk
vestors. It also automates the entire
well.
service process for them and gives a
“What is not very large for SBI, could be large for others. Telecom sector was
seamless experience. This is yet an-
other initiative of understanding in- one of the stories, which was most sought out sector when we lent to the sec-
vestor service needs and using digi- tor. But people burnt their fingers or even body with it,” he said.
tal capabilities to offer best-in-class “We are a large bank. We have a certain responsibility. A private bank has a
services to our investors,” said A choice in selecting their business, but State Bank does not have a choice,” he
Balasubramanian, MD & CEO, said. SBI is capable of change and managing change well, Kumar. It’s a leader
Aditya Birla Sun Life AMC. in digital transformation, he said.
The mutual fund house was already SBI chairman said that it is the responsibility of a bank’s management to deliver
offering an array of services to inves- value to the shareholders. Globally, he said, the process is shifting to the value
tors through WhatsApp.. The AMC of stakeholders and not shareholders. While SBI is seeing some requests for
also allows to register a new SIP via
WhatsApp. Investors can also get project funding, it still does not have large projects, he added.
their portfolio valuation and avail “Our working capital funds are lying idle. Demand is yet to pick up,” Kumar said.
other non-financial services through According to him, availability of debt is not a problem. “Problem is availability
the widely used messaging app. Exist- of equity and confidence” Kumar insisted that one must not be pessimistic about
ing investors can also get their ac- the future even in a slowdown. “We need to improve productivity to achieve $5
count statements through the App. trillion economy goal.”

BANKING FINANCE | JANUARY | 2020 | 17