According to SBI Chairman, Yono app generates fee income of Rs 100 crore every quarter

6 Sep 2023 , 02:06 PM

A top official estimates that the digital loan book will be close to Rs 30,000 crore this fiscal year and that Yono, the State Bank of India’s mobile app, will generate fee income of Rs 100 crore every three months by selling goods from the parent’s subsidiaries. The app was introduced in 2014 by the largest lender in the country, which has been in business for 217 years.

Since then, it has experienced such rapid growth that up to 85% of banking transactions now take place through Yono, according to State Bank of India (SBI) Chairman Dinesh Kumar Khara.

He was addressing a group of attendees at this location’s sixth global fintech summit.

‘I am pleased to share that Yono generates us Rs 100 crore in fee income every quarter by selling the just commoditized products from our subsidiaries, such as the life and general insurance arms, mutual fund, and others,’ said Khara.

He claims that in terms of lending, particularly pre-approved personal loans, it sold up to Rs 21,000 crore each during the previous two fiscal years.

‘Right now, Yono is already generating Rs 600 crore in revenue, and we have also issued pre-approved company loans through Yono.

‘We would be disbursing at least Rs 29,000–30,000 crore through Yono this year if this run rate is maintained moving forward, which I am confident we will. As a result, Yono would have a loan book around Rs 30,000 crore, according to the chairman.

Regarding the bank’s digital reach, he claimed that even though there are 22,400 branches, up to 85% of transactions are currently completed on Yono.

According to Khara, this is a fantastic illustration of how technology is being used and how our country is becoming more digitised. ‘And what is more (is that) as much as a third of these customers are from the hinterland or semi-urban settings,’ he added. 

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