State Bank of India could be sitting on a 40 billion dollar digital goldmine – Positive For SBI
· The country’s largest lender State Bank of India could be sitting on a goldmine when it comes to its digital startup YONO (You only need one). The super-app could be valued at $40 billion with the lender considering long term plans to hive it off as a separate entity once it assumes a certain size.
· “The companies which are making losses are valued at $10 billion - $20billion, YONO which is such a versatile platform has been making good amount of profits, using that benchmark YONO should be valued at $40 billion, but we haven’t commissioned any independent agency to value the platform,” Rajnish Kumar, chairman, SBI told ET.
· “Hiving YONO off as a subsidiary is a very good possibility but a couple of things have to be done, we should have APIs that could be given to other banks but first looking at the opportunities with our customer base we want to perfect that and then look outside,” said Kumar.
· The bank which has a customer base of 49 crore processes at least 4 lakh transactions on its digital offerings on a daily basis. 55% of the bank’s transactions are currently being conducted through the digital channel and half of it is contributed by YONO.