India's largest lender, State Bank of India has found its customers banking on ATMs of competing banks. It is affecting the business strategy, including revenues and recovering the cost on investment made in this alternative channel, according to a State Bank of India official.
During the April-September period, the ATM fees of SBI have declined by 12.35 per cent to Rs 452 crore as compared to Rs 515 crore in the April-September period of the previous year.
The hits per day have also declined to 272 during the April-September period as compared to 285 during the October 2011- March 2012 period.
According to the public sector executive, the alternate channel segment i.e. ATM mode is witnessing rapid changes and is set for intense competition. Public sector banks are going to set 63000 new ATMs and on the other hand non-banking entities have also been allowed to set up and operate ATMs. This will increase competition further more.