State Bank of India (SBI), India’s largest lender, faced delays in procuring goods and services from the government-owned GeM (Government e-Marketplace) portal during the fiscal year 2022-23, according to government data. In contrast, smaller counterparts such as Canara Bank and Punjab National Bank outperformed SBI in terms of purchases made from the portal.
The data reveals that Canara Bank emerged as the leading buyer among state-owned lenders during the fiscal year 2022-23, with a total purchase value of Rs 592.82 crore from the GeM portal. Punjab National Bank followed closely behind, securing the second position with purchases worth Rs 164.57 crore. Indian Overseas Bank stood at third place with purchases amounting to Rs 159.82 crore. State Bank of India, although the largest lender, ranked fourth with purchases worth Rs 158.22 crore. Indian Bank, Bank of India, Bank of Baroda, Union Bank of India, Bank of Maharashtra, Punjab and Sind Bank, UCO Bank, and Central Bank of India followed in that order, with varying purchase amounts ranging from Rs 10.26 crore to Rs 4.54 crore during the same fiscal year.
The government data highlights SBI’s relatively slower procurement process compared to its smaller state-owned bank counterparts. GeM portal, a platform introduced by the Indian government, is designed to facilitate the procurement of goods and services for various government departments and organizations. Its efficient and transparent system allows for seamless transactions, benefiting both buyers and sellers.
The disparity in procurement performance among state-owned banks raises questions about SBI’s operational efficiency and its ability to leverage the GeM portal effectively. As the largest lender in India, SBI’s slower pace of procurement could be attributed to its extensive organizational structure and bureaucratic processes, which may impede quick decision-making and hinder effective utilization of the GeM portal.
In contrast, Canara Bank’s top position reflects its proactive approach and agility in leveraging the GeM portal. By swiftly adapting to the platform’s digital marketplace, Canara Bank successfully completed purchases amounting to Rs 592.82 crore. Similarly, Punjab National Bank and Indian Overseas Bank demonstrated their commitment to efficient procurement processes by securing the second and third positions, respectively.
Efficient procurement through the GeM portal offers several advantages, including cost savings, reduced paperwork, and enhanced transparency. By streamlining the procurement process, state-owned banks can maximize their operational efficiency, deliver better services to customers, and contribute to the growth of the Indian economy. Smaller banks have capitalized on these benefits, effectively utilizing the GeM portal to make significant purchases and improve their overall performance.
SBI’s lower ranking should serve as a wake-up call, urging the bank to address its procurement challenges and embrace digital transformation. Streamlining internal processes, investing in technological infrastructure, and fostering a culture of innovation can help SBI overcome its procurement shortcomings. By leveraging the GeM portal more effectively, SBI can enhance its competitiveness, ensure timely procurement, and meet the evolving needs of its customers and stakeholders.
SBI’s slower procurement process from the GeM portal in the fiscal year 2022-23 has placed it behind smaller state-owned banks like Canara Bank and Punjab National Bank. The data underscores the need for SBI to prioritize and expedite its procurement efforts, leveraging the advantages offered by the GeM portal. By doing so, SBI can enhance its operational efficiency, remain competitive, and contribute to the growth of India’s banking sector.
