SBI Mutual Fund Expands Branches and Digital Reach to Grow B-30 Market

SBI Mutual Fund is intensifying efforts to grow its presence beyond India's top 30 cities, focusing on expanding its branch network and strengthening distributor relationships. Manish Mehta, the recently appointed Chief Business Officer (CBO), outlined the fund house's strategy to capitalize on the strong brand reputation of State Bank of India (SBI) and its extensive branch network to attract new investors.

Manish Mehta has taken over the sales responsibilities at SBI Mutual Fund, India's largest mutual fund house with assets under management (AUM) nearing Rs 13 trillion. He succeeds D P Singh, the former joint Chief Executive Officer (CEO), who led sales for close to twenty years before retiring.

"The B-30 market remains a key focus area for us," Mehta explained. "SBI’s wide-reaching network, which includes over 23,000 branches across the country, provides a significant advantage to expand mutual fund participation. We are collaborating closely with the Bank to make investing in mutual funds more accessible and to bring new customers into the fold." The B-30 segment refers to cities and towns outside the top 30 urban centres, representing a large pool of untapped investors.

In addition to leveraging SBI's branch network, SBI Mutual Fund plans to grow its own infrastructure. Currently, the company operates nearly 300 branches, servicing over 125,000 distributors with a sales team exceeding 1,000 professionals. Mehta emphasized the importance of on-the-ground presence, especially in smaller cities where distributors and investors prefer direct, face-to-face interactions with the fund house.

"We will continue to open more branches in these areas," he stated, highlighting the ongoing commitment to physical expansion.

This leadership transition and expansion come amid a period of slower growth for the mutual fund sector. Equity market fluctuations and increasing competition from new entrants have contributed to a more cautious investment environment. According to Mehta, this market volatility has primarily affected new investors who tend to be more anxious. In contrast, long-term investors appear more resilient and accustomed to market ups and downs.

"Discussions with our distribution partners reveal that while newer investors feel more uncertain, our efforts focus on educating them about the benefits of long-term investing," Mehta said. Maintaining investor confidence during volatile periods remains a priority.

Alongside the expansion of physical branches, SBI Mutual Fund is also enhancing its digital capabilities. The firm employs virtual relationship managers (VRMs) and various digital touchpoints to supplement in-person engagement. These digital tools aim to widen outreach and improve investor convenience.

In the fiscal year 2026, the mutual fund industry reportedly added around 8 million new investors, with about 8.5 percent of these new accounts coming through SBI Mutual Fund’s digital platforms. This demonstrates the growing role digital channels play in attracting and servicing investors.

The combined strategy of utilizing SBI's branch network, increasing their own branch presence, and boosting digital interactions positions SBI Mutual Fund to deepen penetration into smaller towns and cities. This approach aligns with broader trends in India's mutual fund sector, where firms are seeking to diversify their investor base beyond metropolitan areas and strengthen relationships with distributors.

As mutual funds become an increasingly popular savings and investment vehicle across India, SBI Mutual Fund’s efforts to expand accessibility and investor education could help sustain growth despite market challenges. By focusing on both physical presence and digital innovation, the fund house aims to meet the evolving needs of a diverse and expanding investor community.