India’s largest commercial bank, State Bank of India (SBI) and Bharti airtel announced the forming of a joint venture to offer mobile banking services to the unbanked.

Speaking on the occasion, O. P. Bhatt, Chairman, State Bank of India said, “State Bank of India has always been in the forefront of Financial Inclusion initiatives. More than 67% of its massive (13,000) branch network is in rural and semi urban areas. In the last four years, the bank has set up more than 15,000 Customer Service Points of Business Correspondents as well as 13,000 Business Facilitators, to increase its outreach. The Bank has already reached out to more than 1 lakh unbanked villages. This joint venture which brings together the commitment of two of India’s greatest institutions, one in the financial services sector known for its innovation and dedication to the under privileged sections of the society, the other in mobile telephony whose drive for growth and excellence is unmatched, will enable the bank to fulfil its mandate of reaching out to every Indian leveraging the distribution network of airtel to provide banking services in a cost effective and secure manner. With this, we look forward to taking the benefits of banking to the Indian masses and building a more inclusive society thereby carrying forward State Bank’s vision of being the Banker to every Indian.”

Commenting on the partnership, Sunil Bharti Mittal, Chairman and Managing Director, Bharti airtel said, “This historic collaboration between SBI and airtel brings together two sectors that have made the most impact in addressing inclusive growth. The services offered by the JV will enable financial inclusion and economic empowerment for people across India. This will be a complete game changer, leveraging SBI’s expertise in the banking sector along with airtel’s 150 million strong customer base and ecosystem of over 1.5 million retailers and distributors across India. Together, we will create a scalable operation that will address the banking requirements of millions of Indians through the mobile platform.”

The JV incorporation between SBI and airtel will be concluded by 31st March, 2011.