YONO generates a quarterly fee income of Rs 100 crore and has the potential to have a Rs 30,000 crore loan book this financial year, State Bank of India chairman Dinesh Khara said. 

The mobile app of SBI gets the fee income by selling products from the parent's subsidiaries. 

Indianbankingnews.com had earlier reported that SBI has no plans to spin off YONO as a subsidiary or list it.

The country's largest lender launched its digital platform in November 2017, initially to serve its 400 million customers. 

Since then, YONO (You Only Need One) has gone on to become such a runaway success that as much as 85% of banking transactions are done through the app, Khara said.

"I am happy to share that YONO gets us Rs 100 crore in fee income every quarter by selling the just commoditised products from our subsidiaries such as the life and general insurance arms, mutual fund and others," Khara, who was speaking at a session at the fifth global fintech summit, said.

When it comes to lending, especially pre-approved personal loans, YONO has sold as much as Rs 21,000 crore in each of the last two financial years.

"Now, we have also extended the pre-approved business loans through YONO and is already grossing Rs 600 crore a month.

"If this run rate is maintained going forward, which I am sure we will, we will be disbursing at least Rs 29,000-30,000 crore this year through YONO. That means Yono will (have) a Rs 30,000 crore loan book, Khara said.

YONO is evolving into a digital bank within the bank, he added.

Despite SBI having 22,400 branches, as much as 85% of the transactions are done on YONO now.

"And what is more (is that) as much as a third of these customers are from the hinterland or semi-urban settings," Khara said, adding that this is a perfect reflection of how technology is being adopted and how we as a nation are digitised.

The chairman also said the bank is working on the next generation YONO, or YONO 2.0, so that the bank is best equipped to offer best financial solutions to its customers.

"What we want is to be in a position to offer products to our customers even before they think about such products," Khara pointed out.