The State Bank of India is the country’s largest public sector bank and in the words of its Chairman Dinesh Khara, the bank serves over 47 crore customers and thus it is practically a banker to every household. The SBI has been rapidly growing and it recently recorded the highest-ever profit as well. The public sector bank is upbeat about its future and is likely to grow its network in a bid to add more customers. Thus the bank is also offering you an opportunity to do business with it and what is surprising is that you will have to make either no or negligible investment for the same.
The State Bank has over 28,000 branches across India. But do you know that the SBI doesn’t own all these properties as the majority of it remain either leased or rented? While the SBI keeps looking for appropriate locations to serve its customers more effectively, sometimes it’s required to shift from one location to another as well. So, whenever the SBI requires a new location on lease/rent, it invites tenders from property owners. The property owners are required to submit technical as well as price bids for their property to the bank in separate sealed covers. If the technical bid is cleared, then the price bid is opened and the lowest bidder of the suitable property is contacted by the bank for leasing the property.
According to NoBrokers and various other websites, the rental yield from a property varies from location to location and on the size of the property. The average per month rent paid by the bank varies between Rs 20,000 to Rs 6 lakh in urban areas as and Rs 5,000 to Rs 40,000 in rural areas. The rental value may vary.
As per the bid notice seen on the SBI website, the lease period varies between 5 years to 15 years at first. The same can be renewed later depending upon the mutual consent between the bank and the property owner. However, be mindful that the SBI does not pay rent for the first 30 days or 45 days as it carries out renovation/fitment work after the premise is handed over to it. It takes around 30-45 days in completing the interior furnishing work by the bank.
As per the bid notice, some of the desired specifications of the property are sufficient parking, property on the ground floor, 24 hours water facility, generator power back-up, electricity connection, ready for possession/occupation and premises with more than 10 ft frontage.
To apply, you first need to visit sbi.co.in or bank.sbi and then go to the ‘procurement news’ section. All tenders floated by SBI is listed on this page. You can now search for tenders related to lease/rent and download the bid notice and tender documents. Do read the documents in detail and apply as prescribed by the bank. Do attack all related documents as asked. Do keep in mind that SBI reserves the right to accept or reject any or all the tenders without assigning any reason thereof.
Since the bank carries out fitment work, you need not invest a single penny in your property if it’s inhabitable and in good condition. Once you lease out the property, you will earn lakhs of rupees as rental income sitting at home.