India's PSBs turn to AI and automation to stay lean
India's public sector banks (PSBs) are shifting gears, relying more on artificial intelligence, automation, and centralized systems to drive growth.
Instead of hiring lots of new staff like private banks, PSBs are using tech to keep things efficient and their teams lean.
Former SBI chairman Dinesh Khara and former RBI deputy governor SS Mundra say this approach may help PSBs meet demands without necessarily expanding their workforce.
SS Mundra: PSB profits nearly tripled
By centralizing operations and merging banks, PSBs have cut costs and boosted productivity.
These moves have also made them more profitable (Mundra points out that between FY22 and FY26, PSBs nearly tripled their profits thanks to fewer bad loans and smarter processes).
While traditional recruitment continues, Khara notes that PSBs now look for specialists in AI and digital banking, balancing tech upgrades with their mission of financial inclusion across India.