SBI's AI-driven lending generates ₹22,000cr business in Q1
What's the story
The State Bank of India (SBI) has reported a major boost from artificial intelligence (AI) in its lending business. In the April-June quarter, the bank used AI to identify potential borrowers and generated some ₹22,000 crore of business. This amount accounts for nearly a quarter of SBI's sequential domestic loan growth during the period.
Loan categories
AI models focused on specific loan categories
The AI models used by SBI were focused on home loans, express credit, gold loans, and MSME loans.
Once promising leads were flagged by the AI system, SBI's branches and teams worked to convert these into actual loans.
This process has significantly contributed to the bank's overall domestic advances, which increased by around ₹90,000 crore sequentially during this period.
AI integration
SBI leveraging AI for improved customer targeting and loan origination
SBI Chairman C S Setty has said that the bank has been using AI models to improve customer targeting and loan origination.
He further added that these analytical leads are passed on to branches/frontline teams for conversion into business.
This strategic use of technology has helped SBI stay ahead in its lending operations, even amid stiff competition and changes in the corporate loan book.
Business expansion
Retail lending drives SBI's total business beyond ₹110 lakh crore
Despite a flat corporate loan book at ₹14.2 lakh crore, SBI witnessed a major surge in retail lending.
The segment hit ₹17.73 lakh crore, pushing the bank's total business beyond ₹110 lakh crore as of the June quarter.
This growth is largely attributed to the effective use of AI in identifying potential borrowers and converting leads into actual loans.