SBI Chairman Highlights Focus on AI, Cybersecurity, and Digital Transformation at WEF

SBI Chairman CS Setty emphasized the bank's commitment to adopting emerging technologies, enhancing cybersecurity, and promoting sustainable finance amid global uncertainties. Speaking at the WEF in Davos, he highlighted robust bank credit growth, significant digital transformation, and supportive fiscal policies benefiting India's banking sector.

State Bank of India (SBI) Chairman CS Setty expressed the bank's growing emphasis on emerging technologies, including artificial intelligence (AI), reinforcing cybersecurity, and sustainable financing at the World Economic Forum (WEF) in Davos. He highlighted that these developments coincide with global economic and geopolitical challenges influencing discussions at the forum.

Setty noted that SBI has been a long-time participant in the event, aligning its objectives with ever-changing themes. Recently, dialogues focused on the incorporation of AI, cybersecurity measures in financial services, sustainable finance, and decarbonisation, alongside discussions on geopolitical disruptions.

Discussing domestic banking, Setty observed that credit growth remains strong despite liquidity concerns, citing Reserve Bank of India (RBI) data indicating a 12-13% credit growth, which aligns with nominal GDP growth. Although credit remains robust, Setty indicated that deposit growth is a primary focus for banks.

Setty mentioned that RBI has ensured adequate system liquidity and indicated ongoing support in collaboration with the central bank. Furthermore, banks have gained from fiscal initiatives like GST rate cuts and income tax reductions, spurring savings and consumption credit.

On digital fronts, Setty revealed a significant shift from branch transactions to digital channels, with 97% of transactions happening digitally. SBI aims to expand its digital platform YONO, targeting growth from 100 million to 200 million users, while ensuring security and customer protection.

Regarding monetary policy, Setty suggested a potential pause in rate changes, anticipating no actions in the immediate term.

(With inputs from agencies.)