At FIBAC 2026 in Mumbai, Reserve Bank of India (RBI) Governor Sanjay Malhotra declared that AI can "extend the frontier of bankable India considerably" by analyzing alternative credit data like GST filings, cash flows, and utility bills.
Confirming that this transformation is already underway, State Bank of India MD Rama Mohan Rao Amara revealed that State Bank of India underwrote nearly ₹1 lakh crore ($12 billion+) in MSME loans in FY26 using AI models.
A breakdown of how AI is reshaping Indian credit from policy vision to balance-sheet execution:
→ Alternative Data Underwriting: SBI deployed AI to underwrite MSME loans up to ₹5 crore each, analyzing digital cash flows and GST data to approve credit for both new-to-bank and existing small businesses.
→ Straight-Through Automation: SBI automated routine processing—such as cheque clearances up to ₹10,000—via AI algorithms, freeing relationship managers to focus on complex corporate credit.
→ Real-Time Risk Monitoring: Deploying AI early-warning signals to track market trends, sector shifts, and public data to spot loan stress before default.
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)
-800x450.png&w=3840&q=75)
-800x450.jpg&w=3840&q=75)
