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India’s largest lender, the State Bank of India (SBI) (NASDAQ: SBKFF), is establishing a dedicated unit to manage project financing for emerging industries like artificial intelligence, e-commerce, and finance technology (Fintech), according to Ashwini Kumar Tewari, a managing director at the bank.
According to a Bloomberg report, the bank aims to complete the initiative within a year and will recruit specialized professionals to manage the unit. Additionally, Tewari said the bank is in the process of hiring an external consultant to assist in the project.
The new unit, dubbed the “Center of Excellence for Project Financing,” will focus on these sectors and share valuable insights with other financial institutions, Tewari added.
This new initiative will expand the scope of SBI’s project finance and structuring division, which traditionally focuses on evaluating, structuring, and funding large infrastructure projects. As lending to newer industries and the renewable energy sector continues to grow, these areas are becoming an increasingly significant part of SBI’s project finance portfolio.
Emerging tech to boost banking, economic growth
India is integrating AI across sectors to leverage emerging technologies to achieve its Viksit Bharat goal by 2047. With 1.4 billion people—almost 18% of the global population—the economy of the world’s most populous nation is set to dominate the global economic landscape, maintaining its status as the fastest-growing large economy over the next two fiscal years.
According to a report by PricewaterhouseCoopers (PwC), titled ‘Viksit banking – A roadmap for the Indian banking sector for 2047,’ while the Indian federal government works on infrastructure and broadening banking access, regulators should focus on innovation and addressing the challenges of adopting new technologies, such as blockchain and Generative AI (GenAI).
“The future of the banking sector looks promising, with many banks already on their transformation path, emphasizing digital solutions, innovation, and impact-driven initiatives. However, much remains to be done for the sector to play a central role in the country’s economic development. The next decade is crucial, and banks need to formulate clear strategies to become key enablers of growth across various sectors,” PwC’s report stated.
“The growth of the Indian banking system is largely driven by the adoption of digital technologies, evolving digital public infrastructures (DPIs) and government initiatives,” the report added.
In 2024, India’s Prime Minister Narendra Modi said that new technologies like AI and blockchain have completely changed banking methods.
“In such a situation, we need to think about the changes that will be required in the country’s banking sector and its structure. We may need new financing, operating, and new business models,” Modi said while speaking at the 90th-anniversary celebration of the Reserve Bank of India (RBI).
Bank of Baroda, a leading public sector bank in India, has launched an innovative, generative AI-driven virtual relationship manager (VRM) to enhance the digital customer service experience. A relationship manager typically offers clients personalized advice on investment options and banking services.
This pioneering initiative in the Indian banking sector aims to assist customers by offering real-time information about the bank’s products and services while identifying specific customer needs. Additionally, it will support customers with essential banking tasks such as obtaining account statements, requesting checkbooks, ordering debit cards, and generating interest certificates. The VRM is designed to interact in several languages and is available through various communication methods, including video, audio, and chat interfaces.
According to India’s Economic Survey 2024-2025, India’s rapid technological advancements, particularly in AI, blockchain, and data analytics, are creating new opportunities to revolutionize traditional financial services and operations.
AI and large language models (LLMs) have enhanced customer service through interactive chatbots and personalized experiences, while blockchain enables secure, transparent, and efficient transactions. Moreover, changing consumer behavior and rising expectations—driven by digital-savvy individuals and an increasing demand for customized, seamless, and convenient financial solutions—are motivating established companies and new entrants to innovate to remain competitive.
“Now the world is in the artificial intelligence (AI)-powered digital age, driven by decreasing data storage and processing costs, greater accessibility, and connectivity. These innovations can lead to higher automation and often enhance human decision-making speed and accuracy when correctly managed to mitigate risks,” the Economic Survey said.
“The use cases of AI and Machine Learning (ML) applications by banks in India range across areas such as credit underwriting, regulatory capital planning, liquidity management, fraud detection and prevention, risk assessment and management, portfolio optimisation, pricing models, and chatbots,” the survey added.
In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek’s coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI.
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