Indian banking leaders must transition from preliminary artificial intelligence (AI) experimentation to full-scale operational implementation that delivers measurable business outcomes, top bank executives emphasized on Monday, October 26, 2026.
Speaking at the Business Standard BFSI Insight Summit 2026 in Mumbai during a panel titled ‘The AI Factor in Banking’, key leaders—including Rajiv Anand (MD & CEO, IndusInd Bank), R. Subramaniakumar (MD & CEO, RBL Bank), and V. Vaidyanathan (MD & CEO, IDFC First Bank)—discussed how artificial intelligence is reshaping lending models, employee productivity, and risk governance.
Transitioning From AI Pilots to Core Operations
Addressing the current state of technology adoption across the sector, R. Subramaniakumar noted that while Indian banks lead in digital capability, the focus must shift strictly toward practical deployment.
”The RBI is very clear: you have to move from experimentation to implementation,” Subramaniakumar stated, emphasizing that AI should augment human intelligence rather than replace human judgment, particularly through specialized, domain-specific models.
Rajiv Anand stressed that AI adoption should be driven by business problems rather than trend-chasing, highlighting two primary objectives: enhancing customer experience and elevating operational productivity.
”I don’t think we should be too worried about whether Indian banks are behind or forward… The technology now has the ability for us to completely reimagine journeys,” Anand said, adding that efficiency gains will likely be passed on to customers via lower costs and faster services rather than expanded margins.
Revolutionizing Lending and Securing Data Governance
The panellists highlighted AI’s transformative role in credit evaluation. V. Vaidyanathan detailed how AI enables lenders to analyze unstructured data—such as storefront photographs and recorded customer interactions—to evaluate borrowers without relying solely on traditional financial documentation.
”Every bank should have a policy on AI,” Vaidyanathan remarked, pointing out that Indian banks currently allocate roughly 10% of their operating expenditure toward technology infrastructure.
However, bank leaders warned that scaled deployment requires strict auditability and data governance. Panellists emphasized that accountability for AI-generated decisions remains entirely with financial institutions, requiring clear audit trails, robust cybersecurity protections, and operational safeguards for model failure.
