From lending to treasury, lenders go big on AI for core operations

 82 per cent of organisations are either planning or actively progressing towards AI adoption, according to a survey
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Banks in India are expanding their use of Artificial Intelligence (AI) and Machine Learning (ML) within critical operations, applying these technologies to credit evaluation, customer interactions, product innovation, and treasury functions, say industry executives.

Praveen Kutty, Managing Director and CEO of DCB Bank, highlights the institution’s integration of AI and ML into diverse touchpoints such as chatbots, email systems, voice interfaces, risk control, and product adjustments.

“Advanced speech analytics and AI help assess the effectiveness of customer query resolutions. The sophistication of these interactions makes it difficult to distinguish between human and AI responses, with built-in mechanisms for continual improvement. The applications extend to enhancing customer service, product design, fraud detection, and beyond,” he notes.

Public sector banks

State Bank of India (SBI) is leveraging AI in upgrading its Yono 2.0 platform. A senior official stated, “The goal is to deliver hyper-personalization and bolster fraud detection. We anticipate broader deployment in lending and treasury operations over the coming years.”

Monika Kalia, Deputy Managing Director and CFO of NaBFID, shared that the infrastructure financier employs AI for loan assessments and project oversight. “AI’s role is pivotal in infrastructure lending. Accurate traffic predictions for metro projects—reliant on demographic mapping and development forecasts—could have altered past outcomes. Project-specific monitoring demands robust data and AI systems,” she explained.

“A specialized AI unit is being planned alongside our ongoing IT implementation, which will cover the full project lifecycle from origination to monitoring,” Kalia added. Industry experts point out that microfinance lenders also rely on AI to predict defaults and optimize collections.

An EY India Treasury survey reveals automation as the foremost investment focus for corporate treasury teams. Responses from 85 leaders indicate treasuries are evolving beyond cash management, adopting AI-driven models and shared services to meet future demands.

Per the study, 82% of organizations are either strategizing or advancing AI integration, particularly in forex risk, trade finance, and anomaly detection.

Hemal Shah, Partner and Leader at EY India, remarked, “Economic fluctuations and digital acceleration compel treasuries to balance automation with control. Our findings signal a transition toward AI-powered solutions for cash forecasting, risk mitigation, and operational redesign. By 2030, proactive treasuries will prioritize predictive insights, resource optimization, and organizational stability.”

Published on October 13, 2025