SBI says AI-driven banking still needs people, skills and leadership
MUMBAI: State Bank of India chairman Challa Sreenivasulu Setty said technology-driven banking cannot succeed without investing in people, leadership and skills, as the country’s largest lender accelerates its technology overhaul.
“Human capital will remain at the heart of our transformation journey,” Setty said in the “path forward” section of the bank’s FY26 annual report, published on Wednesday.
“In an era where technology is reshaping banking at an unprecedented pace, investing in people, leadership, skills and organizational talent becomes even more critical,” Setty said, adding that SBI will continue to strengthen its workforce through focused talent development and future-ready learning frameworks.
Setty’s remarks contrast with a growing trend among global banks to use AI-led restructuring to cut jobs. On May 19, Standard Chartered chief executive Bill Winters said the bank would eliminate around 8,000 jobs over the next four years, replacing “low-value human capital” with technology.
These remarks sparked worldwide outrage, prompting Winters to publicly apologize on May 22 for the “upset” he caused employees, Reuters reported.
The comments also come as SBI embarks on a comprehensive technology-driven overhaul of customer onboarding, operations, lending, asset management and digital services.
Rather than positioning automation as a tool to replace workers, SBI’s annual report framed technology and workforce capability as complementary foundations of transformation.
The report highlighted the bank’s transition to a skills-based talent management framework, as well as efforts to strengthen succession planning and prepare employees for a workplace increasingly shaped by AI-human collaboration.
Alongside its people strategy, Setty outlined an aggressive technology roadmap for the lender.
“Going forward, our strategic priorities will continue to be tightly focused on strengthening our ‘Digital First, Customer First’ approach,” he said. “We will continue to invest in technology, data analytics, artificial intelligence, cybersecurity and digital infrastructure to create a smarter, agile and responsive banking ecosystem.”
SBI said almost 99% of its transactions are now routed through digital channels and the lender’s YONO app has reached 100 million registered users during FY26. The bank also launched YONO 2.0 with a greater focus on highly personalized customer experiences.
Setty said the next phase of the transformation will focus on creating “highly personalized, seamless and intuitive banking experiences across all customer segments and channels.”
The President also emphasized that despite rapid digitalization, physical banking will continue to be an important pillar of the institution’s strategy.
“Our endeavor will be to integrate the power of our branch network with the speed and convenience of digital platforms, thereby creating a truly omnichannel banking experience for our customers,” he said.
SBI also focused on responsibility mobilization, SME ecosystems, climate finance and asset management. The bank has institutionalized the ABCD (All Branches Contribute to Deposits) framework, which aims to strengthen Casa (current account and savings account) mobilization and deposit flexibility.
On sustainability, Setty said climate change resilience and responsible financing will increasingly shape global finance. During FY26, SBI expanded its green loan portfolio to include renewable energy, electric mobility and climate technologies and launched Chakra, a dedicated financing and information platform for climate-focused sectors.
SBI closed FY26 with a standalone net profit of 12.88% YoY increase. ₹80,032 crore, while total business intersects ₹109 trillion underscores the scale at which the lender is trying to balance technological transformation with workforce development.
