“This year, we put a budget of about 2,000 crore on the IT side, so that we can transform the bank into a full technical and digital powered bank. The budget for the financial year 25 was also ₹ 2,000 crore, against which we spent 85%,” said the bank’s MD Rajneesh Karnataka, ET.
This is about 12% of India’s total operating costs but is only 2.5% of the total revenue of the financial year 25. The cost-to-income ratio in the bank’s operating costing costs has dropped slightly to 13% of 51%.
While Indian banks have increased the IT budget in recent years, it is lower than global colleagues. In August 2024, a report from the Boston Consulting Group states that global banks usually invest 7-9% of their income on IT systems, while Indian banks only allocate up to 5%.
Analysts say that when it comes to taking technical adoption, the public sector lender is also behind the private allies. However, Karnataka denied this and said that there was a big difference between a private bank and a public sector bank 10 years ago. It is no longer the case and PSB is also a very strong technique and cyber security platform.
Karnataka, who is in charge of the bank in April 2023, focuses on digital initiatives for the purpose of bringing more business and achieving operational efficiency. For example, in the second half of the FY 25, Bank India F -India automated 16 processes, which helped the bank saves about 12,000 manhahrs. “We are doing a lot of automation of tasks, which is very regular.”
In the previous financial year, the bank added 5,200,000 customers on its mobile banking application, taking a total of 9 million.
(Now you can subscribe to our Etmarkets WhatsApp channel)
