Page 55 - Banking Finance October 2025

ARTICLE

the need for robust cybersecurity frameworks through The Future of Security Frameworks in
circulars and guidelines. With increasing digital adoption
under initiatives like Digital India, banks face heightened Banking
cyber risks. For example: As banking continues to embrace emerging technologies,
Digital Loan Processing requires frameworks to secure the role of frameworks will only grow. Trends likely to shape
sensitive customer data. the future include:
Integration with AI and Automation: Framework-
UPI Transactions must remain resilient and available,
driven controls will increasingly rely on AI for threat
making ITIL's incident management practices highly rel-
detection and automated response.
evant.
Cloud Security Alignment: With more banks moving to
Regulatory Audits increasingly look for alignment with
frameworks like NIST and COBIT to ensure global best the cloud, frameworks will adapt to ensure compliance
in hybrid and multi-cloud environments.
practices are followed.
Focus on ESG (Environmental, Social, Governance):
Several leading Indian banks have already embedded these Governance frameworks like COBIT will expand to ad-
frameworks into their IT and risk management strategies, dress sustainability and ethical concerns.
improving resilience and meeting both domestic and inter- Global Convergence: Regulators may increasingly ex-
national standards. pect banks to align with internationally recognized stan-
dards like NIST and COBIT.
Challenges in Implementing Frameworks
While beneficial, adopting frameworks is not without chal- Conclusion
lenges: In the digital-first banking environment, frameworks such
1. Cost and Resource Intensity - Implementation requires as NIST, ITIL, and COBIT are not optional; they are indis-
skilled professionals and investment. pensable. They provide a structured, consistent, and globally
2. Complexity - Adapting multiple frameworks to a large- recognized approach to tackling cyber risks, ensuring com-
scale banking ecosystem can be complex. pliance, enhancing customer trust, and driving operational
excellence.
3. Change Management - Resistance to new processes
and cultural barriers can hinder adoption. Banks that embrace these frameworks are better positioned
4. Continuous Updating - Frameworks evolve, and banks to not only defend against threats but also to innovate
must regularly update practices to stay compliant. responsibly and compete effectively in the global financial
marketplace. In short, frameworks provide the bridge
Overcoming these challenges requires leadership commit- between security, governance, and business growth,
ment, skilled professionals, and a culture that embraces ensuring that banks remain resilient, trustworthy, and
governance and security. future-ready.

PSBs hike home loan spreads to shield margins amid rate cuts
Public sector banks like SBI and Union Bank have raised spreads on home loans to protect margins, even as RBI's
rate cuts continue. SBI's home loan rates now range between 7.5% and 8.7%, up 25 basis points, with similar hikes
by Union Bank. Unlike earlier, where new borrowers got cheaper rates, this time new borrowers face higher costs
while existing customers benefit from rate cuts due to regulatory mandates. This is due to sticky deposit rates, es-
pecially for banks with large retail deposit bases relying on fixed income.
PSBs had earlier expanded mortgage portfolios aggressively to gain market share from private players. But as de-
posit costs remain high and lending rates drop, margins are under pressure, forcing a shift in strategy.

For SBI, which has Rs. 8 lakh crore in home loans, even small tweaks in spreads significantly affect returns, making
ultra-low-rate lending increasingly unsustainable.

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