Page 7 - Banking Finance June 2024

BANK UPDATE

"As far as India is concerned, condi- drive specialised use cases," said a her attention on the matter of RRB
tions are shaping up for an upshift in bank executive, who did not wish to be wage revision. Finance Minister has
the real GDP growth, backed by a identified. also been requested to advise the De-
strong investment demand and upbeat State Bank of India, the country's larg- partment of Financial Services (DFS) in
business and consumer sentiments," est bank, is already exploring building the finance ministry to issue the nec-
Khara told reporters after declaring its own large language model to lever- essary notification for the same,
the results for the quarter ended Venkatachalam said.
age the data it possesses. "Each bank
March 2024.
will develop its own strategy and look The recent bipartite settlement involv-
For the current financial year, the Re- at collaborations. This will be part of ing bank employees was signed on
serve Bank of India (RBI) has projected the year-end assessment of banks," March 8 this year.
a real GDP growth of 7 per cent. the executive said. Bankers expect
Khara said consumer price index-based GenAI applications to play a significant Exim Bank eyes $3.5bn
inflation (CPI) has already gravitated to role in credit modelling, data analytics borrowings in FY25
4.9 per cent in March after averaging and cybersecurity.
at 5.1 per cent in the preceding two "Banks can use these new-age models Export-Import Bank of India (India
months. The CPI is expected to mod- to develop digital marketing capabili- Exim Bank) plans to raise about $3.50
erate in the ensuing months and taper ties and tech stacks to source busi- billion in the financial year 2025 (FY25)
to 4.5 per cent in FY25 compared to ness," the executive said, adding that for lending to Indian corporates, over-
an average of 5.4 per cent in FY24. other use cases include engagement seas governments, and institutions, as
In FY24, scheduled commercial banks through social media listening activities well as to manage repayments for
maturing debt.
recorded a credit growth of about 20 to track share of voice, customer sat-
per cent, while deposits grew at about isfaction and brand health. Harsha Bangari, managing director, In-
13 per cent. Khara expects the pace of "The new operating models can fur- dia Exim Bank, said the actual overseas
growth in credit for the industry to ther improve operational efficiency and borrowings would depend on the credit
continue in the current fiscal. the quality of back-office operations," demand and market conditions. While
the executive added. the wholly owned government institu-
PSBs set to develop road tion has the option to issue bonds and
contract loans, the share of each route
map for deploying GenAI Bank employees body would vary based on a cost-benefit as-
systems wants FinMin to revise sessment. The liabilities of nearly $1.2
State-run banks are set to develop a wages for staff of RRBs too billion would be maturing in the finan-
detailed strategy and road map for On the heels of the wage revision for cial year 2025, Bangari Said.
deploying generative artificial intelli- commercial bank employees, the All The bank raised foreign currency re-
gence (GenAI) systems, with pilot use India Bank Employees' Association sources of $3.26 billion equivalent in
cases to be rolled out within this finan- (AIBEA) now wants the Finance Minis- the financial year 2023-24.
cial year, said people familiar with the try to announce wage revision for the
matter. staff of Regional Rural Banks (RRBs).
Join
The lenders will also establish AI- This bank employees body is also now
friendly policies and governance sys- demanding that RRBs wage revision be Online Certificate
tems, focusing on capability develop- made part of the industry level wage
ment, they said, adding that the initia- settlement as they are doing the same Course on
tives are key components of the reform job like staff of commercial banks, CH
agenda of the state-run banks for Venkatachalam, General Secretary, Reinsurance
2024-25. AIBEA told.
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"Banks will look to strengthen the data AIBEA has written a letter to Finance
governance and analytics functions to Minister Nirmala Sitharaman seeking www.smartonlinecourse.co.in

BANKING FINANCE | JUNE | 2024 | 7