How SBI Quietly Used AI to Unlock ₹52,000+ Cr in Loans — Without Expanding Its Branch Network

SBI has adopted a pragmatic, value-driven AI strategy to scale business without proportional increases in branches or staffing, with a clear focus on generative AI, automation, and robust data platforms. Through its FY25 initiatives, SBI outlined that AI is treated not as a theoretical tool but as a productivity and service multiplier:

• Generative AI is embedded in internal workflows like document retrieval and deceased-claim automation.

• Automation is leveraged across operations such as approvals, compliance checks, and claim settlements.

• A hybrid cloud and secure data ecosystem supports rapid model deployment and high-volume data processing.

• This infrastructure supports digital lending, risk monitoring, and customer experience—all with measurable outcomes attributed to AI implementations.

AI tools powering SBI

1. Spark – SBI’s Generative AI Chatbot for Staff

• Launch: January 1, 2025, per Q3 FY25 Analyst Presentation

• Purpose: Built by in‑house data scientists using open‑source LLMs and hybrid cloud

• Benefits: Speeds up claim processing TAT; reduces manual escalations— for staff-focused chatbots” indicate strong internal adoption.

2. Holistic Internal Documentation Chatbot

• Launch: January – February 2025 (same internal update wave)

• Purpose: Central hub for retrieving internal guidelines, compliance checklists, and document formats

• Impact: Enables faster internal approvals, reduces cross‑department enquiries, and improves compliance adherence

3. ILA – SBI Card’s Interactive Live Assistant

• Live since: WhatsApp and web, with 40+ self‑service features and 60+ alert types

• Key services: PIN reset, EMI conversion, balance transfer, card blocking, statement retrieval

• Reach: 24×7 coverage via web, mobile app, and WhatsApp; AI handles routine queries and common tasks

4. YONO AI Bot – Embedded in YONO/Banking App

• Capabilities: AI‑driven services include EMI conversions, account alerts, and predictive, pre‑approved loan offers

• Result: Fueled ₹52,057 Cr SME loans, ₹17,917 Cr agriculture, ₹8,981 Cr retail, ₹5,891 Cr rural segment loans

• Edge: Anticipatory financing powered by analytics—seamless customer journey from notification to disbursal

Business Impact from AI Adoption

SBI’s AI journey isn’t aspirational—it’s quantifiably improving outcomes. From publicly disclosed FY25 performance materials, here are the hard metrics:

1. ₹52,000 Cr+ in digital loans

• Driven by AI-led pre‑approved lending and predictive scoring across segments like SME, agri, retail, and rural

2. 16% net profit growth

• Profit up from ₹61,077 Cr to ₹70,901 Cr, supported by automation gains from credit underwriting and back‑office AI tools.

3. ₹84,846 Cr advances via analytical leads

• Nearly matches FY24’s ₹1,37,357 Cr benchmark—highlighting consistent momentum from AI-driven targeting.

4. 40+ ILA self‑service features + 60+ SMS alert types

• Comprehensive automation in card servicing—no need for customers to call or visit a branch

Responsible AI & Governance

SBI has publicly confirmed the integration of “responsible AI guardrails” for its internal chatbots, ensuring ethical and compliant deployment. Both Spark and internal documentation bots include these safety mechanisms .SBI’s FY25 AI initiatives have translated into real-world business benefits:

• Operational automation: Internal bots reduced manual burdens and sped up claim and document processing.

• Customer empowerment: ILA and YONO bots enabled self-service journeys across card and personal loan domains.

• Quantifiable impact: ₹52,000 Cr+ in digital loans, ₹1.1 L Cr operating profit, and faster turnaround times.

• Governed deployment: Responsible AI guardrails affirm that ethics and compliance were considered during rollout.

 This positions SBI as a strategic exemplar for AI-enabled transformation in banking.. Banks interested in matching SBI’s outcomes should start by targeting high-volume internal workflows and customer-serving functions with measurable, AI-enabled roadmaps.

Breaking the myth: SBI is not slow—it’s smart and scaling at pace.

From PSU perceptions to AI-powered operations, SBI is reshaping banking with internal and customer-facing intelligence.

Sources:

1. State Bank of India. “Q4 FY25 Analyst Presentation.” May 2025.

2. State Bank of India. “Annual Report FY25.” May 26, 2025.

3. SBI Card. “ILA – Interactive Live Assistant.” Retrieved June 2025.

4. Economic Times. “Integration of AI, Gen AI with financial sector to foster innovation: SBI Chief.” Jan 31, 2025.

5. Business Insider. “How Banks Are Training Employees for AI Adoption With Internal Tools.” May 2, 2025.

6. Analytics India Magazine. “Smart Money: How AI is Disrupting India’s BFSI Game.” May 2025.

7. Times of India. “SBI to deploy 'agentic AI' for customer service.” April–May 2025.