State Bank of India (SBI) successfully underwrote nearly ₹1 trillion in micro, small, and medium enterprise (MSME) loans in FY26 by leveraging artificial intelligence, according to Deputy Managing Director Amara V. Speaking on the bank’s digital transformation, Amara explained that SBI’s automated Business Rule Engine (BRE) processes data for loans up to ₹5 crore, serving both new and existing customers over a 12-month period. To assess creditworthiness, the system integrates inputs from the Goods and Services Tax Network (GSTN), GST filings, account statements, credit bureau scores, and other unstructured data sources. Importantly, portfolios underwritten via this AI-driven engine have demonstrated lower non-performing assets (NPAs) compared to traditional channels. Beyond credit evaluation, SBI utilizes AI for proactive risk mitigation by using early warning systems that analyze market, sector, and public domain information to spot vulnerable exposures before delinquencies occur. Amara noted that the lender also applies AI technology across fraud risk management, its Security Operations Centre to handle vast IT logs, and its Resiliency Operations Centre to predict and prevent infrastructure breakdowns.
SBI Uses Business Rule Engine to Fast-Track Loans Up to ₹5 Crore
