Digital adoption is rapidly reshaping operations at public sector lenders, and Indian Bank is stepping up its technology investments with a strong focus on AI-led platforms, digital lending and automation to drive efficiency and customer engagement.
The Chennai-headquartered public sector bank said it is implementing more than 10 AI and agentic AI-related platforms in partnership with over 160 fintech firms as part of its broader digital transformation strategy.
Indian Bank Executive Director Ashutosh Choudhury told analysts that the bank’s digital business for FY26 has grown 63% to Rs 2.72 lakh crore, highlighting the increasing shift of customers towards digital channels.
Digital adoption gains momentum
The bank’s mobile banking customer base has risen to 2.36 crore, while monthly mobile banking transactions recorded a 15% growth to 65.8 lakh transactions.
Indian Bank also said digital adoption in retail and agriculture lending has reached 97%, indicating that nearly all sanctioned retail and agri loans are now being processed through digital channels.
The bank has also identified a customer segment called VBX, customers who have not visited branches for a long time. According to Choudhury, this customer base has now reached 22 lakh, while the identified potential customer pool exceeds 1 crore.
AI, CRM and corporate digitisation
Indian Bank recently introduced a CRM platform for retail banking and is now preparing to roll it out for corporate banking as well. The platform will integrate service requests and sales management capabilities aimed at deepening customer relationships and improving customer acquisition.
The bank has also nearly completed the digitisation of its corporate credit journey and is now moving to the next phase of digital integration in corporate lending.
Among other initiatives, Indian Bank has partnered with POS aggregators to provide POS machines to customers of other banks. It has also launched a revamped corporate website and is strengthening its IND UPI application, with an upgraded version expected this financial year.
Focus on fraud prevention and automation
The lender has rolled out an EFRM solution, a real-time AI-driven behavioural analysis platform designed to curb digital frauds and detect money mule accounts.
Indian Bank has also introduced IND Optima, its cash management services platform, which has already onboarded over 150 corporate customers.
Going forward, the bank plans to introduce a corporate ecosystem engine to assist relationship managers in customer negotiations, along with an RFP creator for vendor onboarding processes.
The lender is also working on invoice processing automation to streamline validation, approval and payment workflows. Additionally, it plans to deploy intelligent document readers capable of verifying legal documentation during post-sanction processes.
The bank is also automating suspicious transaction reporting and grievance redressal mechanisms through its contact centre and digital platforms to improve turnaround time and customer experience.
Digital channels driving cost efficiency
Indian Bank MD & CEO Binod Kumar said the bank is making significant investments in technology infrastructure, though the full benefits will materialise as digital usage deepens further among customers.
He noted that nearly 94% of the bank’s transactions are now routed through digital channels, helping the lender reduce operational costs substantially.
“ If a customer visits a branch, the cost will be at least five times higher. We would also need more employees. So, even if the benefits are not directly visible, indirectly we are already gaining from digital adoption,” Kumar said during the earnings call.
He added that the bank is actively encouraging customers capable of using self-service digital channels to shift away from branch visits, particularly for routine activities such as fixed deposit creation, which can significantly improve cost efficiencies over time.