Banks report 10-50% gains in productivity, turnaround time and costs from AI-led initiatives
- IBEF
- November 2, 2026
Indian banks are reporting improvements of 10-50% in productivity, turnaround time and operating costs through artificial intelligence (AI)-led initiatives, as lenders increasingly integrate the technology into corporate banking, customer servicing, collections and transaction processing. Axis Bank has recorded productivity improvements of more than 10% in selected customer journeys, while Kotak Mahindra Bank has increased corporate servicing capacity by 20-30% without expanding its workforce. AU Small Finance Bank has reduced the operating costs of its AI-led voice operations by 50%. These initiatives are helping banks automate routine processes, manage higher transaction volumes and improve operational efficiency. At Kotak Mahindra Bank, Project ACE uses AI to classify and route corporate customer requests relating to account servicing, payments, transaction disputes and inward remittances. The bank is also developing predictive tools to help corporate finance teams forecast cash inflows, upcoming payments and surplus liquidity.
Other lenders are expanding AI adoption across their operations. HDFC Bank reported that digitisation and straight-through processing reduced service-delivery turnaround times by 30% during the September quarter, while customer visits per frontline employee increased by nearly 50%. Axis Bank is deploying AI through its enterprise-wide AXIOM platform across customer servicing, operations and decision-making, with AI bots handling nearly 60% of collection calls during the September quarter. Its initiatives include document processing, voice-based AI and generative AI-powered collections. ICICI Bank has developed an enterprise AI platform covering customer onboarding, fraud detection, portfolio monitoring, document processing and customer servicing. These applications are intended to simplify workflows, support faster decisions and improve customer experience. The reported gains vary by bank and business function, reflecting different applications of AI rather than a single industry-wide performance measure. As adoption expands, AI is becoming an important tool for Indian banks seeking to improve productivity, operational efficiency and service delivery.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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