Banks must drive inclusive, digital growth: Rajneesh Karnataka

At the FIBAC valedictory session on “India’s Financial Institutions for Viksit Bharat,” Rajneesh Karnataka, MD & CEO, Bank of India, outlined the critical role scheduled commercial banks can play in powering India’s growth journey.

He emphasised the need to make credit more affordable while effectively managing rising funding, technology and operating costs. He also stressed the importance of maintaining broad-based lending across infrastructure, industry, agriculture, MSMEs and retail sectors.

Highlighting the untapped potential in supply-chain finance, Karnataka noted that only around 30% of nearly 14 crore e-way bills generated in July were funded by financial institutions, pointing to significant scope for deeper institutional credit penetration.

He said the future of Indian banking will be digital, yet hybrid and inclusive. Nearly 20% of Bank of India’s loan book is currently digital, while more than 50% of its Retail, Agriculture and MSME sanctions and disbursements are routed through rural and semi-urban branches. This, he said, underlines the continuing importance of assisted banking, wider credit access and tailored solutions for new-to-credit customers.

As India advances towards Viksit Bharat, Karnataka also called for responsible adoption of Artificial Intelligence, expansion of financial inclusion beyond metropolitan centres and a stronger Indian banking presence in international credit and liability markets. Bank of India currently has a presence across 15 countries.

His remarks highlighted a clear road map for the banking sector—combining technology with human touch, expanding access to credit, strengthening inclusion and enhancing global connectivity—to support India’s transformation into a developed economy.