Digital-first banking demands instant, transparent, personalised experiences, pushing institutions to transform models, skills, and technology, said Mr Challa Sreenivasulu Setty, Chairman, State Bank of India at AIMA’s 52nd National Management Convention.

This past year has reinforced a fundamental realisation for me- banking is not merely adapting to change; it is being reshaped by it. And nothing captures this transformation better than the numbers we have seen across FY 2024–25. When I look at the sector’s performance, it becomes clear that this has been a year of reset, resurgence, and renewed ambition.

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Public sector banks collectively posted a record net profit of ₹1.78 lakh crore, marking a growth of around 26% from the previous year. For me, this figure is more than an achievement — it is a signal that India’s banking backbone has regained its strength and is now operating with a sharper discipline. The institution I have been closely associated with reported a standalone profit exceeding ₹70,000 crore, reinforcing that strategic clarity and operational rigour are beginning to show results.

But profit alone never tells the full story. What impressed me most this year was the sector-wide improvement in asset quality. Net NPAs fell to nearly 0.5%, a remarkable drop that reflects tighter risk management, improved underwriting standards, and years of corrective action finally converging into stability. This is the kind of structural progress that shapes long-term resilience.

At the same time, total business volumes surged to over ₹250 lakh crore, reflecting strong credit flow, healthier deposit mobilisation, and renewed economic activity. For me, this was the clearest indication that the system is not just recovering — it is expanding with confidence.

The digital landscape revealed an even more compelling narrative. India recorded over 200 billion digital payment transactions in 2024, with UPI alone accounting for more than 80% of the total payment volume. UPI processed nearly 185 billion transactions in FY 2025, growing over 40% year-on-year. When I consider these numbers, it becomes clear that we are not merely digitalising; we are rebuilding the very architecture of financial behaviour.

This shift towards digital-first banking has elevated expectations dramatically. Customers now want faster resolution, transparent processes, personalised engagement, and seamless experiences — and they want all of it instantly. As someone interacting closely with banking leaders and teams, I have seen how this has forced institutions to rethink their operating models, workforce capabilities, and technology investments.

One of the strongest learnings for me this year has been the centrality of people development in this transformation. Technology can scale processes, but only people can scale judgement. Risk teams need deeper analytical capability. Frontline staff need better communication and customer intelligence. Leaders need agility and sharper decision-making frameworks. Today, capability-building is not a support function; it is the engine of future-readiness.

As I look ahead, I see 2025 as the year where reflection must translate into decisive action. The building blocks are in place: stronger balance sheets, cleaner books, robust digital infrastructure, and a workforce increasingly open to learning. But the next leap will require discipline — discipline in credit quality, digital security, customer service, and organisational culture.

If this year taught me one overarching lesson, it is that banking is no longer defined by products, branches, or even profitability. It is defined by trust backed by capability. And trust is built when an institution consistently delivers clarity, reliability, and value — in every transaction, every conversation, and every decision.

I believe the sector is ready. The momentum is real. The numbers reflect it. And the future will reward those who treat transformation not as a project, but as a mindset.

Watch the full session- https://www.youtube.com/watch?v=y45Vy6MYNAk&t=7s