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Banks want Artificial Intelligence for company lending: Krishnamurthy Subramanian, Chief Economic Advisor

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Hyderabad: Indian banking sector wants to make use of rising applied sciences comparable to Artificial Intelligence (AI) and machine studying for company loans for high quality lending, Chief Economic Advisor Krishnamurthy Subramanian stated on Thursday.

Speaking at a digital summit organised by Intel and Indian School of Business, he stated lending to MSMEs (Micro, Small and Medium Enterprises) within the nation has remained stagnant for the final 15 years indicating that banks haven’t developed fashions to actively lend to the sector.

“So, the Indian banking sector can really benefit from implementing this (AI and machine learning) especially in the context of corporate lending…And evidence shows that when the better models are employed, banks that employ such models are able to grow their balance-sheets in a very robust manner without suffering quality issues. This is a very important opportunity,” he stated.

According to him,banks, together with personal ones, are utilizing these analytical fashions primarily within the context of retail lending and haven’t used a lot in company lending.

Subramanian stated the usage of AI and machine studying within the agriculture sector can allow higher crop alternative and crop diversification that are one of many key points that exist within the nation.

Stating that credit score penetration is low within the nation at 52 per cent to the GDP, he stated even when India grows it by three-fold it could be on the common of the OECD (Organisation for Economic Co-operation and Development) nations, the typical of which is pegged at 160 per cent. Speaking within the summit, Telangana Principal Secretary Jayesh Ranjan stated the state goals to coach 30,000 individuals in AI within the subsequent three years to cater to the demand.

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