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Informist, Tuesday, Aug. 11, 2026

 

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--PNB MD: AI models should be transparent, unbiased
--CONTEXT: PNB MD Ashok Chandra speaking at FIBAC 2026
--PNB MD: Banks need to engage with experts on AI usage
--PNB MD: Need human supervision, control over AI tools
--PNB MD: AI to supplement, strengthen existing credit rating model
--Bank of Baroda MD: Looking at AI for financial inclusion
--CONTEXT: Bank of Baroda MD Debadatta Chand speaking at FIBAC 2026
--Bank of Baroda MD: AI can bring cost of operation lower
--Bank of Baroda MD: Customers very happy with AI transition in banking
--DBS Bank MD: AI training should be need-based
--CONTEXT: DBS Bank MD Rajat Verma speaking at FIBAC 2026

 

MUMBAI – Banks need to build robust artificial intelligence framework with proper governance norms, Punjab National Bank Managing Director and Chief Executive Officer Ashok Chandra said Tuesday. "There has to be very clear board-level AI governance framework in the bank. There has to be monitoring committee at each level. At bank level, you may not have that much expertise, so you need to engage some outside consultants, experts for usage of AI," Chandra said at Financial Institution Benchmarking and Calibration 2026.

 

"Whatever models we are developing has to be under human control. At no point in time the situation should come that they have started behaving differently. We should be in full control when we are developing those tools, it has to be under the guidance, under the supervision of the human. Ethics and moral values of the organisation – that has to be top most priority," he said. 

 

Chandra said it is important for banks to ensure that decisions based on artificial intelligence are auditable and transparent. He also said there should not be any bias against any demography in artificial intelligence models.

 

Senior bankers said artificial intelligence is being used for various functions related to core operations as well as staff training. "Artificial intelligence has a big role to play in terms of meeting the inclusive agenda for banking and because of the scale...I think artificial intelligence can play a big role," Bank of Baroda Managing Director and Chief Executive Officer Debadatta Chand said. He added that artificial intelligence enables banks to develop underwriting models while bringing down the cost of operations. 

 

Chandra said Punjab National Bank was using artificial intelligence to supplement and strengthen the existing credit rating model.

 

DBS India Managing Director and Chief Executive Officer Rajat Verma said artificial intelligence should not be used indiscriminately, as the cost may climb up quite rapidly. "Exponential movement of cost of tokens can happen. You might think you're making X dollars in the last quarter. Suddenly, you'll be 100X if you don't control it. So, clearly, there is a need to think about what to tokenise, what to cache," he said, adding that artificial intelligence training should be need-based.  End

 

Reported by Sagar Sen and Radhika Tiwari 

Edited by Avishek Dutta

 

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