New Delhi, Aug. 12 -- State Bank of India (SBI) used artificial intelligence (AI) and digital data to underwrite nearly Rs.1 trillion of loans of up to Rs.5 crore each to medium, small and micro enterprises (MSMEs) in fiscal year 2026 (FY26), reducing the workload of relationship managers. The bank has also seen lower delinquency in the portfolio underwritten through its business rule engine (BRE), managing director Rama Mohan Rao Amara said.

The scale of AI-assisted underwriting marks a shift in how the country's largest lender is processing smaller business loans, with technology taking on much of the information-gathering and preliminary analysis that relationship managers previously handled.

"We were able to, using AI, underwrite a ...