Impact of Artificial Intelligence on Financial Decision Making in Indian Banks

Author(s)	Shekhar Agarwal
Country	India
Abstract	This research explores how Artificial Intelligence (AI) is transforming financial decision-making in Indian banks, particularly in the areas of credit scoring and Non-Performing Asset (NPA) control. The paper compares traditional credit assessment methods such as manual verification, CIBIL-based decisions, and ratio analysis with modern AI-driven models that study behaviour, transactions, and alternative data. Findings show that AI tools are far more accurate, faster, and better at identifying risky borrowers. Secondary data from RBI reports, industry research, and case studies of SBI, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank support the conclusion that AI significantly improves risk prediction and helps reduce NPAs.
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-12-20
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.63720

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