State Bank of India Chairman Challa Sreenivasulu Setty has positioned human capital at the centre of the bank's technology transformation, even as global banks implement AI-led job cuts. According to the bank's FY26 annual report released Wednesday, Setty emphasized that "human capital will continue to remain central to our transformation journey." The chairman stated that investing in people, leadership, skills, and organisational capability becomes even more critical in an era where technology is reshaping banking at an unprecedented pace. This approach aligns with recent industry guidance from Nvidia CEO Jensen Huang, who advises against stressing "AI-proof" subjects for children, emphasizing that fundamental human skills like storytelling and creativity will remain crucial.
Setty's remarks stand in stark contrast to global banking trends, particularly Standard Chartered's recent announcement. On May 19, Standard Chartered CEO Bill Winters announced eliminating nearly 8,000 jobs over the next four years, stating the bank would replace "lower-value human capital" with technology. As reported by Reuters, this triggered global backlash, prompting Winters to issue a public apology on May 22 for "upset caused" to employees. However, recent developments show some companies are reconsidering their approach - Meta CEO Mark Zuckerberg has assured employees there will be no more company-wide layoffs this year following a major restructuring that affected around 8,000 workers, acknowledging shortcomings in communication during the process.
SBI has achieved significant digital milestones during FY26, with nearly 99% of transactions now routed through digital channels. The bank's YONO app crossed 100 million registered users during FY26, while the lender launched YONO 2.0 with sharper focus on hyper-personalized customer experiences. According to the annual report, the next phase of transformation will focus on creating "deeply personalised, seamless, and intuitive banking experiences across all customer segments and channels." This digital focus mirrors broader industry trends, with companies like Cloudflare laying off over 1,100 employees (nearly 20% of workforce) despite record revenue growth, as CEO Matthew Prince explained the cuts target "measurers" whose roles are being automated by AI.
Beyond digital transformation, SBI has sharpened its focus on liability mobilization, SME ecosystems, climate finance and wealth management. The bank institutionalized its ABCD (All Branches to Contribute to Deposits) framework aimed at strengthening Casa mobilization and deposit resilience. On sustainability, Setty highlighted climate resilience and responsible financing, with SBI expanding its green lending portfolio across renewable energy, electric mobility and climate technologies during FY26. The bank's strategic priorities remain firmly centred around strengthening its 'Digital First, Customer First' approach, with continued investment in technology, data analytics, artificial intelligence, cybersecurity, and digital infrastructure.
SBI closed FY26 with standalone net profit rising 12.88% year-on-year to ₹80,032 crore, while total business crossed ₹109 trillion. According to the annual report, the bank's strategic priorities remain firmly centred around strengthening its 'Digital First, Customer First' approach, with continued investment in technology, data analytics, artificial intelligence, cybersecurity, and digital infrastructure. Setty emphasized that physical banking would remain important despite rapid digitalization, focusing on integrating branch network strength with digital platform speed and convenience.
