Neutral impactSector
‘Disguised unemployment’ creeping into banking, AI may solve it: Indian Bank MD
Economic Times 2 hrs ago·12 Aug 2026, 7:02 pm
The Indian banking sector is facing a challenge of 'disguised unemployment', where the workforce is not being utilized to its full potential. This issue has arisen despite significant growth in bank balance sheets over the past six years, without a corresponding increase in manpower.
The concern is that the productivity gains from technology may be reaching a plateau, prompting banks to explore new ways to optimize their workforce.
Investors should watch how banks leverage technology, particularly artificial intelligence, to address this issue and improve operational efficiency.
Excerpt from Economic Times
Published On Aug 13, 2026 at 12:32 AM IST Public sector lender Indian Bank 's Managing Director & CEO Binod Kumar sees the emergence of “disguised unemployment” in banking as technology led productivity gains from traditional IT systems begin to plateau, lenders however continue to invest heavily in technology and…Read the original at Economic Times
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