According to a KPMG International report released in March 2026, Indian banks are benefiting from sustained credit expansion, advanced digital public infrastructure, rapid adoption of AI-based operating models, and tight regulatory oversight on climate risk, cybersecurity and governance.
Based on a survey of 110 global banking and capital markets CEOs, the report finds that 83% of CEOs are confident of growth over the next three years, and 65% consider AI to be the biggest priority for investment. Nearly 70% plan to spend 10–20% of their budget on AI over the next 12 months, 59% expect agentic AI to bring significant change, and 69% expect to see benefits within one to three years.
The workforce priorities are clear: 83% of CEOs are focusing on AI reskilling, 79% say AI has redefined entry-level skills, and 78% warn that a lack of workforce preparation for AI could harm the organization. Globally, lack of cybersecurity has emerged as the biggest threat to development (86%), followed by ethical challenges (56%) and data preparation/regulatory deficiencies (55%).
Sanjay Doshi, partner and head of Transaction Services and Financial Services Advisory, KPMG in India, said Indian banks are following global trends in expanding their reach through strategic M&A and partnerships. “Scale is more than just size—it is a catalyst to expand distribution, accelerate digital transformation, and drive cost efficiency,” he said. As banks invest in technology and modernize their models, integration and collaboration can open up new markets, strengthen services and increase long-term sustainability.
Progress in this area puts Indian banks in a competitive position to address global challenges such as cyber threats and talent shortage while leveraging AI for efficiency, innovation and risk management. This is in line with KPMG’s broader insights on the role of AI in transforming financial services.
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