India’s public sector banks (PSBs) are planning to adopt a Global Capability Centre (GCC) strategy by the financial year 2026–27, according to a report by The Economic Times. The move is expected to strengthen technology capabilities, improve operational efficiency, and support the sector’s ongoing digital transformation.
SBI to Lead the GCC Initiative
State Bank of India, which established the first GCC among state-owned banks earlier this year, is expected to guide the implementation of the strategy across other public sector lenders.
The initiative is aimed at creating centralized hubs that can support banking operations, enhance technological capabilities, and enable scalable solutions across institutions.
Alignment with EASE 9.0 Reform Framework
The GCC strategy aligns with the Enhanced Access and Service Excellence (EASE) 9.0 framework, which focuses on modernizing public sector banks through improvements in governance, technology adoption, and risk management.
The reforms are being driven by the Department of Financial Services to streamline processes and improve operational standards across state-run lenders.
Focus on AI and Advanced Technology Infrastructure
As part of the transformation strategy, PSBs are preparing to build core artificial intelligence infrastructure. Key initiatives under consideration include:
- Licensing large language models (LLMs)
- Developing GPU strategies to support AI workloads
- Deploying private cloud infrastructure
- Implementing advanced fraud detection and risk assessment systems
- Exploring blockchain-based banking solutions
A bank executive cited in the report noted that these initiatives are being explored as part of the broader reform agenda to enable banks to deliver more comprehensive and technology-driven services.
Strengthening Data Infrastructure and Resilience
Public sector banks are also evaluating active-active data centre models for potential inclusion in their upcoming five-year business strategies. These models are designed to improve system resilience and ensure continuous service availability.
Additionally, the reform framework will focus on strengthening data governance through initiatives such as:
- Enhanced consent management systems
- Expanded use of data tokenisation
- Adoption of data anonymisation technologies
Industry Discussions Driving the Strategy
Several of these initiatives were also discussed during PSB Manthan, a forum where public sector banks collaborate on innovation and operational improvements.
According to another bank executive quoted in the report, the objective is to enable PSBs to leverage emerging technologies while improving productivity and scaling new business models.
Looking Ahead
With plans to adopt the GCC model and invest in advanced technology infrastructure, India’s public sector banks are preparing to modernize their operational frameworks. The strategy is expected to strengthen technology capabilities, enhance risk management systems, and support the delivery of more advanced digital banking services in the coming years.
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