SBI plans to launch loan product “SAFAL” for organic cotton producers

The State Bank of India plans to launch a loan product, SAFAL, primarily focused on organic cotton farmers who have no credit history, a senior official from the country’s largest lender said.

The bank uses artificial intelligence (AI) and machine learning (ML) to a large extent to generate business, SBI chief executive CS Setty said at a fintech conference hosted by the Federation of Chambers of Indian Trade and Industry (FICCI).

“We want to go beyond this so-called retail segment and reach out … like farmers. Today, I don’t just give crop loans … We are about to launch a product called Safe and Fast Agriculture Loan (SAFAL). There is a company that brought all the organic cotton growers together and created a blockchain-based database, ”Setty said.

He added that any buyer of this cotton across the world can check whether the farmer is actually growing organic cotton.

“We just take the data and give them the credit link because they don’t have the credit history. They are not harvest loan borrowers but we have the ability to recover them because technology has brought them together and provided market visibility for them, ”he added.

Citing another example of the use of AI and ML, Setty said the bank made 1.7 million pre-approved loans and that 21,000 crore of businesses were booked under this product during the lockdown.

Observing that the power of data analysis was fully appreciated by the bank, he said, “Our AI / ML department is not an experimental department, it is a business oriented department. We had a net income creation of approximately ??1,100 crore over the past two years. “

At present, he said, the bank has more than 40 machine learning-based models that it uses in all areas for business, risk mitigation and fraud management. .

The bank has built unparalleled capacity in the banking industry, he said.

This story was posted from a feed with no text editing.

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