00000nam##2200000#a#4500045314SLIM2120260615110600.0260615s 0000 00eng dDr Jyothi G HAI in Cyber Risk Management for BanksDr Jyothi G HIn The Indian Banker 2026-07-01 [Vol. XIII Issue. 11]. 2026-07-01. The banking sector plays a foundational role in the economic architecture of any nation, acting as the primary channel for financial intermediation, credit distribution, and monetary policy transmission. In India, the performance of the banking sector is intricately linked to the country’s overall economic growth, financial inclusion, industrial development, and macroeconomic stability. Over the years, Indian banks, both public and private, have shown remarkable resilience and adaptability amid global uncertainties, technological disruption, and evolving regulatory frameworks. The sector has demonstrated a robust recovery post-COVID-19, with improvements in key financial indicators such as profitability, asset quality, and capital adequacy. According to the Reserve Bank of India (RBI), during the financial year 2023–24, the Gross Non-Performing Asset (GNPA) ratio of Scheduled Commercial Banks (SCBs) declined to its lowest in over a decade, reflecting improved credit discipline, recovery efforts, and digital monitoring. Furthermore, net interest margins have strengthened due to stable interest rates and increased lending activity, particularly in retail and MSME segments. Additionally, the digital transformation of banking, supported by initiatives like Digital India, UPI, Jan Dhan Yojana, and Aadhaar-based banking, has enhanced operational efficiency, customer reach, and financial inclusion. Over 500 million Jan Dhan accounts and the widespread adoption of mobile banking have revolutionised how financial services are delivered to the underserved and unbanked population, thereby contributing to inclusive economic growth. While private sector banks remain at the forefront of innovation, public sector banks are seeing a revival in their performance as a result of reforms, recapitalisation, and mergers. Credit growth has shown positive momentum, driven by increased demand from sectors like infrastructure, housing, and agriculture. The banking sector’s performance has also contributed significantly to India’s GDP growth, employment generation, and capital formation, proving its critical role in nation-building. However, challenges remain, ranging from cyber threats and regulatory compliance to ESG integration, climate-related financial risks, and the need for continuous technological upgradation. Strengthening governance, improving risk management, and aligning with global sustainability standards will be key to enhancing long-term performance. In view of the above, the Indian banking sector stands as a strong pillar of the economy, with its improving performance acting as a catalyst for sustained economic growth and resilience. Banks are well-positioned to support India’s vision of becoming a 5-trillion-dollar economy and achieving Viksit Bharat @2047 by embracing innovation, transparency, and inclusive practices.Dr Jyothi G HNAENGRM045314Y