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Bank of Baroda MD & CEO Debadatta Chand has called for higher technology and cybersecurity investments

ICICIdirect Research 10 Sep 2026 DISCLAIMER

News: As per media sources, Bank of Baroda MD & CEO Debadatta Chand has called for higher technology and cybersecurity investments as cyber threats become increasingly frequent and sophisticated, noting that attacks on banks occur daily and are a global rather than an India-specific challenge. BoB currently earmarks at least 10% of operating profit towards technology spending, which management indicated may need to increase to ~15%. The comments follow an alleged customer/corporate data leak involving the bank in July. BoB is also expanding the use of AI in customer service, with an upgraded mobile-banking application featuring conversational banking expected shortly, while continuing to collaborate with fintechs for data-led credit assessment and collections. Separately, BoB mobilised ~$8 billion (₹75,200 crore) through FCNR(B) deposits under RBI’s special concessional swap scheme, significantly exceeding its initial target of $4–5 billion.

View: Higher cybersecurity spending is increasingly becoming a structural operating requirement rather than discretionary technology expenditure as banks scale digital transactions and AI-led services. While an increase in technology spending from ~10% towards 15% of operating profit could moderately weigh on near-term cost ratios, stronger cyber resilience should reduce operational, regulatory and reputational risks over the longer term. Separately, BoB’s FCNR(B) mobilisation at nearly 2x its initial target provides a meaningful liability-side cushion, supporting liquidity and reducing dependence on relatively higher-cost wholesale funding.

Impact: Neutral

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