Bank Of India Sees Credit Growth At 11-13% In 2025-26, Flags Cyber Fraud Risks

India’s banking sector is likely to clock credit growth of 11-13% in 2025-26, supported by strong GDP expansion, Bank of India MD Rajneesh Karnatak said Friday at the IMC Banking and Finance Conference. He noted India’s GDP growth is expected to be around 6.5% in the current financial year, citing RBI data.

Karnataka also highlighted concerns over cyber frauds involving dormant or inactive accounts. “Some unused accounts are being used as mule accounts for cyber frauds,” he said, adding that the RBI has launched an AI tool, MuleHunter.ai, to flag such activity.

Unlike traditional systems, MuleHunter.ai uses machine learning to identify suspicious transactions, helping banks trace illicit funds and strengthen fraud defences. Early pilots of the tool have been “extremely successful,” RBI Deputy Governor Swaminathan J. had earlier said.