ICICI Bank’s recent financial performance highlights a strategic shift towards bolstering its information technology (IT) infrastructure and cybersecurity measures, mirroring the growing importance of these aspects in the banking sector, particularly amidst regulatory scrutiny following actions against Kotak Mahindra Bank.
The bank revealed that it has ramped up spending on IT and cybersecurity, allocating a significant portion of its operating expenses towards these areas. From 5.6% in 2019, the expenditure surged to 9.4% in the financial year 2023-24, signaling a proactive approach to fortify its digital capabilities.
The heightened focus on IT resilience and cybersecurity comes in the aftermath of the Reserve Bank’s stringent measures against Kotak Mahindra Bank, citing “serious deficiencies” in its IT system. The regulatory intervention underscores the criticality of robust digital infrastructure in safeguarding customer service efficiency and preserving the integrity of digital banking and payment ecosystems.
Sandeep Batra, Executive Director at ICICI Bank, reiterated the institution’s unwavering commitment to ensuring IT resilience and customer security, emphasizing that budgetary constraints would not hinder necessary investments in these domains. He emphasized the bank’s readiness to address any outages or errors promptly and continually enhance its capabilities.
A recent incident involving a glitch in ICICI Bank’s mobile banking application further underscores the imperative of robust IT infrastructure. Approximately 17,000 newly issued credit cards were erroneously linked to incorrect users, constituting a fraction of the bank’s credit card portfolio. However, the bank swiftly addressed the issue by blocking the affected cards and initiating the issuance of new ones, reaffirming its commitment to customer protection and prompt remediation of technical challenges.
