Banking sector news & PSU Bank Updates

Why Bima-ASBA’s adoption may be stuck in limbo

While early adopters have shown the system can work, several insurers seem to continue to grapple with legacy infrastructure, complex bank and UPI integrations and concerns over near-term cash-flow disruption.

Indian rupee hits record low of 89.46 against US dollar on high greenback demand

With this fall, the local currency is down by 0.86 percent against the US dollar as compared to November 20. Indian rupee has seen a biggest intra-day fall of 67 paise, which is highest since May 8, 2025, when it depreciated 89 paise.

Limited uptake hobbles ambition for India's National Health Claims Exchange

People close to the matter said insurers are largely in testing mode, evaluating the cost benefits and operational readiness of the standardised claims infrastructure before committing to full-scale migration

Rupee opens 3 paise up on higher Asian currencies

India’s private banks get another shot at wealth as Deutsche Bank queues up to exit

India’s wealth management industry is a hot bed for growth right now

IndusInd Bank said to have kick started $1 billion equity raise plans

The bank is likely in talks with large sovereign funds such as GIC for a capital raise, expected to be rolled in a month or two, depending on investors’ feedback. Rajiv Anand, MD & CEO, said to be in Singapore currently on roadshows ahead of fund raise.

Financial instability brings bigger long-run consequences than any short-term gains, says RBI Governor

On the Indian rupee front, governor said that the central bank do not target any levels for the local currency and current depreciation is due to uncertainty due to trade leading to rise in demand for dollars.

We do not target any level of rupee; depreciation due to demand for US dollar: RBI Guv Malhotra

The governor also said that the Reserve Bank has "very good" buffers of foreign exchange reserves, and there is no need for concern on the external sector.

MC Poll: RBI MPC may cut rates by 25 bps in December meet as low inflation offers comfort

The MPC will meet between December 3 and 5 for another round of rate setting deliberations.

Rupee opens 4 paise down on rising dollar index amid hawkish Fed outlook

Dollar index, which measures the greenback's strength against a basket of six major currencies, rose to 100.277 in the morning from the previous close of 100.228.

Billionaire-backed IndusInd Bank plans sweeping overhaul after probe

IndusInd’s shares have dropped about 12% this year, compared with a 9% rise in the S&P BSE Sensex Index

PMO meeting on PSB reforms soon as Centre eyes Indian banks among world's top 20: Report

Privatisation of two public lenders, which was announced back in 2021-22, may return to the discussion table

Chart of the Day | Credit growth is healing, what next?

Retail-led expansion and regulatory overhauls are pushing India’s credit cycle in FY26

Government in talks with 7-8 countries for UPI inter-linkage, hopes to conclude next year, says DFS Secretary M. Nagaraju

Nagaraju said past decade has been one of the most transformational in the BFSI.

Despite GST 2.0 cuts, many policyholders say they face higher insurance premiums; 43% report no benefit

While large players such as LIC have publicly stated that they can absorb the impact, the broader industry remains wary of margin pressure, evolving cost structures, and potential product-level recalibration

DCB Bank flexes its growth potential, but investors will reward delivery

The bank has the right mix of granularity in both deposits and loans

RBI targets export relief with precision, but banks face tougher risk calls

By targeting 20 export-intensive sectors, the RBI’s latest move shields industries under tariff assault but lenders now face an even more nuanced risk map

Banking Central | What does RBI's relief package for exporters mean for banks

The central bank’s lifeline to exporters may be timely, but it leaves lenders navigating a far riskier horizon.

RBI offers moratorium for tariff-hit exporters, extends FX realisation window

The central bank has spelt out the 20 sectors that would be eligible for the moratorium, which includes organics chemicals, plastics, apparels, and footwear.

Pollution pushes health insurance claims up 14% post-Diwali across various cities as respiratory, cardiac cases surge

This comes amid long-standing discussions within the industry about introducing city-specific health insurance premiums that factor in air pollution levels as a key risk indicator.

SBI chief backs fresh wave of bank mergers to boost scale and growth

SBI, which is 55%-owned by the government, is seeing signs of an industry-wide revival of capital spending by corporates but pricing for loans is becoming tighter.

‘Third party’ definition under motor insurance may be expanded to include owner-drivers

Sources say, this change is currently being circulated among stakeholders and if approved, is likely to be rolled out in the upcoming winter parliamentary session

Fusion Finance's covenant breach concerns resolved, expect normal audit remarks from FY27, assures CEO

Fusion Finance's CEO said the first tranche of rights issue of Rs 400 crore was fully utilised for disbursements, and not for write-offs. The second tranche of the rights issue will be received by December, which too will be utilized for disbursements.

India's record low retail inflation in Oct opens space for rate cut if H2FY26 growth weakens

India’s retail inflation eased sharply to 0.25 percent in October, its lowest level in the current series that began in 2013, down from 1.44 percent in September.

Banking system liquidity gains wiped out by RBI’s forex intervention, credit growth

Even as factors such as currency in circulation increase, forex interventions and increase in credit demand have been major drivers of a reduction in systemic liquidity. That said, liquidity still remained in the surplus zone -- at around Rs 2.11 lakh crore -- resulting in money market rates staying in the lower end of the curve.

Barclays Bank India to remain a wholesale-focused lender, says CEO Pramod Kumar

Barclays Bank India CEO Pramod Kumar said he is hopeful that the government will address the adverse tax treatment that foreign banks are subjected to, when they choose to operate as a branch in India.

Mahindra’s investment in Manulife insurance JV to be funded via Mahindra Finance dividends, says Anish Shah

The life insurance venture could naturally extend into the general insurance space, which the company plans to evaluate once composite licensing is introduced, CEO Shah has said.

India will continue to see more inbound and domestic interest: Pramod Kumar, CEO Barclays Bank PLC, India

Kumar says he is clear that while investment banking may be core to what Barclays does in the country, corporate banking is getting built as a pillar of strength for the bank

Mahindra-Manulife to invest Rs 7,200 crore in life insurance JV, eyes Rs 30,000-crore valuation

The JV’s valuation potential is projected at Rs 18,000–30,000 crore over the next decade, with the venture expected to be accretive to Mahindra Finance’s return on assets

Mumbai Police EOW finds no fund siphoning at IndusInd Bank, seeks RBI’s final word: Report

Preliminary inquiry finds no criminality or insider trading; accounting lapses seen as omissions, not wilful misstatements.

How a Rs 1,00,000 crore fat finger error at Karnataka Bank is drawing RBI’s attention

While the incident occurred on August 8, 2023, it was escalated to the bank’s board much later and has caught the regulator’s attention in the current year’s annual inspection.

Can banks absorb a rate cut in December?

According to Ace Equity data, state-owned lenders have seen a 6-60 bps reduction in NIMs between Q4FY25 and Q2FY26. Similarly, private banks saw a reduction in NIMs of 6-41 bps, and small finance banks by 10-8 bps.

Apollo Hospitals' insurance arm targets nationwide rollout by FY27

After launching its insurance arm in NCR and Hyderabad, Apollo eyes expansion through digital and call centre-led sales while preparing select in-store rollouts by FY27

Bigger Banks, Bigger Ambitions: Why India must build banks with global heft

Finance Minister Nirmala Sitharaman’s push for a fresh phase of public-sector bank consolidation is a strategic bet on scale, competitiveness and credit depth that India’s growth trajectory now requires.

IRDAI examining feedback on proposal to appoint internal ombudsmen in insurance firms: Ajay Seth

Seth also flagged persistent gaps in health insurance claim settlements, calling for greater transparency and fairness from insurers

RBI recognizes Self-Regulated PSO Association as SRO for Payment System Operators

The omnibus framework contains broad parameters such as objectives, responsibilities, eligibility criteria, governance standards, application process and other basic conditions for grant of recognition, which will be common for any SRO proposed to be recognized by the Reserve Bank.

GDP for H1FY26 seen at 7.4 percent with full-year growth at 6.8 percent, says UBS note

UBS expects India's nominal GDP growth to decelerate to 8.5 percent in FY26, lowest since FY20 (excluding the pandemic), with space for another 25 bps rate cut by the Reserve Bank (RBI) in FY26, before a pause in FY27.

Life insurers’ new business premium rises 12% in October, led by private players

Across categories, individual single-premium rose 6.44 percent year on year to Rs 3,962 crore, while individual non-single premium increased 4.34 percent to Rs 8,871 crore.

Yes Bank emerges as the only top-10 private lender with no ‘buy’ calls

Analysts attribute Yes Bank’s weak earnings and rising retail stress as reasons for negative investor sentiment

Standalone health insurance market nearly doubles even as Star Health’s dominance halves in 5 years to 32%

Star's aggressive shift towards its retail segment, according to experts, may have hurt Star Health’s ability to capture new market opportunities

HDFC Bank’s MFI chief K Venkatesh set to join Spandana Sphoorty as CEO

In April this year, Shalabh Saxena quit the company and stepped down as MD & CEO with immediate effect. Ashish Damani, the then CFO, was elevated as interim CEO.

Indian rupee opens flat on support from Trump’s trade optimism

Amid the ongoing India-US trade deal negotiations, President Donald Trump on Tuesday said that they are going to "bring down the tariffs" imposed on New Delhi.

All you need to know about Non-Deliverable Forward market

NDFs are commonly used by investors to mitigate currency risk in emerging market economies, when the underlying currency is volatile.

RBI ramps up defence of rupee near record lows, curbs excess volatility

Market participants said such operations reflect the RBI’s intent to smooth volatility rather than defend any specific level of the currency, ensuring stability amid periods of excess speculative pressure.

Banks' CD issuances fell sharply by 58 percent in October on comfortable liquidity

Punjab National Bank, SIDBI, Axis Bank, IDFC First Bank and Bank of India remained top five issuers in October raising around Rs 37,490 crore.

Credit guarantee scheme worth Rs 20,000 crore soon for NBFC-MFIs to ease liquidity crunch

Expected to be announced in the coming weeks, the relief package for NBC-MFIs is aimed at providing liquidity support to the sector.

Benign CPI inflation revives rate cut hopes, RBI to weigh growth data before decision

According to economists, the recent easing of inflation cannot be interpreted as a signal of weak demand or an imminent growth slowdown. The drop in inflation is likely due to supply-side improvements and favourable base effect rather than a broad-based economic slowdown.

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