Banking sector news & PSU Bank Updates

India’s Insurance sector faced maximum cyber onslaught in FY25

Prominent insurers such as Star Health and Allied Insurance, Niva Bupa Health Insurance, HDFC Life Insurance, Tata AIG General Insurance, and Life Insurance Corporation of India (LIC) have found themselves at the forefront of data breaches

Rising crude oil prices warrants careful observation from RBI on inflation

Usually, as per economists, an increase of $10 per barrel on crude oil prices leads to about 0.4%-0.6% increase in inflation. Barclays in a report said that the sharp ~USD10/barrel increase in crude oil prices since the escalation in Iran-Israel conflict over the past week, if it continues, would put further upside pressure on prices in June.

Growth in deposits outpaces loans; can banks relax their pursuit of depositors?

The retail depositor is more than willing to settle for lower deposit rates towards safety amid uncertain markets.

RBI clears re-appointment of Sandeep Batra as Executive Director of ICICI bank for another two years

Batra has been responsible for Corporate Centre since July 2018. He is responsible for Corporate Communications, Finance, Human Resources, Legal, Customer Service & Secretarial Groups

RBI releases draft directions on Rupee Interest Rate Derivatives, invites comments from participants

These draft directions were prepared by the central bank due to emergence of new products as well as the participation of the non-residents in the market, and to align it with the market and other related developments.

PSU lenders paid 10% more insurance premium to deposit guarantor DICGC in FY25

The increase in bank deposit insurance cover paid by banks comes at a time when a cooperative lender - New India Co-operative Bank - has been facing regulatory action by RBI.

Banking Central| Inflation’s down but don’t pop the champagne yet

India's inflation dips to a 75-month low but can the RBI keep the pressure cooker from boiling over?

PSU banks raised Rs 1,814 crore in green deposit in FY25, majority used for renewable projects

Bank of Baroda raised higher funds through green deposits than its PSU peers, raising Rs 1,063.44 crore in FY25, followed by Punjab National Bank raising Rs 394.31 crore, Canara Bank raising Rs 134.71 crore, and State Bank of India raising Rs 105.92 crore in FY25.

Vault Matters | Is it miscommunication, misunderstanding or the fear of missing targets that’s the root cause of mis-selling?

Mis-selling of financial products is at least a two-decade old problem and a solution is nowhere in sight. Maybe finding a solution is still many years away, but it would be worth trying to find the root cause of the problem

After a year, RBI rejects all bids on sovereign green bonds at weekly bond auction

The last time the RBI rejected bids on the sovereign green bonds was on May 31, 2024, as per central bank’s database.

Ahmedabad plane crash: Travel insurance premiums unlikely to spike, experts say

While the aviation insurance sector faces mounting pressure from global events, individual travel insurance policies are expected to remain stable for now, with only moderate increases projected over the next year

PSU banks earn 15% higher commission from selling insurance, MF products in FY25

The bulk of the fees or commission has come from selling life insurance policies followed by non-life insurance policies, Moneycontrol has found

Bad loan sale, credit shock push Kinara Capital into Rs 351-crore loss, trigger audit red flag

The Nuveen-backed MSME lender sold stressed assets to an ARC at a steep loss in FY25 amid rising covenant breaches and credit stress

RBI gives Yes Bank CEO Prashant Kumar a 6-month extension

The board of the bank has engaged global recruitment firm Egon Zehnder to help find a new CEO

Bond yields surge 5 bps as oil prices spike after escalation in Israel-Iran tensions

Usually, when the oil prices rises, it have an impact on the domestic inflation due to India's heavy reliance on imported crude oil. This dependency means that rising oil prices could lead to higher costs across various industries, ultimately driving up inflation.

Rupee down 55 paise, breaches 86-mark against dollar at the open as Israel strikes Iran

Crude was up over 9% and the dollar index too spiked as Israel struck Iran's nuclear and missile sites, putting pressure on the rupee

Microfinance Q4 a wake-up call for companies, policymakers

India’s microfinance sector is reeling under a client drop, shrinking loans, and rising defaults

RBI introduces STRIPS in state-government bonds

This decision was taken based on consultation with the State Governments/Union Territories and the feedback received from market participants, RBI said in a release.

Privately-listed InvITs must aim to list to attract investors, says Bharat InvITs Association CEO

As of March 2025, there are 26 InvITs are registered with Securities and Exchange Board of India (SEBI). Of this, 21 are privately listed and only five are publicly listed.

New India Assurance, Tata AIG likely key insurers for Air India plane crash; hull insurance likely up to $300 million

Air India’s fleet is insured for $20 billion with a $30 million premium, unchanged from the 2023-24 financial year’s $30 million for $10 billion coverage

PSU bank chiefs see 52-66% y-o-y jump in FY25 salaries

In FY25, state-owned banks’ profitability rose sharply due to higher income from lending, treasury gains and lower provisioning for bad loans.

State-owned banks beat private lenders in CASA ratio for first time in a decade

As stress persists for banks on the deposit mobilisation front, a few banks have tapped the short-term debt market to raise funds through certificates of deposits.

Not giving Sanlam more than 50% stake in Shriram Wealth, says Shriram Capital CEO

Piramal Group, which holds stakes in Shriram’s insurance businesses, is neither actively looking to exit nor in a rush to do so and will take a call as things unfold, says Subhasri Sriram

India to tighten remittance rules, bar offshore time deposits, sources say

RBI will amend regulations to prevent overseas transfers from being used to park money in time deposits or other interest-bearing accounts abroad, one of the sources said.

India’s new payments board aims to drive fintech growth

The RBI’s new Payments Regulatory Board introduces diverse, multi-stakeholder oversight, aiming to modernise payment regulation, foster innovation, enhance inclusion, and potentially pave the way for an independent regulator

Foreign investors pull out over Rs 2,700 crore from Indian bonds as RBI rate cut narrows spread

The spread between India and US bonds stands at 187 bps, which is one of the lowest. Usually, when the spread narrows, foreign investors pull back funds from emerging economies and park it in less risker destinations.

Rupee opens 11 paise up at 85.52 against the dollar

A day earlier, the local currency traded in the narrow 85.51-85.69 range as traders waited for the outcome of US and China trade talks

Chart of the Day | Credit growth falling, can Malhotra’s growth pill do the trick?

RBI’s rate and CRR cuts aim to revive slowing credit growth, but challenges in NBFC and unsecured lending persist. Will cheaper loans spark demand or fizzle out?

Flexiloans bags Rs 375 crore in Series C funding led by Accion, Nuveen, Fundamentum

The Mumbai-based NBFC-fintech firm plans to use the fresh capital to expand operations, enhance product offerings, and strengthen technology infrastructure.

India’s top banks earn Rs 21,773 crore in insurance commissions amidst mis-selling concerns

Of 10 banks surveyed on commissions earned through their insurance arms, seven earned more than half of their insurance commissions by selling policies from affiliated insurers, a report says

India Infrastructure Finance subscribed to 50% of Pimpri Chinchwad Municipal Corp’s green bond

The listing of the Rs 200 crore green bonds of Pimpri Chinchwad Municipal Corporation concluded on BSE, with bids from eight investors, of which five investors got allotment.

Banks may post hefty treasury gains in Q1FY26, helped by RBI rate cut

During Q1FY26, RBI has reduced repo rate by 75 bps to support growth. In response to this rate cut, only 20 bps yields have reduced on the government securities.

End of RBI's daily VRR auction to have little impact amid huge surplus liquidity

On June 9, the RBI discontinued the daily liquidity support to the banking system through daily VRR auctions due to the improving liquidity conditions

Non-life insurance industry sees 6.5% growth in May 2025, demonstrates mixed signals across insurers

Cumulative premiums for April–May (first two months of FY26) reached Rs 55,854 crore

Private life insurers ride on premium products to increase market share even as policy volumes fall

The group insurance segment has emerged as the key growth engine in May, contributing over Rs 19,850 crore which is higher by more than 13 percent from last year.

Why did RBI end daily liquidity support?

Liquidity conditions in the banking system have turned positive since April 1, thanks to a slew of measures, including daily VRR, by the RBI to infuse durable liquidity.

RBI to halt daily VRR auctions from June 11 as system liquidity reaches surplus of Rs 2.75 trillion

VRR auctions fell to Rs 97,861 crore in May, compared to Rs 13,48,316 crore in January, indicating surplus liquidity

RBI’s rate cut: Banks’ lifeline comes with strings attached

RBI’s bold rate cut and CRR slash fuel bank liquidity but pinch margins, leaving investors to navigate a tricky terrain

Jana Small Finance Bank seeks RBI nod to transition into universal bank

The application was made under the regulatory framework outlined in the RBI’s “On Tap” licensing guidelines for small finance banks issued on December 5, 2019, and the latest circular on voluntary transition to universal banks released by the RBI on April 26, 2024

Microfinance 'suffering' from high indebtedness, coercive recovery practices: RBI Deputy Governor Rao

The MFIs must enhance their credit appraisal frameworks to ensure borrowers are not over-leveraged, RBI Deputy Governor said. They must also refrain from 'coercive or unethical' recovery practices, and deliver services a manner that is both 'responsible and sustainable'.

Monetary Policy: Mission accomplished, now over to you

Though the measures appear bold and decisive, they raise two pivotal questions.

MC Explainer | Economy, banks, and us: How the latest RBI rate cut impacts all

A 100 bps rate cut since February 2025 is seen as a positive step to boost demand for loans or consumption. However, the flip side is that deposit rates - especially for retail - are set to trend lower at a time when the overall savings rate itself is trending down.

HSBC, JPMorgan struggle with desk shortages for London offices

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