Banking News

Chart of the Day | Decoding the August core sector data

Month-on-month growth tells a more nuanced story than headline numbers suggest

Banking system liquidity turns deficit after 6 months on tax outflows

The RBI has conducted two variable rate repo auctions to inject liquidity in the banking system

L&T Finance hopes to succeed in assessing borrower quality through its underwriting engine

According to Sudipta Roy, MD & CEO, L&T Finance V 3.0 of Project Cyclops processes 1,400 transactions per second as against the 100 transactions processed by V 1.0. Bounce rates for two-wheeler loans underwritten through this system have fallen from 20 percent to 7 -8 percent, he says

Applicative AI and 'techno-managers' will drive future BFSI winners, says Sudipta Roy of L&T Finance

Payments, affordable housing, consumption finance including checkout financing are the new areas of interest for L&T Finance, as they blend with the company’s strategy on delivering return on assets and the risk profile of customers it targets.

Erratic rainfall in some states may dampen asset quality of banks’ farm loans in Q2

In the last few months, some states has recorded excess to 'large excess rainfall' leading impact on kharif output. The heavy downpours have caused flooding and waterlogging in fields, especially during the critical growth stages of the kharif crop

Rupee ends record low of 88.76/USD as H-1B visa fees adds to worries over FPI outflow

The hike in fresh H-1B visa fee from next year has sparked worries over lower remittances, and potential equity outflows from India’s IT sector, which could be a double hit that the rupee could ill afford, at a time when foreign inflows have already been weak.

Rupee hits all time low of 88.49 in early trade on weak Asian cues

Asian currencies were trading down today with South Korean Won down by 0.22 percent, Thai Baht by 0.16 percent, Indonesia Rupiah by 0.08 percent, Singapore dollar, Japanese Yen and Hong Kong Dollar by 0.05 percent each, according to the Bloomberg data.

Rupee opens 9 paise down at 88.19 against dollar

The dollar index, which measures the greenback's against a basket of six major currencies, rose to 97.774 in the early trade from 97.664.

Banking Central | Be watchful in good times to avert bad ones

Most of the past crises erupted not during downturns but amid seeming prosperity, often due to governance lapses, evergreening of loans and regulatory blind spots. Complacency can lead to another Yes Bank or PMC debacle

Back from the brink, Yes Bank says SMBC stake buy creates room for rating upgrade

In March 2020, weeks before the onset of the Covid crisis, the RBI and government staged a rescue act which saw banks led by SBI taking a 79 per cent stake in Yes Bank and helping it stay afloat.

CCIL to explore infrastructure to facilitate trading, settlement for currency beyond USD/INR, says RBI Governor

He also advised CCIL to keep pushing at the frontiers of technology, be ahead of others and provide world-class experience and world-class facilities, world-class risk management and improve upon the trust which they have already built for themselves.

Yes Bank eyes wealth foray after deal with Japan’s SMBC

The push into wealth management comes as the Indian lender deepens its ties with SMBC, Japan’s second-largest lender by assets, which completed its acquisition of a 20% stake in Yes Bank this week

NaBFID is supporting municipal corporations with access to capital market, says MD Rajkiran Rai

In recent months, multiple urban bodies, including tier-II cities, have successfully closed bond issuances for infrastructure projects like water supply augmentation, sewage treatment, and urban transport, with NaBFID playing a strategic underwriting role.

SEBI, RBI in discussion to encourage trading in corporate bond index derivatives, says Ananth Narayan

On the municipal bonds front, he said that from 2017 till date, just 16 issuances have happened amounting to Rs 3,134 crore, which is a mere 0.02 percent of GDP.

Vault Matters | Can a Sumo wrestler play kabaddi? That’s SMBC’s real challenge with Yes Bank

There have always been a lot of apprehensions on what incremental value add a foreign bank can bring to India, more so with the exit of biggies such as Citi and Deutsche from India’s retail terrain. Can Sumitomo Mitsui Banking Corporation help find an answer?

Reserve Bank of India said to urge lenders to cut retail service charges

There are no mandated thresholds on bank surcharges. Processing fees for retail and small business loans typically range from 0.5% to 2.5%, with some banks capping home loan charges at Rs 25,000, according to data compiled by BankBazaar, an online financial marketplace.

Trump tariffs and FII outflows keeping Rupee weak despite dollar's sharp decline this year

The Indian rupee has depreciated around 3 percent in FY26 so far, but experts believe it is not yet a concern for India amid strong external position underpinned by record forex reserves and ample tools with the Reserve Bank of India to stabilise currency.

RBI unlikely to rush into rate cuts despite US Federal Reserve easing, say experts

The RBI is likely to focus on domestic cues such as inflation and growth numbers before taking a decision. The next policy review is due October 1

Rupee opens 9 paise weaker at 88.22/USD as dollar strengthens

The dollar index, which measures the greenback's against a basket of six major currencies, rose to 97.341 in the early trade from 97.348.

Godrej Finance partners with Muthoot FinCorp to enhance credit access for MSMEs

The co-lending partnership will offer loan against property ranging from Rs 10 lakh to Rs 75 lakh, with an average ticket size of Rs 15 lakh, release added.

NaBFID is a success story by combining the right timing, institutional maturity, and strategic clarity, says MD Rajkiran Rai

Our cumulative sanctions to date have crossed Rs 2.5 lakh crore. We’re projecting this to increase to around Rs 3.2 lakh crore by March 2026. These are projects that have already been appraised and committed to, but disbursement happens progressively, especially in infrastructure, Rai said.

Asset monetisation plan needs to be accelerated, says SEBI Chairman

Pandey said that relying solely on the banks and government budgets for infrastructure financing exposes the concentration risk.

Micro-covers turning 'push' insurance into 'pull' products, says Universal Sompo CEO

Regulators are also examining structural reforms such as monoline alongside composite licenses, which could reshape the way insurers operate in India, Mathur says

NBFCs set for bigger role, some could become banks in 5 years, says BCG's Saurabh Tripathi

India's banking sector on cusp of transformation amid growing interest from the Japanese and Middle East financial services and private equities, the BCG's global leader, financial institutions, tells Monyecontrol

Indian bond yield rises 2 bps on US treasury uptick after Fed rate cut

The US Federal Reserve has cut its benchmark interest rate by 25 basis points to 4-4.25% while hinting at two more cuts this year

Rupee opens 16 paise down at 87.97 as dollar index surges

The dollar index, which measures the greenback's against a basket of six major currencies, rose to 97.009 in the early trade from 96.873 after the Fed Reserve's 25 basis point rate cut

PhonePe, Paytm, Cred shut down rent payment services amid RBI curbs

The move follows the Reserve Bank of India’s (RBI) tightened Payment Aggregator (PA) and Payment Gateway (PG) guidelines, issued on September 15, which bar PAs from facilitating payments to entities with whom they lack a direct contractual relationship.

RBI sets up independent advisory group for industry feedback on regulation

The mandate of the Regulatory Review Cell is to ensure that all the regulations issued by the Bank are subject to a comprehensive and systematic internal review every 5 to 7 years, RBI release said.

NBFCs see festive credit growth in top gear, riding on auto loans after GST cuts

Analysts estimate the GST cuts to spur a strong demand for vehicles during Navratri - between September 22 and October 2 - and benefit automakers as well as financiers.

Abundant rainfall to improve agricultural output, keeping food inflation in check: S&P Global

The proposed goods and services tax rationalisation could help bring down inflation and support private consumption, said the report

Reserve Bank sets up committee for periodic review of regulations

The Reserve Bank of India has decided to strengthen the institutional mechanism for review of regulations and has constituted a Regulatory Review Cell (RRC).

PhonePe and SMFG India Credit join hands to offer collateral-free credit to micro-merchants

PhonePe said the collaboration will offer SMICC's lending expertise through PhonePe's reach, enabling easier credit access for underbanked micro-merchants.

Mobikwik swindled by merchants and users in Haryana for 'unauthorized settlements' worth Rs 40 crore

The management said it is 'actively recovering' the unauthorized settled amounts from the affected customers. The incident took place between September 11-12, 2025.

Why investors are holding on to banks despite earnings pressure

Banking shares don’t seem to be fully reflecting the challenges of lenders this year.

Rupee has it best start in 2 weeks, up 23 paise as India, US talk trade

The currency opened at 87.82 against the dollar, 23 paise up from the previous close

Chart of the Day | How food prices silently dictate headline inflation

The food inflation trajectory has quietly reshaped India’s CPI landscape so far this year.

Bankers optimistic of 11-15% credit growth in FY26

Systemic credit growth stood at 10.03 percent year-on-year in the fortnight ended August 22, signalling that banks are ramping up credit ahead of the festival season amid rate cuts and expected consumption boost following GST regime overhaul.

Cholamandalam to scale back fintech, supply-chain financing

The move will curb the AUM growth to 20-23% this fiscal from the previously projected 25-30%, president and CFO Arul Selvan has said

FPI investment in G-sec topped Rs 3 lakh crore: Here are the factors

According to the Clearing Corporation of India’s (CCIL) data, FPI investment in G-sec under FAR route increased to Rs 3.01 lakh crore in this week, as compared to Rs 2.99 lakh crore last week.

KPI Green Energy raises Rs 670 cr via 5-year externally credit-enhanced green bonds

The company is eyeing dollar bond issuances after 2027

Rupee opens 17 paise up at 88.05 as dollar index eases ahead of Fed meeting

The dollar index eased further as the US Federal Reserve begins two-day policy meeting with expectations of a larger-than-expected rate cut

Kotak811 pulls ahead of SBI Yono, becomes third-highest downloaded banking app in world in H1 2025

Unlike India, mobile banking apps have become the go-to apps for financial services across the globe. In India, payment apps are bigger than neobanking apps as the lack of regulatory approval hinders the latter’s growth

Kunal Shah's CRED launches 18 carat gold credit card with IndusInd Bank

Serial investor Shah, was upbeat about the prospects of the new products, especially the Sovereign gold card. “Take a good look because you will probably not see it. Most people will not get it.”

Utkarsh, ESAF small finance banks gear up for equity raise

Utkarsh, which closed FY25 with a net profit of Rs 24 crore, slipped into losses in the Q1 FY26. ESAF’s losses widened in FY25 and it also posted a loss in Q1

Indian rupee depreciation: What you need to know

While the rupee had already been weakening since late last year, most of the heavy depreciation and record lows have come in the current fiscal.

Indian rupee opens one paise higher at 88.26/USD ahead of US Fed's rate decision this week

Dollar held steady ahead of a pivotal week filled with central bank decisions led by the Federal Reserve, while the euro hardly reacted to Fitch's downgrade of France's credit rating.

Rupee depreciates 3.2% in FY26 but not a concern yet amid high forex reserves, say experts

Indian rupee depreciated to 88.2787 against the greenback at close on September 12, from 85.5137 on April 2, registering a fall of 2.77

Banking Central | Why investors must not ignore RBI’s warnings on crypto

The RBI has been warning for years, flagging the role of cryptocurrency in laundering, terror finance and tax evasion

Why August CPI inflation jump could be a false alarm for MPC

Headline CPI edges up to 2.07% after 10 straight months of decline, but GST relief and food deflation argue for further easing

Banks face car loan cancellations in run up to September 22 GST rate cut-off date

Compensation cess on automobiles will cease to exist effective September 22.