Banking sector news & PSU Bank Updates

How a small Southern bank is outshining peers in profitability

The management’s guidance on margins for FY26 is modest

CCI approves stake acquisition in Bajaj Allianz entities by Bajaj Finserv, Bajaj Holdings & Jamnalal Sons

The financial terms of the transaction have not been disclosed yet

State Bank of India to raise up to $3 billion this year via public offer or debt issuance

The funds will be raised through a public offer or a private placement of senior unsecured notes in US Dollar or any other major foreign currency, or both, said SBI.

Insurance Amendment Bill likely in monsoon session, composite licenses and nod for 100% FDI on cards

The Insurance Amendment Bill is expected to simplify the capital structures of companies by proposing key reforms including composite licenses and increasing the foreign direct investment (FDI) cap.

For banks, arbitrage in TREPS market is opening doors to an easy money route

After the first rate cut, banks enjoyed 10 -33 bps increase in treasury income due to the arbitrage in TREPS market, while after the second rate cut, the arbitrage shrunk a bit to 10-18 bps.

RBI grants in-principle nod to Emirates NBD Bank PJSC to set up wholly owned unit in India

Currently, Emirates NBD Bank PJSC is carrying on banking business in India in branch mode through its branches located in Chennai, Gurugram and Mumbai.

RBI issues revised draft guidelines for bank investments in AIFs

Under the new draft norms, the RBI has proposed that a single regulated entity (RE) contribution to any AIF scheme shall be capped at 10 percent of its corpus. Collectively, a ceiling of 15 percent shall apply for investment by all REs in an AIF scheme.

Reserve Bank of India proposes relaxing rules for investments in AIFs

In December 2023, the RBI had barred REs, including banks and non-banking finance companies (NBFCs), from investing in alternate investment funds (AIFs) that have investments in existing and recent borrowers

SBI cuts fixed deposit rates by 20 bps

The revised rates came into effect from May 16

Six officials of IndusInd Bank under investigation for insider trading: Report

SEBI examining the timing of trades by these six officials to ascertain whether the sales violated regulations, the report said

Shriram Life clocks 42% growth in individual new business premium in March quarter

For the full year FY25, the company achieved a 46.3 percent increase in individual new business premium, which stood at Rs 1,372 crore, compared to Rs 938 crore in FY24

IndusInd Bank inks pact with AIC STPINEXT to support early-stage startups, MSMEs

The bank will offer a specialised current account product with no quarterly average balance requirement, making it easier for startups to manage their finances

Lenders flag off on draft gold loan guidelines to RBI

According to the RBI’s draft guidelines, lenders have to include appropriate single borrower limits and sectoral limits for loan portfolio against gold collateral, mechanisms to ensure end-use of loans, LTV ratio, valuation standards, and standards of gold purity.

Banking Central | Inflation at 6-year low is an opportunity for RBI to give growth another push

If not for the 11% drop in vegetable prices, inflation would hover closer to 4.1%. The RBI will have this in mind when it meets in early June

Indian rupee eases 6 paise at open as dollar index falls

On May 16, Moody's Ratings stripped the U.S. government of its top credit rating Friday, citing successive governments' failure to stop a rising tide of debt.

What is the bilateral impact if India-Turkey tensions escalate?

For India, it’s a bold assertion of strategic red lines. For Turkey, it’s a costly misstep

RBI mulls describing IndusInd Bank’s forex lapses as fraud

According to sources, the regulator is in conversation with the forensic auditor, Grant Thornton, on this matter and is evaluating whether lapses identified in treasury operations should be classified as case of fraud.

Disinflation may temper FPI flows into Indian bonds

Local bond yields trending lower is a disincentive for foreign investors as it narrows the spread between Indian and home market bonds, and usually leads to outflows

IndusInd Bank turnaround may take 3-4 years, growth will take a backseat, says Abizer Diwanji

The banks' auditors too will also need to do a lot of explaining, said Abizer Diwanji, on how the internal controls failed to spot the 'unsubstantiated balances' in its other assets account.

Vault matters | Can banks handle a third successive rate cut?

Despite strong macro signals for a repo rate cut, banks face financial strain and tightening credit risk. A cautious approach to further rate reductions is advisable to safeguard financial stability

IndusInd Bank flags Rs 674 crore interest mis-statement in internal audit

In a stock exchange filing, the bank said it had disclosed on April 22 that the IAD was conducting a review of its microfinance operations after certain concerns were raised.

RBI’s board reviews framework to decide on dividend transfer to Centre

Economists have predicted dividend transfer to the government to be in range of Rs 2.5-3 lakh crore, sharply higher than what the central bank transferred last year, on account of profits made from its intervention in currency markets to stem the decline in the rupee in FY25.

Yes Bank expects Japan's SMBC to maintain at least 20% stake, says CEO

SMBC on Friday said it had signed a definitive agreement to take a 20% stake in Mumbai-based Yes Bank

Narrow India, US bond yield spread may cap FPI investment in Indian bonds

SEBI’s easing guidelines for FPIs may not spur demand in the short run, but easing macroeconomic conditions may give some comfort to these investors

Easing retail inflation helps Indian bonds to trade below 6.30%

India's retail inflation slowed to 3.16 percent in April from 3.34 percent in March. It is the lowest year-on-year inflation since July 2019, the government said in a statement.

Sebi investigating IndusInd Bank officials for alleged insider trading in client companies

Some of the IndusInd Bank officials were getting updates on demerger, credit approval, stake sale, acquisition, big investments in client companies, and had placed trades on the basis of this information before the news became public.

LIC appoints Ratnakar Patnaik, Dinesh Pant as managing directors

They will take over from managing directors Jagannath Mukkavilli and Tablesh Pandey who superannuate at month-end

SBI's executive committee to meet on May 20 to consider raising $3 billion in fresh capital

SBI's proposal for a fund raise comes at a time other private sector lenders, including Axis Bank and IDFC First Bank, have sought to raise capital.

Rupee opens 26 paise down on Asian cues, dollar demand

Currency experts said that in the domestic market there is a buying of dollars from corporates possibly for oil and defence.

States’ borrowing cost via bonds hits over four-year low on RBI rate cuts, strong demand

In the last few months, especially after the start of rate cuts by the RBI, the yield on state government bonds fell by around 47 basis points, and the yield on government securities eased by around 40 bps.

Jio Credit raises Rs 1,000 crore via maiden bond issue at 7.19% coupon

Source said that the company decided to issue the after the rate cuts by the Reserve Bank of India (RBI) to avail the lower rates from the market.

Chart of the Day | Inflation has cooled off, but there’s a catch

A cooling inflation print offers the RBI a golden window — but will it act?

LIC outpaces industry in April with nearly 10% growth in New Business Premium

According to data released by the Life Insurance Council, LIC collected Rs 13,610.63 crore in NBP for the month, up from Rs 12,383.64 crore in April 2024

Non-life insurers' premium grows 13.5% in April 2025, driven by health and general segments

The growth was led primarily by the general insurance and standalone health insurance sectors, while specialised insurers witnessed a notable decline, data shows

Yes Bank's board initiates search for new chief executive

According to sources, the bank’s board has roped in Egon Zehnder to shortlist candidates for CEO position

Niva Bupa targets 6-7% growth rate above market average in FY26: CFO Mahendra

Promoter Bupa increasing its stake in Niva Bupa would depend on liquidity conditions, he said. "We’ll continue to look for opportunities in group accounts, but retail will remain our primary focus," Mahendra said.

Improving CASA share may be challenging this fiscal, says Canara Bank CEO

K. Satyanarayana Raju, MD and CEO of Canara Bank, said in an interview with Moneycontrol that the yield on corporate loans is likely to ease by 10–15 basis points in the coming months due to the RBI rate cut.

FM Sitharaman likely to review PSU banks’ FY25 performance on May 15

The Finance Minister is also expected to nudge banks to strengthen governance, risk compliance, and lending practices, particularly in the context of ongoing heightened global tensions.

Rupee rises 73 paise to 84.65 against US dollar on India-Pakistan ceasefire

On May 10, India and Pakistan agreed to a "full and immediate ceasefire" after days of escalating military tensions.

Shriram General Insurance posts 25% GWP growth and 8% net profit rise in Q4 FY25

For the full fiscal year FY25, SGI’s GWP grew by 24% to Rs 3,753 crore from Rs 3,036 crore in FY24

SMBC to meet RBI this week for Yes Bank stake purchase

The Japanese financial major is expected to file an application with the Reserve Bank of India to acquire a controlling stake in Yes Bank this week. After acquiring 20 percent from SBI and other banks, SMBC will increase its stake by another 31 percent in two more tranches, sources indicate.

Banking News