Banking News

On May 5, secretary of Department of Financial Services, M. Nagaraju said that the government is studying the judgement and may finalise the next step after consultation with government advocates

6 of 7 private banks face slump in operating profits, margins in Q4 FY25

The decline stemmed from weaker demand in specific loan segments and deliberate efforts by banks to reduce elevated loan-to-deposit ratios. Moreover, this trend may persist.

Indian Overseas Bank expects MTNL account resolution in 2-3 quarters

IOB MD and CEO Srivastava said the bank has made a 100 percent provision on this account from the cushion created on their balance sheet.

DFS Secretary denies plans to merge state-owned insurers

Last week, some media reports had said that the government is considering the merger of four state-owned general insurance companies into a single entity. These companies are New India Assurance, National Insurance, Oriental Insurance and United India Insurance.

IDBI Bank stake sale to get completed by end of 2025: DFS secretary

Government and LIC plan to jointly offload a 61 percent stake in the lender, which includes 30.48 percent held by the Centre and 30.24 percent by the insurance firm

Marquee investors TIAA, Accion, Motilal raise stake in IKF Finance after funding round upsized to Rs 800 crore

Moneycontrol had earlier reported that IKF was in talks to raise $70–80 million from Norwest and a sovereign fund. Sources now indicate that the round has been upsized to $96 million, with fresh capital coming from existing institutional investors, promotors, and Norwest as a new entrant.

Why Kotak Mahindra Bank deserves a place in the core portfolio

Post the lifting of the RBI embargo, the stage is set for acceleration and market share gain as the bank eyes the coveted third spot among private players

Banking Central | How critical is RBI group's proposal to extend trade timings?

Extended trading hours and synchronised settlements aim to boost liquidity and global alignment

Why Supreme Court’s Bhushan Power ruling rattles IBC framework

JSW Steel’s rejected bid and the order for liquidation signal judicial overreach that could undermine the IBC’s core principles

Credit card segment to reach pre-embargo levels in 6 months, Kotak CEO Vaswani says

Kotak expects steady performance in its personal loan portfolio and credit card segment in FY26, CEO Vaswani says

Further rate cuts by RBI will put pressure on bank's margins going ahead: SBI Chairman CS Setty

There is a growing consensus among market participants that the RBI will cut more rates in the coming policies, in order to support growth amid a tariff war, with a cooling inflation providing the elbow room for lower rates

RBI imposes penalties on ICICI Bank, Bank of Baroda, Axis Bank, 2 other lenders

In all cases, the RBI said the penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.

RBI’s working group recommends extending call money market timings

The group, however, has not recommended changing the timings of the government securities, interest rate derivatives, and foreign exchange markets.

Indian Overseas Bank’s Rs 4,000-crore equity capital raise plan to lower govt’s holding to 90%: CEO

As on March 31, government holds 94.61 percent stake in the Indian Overseas Bank.

MC Analysis| Rupee has gained over 2% in 2025

Easing tariff tensions which prompted Trump to say that talks with India were "going great," and the possibility that the two nations could soon reach a deal have helped the local currency.

Indian Overseas Bank Q4 results: PAT rises 30% on-year to Rs 1,051 crore

On sequential basis, net profit of the bank rose 20.3 percent.

Vault matters | What’s behind the growing disconnect between Nifty Bank Index and reality

The Nifty Bank index has outperformed the bell-weathered index by a decent margin across timeframes. The index is clearly exhibiting a sense of optimism, but one unfortunately is not reflecting in the sentiments of those running these banks

FPI investment in G-secs still slow despite pause on Trump tariffs in a sign of caution

According to Clearing Corporation of India’s (CCIL) data, foreign investors investment in government bonds stood at Rs 2.95 lakh crore as on May 2, compared to Rs 3.06 lakh crore as on April 2, before the imposition of Trump's tariffs.

Rupee extends gains, below 84/$ for the first time since October 2024

Currency experts said that inflows into equities and debt, and positive talks between India and US on tariffs is helping Indian rupee to gain

What is ailing ONDC?

The network’s core proposition—to unbundle digital commerce and give businesses direct access to consumers—remains compelling in theory. But in execution, the cracks are increasingly visible

Carlyle launches up to $308 million block deal eyeing exit from PNB Housing Finance

The March quarter profit for PNB Housing advanced 25 percent to Rs 550 crore. It had posted a net profit of Rs 439 crore in the same quarter a year earlier.

States are beneficiaries of softening interest rates

With 50 bps of rate cuts underway, we now expect another 50 bps of monetary easing over the next two-three policy reviews. With this, the WAC of SGS could come down to 6.3-6.5% over the course of the year, maintaining a spread in a range of 30-50 bps over G-sec, over the course of the year

Federal Bank avoids high-risk assets as yields drop, MFI stress to persist for 1-2 quarters: CEO KVS Manian

CEO Manian also says bank remains in a “wait and watch” mode on the MFI segment due to ongoing challenges

Can IndusInd bury its troubled past and move on?

A lot will depend on the type of leadership installed to restore the bank’s health

Chart of the Day | RBI’s liquidity push under Sanjay Malhotra: Fuelling credit growth or falling short?

Liquidity is available but that’s not enough to push up credit growth.

Analysts warn Tamil Nadu MFI lenders may face strain, cite Karnataka fallout

Analysts say that the Tamil Nadu Bill’s vague definition of 'coercive' recovery methods — potentially encompassing persistent follow-ups, late-night calls, or physical intimidation — could lead to inconsistent enforcement.

IDFC First Bank’s micro loan pain may be over as margins show signs of relief

A healthy deposit growth has been a good anchor for IDFC First Bank

RBI’s liquidity injection via OMO purchases to help ease bond yields

On April 28, RBI has announced OMO purchase auctions of government securities for an aggregate amount of Rs 1.25 lakh crore in four tranches

HDFC Bank's market cap only slightly trails Goldman Sachs

Despite differing in business models, HDFC Bank as a commercial bank and Goldman Sachs as an investment bank, the comparison highlights HDFC’s growing prominence

Arun Khurana steps down as IndusInd Bank deputy CEO with immediate effect

Based on the findings of an external agency's probe, IndusInd has estimated an impact of 2.27% on its net worth as of December 2024

UCO Bank to issue 270 crore equity shares in FY'26 to cut govt stake to 75%

UCO Bank, headquartered in Kolkata, has been focusing on improving its asset quality and boosting profitability over the last few years

No disconnect between any parts of the bank: Yes Bank MD & CEO Prashant Kumar

This was in response to reports of differences surfacing between Kumar and the retail banking team. Kumar also reiterated that the restructuring of senior management that recently happened was done keeping in mind the 5-year plan for the bank.

MC Analysis | Leading Indian banks refrain from giving guidance on FY26 growth; first time in many years

The potential for further yield erosion, combined with challenges in deposit mobilisation and rising credit costs, has made forecasting difficult, especially amid global tariff uncertainties.

Go Digit Q4 result: Profit surges 119% to Rs 116 crore

For FY25, PAT more than doubled to Rs 425 crore from Rs 182 crore in the previous year

IDBI Bank reports record net profit of Rs 7,515 crore in FY25, up 33% YoY

The bank's operating profit for FY25 rose 16% to Rs 11,079 crore, while the Net Interest Margin (NIM) stood at 4.56%

Central Bank of India reports Rs 1,034-crore net profit in Q4, up 28%

Looking ahead, the bank targets 12–14% business growth and aims to keep gross NPA below 3% and net NPA below 0.45%, alongside maintaining a NIM above 3% and ROA above 1%.

Wholesale CBDC yet to click with traders, market participants

The RBI launched the wholesale pilot of CBDC on November 1, 2022, to settle G-Secs trades using the digital rupee

Yes Bank’s deposits costs to be at par with larger peers in 2–3 years, says MD & CEO Prashant Kumar

Speaking to Moneycontrol, Yes Bank's Prashant Kumar said the lender is now at a stage where it does not have to make fresh provisioning for asset quality issues of the past.

MC Interview | Galaxy Health Insurance to launch bancassurance in 6 months: CEO Srinivasan

Company to focus on bancassurance, embedded insurance, and wellness products while targeting Rs 200 crore in FY26 up from Rs 17 crore

Banking Central | New India Bank scam is yet another reminder of the rot in India’s co-operative banks

Co-operative banks were to be the financial backbone for small depositors — shopkeepers, pensioners, and salaried workers who trusted these institutions with their life savings

L&T Finance targets 20% growth in FY26, eyes MFI recovery by Q2: CEO Roy

CEO Roy says, the challenges in the microfinance (MFI) sector are coming to an end, with normalcy expected by Q2 FY26

IndusInd Bank board to realign top management after Rs 1,959.98 crore accounting discrepancy

The report identifies incorrect accounting of internal derivative trades, especially in case of early termination, which resulted in recording of notional profits, as the principal root cause for accounting discrepancy

RBL Bank to remain cautious on unsecured lending in FY26: CEO Subramaniakumar

We remain confident that unsecured lending will retain its relevance but at a significantly lower proportion compared to three years ago, CEO says

Bank of Maharashtra plans to raise Rs 7,500 crore in 2025 to reduce govt's stake to below 75%: CEO

Nidhu Saxena also says he is confident that the company will maintain its CASA deposits, despite the falling interest rate environment

It was a calculated decision to grow a less risky retail book: Prashant Kumar, MD & CEO, Yes Bank

Growing the retail book was the only option available to Yes Bank after being placed under a moratorium, says Kumar. The bank opted for a safer but less rewarding path to avoid imposition of the prompt corrective action by the RBI.

Bank of Maharashtra Q4 FY25 Results: Net profit up 22.6% to Rs 1,493 crore

For the full year FY25, Bank of Maharashtra reported a net profit of Rs 5,519.79 crore, up 36 percent from Rs 4,055.03 crore in FY24.

IndusInd Bank’s BCA tied to asset quality, liquidity: Moody’s

To maintain its current BCA, the support of the government may be required, says Alka Anbarasu of Moody's Ratings, speaking to Moneycontrol

Canara Bank and Indian Bank cut lending rates, home and vehicle loans get cheaper

Following the reduction, Indian Bank has cut its home loan interest rates from the existing 8.15 per cent to 7.90 per cent and vehicle loan interest rates from the existing 8.50 per cent to 8.25 per cent.

Stress in personal loans to persist into FY26: Axis Bank CEO Amitabh Chaudhry

While there are indications of a broader normalisation of stress in the retail credit cycle, personal loans to require a few more quarters to improve, says Chaudhry

Axis Bank refrains from providing FY26 growth projections

While we are confident about growth in FY25, we do not give any guidance, CEO says