Banking News

In terms of financial health, banks are in their best shape in at least a decade, valuations of large banks are fair. Bank stocks may be bearing the brunt of indiscriminate selling triggered by global factors

Banks borrow lowest funds via daily VRR auctions on March 4 since inception of instrument

However, despite today’s borrowing by banks was lowest, but the banks have borrowed less amount at 21 auctions than notified amount, out of total 31 auctions.

Galaxy Health Insurance hopes to improve coverage with Galaxy Top-up

The plan features a unique “Premium Promise” that locks premiums until the policyholder either turns 55 or files their first claim, whichever happens first.

Without embracing technology, companies will not exist, says KV Kamath

KV Kamath said companies should recognise the speed of changing technology in the context of risk, so that they are not left behind. He said managements must counsel their companies about the rate of change of Artificial Intelligence, and how businesses are going to use it.

What does RBI’s corporate performance data in Q3 tell us about India Inc's health?

Manufacturing firms have seen wage expenses surge by 9.5%, whereas staff cost of non-IT services companies jumped 12.4%—a sign of both a robust job market and an impending squeeze on profitability.

IRDAI to expand distribution framework, eyes embedded insurance boom

Expanding sales avenues will enable insurers to enhance accessibility and cater to a more diverse consumer base, Bathwal says

Private banks more successful than PSU banks in attracting deposits this fiscal

A lower deposit growth this fiscal has meant that PSU banks have lost the deposit market share by 10-70 basis points (bps) on-year, the IIFL Capital report said.

ICICI Prudential Life launches ICICI Pru GIFT Select amid market volatility

According to a press release, the product allows customers to customise their income stream by choosing when the payouts begin, their duration, and the final maturity amount

FlexiLoans to disburse Rs 100 crore to women-led MSMEs in 2025, sees 130% growth in women borrowers

The company has disbursed over Rs 500 crore in loans to women entrepreneurs since its inception, reflecting a 2.3x increase in annual women borrowers between 2019 and 2024.

Mizuho and KKR chalk out at final deal terms for Avendus Capital

With a valuation upwards of Rs 6,000 crore, Mizuho Financial Group is the clear frontrunner to pick up controlling stake in India’s homegrown investment banking business, Avendus Capital.

Banking Central | Third quarter GDP numbers make a strong case for continued policy support

Growth has recovered but remains below desired levels. For the momentum to hold, more monetary easing and fiscal support is needed amid mounting global trade uncertainties

Loan against gold jewellery saw fastest growth among personal loans in January, shows RBI data

Bank credit to personal loans, vehicle loans and credit card outstanding declined in January, leading to a deceleration of personal loan growth.

RBI imposes penalty on The Hongkong and Shanghai Banking Corporation and IIFL Samasta Finance Limited

A penalty of Rs 33.1 lakh has been imposed on IIFL Samasta Finance Limited for non-compliance with certain provisions of the ’Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’ and Know Your Customer (KYC) Directions.

Rebound in December GDP, likely lower February inflation spurs hopes of another RBI rate cut in April

The GDP growth rebounded in the December quarter after sinking to a seven-quarter low, and with a lower reading on inflation expected in February, economists are penciling in a higher probability of a RBI rate cut in April.

Carlyle, Advent among PE investors interested in Axis Bank's NBFC subsidiary

Axis Bank, according to sources, is open to offer controlling stake in Axis Finance to potential investors. The bank is keen to close the deal with financial investors and talks are on with private equity firms.

Insurers reluctant to launch IPOs amid RBC implementation and stake dilution concerns

According to sources, shareholders of unlisted insurance companies do not want to go public till they see a valid case for valuations to increase or the need for capital raise to be compelling enough.

RBI conducts forex swap worth $10 billion to inject liquidity

The Reserve Bank of India (RBI) said it received 244 bids during the auction and 161 of them were accepted for amount totalling USD 10.06 billion

Vault matters: New leadership at RBI is rearranging priorities

As much as it’s true to say that give the Governor six months for him to be one of RBI in approach, the reverse is also equally true. There is a reason why it matters who helms the central bank. The question, however, is whether Governor Malhotra’s regulatory changes are a bit premature

NBFCs cheer RBI's move to reverse higher risk weights, but analysts don't see aggressive lending just yet

Analysts at Motilal Oswal Financial Services estimated that banks in their coverage universe could see an increase of 20–250 bps in CET-1 capital ratios due to the policy shift

RBI closely monitoring capital position of small finance banks, few may be forced to shore up buffer

As many as 3–4 small finance banks may be required to raise capital in the next 6–12 months owing to asset quality issues plaguing the micro lenders, sources familiar with the development have said.

StanChart chosen as dollar settlement bank at GIFT City

Banks having units in the GIFT City have been asked to set up trading accounts with the British bank, said the people, who asked not to be identified as discussions are private.

MC Explainer: How the RBI’s USD/INR swap auction may ease liquidity crunch

The central bank is set to conduct $10 billion USD/INR Buy/Sell swap auction for a tenor of 3 years on February 28. This move will inject rupee liquidity for longer duration in the banking system of roughly Rs 85,000 crore.

Rupee falls 19 paise against the dollar to 87.39

The dollar index, which measure American currency's value against six major global peers, rose to 106.621 in the early trade

Currency derivatives open interest rises as rupee volatility spurs hedging

According to the Bloomberg data, the Indian rupee has depreciated to 87.2025 against the US dollar as on February 26, as compared to 83.8213 on October 3, 2024.

Insurers say proposed 1-year free-look period could lead to financial setback for industry

The extended FLP will empower policyholders by giving them more time to assess their policies but will lead to financial setbacks for them, say insurers

Centre prepares blueprint for up to 20% stake sale in 5 public sector banks: Report

The move is being planned to meet the Securities and Exchange Board of India’s (Sebi’s) minimum public shareholding norm, the newspaper said

NBFCs get breather as RBI restores risk weights on loans from banks

Also, the RBI decided that microfinance loans in the nature of consumer credit shall also be excluded from the applicability of higher risk weights

Microfinance sector’s portfolio at risk 31-180 days rises sharply to 6.4%

Banks and small finance banks’ PAR 31-180 rose to 6.8 percent and 7.2 percent respectively as of December 31, 2024, compared to 2.3 percent and 2.8 percent, a year ago.

Mahashivratri bank holiday 2025: Will banks remain open or closed today? Check complete city-wise RBI list

It should be noted that not every city will observe a bank holiday today, February 26, 2025. This is because the Mahashivratri bank holiday has been declared under what is officially known as the Negotiable Instruments Act.

Insolvency and Bankruptcy Board finalising changes to speed up resolution

Global investors have long been cautious about lending in India, where insolvency cases can often run for years with poor recoveries.

Cash crunch spurs RBI to weigh more liquidity infusions

The Reserve Bank of India has sought feedback on the use of such a tool to better align banks’ borrowing costs with the key policy rate by providing a more predictable flow of funds in the financial system, according to people familiar with the matter.

Axis Bank said to weigh majority stake sale in $1 billion NBFC unit 

The private sector lender is working with an adviser on a strategic review for Axis Finance, the people said, asking not to be identified discussing private information. The bank may seek a valuation of $900 million to $1 billion in a potential transaction, the people said.

Rupee logs worst day in 3 weeks to again hit the 87 mark against dollar on tariff worries

Apart from the rupee, other Asian currencies also depreciated against the dollar during the day

Can add one SBI to ourselves every six years if we grow at 12% CAGR: SBI chairman CS Setty

Confident of delivering another year of 14 –16 percent annual growth in FY26, Setty said that the country’s largest bank is perhaps an aberration on the positive side, to witness an equally robust corporate loan book growth as its retail book

Now is the time to have confidence and lend across segments: SBI chairman

CS Setty is confident of SBI maintaining a 14–16% loan growth in FY26, though he expects the banking system as a whole to see some slowdown

Disbursed Rs 34,000 crore worth of loans to SMEs using new data model, says SBI chairman CS Setty

GST and income tax data are helping assess the credit eligibility of an SME borrower, which has also made up the process quicker, Setty has said

SBI Chairman CS Setty says mission to change the bank is 'very close to heart'

SBI accounts for a fifth of India’s loans and advances, and one-fourth of the total deposits with the banking system. Chairman Setty is very clear that at no cost, SBI will ever sacrifice its market share.

Gamification, hyper-personalisation and more in YONO 2.0, says SBI chairman

The new version of the bank’s mobile banking app, expected to be released by July, will ensure an omnichannel experience for customers, says Challa Srinivasalu Setty

RBI increases Urban co-operative banks' small value loans per borrower ceiling to Rs 3 crore

The RBI has said that the guidelines will be applicable from immediate effect

FPI funds in Govt bonds fall as gap between India, US bond yields narrows

FPI investment in Fully Accessible Route (FAR) securities stood at Rs 2.66 lakh crore as on February 24, as compared to Rs 2.75 lakh crore as on February 7.

Economists predict repo rate at 5.75% by mid-2025 amid concerns over growth

The hope for another rate cut has increased after the concerns showed by the monetary policy committee (MPC) members in the February policy minutes, and easing inflation trajectory.

Banking Central | India needs a much higher deposit insurance for its bank customers

The insurance framework should have a higher coverage threshold, a risk-based premium structure and a mechanism to ensure swift payouts in case of bank failures

Chart of the Day| MPC minutes show clear shift towards growth focus

Malhotra’s confidence in the disinflationary trajectory is well-founded. After breaching the RBI’s upper tolerance band in October, headline inflation has moderated, with food inflation showing clear signs of easing

Bank of Maharashtra slashes interest rate on retail loan by 25 bps

The Pune-based lender has received Reserve Bank of India’s approval to set up an International Financial Services Centre (IFSC) Banking Unit at GIFT City.

Bajaj Allianz Life first to launch Bima-ASBA facility

This eliminates the need for upfront premium payments and ensures greater financial security and transparency, says a release

No penalty on prepayment or foreclosure of floating rate loans: RBI releases draft norms

The draft norms stated that lenders shall permit foreclosure/ pre-payment of all floating rate loans sanctioned for purposes other than business to individuals, with or without co-obligant(s).

MC Interview| Repo rate only one of many factors that impact growth: RBI MPC member Nagesh Kumar

Kumar was one of the six MPC members who voted for a cut in the repo rate cut in the February monetary policy meeting due to growth concerns.

Central banks bring a welcome glimpse of normality in Asia

Crises are wrenching, and instructive — but not the only thing going on. Three central banks in Asia displayed some much-needed calm

Govt stake in banks can come down further as lenders may need more funds: Bank of India CEO

These comments came when the government last month approved fund-raising plans of up to Rs 10,000 crore for five PSBs through QIP, and additional stake sales via OFS

RBI Survey: Indian farmers still love cash, but digital is gaining ground

Cash remains king in India’s agricultural payments—but the tide is turning