Banking News

Banking Central| The RBI’s rate cut bonanza: What next for banks?

The RBI’s bold rate and CRR cuts unleash a growth bonanza but can banks turn liquidity into profitable credit? Structural hurdles loom large

MPC Analysis | RBI Governor Sanjay Malhotra unpacks all the goodies in one go to spur growth

We have done what we can, it’s now your turn to deliver, seems to be the messaging from the RBI Governor Sanjay Malhotra to the banking sector, India Inc and the government on the growth front.

RBI projections suggest CPI inflation to remain below medium-term target for longer period

India’s annual retail inflation had eased to 3.16 percent in April from 3.34 percent in March.

RBI Governor confirms one banking licence application rejected, name not disclosed yet

So far, AU Small Finance and Ujjivan Small Finance have submitted an application to the RBI for a universal banking licence, while Fino Payments Bank has applied for a small finance bank licence.

Front loading repo and CRR cut to support growth and infuse liquidity

With the rates expected to remain static till December 2025, we expect limited capital appreciation going ahead and shift our focus on accrual-based strategy.

No changes in FDI norms for banking sector, says RBI governor Sanjay Malhotra

The comments come after a section of media claimed that India was considering easing foreign ownership rules

RBI MPC Meeting: While net FDI moderated, gross FDI inflows rose sharply, says Sanjay Malhotra

In the past year, gross FDI into India surged by 14 percent, reaching $81 billion

Nifty Bank hits new high as RBI surprises with 50 bps repo rate cut

The index surged over 1.3 percent intraday to cross the 56,500 mark for the first time, hitting a peak of 56,597.45.

Final gold loan norms likely today or by Monday, says RBI Governor, financiers cheer LTV relief

Malhotra said the Loan-to-Value (LTV) for gold loans below Rs 2.5 lakh will be revised to 85 percent, from the proposed 75 percent as part of the latest recommendations.

Liquidity boost: RBI cuts CRR by 100 bps to support banking system

The timing of the CRR cut is crucial because between September and November, India witnesses a festive season due to which currency leakage from the banking system increases, putting pressure on systemic liquidity.

Vault Matters | Why Japanese and Middle East investors should be welcomed into the Indian banking sector

After the early wave of bank licenses rolled out in the 1990s, there has been a dearth of innovation, ideation, creation of fresh talent, and more importantly, capital into the Indian banking landscape has thinned in the recent years. This may change if India embraces serious foreign interest flowing into the banking sector

We’ve done our bit: RBI's message to govt on growth; shifts stance to ‘neutral’ as policy space narrows

While the neutral stance allows flexibility for the RBI to either cut or hike rates in the future, depending on economic data, Malhotra clarified that it does not signal any immediate action in the next policy review.

RBI shifts stance to 'neutral' on easing inflation, sustained growth

MPC meeting: This marks a reversal from the committee’s April stance when it adopted an 'accommodative' approach to prioritise growth

RBI’s bold growth move on Repo, CRR masks a cautious core; stance change signals pause ahead

RBI’s 50 bps rate cut and CRR slash signal robust growth support, but a neutral stance hints at caution ahead.

RBI cuts CRR by 100 bps to 3% in phased manner, to inject Rs 2.5 lakh crore liquidity into banking system

Alongside the CRR cut, the Monetary Policy Committee (MPC) voted to reduce the repo rate by 50 basis points to 5.50 percent, marking the third consecutive rate cut by the central bank.

RBI MPC cuts repo rate by 50 basis points to 5.5%, changes stance to neutral

The mega repo rate cut comes as retail inflation has softened significantly below the RBI's medium term target of 4%.

Rupee opens 6 paise down at 85.85 against the dollar ahead of RBI policy

The RBI’s monetary policy committee is expected to reduce the repo rate by 25 bps, which would be the third rate cut in a row

RBI MPC coming up: Here are 6 things to watch out for

Experts say that the MPC is meeting at a time when inflation has been relatively tamed, and the central now needs to support growth.

RBI injects around Rs 24,000 crore in the banking system via bond buyback

For Rs 25,000 crore aggregate notified amount, the central bank received bids worth Rs 27,256 crore, of which Rs 23,856 crore was accepted.

Banks finds more arbitrage opportunity in mutual funds, investment rises over 90% on-year in March

Usually, when the banks have excess funds or when the liquidity in the banking system is in huge surplus, they prefer to park it in money market instruments or invest it in other instruments such as liquid funds. This helps banks earn hefty treasury income or other income.

MC Exclusive | BimaPay eyes 30–40% volume from ULIPs, nears launch of fully digital loan against life insurance platform

Loans against life insurance policies is a practice that’s long existed in the offline world. But the process is full of delays and paperwork. BimaPay aims to eliminate that friction.

BimaPay Finsure targets Rs 20 crore premiums in FY26 for maiden corporate product

However, even with the new corporate product, BimaPay remains a retail-first business, CEO Hanut Mehta says

Chart of the Day | How movement in food inflation influenced RBI rate cuts in last 5 years

While lower food inflation often creates room for rate cuts, the correlation is not absolute

RBI to continue with liquidity infusion, may announce longer tenure Variable Rate Repo

In the last few months, the central bank is infusing durable liquidity to the banking system through open market operations (OMO) purchases and USD/INR Buy/Sell swap auctions.

Rupee weakens over 40 paise in mid-day trade to 85.97 against dollar as outflows weigh

The Indian rupee has been under pressure during the last few sessions due to dollar demand, equity outflows and a drop in the dollar index, currency experts have said.

97.7% bank accounts fully insured, but only 46.3% of deposits covered, shows RBI data

Insured deposits in India rose 7.11 percent year-on-year to reach Rs 96.7 lakh crore as of September 30

Go Digit Life Insurance reports 719% increase in claims payouts, group term category leads surge

In total, Digit Life settled 15,596 claims this fiscal year, up from 602 in FY24

Private insurers surge ahead as public sector struggles; ICRA projects Rs 3.6 lakh crore premiums by FY27

The divergence in financial health, market expansion and profitability metrics underscores a widening gap in sector dynamics, an ICRA report says

Rupee opens16 paise down at 85.75 against dollar on FPI outflows

The Indian rupee has been under pressure in past few sessions due to dollar demand and equity outflows, currency experts have said

MPC meet begins: Another rate cut is priced in. But what next?

The latest economic indicators paint a picture of cautious optimism, but challenges loom

FPIs sell record sum in government bonds this quarter since global index inclusion

Since the announcement, Indian bonds in global indexes have been seeing sharp inflows, but soon after the rate cut cycle begun earlier this year, the differential between India and US narrowed, leading to these investors moving away.

RBI meeting: 3 things to watch for in the credit policy

A rate cut is a given but the RBI's inflation and growth forecast will be closely watched as Trump's July 9 tariff deadline nears

Why RBI must tread with caution on the gold loan rules

The central bank must listen to bankers’ concerns and craft a framework that regulates without alienating

PSBs plan common collection firm to recover small retail, MSME loans: Report

The initiative is being developed through PSB Alliance Pvt Ltd, which will initially work on a proof of concept.

Hinduja Group’s IIHL plans fresh fundraise to hike stake in crisis-hit IndusInd Bank: Report

The move is aimed at increasing the Hinduja Group’s stake in IndusInd Bank, which is currently grappling with an accounting scandal, regulatory scrutiny, and a sharp drop in share prices.

As fiscal consolidation continues in FY26, monetary support will be key to sustaining growth

The RBI dividend sharply lifted durable liquidity to 2.6% of NDTL, though rising cash demand — more about holding than withdrawal — suggests strong rural transactions post-harvest

RBI may go for 'jumbo rate cut' of 50 bps on Friday: SBI research

The report noted that commercial banks’ credit growth slowed to 9.8 per cent as of May 16, 2025, against last year’s growth of 19.5 per cent.

RBI at a crossroads: Will it push the pedal on rate cuts?

The central bank is also expected to slow its liquidity infusion, which it has aggressively done over the past six months, via a cut in its cash reserve ratio (CRR), secondary market debt purchases, foreign exchange swaps, and open market operations (OMOs). Liquidity is now comfortable, but easing of liquidity is a direct sign of an accommodative bent of mind.

Market likely to give high-single digit CAGR return over medium term, says BofA Securities' Amish Shah

India will continue to command a valuation premium over emerging markets because of its superior growth, improving corporate governance, visibility for structural growth and government policies, BofA Securities’ head of research tells Moneycontrol

Mufin Green Finance eyes Rs 1,300-crore AUM by FY26, reduction in exposure to EV mobility

Mufin Green Finance’s solar book expected to grow 16x in 2 years

HDFC ERGO to maintain lean bancassurance exposure, targets above-industry growth in FY26: CEO Anuj Tyagi

Tyagi says, the company will instead bet on its agency network, direct-to-customer rural outreach, and commercial lines

Banking Central | What does Kotak Mahindra Bank’s leadership transition signal to investors?

Ekambaram, after three decades at the bank, will step down this year. Paritosh Kashyap will assume a new role in the bank.

RBI expected to deliver 3rd consecutive rate cut of 25 bps on Friday: Experts

Six-member MPC headed by RBI Governor Sanjay Malhotra also decided to change the stance from neutral to accommodative in its April policy

RBI imposed penalties on 353 banks, other regulated entities during FY25

RBI data showed that as many as 264 penalties amounting to Rs 15.63 crore were imposed on cooperative banks.

Canara Bank abolishes minimum balance requirement for all savings accounts from June 1

The new policy comes into effect from June 1, 2025, and applies to all categories of savings bank accounts, including regular, salary, and NRI accounts.

Kotak Mahindra Bank's deputy MD Shanti Ekambaram to step down on October 31

With the exit of Ekambaram from the bank, it is a total change of guards from the leadership perspective

Government to buy back of 5 bonds worth Rs 25,000 crore on June 5

The auction will take place on June 5 between 10:30 AM and 11:30 AM, and the settlement will take place on June 6.

Vault Matters | The curious case of IndusInd Bank share price

Strangely enough, barring the single day fall on March 11 by over 20 percent, IndusInd Bank’s stock price has held up quite steady despite a barrage of bad news hitting the counter, denying the underlying negative sentiments around the stock. The logic defying price movement certainly warrants Sebi’s attention

Bank holidays in June 2025: Banks across India will remain closed on these days in June - Check city-wise full list

Bank holidays in June 2025: It’s important to keep in mind that bank holidays can vary from one state to another due to local customs and regional observances.

Emirates NBD likely top contender for IDBI Bank stake, DIPAM said to have explored valuations with potential bidders

Dubai-headquartered bank Emirates NBD is willing to shell out $6-7 billion in an all-cash deal for a 61 percent stake in IDBI Bank, Moneycontrol has learnt. This emerged after an informal conversation between DIPAM and potential bidders over valuation for IDBI Bank’s divestment.