Banking News

This hike could be anticipated amid an 80 percent property rate in January, 2025, which was aimed to restore solvency after a period of aggressive discounting, aimed at maintaining solvency, according to industry analysts

Bajaj Allianz Life unveils pension plan with industry-first 30-year deferment option

A key highlight of the plan is its industry-first 30-year deferment option, allowing individuals as young as 35 to begin planning their financial future well in advance, the release says

Chart of the Day | NBFCs’ overall loan growth moderates in December quarter, but gold loans surprise

India's loan growth story isn't over; it's merely taking a breather.

LIC launches Smart Pension Plan to enhance retirement security

According to a press release, the initiative aims to offer financial stability and flexible retirement solutions, reinforcing LIC’s commitment to securing the future of policyholders across India

Reliance Industries is India's most valuable company in Burgundy Private-Hurun India report

The Mukesh Ambani-led company was followed by Tata Consultancy Services and HDFC Bank.

Economy needs support on growth side, RBI should first focus on liquidity, says Neelkanth Mishra

Mishra on the rate cut front said that further rate cut is recommended due to tight liquidity conditions, but more liquidity measures are required

Axis Max Life introduces STAR ULIP with dual focus on protection and wealth

The plan includes coverage for accidental death and total and permanent disability, with optional riders available for further customisation

Axis Max Life aims to dial back ULIP exposure amid margin decline

Product mix shift, high ULIP sales, and new surrender norms impacted margins by 4 percent, said CFO Amrit Singh in an interaction

Kinara Capital hit by NBFC stress: Breaches loan terms, plans stressed asset sale

MSME lender breached loan covenants on Rs 1,772 crore due to rising NPAs and losses, securing waivers for 38% of the debt while negotiating further relief

What do Q3 asset quality trends for banks show?

While PSBs have cleaned up their books well, private sector banks (PVBs) are grappling with rising delinquencies in unsecured retail loans and microfinance portfolios.

Dual regulation must go to arrest frequent deaths among cooperative banks

Dual regulation is making cooperative banks a cesspool of corruption

Retail Lending: What got us here, will no longer take us too far ahead

Retail lending’s growth thus far has been partially aided by structural factors such as a large pool of new-to-credit borrowers. With low hanging fruit no longer available, retail lenders need to enhance analytical and risk management capabilities to once again record high but sustainable growth rates

Auditors of AGS Transact issued an adverse report after Q3FY25 results

AGS Transact has defaulted/delayed in certain loan repayments, GST registrations in certain states have been suspended/cancelled and there have been delays in payment of statutory dues, employee salaries and vendor payments, a Crisil note observed.

Government may increase deposit insurance amount, says DFS Nagaraju

At present, depositors of stressed banks, like those of New India Co-operative Bank, can claim up to Rs 5 lakh from the DICGC

Explainer: The DICGC as a safety net in the New India Co-operative bank crisis

The DICGC acts as a crucial safeguard in this scenario, ensuring that depositors of the New India Co-operative Bank are not left entirely out of pocket

Under Malhotra, RBI has pumped in Rs 43 lakh crore in banking system to meet liquidity needs 

Liquidity deficit swung from Rs 30,000 crore to Rs 3 lakh crore between December 16 and February 14 due to tax outflows, RBI intervention in the forex market and limited spending by government, the central bank's data shows

IL&FS group announces Rs 5,000-crore payout in InvIT units and cash

This includes Rs 3,500 crore in Infrastructure Investment Trust (InvIT) units and Rs 1,500 crore in cash

Banking Central | Another co-op bank bites the dust, it's the same story all over again

The RBI has been cracking down on erring co-operative banks but the underlying problems, especially governance, persist

Bima Vahak set for soft launch in April; Bima Vistaar moves closer to implementation

Bima Vistaar, is a comprehensive and the first composite insurance product covering life, accident, and property risks.

Alleged misappropriation of funds by staff at New India Co-operative likely reason behind RBI action

On February 13, the RBI had restricted New India Co-operative bank from doing fresh business and accepting deposits, citing supervisory concerns.

Amid high liquidity deficit, RBI may continue heavy liquidity infusion

Between February 10 and February 14, the central bank has infused Rs 9.81 lakh crore through daily VRR auctions

MC Exclusive | Empty ATMs, statutory defaults, and deep rating downgrades: AGS Transact faces a crisis

Some banks serviced by AGS Transact have informed the regulator about the increasing cases of ATMs not being refilled and have held back their payments to the company. Crisil and India Ratings have downgraded the company’s debt to default status. Its GST registration also stands cancelled; virtually, AGS Transact is out of business.

Explained: Why your cost of loan has not reduced despite a repo cut

The actual impact depends on several factors, including the type of loan you have and the interest rates are determined

Rupee open 5 paise up at 86.8412 against the dollar

The dollar index, which tracks American currency's value against six major currencies, eased to 107.123 in the early trade

Exclusive Interview | Have seen material improvement in delinquency trends since November: Satin Creditcare CMD

While banks have slowed down on lending, foreign DFIs (development finance institutions) continue to lend to the microfinance sector, albeit selectively, said HP Singh

Lenders working on CBDCs to ensure ease of doing transactions, says Bank of Baroda CEO

On cyber security, BoB CEO and MD said that the banking industry needs to work on protecting the sanctity of the financial system.

Karnataka MFI ordinance: Collections likely to get impacted in state

While Karnataka may not turn into a no-go zone for microfinance lenders, industry executives caution that, in the near-term, there could be some disruptions in operations. 

Health insurance dominates non-life with 40% share despite slow growth, while motor at 29.3% despite being mandatory

A critical issue for motor insurance is the high percentage of uninsured vehicles because of non-compliance with mandatory insurance laws," says Galaxy Health Insurance CEO

Bet on consumption demand, not rate cuts, to catalyse investment

Interest rate changes by RBI work mostly through credit channels in a bank-dominated financial system. Experience over the last six years suggest factors other than interest rate have had a dominant influence over lending. On balance, it appears a sustained increase in consumption may be more likely to trigger private investment revival

Rupee opens 8 paise up at 86.8013 against dollar

The dollar index, which tracks the American currency's value against six major currencies, eased to 107.742 in early trade

Fusion Finance’s losses swell to Rs 719 crore in Q3

For a second quarter in a row, auditors have flagged the company’s ability to remain a going concern without waivers from lenders or securing sufficient funds

India: Will a weak rupee constrain the easing cycle?

While currency volatility is a concern for central banks, including the RBI MPC, these are overrun by domestic priorities. The fiscal policy assumed a contractionary impulse on the back of a narrower deficit target for FY26, passing the baton to the central bank. If inflation is aligned with the targets, monetary policy is likely to assume a growth supportive stance in the quarters ahead.

Lower January inflation opens door to an April rate cut

The sharp fall in inflation, particularly food inflation dropping to 6% from over 8% in previous months, provides the RBI with much-needed policy space.

100% FDI in insurance will lead to better pricing outcomes for customers: Anup Rau, MD & CEO, Future Generali India Insurance

While Rau did not share much on how the Central Bank of India's takeover of Future Group’s stake would unfold, he remained optimistic that with Generali’s support, the general insurer’s goal of doubling its business in five years was achievable.

Aided by improving macros, bond yield remains range bound

Usually, when the global tension rises, bond yields react negatively and rise, but this time due to better economic conditions and huge demand from domestic and foreign investors, it remained range bound.

RBI gold stockpile grows despite fall in overall forex reserves amid global uncertainties

Finance Minister Nirmala Sitharaman on February 10 told the Lok Sabha that India’s rising gold reserves, including those held by the RBI, were not intended to replace any international currency.

Indian rupee opens 39 paise higher at 86.4425 against US dollar

The Indian Rupee opened stronger against the US Dollar on February 12, appreciating by 0.36 percent to be the best performing currency compared to Asian peers.

RBI to inject record Rs 2.5 trillion in banking system after aggressive FX intervention

The Reserve Bank of India (RBI) will pour in 2.50 trillion rupees ($28.85 billion) through an overnight variable rate repo auction. This will also be the biggest infusion by the RBI in a single day in over a year.

Three state-owned banks may sell shares to meet public shareholding norms: Report

As per Securities and Exchange Board of India (Sebi) regulations, all listed companies must maintain at least 25 percent public shareholding.

Indian rupee outperforms Asian peers at close on RBI's likely intervention

The local currency gained almost 1 percent and closed at 86.8300 against the US dollar on February 11, as compared to 87.48 against the greenback close on the previous trading session.

Non-life insurance sector grows 6.58% in Jan 2025; Health insurers lead with 17.76% surge

In terms of market dynamics, general insurance maintained an 84.65 percent share of the total premiums for January 2025, with health insurers capturing 11.72 percent and specialised insurers at 3.63 percent

RBI intervention in forex rises as Indian Rupee turns volatile

Data suggests that the forex reserves of the RBI has declined sharply by over $75 billion since September 27. This was the period when the Indian rupee depreciated from 83.70 against the US Dollar on September 27, to 87.96 against the greenback on February 10.

Rupee gains the most in 2 weeks against dollar on likely intervention by RBI

The central bank’s stated objective is to maintain orderliness and stability, without compromising market efficiency, RBI governor Sanjay Malhotra has said during February policy review

Rupee rises most in over two years to reclaim 87 per dollar on likely RBI intervention

The local currency, on February 10, touched a new record low at 87.9563 against the US dollar due to the new tariff plan rollout by Trump.

Karnataka Governor's rejection of MFI Ordinance a timely wake-up call for government

An excessive punitive approach not only risks stifling the microfinance sector but also threatens to undermine the very credit ecosystem that sustains the state's most vulnerable populations

Life insurance premiums drop 8% in Jan 2025; PNB MetLife, Godigit shine amidst LIC’s decline

Life insurance sector is facing sustained headwinds, with both LIC and private insurers experiencing challenges in premium growth

MC Explainer| All you need to know about standing deposit facility

SDF is a tool to absorb liquidity from commercial banks without giving government securities in return. It replaced the reverse repo as a floor for the LAF corridor in 2022.

Explained | Open architecture in insurance: Push for choice, debate on impact, and industry's stance

While this proposal aims to enhance consumer choice and potentially drive competition, reports have surfaced indicating that major companies oppose the open architecture model for individual agents

'Market forces' push Rupee to record low near 88 per dollar, RBI Governor 'not targetting' any level

The presence of the RBI in the foreign exchange market has made Indian rupee least volatile among Asian peers. According to the Bloomberg data, Indian rupee depreciated 3.2 percent since December 11.

A neutral start to RBI MPC’s easing cycle 

RBI said it will look to use the flexibility embedded in the flexible inflation- targeting (FIT) framework. This suggests that the RBI could start to gradually move away from its fixed 4 percent CPI inflation target and instead embrace a range, especially when faced with CPI shocks, such as those from volatile vegetable prices