Banking News

Known to be one of the longest standing requests of the insurance industry, this move creates room for increased participation from foreign players in India's insurance landscape. But the real tes

Partial Credit Enhancement Facility for corporate bonds may help AA and below rated issuers

Finance Minister Nirmala Sitharaman on February 1 while presenting Union Budget 2025, announced that NaBFID will set up a ‘Partial Credit Enhancement Facility’ for corporate bonds for infrastructure.

Agricultural sector likely to see relief due to increase in KCC loan limit

The sector, which had been under stress for a prolonged period of time may likely see relief through increase in KCC loan limit, helping 17 million farmers, says analyst

Big reforms missing in Budget, but banks could benefit from FM’s consumption boost

If the consumption boost translates into higher credit and deposit growth, the sector might still find reasons to cheer.

Higher gross market borrowing may lead to increase G-sec yield

In union Budget 2025, gross market borrowing numbers announced by the government was around 6 percent higher for next financial year, as compared to current fiscal year.

FM announces only one reform from new Insurance Bill, others left out

The other reforms, for reasons unknown to me, have been deferred, but will likely be introduced in the very near future, says Ex-IRDAI member

Increased thrust on housing to give a filip to banks and NBFCs

Urban Challenge Fund and SWAMIH has the potential to give the much needed boost to revive sentiments in the housing finance space.

Higher redemptions of bonds in FY26 leads to around 6% rise in gross government borrowing

In the first half of current financial year, the Centre has borrowed nearly Rs 7 lakh crore and plans to borrow Rs 6.61 lakh crore in the second half.

Government propose to increase threshold of TCS on LRS scheme to Rs 10 lakh from Rs 7 lakh

Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.

NaBFID will set up partial credit guarantee scheme for corporate bond for infrastructure, says FM Sitharaman

NaBFID is a specialized Development Finance Institution in India aimed at supporting the country's infrastructure sector.

MC Explains| Will RBI surprise the bond market with another large dividend transfer?

As per the RBI Act's Section 47, after making provision for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation fund and other matters, the balance profit shall have to be paid to the Central Government.

Economic Survey 2025 warns that excessive financialisation can hurt the economy

It also called for banks to banks to enhance their capabilities to meet the demands of new-age households and the digital economy

LCR may drop 13-14 bps but will stay well-above draft limit, PNB CEO assures

Addressing concerns over the potential effects of the new draft guidelines, PNB CEO said there will be no major impact on the bank's operations.

RBI’s actions on Indian rupee, domestic liquidity are steps in right direction: CEA Nageswaran

These comments came when the central bank has been spending dollars heavily in the forex market to defend Indian rupee from falling sharply in the last few months.

Rupee holding up better than South Korean Won, Brazilian Real despite pressures, notes Economic Survey

The survey added that one of the primary factors behind Rupee's depreciation in 2024 has been the broad-based strengthening of dollar, at a time of geopolitical tensions in the Middle East and uncertainty around the US election.

PNB targets to double recovery to Rs 6,000 cr in Q4 to meet FY25 goal amid slowdown in asset recovery

The bank’s overall recovery for the year to date has reached Rs 11,552 crore, falling short of expectations due to delays in the resolution of stressed assets via the NCLT and the NARCL, says CEO Ashok Chandra

IndusInd Bank Q3 results: Net profit declines 39% to Rs 1,402 crore

IndusInd Bank Q3 FY25 Results: Bank reported a net profit of Rs 1,402 crore in the third quarter of fiscal year 2025, 39 percent lower than the Rs 2,301 crore reported in the corresponding quarter of the previous year.

AI makes banks smart, but pain points remain, says Economic Survey

Relying extensively on AI to assess credit risk of a potential borrower opens up the bank to future vulnerabilities

India’s forex reserves sufficient to cover 90% of external debt

India’s foreign exchange reserves increased from $616.7 billion at the end of January 2024 to $704.9 billion in September before moderating to $634.6 billion as on January 3, 2025

Investor confidence in bankruptcy resolution crucial for developing bond market: Economic Survey

If liquidity has to enter corporate bond markets, problems such as entry costs, information asymmetry and the absence of a secondary market must be addressed, the survey has said

Economic Survey 2025 pins steep interest rates and RBI's curbs on unsecured loans for moderation in credit growth

Overall bank credit growth had slowed to 7.7 percent, a clear reflection of the impact of higher lending rates stemming from monetary policy adjustments and the RBI's regulatory tightening, the report says

Economic Survey 2025: Raising FCNR deposit interest rate ceiling to help increase credit growth, attract foreign flows

The RBI in December announced an increase in the interest rate ceiling on FCNR- B deposits with maturities of 1 to 3 years and 3 to 5 years

Vault Matters | Catch ‘em young! Rethinking deposit strategies for the prime earning demographic

Indian banks favour senior citizens with higher deposit interest rates, but neglect the 28-55 age group. To attract younger customers, banks must innovate, perhaps by offering equity-like deposit products with guarantees, supported by regulatory and government backing

RBI to cut rates to 6.25% in February, followed by one more cut next quarter- Reuters poll

The rupee, which fell nearly 3% against the U.S. dollar last year, remains a risk as sharp rate cuts could fuel more inflation through imports. GALURU The Reserve Bank of India (RBI) is set to cut its main policy rate on Feb. 7 followed by just one m..

MFIs facing a crisis of confidence post-Q3

Analysts are increasingly turned negative on NBFC-MFIs, suggesting potential headwinds for the sector

Indian rupee least volatile currency among Asian, global peers in three months

The rupee has been on the depreciation path in the last few months due to various factors such as widening trade deficit, rising crude oil prices, and a surge in the dollar index after the US Federal Reserve hinted at fewer rate cuts in 2025.

RBI likely told Tata Sons not to engage in financial services activities to avoid listing

Tata Sons is learnt to be in the process of giving an undertaking to the Reserve Bank that upon surrendering its NBFC-CIC license, it will not engage in transactions resembling those undertaken by a bank or NBFC, including providing guarantees for any consideration.

Rate cut will impact NIM, recovery expected in 3 quarters, says Tamilnad Mercantile Bank CEO

For the December quarter, Tamilnad Mercantile Bank has reported a 6 percent year-on-year growth in net profit at Rs 300 crore

Bajaj Finance tightens used car loan portfolio amid rising delinquencies, scales back refinance segment

Bajaj Finance has cut used car refinancing due to high delinquencies, reducing volumes from Rs 400 crore to Rs 250 crore per quarter, while focusing on new car loans and secured lending.

Bajaj Finance launches BFL 3.0, targets 3.2-3.5% share in total credit market by FY25

BFL 3.0 aims to meet the financial needs of its 200 million customers by integrating AI technology across all operations, the management said

Bajaj Finance to focus on green finance, zero trust strategy, multi cloud platform

The company said they have made significant efforts on account aggregator and GenAI. Bajaj Finance will cross 30 million account aggregator consents by FY25, and it is currently implementing 29 GenAI use cases across 25 work streams, which will deliver an annual cost save of ₹ 150 crore in FY26 alone, presentation showed.

Tamilnad Mercantile Bank reports Rs 300 crore net profit in Q3 with 6% yoy growth

The bank's net interest income for Q3 FY25 amounting to Rs 570 crore, an increase of 6.15 percent from Rs 537 crore in Q3 FY24.

Bajaj Finance Q3 Results: Net profit rises 18% YoY to Rs 4,308 crore, supported by AUM jump of 28%

Bajaj Finance Q3 Results: The NBFC major was expected to report report healthy Q3 earnings growth, backed by strong asset under management (AUM) expansion and stabilising net interest margins (NIMs).

MC Exclusive| Banks said to request RBI to defer implementation of LCR norms

Draft norms for management of liquidity by banks are due for finalisation by new RBI governor Sanjay Malhotra, and the original schedule called for them to take effect from April 1.

Policybazaar to enter healthcare business in FY26, says CEO Sarbvir Singh

Policybazaar will also strengthen its foothold in the lending arena, with Paisabazaar pivoting from unsecured lending to an optimal mix from secured and unsecured loans, says Singh

Federal Bank Q3 FY25 – strategic shift for long-term gains

The focus is on quality for sustainable and profitable growth

Budget Snapshot | Agri credit target to cross Rs 28 lakh crore in this Budget, what’s in it for banks?

Banks are increasing fund flows to the agriculture sector because it’s an obligation under the rules. Under the priority sector lending (PSL) norms, banks are mandated to lend 18 percent of the adjusted net bank credit to agriculture

Potential rate cuts to deepen net interest margin woes as private banks report mixed results

The banks will not be able to absorb the rate cut immediately, says analysts

RBI’s liquidity measures increases February rate cut hopes

On January 27, the central bank announced steps to inject liquidity in the banking system, including a Rs 60,000 crore of OMO purchase in three tranches, and a variable rate repo auction next month.

RBI ombudsman sees a surge in banking complaints. Here’s how you can resolve your grievances

RBI Ombudsman: Banking complaints rose 32.81 percent to 9.34 lakh between April 1, 2023, and March 31, 2024, with loans and advances topping the list.

Rupee open 17 paise down as dollar index rises

On January 27, the Reserve Bank of India announced some liquidity measures, including conduct of USD/INR Buy/Sell Swap auction of $5 billion for a tenor of six months

RBI announces Rs 60,000 crore OMO, other steps to inject liquidity into system

The OMO purchase will be undertaken in three tranches of Rs 20,000 crore each, wherein RBI will buy government securities from the open market.

Pine Labs to file draft documents for IPO by mid-February

With the process of reverse flipping completed, Pine Labs plans to go public by August. The IPO may be a mix a fresh issue and offer for sale

ICICI Bank Q3 results: Net profit rises 15% to Rs 11,792 crore

ICICI Bank's asset quality was largely stable, with the gross non-performing assets (NPA) ratio at 1.96% at the end of December, versus 1.97% three months earlier.

Yes Bank Q3 results: Net profit jumps 168% to Rs 612.3 crore, asset quality healthy

The net interest income of the lender was at Rs 2,223 crore.

Vault Matters | Why lenders need to be blamed for the ‘overleveraging’ mess

The recent issue of a customer complaining about being harassed by banks for repaying multiple loans despite low income, highlights a lack of proper loan assessments, inadequate tracking of borrowers' credit scores, and the dangers of increasing indebtedness due to unchecked lending practices

RBI asks banks to provide info on impact of proposed LCR norms: Report

The rules, which will kick in from April 1, require banks covered under LCR to maintain a stock of high quality liquid assets to cover the expected net cash outflows over the next 30 calendar days

Union Budget 2025: LIC MD expects tax incentives and subsidies to boost insurance penetration

On January 29, Moneycontrol reported that India’s insurance sector is expecting some key announcements in the Budget such as tax incentives for policyholders, reduction of goods and services tax (GST), and implementation of mandatory basic term life insurance coverage for formal employment

RBI governor Sanjay Malhotra to hold first meeting with bank chiefs on January 27

Sanjay Malhotra took over as the RBI governor on December 11 for a period of three years. He succeeded Shaktikanta Das

Street positive on HDFC Bank results, CLSA has a 'Hold', HSBC lowers target but keeps 'Buy' call

This steady growth in HDFC Bank's core earnings - both NII and net profit - came in despite a marginal rise in NPAs and NPA ratios.