Banking sector news & PSU Bank Updates

In Q3, NBFCs to show more bang for buck but microfinance to bleed

The December quarter is a bumper one for NBFCs focused on consumption-based lending

HDFC Bank downtime on 10 January: NetBanking, app, UPI services to be unavailable

HDFC Bank News: In an email to customers,HDFC Bank said, “To enhance your banking experience, we are undergoing essential system maintenance on 10th January 2026, 02:30 AM – 06:30 AM IST (4 Hours).”

BNP Paribas expects another 25 bps repo cut by RBI in February 2026

The brokerage expects monetary conditions to remain supportive of growth, with liquidity improving alongside policy easing, setting the stage for a more durable transmission of rate cuts into the banking system.

HSBC agrees to pay €300 million to end French tax dividend probes

HSBC said in court on Thursday that the bank acknowledges the underlying facts, which involved transactions carried out by traders in Paris between 2014 and 2019

We will clearly be No.1 on fees and we don’t undercut: Kotak Investment Bank officials

Clearing the air on whether Kotak Investment Bank has slipped on its fee growth in CY25 or is undercutting fee, its senior officials rubbish these claims and instead question foreign banks on their pricing model.

Indian MFs have been price and demand leaders of IPOs, says Kotak Investment Banking CEO S Ramesh

New-age firms that launched IPOs in 2025 have delivered average return of 36%, so far; the retail investor has not lost money, says Ramesh, debunking talk of systemic wealth transfer

Banks’ treasury income seen flat in Q3 as bond yield rise may be offset by OMO gains

The RBI’s OMO purchase programme, which infused about Rs 1.5 lakh crore of durable liquidity into the system, helped cap losses and provided selective trading opportunities

IRDAI, insurers likely in talks to relax investment rules amidst amendments to Insurance Act

This potential development comes at a time when the Reserve Bank of India (RBI), too, recently flagged concentration risk in government securities

Rupee volatility in Q3 expected to offer some support to banks’ forex income

In the December quarter, the rupee depreciated 1.21 percent, even falling past the psychological mark of 91 against the dollar as Trump's tariff continued to weigh on the currency

INR reset likely after ‘Liberation Day’; fair value seen near 89 if trade deal goes through, says Aditya Birla’s Kaustubh Gupta

Indian rupee has been under pressure since the US imposed tariffs on the most countries, including India, which led to outflows of funds from the equities and debt. In the depreciation cycle, the local currency even crossed the psychological mark of 91/USD, which prompted the Reserve Bank of India (RBI) to intervene in the spot market to curb volatility.

Banks may see robust loan growth in Q3, but margins may bite

Credit growth has improved across banks but deposits are another story

Budget Snapshot | India’s banks look healthy, but the real risk lies beneath the balance sheet

Strong capital, low NPAs and rising profits mask a quieter shift in how Indian banks fund growth and earn returns

RBI proposes to cap banks' dividend payout at 75% of PAT

The Reserve Bank defines ‘dividend’ as an amount payable on equity shares and includes interim dividend, but excludes dividend on Perpetual Non-Cumulative Preference Shares (PNCPS).

Indian rupee could depreciate to 94 against US dollar in 2026, says UBS

Indian currency has been under pressure in the last few months due to delay in the India-US trade deal, which led to the currency hitting fresh record lows. On the other hand, the limited intervention by the RBI was also adding to the pain.

YES Bank, IndusInd, Kotak, Utkarsh SFB lag peers with weak loan growth in Q3FY26

On the other hand, among large private lenders, ICICI Bank reported the strongest loan growth at 17.26 percent, significantly ahead of peers, while HDFC Bank posted 11.9 percent growth in advances alongside a robust 11.5 percent rise in deposits, highlighting steady balance-sheet expansion.

PSU banks perform better on loan growth in Q3 than private peers amid GST rationalisation, festive demand

Data compiled by Moneycontrol showed that advances growth of PSU banks stood in the range of 7-20 percent in Q3FY26 as per provisional numbers, as compared to 4-17 percent for private banks.

Budget 2026 Outlook: Insurance sector seeks tax parity, pension reform and micro-insurance push

Industry expects clarity on annuities, composite licensing, AI and telematics, and micro insurance

The Samurai banker: Rajeev Kannan, the man who forged SMBC-Yes Bank deal

Said to be the 'Indian face' of the SMBC–Yes Bank deal, Kannan's style of leadership is forged in Japanese mannerism which has served him and the SMBC Group well in the past 27 years

Rupee opens 7 paise up as dollar dips

The rupee is down 0.33 percent in 2026 on subdued foreign equity inflows and hedging by importers

RBI Governor Sanjay Malhotra chairs first Payments Regulatory Board meeting

The Payments Regulatory Board reviewed the current focus areas, covering domestic and global payment systems. The meeting also reviewed the functions of the Department of Payment and Settlement Systems.

Delhi govt signs MoU with RBI for rejuvenating Yamuna, infrastructure development

RBI will function as the banker, debt manager and financial agent of the government, enabling market borrowing through State Development Loans, automatic investment of surplus cash, professional cash management and access to low-cost liquidity facilities

FPI outflows in G-sec FAR hit 8-month high in December

December mark the second consecutive month when there was an outflow of funds after inflows seen in October worth Rs 13,417.443 crore.

RBI injects Rs 50,000 crore durable liquidity in banking system via OMO purchases

Currently, the banking system is estimated to be in surplus of around Rs 49,702.30 crore as on January 4, as per RBI data.

IRDAI likely working on commission cap rules, draft norms expected in 4 months

Insurers, intermediaries asked to brace for tighter oversight on payouts after Insurance Act amendments

Indian lenders' loan growth picks up pace in December quarter

Loan growth had slowed sharply in mid-2025 due, in part, to stricter regulations, but recovered strongly since then

Rupee trades 6 paise down as dollar index climbs amid US-Venezuela tensions

The dollar index, which measures the greenback's strength against a basket of six major currencies, rose to 98.770 in the morning trade from the previous close of 98.424.

Banks struggle to attract deposits as government keeps small savings rates high

For the eighth consecutive quarter, interest rates on popular small savings instruments have been left untouched. With small savings rates frozen and liquidity staying tight, India’s banks are boxed in even as the RBI eases policy

Banking Central | Why the real rate war is on liability side of bank balance sheets

Even after RBI cut the repo rate by a cumulative 125 basis points since February last year, banks have found it difficult to mobilise deposits at a speed that matches credit demand

Bank employees' unions threaten to go on nationwide strike on 27 January

Declaring the remaining two Saturdays as holidays was agreed between the Indian Banks’ Association (IBA) and UFBU during the wage revision settlement in March, 2024.

IndusInd Bank's two senior executives step down to pursue new opportunities

The bank’s head of customer management Rana Vikram Anand and head of wealth and para banking Anish Behl have stepped down, a statement said

2026 Insurance Outlook: Insurance reforms, capital rules to take centre stage

Here is a list of reforms to watch out for

Indian rupee in 2026: Bears may rest a bit, but cautious approach may stay

For 2026, experts expects USD/INR to consolidate in a broad 88-91.50 range, with markets closely tracking trade talks and capital movements.

OPINION | Vault Matters: Can RBI Gov Malhotra get the elephant out of the forest?

The year gone by was more like a honeymoon period for Sanjay Malhotra with inflation tamed and IndusInd Bank’s fraud not turning out to be a crisis for the banking sector. The joker in the pack was Rupee, which started behaving unpredictable towards the end of 2025. Coupled with uneasy growth trends, 2026 could prove to be a test year for the governor

RBI Financial Stability Report: Banks’ clean-up is real -- but the hard work isn’t over yet

With NPAs at multi-decade lows, lenders have earned bragging rights. The next test is whether this improvement survives a tougher credit cycle.

Bank Holiday Today: Are banks open or closed on January 1, 2026 in India? Check Details

Bank Holiday Today: According to the Reserve Bank of India's (RBI) holiday calendar, bank holidays during the month differ from state to state.

Banks seen resilient even under severe stress; capital buffers remain adequate: RBI FSR

Even under stress, none of the banks is expected to breach the minimum regulatory CRAR requirement of 9 percent, though two banks may need to dip into the capital conservation buffer (CCB) under adverse scenario 1 and four banks under adverse scenario 2, in the absence of fresh capital infusion.

India’s household debt rises above 41% of GDP, but resilience remains intact, shows RBI FSR

Personal loans formed 22.3 percent of consumption-purpose loans as of end-September 2025. The risk-tier migration matrix for personal loans reveals greater stability in borrower profiles during September 2024-2025 compared to the previous year.

Stablecoin market triples to $300 billion in 2 years, RBI flags risks to monetary sovereignty

Regulators warn that privately issued digital money could undermine trust, trigger runs and weaken monetary policy transmission

Banks’ derivatives portfolios show higher sensitivity to rate and currency shocks in Sept 2025: RBI FSR

As per the stress test results, a rise in domestic interest rates resulted in a positive MTM impact of 5.9 per cent of total capital in September 2025, compared with 3.8 per cent in March 2025. Conversely, a fall in interest rates led to a sharper negative impact of 5.8 per cent in September 2025, up from 0.7 per cent in March.

Insurers cut sovereign bond share to 59.7%, raise equity exposure to Rs 16.6 lakh crore

Within insurers’ portfolios, the share of G-Secs declined marginally to 39.5 percent from 40.3 percent, while SGS fell to 20.2 percent from 21.4 percent

Indian equities lag EM peers in 2025 after five-year outperformance; DIIs cushion market volatility, shows RBI FSR

The stability of Indian equity markets has been underpinned by strong and persistent demand from domestic institutional investors (DIIs). Their ownership of Indian equities has surpassed that of foreign investors and continues to rise, according to the RBI.

RBI flags risk as few AI-linked stocks drive bulk of Asian market gains

Data show that a very small number of stocks are contributing to 50 per cent of YTD index returns across key markets, reflecting a rising concentration risks. In the US, just seven stocks account for half of the S&P 500’s returns, while six stocks do so in Hong Kong. The concentration is even more pronounced in some Asian markets, with only two stocks driving half of the returns in South Korea, and a single stock accounting for 50 per cent of the gains in Taiwan.

External risks, global shocks pose near-term challenges to Indian economy, shows RBI FSR

A sudden and sharp correction in the US equity markets could spill over into Indian equities, hurting investor confidence and household wealth. This, in turn, could trigger foreign portfolio outflows and lead to tighter domestic financial conditions, report added.

Health insurance claims jump 11% YoY to Rs 94,248 crore in FY25, cashless settlements dominate

Cashless settlements accounted for 58 percent of claims by number and 66 percent by value, highlighting the growing preference for hassle-free claim processing

Year-ender | PSU banks stay ahead of private lenders on advances growth in 2025 as credit demand remains uneven

Credit growth has consistently remained above 10 percent in recent months, indicating stable demand conditions and continued flow of credit to productive sectors of the economy.

Bank Holidays in 2026: How many days banks will be closed in 2026? Here's what RBI calendar says - Check complete list

Bank Holidays in 2026: As per the RBI schedule, the total number of bank holidays in 2026 will differ from state to state and city to city.

India’s reinsurance market grows 11% to Rs 1.12 lakh crore in FY25

During FY25, the gross reinsurance premium written by Indian reinsurers and FRBs stood at Rs 69,228.64 crore. Of this, domestic business continued to dominate, accounting for nearly 85 percent of the total, while foreign business contributed the remaining share

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