Banking sector news & PSU Bank Updates

Credit-linked insurance shows green shoots after MFI-led pullback

With MFI credit showing early signs of revival, insurers expect credit-linked protection to regain momentum, even as they remain wary of past risks

Indian rupee closes at record low of 91.69 against US dollar amid Greenland dispute, FII selling

With the current fall, the domestic currency turned out to be the second worst performing currency among Asian peers with a fall of 1.98 percent so far in 2026.

Budget 2026: Govt may peg Rs 2-3 lakh crore as dividend income from RBI, PSU banks

In May 2025, the central bank paid a record Rs 2.69 lakh crore dividend to the government, reflecting higher income from foreign exchange operations amid global market volatility.

Budget Snapshot | What bank credit data for small firms tell us

After a strong year of expansion, the shape of lending to small businesses is changing and that matters for Budget 2026

Q3FY26 Life Insurance review: Early persistency weakens even as long-term policy retention improves at life insurers

While long-term policy retention remains healthy, brokerages cautioned that deterioration in recent cohorts could become a key monitorable for the sector over the coming quarters

MPC Poll | RBI likely to hold rates in February policy amid comfort on inflation, higher growth

Since February, 2025, the MPC has reduced the repo rate by 125 bps to aid growth, with a 25 bps cut each in February and April, 50 bps in June, and 25 bps in December. However, the RBI has kept repo rate unchanged in August and October monetary policy.

FPI flows pressure, global uncertainties have pulled rupee down over 1% this month

The domestic currency opened a tad weaker on January 20 but declined rapidly to 91.0650 against the dollar. This level was touched nearly after a month

Wonder Home Finance raises Rs 500 crore from Growtheum Capital Partners

Wonder Home Finance achieved a 70% CAGR over the past five years, with assets under management exceeding Rs 3,000 crore

Strong premium growth to lift profitability of Indian insurers: Moody’s

Premiums accounted for just 3.7 percent of GDP in FY24, compared with 11.8 percent in the UK and 12.1 percent in the US, indicating significant headroom for expansion in the Indian market

L&T Finance’s retail pivot pays off as NIMs, fees rise 19 bps in one year; credit costs ease, says CEO Sudipta Roy

We have consistently guided that NIMs plus fees will remain in the 10-10.5 percent range. Depending on interest rate and cost pressures, it may move within that band, but we don’t expect it to fall below 10 percent in the medium term, Roy said.

PNB Q3 results: PAT rises 13% YoY to Rs 5,100 crore

PNB Q3 results: On a sequential basis, net profit rose 4 percent.

South Indian Bank focussing on high-yield retail assets to boost margins, cutting back short-term corporate lending,says CEO PR Seshadri

The bank has cut back on short-term corporate lending Retail, MSME and gold loans now form a larger share of the book, Seshadri tells Moneycontrol in an interview

FY27 govt borrowing pegged at Rs 15-17 lakh crore as debt focus gains prominence

Estimates for green bond issuance, which is unlikely to see an increase, range from Rs 20,000-25,000 crore, or around 5 percent of total borrowing, a Monyecontrol poll has found

What the latest banking results tell us

The latest numbers show strength at the top, hesitant recovery below, and a system that is safer but far from balanced

Banking Central | Has bank recapitalisation run its course?

After a decade of state support, Budget 2026 must decide whether PSBs still need the taxpayer’s shoulder

RBI directs ICICI Bank to make additional provisions on agri priority sector loans

ICICI Bank described the provisioning as a one-time regulatory adjustment, stating that it does not expect further provisions on this portfolio beyond Q3 FY26

ICICI Bank board approves 2-year extension for CEO Sandeep Bakhshi

The decision was taken by the bank’s board at its meeting held on January 17, and is subject to regulatory and shareholder approvals, according to an exchange filing

Federal Bank sees 50 bps CRAR boost from Blackstone tranche: MD & CEO KVS Manian

Responding to another query by Moneycontrol on the market speculation around Federal Bank being among the bidders for select Deutsche Bank India retail and wealth portfolios, Manian said it continues to evaluate inorganic opportunities but has no immediate transactions under consideration

Federal Bank Q3 net profit rises 9% YoY to Rs 1,041 crore, shares jump 10% to record high

Net interest income (NII) increased 9 percent year on year to Rs 2,653 crore, compared with Rs 2,431 crore a year ago

What’s next for Yes Bank as RBI permits Japan's SMBC to set up a subsidiary in India?

RBI's in-principle nod for Japan's SMBC to set up a wholly-owned subsidiary in India is the fourth instance of a foreign bank seeking to convert its Indian operations from a branch model to subsidiary, this could set the base for SMBC to take controlling stake in Yes Bank.

IOB may miss August public shareholding deadline, seek extension, says CEO Ajay Srivastava

The bank is planning to raise Rs 4,000 crore through a qualified institutional placement issue in the fourth quarter, which is expected to dilute the government’s stake by about 4 percent but won't be enough to meet the 25% norm

Why India still remains outside the Bloomberg Global Aggregate Bond Index?

On January 13, BISL deferred the inclusion of Indian government securities in the Bloomberg Global Aggregate Index, citing the need for further evaluation of operational and market infrastructure aspects

EGM today: The contentious non-compete fee and secondment clauses in MUFG–Shriram Finance deal

Apart from the $200 payout to Shriram Ownership Trust, certain clauses pertaining to oversight of operations by MUFG are coming under the cloud, with proxy advisors questioning if the deal was structured to avoid an open offer by the Japanese investor

Budget Snapshot: Why India’s Budget is paying more for the past than the future

Official budget documents and parliamentary analyses show that interest outgo has become one of the largest and least flexible components of central government expenditure

Piramal Finance secures $350 million from IFC & ADB

According to sources, advanced discussions underway to secure an additional $150 million from select DFIs, taking the total funding from multilateral foreign agencies to $500 million by end of FY26

ICICI Lombard net profit slips 9% in Q3 on higher costs, claims

On a one-nine (1/n) basis, profit after tax (PAT) stood at Rs 659 crore, compared with Rs 724 crore in the year-ago quarter. PAT came in at Rs 680 crore.

RBI receives almost 3X bids at USD/INR buy-sell swap auction; accepts $10 bn

The near leg or spot leg is on January 16, 2026, and the far leg is on January 16, 2029.

Bank of Maharashtra Q3 result: PAT rises 26.5% to Rs 1,779.33 crore

Other income of the bank surged 18.41 percent in the December quarter to Rs 932.86 crore from the year-ago period

ICICI Prudential Life Insurance Q3 net profit rises 20%; stock jumps over 2% as VNB margin improves

ICICI Prudential Life Insurance posted a solid Q3 FY26 results, with profit rising year-on-year on the back of stronger investment income and improved profitability. Growth was led by the retail protection business. The insurer's stock jumped.

Bloomberg defers Indian bonds inclusion in Global Aggregate Index

'A number of respondents highlighted important operational and market-infrastructure considerations that merit further evaluation before inclusion in a flagship global investment grade index,' the service provider said in a note.

Overseas borrowing on track, euro exposure largely unhedged, says PFC CMD Parminder Chopra

Despite volatility in currency markets and a sharp move in the rupee, PFC did not face any significant difficulty in hedging its exposure, Chopra tells Moneycontrol

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 29,872.34 crore as on January 11, as per RBI data.

A quiet inflation print, and loud signals for policy

December’s CPI number gives both the RBI and the government something they have lacked for years--policy space

Universal Sompo’s health portfolio up 8% after GST cut: MD Sharad Mathur

The company is targeting a premium income of Rs 6,000 crore in FY26, compared with Rs 5,000 crore in the previous financial year

Deutsche Bank’s $2.5 billion India retail assets draw final bids

Negotiations with Kotak, founded by billionaire Uday Kotak, and Blackstone Inc.-backed Federal Bank are ongoing and could still fall through

India’s banking system has quadrupled in scale, assets climb from 77% to 94% of GDP by FY25: Report

The report noted that during the period from FY05 to FY25, bank deposits increased significantly from Rs 18.4 lakh crore to Rs 241.5 lakh crore.

Kotak Mahindra Bank appoints Anup Kumar Saha as whole-time director

Saha will handle Kotak Mahindra Bank’s consumer banking, marketing, data analytics functions, the lender said

What Budget 2026 should — and should not — do for India’s banks

With balance sheets finally clean, the banking system doesn’t need a rescue act. It needs restraint, clarity and one hard look at deposits

Banking Central | Why small savings rates are holding back India’s banks

Indian banks have moved past the era of stress. Their main challenge today isn’t lending—it’s mobilising deposits in a system distorted by small savings schemes.

RBI DG T. Rabi Sankar flags need for faster fraud resolution, upfront customer reimbursement

T. Rabi Sankar stressed that technology alone cannot address the problem of fraud, especially as digital transactions continue to scale rapidly.

India's holdings in US Treasury down 21% in 2025, first time in four years

The drawdown comes despite relatively attractive yields in the US bond market. During the period, the yield on the benchmark 10-year US Treasury traded in a wide range of 4.0–4.8 percent, levels that would typically support sustained foreign demand. However, economists say the reduction in holdings appears to be driven less by yield considerations and more by a strategic reassessment of reserve allocation.