Banking News

Banks raise record Rs 13.17 lakh crore via CDs in 2025 amid weak deposit growth

The surge in CD issuances comes at a time when banks are grappling with sustained pressure on low-cost deposits.

Year-ender | Rate cuts fail to cheer Indian corporates in 2025 as bond participation remained flat YoY

Public sector financial institutions continued to dominate the bond market in 2025. The top five issuers during the year were National Bank for Agriculture & Rural Development (NABARD) raising Rs 65,465 crore, Power Finance Corporation (PFC) raising Rs 49,101 crore, REC Ltd raising Rs 40,399.5 crore, Bajaj Finance Ltd raising Rs 31,207.9 crore, and Indian Railway Finance Corporation (IRFC) raising Rs 28,761.65 crore, data showed.

PD underwriting commission slumps 65% in FY25; strong G-sec demand keeps earnings under pressure

The underwriting commission (excluding GST) fell to Rs 14.5 crore in FY25 from Rs 43.1 crore in FY24, as the average commission rate dropped sharply to 0.1 paise per Rs 100, compared with 0.3 paise per Rs 100 a year ago.

RBI tightens grip on payment ecosystem as digital transactions near 98% of total payments

Paper-based instruments such as cheques now represent just 2.4 percent of transaction value.

NBFC credit growth led by services, retail; power sector share moderates in FY25

Total gross advances by NBFCs rose to Rs 48.39 lakh crore at end-March 2025 from Rs 40.53 lakh crore a year ago.

Banks report sharp improvement in asset quality in FY25; gross NPAs fall across segments: RBI report

During 2024-25, schedule commercial banks added Rs 2.26 lakh crore of fresh NPAs, but reductions exceeded additions, led by recoveries, upgradations and write-offs totalling Rs 2.75 lakh crore. Write-offs accounted for the largest portion of reductions at Rs 1.58 lakh crore, followed by recoveries of nearly Rs 67,693 crore.

Banks to face rising competition from non-bank lenders in commercial sector funding, says RBI report

The consolidated balance sheet of scheduled commercial banks (SCBs) (excluding RRBs) increased by 11.2 per cent during 2024-25 as compared with 15.5 per cent during 2023-24.

Foreign banks cut India footprint as global realignment continues, shows RBI report

As of end-March 2025, the number of foreign banks operating in India through branches or wholly-owned subsidiary mode declined to 44, following the exit of one bank during the year, the RBI report said.

Loans, cards and digital banking dominate complaints to RBI Ombudsman in FY25: RBI report

The Offices of the RBI Ombudsman (ORBIOs) received about 29.6 lakh complaints during 2024-25, marking an increase of 0.8 percent over the previous year. A majority of these complaints originated from metropolitan and urban centres.

Banking fraud amount jumps 30% YoY in FY26 till September, shows RBI report

During 2024-25, based on date of reporting by banks, the total number of frauds decreased. However, the amount involved in frauds increased.

IBC share in total recoveries rises to 52.4% in FY25 from 49.5% a year ago

During 2024-25, the number of cases referred for resolution decreased under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act and Insolvency and Bankruptcy Code (IBC).

Year-ender | Why Indian bond yields eased only 30 bps despite 125 bps RBI rate cuts in 2025?

Looking ahead, experts believe bond yields in 2026 will be influenced less by domestic rate actions and more by global trends and fiscal dynamics at home. Additionally, bond market will also look out for government borrowing numbers in the Union Budget and its tenure, and also fiscal deficit target. These factors will also shape up the bond yield in the coming months, experts said.

RBI injects Rs 50,000 cr in banking system via OMO purchase auction

On December 23, the RBI had announced additional measures such as conduct of Open Market Operation (OMO) purchase of governments securities and USD/INR Buy/Sell swap auction to inject durable liquidity to the banking system after review of current liquidity and financial conditions.

PSU general insurance merger likely still at preliminary stage

Industry officials familiar with the matter say the government is still at a preliminary assessment stage, with no formal execution plan or timeline in place

HDFC Life sees VNB margins normalising by FY27 as near-term pressures ease: MD & CEO Vibha Padalkar

During an exclusive email interaction with Moneycontrol, the MD and CEO said she said the company is taking a calibrated approach alongside industry-wide discussions with distributors, while focusing beyond cost optimisation to improve profitability

Banking Central | How will payments reshape in the new year?

The age of cashless convenience is over. The coming year will test who really owns India’s payment rails.

PNB reports Rs 2,434 crore loan fraud against erstwhile promoters of Srei Group to RBI

PNB News: The Reserve Bank of India, in October 2021, superseded the boards of SIFL and its wholly-owned subsidiary SEFL

Year-ender | PSU banks outperform private peers on margins as funding advantage softens RBI rate-cut blow

The decline in the weighted average lending rate on fresh and outstanding rupee loans was higher in the case of private banks relative to public sector banks after the cumulative 100 bps rate cut by RBI. On the deposit side, transmission was higher for public sector banks compared to private banks in case of fresh term deposits.

Insurance sector 2025 reform pipeline: Promise vs delivery

Despite outlining one of its most expansive reform blueprints, only select regulatory measures have seen progress this year, with the bigger overhauls held back by statutory delays, ecosystem gaps and uneven insurer preparedness

RBI in 2025: From guarded easing to confident growth support

In 2025, the central bank has cumulatively cut the repo rate by 125 basis points (Bps) taking the repo rate to 5.25 percent, from 6.50 percent at the start of the year.

Open to more acquisitions for growth: Ankur Bansal, co-founder & MD, BlackSoil Capital

We are working with development financial institutions for that. Post the merger with Caspian, we are in a unique space where everybody wants to fund. They have done in the past with financial inclusion for instance. Our next biggest segment will be focusing on climate finance, said Bansal.

Will India's microfinance sector return to high growth in 2026?

After a bruising phase of stress and slowdown, microfinance heads into 2026 seeking balance between growth and discipline

RBI to conduct $10 billion USD/INR Buy/Sell Swap auction on January 13

The near leg or spot leg is on January 15, 2026, and the far leg is on January 16, 2026.

RBI opens the tap, but liquidity deficit may greet banks in early 2026

On December 23, the RBI announced that it will conduct Rs 2 lakh crore OMO purchase auctions of Government of India securities in four tranches, and USD/INR Buy/Sell Swap auction of $10 billion for a tenor of 3 years. Majority of the auctions will be held in January, except one OMO purchase which is scheduled on December 29, 2025.

Low inflation drove RBI’s rate cut, not high growth: MPC member Saugata Bhattacharya

Given my understanding of the evolution of “underlying” inflation over the next few quarter, in the backdrop of the forecast headline inflation, there remains a concern that prices might be less than optimal for stable economic growth, Bhattacharya said.

Acquisition finance will be the key theme for banks in 2026; banks may explore M&A options

The push comes at a time when India’s M&A deal environment is showing a good amount of deals. Emirates NBD acquiring a 60% stake in RBL Bank, JSW Paints acquiring 75% stake in Akzo Nobel India, Torrent Pharmaceuticals buying JB Chemicals & Pharmaceuticals, and ONGC NTPC Green buying full stake in Ayana Renewable Power Pvt Ltd are examples.

Big deal: 2025 a record year for M&A in insurance sector amid rising foreign investment

From marquee exits by foreign insurers to private equity investments in distribution and broking firms, the sector is rapidly evolving

India’s path to Viksit Bharat: The patient, strategic capital imperative for banks

During this transformative shift, the banking system shall continue to to be the primary conduit for credit transmission and liquidity support

Fino will not digress from profitability agenda even as an SFB: CEO Rishi Gupta

Gupta is ready with the roadmap to scale into an Rs 8,000–10,000 crore SFB within three years of operations, he tells Moneycontrol how he plans to do that

OPINION | Risk-Based Deposit Insurance: Banking’s long-awaited adulthood?

Risk-based deposit insurance aligns premiums with behaviour. Its success now depends on whether Indian banks and their boards are prepared to accept accountability rather than rely on systemic cushioning. Over time, it could become the foundation for a banking system where trust is earned through conduct, not assumed through regulation

Chart of the Day | A year in numbers: What high frequency data say about India’s economic momentum

Strip away monthly volatility and a year-long view of high-frequency indicators points to steady economic activity, supported by goods movement, fuel demand and digital payments

RBI announces measures to infuse Rs 2 lakh crore of liquidity into banking system

The RBI will also conduct USD/INR Buy/Sell Swap auction of $10 bn for a tenor of 3 years to be held on January 13, 2026

Far more willing to fund infra loans, but don’t want to be a storage bank: Kotak Mahindra Bank's Paritosh Kashyap

At this stage, wholesale banking is not just lending. Lending forms only a very minuscule part of the products we offer to wholesale customers, whole-time director Kashyap tells Moneycontrol

Lenders ask Reserve Bank of India to rein in surging hedging costs

Hedging costs have surged as dollar-rupee forward premiums jumped sharply, with the one-month forward yield hitting a four-and-a-half-year high this month.

Low inflation signals demand stress in India, says RBI MPC Member Nagesh Kumar

In the last three months, India’s retail inflation remained below the RBI’s lower tolerance band. As per data, CPI inflation stood at 0.7 percent in November, 0.3 percent in October, and 1.44 percent in September.

Power Finance Corp withdraws 2-year, 5-year bond issue 3rd time in a row amid high yields

Money market experts said that the investors have started demanding higher rates in the last few weeks, firstly in anticipation of rate cut before the monetary policy, and later due to uptick in yields on government securities following dimming rate cut view post release of the RBI monetary policy committee (MPC) minutes.

RBI Bulletin: Credit–deposit gap narrows as deposit mobilisation finally picks up

On December 12, Moneycontrol reported that bank credit growth stayed firmly in double digits for the seventh straight week, rising 11.42 percent year-on-year in the week ended November 28, extending a run that began after the government announced GST rate cuts in early September.

RBI Bulletin: Global inflation cools, but sticky services prices keep advanced economies on edge

However, in India, retail inflation in November inched up to 0.7 percent, from 0.3 percent in October, but price pressures remained exceptionally subdued for the second straight month.

RBI Bulletin: November high-frequency indicators show economy holding firm as robust demand sustains growth momentum

India’s economy extended its strong run for a third consecutive quarter, growing at a six-quarter high of 8.2 percent in July–September (Q2FY26) compared with 7.8 percent in the previous quarter.

Shriram Capital to restructure lending to refocus on other businesses: Umesh Revankar, Executive VC, Shriram Finance

We believe our credit business require a different kind of attention and the other businesses where we have a strong partner, it also need a certain focus. I think only to bring focus into the activity we may be restructuring the credit business, Revankar said

Have no interest in investing in any other arm of Shriram Group, says MUFG's Yasushi Itagaki

MUFG is 'happy with its status as a significant minority stakeholder' in Shriram Finance, COO Yasushi Itagaki has said

It’s tough to replicate HDFC model: Keki Mistry, former VC & CEO, HDFC Ltd

Mistry is hopeful of a reduction in personal income tax slabs in 2026, and is optimistic about the housing sector. He believes that a little more confidence in the hands of consumers may go a long way in further sprucing demand.

Why is India’s currency Asia's worst-performing?

Tariff differential is a factor shaping market perception. The US has imposed tariffs as high as 50% on Indian imports, significantly above many of its Asian counterparts, including Indonesia, leading to a sharp depreciation of the currency.

Private sector banks not investing in people, says SBI chairman CS Setty

In an exclusive interview to Moneycontrol, Setty says public sector banks continue to invest in their employees which is lacking in most private banks

Rupee rises for second straight day, opens at 89.65 on likely RBI intervention

On December 19, the rupee staged a strong comeback, rising past the psychologically important 90-mark against the dollar to settle at its highest level in over two weeks

Banking Central | Will 2026 be a happy new year for India's crypto investor?

Despite regulatory scepticism, crypto still wants India and Indians want crypto. 2026 will test how this relationship shapes

Banks hold promise for growth in 2026, will they deliver?

An economy that is lending more, writing off less and cleaning up legacy stress sets the stage for a banking revival. But risks remain

Govt holding in IOB declines to 92.44 pc after share sale

With the stake dilution of 2.17 per cent following the OFS closure on December 18, the government holding in IOB came down to 92.44 per cent, the bank said in a regulatory filing on Saturday.

Rupee faces pressure amid rate cut, but imported inflation likely to stay contained: RBI MPC member Ram Singh

The currency has been under pressure in the last few weeks especially due to delay in the 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.

RBI board approves risk-based deposit insurance framework for banks, reviews draft report on Trend and Progress of Banking

The release said that the board also discussed global and domestic economic situation and associated challenges.