Banking

Ahmedabad plane crash: Travel insurance premiums unlikely to spike, experts say

While the aviation insurance sector faces mounting pressure from global events, individual travel insurance policies are expected to remain stable for now, with only moderate increases projected over the next year

PSU banks earn 15% higher commission from selling insurance, MF products in FY25

The bulk of the fees or commission has come from selling life insurance policies followed by non-life insurance policies, Moneycontrol has found

Bad loan sale, credit shock push Kinara Capital into Rs 351-crore loss, trigger audit red flag

The Nuveen-backed MSME lender sold stressed assets to an ARC at a steep loss in FY25 amid rising covenant breaches and credit stress

RBI gives Yes Bank CEO Prashant Kumar a 6-month extension

The board of the bank has engaged global recruitment firm Egon Zehnder to help find a new CEO

Bond yields surge 5 bps as oil prices spike after escalation in Israel-Iran tensions

Usually, when the oil prices rises, it have an impact on the domestic inflation due to India's heavy reliance on imported crude oil. This dependency means that rising oil prices could lead to higher costs across various industries, ultimately driving up inflation.

Rupee down 55 paise, breaches 86-mark against dollar at the open as Israel strikes Iran

Crude was up over 9% and the dollar index too spiked as Israel struck Iran's nuclear and missile sites, putting pressure on the rupee

Microfinance Q4 a wake-up call for companies, policymakers

India’s microfinance sector is reeling under a client drop, shrinking loans, and rising defaults

RBI introduces STRIPS in state-government bonds

This decision was taken based on consultation with the State Governments/Union Territories and the feedback received from market participants, RBI said in a release.

Privately-listed InvITs must aim to list to attract investors, says Bharat InvITs Association CEO

As of March 2025, there are 26 InvITs are registered with Securities and Exchange Board of India (SEBI). Of this, 21 are privately listed and only five are publicly listed.

New India Assurance, Tata AIG likely key insurers for Air India plane crash; hull insurance likely up to $300 million

Air India’s fleet is insured for $20 billion with a $30 million premium, unchanged from the 2023-24 financial year’s $30 million for $10 billion coverage

PSU bank chiefs see 52-66% y-o-y jump in FY25 salaries

In FY25, state-owned banks’ profitability rose sharply due to higher income from lending, treasury gains and lower provisioning for bad loans.

State-owned banks beat private lenders in CASA ratio for first time in a decade

As stress persists for banks on the deposit mobilisation front, a few banks have tapped the short-term debt market to raise funds through certificates of deposits.

Not giving Sanlam more than 50% stake in Shriram Wealth, says Shriram Capital CEO

Piramal Group, which holds stakes in Shriram’s insurance businesses, is neither actively looking to exit nor in a rush to do so and will take a call as things unfold, says Subhasri Sriram

India to tighten remittance rules, bar offshore time deposits, sources say

RBI will amend regulations to prevent overseas transfers from being used to park money in time deposits or other interest-bearing accounts abroad, one of the sources said.

India’s new payments board aims to drive fintech growth

The RBI’s new Payments Regulatory Board introduces diverse, multi-stakeholder oversight, aiming to modernise payment regulation, foster innovation, enhance inclusion, and potentially pave the way for an independent regulator 

Foreign investors pull out over Rs 2,700 crore from Indian bonds as RBI rate cut narrows spread

The spread between India and US bonds stands at 187 bps, which is one of the lowest. Usually, when the spread narrows, foreign investors pull back funds from emerging economies and park it in less risker destinations.

Rupee opens 11 paise up at 85.52 against the dollar

A day earlier, the local currency traded in the narrow 85.51-85.69 range as traders waited for the outcome of US and China trade talks

Chart of the Day | Credit growth falling, can Malhotra’s growth pill do the trick?

RBI’s rate and CRR cuts aim to revive slowing credit growth, but challenges in NBFC and unsecured lending persist. Will cheaper loans spark demand or fizzle out?

Flexiloans bags Rs 375 crore in Series C funding led by Accion, Nuveen, Fundamentum

The Mumbai-based NBFC-fintech firm plans to use the fresh capital to expand operations, enhance product offerings, and strengthen technology infrastructure.

India’s top banks earn Rs 21,773 crore in insurance commissions amidst mis-selling concerns

Of 10 banks surveyed on commissions earned through their insurance arms, seven earned more than half of their insurance commissions by selling policies from affiliated insurers, a report says

India Infrastructure Finance subscribed to 50% of Pimpri Chinchwad Municipal Corp’s green bond

The listing of the Rs 200 crore green bonds of Pimpri Chinchwad Municipal Corporation concluded on BSE, with bids from eight investors, of which five investors got allotment.

Banks may post hefty treasury gains in Q1FY26, helped by RBI rate cut

During Q1FY26, RBI has reduced repo rate by 75 bps to support growth. In response to this rate cut, only 20 bps yields have reduced on the government securities.

End of RBI's daily VRR auction to have little impact amid huge surplus liquidity

On June 9, the RBI discontinued the daily liquidity support to the banking system through daily VRR auctions due to the improving liquidity conditions

Non-life insurance industry sees 6.5% growth in May 2025, demonstrates mixed signals across insurers

Cumulative premiums for April–May (first two months of FY26) reached Rs 55,854 crore

Private life insurers ride on premium products to increase market share even as policy volumes fall

The group insurance segment has emerged as the key growth engine in May, contributing over Rs 19,850 crore which is higher by more than 13 percent from last year.

Why did RBI end daily liquidity support?

Liquidity conditions in the banking system have turned positive since April 1, thanks to a slew of measures, including daily VRR, by the RBI to infuse durable liquidity.

RBI to halt daily VRR auctions from June 11 as system liquidity reaches surplus of Rs 2.75 trillion

VRR auctions fell to Rs 97,861 crore in May, compared to Rs 13,48,316 crore in January, indicating surplus liquidity

RBI’s rate cut: Banks’ lifeline comes with strings attached

RBI’s bold rate cut and CRR slash fuel bank liquidity but pinch margins, leaving investors to navigate a tricky terrain

Jana Small Finance Bank seeks RBI nod to transition into universal bank

The application was made under the regulatory framework outlined in the RBI’s “On Tap” licensing guidelines for small finance banks issued on December 5, 2019, and the latest circular on voluntary transition to universal banks released by the RBI on April 26, 2024

Microfinance 'suffering' from high indebtedness, coercive recovery practices: RBI Deputy Governor Rao

The MFIs must enhance their credit appraisal frameworks to ensure borrowers are not over-leveraged, RBI Deputy Governor said. They must also refrain from 'coercive or unethical' recovery practices, and deliver services a manner that is both 'responsible and sustainable'.

Monetary Policy: Mission accomplished, now over to you

Though the measures appear bold and decisive, they raise two pivotal questions.

MC Explainer | Economy, banks, and us: How the latest RBI rate cut impacts all

A 100 bps rate cut since February 2025 is seen as a positive step to boost demand for loans or consumption. However, the flip side is that deposit rates - especially for retail - are set to trend lower at a time when the overall savings rate itself is trending down.

HSBC, JPMorgan struggle with desk shortages for London offices

Spain’s Banco Bilbao Vizcaya Argentaria SA is running short of office space in the UK for its growing corporate and investment banking teams.

Govt reviews 18% hike in motor TP premiums amid widening losses and years of tariff freeze

This development comes at a time when insurers have been reporting escalating loss ratios

Banking Central| The RBI’s rate cut bonanza: What next for banks?

The RBI’s bold rate and CRR cuts unleash a growth bonanza but can banks turn liquidity into profitable credit? Structural hurdles loom large

MPC Analysis | RBI Governor Sanjay Malhotra unpacks all the goodies in one go to spur growth

We have done what we can, it’s now your turn to deliver, seems to be the messaging from the RBI Governor Sanjay Malhotra to the banking sector, India Inc and the government on the growth front.

RBI projections suggest CPI inflation to remain below medium-term target for longer period

India’s annual retail inflation had eased to 3.16 percent in April from 3.34 percent in March.

RBI Governor confirms one banking licence application rejected, name not disclosed yet

So far, AU Small Finance and Ujjivan Small Finance have submitted an application to the RBI for a universal banking licence, while Fino Payments Bank has applied for a small finance bank licence.

Front loading repo and CRR cut to support growth and infuse liquidity

With the rates expected to remain static till December 2025, we expect limited capital appreciation going ahead and shift our focus on accrual-based strategy.

No changes in FDI norms for banking sector, says RBI governor Sanjay Malhotra

The comments come after a section of media claimed that India was considering easing foreign ownership rules

RBI MPC Meeting: While net FDI moderated, gross FDI inflows rose sharply, says Sanjay Malhotra

In the past year, gross FDI into India surged by 14 percent, reaching $81 billion

Nifty Bank hits new high as RBI surprises with 50 bps repo rate cut

The index surged over 1.3 percent intraday to cross the 56,500 mark for the first time, hitting a peak of 56,597.45.

Final gold loan norms likely today or by Monday, says RBI Governor, financiers cheer LTV relief

Malhotra said the Loan-to-Value (LTV) for gold loans below Rs 2.5 lakh will be revised to 85 percent, from the proposed 75 percent as part of the latest recommendations.

Liquidity boost: RBI cuts CRR by 100 bps to support banking system

The timing of the CRR cut is crucial because between September and November, India witnesses a festive season due to which currency leakage from the banking system increases, putting pressure on systemic liquidity.

Vault Matters | Why Japanese and Middle East investors should be welcomed into the Indian banking sector

After the early wave of bank licenses rolled out in the 1990s, there has been a dearth of innovation, ideation, creation of fresh talent, and more importantly, capital into the Indian banking landscape has thinned in the recent years. This may change if India embraces serious foreign interest flowing into the banking sector

We’ve done our bit: RBI's message to govt on growth; shifts stance to ‘neutral’ as policy space narrows

While the neutral stance allows flexibility for the RBI to either cut or hike rates in the future, depending on economic data, Malhotra clarified that it does not signal any immediate action in the next policy review.

RBI shifts stance to 'neutral' on easing inflation, sustained growth

MPC meeting: This marks a reversal from the committee’s April stance when it adopted an 'accommodative' approach to prioritise growth

RBI’s bold growth move on Repo, CRR masks a cautious core; stance change signals pause ahead

RBI’s 50 bps rate cut and CRR slash signal robust growth support, but a neutral stance hints at caution ahead.

RBI cuts CRR by 100 bps to 3% in phased manner, to inject Rs 2.5 lakh crore liquidity into banking system

Alongside the CRR cut, the Monetary Policy Committee (MPC) voted to reduce the repo rate by 50 basis points to 5.50 percent, marking the third consecutive rate cut by the central bank.

RBI MPC cuts repo rate by 50 basis points to 5.5%, changes stance to neutral

The mega repo rate cut comes as retail inflation has softened significantly below the RBI's medium term target of 4%.