Banks

RBI aligns bank capital norms with NBFCs, reviews IFR framework: Governor Sanjay Malhotra

On the proposed changes to the computation linked to capital adequacy, Malhotra said the move does not alter how net profit is calculated but refines the assessment of capital, making it “a better reflection of the capital that the banks have"

Reserve Bank to ask bank boards to focus on policy, not operations

The move follows recent tensions at HDFC Bank, the country's largest lender, where the chairman resigned abruptly, citing differences over "values and ethics."

OPINION | Monetary policy may opt for status quo on interest rates

West Asian conflict has imparted a significant level of uncertainty to the economic environment. It may persuade MPC to wait and watch, while RBI uses it liquidity tools to prevent hardening of yields 

Indian bank stocks’ $95 billion rout may deepen, analysts say

Jefferies estimates banks may face up to 50 billion rupees ($537 million) in losses from the unwinding of currency trades due to central bank directives

Credit-card spending cools to 11% in FY26 amid regulatory clampdown, tighter issuance

Tighter rent payment norms, banks devaluing rewards structures and a shift towards UPI weighed on credit card spending

Monetary policy cycle may turn in FY27 with likely RBI rate hike pivot

If elevated global energy prices persist beyond a quarter or if global food inflation spikes sharply, the probability of an early rate hike by the RBI increases 

Can banks take money from your account without asking? Here’s what the rules actually allow

Understanding when a debit is valid and when you have the right to question it.

OPINION | Vault Matters: Indian banks are going through intangible pain which might be worse than AQR

The difference between an asset quality issue, and governance and process-related issues are that the former can be quantified, and at some point, doubts can be put to rest. In case of the latter, that is almost impossible

Missed locker rent for a year: What banks can do and when you may lose access

Not paying locker rent does not cancel the locker immediately, but it can lead to blocked access, penalties and eventually the locker being opened by the bank.

Private banks turn inexpensive as valuations ease, growth trade-offs persist: Kotak

Kotak Institutional Equities said it prefers large private banks such as Axis Bank, HDFC Bank and ICICI Bank, though it expects similar returns across these lenders. Among mid- and small-sized banks, it prefers Bandhan Bank, DCB Bank, Equitas and Ujjivan.

OPINION | The silent strength of India’s public sector banks

India needs bigger banks to match its growing economy. These banks can support global trade and money flows. Strong PSBs and global banks can grow together 

Why banks sometimes freeze accounts without warning

It feels sudden when it happens, but account freezes are usually tied to compliance checks rather than random decisions by the bank.

OPINION | Vault Matters: RBI’s directive on mis-selling is a band-aid on the wound, not a cure

RBI is trying to fix the distribution aspect of mis-selling. The role of mutual funds and insurers remains unaddressed. Sebi and IRDAI have to step up to address core issues  

OPINION | India’s Banking Liquidity Paradox: Massive infusion but hardening yields

Over 14 months beginning December 2024, RBI injected almost Rs 18 trillion of permanent liquidity. Yet, yields hardened. This was because large-scale dollar sales by the central bank offset the liquidity surge

Overseas investments set for smoother route as RBI reviews norms: Report

Many bankers believe that ambiguities in overseas investment and unofficial curbs discourage outflows.

OPINION | Vault Matters: Why private banks need more returnees like Shyam Srinivasan, Murali Natarajan and Ashok Vaswani

In the backdrop of a shallow talent pool for the top job at private banks, isn’t it time to widen the search and look overseas

High-level banking panel to review voting rights threshold for foreign bank subsidiaries

The proposal to evaluate 26% ceiling on voting rights is viewed as a step towards removing the restrictions around foreign banks taking strategic initiatives. Change will be applicable only to banks operating through the wholly owned subsidiary route.

RBI’s risk-based deposit insurance framework: Who pays less, who pays more, and why it matters

Stronger banks will pay less, weaker banks will pay more, and the rules of risk are being rewritten

Corporate loan revival in sight as Budget 2026 measures spur growth

The recent measures to prop up MSME financing could allow banks to pursue more lending activities to capital-intensive sectors

Financialisation of savings a structural challenge for banks, balance sheets to evolve: SBI chairman CS Setty

Setty said this transition would require banks and markets to prepare for a new funding architecture

OPINION | Vault Matters: When in doubt, hire a PSU Banker

A pattern which started in 2020 has become the playbook for private banks. Does this suggest reluctance to hire young dynamic private bankers or signal a lack of leadership bench strength in private banks?

High-level committee will decide if India needs more, better or bigger banks: FM Nirmala Sitharaman

Sitharaman says strong balance sheets give government room to re-examine banking structure; terms of reference yet to be finalised

RBI closely monitoring lenders’ positions on gold loan portfolios, say sources

After a sharp 15 percent correction in gold prices since Jan 30, the central bank is said to have sharpened its oversight on banks and NBFCs

EU banks can open up to 15 branches in India over 4 years under FTA

India has not offered market access in legal services under the proposed agreement with the EU.