Financial Sector

Bank credit grew 17.44 per cent year-on-year in May, marking the ninth consecutive month of double-digit expansion, reflecting sustained demand for loans from both retail and corporate borrowers, according to the latest Reserve Bank data. On May 15, credit growth was seen at 16.06 per cent, indicating a sharp pickup by month-end. Since January 31 this year, credit growth has stayed above 13 per cent and ranged between 14 and 17 per cent thereafter. The uptrend became more pronounced from September 2025 onward, when growth accelerated to 10.21 per cent and 10.29 per cent in successive fortnights, and remained firmly in double-digit territory thereafter. On September 3 last year, the GST Council approved a simplified two-tier tax structure of 5 per cent and 18 per cent, a move seen as improving compliance clarity and business sentiment. October and November consolidated the recovery, with lending growth moving past 11 per cent and hovering in the 11-11.4 per cent range, supported by

RBI plans to estimate India's natural real interest rate and potential GDP growth in FY27 to strengthen macroeconomic forecasting and policy analysis

The IMF warns that AI-powered cyberattacks could threaten global financial stability, exposing vulnerabilities in digital payment systems and banking infrastructure

The association said that the investment round represents an industry commitment to building a regulated digital public infrastructure layer for consent-based financial data sharing

India's robust macroeconomic and financial sector fundamentals are likely to cushion the impact of a sustained oil price shock, though economic growth could slow by up to 80 basis points if crude averages USD 130 per barrel in 2026, according to S&P Global Ratings. Under its stress scenario, corporate earnings before interest, tax, depreciation and amortisation (EBITDA) could decline 15-25 per cent in FY27, with leverage rising by 0.5x-1x, while banking sector asset quality may weaken, pushing bad loans to around 3.5 per cent. "India isn't immune to the shocks reverberating from the Middle East war. The pain of higher energy prices and supply disruptions may persist for months, crimping economic activity across households, corporations, and banks," S&P Global Ratings said in a report. However, strong corporate balance sheets, well-capitalised banks and a resilient external position provide buffers against the impact. S&P Global Ratings assumes Brent crude at USD 130 per ..

Uncertainty lingers over Tata Sons de-classification as upper-layer NBFC

A new report has flagged a delayed risk cycle for India from the US-Iran conflict, as liquidity tightens and cash-flow stress builds before defaults, even as headline indicators remain stable

Marc Pilgrem will step down from JioBlackRock Investment Advisers and return to BlackRock, with Swapnil Bhaskar set to take over as CEO as the venture expands its digital wealth platform

Former RBI deputy governor flags need for larger financial institutions, stronger capital base and consolidation across banking and NBFC sectors to support economic expansion

In January 2026, mutual funds increased their exposure to domestic sectors such as services, cement, real estate, consumer services, financial services, and power & utilities

And bigger problems await from policy bottlenecks that the Budget has left untouched

High-level committee on banking for Viksit Bharat to steer banking reforms for next growth phase

Any future public-sector bank consolidation must carefully weigh the pros and cons, including whether it will deliver meaningful synergies, says Nagaraju

Regulators must walk the tightrope to balance growth with stability

In the financial sector, replacing existing regulations with new ones often adds costs without improving outcome

Among its top stock picks, JM Financial continues to back large lenders, including State Bank of India (SBI), ICICI Bank, Bank of Baroda (BoB), and Axis Bank

While factories faced headwinds, Indian finance gained ground in the eyes of global strategic capital

The relationship between the central bank and the government is holding back India's financial sector

Within non banks, the fastest growth was in trust companies, hedge funds, money market funds and other investment funds, which all posted double digit rates of growth

Trai said the direction has been issued "to enhance consumer trust, curbing spam, and preventing fraudulent activities perpetrated through voice calls"