Indian Banking Sector

HDFC Bank, ICICI Bank and SBI saw their market capitalisation decline in the July-September quarter, while Kotak Mahindra Bank overtook Axis Bank to become the fourth-largest lender by market value

Lenders report strong credit and deposit growth aided by FCNR(B) inflows, though analysts flag concerns over CASA momentum

Crisil Coalition Greenwich said banks recovered around $400 million after market spreads widened and positions were normalised following the RBI directive

The viral document, dated September 30, claims the Finance Ministry declared every Saturday a public holiday for public sector banks. PIB says no such notification was issued

Extending the Saturday holiday at banks is no longer just a union demand - it is a logical step for the well-being and operational efficiency of 1.8 million employees in a digitally driven economy

'Digital first, customer first, nation always' is the philosophy guiding State Bank of India (SBI) as it drives business growth, Chairman of the country's biggest lender C S Setty said. Talking to PTI in an interview, Setty said the bank's focus over the past two years has been on strengthening its capital base, deepening its role in the financial sector and building a more digital, customer-centric banking model. Looking back at his tenure, Setty said several of the most visible objectives his team set had been achieved, including capital augmentation, the listing of SBI Mutual Fund and the bank's strategic role in addressing the Yes Bank issue. "These are the most visible outcomes of my tenure," said Setty, who completed his two years as the bank's chairman last month. However, he said the more consequential changes were taking place beneath the surface and would strengthen both SBI and the wider banking industry over the longer term. At the heart of this transformation, he said

Indian Bank's plans to enter the life insurance and asset management segments are progressing as planned, and it would soon approach the board for approval, the bank's MD and CEO Binod Kumar said. The lender is currently in the process of seeking approval from its board for the proposed subsidiaries or joint ventures, following which other necessary processes will be initiated, Kumar told PTI in an interview. Regarding entry into the life insurance and asset management space, he said, "It is very much on track. We are in the process of seeking board approval and thereafter initiate other relevant regulatory and administrative processes." Kumar said identifying the right partner would be a crucial part of the exercise, as a strong partner can help accelerate wealth creation. "It will take time, say one year or so. Identifying a good partner is the most essential part of that. If you have a good partner, wealth creation is faster," he said. Kumar also underlined the strategic import

While the Reserve Bank of India's special swap facility shields banks from FX risk on the deposits' principal amounts, interest payments need to be managed by lenders independently

Indian Bank has received board approval to open a representative office in Dubai, as it seeks to expand its overseas operations, leveraging the large Indian diaspora across West Asia. Currently, the bank has a full-service international branch in Singapore and branches in Colombo and Jaffna (Sri Lanka). Besides, it has an IFSC Banking Unit (IBU) functioning as an offshore/foreign branch from GIFT City, Gandhinagar. "We are getting good business from our GIFT City branch, including participation in various syndicated loans...my aim now is to open a rep office in Dubai...We have a good number of non-resident Indians settled in Dubai and about 33 per cent of the working population is Indian," Indian Bank MD and CEO Binod Kumar told PTI in an interaction. For the representative office in Dubai, the bank's board has given its approval and the bank is in the process of seeking other regulatory approvals. Besides, Kumar said, the bank is exploring the possibility of having a presence in .

Much has been said about over-lending and defaults. Here's how lending works for the bottom-of-the-pyramid

Indian Bank plans to add about 100 branches this year, with a primary focus on increasing the bank's presence in the Central and Western parts of the country. To manage growing business and replace retiring employees, the bank would increase its headcount by about 2,500 personnel, including specialist officers. "Last year we opened 100 branches. This year too we have similar plans. Just on August 15, which was our foundation day, the bank inaugurated 15 branches across the country," Indian Bank MD and CEO Binod Kumar told PTI in an interaction. The bank had 6,003 domestic branches and three overseas -- Singapore, Colombo and Jaffna and IFSC Banking Unit (IBU) at Gandhinagar as of June 30, 2026. The seventh-biggest public sector bank enhanced its presence in the eastern region and Uttar Pradesh with the amalgamation of Allahabad Bank in 2020. "Now we are trying to increase our presence in the Central and Western parts of the country," he said. On the recruitment side, Kumar said,

The CEO search comes after about six months of upheaval at HDFC Bank where leadership issues have weighed on its shares

Earlier in the month, BoB ​had raised $400 million through three-year bonds at a 5.1140% ‌coupon and $300 million through five-year notes at a 5.3180% ​coupon

The slowdown in NFOs is more to do with the product suite being complete rather than concerns on the market's trajectory, Setalvad said.

Public sector lender Indian Bank expects its gold loan book to cross Rs 1.5 lakh crore in the current financial year, supported by robust demand for the product. "Gold loan is safe lending for banks...it is not a consumption loan, but mostly it is income-generating and also helps small businesses to grow. Last year, we saw very significant growth of 30 per cent in the segment due to a jump in gold prices. It will be slower this year as there is a 30 per cent decline in gold prices," Indian Bank MD and CEO Binod Kumar told PTI in an interaction. This growth would come from tonnage, he said, adding that the gold loan segment is likely to grow about 20 per cent. Currently, the gold loan portfolio is around Rs 1.25 lakh crore, and the book should exceed Rs 1.5 lakh crore during this financial year at the anticipated growth rate, he said. Kumar further said that RAM (Retail, Agriculture, and MSME) constitutes 65 per cent of the overall loan book while the remaining 35 per cent is from .

The offerings reached $8 billion Thursday, breaching the previous record of $7.92 billion hit in 2019, according to data

The bank plans to sell a benchmark-sized three-year US currency note and is holding calls with fixed-income investors starting Monday

Deliberations at PSB Confluence to act as template for panel

Finance Minister Nirmala Sitharaman on Monday said the government would soon constitute a high-level panel on 'Banking for Viksit Bharat'. In this year's Budget, the Finance Minister had proposed a high-level committee on 'Banking for Viksit Bharat', to comprehensively review the sector and align it with India's next phase of growth. Addressing the two-day PSB Confluence here, Sitharaman said, "We expect the announcement of the high-powered committee to look into the banking sector... soon the committee will be announced." She said the committee would give its thoughts and recommendations to the government. "I propose setting up a 'High Level Committee on Banking for Viksit Bharat' to comprehensively review the sector and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection," she had said in the Budget speech on February 1, 2026.

To cash in on the RBI's concessional swap window, Indian Bank plans to raise USD 400 million through External Commercial Borrowings (ECB) this week to support its business growth. In addition, the public sector lender may mop up another USD 600 million via ECB before the Reserve Bank of India's deadline of December 31, 2026. "The bank is considering raising USD 400 million via the ECB route as early as this week...the overseas fund raise would come at a very competitive rate," Indian Bank MD and CEO Binod Kumar told PTI in an interview. Post August, he said, the bank would consider garnering another USD 600 million as the RBI window is available till the end of the calendar year. Overall, the bank is planning to garner USD 1 billion from the ECB and about USD 2 billion via Foreign Currency Non-Resident (Bank) or FCNR (B) deposits, he said. "Indian Bank has already raised USD 1.5 billion from FCNR(B) deposits...we have seen good demand from NRIs. They are willing to put their money