Page 16 - Banking
RBI to intensify scrutiny of bank auditors after governance lapses
With governance concerns at IndusInd and Karnataka Bank, RBI is expected to tighten its engagement with statutory auditors and examine the role of board sub-committees more closely
 "RBI to intensify scrutiny of bank auditors after governance lapses")
Banks flush with funds but reluctant to pursue aggressive lending
Loan growth for banks is yet to pick up despite a 100 bps cut in the policy repo rate by the Reserve Bank of India (RBI) since February
 "Banks flush with funds but reluctant to pursue aggressive lending")
SBI, other public sector banks to raise $5.25 bn through QIPs in FY26
State-run banks, led by SBI, plan to raise ₹450 billion via QIP in FY26, with the government also targeting stake sales in multiple PSU banks by October
 "SBI, other public sector banks to raise $5.25 bn through QIPs in FY26")
Financial bidding for IDBI Bank expected to conclude by October 2025
"All things have at the high pace and IDBI bank will be completed by October 2025," said the official.
 "Financial bidding for IDBI Bank expected to conclude by October 2025")
Govt banks step up efforts to bridge linguistic chasm with customers
State-owned banks are prioritizing local language skills in their hiring to improve customer service and reduce language barriers, with Bank of Baroda and SBI leading the way
 "Govt banks step up efforts to bridge linguistic chasm with customers")
Corporate 'fraud accounts' pose tough challenges for banking system
SBI also reported former chairman of the group Anil Ambani to the Reserve Bank of India (RBI)
 "Corporate 'fraud accounts' pose tough challenges for banking system")
Wooing depositors: PSBs waiving minimum account balance penalties
May raise risk of increasing dormant accounts in the system
 "Wooing depositors: PSBs waiving minimum account balance penalties")
FinMin directs public sector banks to evaluate board performance
"Independent third-party board evaluations are a widely accepted global practice, and India has only recently begun adopting them," remarked S. Krishnan
 "FinMin directs public sector banks to evaluate board performance")
Govt asks banks to close inactive accounts opened under PM Jan-Dhan Yojana
The concern arises from the increasing misuse of some Jan Dhan accounts by fraudsters as "mule accounts" to carry out cyber fraud
 "Govt asks banks to close inactive accounts opened under PM Jan-Dhan Yojana")
'Growth', guv's tie colour likely to signal rate moves: SBI's report
SBI explores correlations between policy language and RBI Governor's tie colours, suggesting subtle textual and visual cues may foreshadow monetary policy changes
 "'Growth', guv's tie colour likely to signal rate moves: SBI's report")
Muted loan growth, margin woes may weigh on listed banks' Q1 profits
On a sequential basis, profit after tax may decline by 2.2 per cent, due to pressure on interest margins and muted credit growth
 "Muted loan growth, margin woes may weigh on listed banks' Q1 profits")
BoB waives charges on non-maintenance of monthly average balance
Bank of Baroda eliminates penalties for non-maintenance of Monthly Average Balance in standard savings accounts, effective July 1, 2025, though premium accounts remain exempt
 "BoB waives charges on non-maintenance of monthly average balance")
Public sector banks to hire about 50,000 manpower in current financial year
Of the total fresh recruitment, about 21,000 would be officers and remaining would be staff including clerks, as per data collated from various banks
 "Public sector banks to hire about 50,000 manpower in current financial year")
India Ratings removes IndusInd Bank from Rating Watch negative status
Concerns over stability of bank's franchise to persist says agency
 "India Ratings removes IndusInd Bank from Rating Watch negative status")
Banking system liquidity surplus tops ₹4 trillion; strong VRRR demand
Liquidity jumps on government spending and surplus transfer; RBI gets ₹1.7 tn bids at 7-day VRRR, with cut-off at 5.47%; experts see preference for shorter operations
 "Banking system liquidity surplus tops ₹4 trillion; strong VRRR demand")
UCBs see growth in outstanding credit portfolio due to demand, wider reach
Retail credit products have witnessed highest growth in last five years compared to commercial credit
 "UCBs see growth in outstanding credit portfolio due to demand, wider reach")
From BoB to Indian Bank, PSBs report double-digit credit growth in Q1
Bank of Baroda, Indian Bank lead state-owned lenders' strong credit expansion in April-June, while deposits grow at a slower pace
Banking system liquidity hits 3-year high at $3.74 trillion: RBI data
Banking system liquidity rose to a net surplus of Rs 3.74 trillion, the highest since June 2022. The market is now awaiting action from the RBI to manage the surplus and ensure monetary transmission
 "Banking system liquidity hits 3-year high at $3.74 trillion: RBI data")
Indian Bank cuts lending rate for one year maturity by 5 bps to 9%
Besides, the Chennai-based bank has announced the complete waiver of minimum balance charges across all Savings Bank accounts, effective July 7, 2025
 "Indian Bank cuts lending rate for one year maturity by 5 bps to 9%")
AI in currency: How it is quietly rewriting the rules of modern banking
Artificial intelligence is quietly transforming consumer-facing industries
 "AI in currency: How it is quietly rewriting the rules of modern banking")