Page 4 - Banking
Banks set to book healthy treasury gains in Q1 FY27 as yields slump
Rupee sees strongest monthly rise since West Asia war started
 "Banks set to book healthy treasury gains in Q1 FY27 as yields slump")
Who is Rajiv Kumar? Former CEC named as HDFC Bank's part-time chairman
From leading India's public sector bank clean-up to overseeing the world's biggest election, Rajiv Kumar now takes on one of corporate India's most closely watched boardroom roles
 "Who is Rajiv Kumar? Former CEC named as HDFC Bank's part-time chairman")
Musical chairs? Axis Bank, Bandhan Bank CFOs quit within an hour
Back-to-back CFO resignations at Axis and Bandhan Bank fuel speculation of a leadership reshuffle, with Puneet Sharma tipped for HDFC Bank's top finance role
 "Musical chairs? Axis Bank, Bandhan Bank CFOs quit within an hour")
HDFC Bank clears governance hurdle for chief executive officer renewal
HDFC Bank's legal review finds no evidence behind governance allegations, clearing path for leadership stability, chairman appointment and CEO term extension
 "HDFC Bank clears governance hurdle for chief executive officer renewal")
Banks need reforms, deeper debt mkts for next growth phase: Deepak Parekh
Former HDFC chairman Deepak Parekh says India must pursue fresh banking reforms, deepen debt markets and broaden capital sources to finance long-term economic growth
 "Banks need reforms, deeper debt mkts for next growth phase: Deepak Parekh")
PFC-REC merger may reduce overlapping bond issuances, improve efficiency
Market participants expect the merger to improve treasury efficiency and pricing discipline, while the combined entity continues to tap bond markets for funding
 "PFC-REC merger may reduce overlapping bond issuances, improve efficiency")
Banks may use NRI deposits to ease funding pressures: Axis Bank CEO
Indian banks are taking advantage of a move this month by the Reserve Bank of India to absorb the hedging costs incurred by lenders that raise dollars overseas
 "Banks may use NRI deposits to ease funding pressures: Axis Bank CEO")
HDFC Bank may pick new chairman before deciding on CEO extension
MD & CEO Sashidhar Jagdishan's tenure ends this October
RBI's AI risk framework to strengthen governance, oversight of AI models
The central bank's draft guidelines require board-approved model risk frameworks, stronger oversight of AI models and enhanced safeguards for customer-facing artificial intelligence applications
 "RBI's AI risk framework to strengthen governance, oversight of AI models")
Top 10 Indian firms' value jumps 3.5x in a decade; financials dominate
Reliance Industries has emerged as India's most valuable company over the past five years, while financial services firms continue to dominate the country's corporate rankings
 "Top 10 Indian firms' value jumps 3.5x in a decade; financials dominate")
Banks wait & watch as dollar-bond investors seek richer returns
Premium rose steadily after HDFC secured tightest-ever spread for an Indian lender
 "Banks wait & watch as dollar-bond investors seek richer returns")
RBI introduces total return swaps, broadens credit derivatives market
RBI introduces Total Return Swaps and widens credit derivatives participation to deepen the corporate bond market and improve risk management
Large commercial banks may opt to lend up to 9x against FCNR(B) deposits
Large banks may offer up to 9x leverage against FCNR(B) deposits, potentially helping NRIs earn double-digit returns under the RBI's swap scheme
 "Large commercial banks may opt to lend up to 9x against FCNR(B) deposits")
RBI drafts rules for NBFC, AIFI participation in term money market
The draft framework permits transactions to be executed in over-the-counter markets, including NDS-CALL and electronic trading platforms authorised by the RBI
Mule accounts decoded: The hidden banking layer behind cybercrime
Mule accounts have become a significant challenge for India's cybercrime enforcement agencies, as through these accounts the fraudsters move illicit funds through banks before detection
 "Mule accounts decoded: The hidden banking layer behind cybercrime")
RBI drops separate onshore-offshore foreign-exchange position calculation
The revised framework aligns foreign exchange risk calculations with Basel standards and allows certain structural foreign-currency exposures to be excluded from NOP calculations
RBI caps compensation for digital fraud victims at ₹25,000 under new norms
However, the central bank has deferred the implementation of the framework by six months, from July 1, 2026, to January 1, 2027
 "RBI caps compensation for digital fraud victims at ₹25,000 under new norms")
RBI asks banks to provide shadow reversal in 5 days for credit card frauds
RBI has mandated provisional credit within five days for disputed credit card fraud cases and strengthened customer safeguards
 "RBI asks banks to provide shadow reversal in 5 days for credit card frauds")
Bandhan Bank raises FD rates by up to 20 bps on select deposit tenors
The lender has increased rates on fixed deposits in the two- to five-year buckets as banks intensify efforts to mobilise deposits amid widening credit-deposit gaps
 "Bandhan Bank raises FD rates by up to 20 bps on select deposit tenors")
Commercial banks can lend against FCNR(B) deposits, clarifies RBI
Central bank permits loans and standby letters of credit against FCNR(B) deposits under the swap facility, while leaving leverage decisions to lenders
 "Commercial banks can lend against FCNR(B) deposits, clarifies RBI")