Banking Industry

RBI injects ₹81,590 cr liquidity into banking system via VRR auction

The Reserve Bank of India (RBI) on Friday injected Rs 81,590 crore transient liquidity into the banking system through a three-day variable rate repo (VRR) auction. Transient liquidity is temporary cash flow fluctuations in a financial or banking system, while a Variable Rate Repo (VRR) auction is a monetary tool used by the RBI to inject short-term liquidity into the banking system. In a release the RBI said the funds were infused at a 5.26 per cent cut-off rate. The demand for funds still remained lower than the notified amount of Rs 1 lakh crore despite the sharp drop in liquidity surplus in the banking system. However, in comparison with the previous auction conducted on May 21, the demand is higher from banks in Friday's auction. Currently, the liquidity in the banking system is estimated to be in surplus of around Rs 58,876.29 crore as on May 21, as compared to Rs 1.51 lakh crore as on May 20. The tightness in the liquidity surplus has led to a sharp uptick in the overnight

RBI proposes revised capital adequacy disclosure norms for banks

Draft norms aim to align Indian banks with Basel Pillar 3 requirements and improve transparency, comparability, and market discipline

Axis Bank plans 500 new branches, targets presence in 700 districts in FY27

Axis Bank plans to strengthen its national footprint through 500 new branches, focusing on rural expansion, digital banking, and key customer segments

Bank valuations slump despite stronger corporate earnings growth

The valuation discount of banking stocks relative to the broader market has widened despite the sector remaining one of the key drivers of corporate earnings in the country in recent years

Will no longer be dependent on growth only via gold loans: CSB Bank MD, CEO

CSB Bank expects balanced growth across retail, SME, wholesale and gold loans as it enters the scale phase of its SBS 2030 transformation plan

Missing the woods for the trees? Why bank boards need a governance reset

For years, many bank boards drifted into operational minutiae-approving individual loans, vetting vendors, weighing in on promotions of executives - instead of setting up policies

Criminal breach of trust case against ex-Yes Bank CEO Rana Kapoor, others

Mumbai Police have registered an FIR against former Yes Bank MD and CEO Rana Kapoor and others for alleged illegal transfer of mortgaged property worth Rs 1,000 crore, an official said on Friday. The bank transferred a loan of Rs 150 crore to an asset reconstruction company without classifying it as a Non-Performing Asset, the complainant alleged. The First Information Report was registered at Worli police station against Kapoor, Sudhir Walia, and other bank officials on a complaint filed by Lakhminder Dayal Singh, associated with Saffair Land Development, a sister concern of HDIL. As per the FIR, another HDIL group company, Privilege Power and Infrastructure, had taken a loan of Rs 300 crore from the Worli branch of Yes Bank in 2015. Due to a financial crisis, Saffair Land Development sought a loan of Rs 150 crore, which was sanctioned by the bank in 2016. Properties valued at Rs 1,000 crore of HDIL and its group companies were mortgaged with the bank for securing the loan, which

'Total ECL-related provisioning requirement around ₹10,000 crore'

We expect to extend an additional Rs 18,000 crore- Rs. 20,000 crore of credit under the scheme. We have already identified eligible accounts, and the rollout will begin within the week, he said

Light-touch supervision may mask risks, warns RBI's Swaminathan J

RBI Deputy Governor Swaminathan J cautions that weak supervision may fuel short-term growth but conceal risks, with long-term costs borne by depositors, taxpayers, and the broader economy

Experience with local area banks and RNBFCs should have offered lessons

With the announcement of Saksham, a new initiative to increase the capacities of cooperative banks, the fear is that the RBI might also open up fresh licences for new cooperative banks

High-level panel to oversee banks' balance sheet constraints: DFS secy

Financial Services Secretary M Nagaraju on Friday said the High-Level Committee on Banking for Viksit Bharat announced in this year's Budget will look into public sector banks'balance sheet constraints, so that they can leverage their capital. The government is expected to announce the terms of reference for the panel. "This committee is expected to review the banking sector with a focus on making it more effective, more inclusive, and better aligned with India's growth needs, while maintaining financial stability," he said at the ICPP Growth Conference here. Finance Minister Nirmala Sitharaman had proposed setting up a high-level committee on banking to comprehensively review the banking sector. "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, ...

Merchant bankers on board for ₹3,000 cr QIP: Punjab & Sind Bank MD & CEO

He said net interest margins have bottomed out and will increase in the current financial year

RBI finalises expected credit loss norms; rollout set for April 2027

The ECL framework is forward looking and asks banks to build buffers based on the likely losses an asset will incur

RBI cancels licence of Paytm Payments Bank, cites compliance issues

In January 2024, the RBI directed the bank to stop accepting new deposits, citing non-compliance with rules related to customer due diligence, use of funds and technology systems

IndusInd Bank Q4 profit at ₹533 crore beats estimates on lower provisions

In the year-ago quarter, the bank had reported its biggest-ever quarterly loss due to years of misaccounting of internal derivative trades

We'll grow both our liabilities & assets, but with quality: Tonse, Banodkar

Tonse along with group chief financial officer Niranjan Banodkar, says the focus is also on how to benefit from the collaboration with SMBC

Banking sector resilient; 11-13% credit growth for Jan-June likely: Survey

India's banking sector remains resilient in the backdrop of heightened geopolitical uncertainties, with a majority of bankers anticipating a non-food credit growth of 11-13 per cent during January-June 2026, according to the FICCI-IBA Bankers' Survey unveiled on Sunday. The outlook is supported by improving balance sheets, steady economic activity, sustained demand across multiple segments of the economy with robust retail and SME credit momentum, and early signs of revival in private capital expenditure. In contrast, industrial credit growth is expected to expand at a more measured pace, reflecting a gradual recovery rather than a sharp acceleration. The outlook suggests steady investment activity led by infrastructure development, manufacturing-linked sectors, and government-led capital expenditure. Term loan demand is expected to be largely driven by infrastructure, real estate, auto and auto components, pharmaceuticals, and emerging sectors such as data centres and defence-relat

Govt lists banks allowed to import gold, silver after delay disrupts flows

Authorised by the RBI, the order permits 15 banks, including the State Bank of India, HDFC Bank, and Bank of India, to import both gold and silver from April 1, 2026, to March 31, 2029

RBI rejects Ujjivan SFB's application for universal banking licence

Ujjivan Small Finance Bank on Monday said RBI has rejected its application to transition to a universal bank and advised it to reapply after demonstrating a diversified loan portfolio. In a regulatory filing, Ujjivan SFB said the Reserve Bank has taken note of the bank's recent efforts towards diversification of its loan portfolio. "However, they were of the view that there is scope for progress in this area. Therefore, RBI has returned the above-mentioned application and advised the bank to consider applying again after demonstrating a diversified loan portfolio," Ujjivan said. In February 2025, Ujjivan SFB had announced submitting an application for universal banking licence to the Reserve Bank of India (RBI). Shares of Ujjivan closed at Rs 60.34 apiece on the BSE.

A year of foreign play in finance: A roundup of FY26's defining moves

When it came to banking, the turf on which foreign banks play in India saw dramatic developments last year; the lens through which the banking regulator viewed them also changed