Page 4 - Banking Industry

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

RBI moots ₹1 trillion asset threshold for NBFC upper layer classification

Opens door for inclusion of state-owned NBFCs

Bessent, Powell warn CEOs of cyber risks posed by Anthropic's AI model

The meeting, held at the Treasury Department in Washington, was aimed at ensuring banks were aware of the risks posed by Mythos

RBI to push for reporting of offshore rupee trades despite resistance

The RBI wants lenders to start sharing data on at least 70% of such derivative transactions, starting February 2027

Fresh loan yields diverge across PSU and private banks, says report

Meanwhile, yields on outstanding loans declined by 4 bps in February, with state-owned banks' yields easing by 1 bp and private sector banks seeing a sharper 6 bps decline

India tech funding drops 23 per cent to $10.9 bn in FY26: Tracxn report

India's technology sector saw funding decline in FY26, but investor sentiment signals a gradual recovery as the market stabilises with disciplined investment and focus on fundamentals

No single trigger: HDFC Bank ex-chair cites a range of issues behind exit

Atanu Chakraborty says resignation was driven by value incongruence over multiple issues, including AT-1 bond mis-selling and governance concerns, not any single trigger

HDFC Bank delayed action in AT-1 bond mis-selling: Atanu Chakraborty

Chakraborty abruptly resigned from the bank's board earlier this month, citing differences over "values and ethics" and triggering a stock selloff and a damage control exercise by the lender

Window dressing of accounts: A common March-end ritual for many banks

Ever wondered why banks' advances and deposits spike in the last few days of March - only to drop soon after?

HDFC Bank appoints law firms to review Chakraborty's resignation letter

Move follows Atanu Chakraborty's resignation citing ethical concerns; bank seeks to reinforce governance standards amid investor worries

Why Credit Suisse AT1 bond fallout has returned to haunt HDFC Bank

HDFC Bank faces fresh scrutiny after its former chairman's exit revived concerns over client losses from Credit Suisse AT1 bonds mis-selling allegations and regulatory lapses

Banking liquidity turns deficit in 2026 on tax outflows, weak RBI support

Banking system liquidity often takes a hit towards the end of India's fiscal year which runs through March 31, temporarily pushing up super-short-term borrowing costs

A structural reset in Indian M&A financing: RBI reforms reshape market

Amended framework empowers domestic banks, boosts flexibility in deal-making and introduces stringent credit safeguards

IDBI Bank shares plunge 16.5% amid reports govt may scrap stake sale

Stock falls sharply after reports suggest the government may scrap the proposed stake sale in IDBI Bank as bids reportedly came below the reserve price set for the divestment

Of mis-selling and insurance for all by 2047: A bancassurance reality check

How to make bancassurance a genuine vehicle for financial security rather than a source of grievance and distrust

The road to 2047: Some thoughts for banking panel for Viksit Bharat

Issues the high-level committee can look into to prepare the Indian banking system for 2047

Bank CD ratio stays at record 82.5% as credit growth outpaces deposits

India's credit-deposit ratio remained at a record 82.5% for the fourth consecutive fortnight ended February 15, 2026, as credit growth continued to outpace deposit growth across the banking system