Banking News

Sebi plans review of merchant banking rules, IPO cost structure soon

Markets regulator will also review ICDR norms, including price bands and advertising requirements, as it seeks to simplify processes and lower public issue costs

RBI governance reset puts spotlight on bank chairs, independent directors

Starting October 1, 2026, onboarding of independent directors, their accountability and remuneration may need a relook as RBI seeks more focused board engagement on strategy, risk and governance

India housing prices rise 3.6% in Q1FY27, match year-ago pace

RBI's Housing Price Index rose 3.6 per cent in Q1FY27, with Chandigarh, Jaipur, Kanpur, Lucknow and Thiruvananthapuram recording the strongest gains

RBI sells ₹50000 cr govt securities in OMO to drain surplus liquidity

India's central bank sold ₹50000 crore ($5.2 billion) of bonds under its open market operations program as it stepped up efforts to drain surplus cash from the banking system

Bankers' Books Evidence Act 2026 to come into force from October 1

Bankers' Books Evidence Act, 2026 which got assent of the President of India last month, and is aimed at providing a modern framework for the use of banking records as evidence in line with contemporary banking practices, will come into force from October 1. The notification dated September 10 appoints October 1, 2026 as the date on which provisions of the Act will come into force, the finance ministry said in a statement on Friday. The Act adopts a technology-neutral approach by recognising banking records maintained in physical, electronic, digital, virtual, cloud-based and other contemporary forms, it said. It also provides for simplified and standardised certification of banking records, including through manual, digital or electronic signatures. Greater clarity has also been provided on the summoning of bank officials where the bank is not a party to the proceedings, with a "special cause" to be recorded in writing by the court for such summoning, it said. Further, the Centre

Foreign investors may rejig allocation to Indian financials: Jefferies

Beyond the core earnings trajectory, clarity on the tenure and succession plans of chief executives at large financial institutions will also be important for the sector, analysts said.

EAC-PM calls for bank consolidation without compromising market competition

India should make efforts to consolidate banks in such a manner that a few big banks of equal size would be created, without compromising market competition in the industry, the Economic Advisory Council to the Prime Minister (EAC-PM) said in a working paper. The paper titled 'Reforms, Efficiency, and Productivity of Indian Banking Sector in the Last Decade : A DEA Approach' further said this will help support the growing credit need of the economy as India strives to be Viksit Bharat by 2047. "Though the concentration in the Indian banking industry is low, the market share of the banks varies significantly, starting from 20 per cent to below 1 per cent. "In this context, India should make efforts to consolidate the banks in such a manner that a few big banks of equal size would be created, without compromising market competition in the industry," the EAC-PM said. The paper noted that the bank consolidation was intended to create institutions with stronger capital bases, wider ...

DFS urges RRBs to sustain performance, strengthen credit flow to last-mile

Department of Financial Services DFS Secretary Sanjay Lohiya on Tuesday urged Regional Rural Banks (RRBs) to sustain good financial performance and further strengthen credit flow to the last mile. The net profit of RRBs increased to an all-time high of Rs 10,176 crore in 2025-26 against Rs 6,820 crore in FY25, a jump of 49 per cent. Both gross non-performing assets (GNPA) and net non-performing assets have reached all-time lows of 5.3 per cent and 2.1 per cent, respectively, the finance ministry said in a statement. Reviewing the financial performance here, Lohiya appreciated the commendable performance of all RRBs during 2025-26. At present, 28 RRBs are operating through 22,273 branches across 26 states and 3 Union Territories, covering about 700 districts. The total business of all 28 RRBs has crossed Rs 13.5 lakh crore, surpassing the business level of a few individual public sector banks (PSBs) in FY26. RRBs also continue to achieve all targets and sub-targets prescribed unde

SBI's total business may double to ₹200 trillion by 2030: Chairman

State Bank of India's total business could potentially double to around Rs 200 lakh crore by 2030, when the bank celebrates its platinum jubilee, given the current growth trajectory, Chairman C S Setty said. SBI came into existence on July 1, 1955 through an Act of Parliament, which, among other things, provided for the transfer of the undertaking of the Imperial Bank of India. The country's biggest lender crossed the landmark of Rs 100 lakh crore total business, which is an aggregate of total loans and advances in the second quarter of the last financial year. This further increased to Rs 110.01 lakh crore at the end of June 2026. Whether the bank had set a specific target for its platinum jubilee year, Setty said there was no formal milestone, but the bank's growth trajectory could take its total business to Rs 170-180 lakh crore and potentially as high as Rs 200 lakh crore by 2030. "We don't have any milestone, but if you take the current growth rate, I think we should be around

RBI swap window boosts deposits, but may trim bank NIMs by 3-15 bps

Banks have already mobilised $52.3 billion under RBI's concessional swap window, helping deposit growth and LDRs, but analysts expect NIM dilution of 3-15 basis points

FM asks PSBs to target youth with simple, personalised 24x7 banking service

Finance Minister Nirmala Sitharaman on Tuesday asked public sector banks to keep pace with youth's expectations of simple, intuitive, personalised and round-the-clock banking. Speaking at the PSB Confluence here, she asked public sector banks to launch a month-long 'Banking for Youth' campaign commencing October 2, 2026, with particular outreach to citizens above 16 years of age. The minister said banks should take the campaign directly to youth rather than wait for them to come to branches. Colleges, universities, skill-building institutions and other campuses can become important touchpoints for the campaign through account-opening initiatives, financial awareness and direct interaction, she added. Each of the 12 PSBs should develop its own strategy to attract and engage youth, based on its product offering, regional presence and institutional strengths, she said, adding the larger objective should be to build a long-term banking relationship from "campus to career and beyond", ..

At 15.4%, bank deposit growth highest since December 2016: RBI data

The current account deficit widened to $6.2 billion in June from a $1.2 billion surplus in June 2025, as the merchandise trade deficit increased to $30.2 billion from $19.2 billion

Banks seek more from ATMs as non-cash services remain largely unused

ATMs offer fund transfers, bill payments and several other services beyond cash, but low awareness and the rise of mobile banking have left much of this capacity underused

India sees sharp expansion in retail, MSME credit access since 2021

Retail bureau coverage rose 1.7 times to 78.9 crore borrowers by 2026, while active MSME borrowers more than doubled to 1.9 crore over the five-year period

IndusInd Bank lays out 3-year roadmap, eyes industry outperformance by FY29

The lender plans to restore industry-aligned growth in FY27, accelerate expansion in FY28 and outperform peers by FY29 after strengthening governance and its balance sheet

RBI says bulk deposit norms aim to improve transparency, standardisation

Governor Sanjay Malhotra says the RBI's revised bulk deposit framework seeks to improve transparency and standardise deposit rate disclosures without making major changes to existing norms.

Persistent Systems upbeat on banking, insurance to drive growth: CEO

Strong deal wins across the US and Europe are expected to offset weakness in parts of the healthcare business, while the Nagarro acquisition will strengthen its Europe presence.

UP gains credit-active consumer share as Maharashtra, Tamil Nadu decline

TransUnion Cibil data shows Uttar Pradesh posted the sharpest rise in credit-active consumer share between March 2017 and March 2026, while Maharashtra and Tamil Nadu lost ground

BCRC seeks dedicated equity fund and wider access to RBI support schemes

The self-regulatory body for business correspondents has sought a dedicated equity fund, access to financial inclusion support and a pricing review to strengthen last-mile banking

RBI allows banks to link bulk deposit rates to liquidity profile

Banks can now price bulk deposits based on liquidity characteristics under the LCR framework, while continuing to follow uniform interest rate norms