Page 6 - Banking Sector

CDs emerge as key Q4 funding source for banks despite elevated rates

Q4FY26 CD issuances hit Rs 5.27 trillion; FY26 at Rs 14 trillion, outstanding near Rs 7 trillion

Vinay Tonse takes charge as YES Bank CEO, outlines growth roadmap

New CEO Vinay Tonse outlines a four-pillar strategy centred on people, products, processes and technology to drive growth and strengthen YES Bank's operations

RBI proposes new BC structure and branch norms in draft guidelines

RBI's draft norms revamp BC structure, tighten branch rules, and aim to expand banking access while strengthening governance and consumer protection

Bank stocks' $95 billion rout may deepen as risks mount amid Iran war

Global investors withdrew a record ₹32,700 crore from the shares of financial services companies in the first two weeks of March, according to National Securities Depository data

Governance must be a core bank value, not just a compliance checklist

HDFC Bank's boardroom tensions highlight a deeper issue: governance failures persist not due to weak rules, but weak internalisation of accountability and oversight

HDFC Bank, BoB report strong credit growth; deposits lag pace

HDFC Bank and Bank of Baroda report robust loan growth in March 2026, with advances outpacing deposits even as time deposits continue to drive overall deposit expansion

Mid, small sized private banks' credit growth outpace deposit in FY26

Advances at select mid- and small-sized private banks grew faster than deposits in FY26, reflecting tighter funding conditions across the sector

YES Bank names S Anantharaman as CRO to strengthen risk management

YES Bank appoints S Anantharaman as Chief Risk Officer to oversee enterprise-wide risk, including credit, market, and operational frameworks

Banks' supervisory data quality index inches up to 90.9 in December

RBI data shows sDQI for scheduled commercial banks rises to 90.9 in December 2025, with gains in accuracy and consistency but some decline in completeness and timeliness

Banks urge RBI to revisit forex cap, flag MTM losses, forced unwinding

Banks seek relief as RBI caps forex exposure, triggering potential $40 billion unwinding and raising concerns over MTM losses and rupee volatility

Bank credit growth slows to 13.8% in March 15 fortnight, deposits rise

Bank credit growth eased to 13.8 per cent in the March 15 fortnight, while deposit growth improved to 10.8 per cent, reflecting tax outflows and seasonal lending trends

Goldman Sachs bets big on banking, staples, defence, upstream oil companies

Goldman Sachs said that it remains 'Overweight' on banks as it sees NIM expansion in a higher rates environment and also the lenders maintain good asset quality

West Asia conflict: Bankers suggest Covid-like moratorium for MSMEs

Flag cash-flow risks to RBI, Centre amid West Asia war

HDFC Bank crisis is exposing deeper cracks in India Inc's governance model

Many large Indian firms that once commanded premium valuations have had their records and reputations questioned over the past decade

Despite credit-guarantee scheme, banks may stay cautious on lending to MFIs

Banks are likely to remain cautious in lending to MFIs despite the credit guarantee scheme, with underwriting standards and risk assessment frameworks unchanged

Kotak Mahindra Bank to absorb KMIL business into bank from April 2026

Kotak Mahindra Bank to absorb KMIL operations from April 2026, simplifying structure and aligning with Reserve Bank of India norms

Loan guarantors face risks; negotiate cap on liability in loan deed

To protect insurance policies purchased for spouse from recovery proceedings, place it under Married Women's Property Act

Indian banks' margins to come under pressure as deposit growth lags: Nomura

Nomura has warned that bank margins may decline in FY27 as credit growth continues to outpace deposits. Rising CD ratio, falling LCR, and weak deposit growth remain key risks for the banking sector.

RBI injects ₹79,256 crore into banking system via overnight VRR auction

The Reserve Bank of India (RBI) on Monday infused Rs 79,256 crore transient liquidity into the banking system through overnight variable rate (VRR) auction. The RBI injected the funds at cut-off and weighted average rates of 5.26 per cent, the central bank said in a release. The liquidity injected was much lower than the notified amount of Rs 1 lakh crore, despite the sharp drop in surplus liquidity in the banking system due to advance tax payments. Currently, liquidity in the banking system is estimated to be in deficit of about Rs 65,395.64 crore as on March 23. On March 20, the central bank had infused Rs 25,101 crore transient liquidity in the banking system through a three-day VRR auction. On March 17, the RBI injected Rs 48,014 crore liquidity in to the banking system via seven-day VRR. Prior to this, the RBI infused Rs 3.50 lakh crore of durable liquidity into the banking system through open market purchase (OMO) of government securities since January 2026.

Transparency needed: Public should know about the happenings at HDFC Bank

The sudden resignation of its chairman, therefore, cannot be treated as an ordinary event