Banks

RBI withdraws IFR requirement for banks maintaining market risk capital

RBI eases IFR norms for banks under revised investment portfolio framework

RBI decides against imposing additional capital buffer on banks

The Reserve Bank of India said prevailing systemic risk conditions do not warrant activating the countercyclical capital buffer for banks at this stage

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

RBI may pay highest-ever dividend to help Centre tackle West Asia crisis

The Reserve Bank of India (RBI) is expected to pay the highest-ever dividend to the government, providing the Centre with a fiscal cushion to address challenges arising from the ongoing Middle East crisis, sources said. Last year the RBI made a record dividend payout of Rs 2.69 lakh crore to the central government for 2024-25, 27 per cent higher than Rs 2.11 lakh crore transferred in the previous year. RBI is likely to decide about dividend quantum in its board meeting expected to be held during this month, sources said. The transferable surplus for any financial year is arrived at on the basis of the revised Economic Capital Framework (ECF) as approved by the Central Board of the RBI. The revised framework stipulates that the risk provisioning under the Contingent Risk Buffer (CRB) be maintained within a range of 7.50 to 4.50 per cent of the RBI's balance sheet. As per the Budget documents, the Centre expects Rs 3.16 lakh crore in dividends and surpluses from the Reserve Bank of

RBI cancels licence of Sarvodaya Co-operative Bank over weak finances

The central bank cited inadequate capital, weak earnings prospects, and regulatory non-compliance while directing the Maharashtra registrar to initiate winding-up proceedings

J&K Bank aims for ₹5 trn biz, near-zero net NPA in 2-3 years: MD & CEO

MD & CEO Amitava Chatterjee says the bank aims to become a national player with a stronger retail footprint outside Jammu & Kashmir

Performance, public-sector banks and George Bernard Shaw conundrum

The challenges before the performance-linked incentive structure of senior PSB executives

South Indian Bank Q4 results: Net profit rises 19.3% to ₹408 crore

South Indian Bank reported a 19.3 per cent rise in fourth-quarter net profit, helped by a sharp fall in provisions and steady growth in loans and deposits

Explained: Why Indian govt is warning banks about Anthropic’s ‘Mythos’ AI | Claude Mythos

India has asked banks to stay on high alert over Anthropic’s powerful new AI model, Claude Mythos. Why is an unreleased AI tool triggering alarms in Delhi, London and Washington?

Banks not probe agencies, can't freeze accounts arbitrarily: Allahabad HC

The Lucknow bench of the Allahabad High Court on Friday expressed displeasure over what it termed a growing tendency of banks to arbitrarily freeze accounts, observing that a bank acts as a trustee and not an investigative agency. A division bench of Justice Shekhar B Saraf and Justice Avadhesh Kumar Chaudhary imposed a cost of Rs 50,000 on Indian Overseas Bank for freezing a customer's account without valid justification, directing that the amount be paid to the account holder within four weeks. The order came while allowing a petition filed by M/s SA Enterprises, a company which deals in fishery machinery. In its plea, the company stated it had received Rs 23 lakh in its bank account through RTGS on January 16, 2026. The bank froze the account citing suspicion as the firm had declared an annual income of Rs 5.76 lakh at the time of opening the account. In its defence, the bank argued that the transaction appeared suspicious and the action was taken under provisions of the Prevent

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, ...

RBI allows banks to implement suo motu loan resolution in calamities

RBI has allowed banks to implement suo motu loan resolution for borrowers affected by natural calamities, setting timelines for invocation and completion

Federal Bank Q4 results: Net profit up 22% at ₹1,259 cr on strong NII

Excluding one-off gains, profit rises 11% YoY as margin strength, improved asset mix and steady loan growth support performance

Reserve Bank of India finalises ECL norms, rollout set for April 2027

RBI introduces expected credit loss framework for banks, to be implemented from April 2027, replacing incurred loss norms and strengthening credit risk provisioning

Credit card spend touch 3-month high at ₹2.19 trillion in March: RBI data

FY26 card spends up 12% to ₹23.62 trillion

Sitharaman meets banks on AI risks after concerns over Anthropic's Mythos

Finance Minister Nirmala Sitharaman on Thursday met heads of banks on risks related to Artificial Intelligence (AI) following global concerns over Anthropic's Mythos model threatening data security of the financial systems. The meeting assumes significance in view of development of the Claude Mythos AI model by Anthropic claiming that it has found vulnerabilities in many major operating systems. According to sources, risks and measures needed to deal with AI were discussed at the meeting. The meeting chaired by the Finance Minister deliberated on various risks that AI posed on the financial sector, sources said, adding that banks have been urged to take preemptive measures to secure their systems, data and money of customers. The meeting was attended by top officials of banks, officials from Reserve Bank of India, and Ministry of Electronics and Information Technology. According to a senior finance ministry official, the ministry and the RBI are studying the extent of risks that t

Credit growth outpaces deposit mobilisation in FY26 despite easing

Bank credit growth continued to exceed deposit mobilisation in FY26, highlighting persistent funding pressures for lenders despite a year-on-year improvement in both metrics

Ujjivan SFB shares tumble after RBI returns universal bank application

RBI has returned Ujjivan Small Finance Bank's application for universal bank conversion, citing the need for greater loan book diversification before reconsideration

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

Banks exit bulk of rupee arbitrage positions ahead of RBI deadline

RBI imposed limits on banks on ‌March 27, directing them to cap their net open positions in the rupee in the onshore market at $100 million, requiring that they comply by April 10