Page 3 - Indian Banking Sector

RBI eases rules by dropping overlap curbs on banks, group entities

RBI has removed proposed restrictions on business overlaps between banks and their group entities, giving operational freedom and boosting major lenders with NBFC arms

Benefits of AI should not overshadow prudent risk management: RBI dy guv

RBI Deputy Governor M Rajeshwar Rao said AI adoption in banking must be measured and responsible, stressing strong governance, ethical use and alignment with long-term stability

IBPS PO Prelims result 2025: How to check results, cut off and next stage

The IBPS PO Prelims Result 2025 is expected in the last week of September. Scorecards for those who took the test are available for download at ibps.in. The exam was held on August 17, 23, and 24

Japan's SMBC completes 20% acquisition in Yes Bank, becomes top stakeholder

In May, SBI and seven private sector banks that had invested in Yes Bank during its reconstruction in March 2020, decided to sell a 20 per cent stake for ₹13,482 crore to SMBC

Corporate credit growth to revive in H2 FY26, says Crisil Ratings

Crisil Ratings expects bank credit growth to accelerate in H2 FY26 to 11-12%, driven by retail loans and NBFCs, with corporate credit growth rebounding to 9.7%

Banks step up focus on fee-based income; treasury gains come under pressure

Further, bankers said that there is still room to reduce rates on term deposits, and bulk deposit rates have already declined

IndusInd Bank refutes ex-CFO Gobind Jain's allegations against chairman

IndusInd Bank has rejected allegations made by its former CFO, Gobind Jain, against Chairman Sunil Mehta, calling the claims meritless and part of an attempt to deflect accountability

SBI sets Sep 5 as record date to exercise call option on Tier-II bonds

The bank has approval from the board of directors to raise up to Rs.20,000 crore through debt capital in 2025-2026 (FY26)

Indian banks' net interest margins likely to improve in H2 FY26: S&P

S&P Global expects Indian banks' margins to recover in H2 FY26 after RBI's 100 bps rate cut hit Q1 earnings, with SBI, ICICI posting profit growth and asset quality seen healthy

SBI to Canara Bank: Some PSBs raise home loan rates to shield margins

Senior State Bank of India executive said the slight tweak (hike) in rates for home loans was on account of reduction in business discount. Risk premium remains the same

Focused on maintaining low-cost funding profile, says ICICI chairman

ICICI Bank will continue to prioritise a stable, granular, and low-cost funding profile alongside governance, digital growth, and customer-centric strategies for sustainable progress

Trump's 50% tariffs forcing Indian banks to scrutinise exporters' loans

Lenders are asking borrowers more pointed questions when vetting new export financing proposals or renewals of such funding

PNB set to sell NPAs worth ₹5,000 cr, eyes 50% minimum realisation: MD

In a bid to shore up recovery, the country's second-largest public sector lender Punjab National Bank (PNB) has identified about 100 non-performing asset (NPA) accounts for sale to asset reconstruction companies (ARCs) during the current financial year. "More than 100 accounts we have identified...the book size will be somewhere around Rs 4,000-5,000 crore. That is the outstanding book (for sale to ARCs)," PNB MD and CEO Ashok Chandra told PTI in an interview. Asked about the amount the bank can realise from the sale, he said, "We expect to recover something in the range of 40-50 per cent minimum. Through that route also, we are expecting a good recovery should happen this financial year". There may be an account where 100 per cent recovery is also going to take place because you have good security now, but in some cases it could be low, he said, adding that "we are anticipating that average recovery should be 40-50 per cent minimum". Chandra also said the bank has devised the righ

PNB poised to touch landmark ₹30 trn total business by FY26 end: MD

Punjab National Bank (PNB) is well poised to touch the milestone of Rs 30 lakh crore total business by the end of the current financial year and the country's second biggest lender has the right strategy in place to achieve it, the bank's MD and CEO Ashok Chandra said. Total business of PNB rose by 11.6 per cent to Rs 27.19 crore at the end of the first quarter of the current financial year. PNB is closely followed by Bank of Baroda with total business of Rs 26.43 lakh crore while Canara Bank at Rs 25.64 lakh crore at the end of June 30, 2025. "We have a target of Rs 29.56 lakh crore for the current financial year. We may do better than our target and can touch Rs 30 lakh crore by March next year but let me add that we are very mindful that whatever the top line we are going to build, it should add profit to my bank," he told PTI. In an interview, Chandra emphasised that PNB is very conscious of the operating profit and even in the first quarter itself the bank has recorded the ...

Tamilnad Mercantile Bank targets completion of digital push by FY26

Private sector Tamilnad Mercantile Bank is set to complete its digital transformation programme -- commenced last year -- in a phased manner within the financial year. Last year, the Tuticorin-based bank had earmarked Rs 150 crore to implement a range of technology-driven upgrades. These include development of Oracle Human Capital Management (HCM) software, Oracle CX-Customer Relationship Management (CRM) software, Vendor Management software for centralised expense management, and paperless automation of approvals. "A sophisticated net banking platform (DEH) has been designed to enhance digital banking experiences for both retail and corporate clients. Ongoing projects such as website and mobile banking revamps are slated for phased completion within the current financial year," the bank's MD and CEO Salee S Nair told PTI. The bank was also engaged in completely revamping the internet banking and have roped in IT major Infosys for this. "I think, by December end we should also have

Key amendments to banking laws come into force from August 1, 2025

Reforms under the 2025 banking law include governance changes, enhanced audit rules and stronger depositor protection for PSBs, cooperative and private banks

Retail mortgage loans by NBFCs, HFCs seen at ₹20 trn by FY28: ICRA

Retail mortgage lending by NBFCs and HFCs to grow at up to 22 per cent CAGR through FY28, led by demand and limited unsecured credit availability, says ICRA

Kotak Mahindra Bank consolidated adj net profit up 1% at ₹4,472 crore in Q1

Reported profit down 40% as last year's profit of ₹7,448 cr was boosted by a ₹3,013 cr gain from sale of stake in insurance arm

Kotak Bank launches Solitaire to target India's growing affluent class

Kotak is India's fourth-largest private bank after HDFC Bank Ltd., ICICI Bank Ltd. and Axis Bank Ltd. Its private banking division is among the largest wealth managers in the country

IBA urges banks to speed up ISO 20022 shift to avoid payment issues

Indian Banks' Association (IBA) has asked all banks to fast-track the implementation of the SWIFT ISO 20022 norms, failing which they may face difficulties in cross-border payments. In a letter recently written to heads of all banks, IBA Chief Executive Atul Kumar Goel said it is essential for lenders to begin migration by August 2025 to ensure sufficient buffer time for monitoring ISO 20222 transaction volumes. ISO 20022 is a global standard for financial messaging that the Society for Worldwide Interbank Financial Telecommunication (SWIFT) is adopting for cross-border payments and reporting. This new standard for messaging aims to improve the payments flow through faster processing, visibility, cost reduction, enhanced reconciliation and increased interoperability. As many as 3 banks in India reached a migration percentage rate of above 85 per cent, while the majority of banks are still targeting migration closer to the global deadline of November 2025, the letter said. This ...