Page 4 - Indian Banking Sector

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 ...

Indian Bank hands over sanction letters worth ₹1,011 cr to over 3,000 women

Public sector Indian Bank has handed over sanction letters worth Rs 1,011 crore to over 3,000 women, extending financial support to Self Help Groups across Tamil Nadu. Ministry of Finance, Department of Financial Services, Secretary M Nagaraju presented the cheques to the beneficiaries at a Mega Self Help Group Credit Outreach Programme held at Tamukkam Convention Centre, here. In his brief address, Nagaraju emphasised that access to capital for livelihood activities is crucial. "Such initiatives not only reduce the dependence on sources of informal credits but also help inclusion into the formal financial ecosystem," he observed. "More than 3,000 women from various self-help groups across Tamil Nadu were part of the event. Sanction letters to the tune of Rs 1,011 crore were handed over during the mega SHG credit outreach programme," the Chennai-based bank said in a press release on Sunday. Indian Bank Managing Director and CEO Binod Kumar, Executive Directors Ashutosh Choudhury, S

RBI to intensify scrutiny of bank auditors after governance lapses

With governance concerns at IndusInd and Karnataka Bank, RBI is expected to tighten its engagement with statutory auditors and examine the role of board sub-committees more closely

MSME lending a new driver of credit growth? Asset quality a key test

Credit growth to small and medium enterprises is outpacing all other sectors, but the test of asset quality lies ahead

How digital technology platforms are lubricating the NPA disposal process

The digitalisation of the entire process, has the potential to reduce costs for banks and buyers, speed up recovery for banks, and provide fair access to buyers

Muted loan growth, margin woes may weigh on listed banks' Q1 profits

On a sequential basis, profit after tax may decline by 2.2 per cent, due to pressure on interest margins and muted credit growth

AI in currency: How it is quietly rewriting the rules of modern banking

Artificial intelligence is quietly transforming consumer-facing industries

New project finance norms: Banks seek exemption for smaller loans

On June 19, the RBI announced the final norms for project finance, prescribing a one per cent general provision for all projects, as compared to 0.4 per cent now

Karnataka Bank shares recover after CEO, ED resign; bank reassures clients

Following the surprise resignations of its MD & CEO and Executive Director, Karnataka Bank says it remains strong and well-capitalised, and begins search for replacements

Banking system may face near-term margin pressures, says RBI report

RBI's Financial Stability Report warns banks may see tighter margins and lower credit growth due to rate resets, liability shifts and weaker retail loan asset quality

SBI plans to solarise 4 million homes by FY27, marks 70 years of service

As it celebrates 70 years, SBI commits to solarising 4 million homes by FY27, scaling rooftop projects, modernising ATMs, and advancing AI-driven customer solutions

Slice SFB aiming to close FY26 in black, not looking to raise any capital

Slice Small Finance Bank has turned profitable on a monthly basis and is aiming to close FY26 in the black, a top official has said. The entity, which came out of a surprising merger between the fintech Slice and the North East SFB a few months ago, is adequately capitalised and not looking to raise any capital, its executive director Rajan Bajaj told PTI. The current focus is to build a pan-India business using the low-cost digital channels, and the entity is not interested in any more mergers, Bajaj said, adding that it may look at transitioning to a universal bank in the next five years. Before the merger, the North East SFB had reported a loss of Rs 441 crore, and Slice was also reporting losses. "We have turned profitable post-tax on a monthly basis and will close the year in profits," Bajaj said. The bank is adequately capitalised and the buffers will also be supported by the profits, he added. As per recent media reports, the bank was aiming to raise up to USD 300 million

Indian banks ready to lend, but tycoons show little appetite to borrow

Private sector expansion plans are at a three-year low, with bank exposure to key industries like roads, power and telecom down to 11% of their loan book, half the level seen a decade ago

Bank's group coverage: Affordable, easier to acquire; but check for limits

Group insurance from banks may be affordable and easy to onboard but customers must watch for coverage limits, exclusions, and renewal risks before signing up

Strong FY25 performance supports standalone credit profiles of banks: Fitch

Fitch Ratings on Monday said Indian banks' strong financial performances in the financial year ended March 2025 support the standalone credit profiles of rated banks and position the sector for future growth. The sector reported improved asset quality, stronger capital buffers and stable profitability despite the slowest sector loan growth in four years. "We expect steady performance to continue, though sustaining sound core financial metrics that strengthen loss-absorption buffers and resilience to economic shocks relative to the previous cycle would support positive momentum for rated banks' standalone credit profiles," Fitch said. The rating agency believes banks can sustain steady performance across most credit metrics in FY26, except for earnings due to cyclical pressures on margins and credit costs. "Indian banks' strong financial performances in the financial year ended March 2025 (FY25) support the standalone credit profiles of rated banks and position the sector for future