Recent News
Banking/Finance-Industry-Economic Times
Sumitomo Mitsui Banking Corporation (SMBC) is seeking RBI approval for a wholly-owned subsidiary, signaling its intent to acquire a controlling stake in Yes Bank. Following an initial 20% stake purchase, SMBC aims to increase its holding to nearly 34%, with SBI and other banks likely to sell their remaining shares.
Published on: June 1, 2025
Canara Bank has eliminated the average monthly balance requirement for all savings accounts, effective June 1, to attract deposits amid industry-wide challenges. The bank anticipates a revenue loss of a few hundred crores annually from waived penalties. However, it expects the move to encourage customers to invest in term and recurring deposits, providing an alternative to capital markets.
Published on: June 1, 2025
In fiscal year 2024-25, the Reserve Bank of India levied 353 penalties totaling ₹54.78 crore on regulated entities for statutory contraventions. These penalties addressed non-compliance issues related to cybersecurity, exposure norms, KYC guidelines, fraud reporting, and credit information submissions. Cooperative banks faced the most penalties, followed by NBFCs, housing finance companies, public and private sector banks, and foreign banks.
Published on: June 1, 2025
Kotak Mahindra Bank has announced the appointment of Paritosh Kashyap as Executive Director, effective November 1, succeeding Shanti Ekambaram, who will retire in 2025. Kashyap, a veteran with three decades at Kotak, currently heads the wholesale banking group. His appointment, subject to RBI approval, reflects the bank's strategic leadership transition, acknowledging Ekambaram's significant contributions over 34 years.
Published on: May 31, 2025
Kotak Mahindra Bank has elevated Paritosh Kashyap to Executive Director. This promotion is subject to regulatory approvals. Shanti Ekambaram, the Deputy Managing Director, will retire in October 2025. She has been with the Kotak Group since 1991. Ashok Vaswani, MD and CEO, praised Ekambaram's contributions. Kashyap has been with the Kotak Group for three decades.
Published on: May 31, 2025
The Reserve Bank of India is contemplating interest rate regulations for NBFCs, similar to those for banks, to improve transparency and monetary policy transmission. The RBI aims to ensure borrowers benefit from benchmark rate adjustments by moving away from outdated prime lending rate models. Additionally, the central bank plans to enhance supervision and review fair interest rate practices for NBFCs.
Published on: May 31, 2025
Deutsche Bank orchestrated a significant $3.35 billion private credit deal for the Shapoorji Pallonji Group, securing funds from global investors like BlackRock and Morgan Stanley. The three-year nonconvertible debentures, backed by a portion of SP Group's Tata Sons stake, offer a 19.75% yield.
Published on: May 31, 2025
The finance ministry has suggested the RBI to exempt small borrowers seeking loans below Rs 2 lakh from its draft directions on gold collateral lending, aiming for quicker disbursal. They also proposed implementing the rules from January 1, 2026, citing the need for field-level adjustments. This came after reviewing the RBI's draft guidelines and considering stakeholder concerns.
Published on: May 31, 2025
RBI's annual report released on Thursday shows that transmission of policy rate to end borrowers is the lowest by non-banking finance companies (NBFCs) as compared with banks and an attempt to link finance companies' lending rates to policy rates was "not found feasible at this juncture."
Published on: May 30, 2025
Shardeum, an autoscaling Layer 1 blockchain, is set to revolutionize payments with its PayFi initiative, targeting both micro and macro transactions. Aiming to become the Internet's default payments layer, Shardeum's architecture allows for expansion based on demand, ensuring transaction fees remain exceptionally low, around $0.01 or less. The mainnet launched on May 5th.
Published on: May 30, 2025
Bank of Baroda has launched its first 'Phygital' branch in Kolkata, marking the seventh such branch nationwide. This innovative model blends digital tools with personalized support, enhancing customer experience. The branch integrates self-service kiosks, a video contact center, and universal service desks, catering to both self-service and assisted service needs in a key business hub.
Published on: May 30, 2025
RBI data reveals a moderation in overall bank lending, slowing to 11.2% in April 2025. While retail loan growth decelerated due to declines in unsecured and vehicle loans, certain sectors like jewellery and renewable energy experienced substantial growth. Credit to industry saw a slight increase, with notable acceleration in specific segments like metal products and textiles.
Published on: May 30, 2025
Aditya Birla Capital Limited has invested Rs 249 crore in its wholly owned subsidiary, Aditya Birla Housing Finance Limited (ABHFL). This investment aims to fund ABHFL's growth and improve its leverage ratio. Previously, Aditya Birla Capital announced a Rs 300 crore infusion into ABHFL through a rights issue, maintaining full ownership of the mortgage lender.
Published on: May 30, 2025
The PM SVANidhi scheme is being revamped to offer street vendors higher subsidised loans and UPI-linked credit cards with a limit of Rs 30,000. Banks will facilitate these credit cards for vendors who have successfully repaid initial loan tranches.
Published on: May 30, 2025
The finance ministry has proposed exempting small gold loan borrowers (below Rs 2 lakh) from the RBI's draft guidelines on lending against gold collateral. They also recommended delaying the implementation of the new rules until January 1, 2026, to allow for proper field-level implementation. These suggestions aim to protect small borrowers and address stakeholder concerns regarding the proposed regulations.
Published on: May 30, 2025
The Finance Ministry suggests changes to the Reserve Bank of India's gold loan rules. These revisions include delaying the implementation. The ministry wants to protect small borrowers. Loans under Rs 2 lakh may get an exemption. The ministry also proposes a later start date of January 1, 2026. The RBI is now reviewing all feedback before finalizing the guidelines.
Published on: May 30, 2025
A recent study of bank fraud over the past two years reveals a split picture: private banks experienced a greater number of fraud incidents, but public sector banks suffered larger financial losses due to fraud.
Published on: May 29, 2025
Reserve Bank of India will soon release norms to stop mis-selling. This will protect consumers from misleading sales tactics. In FY25, the RBI received many complaints about loans and digital banking. The RBI is also creating a system to check how well banks protect customers. They are working to educate people and improve complaint handling with AI.
Published on: May 29, 2025
The Institute of Chartered Accountants of India (ICAI) will review private lender IndusInd Bank’s financial statements for the financial years 2023–24 and 2024–25 in the wake of recent fraud allegations, reported PTI citing ICAI President Charanjot Singh Nandal on Thursday.
Published on: May 29, 2025
Irdai is pushing insurance companies to broaden their reach. The focus is on covering more individuals. A ₹300 crore awareness campaign is planned. It aims to promote insurance adoption. Deepak Sood highlighted the evolving nature of risks. Tapan Singhel noted India's vulnerability due to low insurance penetration. General insurance has a low grievance ratio compared to other sectors.
Published on: May 29, 2025
Indian banking profits soared to a record high in FY25, driven by public sector lenders' strong performance. PSBs witnessed a 26% profit surge, narrowing the gap with private banks' 7% growth. Improved asset quality, aided by regulatory measures and bankruptcy code, contributed to the sector's impressive earnings, despite concerns about unsecured loans and microfinance stress.
Published on: May 29, 2025
The general insurance industry pledges ₹100 crore annually for 3-5 years to boost insurance adoption, aiming to bridge the gap between availability and penetration. Industry leaders emphasize the need for increased insurance coverage, currently at 1% of GDP, compared to the global average of 3.3%. They highlight insurance's crucial role in cushioning vulnerable populations and driving economic recovery post-catastrophes.
Published on: May 28, 2025
Axis Max Life Insurance announced that MD and CEO Prashant Tripathy will retire, effective September 30, 2025, to pursue personal interests. Tripathy has been with the company since 2007 and has served as MD & CEO for the past six years.
Published on: May 28, 2025
Indel Money, a gold-loan NBFC, reports strong growth. Assets under management increased by 52%. The company's AUM reached Rs 2,400 crore. Profit also rose by 10% to Rs 61 crore. NPA levels improved significantly. The company plans to expand further. It aims for Rs 10,000 crore in disbursements in FY26. The NBFC also expects AUM to reach Rs 4,000 crore.
Published on: May 28, 2025
India's life insurance market is projected to surge at 10.5% annually over the next decade, significantly outpacing the global average. This growth is fueled by a robust economy and supportive government policies. The Indian market is poised to become the second largest in Asia, surpassing Japan, driven by reforms and increased foreign investment.
Published on: May 28, 2025
Irdai is worried about some life insurers. These insurers are allegedly changing actuarial assumptions. This is to keep solvency ratios above the minimum. Irdai has warned CEOs and actuaries. The regulator is pushing for tighter oversight. Risk-based inspections have begun. These inspections will assess if assumptions align with past data.
Published on: May 27, 2025
The Supreme Court has requested the Centre's response to a petition challenging the exclusion of epilepsy from health insurance coverage. Filed by NGO Sanvedana Foundation, the plea argues that IRDA's master plan violates the rights of individuals with epilepsy. The petition contends that classifying epilepsy as a 'permanent exclusion' in health insurance policies is unscientific and unconstitutional, restricting healthcare access.
Published on: May 27, 2025
Finance Minister Nirmala Sitharaman praised India’s fintech sector for enhancing digital public infrastructure and enabling inclusive financial services for merchants and MSMEs. During a visit to Pine Labs in Noida, she reviewed fintech innovations and interacted with beneficiaries of digital initiatives. She highlighted how DPI, including direct benefit transfers, has transformed service delivery and empowered millions, especially women.
Published on: May 27, 2025
Jio BlackRock Asset Management, a joint venture between Jio Financial Services (JFSL) and BlackRock, on Tuesday announced the receipt of regulatory approval from the Securities and Exchange Board of India (SEBI) to commence operations as an investment manager for their mutual fund business in India.
Published on: May 27, 2025
Sanlam, a major asset manager, has entered the Indian market by investing Rs 105 crore for a 23% stake in Shriram Asset Management Company (AMC). This investment makes Sanlam a co-promoter alongside Shriram Credit Company. The capital infusion will be used to expand Shriram AMC's offerings and attract talent.
Published on: May 27, 2025
The Reserve Bank of India has instructed finance companies to exclude default loss guarantees (DLGs) from fintech firms when provisioning for stressed loans, impacting digital lending service providers. NBFCs must now make full provisions on these loans, diminishing their appeal for new business.
Published on: May 27, 2025
The Reserve Bank of India is considering allowing banks to offer term deposits with tenures shorter than seven days, seeking feedback from banks amidst concerns over slowing deposit growth. While some banks see this as a way to boost liquidity and attract deposits, others worry about potential asset-liability mismatches and limited lending opportunities for such short-term funds.
Published on: May 26, 2025
National Financial Reporting Authority received a complaint against IndusInd Bank. The complaint is about accounting issues in forex derivative portfolio. Reserve Bank of India is providing inputs to NFRA. Securities and Exchange Board of India and Institute of Chartered Accountants of India are also reviewing the bank's books. IndusInd Bank reported losses due to these discrepancies.
Published on: May 26, 2025
A recent CRIF High Mark report reveals a mixed bag for India's microfinance sector. While early-stage delinquencies have slightly improved, longer-term repayment challenges persist, particularly for banks and small finance banks. Karnataka's tightened regulations led to a surge in non-performing assets, and Tamil Nadu anticipates a similar trend as it moves towards regulation.
Published on: May 26, 2025
The microloan portfolio across all lenders declined by 14% year-on-year, reaching ₹3.81 lakh crore at the end of March. The asset quality remains under pressure, though there was a slight improvement in early-stage delinquencies (loans unpaid for up to 30 days), which dropped to 1.4% in March from 1.8% in December.
Published on: May 26, 2025
SBI is constructing a scalable model for consistent returns through disciplined cost management and growth in fee-based income. The bank reported a net profit increase of 16% in FY25, leveraging advanced analytics for credit underwriting and focusing on operational efficiency through automation. Customer experience is central, with simplified onboarding and AI-powered personalized offerings.
Published on: May 26, 2025
The Reserve Bank of India (RBI) is reducing capital buffer requirements for public sector banks (PSBs) due to government ownership, which lowers risk exposure. PSBs are considered safer due to the government's financial backing, demonstrated by capital infusions exceeding ₹3.1 lakh crore.
Published on: May 26, 2025
Citigroup has appointed Prashant Thakker as Head of the Asia South Corporate Bank, effective immediately, according to an internal memo. He will oversee strategy, financial performance, talent, and execution across nine markets: India, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, Bangladesh, and Sri Lanka.
Published on: May 26, 2025
Reliance Infrastructure Ltd, led by Anil Ambani, has achieved debt-free status on a standalone basis by FY25, eliminating bank and financial institution loans. The company reported a consolidated profit of Rs 4,387 crore in Q4 FY25, with adjusted EBITDA soaring by 681%. Operational improvements include reduced transmission losses in Delhi and increased ridership on Mumbai Metro Line 1.
Published on: May 26, 2025
The Indian retail credit industry remains far from saturation due to several factors. The country continues to add many working-age citizens, particularly millennials and Gen Z, who have better incomes and changing spending habits. Increased global integration and upward social mobility have significantly influenced consumer behaviour, creating new demand for credit, says Indian Bank managing director Binod Kumar.
Published on: May 25, 2025
The RBI's draft allows pooling and securitising stressed retail and corporate loans, barring categories like farm loans, education loans, fraud, and wilful defaults. Investors must not be related to borrowers or disqualified under IBC norms.
Published on: May 25, 2025
Punjab National Bank aims for a substantial Rs 16,000 crore recovery in the current fiscal year, striving to maintain slippages below 1%. The bank will focus on technical write-off accounts, targeting Rs 6,000 crore in recovery from this segment. PNB also plans to expand its RAM sector lending to 58% of its loan book to offset interest rate reduction impacts.
Published on: May 25, 2025
IIFL Finance has secured regulatory approvals to open branches and extend credit services in Jammu & Kashmir, aiming to provide crucial financial access to underserved communities. This initiative supports the revival of small businesses and households, complementing IIFL's existing CSR activities in the region focused on education, healthcare, and community empowerment.
Published on: May 25, 2025
Life Insurance Corporation of India has secured a Guinness World Record for selling the highest number of life insurance policies within a single day. On January 20, 2025, LIC's extensive network of 4,52,839 agents successfully issued 5,88,107 policies across India. This achievement was driven by the 'Mad Million Day' initiative led by MD and CEO Siddhartha Mohanty.
Published on: May 24, 2025
Fusion Finance reported a net loss of Rs 165 crore for Q4 FY25, marking its fourth consecutive quarterly loss due to severe asset quality stress. Increased provisions for bad loans, totaling Rs 255 crore, significantly impacted profitability. The company is seeking extensions from lenders after breaching financial covenants on borrowings of Rs 4,763 crore.
Published on: May 24, 2025
Rising gold prices are helping small businesses and reducing loan defaults. Lenders like Muthoot Finance and Manappuram Finance are auctioning less gold. Borrowers are prioritizing repayments. Banks are also closely monitoring gold loans. Reserve Bank of India's warning against malpractices has improved lending standards. More people are now able to retain their pledged gold.
Published on: May 23, 2025
The Central government formed a Payments Regulatory Board. This action may decrease the Reserve Bank of India's power. The government will appoint some members to the PRB. Previously, the RBI opposed an independent body. Experts suggest the new board could speed up payment innovation. The digital payments ecosystem was earlier managed by RBI's DPSS. Now, PRB will take over.
Published on: May 23, 2025
Reserve Bank of India plans to simplify claiming unclaimed deposits. New rules allow KYC updates via video calls and business correspondents. This helps reactivate dormant accounts, especially in rural areas. The move aims to ease reclaiming funds from accounts inactive for over 10 years. Users can check the UDGAM portal and soon update KYC remotely.
Published on: May 23, 2025
The Reserve Bank of India has levied a penalty of Rs 63.6 lakh on Union Bank of India for non-compliance with the Banking Regulation Act and directions related to collateral-free agricultural loans. Additionally, Transactree Technologies (Lendbox) faces a Rs 40 lakh penalty for violating norms outlined in the Peer-to-Peer Lending Platform Directions, 2017.
Published on: May 23, 2025
State-run banks are set to implement a unified format and standard operating procedure for disciplinary actions against employees, aiming for consistency across public sector banks. A working group is finalizing the guidelines, potentially effective in June, incorporating best practices and suggestions from an internal committee.
Published on: May 22, 2025
