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Banking/Finance-Industry-Economic Times

Indian banks' profitability to ease this fiscal on lower treasury gains, ECL provisions: Crisil

Indian banks will see a slight dip in their return on assets this fiscal. This is due to lower treasury income and early provisions for a new accounting rule. Despite this, profitability will remain strong, well above historical averages. Net interest margins are expected to stay stable. Credit growth will continue to be healthy.

Published on: May 30, 2026

Circulate Capital commits $150 million to India to invest in recycling companies

Circulate Capital has committed $150 million from its second fund to Indian recycling companies, building on initial successes. The firm, backed by major corporations and development finance institutions, is expanding its focus to critical materials like metals, aiming to diversify supply chains away from China.

Published on: May 30, 2026

IIFCL eyes Rs 75,000 crore sanctions in FY26 after record year, says MD Rohit Rishi, NPA Drops to 0.40%

India Infrastructure Finance Company Ltd (IIFCL) aims for Rs 75,000 crore in sanctions for FY26, a significant increase. This expansion follows the removal of key lending restrictions, opening new avenues for growth. IIFCL achieved its highest-ever sanctions in FY25-26, with disbursements also rising. The company is exploring emerging sectors and strengthening its conventional project pipeline.

Published on: May 30, 2026

Bank frauds rise 46 per cent

Although number of frauds for public and private sector banks reduced, the amount involved has increased over the years. Number of frauds was highest under card, internet, and digital payments category in the past two financial years.

Published on: May 29, 2026

Supreme Court seeks police and CBI response on Lilavati Trust's plea against HDFC chief

The Supreme Court is examining an appeal by Lilavati Kirtilal Mehta Medical Trust, which had accused HDFC Bank MD Sashidhar Jagdishan of bribery. The Bombay High Court had previously quashed the case. The Supreme Court has asked for responses from the CBI and Mumbai Police. It noted that personal benefit allegations might still need scrutiny.

Published on: May 29, 2026

Iran war: Public sector banks asked to stay prepared

Public sector banks received guidance from the Centre to prepare for global uncertainties. The finance ministry reviewed bank performance and launched a portal for unclaimed financial assets. Banks were urged to adopt austerity measures and support borrowers under the ECLGS 5.0 scheme. Efforts to strengthen digital banking and credit access for MSMEs were also discussed.

Published on: May 29, 2026

Banks' RoA to slip up to 0.15% in FY27 on lower treasury income, ECL provisions: Crisil

Indian banks will see a dip in their return on assets this financial year due to less income from investments and banks setting aside money early for new credit loss rules, Crisil said. Net interest margins are expected to stay steady; competition for deposits is increasing, potentially raising funding costs for banks, it added.

Published on: May 29, 2026

OPL in talks to sell stake to AvenuesAI, eyes AI-powered credit revolution

Online PSB Loans (OPL) is in advanced talks to bring AvenuesAI on board as a minority stakeholder, with AvenuesAI planning to acquire a 7% equity stake. This strategic investment will see AvenuesAI become the sole AI-led platform in OPL's investor consortium, enhancing credit access for the underserved through a blend of AI, payments technology, and public-sector digital banking.

Published on: May 29, 2026

Credit keeps its lead over deposits as gold loans shine bright

Bank credit is growing faster than deposits. Lending to industries is slowing down due to global uncertainties. Loans against gold jewellery are still increasing, though at a slightly slower pace. Overall, banks are seeing a shift in their lending patterns. This trend is expected to continue with moderating credit growth this fiscal.

Published on: May 29, 2026

AvenuesAI plans strategic investment in Ratnaafin Capital NBFC to drive AI-led embedded lending

AvenuesAI is planning a minority investment of up to 2.5% in Ratnaafin Capital, a scaled new-age NBFC with a lending book exceeding INR 2000 crores, as part of its strategy to build an AI-led embedded finance and digital lending ecosystem through partnerships with specialised NBFCs.

Published on: May 29, 2026

Deposit rates fall sharply by 30 bps in April as banks move to protect margins

Indian banks aggressively cut fresh deposit rates in April 2026 to protect margins, with the weighted average falling to 5.77%. Simultaneously, lending rates saw a slight increase, widening the gap and signaling efforts to rebuild net interest margins. This trend, however, raises concerns about the equitable transmission of monetary policy to borrowers.

Published on: May 29, 2026

India insurers seek doubling of tax-free limit for some products to boost inflows, sources say

Indian life insurers are asking the government to double the tax-free limit for insurance policies. This move aims to increase money flowing into these funds. Inflows have slowed down since new tax limits were introduced in February 2023. Higher inflows would support government borrowing needs for long-term projects. The Life Insurance Council has formally requested this change.

Published on: May 29, 2026

RBI highlights strong banking sector health, says lenders can withstand severe shocks

In the fiscal year 2025-26, India's financial landscape demonstrated remarkable stability. Both banks and non-bank entities showcased solid balance sheets, reflecting a significant uptick in asset quality and sturdy capital reserves. With gross bad loans hitting their lowest levels in decades, comprehensive stress tests reaffirmed that banks are well-prepared for potential financial adversities.

Published on: May 29, 2026

IDBI Bank stake sale back on table; Centre explores revival options

The bids remain ‘alive’ and the government is examining legal provisions under the tendering framework that allows for bids to be accepted even if offers are below the reserve price, said the people cited above.

Published on: May 29, 2026

Karur Vysya has a four-pronged plan to move up to the next level: B Ramesh Babu, MD & CEO

After a decade of downsizing the wholesale business, Karur Vysya now plans to reverse it by raising the corporate loan share to 20% in the next two years from 14% at present. It also plans to enter into the credit card business, and loans against mutual funds are on the cards, too, as is a renewed focus on microloans.

Published on: May 28, 2026

Supreme Court seeks govt, RBI response to plea for audit of banks' realty exposure

The Supreme Court has asked the government and the Reserve Bank of India for their response to a petition that wants banks' dealings with real estate projects to be reviewed. The court also wants an investigation into developers accused of misusing homebuyers' money. Several authorities and builders have been issued notices.

Published on: May 28, 2026

Listed banks earned a record profit of ₹4 lakh crore in FY26

Indian banks achieved a record consolidated net profit exceeding ₹4 lakh crore in FY26. Top lenders SBI, HDFC Bank, and ICICI Bank contributed over half of this aggregate. Private banks slightly outpaced state-run banks in profit share. This growth faced headwinds from rising bond yields and a cap on net open positions.

Published on: May 28, 2026

Karur Vysya Bank bets big on credit cards, microloans and corporate push to double down on growth

Karur Vysya Bank is set for significant growth. The bank plans to expand its balance sheet by entering the credit card business and offering loans against mutual funds. A renewed focus on microloans and increasing corporate lending are also key strategies. These initiatives aim to diversify revenue streams and boost overall expansion.

Published on: May 28, 2026

Mid-tier entities in Indian BFSI under-invested in security, most exposed to cyberattacks: Report

Indian mid-tier banks and financial firms face significant cyber risks. They have embraced digital technology but lag in cybersecurity spending compared to global peers. Attackers are leveraging advanced AI, making cyber threats more potent and less costly. Many Indian CISOs report defenses are being outpaced. Institutions must now integrate AI defense with securing their own AI systems to build resilience.

Published on: May 28, 2026

Central Bank of India well-positioned to surpass Rs 5,000 cr profit in FY27: MD Kalyan Kumar

Central Bank of India targets Rs 5,000 crore annual profit during this fiscal year. A new tax regime offers a significant boost. The bank plans 150 new branches and hiring 1,400 employees. Customer centricity, HR transformation, and technology are key drivers. Enhanced cybersecurity builds customer trust. These steps position the bank for a crucial role in India's economy.

Published on: May 28, 2026

Hari Gopalakrishnan, Nicholas Macksey appointed as EQT's co-heads of private capital Asia business

Swedish fund EQT has appointed Hari Gopalakrishnan and Nicholas Macksey as co-heads of its Private Capital Asia business, following Jean Eric Salata's elevation to EQT Group chair. Both long-serving executives have been instrumental in building EQT's Asia franchise. Asia presents compelling long-term investment opportunities, particularly in technology and services.

Published on: May 28, 2026

Non-banks increase microfinance share amid muted demand

The overall microfinance gross loan portfolio stood at ₹3.34 lakh crore at the end of April, down from ₹3.39 lakh crore a month ago, said the credit information company.

Published on: May 27, 2026

HDFC Bank denies allegations of disguising interest payout

HDFC Bank stands resolutely against accusations of misconduct as an investigative report alleges that it masked differential interest payments to MSRDC as part of its marketing budget. The bank emphasizes its stringent internal controls and refutes any speculation of wrongdoing.

Published on: May 27, 2026

LIC launches revamped Jeevan Sathi policy

LIC has introduced a new Jeevan Sathi plan. This plan provides both savings and protection. It is a joint life policy covering a married individual and their spouse. The minimum sum assured is Rs 3,00,000. The minimum entry age is 18 years. The maximum entry age depends on the chosen plan option.

Published on: May 27, 2026

Indian banks more exposed to West Asia crisis among APAC region: Moody's

Indian banks face significant exposure due to energy import reliance. Higher fuel costs will strain consumers and businesses, increasing credit stress. Non-bank lenders with unsecured retail loans are particularly vulnerable. Despite these pressures, Indian banks possess strong capital buffers.

Published on: May 27, 2026

IDFC First Bank receives Rs 514.82 crore insurance payout on microfinance defaults, expects full provision write-back

IDFC First Bank has successfully secured a substantial allocation of over Rs 500 crore from the Credit Guarantee Fund for Micro Units. This funding is targeted at eligible microfinance loans and is expected to enhance the bank's financial performance by allowing it to reverse previously set aside provisions for defaults.

Published on: May 27, 2026

FinMin to meet chiefs of PSU banks on Fri to review credit flow to agri, MSME sectors

Public sector banks posted record profits of Rs 1.98 lakh crore in the financial year ended March 2026. The finance ministry will meet bank chiefs to review performance and credit flow to agriculture and MSMEs. Discussions will also cover regional rural banks, digital frauds, and recovery mechanisms. This meeting follows a period of strong profitability and business growth for PSBs.

Published on: May 27, 2026

Insurance sector may face impact if West Asia crisis prolongs: LIC chief Doraiswamy

The insurance sector may face moderation if the Middle East crisis persists, potentially reducing people's income and impacting spending and saving patterns, according to LIC CEO R Doraiswamy. He also stated that LIC is prepared for further stake dilution by the Centre, awaiting the right market conditions. LIC recently reported a 23% increase in net profit for the March quarter.

Published on: May 27, 2026

MFI portfolio dips 9 pc in April on private banks' cautious stance: Report

In what can bring some cheer to the industry battling a host of challenges on asset quality for over a year, assets unpaid for over 30 days declined to 2.5 per cent in April 2026 from 6.4 per cent in the year-ago period.

Published on: May 27, 2026

Irdai asks insurers to tie senior exec performance to customer service

India's insurance regulator, Irdai, is changing how insurance company executives are evaluated. Performance and pay will now be linked to customer results, not just financial numbers. Insurers must also share more data on product performance and customer service. This aims to build trust and accountability.

Published on: May 27, 2026

Govt health spending triples to Rs 3.85 lakh crore in 2022-23: National Health Accounts

Government spending on healthcare has surged to Rs 3.85 lakh crore in 2022-23, nearly tripling from a decade ago. This increased public investment has led to a substantial drop in household out-of-pocket expenses for treatment. The share of government health spending in GDP has also risen. This indicates a positive shift towards more affordable and accessible healthcare for all citizens.

Published on: May 27, 2026

Banking sector key to realising Viksit Bharat vision: SBI Chairman C S Setty

SBI is set to play a key role in India's growth. The bank is focusing on a 'Digital First, Customer First' strategy. Investments in technology, data, and AI will create a responsive banking ecosystem. SBI aims to deliver personalized experiences across all channels. Physical branches will integrate with digital platforms for an omni-channel approach.

Published on: May 27, 2026

HDFC Bank 'strongly' rejects Rs 45 cr payment route wrongdoing

HDFC Bank has strongly denied media reports alleging wrongdoing. The bank stated its internal oversight, audit, and control systems are robust. This clarification follows a report about an internal investigation into Rs 45 crore payments. The payments were reportedly disguised as marketing expenses to a public sector undertaking. HDFC Bank maintains its commitment to transparency and strong governance.

Published on: May 27, 2026

Banks need to act fast as customers turn to AI for stock picks and savings yields: McKinsey & Company

Customers are embracing generative AI at an unprecedented pace. This rapid adoption is outpacing traditional technologies, leaving banks with limited time to adapt. Consumers are already using AI for sophisticated financial tasks, even outperforming professional stock pickers. Banks must quickly evolve their products and services to meet this growing demand and trust in AI.

Published on: May 27, 2026

India said to prepare Rs 10,000 crore LIC stake sale next month

India is preparing to launch a new share sale for Life Insurance Corporation of India next month. This offering could bring in as much as Rs 10,000 crore. The government intends to sell a stake of approximately 2% to institutional investors. This move is part of ongoing efforts to increase public shareholding in the state-run insurer.

Published on: May 27, 2026

ATM cash loaders demand more money to cover increasing expenses

Cash logistics firms are urging banks for higher ATM replenishment fees due to escalating operational costs. Soaring fuel prices and increased minimum wages are pushing expenses up by an estimated 15-20%. A surge in replenishment trips, driven by demand-supply gaps, further inflates fuel expenses. The industry is exploring ways to optimize trips to manage these rising costs.

Published on: May 27, 2026

Banks seek RBI guidance as multiple nominations create claim settlement hurdles

Banks are facing difficulties settling claims when multiple people are nominated on accounts. This is causing operational problems for financial institutions. They are now seeking guidance from the Reserve Bank of India. Existing rules allow up to four nominees. Issues arise when nominees do not claim jointly. Courts have also added to the confusion with differing judgments.

Published on: May 27, 2026

ICICI Bank adds most credit cards in April amid rising competition

Axis Bank added 63,446 cards in April, less than half its February tally. Kotak Mahindra Bank remained steady at 33,038 additions. "We are focused on growing the business and growing it with the right set of customers in a profitable way," said ICICI Bank Group chief financial officer Anindya Banerjee. "We have been seeing reasonably steady new customer acquisition and would hope to see better numbers in terms of growth."

Published on: May 26, 2026

Irdai links executive pay at insurers to elimination of unfair practices

The move is part of new KMP performance evaluation rules, under which the regulator has made 50% of key performance indicators (KPIs) mandatory and far more prescriptive than earlier, according to industry executives. For the remaining 50% weightage in performance assessment, the nomination and remuneration committee or board may assign additional role-specific parameters aligned with the insurer's business plan, with the metrics and evaluation criteria required to be clearly defined upfront in the remuneration policy.

Published on: May 26, 2026

RBI approves 3-month extension for Fino Payments Bank interim CEO

Fino Payments Bank announced that the Reserve Bank of India has approved a three-month extension for Ketan Merchant as interim CEO. This follows the earlier approval for his appointment after the arrest of MD and CEO Rishi Gupta. Gupta has since taken voluntary retirement. The bank's shares saw a rise on the BSE.

Published on: May 26, 2026

Nomura Asset, Capital Group, others buy 5.3% stake in Premier Energies for Rs 2,291 cr

Global financial institutions and Indian mutual funds have bought a 5.3 percent stake in Premier Energies. The deal involved promoters selling shares worth over Rs 2,291 crore. This investment comes as Premier Energies secured significant orders for solar cells and modules. The company is expanding its manufacturing capacities for cells and modules.

Published on: May 26, 2026

RBI tightens norms for re-appointment of directors on UCB boards

The Reserve Bank of India has introduced new rules for Urban Co-operative Banks. Directors can now serve for a maximum of ten years. Following this, a mandatory three-year cooling-off period is required before re-appointment. This measure aims to prevent directors from circumventing tenure limits. The new directions are effective immediately, ensuring better governance in these financial institutions.

Published on: May 25, 2026

Private banks likely to outperform govt banks in earnings growth over next 2 years: Report

Private banks are set for stronger earnings growth in the coming two years. Loan growth is expected to be similar for both private and public sector banks. However, private lenders will likely see better profits due to stable margins and fewer risks. Public sector banks may face profitability pressures from various factors. Market valuations are considering current banking sector challenges.

Published on: May 25, 2026

Shriram General Insurance ties up with Piramal Finance for product distribution

Shriram General Insurance has joined hands with Piramal Finance. This collaboration will bring insurance products to more people. Piramal Finance's large network will help SGI reach customers. The partnership focuses on semi-urban and rural markets. It aims to make insurance easily available. This will help protect customer assets and financial futures.

Published on: May 25, 2026

Priority sector lending boosts inclusion, not always guarantee growth: EAC-PM

India's priority sector lending has aided financial inclusion for decades. However, a recent report suggests that simply increasing directed credit might not lead to higher economic growth. The analysis indicates that while these policies have helped reduce poverty, forcing credit into poorer districts may be inefficient. Priority Sector Lending Certificates help banks manage risks associated with these loans.

Published on: May 25, 2026

Lenders urge RBI for hedging support framework to revive overseas borrowing

Indian banks and companies are asking the Reserve Bank of India for help with offshore debt. High costs to protect against currency changes make borrowing abroad more expensive than at home. This is slowing down foreign fundraising. A new support system could lower these costs. This would help bring more foreign money into India and support its economy.

Published on: May 25, 2026

We are ambitious and working to become a top 5 private bank again: Vinay Tonse, MD & CEO, Yes Bank

Yes Bank is embarking on an ambitious journey to enhance its foundational elements—people, processes, products, and technology. With a keen eye on both corporate and retail sectors, the bank is committed to fostering resilient growth. While it remains vigilant about lending to MSMEs in light of geopolitical uncertainties, there's currently no sign of distress.

Published on: May 24, 2026

IRFC to raise ECB loan worth $2 billion to finance large infra projects

Indian Railway Finance Corporation is set to raise USD 2 billion through external commercial borrowing. This funding will primarily be in Japanese yen to support business growth in the current financial year. The company has already secured a loan agreement for USD 1.1 billion.

Published on: May 24, 2026

LIC emerges as highest profit-making financial company in March quarter

Life Insurance Corporation of India has achieved the highest profit in the Indian financial sector for the March quarter. The company reported a significant jump in net profit. State Bank of India and HDFC Bank followed with substantial profits. LIC's assets under management and premium income also saw growth. Vodafone Idea recorded a record quarterly profit due to statutory relief.

Published on: May 24, 2026

HDFC Bank backs Hyderabad luxury housing project with Rs 300 crore

HDFC Bank has provided Rs 300 crore in funding for a Rs 2,000 crore ultra-luxury residential project in Hyderabad's Kokapet. This investment highlights a trend of developers seeking structured financing amid moderating sales and strong demand for premium homes, with Hyderabad leading southern India's luxury market.

Published on: May 23, 2026