Recent News
Banking/Finance-Industry-Economic Times
Banks are focusing on medium-term deposit mobilization to comply with new liquidity coverage ratio rules and improve asset-liability management. Non-callable deposits with two-to-five year maturities are preferred despite higher costs. Revised rules effective from April 1 mandate a higher run-off factor, prompting banks to invest more in liquid securities.
Published on: February 4, 2025
Ashu Khullar, Citi’s India chief, is appointed as the global co-head of GAM, based in London, and will oversee EMEA and Asia. K Balasubramanian will succeed him as India's CEO, pending RBI approval. During Khullar's tenure, Citi's revenue grew significantly, reflecting his effective leadership.
Published on: February 4, 2025
The proposed Grameen Credit Score will enable banks to extend more loans to rural women, known for prompt repayments, by incorporating utility bill payments, UPI transactions, and enrolment in government schemes. This new credit scoring system will help women access credit at better interest rates, supporting the expansion of self-help groups and rural entrepreneurship.
Published on: February 4, 2025
Life Insurance Corporation of India (LIC) faces a demand notice for Rs 101.95 crore from tax authorities over short payments of GST for five financial years, from 2017-18 to 2021-22. LIC has received interest and penalty demands from various states and will appeal the order, clarifying no material impact on financials or operations.
Published on: February 4, 2025
Bandhan Bank is putting more emphasis on monitoring asset quality, reinforcing credit administration, fostering innovation, and enhancing digital services. The bank has established four key management teams for these areas. This strategic move aims to improve operational efficiency and address challenges in the microfinance sector. The focus on asset quality is particularly crucial given recent financial results.
Published on: February 4, 2025
Moody's Ratings highlights the potential boost in the Indian insurance sector from an increase in foreign investment limit to 100% and personal tax cuts proposed in Budget 2025-26. This regulatory change is set to attract global players, spark product innovation, and increase disposable incomes, benefitting health insurance and overall industry growth.
Published on: February 4, 2025
The Delhi High Court has allowed the Burman family's open offer for acquiring a stake in Religare Enterprises Ltd to proceed, despite appeals for a stay. However, the offer is contingent on the final ruling of ongoing proceedings. The court also urged SEBI to expedite its decision on a competing proposal from businessman Danny Gaekwad.
Published on: February 4, 2025
Ujjivan Small Finance Bank has applied for a universal banking license, positioning itself to transition from a small finance bank. Complying with RBI guidelines, this move aims to enhance the bank's offerings and regulatory freedom, supported by its profitable status and diversified portfolio.
Published on: February 4, 2025
Bajaj Finserv is negotiating with Allianz SE to assume full control of their life and general insurance ventures. Chairman Sanjiv Bajaj emphasizes the need for a single decision-maker and views the move as beneficial. The budget's tax concessions are expected to boost consumption and savings, aiding the financial sector's growth. Bajaj also supports credit card licenses for high-quality shadow lenders.
Published on: February 4, 2025
The Reserve Bank of India (RBI) has approved Tata Communications' plan to sell Tata Communications Payment Solutions (TCPSL) to Transaction Solutions International (TSI), for Rs 330 crore. Findi aims to expand the financial services sector, particularly in underbanked areas, through this acquisition.
Published on: February 4, 2025
India is considering accepting Russia's Mir payment system for electronic fund transfers, potentially easing transactions for Russians visiting India. Discussions also focus on mutual trade in national currencies and the interoperability of financial messaging systems. Energy security and business opportunities in various sectors are key areas of India-Russia collaboration amid Western sanctions.
Published on: February 4, 2025
The Reserve Bank of India's recent notification aimed at promoting the use of the Indian rupee for international transactions has raised questions about the ability of Russian banks to invest in Indian stocks using funds from special Vostro accounts. Legal experts believe such transactions may be possible, but custodians await RBI's clarification.
Published on: February 3, 2025
Finance Minister Nirmala Sitharaman will address the RBI central board on February 8 to discuss key points of the Budget FY26, which includes significant income tax relief aimed at boosting demand. The meeting follows the RBI's expected announcement of a rate cut to stimulate GDP growth.
Published on: February 3, 2025
The finance ministry plans to present a draft bill to raise the foreign direct investment limit in the insurance sector to 100% from 74%, along with a unified license for insurers.
Published on: February 3, 2025
Bill Winters, CEO of Standard Chartered Plc, will visit India to enhance the bank's presence and launch a global wealth campaign. He is set to meet key clients and business heads in Mumbai and New Delhi to strengthen wealth management and cross-border strategies. Standard Chartered was the leading arranger for Indian issuers' dollar bonds last year.
Published on: February 3, 2025
Gold loans by commercial banks surged by 68% in the first nine months of FY25 due to rising gold prices. Non-bank lenders also saw a rise in gold loan sanctions. The increase in gold prices has allowed lenders to offer higher loan amounts due to higher collateral value, enhancing lender comfort despite regulatory scrutiny on gold loan portfolios.
Published on: February 3, 2025
The National Financial Reporting Authority has fined auditor Neeraj Bansal Rs 5 lakh and barred him for five years due to lapses in auditing Religare Finvest Ltd for 2017-18. Violations include failure to report fraud, assess risks, verify future taxable income, question investments, and obtain sufficient audit evidence. NFRA's actions follow their investigation and show cause notice in May 2024.
Published on: February 3, 2025
The RBI's strict capital and investment norms might hinder the National Bank for Financing Infrastructure & Development from establishing a partial credit enhancement facility for infrastructure corporate bonds. Despite potential benefits in credit rating, the higher costs and demanded investor premiums make these instruments less viable compared to bank loans.
Published on: February 2, 2025
Sajjan Jindal family plans to dilute 14% of its promoter stake in JSW Infrastructure to fund a ₹39,000-crore capex over the next five years. The company, listed in September 2023, aims to maintain a 70:30 debt-to-equity ratio and utilize internal cash accruals. JSW Infra will look at acquisitions and aims for increased revenue growth and Ebitda margins.
Published on: February 2, 2025
Microfinance leaders anticipate the implementation of a new Grameen credit score framework to restore lending discipline following a decline in repayment culture. The proposed framework by Sitharaman aims to enhance creditworthiness among self-help groups and rural borrowers, potentially benefiting the entire sector and addressing issues of credit discipline.
Published on: February 2, 2025
The Centre has increased the FDI limit in insurance to 100%, from 74%, attracting more capital and boosting the sector’s financial strength. Insurers must invest policyholder premiums within India, aiming for 'Insurance for All' by 2047. The move seeks to improve insurance penetration and bring global best practices to India.
Published on: February 1, 2025
The budget aims to simplify determining arm's length pricing in related-party transactions and extend safe harbour rules, offering certainty and reducing disputes in transfer pricing. Experts believe these measures will decrease compliance burdens and administrative loads, although it remains to be seen if tax scrutiny will become more focused.
Published on: February 1, 2025
The bold budget focuses on enhancing growth through agriculture, MSMEs, investments, and exports. It emphasizes fiscal responsibility, infrastructure development, and inclusive policies to boost productivity and employment. Reforms in tax brackets, regulatory support, and financial sector liberalization aim to strengthen India's global competitiveness and economic stability.
Published on: February 1, 2025
India has increased foreign direct investment in insurance to 100%, aiming to attract more capital to the industry. Finance Minister Nirmala Sitharaman says the move will help reach 'Insurance for All' by 2047. However, insurers must invest all policyholder premiums within India. This decision follows a previous cap increase to 74% in 2021.
Published on: February 1, 2025
India Post will be revamped into a major public logistics entity, enhancing its role in the rural economy with its vast network. The government plans to establish a new urea plant in Assam and will increase credit access for MSMEs to bolster exports, while supporting the National Cooperative Development Corporation's lending operations.
Published on: February 1, 2025
The government has increased the FDI limit for the insurance sector from 74% to 100% in the Budget for 2025-26. This move aims to attract more foreign investment and improve domestic financial services. The Insurance Amendment Bill, intended to enable global players to independently enter the market, was supposed to be tabled during the winter session of Parliament.
Published on: February 1, 2025
Punjab National Bank aims to recover 170 billion rupees in bad loans this financial year, focusing on large corporate accounts. In the December quarter, the net profit more than doubled due to improved asset quality. The bank raised its loan growth target to 13%-14%, leveraging its extensive branch network across India.
Published on: February 1, 2025
In December 2024, lending rates of commercial banks eased while deposit rates saw a marginal rise according to RBI data. The weighted average lending rate on fresh rupee loans fell to 9.25%, while the average domestic term deposit rate on fresh deposits increased to 6.57%.
Published on: January 31, 2025
Bank lending in December witnessed a general slowdown across various sectors including industry, services, retail, and agriculture. However, loans against gold jewellery surged by 71% year-on-year due to rising gold prices, doubling in absolute terms over two years to Rs 1.72 lakh crore.
Published on: January 31, 2025
The Reserve Bank of India (RBI) imposed penalties on Equitas Small Finance Bank and India Post Payments Bank for regulatory compliance deficiencies. Equitas was fined Rs 65 lakh for non-compliance with foreclosure and agricultural loan norms, while India Post Payments Bank was penalized Rs 26.70 lakh for lapses in customer service.
Published on: January 31, 2025
Regulators face a delicate balancing act between financial resilience and efficiency, managing trade-offs to prevent smaller households and businesses from being excluded from credit. Building resilience involves higher capital buffers and stricter regulations, but new technological innovations like unified ledgers and digital infrastructure can help advance financial efficiency without compromising resilience in emerging markets like India.
Published on: January 31, 2025
SBI Chairman C S Setty highlights the transformative potential of integrating Artificial Intelligence and Gen AI in the banking sector. He emphasizes the need for enhanced risk management and protection against cyber threats as digital products become ubiquitous, particularly affecting vulnerable segments of society.
Published on: January 31, 2025
Gold loan NBFCs seek priority sector status and inclusion in UPI-based credit systems in the upcoming Union Budget to drive financial inclusion and better serve small borrowers. They also call for fiscal incentives to enhance digital lending infrastructure and access to low-cost funds from government agencies.
Published on: January 31, 2025
The Economic Survey 2024 highlights the potential and risks of integrating AI into the banking system, noting issues such as the black-box nature of AI, accountability, and cybersecurity threats. It stresses the need for robust regulations and oversight to ensure the ethical use of AI in banking.
Published on: January 31, 2025
Bank of Baroda aims to double its balance sheet in five years and increase its loan market share while controlling costs, according to CEO Debadatta Chand. The lender plans to open 500 new branches within two years to boost deposit growth and disburse loans. The bank is also focusing on secured retail loans, particularly mortgages and auto loans.
Published on: January 31, 2025
Banks in India have significantly improved their financial health over the past decade, with asset quality in a comfortable position and gross non-performing assets at a 12-year low of 2.6% in September 2024. Profitability surged, and net NPAs declined to 0.6%, contributing to a stronger balance sheet despite a slight contraction in net interest margin.
Published on: January 31, 2025
The Insurance Regulatory and Development Authority of India (Irdai) has mandated that insurers cannot increase health insurance premiums for senior citizens by more than 10% annually. This directive aims to address the steep premium hikes observed in certain health insurance products for those aged 60 and above.
Published on: January 30, 2025
Banks with exposure to state-owned Rashtriya Ispat Nigam Ltd (RINL) received relief as the steelmaker cleared its overdue loans in January, turning the account from SMA-2 to regular. This allows banks to reverse provisions, enhancing fourth-quarter profits, though some plan to maintain provisions to boost their provision coverage ratio for financial stability.
Published on: January 30, 2025
The Delhi High Court has refused to stay the Burman family’s open offer to acquire an additional 26% stake in Religare Enterprises. The court also rejected a minority investor's plea to halt REL's AGM on February 7. The investor sought a fair assessment of a higher competing offer.
Published on: January 30, 2025
Banks in India have found that many foreign nationals, including US citizens, have opened accounts using incorrect tax identification numbers (TINs). The tax office has alerted banks to these anomalies. To avoid non-compliance, Indian banks want regulations requiring foreign nationals to provide authentic documents verifying their TINs, as per FATCA and CRS standards.
Published on: January 30, 2025
The Reserve Bank of India has initiated a corporate insolvency resolution process against Aviom India Housing Finance due to governance issues and payment defaults. A three-member advisory committee and an administrator have been appointed to manage the New Delhi-based firm during this process.
Published on: January 30, 2025
India Post Payments Bank (IPPB) and PNB MetLife India Insurance Company Limited have partnered to offer life insurance solutions to millions across India. This collaboration aims to promote financial inclusion by providing life insurance products through IPPB's extensive network and reaching underserved populations, ensuring better financial security for customers.
Published on: January 30, 2025
The RBI has developed 'supervisory discomfort' with some small finance banks due to high concentration risks and rising asset quality stress. These banks have been advised to explore mergers to mitigate these concerns. Small finance banks with significant exposure to the microfinance sector and certain geographic areas are particularly affected.
Published on: January 30, 2025
The Delhi High Court issued a notice to Religare Enterprises on a petition by executive director Rashmi Saluja, seeking to stay a resolution related to her removal at the upcoming AGM. Saluja argues the resolution breaches legal provisions and Reserve Bank of India's directions. The matter is posted for interim relief consideration on Tuesday.
Published on: January 29, 2025
Indian banks are experiencing margin pressure due to slowed loan growth and high interest rates. Loan growth for major banks is projected to decline to 12.3% in FY 2025, down from 22.5% previously. Despite slower profit growth, banks are focusing on retail deposits and managing bad loans, with the GNPA ratio falling to 2.6%.
Published on: January 29, 2025
Apax Partners LLP appointed Harjot Dhaliwal as the new India head after Anurag Sud's departure. This aligns with the firm's strategy shift in India, focusing more on technology and internet consumer investments while exiting the healthcare sector. The announcement follows significant transactions including the sale of Healthium Medtech to KKR.
Published on: January 29, 2025
Credit card usage in India has surged, with active cards doubling to 108 million and transaction value tripling to ₹20.37 lakh crore in five years. Debit card growth was modest as digital payment methods gained traction. Public sector banks' market share in debit cards fell while credit card debt rose 19%, highlighting a shift in consumer credit preferences.
Published on: January 29, 2025
Union Bank of India is selling 41 bad-loan accounts, including those of Nirmal Lifestyle, Future Brands, Sahara Hospitality, and Panduranga Energy Systems, totaling ₹1,561 crore. Interested parties can bid by February 11, with auctions on February 12 and a second round on February 20.
Published on: January 28, 2025
Banks have requested the government for an extension of the deadline for implementing Sebi's Cybersecurity and Cyber Resilience Framework to June, citing a need for more time to comply. Currently, the deadline has been extended to April 2025, but lenders argue that additional time is necessary for proper implementation.
Published on: January 28, 2025
The Karnataka government plans to introduce an ordinance to regulate microfinance recovery practices due to concerns over coercive loan recovery methods. This move has caused anxiety among lenders in the state, potentially affecting regular recovery processes and asset quality.
Published on: January 28, 2025
