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Banking/Finance-Industry-Economic Times
Housing loan penetration in eastern and northeastern India remains significantly underdeveloped compared to other regions, with eastern states holding only 6.90% and northeastern states just 0.93% of the market. The government aims to address this disparity through the co-lending model to enhance housing credit access, particularly in Tier-2 and Tier-3 cities.
Published on: March 14, 2025
The United Forum of Bank Unions (UFBU) confirmed a two-day nationwide strike on March 24 and 25, following unsuccessful talks with the Indian Banks' Association (IBA) over key demands. These include recruitment, a five-day workweek, and job security. The UFBU opposes the Department of Financial Services' directives, asserting they threaten autonomy and employee security.
Published on: March 14, 2025
Yes Bank has launched a GST payment facility, enhancing its digital banking services. The facility allows businesses to meet tax obligations quickly and securely via the bank's internet banking platforms or branch network. Taxpayers can generate GST challans on the GST portal and complete payments through Yes Bank’s NetBanking or over-the-counter options, receiving real-time confirmations.
Published on: March 14, 2025
Digital lenders, NBFCs, and banks disbursed Rs 74,500 crore through the Account Aggregator framework in the first half of this fiscal year. The AA ecosystem facilitated 5.47 million loans, highlighting significant growth, particularly among salaried individuals, self-employed professionals, and small businesses.
Published on: March 14, 2025
ICAI may review the financial statements of IndusInd Bank following a discrepancy of Rs 2,100 crore in its derivatives portfolio. The Financial Reporting Review Board is expected to conduct the review to ensure compliance with various accounting and auditing standards. An external agency will finalize its report on the matter by early April.
Published on: March 13, 2025
The Reserve Bank of India has imposed penalties on JM Financial Products and Experian Credit Information Company of India for regulatory compliance deficiencies. JM Financial Products received a Rs 3.1 lakh penalty, while Experian Credit Information Company faced a Rs 2 lakh penalty for non-compliance with specific regulatory provisions.
Published on: March 13, 2025
Valueattics Reinsurance Ltd, backed by Kamesh Goyal and Fairfax, becomes the first private reinsurer to gain regulatory approval in India. This move is expected to enhance competition, improve pricing, and provide more flexible risk solutions in the reinsurance sector.
Published on: March 13, 2025
Patanjali Ayurved, led by Yoga Guru Ramdev, and the Dharampal Satyapal Group (DS Group) will acquire Magma General Insurance from Sanoti Properties LLP for Rs 4,500 crore, marking Patanjali's entry into the general insurance sector.
Published on: March 13, 2025
Generative AI is set to boost productivity in India's financial services by up to 38% by 2030, and up to 46% for banking operations, according to an EY report. With numerous firms already investing in AI technologies, customer service improvements and cost reductions are evident, shaping an advanced financial landscape driven by AI innovations.
Published on: March 13, 2025
The collection efficiency for unsecured asset classes like microfinance, personal loans, and unsecured SME loans has seen a decline in recent months due to economic slowdown and borrower overleveraging. In contrast, secured asset classes have maintained healthy performance. The recent RBI repo rate cut could ease cash flow burdens and support better collection efficiencies, especially for vehicle loan pools.
Published on: March 13, 2025
HDFC Life Insurance announced Thursday that a data security incident reported in November has been resolved. The company stated the incident did not cause significant damage.
Published on: March 13, 2025
Satin Creditcare Network has secured a significant social term loan of $100 million from Standard Chartered Bank and six Sri Lankan lenders under the RBI’s automatic route. This funding is expected to enhance access to financial services and promote development in India's underbanked regions while improving the company's asset and liability management.
Published on: March 13, 2025
State Bank of India is establishing a unit for project financing focused on new age industries like AI, e-commerce, and fintech. The initiative aims to diversify the bank's project finance efforts, targeting sectors benefitting from increased infrastructure spending under Prime Minister Modi's upgrades.
Published on: March 13, 2025
Prosus-backed BRISKPE has received the RBI's in-principle authorisation to operate as a payment aggregator for cross-border transactions. This enables BRISKPE to enhance the efficiency of international payments for exports and imports, expecting a significant rise in transaction volume by the next financial year.
Published on: March 12, 2025
The NCLT has granted an additional eight days to complete procedural issues for the ownership transfer of Reliance Capital to IndusInd International Holdings Ltd. The deadline for the resolution plan implementation is now March 20, with a further hearing scheduled for March 25, 2025.
Published on: March 12, 2025
India's central bank is scrutinizing derivatives exposures of banks following IndusInd Bank's disclosure of accounting lapses. The Reserve Bank of India seeks details on overseas borrowings, deposits, and forex hedge positions to ensure no systemic issues. Potential external audits may occur if discrepancies arise, aiming to maintain financial stability. IndusInd's situation highlights early deal termination accounting flaws.
Published on: March 12, 2025
Moody’s maintains a stable outlook for the Indian banking sector but anticipates some asset quality deterioration in unsecured retail, microfinance, and small business loans. Bank growth is predicted to slow to 11%-13% by FY26. Non-performing loans are expected to rise moderately to 2%-3%, and profitability will weaken slightly yet remain adequate.
Published on: March 12, 2025
IndusInd Bank discovered discrepancies in account balances related to currency derivatives. This prompted an internal review and raised concerns about other banks having similar issues. The RBI is investigating. Despite improvements in asset quality and profitability, concerns remain over unsecured retail loans, slow deposit growth, and rising micro-lending stress.
Published on: March 12, 2025
IndusInd International Holdings Ltd. is nearing the completion of its acquisition of Reliance Capital for 98.6 billion rupees, with an official announcement expected soon. This deal was approved by the bankruptcy tribunal last year after the Reserve Bank of India took control of Reliance Capital in November 2021 due to payment failures and governance issues.
Published on: March 12, 2025
The RBI has requested IndusInd Bank to propose two external candidates for CEO and COO roles following a one-year extension for Sumant Kathpalia's tenure, now ending in March 2026. Kathpalia acknowledged RBI's reservations about his leadership. Additionally, the bank is examining its derivative portfolio discrepancies, potentially affecting its net worth by 2.35%.
Published on: March 12, 2025
The RBI is examining whether unhedged forex liabilities are an issue specific to IndusInd Bank or a broader banking problem. IndusInd Bank disclosed discrepancies in its derivative portfolio, possibly resulting in significant financial losses. Banks have been instructed to provide detailed hedging information and ensure compliance with guidelines.
Published on: March 12, 2025
Several hospitals in Ahmedabad will halt cashless treatment services for Star Health and Tata AIG General Insurance from April 1. This decision follows ongoing disputes over claim denials, unjustified deductions, and non-renewal of tariffs. The local healthcare industry accuses insurers of unfair practices, while insurers seek standardisation in healthcare costs.
Published on: March 11, 2025
The revenue growth of the top 100 large and liquid companies listed on the Bombay Stock Exchange (BSE) slowed significantly in 2024 compared to the previous year. While revenues grew by 9%, net profits surged by 32%, five times more than the 7% profit increase in 2023, reflecting successful cost-control measures.
Published on: March 11, 2025
SBI customers experienced trouble accessing UPI and mobile banking services for over four hours on Tuesday due to technical issues, which were resolved by 5 PM. The bank, which caters to 50 crore customers, apologized for the inconvenience. The exact cause was not disclosed, but regulatory pressures emphasize seamless service and quick issue resolution.
Published on: March 11, 2025
Fitch Ratings has affirmed the ratings of Union Bank of India and Punjab National Bank at 'BBB-' with a stable outlook, driven by government support, an improved risk profile, and enhanced asset quality. The banks' viability rating is upgraded to 'bb-' due to ongoing improvements in financial performance.
Published on: March 11, 2025
IndusInd Bank is in healthy condition despite a recent market cap decline, says Chairman Ashok Hinduja. He assures promoter support, highlights strong capital adequacy, and confirms readiness for additional capital injection if needed. Hinduja praises the current management and addresses concerns about pledged shares and regulatory delays.
Published on: March 11, 2025
The Modi government has announced significant tax cuts in its new budget, focusing on the middle class. Finance Minister Nirmala Sitharaman highlighted that income up to Rs 12 lakh will be tax-exempt. While these reforms benefit taxpayers, they could affect the life insurance sector as tax-saving becomes a less critical motive for investment.
Published on: March 11, 2025
Indian NBFCs are expected to modify their funding strategies due to RBI's relaxed lending norms. By reducing risk weight requirements on consumer microfinance loans, banks can now lend more to NBFCs. This will decrease reliance on short-term commercial papers. High-rated NBFCs may initially benefit, with others following suit as banks adjust lending strategies.
Published on: March 11, 2025
IndusInd shares plunged 20% after reporting accounting discrepancies in its derivatives portfolio. The drop triggered investor concerns about the bank’s internal controls and resulted in a potential impact of Rs 1,600-2,000 crore on its net worth. With its stock losing 42% over the past year, analysts warn of further de-rating despite stable long-term fundamentals.
Published on: March 11, 2025
StandardChartered is shifting focus from lending to wealth management in India, aiming to attract $200 billion in net new money over five years and achieve a double-digit growth rate in wealth solutions. The bank targets affluent clients and plans to enhance priority banking centers in key branches.
Published on: March 11, 2025
Indian banks are currently extending more loans than they are gathering deposits, with the incremental loan-to-deposit ratio reaching nearly 126%. This indicates a reliance on borrowed funds, as system-wide LDR hits its peak, leading to intensified competition for deposits particularly in low-cost CASA.
Published on: March 10, 2025
Indian insurance firms are requesting the government to require two out of three key management personnel at insurers to be resident Indians when 100% foreign investment is allowed. They also suggest higher solvency requirements before foreign investors repatriate dividends. The finance ministry is reviewing these suggestions as part of the proposal to increase the FDI limit in the insurance sector.
Published on: March 10, 2025
Microfinance credit stress is emerging this financial year due to RBI's preventive measures to manage risks, according to Finance Minister Pankaj Chaudhary. RBI has advised banks and NBFCs to improve underwriting and collection efforts.
Published on: March 10, 2025
Indian banks are facing challenges in deposit mobilization, leading to a higher Loan-to-Deposit Ratio of nearly 126% as of February 2025. Despite lender programs, deposit growth remains sluggish, forcing banks to rely on alternative funding sources and intensifying competition for bulk deposits.
Published on: March 10, 2025
IndusInd Bank anticipates a Rs 1,577 crore reduction in net worth due to derivatives discrepancies. The bank has enlisted an external auditor for review. CEO Sumant Kathpalia’s one-year extension by RBI raises concerns. Despite potential one-time impacts, the bank asserts strong profitability and capital adequacy. Leadership transition uncertainty persists.
Published on: March 10, 2025
IndusInd Bank expects a 2.35% decline in its net worth by December 2024 due to discrepancies found during an internal review. The bank has hired an external agency to independently validate the findings. Despite this, the bank assured that its profitability and capital adequacy remain strong enough to absorb the "one-time impact."
Published on: March 10, 2025
The National Company Law Tribunal (NCLT) has directed that resolution plans to acquire Jaiprakash Associates should be invited for the entire company as a going concern, not in divided business verticals. NCLT ordered the resolution professional to continue with inviting expressions of interest (EOI) for the whole company initially, and only consider splitting if no bids are received.
Published on: March 10, 2025
Concerns have arisen over the RBI's decision to extend IndusInd Bank CEO Sumant Kathpalia's tenure by just one year. This move raises governance and asset quality worries, potentially negatively impacting the bank's stock. Analysts note uncertainty and possible outcomes, including Kathpalia's early retirement or the appointment of a public sector CEO.
Published on: March 10, 2025
The collapse of ATM service provider AGS Transact is causing widespread disruptions, affecting major banks like SBI, ICICI Bank, and Axis Bank. SBI is the most impacted with 14,000 unserviceable ATMs, while ICICI Bank and Axis Bank are migrating their ATMs to other service providers to mitigate the issues.
Published on: March 9, 2025
IIFL Finance has launched seven new gold-loan branches run by female employees across NCR and MMR in celebration of International Women's Day. These 'Shakti' branches emphasize women's empowerment, offering special benefits and financial literacy programs for female entrepreneurs. Each branch provides employment opportunities for up to forty women.
Published on: March 9, 2025
Religare Enterprises has withdrawn its appeal against the CCI order allowing Burman group entities to acquire a stake in the firm. This follows the Burman Family gaining a controlling stake in Religare Enterprises Limited. The NCLAT dismissed the appeal, and the Burman Family’s total holding now exceeds 50 percent, solidifying their position as the largest shareholders.
Published on: March 9, 2025
Finance Minister Nirmala Sitharaman emphasized the need for the banking sector to innovate and lead amidst a changing global landscape. She expressed confidence that SBI will embrace technology, sustainability, and inclusivity. Speaking at SBI's Platinum Jubilee celebrations, she highlighted SBI's evolution and its position as a market leader, catering to a large customer base and driving sustainable growth.
Published on: March 8, 2025
Corporate India is projected to raise Rs 115-125 lakh crore in debt between FY26 and FY30 to fund capital expenditure, working capital, and NBFC financing. Around Rs 45-50 lakh crore will be needed for capital expenditure, with the infrastructure sector driving most of the investments.
Published on: March 8, 2025
The Reserve Bank of India has approved a one-year extension for Sumant Kathpalia as CEO of IndusInd Bank, extending his term until March 23, 2026. Kathpalia, who has over 37 years of experience in the banking sector, has overseen significant growth despite challenges in the microfinance portfolio.
Published on: March 7, 2025
The Reserve Bank of India's recent auctions to inject funds into the banking system saw lukewarm interest due to improving liquidity conditions. Despite a persisting liquidity deficit, it has narrowed significantly in March. Market participants remain optimistic about further RBI measures to manage advance tax and GST outflows.
Published on: March 7, 2025
SBI has launched 'Asmita', a collateral-free low-interest loan program for women entrepreneurs, aiming to boost business borrowings by women. The initiative provides faster finance to women-led MSMEs through a digital process. Additionally, the 'Nari Shakti' platinum debit card was introduced, and Bank of Baroda initiated special savings accounts for Indian diaspora women.
Published on: March 7, 2025
The Reserve Bank of India imposed penalties totaling Rs 76.6 lakh on four non-banking financial companies for non-compliance with its peer-to-peer lending platform regulations. Fairassets Technologies India, Bridge Fintech Solutions, Rang De P2P Financial Services, and Visionary Financepeer were each penalized based on regulatory deficiencies.
Published on: March 7, 2025
According to the BharatLoan Lending Report 2025, there has been a significant increase in financial independence and credit market participation among India's salaried women. Female borrowers aged 25-35 constitute 50% of this group, with steady annual growth observed. Maharashtra and Karnataka dominate loan disbursements, highlighting regional variations and opportunities for increased lending awareness in North and East India.
Published on: March 7, 2025
Nippon Life Insurance Co.'s India unit may buy a minority stake in IndusInd Bank Ltd. to use the bank's network for selling its insurance products. They could initially buy a 4.9% stake and potentially increase it to 9.9%. The market value of IndusInd Bank is about 730 billion rupees.
Published on: March 7, 2025
India's banking sector liquidity is expected to shift to a strong surplus by March 2025 due to the Reserve Bank of India's Rs 1.9 lakh crore liquidity measures. Short-term challenges like GST outflows may tighten conditions temporarily, but overall improvement is anticipated by the financial year's end.
Published on: March 7, 2025
