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Banking/Finance-Industry-Economic Times
India’s growing economy, young workforce, and expanding export base make it a key market for Mizuho Financial Group, according to CEO Masahiro Kihara. The Japanese banking major sees India as a long-term strategic partner and is considering additional investments beyond the $500 million capital already deployed.
Published on: June 12, 2025
"Deposit rates are going down in line with the monetary policy announcement, where the RBI (Reserve Bank of India) cut repo cuts by 50 basis points," said Anup Bhaiya, managing director and CEO, Money Honey Financial Services.
Published on: June 12, 2025
The FSIB, which recommends names for top roles at public sector insurance companies and banks, on Wednesday named Doraiswamy Ramchandran for the position of chief executive and managing director at Life Insurance Corporation of India. He is currently LIC's MD.
Published on: June 12, 2025
Bank of Maharashtra has reduced its retail loan interest rates by up to 50 basis points, effective June 10, with home loans starting at 7.35% and car loans at 7.7%. This move follows the RBI's recent rate moderation. Bank of Baroda also cut its MCLR by 5 basis points across various tenors.
Published on: June 12, 2025
Paytm shares declined following the Finance Ministry's denial of Merchant Discount Rate (MDR) on UPI transactions. This sparked investor concern about Paytm's profitability. Banks and fintech firms want MDR to cover UPI infrastructure costs. The Payments Council of India proposed a 0.3% MDR for large merchants. The Finance Ministry affirmed its commitment to promoting UPI without MDR.
Published on: June 12, 2025
PayNearby, a branchless banking and digital network, announced plans to onboard 5 lakh retailers in the next two years, expanding its national reach. Aiming to become a top UPI player, the fintech firm will also hire 300-400 new employees by March 2026.
Published on: June 12, 2025
Doraiswamy Ramchandran, currently Managing Director at LIC, is recommended by the FSIB for the CEO & MD position. He was selected after interviews with four LIC candidates on June 11, 2025. With 38 years of experience, Doraiswamy has contributed significantly to LIC's technological advancements.
Published on: June 12, 2025
Shantanu Mitra, the CEO and managing director of SMFG India Credit, is set to resign at the end of this month, as informed to the board. This decision closely follows Sumitomo Mitsui Financial Group's agreement to acquire a 20% stake in Yes Bank. The SMFG board is currently searching for Mitra's successor.
Published on: June 11, 2025
The Enforcement Directorate has summoned senior counsel Arvind Datar regarding his advice to Care Health Insurance on ESOPs issued to Rashmi Saluja. The investigation revolves around whether the ESOP issuance violated regulations, leading to scrutiny of legal opinions provided. Former Irdai chairman Hari Narayan may also be questioned in connection with the matter.
Published on: June 11, 2025
Banks are tightening the rules for corporate credit cards following regulatory concerns. Users must now declare that these cards will only be used for business expenses, preventing them from circumventing personal spending limits. This move addresses the misuse of corporate cards for personal purchases, potentially leading to deactivation for violations and increased scrutiny from both banks and companies.
Published on: June 11, 2025
Banks are urging the RBI to retain the existing co-lending model (CLM-2) alongside the proposed CLM-1, where loans are jointly originated and disbursed with NBFCs. Currently, CLM-2 allows NBFCs to originate loans and later assign a portion to banks, offering liquidity and speed.
Published on: June 11, 2025
Lilavati Kirtilal Mehta Medical Trust has accused HDFC Bank and its CEO Sashidhar Jagdishan of loan inconsistencies. The Trust alleges discrepancies in loan amounts and bribery. HDFC Bank denies all allegations. The bank calls the claims malicious and false. HDFC Bank threatens legal action against those making the allegations. The bank urges the public to be critical of the claims.
Published on: June 11, 2025
Union Bank of India and Indian Overseas Bank have reduced lending rates by 50 basis points, aligning with the RBI's recent rate moderation. This revision includes a decrease in the External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR), benefiting both new and existing retail and MSME borrowers. IOB's RLLR will decrease from 8.85% to 8.35%.
Published on: June 11, 2025
State Bank of India (SBI) has onboarded 13,455 junior associates to improve customer service across its branches nationwide. This recruitment drive, aimed at filling vacancies in 35 states and Union Territories, involved preliminary exams in February and March 2025, followed by main exams in April 2025.
Published on: June 11, 2025
Marelli Holdings, grappling with $4.4-4.5 billion in debt, has filed for Chapter 11 bankruptcy in the US, offering a respite from financial pressures. Strategic Value Partners is poised to acquire the company with a $1.1 billion financing package, while KKR writes off its investment.
Published on: June 11, 2025
The Financial Services Institutions Bureau has recommended R Doraiswamy as the new CEO and MD of Life Insurance Corporation of India (LIC), succeeding interim CEO Sat Pal Bhanoo. Doraiswamy, currently an MD at LIC since September 2023, brings over three decades of experience in operations, marketing, technology, and academics to the role.
Published on: June 11, 2025
India's central bank is considering more frequent use of the cash reserve ratio (CRR) to manage liquidity and accelerate monetary policy transmission. This shift marks a departure from using CRR only during extreme cash fluctuations. Recently, the RBI unexpectedly reduced the CRR by 100 basis points to 3%, injecting 2.5 trillion rupees into the banking system.
Published on: June 11, 2025
SBI General Insurance has a new Deputy CEO. Mohd. Arif Khan takes the position. He has worked with SBI since 2000. Khan brings 25 years of banking experience. He was previously a General Manager at SBI Thiruvananthapuram. Naveen Chandra Jha, MD and CEO, welcomes Khan. Jha believes Khan's experience will help the company grow.
Published on: June 11, 2025
Mizuho Financial Group is nearing a deal to acquire a majority stake in Avendus Capital, potentially valuing the Indian investment bank at $800 million. This move follows a trend of Japanese banks expanding into India, exemplified by Sumitomo Mitsui's recent investment in Yes Bank. Mizuho aims to leverage Avendus' expertise to strengthen its dealmaking presence in the burgeoning Indian market.
Published on: June 11, 2025
Bigger peers waiting in line include AU SFB and Ujjivan SFB. A universal banking licence will give SFBs greater operational fl exibility and help them tap diverse markets, while enhancing the growth potential.
Published on: June 10, 2025
Madan, with 25 years in banking and financial services, has held leadership roles at Citibank, AU Small Finance Bank, and IDFC First Bank. He joined Axis Max Life Insurance in February 2024 and has since contributed to improving the company's overall business rankings, according to an official statement.
Published on: June 10, 2025
NBFCs play a crucial role in financial inclusion, as they extend credit to people, communities and small businesses that are often underserved by traditional banks. The RBI's engagement signals a growing concern within the central bank over the lag in rate transmission by these institutions, even as banks have shown relatively better, albeit still partial, alignment with monetary policy moves.
Published on: June 10, 2025
The non-life insurance sector experienced a 6.5% increase in gross direct premiums in May, reaching Rs22,257 crore, although growth slowed compared to the previous year. Standalone health insurers outperformed general insurers, while the implementation of the 1/n rule impacted premium reporting. New India Assurance saw significant gains, contrasting with declines in some other major players.
Published on: June 10, 2025
Indian Overseas Bank introduced 'Locate IOB' for customers. This helps to find nearby branches and ATMs easily. Customers can access this tool on the IOB portal or website. It provides addresses, directions, and IFSC codes. Users can also call branches directly from the website. This initiative aims to improve customer support with easy access to information.
Published on: June 10, 2025
India's digital payment revolution, particularly the Unified Payment Interface (UPI), has garnered global recognition, processing ₹24.77 lakh crore in transactions in March 2025. With widespread adoption by individuals and merchants, digital payments are prevalent even for micropayments. Direct Benefit Transfer (DBT) initiatives have enhanced transparency, eliminated ghost beneficiaries, and saved the government over ₹3.48 lakh crore.
Published on: June 10, 2025
The Reserve Bank of India's interest rate cut is poised to significantly benefit non-banking finance companies by expanding their margins due to reduced funding costs. Easing of norms on unsecured loans and lower risk weights will facilitate increased bank lending to NBFCs, boosting their lending activities. Investors have responded positively, driving up NBFC stock prices.
Published on: June 10, 2025
ICICI Bank's price-to-book (P/B) ratio is currently around 3.5. In contrast, State Bank of India P/B is around 1.5, reflecting differing market perceptions of the two banks' growth prospects, profitability, and risk profiles.
Published on: June 9, 2025
The Reserve Bank of India will discontinue daily variable rate repo auctions from June 11 due to surplus liquidity in the banking system, which has averaged ₹2.75 lakh crore in June. This decision aligns with the RBI's target of maintaining surplus liquidity near 1% of net demand and time liabilities.
Published on: June 9, 2025
Jana Small Finance Bank has applied to the Reserve Bank of India for approval to transition into a universal bank, marking a key step in its growth. Jana SFB has built a strong retail and MSME franchise with a national presence and digital services. The bank is well-positioned for this evolution due to its deposit base and asset quality.
Published on: June 9, 2025
In May 2025, India’s life insurance industry saw a 13% rise in new business premiums (NBP) to Rs 30,463 crore, despite a 10.4% drop in policies sold, due to new surrender value rules. Private insurers led growth with a 16.6% increase in NBP. LIC’s premiums rose 10.3%. Higher-value policies and group business boosted premiums, while individual regular premiums declined.
Published on: June 9, 2025
Reserve Bank of India will stop daily Variable Rate Repo auctions. The discontinuation is effective from June 11, 2025. This decision follows a review of liquidity conditions. Earlier, daily VRR auctions were announced on January 15, 2025. The final VRR auction will occur on June 10, 2025. The notified amount for this auction is ₹25,000 crore.
Published on: June 9, 2025
Reserve Bank of India Deputy Governor, M. Rajeshwar Rao, addressed concerns about the microfinance sector. He highlighted issues such as high interest rates and coercive recovery practices. These contribute to borrower over-indebtedness. Rao urged lenders to reform and strengthen credit assessments. He also cautioned against excessive margins, even with access to low-cost funds.
Published on: June 9, 2025
Kotak Mahindra Bank has appointed Srishti Sethi as the new Group Chief Risk Officer, effective June 12, 2025, for a five-year term. This follows the retirement of current GCRO, Paul Parambi, on June 11, 2025. Sethi brings over three decades of experience from Hero Fincorp, IDFC First Bank, and GE Capital, with expertise in risk management and banking.
Published on: June 9, 2025
HDFC Bank's MD and CEO, Sashidhar Jagdishan, faces allegations of financial fraud after an FIR was filed by the Lilavati Kirtilal Mehta Medical Trust, claiming his involvement in misappropriating funds. The Trust seeks his suspension and regulatory action, while HDFC Bank vehemently denies the charges, asserting they are baseless and linked to a loan recovery attempt.
Published on: June 9, 2025
Mizuho Financial Group is set to acquire KKR-backed Avendus Capital for $700 mn, marking Mizuho's largest investment in India. The deal involves KKR's exit and will give Mizuho up to 70% ownership. Avendus founders, excluding Ranu Vohra, will remain invested and manage the company, continuing its operations across financial services in India, the US, and Singapore.
Published on: June 8, 2025
The government is considering banks' request to amend income tax law, aligning NPA definitions with RBI norms to exempt interest earned on NPAs. Banks also seek increased deduction for NPA provisions, potentially boosting their bottom lines. This move addresses discrepancies causing unjust tax liabilities on unrealized income, as current regulations tax notional interest on NPAs despite RBI non-recognition.
Published on: June 8, 2025
Following the Reserve Bank of India's repo rate cut, banks like Bank of Baroda and Punjab National Bank have lowered their repo-linked lending rates by 50 basis points, benefiting home loan borrowers and small businesses. Bank of Baroda's RLLR is now 8.15%, while PNB's is 8.35%.
Published on: June 8, 2025
With interest rates declining, banks face the challenge of attracting deposits. Experts suggest innovative products like fixed deposit-linked credit cards and sweep-in deposits are crucial. Younger savers are shifting to capital market products, while senior citizens favour government schemes. Banks are already adapting, but further rate cuts will necessitate more competitive offerings to retain depositors.
Published on: June 8, 2025
Reserve Bank of India's unexpected rate cut may boost bank earnings. Analysts predict net interest margins will recover faster than expected. The CRR reduction should soften the impact on margins. It will also improve liquidity. Experts believe this is more beneficial for banks than NBFCs. The rate cut may initially pressure margins.
Published on: June 8, 2025
Loan loss provisioning by banks, especially private sector banks, increased in March 2025 quarter due to higher slippages and asset quality pressure in microfinance loans. NPA provisioning rose sequentially and year-on-year, with 22 banks reporting an increase. Stress in the microfinance portfolio is expected to continue, potentially leading to further slippages in the coming quarters.
Published on: June 8, 2025
Jaiprakash Associates Ltd faces debt resolution. NARCL, the lead creditor, extends the bid submission deadline by 15 days. This decision follows requests from interested bidders. The company owes creditors ₹57,185 crore. Several companies including Adani Enterprises and Dalmia Bharat have shown interest. NARCL holds the majority of the debt. The resolution process continues under the Insolvency and Bankruptcy Code.
Published on: June 8, 2025
HDFC Bank's CEO, Sashidhar Jagdishan, faces allegations in a Mumbai Police FIR. The Lilavati Kirtilal Mehta Medical Trust alleges he received money to harass a trustee's father. HDFC Bank denies the charges, linking them to a loan recovery case involving Splendour Gems. The bank claims the Mehta family is attempting to derail recovery efforts.
Published on: June 8, 2025
Sat Pal Bhanoo has been entrusted with the additional charge of MD and CEO of LIC, effective from June 8, 2025, until September 7, 2025, or until a regular appointment is made. This decision follows the completion of Siddhartha Mohanty's term as CEO and MD on June 7, 2025. Bhanoo is the seniormost among the four LIC MDs.
Published on: June 8, 2025
HDFC Bank will pursue legal remedies against allegations by the Lilavati Kirtilal Mehta Medical Trust, which called for the suspension of CEO Sashidhar Jagdishan over alleged financial fraud. The bank strongly denies the claims, stating they are attempts to obstruct loan recovery from defaulters. HDFC asserts the Trust's actions are a malicious attempt to defame its CEO.
Published on: June 8, 2025
Under the revised regulations issued late evening, the RBI introduced differentiated loan-to-value (LTV) limits for consumption loans against gold collateral. Borrowers can now access loans up to Rs 2.5 lakh at an LTV of 85%, loans between Rs 2.5 lakh and Rs 5 lakh at 80%, and loans above Rs 5 lakh at 75%. For loans exceeding Rs 2.5 lakh, lenders will have to carry out detailed credit assessments, including evaluating the borrower's repayment capacity.
Published on: June 6, 2025
Bankers in Mumbai welcome the RBI's rate cut and reduced cash reserve ratio. They believe these actions will boost credit growth. SBI Chairman CS Setty calls the policy innovative and a surprise. PNB's Ashok Chandra sees it as forward-looking, supporting growth and stability.
Published on: June 6, 2025
Following a significant 50 basis points repo rate cut by the RBI, Punjab National Bank has reduced its lending rates by up to 50 basis points, effective June 9, 2025. This move aims to make EMIs more affordable for both existing and new borrowers, with home loan rates starting from 7.45% and vehicle loans from 7.8% per annum.
Published on: June 6, 2025
The Reserve Bank of India has reduced the minimum qualifying microfinance assets for NBFC-MFIs from 75% to 60%, allowing them to diversify their portfolios. This move aims to improve lenders' credit risk profiles and enable them to meet broader borrower needs. Experts believe this will enhance balance sheet stability and cross-cycle earnings.
Published on: June 6, 2025
The Reserve Bank of India (RBI) has declined the application of Annapurna Finance Private Limited to establish a universal bank. After assessing the application based on existing guidelines, the RBI deemed Annapurna Finance unsuitable for in-principle approval. The application was submitted under the 'on tap' licensing guidelines for universal banks.
Published on: June 6, 2025
The Reserve Bank of India's decision to ease appraisal norms for small gold loans is set to improve credit access, according to gold loan companies. A repo rate cut of 50 bps to 5.50% and a CRR reduction are expected to boost liquidity and lower credit costs.
Published on: June 6, 2025
