Recent News
Banking/Finance-Industry-Economic Times
Large private sector banks in India are blocking Indian promoters' plans to establish investment companies abroad due to concerns of sidestepping foreign currency regulations. Offshore entities can move significantly higher amounts compared to the liberalised remittance scheme, raising concerns of misuse for personal use.
Published on: March 23, 2025
This is primarily because of two reasons. First, banks are increasingly sourcing funds from global markets at cheaper rates. Second, demand for foreign currency loans from companies remains static. So, there is not much upward movement in foreign currency non-resident-bank (FCNR-B) deposit rates, although the central bank had raised the deposit rate ceiling at the last monetary policy announcement on December 6 by previous governor Shaktikanta Das.
Published on: March 23, 2025
IndusInd Bank hired Grant Thornton Bharat to conduct a forensic check on its derivatives operations after disclosing a potential ₹1,600 crore marked-to-market loss due to internal trades. The Reserve Bank of India directed the bank to appoint a new auditor, and the investigation will scrutinize the lapses, accountability, and financial implications within the bank.
Published on: March 23, 2025
Dividend payouts by public sector banks increased by 33% to Rs 27,830 crore in FY24, highlighting their improved financial health. The government received nearly 65% of the total dividends, and SBI alone contributed over 40% of the profit, showcasing strong performance among PSBs.
Published on: March 23, 2025
IndusInd Bank has appointed Grant Thornton to conduct a forensic review of accounting lapses detected this month and to investigate potential fraud or internal misstatements. The bank disclosed a 2.35% overvaluation of its derivatives portfolio, violating Reserve Bank of India rules.
Published on: March 23, 2025
Kotak Mahindra Bank appointed Bhavnish Lathia as its new Chief Technology Officer. Lathia, lauded for his contributions over the past three years, will drive technology-driven transformation and innovation at the bank. Managing Director Ashok Vaswani emphasized Lathia's role in advancing the technology agenda to enhance customer satisfaction and organizational efficiency.
Published on: March 22, 2025
IndusInd Bank denies media reports suggesting the RBI asked its CEO and Deputy CEO to step down due to accounting issues. The bank, which revealed a significant overvaluation of its derivatives portfolio, has appointed external investigators to probe the matter. IndusInd asserts that the claims and information circulating are entirely inaccurate and misleading.
Published on: March 21, 2025
The Reserve Bank of India has penalized Citibank N.A. with Rs 36.28 lakh and IDBI Bank Ltd. with Rs 36.30 lakh for violations related to transaction reporting and inadequate due diligence on remittances respectively. These penalties highlight deficiencies in regulatory compliance and are not meant to impact the validity of customer transactions or agreements.
Published on: March 21, 2025
Rahul Bhave has been appointed as the Managing Director and CEO of IFCI for a three-year term. The government has also approved the consolidation of the IFCI Group, merging various subsidiaries into a single entity aimed at improving operational efficiency and streamlining management.
Published on: March 21, 2025
HDFC Bank, through its CSR initiative Parivartan, aims to bring two lakh acres of unirrigated land under irrigation by March 2025. The bank supports water conservation through watershed development, rainwater harvesting, and innovative solutions like drone-based irrigation and Ice Stupa projects in Ladakh to mitigate climate change effects.
Published on: March 21, 2025
In this regard, the bank would like to inform that it has received Rs 429 crore from a single trust in the Security Receipts Portfolio, Yes Bank said in a regulatory filing.
Published on: March 21, 2025
The Reserve Bank of India has asked IndusInd Bank CEO Sumant Kathpalia and his deputy to step down after significant accounting errors were found in the derivatives portfolio. The RBI seeks an orderly transition to avoid impacting depositors' confidence. The discrepancy led to Moody's placing the bank's rating on review for a potential downgrade.
Published on: March 21, 2025
Bank Strike March 2025: India will face a nationwide bank strike next week on March 24 and 25 led by the United Forum of Bank Unions. This strike will affect public sector, private sector, and regional rural banks, potentially leading to four days of interrupted banking services. ATM and online transactions will still be available, though larger transactions might be delayed.
Published on: March 21, 2025
Indian farmers facing climate-vulnerable conditions are hindered by high premiums and lower payouts in the national crop insurance scheme. Despite advancements in technology to improve transparency, farmers like Dileep Patidar struggle with inadequate coverage and prolonged delays in claim settlements.
Published on: March 21, 2025
Hitesh Mehta, accused in the Rs 122-crore embezzlement case at New India Cooperative Bank, will undergo a brain-mapping test for further investigation. Despite undergoing a lie detector test, little information was gleaned, prompting this next step. Seven individuals have been arrested so far, with others still at large.
Published on: March 21, 2025
"The scope of this new investigation is much wider and deeper, covering the entire bank, and will also address any lapses in accounting, including holding management accountable for any deviations that come to light," an official said.
Published on: March 21, 2025
Bain Capital will acquire an 18.6% stake in Manappuram Finance, a leading Indian gold loan company, through a primary infusion and secondary sale. The investment includes a mandatory open offer, potentially increasing Bain's stake to 41.7%. The deal, subject to regulatory approvals, aims to propel the company's growth.
Published on: March 20, 2025
The National Housing Bank has instructed home financiers to cease mis-selling bundled insurance policies with housing loans. NHB mandates explicit customer consent and multiple insurance options to ensure transparency and fair competition, following numerous complaints of uninformed borrowers and mismatched policy tenures.
Published on: March 20, 2025
India's insurance regulator has appointed five new key members to its Insurance Advisory Committee (IAC), including leaders from banking, asset management, and insurance sectors, aiming to shape future regulations. The IAC will submit its report in three months, with a new draft bill suggesting an FDI increase to 100% and a composite licence framework.
Published on: March 20, 2025
The Reserve Bank of India has replied to Mumbai Police's inquiry concerning the alleged embezzlement of ₹122 crore from New India Cooperative Bank. Queries included details on statutory audits, roles of board members, and reasons behind the surprise inspection, aiming to uncover potential irregularities.
Published on: March 20, 2025
IndusInd Bank has announced that it will hire an independent professional firm to conduct a thorough investigation into discrepancies related to its derivative accounts. The investigation aims to identify the root cause, evaluate the accounting treatment, ensure compliance with accounting standards, and establish accountability. The outcome will help the bank address any resulting issues.
Published on: March 20, 2025
Bajaj Finance has appointed Anup Kumar Saha as its new managing director, succeeding Rajeev Jain, effective April 1. Jain will transition to the role of vice chairman for three years. Saha, who joined Bajaj Finance in 2017, brings extensive experience from his 25 years in the financial services industry.
Published on: March 20, 2025
The Reserve Bank of India clarified that banks must disclose repo and reverse repo transactions in both market value and face value terms. This is in response to banks’ queries on financial statement disclosures. The RBI's guidance applies to all commercial and cooperative banks from the financial year ending March 31, 2025, onwards.
Published on: March 20, 2025
Bandhan Bank has partnered with Salesforce to enhance their lending efficiency using an AI-powered digital platform. This collaboration aims to improve customer experience, streamline loan originating systems, and drive digital transformation. Salesforce's advanced cloud-based platform will help Bandhan Bank enhance support, reduce costs, and increase revenue. The partnership aligns with the bank's migration to a new core banking solution.
Published on: March 20, 2025
Reliance's Jio Financial Services has a preliminary agreement with Allianz SE to start an insurance business in India. Allianz sold its stake in joint ventures with Bajaj Finserv to Bajaj Group for 2.6 billion euros. Allianz aims for a majority stake or governance rights in the new venture. Both companies did not comment immediately.
Published on: March 20, 2025
Bandhan Bank has partnered with Salesforce to enhance digital transformation in corporate and home loan segments. Utilising AI, Salesforce's solutions will streamline the loan process, potentially reducing costs and improving efficiency by 20%. With a focus on digital innovation post its core banking transition, this collaboration aims to simplify the entire loan lifecycle.
Published on: March 20, 2025
Zuno General Insurance introduces Zuno SmartDrive with the innovative Pay-How-You-Drive feature, integrating mobile telematics in car insurance. The product rewards safer driving with cost savings and personalized premiums based on real-time driving behavior. Users can track their driving score through the Zuno app, qualifying for additional savings and rewards.
Published on: March 20, 2025
Indranil Bhattacharyya has been appointed as the executive director of the Reserve Bank of India, effective from March 19. He will oversee the Department of Economic and Policy Research. Bhattacharyya brings nearly three decades of experience in monetary and fiscal policy, and has a postgraduate degree in economics from Jawaharlal Nehru University.
Published on: March 20, 2025
Prudential Plc and Vama Sundari Investments will launch a standalone health insurance business in India, with Prudential holding 70% and Vama 30%. The venture, led by Amar Joshi as CEO, will address India's growing healthcare market. Health insurance in India is expanding rapidly, driven by increased awareness, and the venture will support the 'Insurance for All by 2047' goal.
Published on: March 20, 2025
Foreign insurers are retreating from India, despite regulatory reforms easing ownership rules. Challenges in scaling without strong local partnerships and high operational complexity remain deterrents. Recent exits include Allianz Group, while Zurich Insurance has expanded its presence, highlighting mixed investor responses.
Published on: March 19, 2025
Deutsche, which has been closing branches in recent years in an effort to cut costs and has said more were coming, has already factored in the restructuring costs for the jobs, Sewing said at a financial conference organised by Morgan Stanley.
Published on: March 19, 2025
Sammaan Capital and its subsidiary Sammaan Finserve have settled their trademark dispute with Svamaan Financial Services. The agreement allows Sammaan Capital to continue using the 'Sammaan' name for all their loan products without restrictions. The resolution came after a court decree, ensuring no impact on Sammaan Capital's business plans.
Published on: March 19, 2025
RBI Governor Sanjay Malhotra advises urban cooperative banks to boost depositor trust, enhance customer service, and ensure resilience against IT and cyber risks. The RBI reaffirms its support for UCBs while highlighting the importance of their responsibilities towards depositors, emphasized during a meeting with industry bodies.
Published on: March 19, 2025
RBI Governor Sanjay Malhotra urged urban cooperative banks (UCBs) to strengthen resilience against IT and cyber risks during a meeting with UCB leaders. Acknowledging UCBs' role in financial inclusion, he emphasized the need for high customer service standards and operational stability.
Published on: March 19, 2025
Crisil refrains from placing IndusInd Bank on ratings watch but awaits the external agency's report to gauge the discrepancies in the derivatives portfolio. Despite expected one-time impact, the bank's pre-provisioning operating profitability and capital adequacy appear robust. Moody's reviews the bank's Ba1 rating due to internal control concerns.
Published on: March 19, 2025
India's insurance sector is undergoing significant changes with policy shifts and new alliances. Allianz SE has ended its JV with Bajaj Group, aiming to collaborate with Jio Financial Services. Patanjali Ayurved has entered the general insurance market with a majority stake in Magma General Insurance. LIC plans to acquire a stake in a health insurer.
Published on: March 19, 2025
Nearly 12,000 Singapore merchants will soon accept payments via UPI following a partnership between NPCI International Payments and HitPay. This initiative aims to provide a seamless payment experience for over 1.2 million Indian tourists expected in 2024. The collaboration underscores UPI's expanding global footprint and its growing acceptance in international markets.
Published on: March 19, 2025
Indian banks’ earnings growth may bottom out next fiscal year due to slow GDP and sluggish credit growth, according to Motilal Oswal. Private banks could see growth bottoming at 11% in FY26, while public sector banks may experience 8% CAGR due to higher costs and limited loan growth. Large cap banks are favored for their strong balance sheets.
Published on: March 19, 2025
Allianz SE is planning a partnership with Mukesh Ambani's Jio Financial for a major entry into India’s insurance market, post its split with Bajaj Group. Efforts have intensified, with talks ongoing for several months. Allianz seeks to hold a significant stake and influence in the venture, aligning with JFSL's expansion strategies in insurance.
Published on: March 18, 2025
Bank lending to large companies is increasing, driven primarily by the need for working capital due to rising raw material costs. However, there is still minimal growth in private sector capacity expansion despite some investments in capital assets, potentially hindering strong credit growth.
Published on: March 18, 2025
M Nagaraju, Secretary of the Department of Financial Services, emphasizes leveraging technology and AI to reduce insurance premiums to achieve universal coverage by 2047. Currently, India's insurance penetration is at 3.7%, below the global average. Actuaries are encouraged to utilize advanced analytical tools to create more affordable and effective insurance products, enhancing transparency and security in the sector.
Published on: March 18, 2025
The Supreme Court has instructed courts and tribunals to ensure insurance companies transfer claim amounts directly into claimants' bank accounts to prevent delays. This ruling aims to expedite compensation payments, especially for motor accident cases, which are significantly backlogged.
Published on: March 18, 2025
State Bank of India is moving forward with its plan to centralize operations by shifting several divisions under its global market unit from Kolkata to Mumbai. Despite protests and previous delays, they are pushing ahead with the move to streamline operations and enhance efficiency.
Published on: March 18, 2025
Axis Bank is negotiating to acquire between 3,500 and 4,000 ATMs from AGS Transact Technologies due to deteriorating service quality. The bank plans to audit the ATMs before finalizing the deal and transfer the machines to another service provider amidst AGS Transact's financial troubles.
Published on: March 18, 2025
Life Insurance Corporation of India (LIC) is set to announce its decision to acquire a minor stake in a health insurance company by the end of March. Concurrently, LIC is in talks with the Reserve Bank of India about issuing long-term government bonds with maturities of up to 100 years.
Published on: March 18, 2025
IndusInd Bank, despite an accounting discrepancy that revealed a potential Rs 2,100 crore impact, has adequate capital and hasn't sought fresh funds from its promoters, according to Hinduja Group's Ashok Hinduja. The promoters aim to increase their stake from 16% to 26%, taking advantage of the current low stock prices. An external auditor will further investigate the discrepancy.
Published on: March 18, 2025
IndusInd International Holdings Ltd (IIHL) has completed its acquisition of Reliance Capital (RCAP) by transferring the bid amount to lenders, with management transfer expected soon. IIHL plans to expand its BFSI portfolio and review RCAP's business. The acquisition follows IIHL's successful bid under the Corporate Insolvency Resolution Process with an offer of Rs 9,650 crore.
Published on: March 18, 2025
LIC's chief executive Siddhartha Mohanty revealed that the insurance giant plans to acquire a stake in a health insurer within two weeks, with the announcement expected before March 31. LIC will not seek a controlling 51% stake, and the final stake will depend on the board's decision and valuations.
Published on: March 18, 2025
S&P upgraded the ratings of several Indian NBFCs, including Shriram Finance, Muthoot Finance, and Sammaan Capital, citing improved regulatory environment. Bajaj Finance’s outlook was revised to positive due to strong asset quality and earnings stability. Enhanced RBI regulations are contributing to financial stability and sustainable growth among large NBFCs.
Published on: March 18, 2025
A civil society platform urges President Droupadi Murmu to intervene in SBI's plan to move its Global Market Unit from Kolkata to Mumbai, fearing it will weaken West Bengal's financial system and cause job losses. They claim the move undermines Bengal's financial prominence and will significantly impact the state's GST contributions and employment.
Published on: March 18, 2025
