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State-owned Bank of Maharashtra has reduced interest rates on retail loans by 25 basis points following the RBI's 25 basis points cut in the repo rate. Home loan rates are now at 8.10% and car loans at 8.45%. Additionally, the bank will set up an International Financial Services Centre in GIFT City.
Published on: February 23, 2025
Rising temperatures and climate change may increase default risks in 30% of agricultural and housing loans in the next five years, according to a BCG report. Temperature increases negatively impact agriculture production and income, posing significant risks for banks. However, a $150 billion annual investment opportunity exists for banks in India's energy transition to renewable sources.
Published on: February 23, 2025
Real money gaming companies are struggling to comply with new Tamil Nadu regulations prohibiting minors and imposing 'blank hours.' They face technical challenges in swiftly implementing these laws. Some firms seek more time or are considering legal action, while potential criminal liability looms for non-compliance.
Published on: February 21, 2025
The Reserve Bank of India (RBI) imposed a penalty of Rs 39 lakh on Citibank N.A. due to non-compliance with large exposure framework directions and delays in furnishing credit information to CICs. Additionally, JM Financial Home Loans Limited and Asirvad Micro Finance Limited were fined for non-compliance with other regulatory provisions.
Published on: February 21, 2025
Irdai's implementation of Bima-ASBA for insurance premium payments will enhance transparency and security by blocking the premium amount until policy issuance. This mechanism prevents unauthorized deductions and ensures funds remain secure, offering significant benefits to policyholders and aligning with UPI-OTM features for smooth transactions.
Published on: February 21, 2025
Niva Bupa Health Insurance Co is investigating a possible customer data leak after receiving an anonymous threat claiming access to the data. This incident follows recent data breaches in the insurance sector involving HDFC Life Insurance and Star Health. Authorities have mandated audits of IT systems to counteract such threats.
Published on: February 21, 2025
The Reserve Bank needs to inject at least Rs 1 lakh crore into the banking system by March-end due to a liquidity deficit. Despite recent cash infusions and a rate cut, the deficit was around Rs 1.7 lakh crore. More bond purchases and swaps are anticipated to ensure effective policy transmission by lenders.
Published on: February 21, 2025
State-owned Bank of India reported a Rs 226.84 crore fraud by Gupta Power Infrastructure to the Reserve Bank. The bank has made provisions of Rs 212.62 crore for the NPA. BoI posted a 35% rise in net profit to Rs 2,517 crore for Q3 FY24, with total income and net interest income also showing significant growth.
Published on: February 21, 2025
RBI Deputy Governor Rajeshwar Rao emphasized the need for financial entities to educate customers on the risks of leveraged products and speculative investing. He highlighted challenges posed by technology advancements, such as AI and ML, and stressed the importance of human oversight and robust governance frameworks to ensure compliance and mitigate systemic risks in the evolving financial landscape.
Published on: February 21, 2025
Indian banks are experiencing pressure on their net interest margins due to the RBI's recent rate cut and expectations of further reductions. Strong loan growth has helped, but high deposit rates and increased competition for deposits are squeezing margins, with major lenders like SBI and Bank of Baroda reporting declines.
Published on: February 21, 2025
Indian insurers may raise health policy premiums by 10-15% for New Delhi residents due to a surge in air pollution-related claims in 2024. This hike, pending regulatory approval, would be a first in India, linking air pollution directly to insurance premiums. Higher hospitalization rates for respiratory conditions have prompted consideration of this increase.
Published on: February 21, 2025
RBI Deputy Governor M Rajeshwar Rao warns financial sector entities against 'reckless financialisation' amid rising unsecured lending and derivative euphoria. He emphasizes the need for customer awareness on the risks of leveraged products and speculative investing. Rao also highlights the importance of financial literacy and balancing regulation to maintain financial stability while fostering innovation.
Published on: February 21, 2025
Research from the Indian Institute of Management, Lucknow, highlights that banks with a higher proportion of green loans see improved long-term financial stability. The study, focused on the Indian banking sector, emphasizes the need for regulatory support to promote sustainable, non-carbon-intensive lending practices.
Published on: February 21, 2025
Hitesh Mehta, ex-general manager of New India Coop Bank, allegedly directed staff to hand over large sums of money to his associates, leading to a Rs 122 crore embezzlement. The Economic Offences Wing is investigating the case after an RBI inspection revealed the discrepancy. Statements from bank staff and auditors are being recorded to ascertain the details.
Published on: February 21, 2025
The Burman family has officially taken over Religare Enterprises Ltd (REL) and plans to infuse ₹2,000 crore by subscribing to preferential shares, increasing their stake to over 50%. They aim to rebrand Religare and appoint a new management team to transform it into a competitive non-banking financial company.
Published on: February 21, 2025
Cyberattack vulnerability in Asia-Pacific's financial sector is double the global average due to inadequate cybersecurity investments. With the introduction of the "bank.in" domain by the RBI, banks face increased risks during the migration process. Increased phishing attacks and data breaches underscore the need for robust cybersecurity measures.
Published on: February 20, 2025
Intense competition among banks in the mid-sized corporate sector is leading to mispriced loans and increased risk exposure. Banks like HDFC and Kotak Mahindra are expressing concern over the trend, emphasizing the need for proper risk-adjusted pricing to maintain sustainable credit costs in the long term.
Published on: February 20, 2025
Bandhan Bank has opened nine new branches across West Bengal, Uttar Pradesh, and Maharashtra, further enhancing its pan-India presence to over 6,300 outlets. This move aligns with the bank's commitment to growth and better customer service, especially in key markets like West Bengal where the bank has its highest number of outlets.
Published on: February 20, 2025
Irdai has established a seven-member committee led by ex-SBI Chairman Dinesh Khara to review and suggest amendments to the Insurance Act, 1938. Proposed changes include raising the FDI cap to 100%, implementing a composite license, and enabling new players. Finance Minister Sitharaman announced this initiative in the February Budget to boost insurance sector penetration.
Published on: February 20, 2025
A report by Policybazaar for Business reveals that the age group of 25-35 has the highest insurance policy claims, with a significant portion attributed to maternity coverage. Claims from women account for 60%, while claims from men make up 40%. Corporates are customizing age-specific health benefits, as industries with young workforces adopt comprehensive healthcare plans.
Published on: February 20, 2025
The Reserve Bank of India plans to allow depositors of New India Co-operative Bank to make special withdrawals for emergencies, requiring proof for up to 500,000 rupees. The bank faces liquidity issues and heavy losses, with withdrawals currently barred. Over the weekend, depositors considered legal options to access their funds for urgent needs.
Published on: February 20, 2025
Punjab National Bank (PNB) has decreased interest rates by up to 25 basis points on retail loans including housing, auto, education, and personal loans following the RBI rate cut. PNB is offering perks such as waived processing fees and extended repayment tenures, with revised rates being applicable from February 10, 2025.
Published on: February 20, 2025
Citigroup Inc.'s India unit plans to significantly boost its asset-backed securities portfolio to over $1 billion by the end of the fiscal year to provide liquidity as domestic lenders face sluggish deposit growth. The securitization market in India is growing, driven by large private banks and non-bank financing companies.
Published on: February 20, 2025
Google Pay has started charging a convenience fee for bill payments made with credit and debit cards, with fees ranging from 0.5% to 1% of the transaction value plus GST. This move highlights a shift towards monetizing UPI transactions to offset processing costs as UPI adoption grows.
Published on: February 20, 2025
HSBC, Europe's largest lender by assets, reported an 11% increase in pre-tax profit in its Indian operations to $1.68 billion for the last calendar year, driven by growth in both wholesale and retail banking. The bank, recently approved to expand in India, aims to leverage new local opportunities.
Published on: February 19, 2025
Insurance regulator Irdai mandates life and health insurers to implement the Bima-ASBA facility, enabling policyholders to block premium amounts in their bank accounts. The funds will be debited only when the insurance policy is issued, aiming to ensure smoother transactions and payment processing.
Published on: February 19, 2025
Credit Fair secures $5 million in debt from Symbiotics Investments' Green Basket Bond to boost its rooftop solar financing initiative. The funds aim to support rooftop solar projects in tier-2 and tier-3 cities, targeting residential and MSME customers, contributing to carbon emission reduction and sustainable energy solutions.
Published on: February 19, 2025
In the December quarter, nonperforming asset (NPA) provisions for 29 banks rose by 20% year-on-year, reaching Rs 23,298 crore, driven by a significant increase from private sector lenders. Public sector banks saw a record low in provisioning, continuing a decline for the tenth consecutive quarter. Notably, Axis Bank and Kotak Mahindra Bank reported substantial hikes in provisions.
Published on: February 19, 2025
The Mumbai Police are investigating a ₹122 crore fraud at New India Cooperative Bank and have sought information from the RBI regarding past complaints about the bank. The Economic Offences Wing has already arrested the general manager for alleged embezzlement, and further irregularities have been reported by the bank's acting chief accounting officer.
Published on: February 18, 2025
The Urban Cooperative Banks (UCBs) sector is under scrutiny following regulatory actions, with 1,472 banks and significant deposits and advances. As of March 2024, two scheduled UCBs had critically low capital ratios, leading to enhanced monitoring and corrective measures by the RBI, including potential license cancellations.
Published on: February 18, 2025
The government plans to refer the Insurance Amendment Bill, proposing 100% FDI in the insurance sector, to a parliamentary committee to address concerns. Finance Minister Nirmala Sitharaman emphasized measures to keep premiums within India and attract global players to enhance the insurance market.
Published on: February 18, 2025
The Enforcement Directorate (ED) seized ₹1,646 crore assets in a probe into a $2.4-billion ponzi cryptocurrency scam and plans to work with global authorities to restore the funds to victims worldwide. The ED interrogated Satish Kumbhani, the mastermind, and plans to secure his arrest. BitConnect defrauded investors using a fake trading program, collecting $2.4 billion.
Published on: February 18, 2025
The Competition Commission of India approved the merger of Chaitanya India Fin Credit and Svatantra Holdings with Svatantra Microfin. This move will result in Svatantra Micro Housing Finance Corp becoming a wholly-owned subsidiary of Svatantra Microfin, enhancing its financial service offerings under Ananya Birla's leadership.
Published on: February 18, 2025
Punjab National Bank has reported a fraud of Rs 270.57 crore by Gupta Power Infrastructure Ltd to the Reserve Bank of India. The fraud pertains to a non-performing asset loan disbursed by the Bhubaneswar branch. The bank has already made provisions for the reported fraud amount.
Published on: February 18, 2025
The Delhi High Court lifted a restraining order, allowing Sammaan Capital and Sammaan Finserve to use the 'Sammaan' name. The companies must disclose their former names and include a disclaimer in all advertisements, clarifying no association with Svamaan Financial. The dispute involved alleged trademark infringement by Indiabulls' rebranding, which Svamaan Financial claimed was similar to its own trademark.
Published on: February 18, 2025
State-owned IREDA announced that its wholly-owned subsidiary, IREDA Global Green Energy Finance IFSC Limited, has received provisional registration as a finance company at Gift City, Gujarat. The International Financial Services Centre Authority (IFSCA) granted the registration on February 18, allowing the subsidiary to undertake financial activities.
Published on: February 18, 2025
The government is introducing measures to reform the insurance sector. These include extending the free-look period to one year and introducing a composite insurance licence. Plans are also in place to restrict the sale of insurance products to trained agents only. The reforms aim to reduce mis-selling and increase insurance penetration in the country.
Published on: February 18, 2025
Indian Overseas Bank has introduced Aadhaar-OTP based account opening and API Banking services to enhance customer experience on its 89th Foundation Day. These initiatives aim to provide simplified and secure banking solutions for both individuals and corporates, aligning with the bank's commitment to digital transformation.
Published on: February 18, 2025
Thousands of Indian investors are struggling to recover almost $100 million from a Ponzi scheme involving Falcon Invoice Discounting, which promised high returns. The scheme defrauded nearly 7,000 investors, with police making arrests and searching for the key founder, Amardeep Kumar.
Published on: February 18, 2025
ICICI Bank Ltd. is considering purchasing an additional 3% stake in ICICI Prudential Asset Management Co. from Prudential Plc ahead of the company's potential IPO. This would allow ICICI to maintain its 51% shareholding even after allocating 3% to employees under a stock options plan. Prudential has hired Citigroup as the arranger for the IPO.
Published on: February 18, 2025
Life Insurance Corporation of India launched the 'One Man Office' service to create a digital ecosystem for its sales force, improving efficiency and productivity. It includes features for policy sales, after-sales services, business tracking, and training resources, accessible via mobile phones.
Published on: February 18, 2025
The government plans to streamline compliance in the insurance sector by identifying redundant regulations, aiming for improved ease of business. Proposed amendments to the existing insurance laws will support 100% FDI and seek to enhance policyholder security and market competition.
Published on: February 17, 2025
Karnataka Bank has requested the Reserve Bank of India for the reversal of a suspicious cross-border UPI transaction amounting to Rs 18.87 crore. The bank identified deficiencies in the reconciliation process but assured that this has not affected its operations or customer service, and measures are in place to prevent recurrence.
Published on: February 17, 2025
360 ONE Asset is set to acquire a 15% stake in Bharti AXA Life Insurance, aiming to boost innovation and expand market reach. The investment will help Bharti AXA enhance its product offerings and address consumer needs, with the deal awaiting regulatory approvals.
Published on: February 17, 2025
SBI Cards and Payment Services has appointed Salila Pande as the new Managing Director and CEO, effective April 1, 2025. Pande, a career banker with SBI since 1995, will replace Abhijit Chakravorty following his retirement on March 31, 2025. The appointment is for a two-year term.
Published on: February 17, 2025
The government is considering increasing the deposit insurance limit beyond Rs 5 lakh, following the New India Co-operative Bank scam. This proposal is being actively reviewed, with a final decision pending. The scam revealed a Rs 122 crore shortfall due to embezzlement. The RBI is handling the situation, emphasising the cooperative banking sector's overall strength despite isolated incidents.
Published on: February 17, 2025
The implementation of IndAS117 has cost the insurance industry around $20 billion. Although challenging, it promises enhanced transparency and comparability. Key issues include data management, technology integration, and cross-functional collaboration. However, IndAS117 offers strategic advantages such as improved financial reporting, portfolio analysis, and technology-driven efficiency. Insurers are encouraged to leverage these opportunities for transformation.
Published on: February 17, 2025
Standard Chartered named P D Singh as the future CEO for India, succeeding Zarin Daruwala upon her retirement in 2025. Singh brings nearly three decades of banking experience from JP Morgan Chase and HSBC, poised to further drive growth and deliver value for the bank's stakeholders.
Published on: February 17, 2025
PhonePe has introduced a device tokenisation solution for credit and debit cards, enhancing security and simplifying the transaction process for users. The initial rollout supports Visa cards, with plans to expand to more networks. This solution benefits both consumers and merchants by offering faster transactions and reducing fraud risks.
Published on: February 17, 2025
Paytm is committed to becoming profitable in the next quarter. The company has a strong focus on digital payments and is recalibrating its credit activities. Regulatory compliance improvements are underway. The goal is to generate profits and continue growing its user base while benefiting from government initiatives and the National Digital Retail initiative.
Published on: February 17, 2025
