Slippages in unsecured retail loans constituted 53.1% of the total retail loan slippages of scheduled commercial banks, RBI said in its half-yearly Financial Stability Report.
After four years of negative dip, public sector banks add workforce in FY25; small finance banks drive overall job growth in banking sector.
Share of private banks in new branches opened fell to 51.8% in FY25 from 65.5% a year ago; domestic bank branches rise 2.8% YoY to 1.64 lakh.
Frauds present multiple challenges by exposing financial institutions to reputational, operational and business risks while also weakening customer trust, RBI says.
Lenders contract credit to microfinance institutions, inducing further stress in the segment; loan disbursements in southern region particularly moderated in FY25.
Reserve Bank of India will issue comprehensive guidelines to regulated entities on advertising, marketing and sales to prevent mis-selling of financial products and services to consumers.
Funds raised by banks through private placements, qualified institutional placement and preferential allotment in FY26 have shrunk in comparison to the last three financial years.
Bad loans at multi-decadal low of 2.2%, strong capital buffers, sustained profitability and healthy balance sheets marked the resilience of India’s banks in FY25, RBI said in a report.
RBI to purchase govt securities worth Rs 2 trillion across four equal tranches of Rs 50,000 crore; will also conduct $10 billion 3-year dollar-rupee buy/sell swap auction.
After breaking Rs 9 trillion mark last month, SBI’s home loan book is set to hit Rs 10 trillion in FY27 on back of robust demand and a low interest-rate regime, Chairman Setty said.
Chairman CS Setty speaks about SBI working on construction finance, particularly on residential real estate but warns about aggressive players burning their hands; SBI has negligible presence in sector.
State Bank of India chairman CS Setty said the RAM segment will drive the lender’s credit growth to an upward revised 14% in the current financial year.
Despite RBI cutting repo rate by 25 bps, a similar drop in deposit rates is unlikely amid faster credit growth, flight away to stock investments and high credit-deposit ratio.
Industry experts say interest rate on home loans could drop to the low-7% range, making it an attractive window for homebuyers.
After lowering repo rate, RBI’s focus will be on transmission of this to lending rates for borrowers, says Governor Sanjay Malhotra.
