Unions call govt’s move to open up top management positions in public sector banks, LIC and non-insurance companies as “a de facto privatisation of leadership” in these institutions.
RBI’s easing of restrictions is supportive of banks and corporates growing bigger through credit flow. Bad loans and reckless M&A deals can pose risks but it’s an environment where scale makes a difference.
Deposits rose year-on-year for Q2 but trailed behind credit growth. IndusInd Bank’s total business contracted while Union Bank of India has been seeing single-digit growth in loans as well as deposits for last few quarters.
Public sector banks must strengthen their capital buffers position and improve asset quality as they prepare for the future, said RBI Deputy Governor Swaminathan.
Bank credit to get lift in 2nd half of FY26 due to CRR and GST rate cuts; some stress to be felt in retail and small business loan segments.
Indian banks urge RBI to allow them to participate in financing M&A deals. Are the reasons for imposing the restrictions still relevant today?
India’s top 12 banks to shrink aggregate dividend payouts by 4.2% to $5.98 bn in FY26, estimates S&P; confluence of margin and profitability headwinds responsible.
Big-ticket home loans above Rs 75 lakh see rise; state-run banks gain market share as lending margins come under squeeze with RBI dropping repo rate by 100 bps since February.
Corporate credit share falls to 36% in FY25 from 58% in FY11; bank funding shifts to short term capital for existing projects as corporates tap alternate sources for long term financing.
IBA will also make a formal request to RBI, says SBI chairman CS Setty; permission for banks to fund acquisitions should at least start with listed companies.
The BCG report also said that bank credit growth has to outpace nominal GDP growth by 3-3.5 percentage points to power India into a developed nation by 2047.
Amid tariff-related uncertainties, RBI Governor Sanjay Malhotra emphasised need to push growth while anchoring inflation.
SBI increases upper band of home loan rate by 25 bps to 8.70% but keeps lower rate unchanged; other banks weigh moves on how to protect margins in falling interest rate regime.
Punjab National Bank has identified more than 100 NPA accounts with book size of around Rs 5,000 crore which it will sell to ARCs in FY26, says MD & CEO Ashok Chandra.
Ramping up retail deposits, being selective in corporate lending space and scaling up secured retail and MSME loans are areas bank will focus on in FY26, IndusInd Bank chairman Sunil Mehta said.
