Three factors may have led RBI Governor Sanjay Malhotra and MPC team to play the unconventional card as they cut repo rate by 50 bps and CRR by a percent. Will this work to achieve ‘aspirational’ growth in a global slowdown economy amid Trump’s ‘reciprocal’ tariffs?
Three trends mark SMBC’s agreement to buy 20% stake in Yes Bank. Timing turns favourable as mid-sized IndusInd Bank struggles; RBI more open to foreign investments; trade unions go weak.
Punjab National Bank is cushioned by large pipeline of sanctioned loans, improved asset quality and strong bad loan recovery capability as it plans to steer through any slowdown in economy due to tariff war.
IndusInd Bank fights storm from inside and starts clean-up exercise while hunting for new CEO to restore credibility; recovery will be slow and challenging even as competitors look to take away market share.
Three successive repo rate cuts ensure deposits across tenures will head south; CRR cut by 100 bps to 3% will provide ample liquidity and also push FD rates down.
RBI raises loan-to-value ratio on gold loans up to Rs 2.5 lakh to 85% per borrower from the present 75%; says such small-ticket loans will not require credit appraisals.
RBI’s higher-than-expected cut in interest rate by 50 bps is set to bring down cost of loans, stimulate domestic consumption, support investment cycle, boost credit growth and lower earnings from fixed deposits.
SBI accounts for over 40% of total earnings of state-owned banks in FY25; as per percentage increase, PNB reports highest net profit growth of 102% while Punjab & Sind Bank comes second.
Financial Services Institutions Bureau recommends Asheesh Pandey and Kalyan Kumar for the post of MD and CEO of Union Bank of India and Central Bank of India, respectively.
Cushioned by a cooling inflation, the RBI-led MPC has cut repo rate to 5.5% to give growth a big push. CRR cut by 1% is to boost liquidity. Inflation forecast for FY26 is revised downwards while GDP projection is retained despite global uncertainties.