BANKING

India Post will be revamped into a major public logistics entity, enhancing its role in the rural economy with its vast network. The government plans to establish a new urea plant in Assam and will increase credit access for MSMEs to bolster exports, while supporting the National Cooperative Development Corporation's lending operations.

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The government has increased the FDI limit for the insurance sector from 74% to 100% in the Budget for 2025-26. This move aims to attract more foreign investment and improve domestic financial services. The Insurance Amendment Bill, intended to enable global players to independently enter the market, was supposed to be tabled during the winter session of Parliament.

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BANKING

Punjab National Bank aims to recover 170 billion rupees in bad loans this financial year, focusing on large corporate accounts. In the December quarter, the net profit more than doubled due to improved asset quality. The bank raised its loan growth target to 13%-14%, leveraging its extensive branch network across India.

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BANKING

In December 2024, lending rates of commercial banks eased while deposit rates saw a marginal rise according to RBI data. The weighted average lending rate on fresh rupee loans fell to 9.25%, while the average domestic term deposit rate on fresh deposits increased to 6.57%.

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BANKING

Banks in India have significantly improved their financial health over the past decade, with asset quality in a comfortable position and gross non-performing assets at a 12-year low of 2.6% in September 2024. Profitability surged, and net NPAs declined to 0.6%, contributing to a stronger balance sheet despite a slight contraction in net interest margin.

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BANKING

The Insurance Regulatory and Development Authority of India (Irdai) has mandated that insurers cannot increase health insurance premiums for senior citizens by more than 10% annually. This directive aims to address the steep premium hikes observed in certain health insurance products for those aged 60 and above.

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BANKING

Banks in India have found that many foreign nationals, including US citizens, have opened accounts using incorrect tax identification numbers (TINs). The tax office has alerted banks to these anomalies. To avoid non-compliance, Indian banks want regulations requiring foreign nationals to provide authentic documents verifying their TINs, as per FATCA and CRS standards.

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BANKING

The Reserve Bank of India has initiated a corporate insolvency resolution process against Aviom India Housing Finance due to governance issues and payment defaults. A three-member advisory committee and an administrator have been appointed to manage the New Delhi-based firm during this process.

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BANKING

India Post Payments Bank (IPPB) and PNB MetLife India Insurance Company Limited have partnered to offer life insurance solutions to millions across India. This collaboration aims to promote financial inclusion by providing life insurance products through IPPB's extensive network and reaching underserved populations, ensuring better financial security for customers.

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BANKING

The RBI has developed 'supervisory discomfort' with some small finance banks due to high concentration risks and rising asset quality stress. These banks have been advised to explore mergers to mitigate these concerns. Small finance banks with significant exposure to the microfinance sector and certain geographic areas are particularly affected.

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Apax Partners LLP appointed Harjot Dhaliwal as the new India head after Anurag Sud's departure. This aligns with the firm's strategy shift in India, focusing more on technology and internet consumer investments while exiting the healthcare sector. The announcement follows significant transactions including the sale of Healthium Medtech to KKR.

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BANKING

Credit card usage in India has surged, with active cards doubling to 108 million and transaction value tripling to ₹20.37 lakh crore in five years. Debit card growth was modest as digital payment methods gained traction. Public sector banks' market share in debit cards fell while credit card debt rose 19%, highlighting a shift in consumer credit preferences.

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BANKING

Union Bank of India is selling 41 bad-loan accounts, including those of Nirmal Lifestyle, Future Brands, Sahara Hospitality, and Panduranga Energy Systems, totaling ₹1,561 crore. Interested parties can bid by February 11, with auctions on February 12 and a second round on February 20.

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BANKING

Banks have requested the government for an extension of the deadline for implementing Sebi's Cybersecurity and Cyber Resilience Framework to June, citing a need for more time to comply. Currently, the deadline has been extended to April 2025, but lenders argue that additional time is necessary for proper implementation.

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BANKING

Cred becomes the first fintech platform in India to offer access to the e-rupee, a digital currency launched by the Reserve Bank of India. The rollout will initially target a select set of users with YES Bank facilitating the issuance of e-rupee tokens. Adoption of the digital currency has faced challenges globally.

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BANKING

"We have seen a shift toward the pure protection products as compared to the return of premium policies," said SBI Life recently. "Now 57% policies out of the protection segment are with the return of premium whereas the mix in pure protection has increased to 43% and that is being reflected in our product portfolio for the December quarter."

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BANKING

UPI has transformed India's digital payment landscape, making up 83% of total payment volume by 2024, a sharp rise from 34% in 2019. UPI transactions hit 17,221 crore, driving the overall payment volume to 20,787 crore. RBI highlights UPI's impressive CAGR of 74% over five years in boosting digital payments in India.

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BANKING

Retail credit growth is slowing, with declines in home, auto, and credit card loan originations by up to 24% year-on-year by September 2024. Personal loans saw modest growth, while overall consumption-driven loan values fell, impacting CIBIL's Credit Market Indicator, which dropped to a three-year low.

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BANKING

Navin Wadhwani has stepped down as head of investment banking at JP Morgan India after just over two years. His duties will be shared between Nitin Maheshwari and Ravi Shankar. Wadhwani's exit comes amid a market slowdown, having joined JP Morgan in 2022. Maheshwari and Shankar have been with the bank since 2015 and 2017, respectively.

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BANKING

India's banking sector has shown improvement, with Gross NPAs falling to a 12-year low of 2.6%. The upcoming Budget 2025-26 aims to introduce preemptive steps and systemic reforms to ensure sustainable asset quality, focusing on judicial efficiency, regulatory restructuring, and technological integration.

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BANKING

The RBI faces challenges providing liquidity amidst India's banking system issues, as traditional OMOs have limited impact due to regulatory and structural constraints. Reforms in CRR and LCR requirements could inject direct liquidity, while innovative measures like long-term repo operations and dynamic LCR adjustments might support broader credit growth and equitable economic growth.

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BANKING

Private lenders and all-India financial institutions will now have access to CEIB data before sanctioning or renewing loans. This initiative aims to assist with verification and decision-making processes, placing private lenders on an equal footing with state-owned banks and improving efficiency in financing high-value projects.

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BANKING

Consumer complaints against banks and NBFCs rose significantly in FY23-24, largely due to issues with loans, digital banking, and deposit accounts. The RBI focused on strengthening the consumer grievance mechanism as complaints against private and public sector banks increased, while ATM/debit card complaints saw a decline.

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BANKING

The State Government has decided to take strict action against micro-finance institutions (MFIs) demanding high interest rates and harassing borrowers. A helpline for complaints is being set up, and new laws will be implemented to prevent forced recoveries and harassment. The CM emphasized the need for compliance with RBI guidelines and the importance of safeguarding borrowers' rights.

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BANKING

Complaints against banks and NBFCs surged by about a third in FY24 as the RBI focused on improving consumer grievance mechanisms. Nearly a million complaints were recorded, a sharp increase from the previous fiscal's 700,000. Private sector banks saw a 37% rise in complaints, while public sector banks experienced a 10% increase.

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BANKING

The unexpected move comes even as the Burmans of Dabur are about to launch their open offer for the Delhi-based company. Digvijay (Danny) Gaekwad's offer to acquire Religare shares at Rs 275 apiece is at a 17% premium to that of the Burmans. The proposed competing open offer will be for 26% of the outstanding share capital of REL.

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BANKING

Bahrain’s Investcorp plans to expand its India investments with larger deals and a revised strategy. Since entering India in 2018, Investcorp has deployed $1 billion in mid-market deals across sectors like consumer, healthcare, and technology. The firm is now raising $450 million for new investments.

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BANKING

The RBI reported that its ombudsman resolved 95.1% of the 9,34,355 complaints received in FY 2023-24. Majority of the complaints were submitted digitally, with most against banks and NBFCs, particularly concerning loans and advances. Moving forward, RBI aims to further improve complaint management and enhance consumer protection as outlined in their strategic framework, Utkarsh 2.0.

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BANKING

Jio introduces JioSoundPay, a free feature for their JioBharat device, offering instant audio confirmations for UPI payments to 5 crore small merchants. This enhances business operations for small vendors and saves them Rs 1,500 annually. To mark 75 years of India's Republic, Jio also offers contemporary renditions of Vande Mataram through JioSoundPay.

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The Karnataka government plans to enact tougher laws to control microfinance companies amid reports of loan recovery agent harassment leading to suicides. Home Minister G Parameshwara mentioned that stricter regulations might be introduced to protect borrowers. Former CM H D Kumaraswamy criticized the government for not addressing this issue, urging decisive action against exploitative practices.

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BANKING

The Reserve Bank of India (RBI) has requested commercial banks to report the impact of the proposed stringent liquidity coverage ratio (LCR) norms, which require banks to hold more high-quality liquid assets (HQLAs). The norms are intended to mitigate withdrawal risk but may constrain lending capacity.

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BANKING

RBI Governor Sanjay Malhotra's upcoming meeting with bank chiefs on January 27 addresses deceleration in growth, currency volatility, and liquidity crunch concerns. This meeting precedes his first monetary policy review and aims to seek feedback on money market liquidity, credit growth, and draft norms impacting banks' earnings and growth.

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BANKING

Ujjivan Small Finance Bank plans to apply to the RBI for transitioning to a universal bank, aiming for lower capital adequacy requirements and decreased priority sector lending targets. Third-quarter net profit dropped 64% due to higher provisions amid microfinance stress. Deposits grew 16.3% year-on-year.

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BANKING

Kotak Mahindra Bank announced on Thursday that it has finalized the acquisition of Standard Chartered Bank India's Rs 3,300 crore personal loan portfolio after obtaining necessary regulatory approvals. This acquisition includes all personal loans classified as standard advances. The transaction was initially announced in October last year and was completed on January 23, 2025.

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BANKING

Indian Overseas Bank (IOB) in Chennai has received up to 10 initial queries from asset reconstruction companies (ARCs) for the sale of Rs 638 crore in bad loans, including unsecured education loans and MSME loans. The e-auction for these assets is set to take place on January 31, with a reserve price in place.

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BANKING

Bankers at the World Economic Forum emphasised the necessity of balancing regulatory requirements with economic growth. They argued for minimising excessive regulations and capital demands that hinder banks' operations. While advocating for effective regulation, they cautioned against overburdening businesses and stifling the economy.

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BANKING

The market borrowings mostly comprise tier-II bonds, infrastructure bonds and green bonds among others and were the highest in six months. This trend could impact bank profitability as these borrowings tend to be costly during tight liquidity conditions.

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BANKING

Potential buyers such as Fairfax Financial, Emirates NBD, Oaktree Capital, and Kotak Mahindra Bank have begun due diligence on IDBI Bank with access to confidential data, moving forward with the disinvestment process. The government and LIC aim to sell a 60.

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BANKING

The Reserve Bank of India canceled the registration of X10 Financial Services Ltd, an NBFC, due to irregularities in its digital lending operations. The company outsourced key functions like credit appraisal and customer verification to service providers without due diligence, violating outsourcing guidelines.

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BANKING

Jana Small Finance Bank plans to apply for a universal banking license next fiscal year. The bank has maintained a net non-performing assets ratio below 1%, has increased its secured loan book, and met other regulatory requirements. The bank's gross advances and deposits have grown, despite a drop in net profit for the December 2024 quarter.

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BANKING

The Indian Banks' Association is seeking a new CEO following the retirement of Sunil Mehta in September 2024. A three-member search committee has been formed for the selection process. The former PNB CEO, Atul Kumar Goel, is considered the leading candidate.

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BANKING

India's major banks plan to request RBI Governor Sanjay Malhotra to delay implementing new liquidity regulations set for April 1, arguing these could impede lending efforts. Banks seek relief through revised LCR norms and suggest considering existing cash reserve ratio funds toward the new requirements.

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BANKING

The government and RBI are considering a 'cooling off facility' to temporarily block funds in bank accounts to combat online fraud through mule accounts. Enhanced KYC protocols and inactive account closures are also being explored as measures to prevent digital payment fraud.

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BANKING

NBFCs are expected to face pressure on margins due to liquidity issues and high funding costs in Q3 of 2024. Microfinance companies and those with high unsecured loans may see payment delays. Analysts predict slowed credit growth, elevated credit costs, and deteriorating asset quality, exacerbated by subdued vehicle financing and regulatory scrutiny.

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BANKING

Burman family's open offer to acquire 26% additional stake in Religare Enterprises Ltd begins on January 27. The offer targets 9 crore shares, closing on February 7. Burmans currently hold a 25.12% stake. Announced in September 2023, the Rs 2,116-crore bid faced opposition from REL independent directors citing fraud allegations.

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BANKING

IIFL Finance raised $325 million at 8.75% for a 3.5-year bond, joining Tata Capital and Vedanta Resources in tapping global debt markets this week. This move reflects strong investor interest in India's financial sector, helping IIFL Finance diversify funding sources amidst domestic liquidity constraints. Over 55% of subscribers were US investors.

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BANKING

The Reserve Bank of India is considering Tata Sons' request to de-register from the list of core investment companies under NBFC-UL norms. Tata Sons, now a zero-debt company, seeks exemption from required listing. The list includes 15 finance companies, with Tata Sons, Tata Capital, and HDB Finance remaining unlisted.

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BANKING

Indian Bank has appointed Binod Kumar as its new MD and CEO. Kumar, with three decades of banking experience, previously served as the executive director of Punjab National Bank. He aims to enhance Indian Bank's market presence, deepen customer relationships, and deliver robust financial services.

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BANKING

Bank of Maharashtra plans to further raise capital to reduce government holding below 75% and comply with Sebi's MPS norms. Currently, the government's stake is 79.6%. The bank reported a 36% increase in net profit to Rs 1,406 crore for Q3FY25, with a 19.37% growth in Net Interest Income and improved asset quality indicators.

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BANKING

RBI prioritised liquidity infusion into the banking system with daily variable rate repo (VRR) operations starting Thursday for Rs 50,000 crore, amidst a significant liquidity deficit. Such moves aim to align call rates with the current repo rate, while addressing the banking system's core liquidity shortfall.

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BANKING

Financial Services Secretary M Nagaraju urged public and private sector banks to increase their efforts in implementing financial inclusion schemes, emphasizing loans for SC/STs and expanding banking services in remote areas. A review meeting highlighted the progress of various government schemes and stressed the need for more brick and mortar branches in unbanked villages.

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BANKING

Mumbai-based Truhome Finance, formerly Shriram Housing, aims to expand its business by 30% by FY26, backed by strategic initiatives and capital infusion of Rs 1,200 crore from owner Warburg Pincus. The company also plans sustained growth over the next 5-7 years and targets to be the No. 1 affordable housing finance company.

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BANKING

State-bank divestments: India may reduce its ownership in five state-run banks, including UCO Bank and Indian Overseas Bank, through stake sales or by the banks themselves selling shares to large investors. The goal is to decrease the government's holding in these lenders to below 75%. This move aims to boost the banks' liquidity and lending capacity amid economic uncertainty.

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BANKING

India's insurance market is set to be the fastest-growing among the G20 economies over the next five years, driven by macroeconomic stability, regulatory support, and digitalisation. Life insurance premiums are expected to grow significantly, while non-life insurance will benefit from rising risk awareness and economic growth.

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BANKING

Over 150 contractual and outsourcing staff at Mumbai’s NCLT went on strike due to non-payment of December 2024 salary. They demand immediate payment and salary revision. Workers cite repeated delays in disbursements, affecting their livelihood. NCLT's functioning is impacted, urging MCA to resolve the issue swiftly.

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BANKING

Banks are revising rates to attract deposits due to a liquidity shortage. IDBI Bank offers higher rates for those aged 80 and above. Bank of Baroda has a liquid fixed deposit scheme. Extra interest is given to senior and super senior citizens. IDBI Chiranjeevi-Super Senior Citizen FD scheme will be effective from January 13, 2025.

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BANKING

Farm loan waiver dues from state governments are hindering banks from providing more credit to priority sectors like agriculture. This issue arises due to fiscal irresponsibility and delayed reimbursements straining bank operations. The Telangana government owes ₹20,865 crore for loan waivers, causing liquidity issues and a rise in non-performing assets. This affects long-term financial stability.

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BANKING

The life insurance industry saw a 4.8% year-on-year growth in Retail Annualized Premium Equivalent (APE) for December 2024, hindered by a 13% decline in LIC’s Retail APE due to new surrender regulations, while private sector growth rose by 11.4%. SBI Life led as the fastest-growing private insurer.

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BANKING

The National Payments Corporation of India clarified that reports of the 'Jumped Deposit' Scam do not reflect breaches on the Unified Payments Interface platform. Transactions on UPI require user intervention, and no external party can withdraw funds without the user's authorization, ensuring the platform's security.

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BANKING

Bank of India is raising up to $400 million in its first dollar syndicated loan since 2012, via its Gujarat branch. Reliance Industries, Shriram Finance, and State Bank of India are also pursuing significant foreign currency loans, contributing to an expected rebound in Asia Pacific loan volumes.

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BANKING

Loan growth for Indian NBFCs and HFCs is expected to moderate to 17% in FY25 from 21% in FY24 due to weaker credit demand and reduced lending to unsecured loans. Economic activity is anticipated to improve in FY26, stabilizing sector growth levels.

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BANKING

The microfinance sector in India has seen a decline from Rs 4.43 lakh crore in March 2024 to Rs 3.93 lakh crore by November due to slowing loan disbursals and rising asset quality stress. Collection efficiency has dropped, affecting the sector's performance. Recovery is expected in the second half of FY26, with lenders implementing strategies to prevent further decline.

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BANKING

Heads of Public Sector Banks (PSBs) will meet on Wednesday to review progress on financial inclusion schemes like Jan Suraksha, Mudra Yojana, and PM SVANidhi. The meeting, chaired by Financial Services Secretary M Nagaraju, will also focus on the StandUp India Scheme and various insurance-driven initiatives.

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BANKING

Bank of Baroda (BoB) is providing enhanced banking services for the Maha Kumbh Mela 2025, including AI-driven customer support, forex facilities, and digital payment solutions, to accommodate the needs of over 45 crore expected attendees. BoB aims to leverage this event to promote digital payments and enhance customer engagement.

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BANKING

The government has formed a crisis management group to handle nationwide strikes by public sector bank employees, including the planned February 24-25 strike. The group will work on strengthening SOPs to ensure business continuity, such as ATM replenishment and branch services. The AIBOC demands a five-day work week and withdrawal of recent performance review directives.

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BANKING

The Reserve Bank of India (RBI) significantly increased enforcement of penalties on banks in FY24, with public sector banks paying six times more and private banks paying double the previous year. Enhanced vigilance since the near-collapse of Yes Bank has led to heightened surveillance and stricter regulatory actions, including bans on significant lenders.

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BANKING

The Insolvency and Bankruptcy Board of India has required the use of the eBKray auction platform for selling assets under liquidation from April 1. Insolvency professionals must list all unsold assets on the platform by March 31. The platform is being piloted and already has 210 listed assets.

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BANKING

The quarterly average ticket size of MFIs loan disbursals rose 43 per cent between September 2021 and 2024 to Rs 50 thousand. The report noted high delinquencies among borrowers. Banks opened 5,400 branches in FY24. Loan-to-deposit ratio stabilized at 80 per cent. Private banks outpaced PSU banks in deposit growth. NPA ratio is at a 12-year low.

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BANKING

Banks are now closely scrutinizing write-offs of service export receivables due to suspicions of money parking abroad. Regulations permit limited self-write-offs for goods, but banks are hesitant to extend this to services. New RBI guidelines may bring clarity to service export transactions.

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BANKING

The number of borrowers taking loans from three or more lenders was 11 million, or 13% of the total microfinance borrower base of 85 million, showed the latest data collated by credit bureau CRIF High Mark, and seen by ET. At present, the microfinance sector is reeling under severe asset quality stress. The sectoral gross nonperforming assets ratio rose to an 18-month high of 11.6% at the end of September

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BANKING

In January, the Reserve Bank of India accepted almost 77% of the notified amount in buyback auctions of government securities. Banks bid aggressively due to deficit liquidity in the banking system. The auctions received bids worth ₹45,710.2 crore for a notified amount of ₹25,000 crore. The RBI accepted ₹19,217.5 crore.

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BANKING

Mid-tier manufacturing or process-based companies including Himadri Speciality Chemical, Ramco Group, and Gharda Chemicals are increasingly turning to private credit funds for financing due to slowed bank credit and tepid growth in mutual funds. These funds offer quick access to capital for expansion and acquisitions despite stringent terms.

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BANKING

Banks and primary dealers urge the Reserve Bank of India (RBI) to inject liquidity through foreign exchange swaps or OMOs in the upcoming policy meeting on February 7. The aim is to ease system liquidity deficit and high forward premiums affecting short-term borrowing costs and importers.

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BANKING

Registrations of new insolvency professionals have been steadily decreasing since 2017-18, causing challenges for authorities in resolving stressed firms. Just 77 professionals registered in the first half of this fiscal. Inadequate compensation and fears of investigation are key reasons. The number of active professionals may seem adequate now but could pose issues if bad loans rise.

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BANKING

NBFC firm Paisalo Digital has serviced over 59 lakh customers within two years by initiating transactions worth more than Rs 3,400 crore through collaborations with SBI and Bank of India. The company's technological initiatives and partnerships aim to provide banking facilities to India's under-banked population and further expand its outreach by 2025.

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BANKING

In the September quarter, microlending outstandings declined by 4.3% to Rs 4.14 lakh crore due to lenders adopting a cautious approach amidst worsening asset quality. Loans unpaid for 31-180 days saw a notable increase. Only NBFCs grew their portfolio while banks and small finance banks experienced declines.

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BANKING

Facial recognition-based Aadhaar payments, launched by NPCI, have not gained traction even after a year due to limited implementation by banks. Public-sector banks like SBI seek a desktop version from UIDAI. Facial recognition promises lower costs and better reliability compared to other Aadhaar verification methods.

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BANKING

The government has urged public sector banks to improve their debt recovery strategies. Banks are examining the legal feasibility of consolidating cases to streamline recovery efforts. A review will be held by the end of the fiscal year to assess progress. The aim is to reduce case pendency and optimize recovery processes.

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BANKING

The Finance Ministry scheduled a meeting with microfinance institutions on Wednesday to address rising bad loans and delinquencies. The Department of Financial Services Secretary is expected to chair this meeting. The microfinance sector has shown increased stress and borrower indebtedness, with a notable rise in delinquencies and loan sizes over the past three years.

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BANKING

Indian banks' profitability is expected to moderate in 2025-26 due to higher delinquencies in unsecured loans and rising credit costs, according to India Ratings. Rapid financial improvement seen between 2021-2024 is likely to peak in 2024-25. Increased delinquencies in personal loans, credit cards, and microfinance will impact banks' profits, with credit growth forecast cut to 13.5% for 2024-25.

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BANKING

The Financial Intelligence Unit-India (FIU-IND) and the Insurance Regulatory and Development Authority of India (IRDAI) signed an agreement to share relevant intelligence and information from their databases. This collaboration aims to enhance the implementation of the Prevention of Money Laundering Act and its associated rules, as highlighted by the finance ministry's statement on the ongoing coordinated efforts.

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JM Financial Services Ltd. has appointed Malav Shah as Chief Legal and Compliance Officer and company secretary. Shah previously worked at NSDL and has two decades of experience in various legal and compliance roles. This move reflects the growing trend among financial institutions to strengthen their legal and compliance teams in a dynamic regulatory environment.

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BANKING

The government will review the financial and operational performance of state-run insurers. This will help decide about capital infusion. Oriental Insurance, National Insurance, and United India Insurance have solvency ratios below the required 1.50. The Insurance Amendment Bill is expected to increase competition in the sector by allowing 100% foreign direct investment.

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BANKING

Punjab & Sind Bank plans to launch an instant loan scheme for MSMEs up to Rs 25 lakh, following the success of their digital home and vehicle loan schemes. The automated, rule-based approval system aims to expedite the process and reduce manual intervention, ensuring loans can be sanctioned quickly, even on holidays.

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BANKING

IDBI Bank posted an 18% credit growth at Rs 2.06 lakh crore in the December quarter, with total deposits rising by 9% to Rs 2.82 lakh crore. Additionally, Bandhan Bank reported a 15% credit growth to Rs 1.33 lakh crore and a 20% increase in total deposits to Rs 1.40 lakh crore.

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BANKING

Ujjivan Small Finance Bank reported a rise in advances to Rs 30466 crore, despite its microfinance business shrinking. The bank's gross non-performing assets ratio increased to 2.7%. The portfolio at risk also rose, aligning with stress in the microfinance sector. The bank is reducing its microfinance weightage and increasing secured loans. Deposits grew to Rs 34496 crore.

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BANKING

Bandhan Bank's advances grew by 15% year-on-year to Rs 1.33 lakh crore by the end of December, while the overall collection efficiency dropped to 97.6%. Deposits increased by 20% year-on-year to Rs 141 lakh crore, but there was a 1.1% decline over the last three months due to reduced CASA and bulk deposits.

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Reliance Industries has secured $3 billion in a loan deal from 11 banks. The five-year loan includes $450 million in yen and will be used to refinance loans due in 2025. Major banks involved include Bank of America, DBS Bank, and HSBC. More banks may participate in the syndication later this quarter.

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BANKING

Financial services secretary M Nagaraju launched a revamped 'Baanknet' portal aimed at streamlining property e-auctions from all public sector banks. This platform consolidates e-auction properties information from PSBs, providing a one-stop destination with automated payment gateways and KYC tools, making it simpler for buyers and investors.

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BANKING

The Reserve Bank of India has approved the merger of the National Co-operative Bank Ltd., Bangalore with Cosmos Co-operative Bank Limited, to take effect from January 6, 2025. Following this, branches of NCBL will operate as Cosmos branches. Previously, RBI imposed an Rs 8.30 lakh penalty on Cosmos for violating certain regulations.

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BANKING

Financial Services Secretary M Nagaraju launches revamped 'Baanknet' portal for e-auctions. The platform consolidates assets from PSBs, simplifying property discovery for buyers and investors. It features enhanced user experiences, integrated payment systems, and training for effective use, aiding PSB recovery and economic improvement.

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BANKING

Amit Ganorkar is the new managing director and CEO of TATA AIG General Insurance Company, starting January 1, 2025, succeeding Neelesh Garg. With over two decades of experience in general insurance, Ganorkar aims to strengthen customer focus, enhance digital transformation, and drive sustainable growth.

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BANKING

In December, the banking system liquidity slipped into deficit for the first time since June 2024. Despite easing the cash reserve ratio, the RBI managed call rates through variable rate repo auctions. System liquidity has been in deficit since mid-December, and interventions in the foreign exchange market are contributing to the pressure on liquidity.

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Non-life insurers in India expect double-digit growth in 2025. Key drivers include a conducive regulatory environment and innovative products. Health insurance will likely continue leading, while segments like pet insurance, liability, and housing gain traction. Crucial factors are GST relief and updated motor third-party rates. Digital innovation will also play a significant role.

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Gold loans in India have seen significant growth by September 2024 compared to the previous year, driven by increased reliance on gold as collateral. Despite this rise, the RBI has raised concerns about irregular practices among certain entities and issued guidelines to address these issues. NBFCs remain dominant in the gold loan segment, holding 59.9% of the market.

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BANKING

Indian banks are preparing for higher compliance costs, tighter margins, and tougher fee competition, potentially affecting 2025 earnings. Operational costs may stay high despite technology use. Banks face regulatory changes needing more provisions and resources. Well-capitalized banks with reduced bad loans offer some stability but cyber fraud threats persist. Enhanced regulatory oversight increases management focus on compliance impacts.

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BANKING

Bank lending across most sectors in November showed a slowdown, except for credit to industries. Vehicle loans and credit card outstanding exhibited a significant decrease in growth. However, loans against gold increased substantially. Overall non-food credit growth slowed to 11.8 percent, highlighting varying trends in different sectors.

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