Banking
Falling NII hurts private banks' profit growth, public peers do better
Private sector banks experienced a decline in net profit for the second consecutive quarter due to dwindling net interest income, while public sector banks continued their double-digit growth. Overall net profit growth for the sampled banks slowed to a four-and-a-half-year low, reflecting a deceleration in net interest income, which saw its first drop in over five years.
Banks sense an opportunity in GST gain for retail, MSME
Recent GST reforms, coupled with a good monsoon and improved liquidity, are poised to stimulate credit demand, particularly in retail and MSME sectors. Reduced tax rates and simplified compliance are expected to boost consumption, ease working capital pressures, and drive loan disbursements, benefiting banks and NBFCs.
PNB signs Rs 21,000 cr MoU with Rajasthan govt under Rising Rajasthan initiative
Punjab National Bank (PNB) has committed Rs 21,000 crore to Rajasthan's Rising Rajasthan initiative, aiming to boost socio-economic progress through its extensive network and digital resources. During a visit to Jaipur, PNB's MD & CEO, Ashok Chandra, distributed 2,000 loan sanction letters to women entrepreneurs and emphasized digital adoption, financial inclusion, and fraud prevention.
Festive-season boost: Rate-cut transmission to get a push as banking gets Rs 62,000 cr
The banking system is set to receive a liquidity boost of ₹62,000 crore with the first phase of the CRR cut taking effect, injecting funds ahead of the festive season. This move aims to improve monetary transmission and stimulate economic activity, potentially leading to lower deposit and lending rates.
Bankers say GST Council decision to boost consumption, credit growth
Bankers anticipate that the GST Council's recent decisions, including reduced tax rates on various goods, will significantly boost consumption and credit expansion. This reform, effective September 22, 2025, is expected to increase disposable incomes, stimulate demand across sectors like retail and agriculture, and ultimately drive substantial economic growth. Businesses will also benefit from simplified compliance and improved competitiveness.
More trouble at IndusInd Bank, ex-CFO seeks removal of board chairman
In a letter to the Prime Minister dated August 26, a copy reviewed by ET, former CFO of IndusInd Bank claimed that he uncovered serious issues in treasury operations that had persisted for more than a decade. Jain said he was the only executive to detect the lapses and had fought a “lone battle” to highlight them.
Citibank appoints Kaustubh Kulkarni as co-head of investment banking for Asia-Pacific
Citibank has appointed Kaustubh Kulkarni as co-head of investment banking. He will oversee operations in Japan, North Asia, Australia, and South Asia. Kulkarni will join from JPMorgan. He will be based in Singapore. Vikram Chavali and Deepak Dangayach have also been appointed to key roles. Citi's investment banking revenues increased by 15% in the second quarter.
JPMorgan to boost corporate banking in India on investment jump
JPMorgan's focus is on electric vehicles, data centers and solar energy sectors. These industries are increasing capital spending. JPMorgan sees India and Japan as its fastest-growing Asian markets. The bank expects continued growth despite tariff concerns. They aim to grow revenue by 30% annually. The expansion includes increasing domestic headcount.
Public sector banks race ahead of private lenders in home loan market in April-June: report
Public sector banks increased their home loan market share during April-June. This happened even with higher stress. Private banks' share decreased. Public sector banks have higher delinquencies in home loans. New credit card issuances declined. Private banks issued more new credit cards. Unsecured lending growth moderated. Lenders are balancing expansion with stability. The report highlights risk management and regulatory vigilance.
CCI approves SMBC's stake buy in Yes Bank
The Competition Commission of India on Tuesday approved Japanese company Sumitomo Mitsui Banking Corporation's stake purchase in Indian lender Yes Bank .
Must Watch
RBI clears reappointment of former Deputy Governor R Gandhi as Yes Bank chairman
Yes Bank announced that the Reserve Bank of India (RBI) has approved the reappointment of R Gandhi, former RBI Deputy Governor, as the part-time non-executive chairman. His term will extend from September 20, 2025, to May 13, 2027. Gandhi, a seasoned central banker with 37 years of experience, previously served as RBI Deputy Governor from 2014 to 2017.
IndusInd Bank appoints Pragati Gondhalekar as Head – Internal Audit, Senior Management Personnel
IndusInd Bank has appointed Mrs. Pragati Gondhalekar as Head – Internal Audit and Senior Management Personnel, effective September 1, 2025. With over 27 years of global audit and consulting experience, she has previously held senior roles at Deutsche Bank, L&T Financial Services and PwC.
Banks step up checks on deposit accounts to thwart mules
Banks are grappling with a surge in fraud linked to deposit accounts, surpassing loan accounts in risk. The rise of mule accounts used for money laundering has prompted stricter KYC processes and enhanced transaction monitoring. The RBI's MuleHunter.AI initiative and increased staff training aim to combat this growing threat, as banks balance customer acquisition with fraud prevention.
Govt weighs special courts to fast-track bank fraud cases
The government is considering establishing special courts to expedite the resolution of bank fraud cases, with discussions underway between the law and finance ministries and banks. This move aims to accelerate disposal, improve financial recovery, and reduce legal costs for lenders. Recent data reveals significant fraud cases reported by banks, prompting the need for a faster judicial mechanism.
Deutsche Bank puts India retail banking business up for sale, sources say
Deutsche Bank is considering selling its Indian retail banking assets, encompassing 17 branches, as part of a broader strategy to enhance profitability. The bank has invited bids from both domestic and international lenders, setting an August 29 deadline for initial offers. This move aligns with Deutsche Bank's plan to reduce its retail workforce and branch network globally.
UPI sets remarkable new volume milestone in August
Unified Payments Interface transactions have surpassed 20 billion in August. Data from the National Payments Corporation of India shows a rise in volume and value. Transaction amount registered a growth of 21 percent. Volume grew by 34 percent. UPI now accounts for 85 percent of India's digital transactions. It is live in seven countries, including France, marking its European entry.
BANKING STOCKS
NSEBSE
| Company Name | Latest | Change | %Change | Volume |
|---|---|---|---|---|
| HDFC Bank Ltd. | 966 | 2.61 | 0.27 | 11711290 |
| ICICI Bank Ltd. | 1402.7 | -0.1 | -0.01 | 5880943 |
| State Bank of India | 808.8 | 2.2 | 0.28 | 4614227 |
| Kotak Mahindra Bank Ltd. | 1950.1 | 4.6 | 0.24 | 2505558 |
| Axis Bank Ltd. | 1055.5 | -0.41 | -0.04 | 2260147 |
