Real-time market updates from India's financial markets and global sources.
15 articles
IRDAI Chairman Ajay Seth said the regulator is examining industry feedback on a consultation paper that is open until October 25, while maintaining that distribution costs must be aligned with the value delivered to the policyholder, and selling incentives must reward persistency rather than first-year sales.
Banking/Finance-Industry-Economic Times
A report by IIT-Bombay professors recommends reducing the Merchant Discount Rate for UPI transactions to improve the ecosystem. The current rate of 0.40 percent should decrease to 0.08 percent for third-party application providers. Additionally, the study suggests that banks should not depend on transaction fees but use funds from CASA deposits. It emphasizes the development of necessary services to enhance trust in digital payments.
Banking/Finance-Industry-Economic Times
The report cautioned that public trust in UPI could be undermined if the proposed MDR framework is implemented in its present form, stressing the need to ensure that the digital payments platform does not attract negative sentiment among users.
Banking/Finance-Industry-Economic Times
DBS Bank CEO Tan Su Shan addressed concerns about capital outflows from India and highlighted strong demand for FCNR(B) deposits. She emphasized the need for more foreign direct investment and exports to support the rupee's stability. Tan expressed optimism about India's potential in artificial intelligence due to its software talent and digital infrastructure developments. The importance of improving hardware capabilities alongside software strengths was also noted in her discussion.
Banking/Finance-Industry-Economic Times
PNB Housing Finance anticipates a minor enhancement in net interest margin due to the Reserve Bank's recent rate hike. The lender's margin improvement is expected to be between 5 to 8 basis points and will benefit customers through cheaper loans. The company is also experiencing positive demand momentum in the housing finance sector. Additionally, PNB Housing Finance has received a credit rating upgrade to AAA/Stable from Crisil.
Banking/Finance-Industry-Economic Times
Indian lenders have requested clarification from the Reserve Bank of India regarding new currency-supporting measures. They seek guidance on calculating the foreign exchange risk reserve and its impact on liquidity ratios. Additionally, banks are uncertain about cost transmission to customers and how exposure limits are assessed. Clarifications on the treatment of cash reserves and their classification as high-quality liquid assets have also been requested.
Banking/Finance-Industry-Economic Times
CreditAccess Grameen is in the process of securing a $175 million loan from several international lenders. This funding will help enhance the company's liability profile and is essential for financial management. The company intends to raise a significant portion of its annual borrowing requirements through external commercial borrowings. Financial officials noted that current hedging costs are rising but manageable overall.
Banking/Finance-Industry-Economic Times
HDFC Bank announced the launch of its annual festival offer, with thousands of deals across various services to provide customers with affordable shopping offers. The intitiative would allow customers to save up to ₹70,000 on festive purchases made using HDFC Bank credit cards and EASYEMI on debit and credit cards. The offer covers Xpress Personal Loans, Xpress Car Loans, and other vehicle loans, home loans, and gold loans.
Banking/Finance-Industry-Economic Times
The Reserve Bank of India has implemented fresh regulations that drastically reduce the maximum limit for dollar forward transactions by corporates from $100 million to just $5 million, imposing more stringent documentation requirements. To ease compliance, companies may consider classifying contracted exposures as anticipated exposures. This regulatory shift aims to enhance management of exchange rate risks in light of volatile market conditions, sparking ongoing industry dialogues about its practical impacts.
Banking/Finance-Industry-Economic Times
DBS Bank CEO Tan Su Shan emphasized the strong demand for FCNR(B) deposits as investor confidence in India. She highlighted India's potential for foreign direct investment and its advantageous position in the artificial intelligence sector. Despite foreign net sales affecting the rupee, she remains optimistic about India's economic growth and digital infrastructure. Tan discussed the importance of promoting FDI and exports to stabilize currency levels.
Banking/Finance-Industry-Economic Times
The Reserve Bank of India will raise the minimum daily cash reserve ratio requirement to 99% from 90%. This change will take effect from mid-October, specifically the fortnight starting October 16, 2026. Banks will be required to maintain this increased percentage without the previous operational flexibility. The move aims to reduce the current surplus liquidity within the banking system.
Banking/Finance-Industry-Economic Times
Ageas Federal Life Insurance has launched its first GIFT City product, a multi-currency ULIP that lets customers invest in US dollars, euros or pounds while receiving life cover. The Aurum Advantage Plan is open to customers of any nationality, including NRIs, OCIs and PIOs, with a minimum investment of $3,000, €3,000 or £3,000.
Banking/Finance-Industry-Economic Times
V Anantha Nageswaran emphasized the need to revise non-performing asset classification norms for micro, small and medium enterprises. He highlighted that existing norms do not consider diverse cash flow cycles and working capital requirements. The Chief Economic Advisor pointed out that a uniform global framework is unsuitable for India’s business practices. Additionally, he suggested reducing compliance costs for MSMEs to improve their operational efficiency.
Banking/Finance-Industry-Economic Times
Higher crude oil prices and drought conditions in five states may impact Indian banks' asset quality outlook. This follows a stable credit cost scenario for private and public sector banks. The report suggests monitoring external factors affecting borrowers' repayment capacity. While deposit growth has improved, there are risks to profitability and net interest margins. Investors are advised to keep an eye on these developments in the coming quarters.
Banking/Finance-Industry-Economic Times
According to a report by Emkay Research, Indian banks might report a 25.4 percent year-on-year increase in net profit. Higher foreign currency deposits could exert pressure on lending margins, impacting profitability. Loan growth remains healthy, contributing to income increases and reduced provisions for loan losses. Overall banking system growth is anticipated to moderate as FCNR-B funding normalizes.
Banking/Finance-Industry-Economic Times
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