Banking - The Purbottar

08 Sep

S&P Rates Bank of India ‘BBB’, Cites Solid Funding and Government Support

nanika EditorBanking

S&P Global Ratings has assigned Bank of India (BoI) a ‘BBB’ long-term issuer credit rating and an ‘A-2’ short-term rating, citing the bank’s adequate capitalisation, solid funding and healthy liquidity. The ratings agency said the long-term rating is one notch above BoI’s stand-alone credit profile, reflecting the likelihood of extraordinary government support if required. S&P highlighted BoI’s important role as a public sector bank in promoting financial inclusion and noted that majority government ownership and control provide strong links between the bank and the government. The agency said the bank’s solid deposit base, supported by customer confidence in its government…

03 Sep

GIFT IFSC Sees Sharp Rise in Foreign Currency Financing

nanika EditorBanking

Indian banks operating through International Banking Units (IBUs) at GIFT City’s International Financial Services Centre (IFSC) have sanctioned loans worth $54.02 billion under the Reserve Bank of India’s swap facility for FCNR(B) deposits as of August 31, 2026. The amount has risen sharply from $4.1 billion sanctioned by 14 IBUs on July 15, reaching $18.87 billion by July 31 and accelerating to $54.02 billion by the end of August, with 20 IBUs now participating in the scheme. The rapid increase highlights growing demand for foreign currency funding through GIFT IFSC and the expanding role of its financial services infrastructure. IBUs…

21 Aug

Fairfax Weighs CSB Bank Sale or Merger Ahead of IDBI Deal

nanika EditorBanking

Canada’s Fairfax Financial, a frontrunner for acquiring the government and LIC’s stake in IDBI Bank, may be given up to two years to consolidate its existing banking interests in India, according to sources. The proposed transaction, valued at more than $5 billion, would be the largest foreign investment in an Indian bank and is currently in the final stages of approval. Under Reserve Bank of India rules, an entity cannot own and operate two separate banks. Fairfax owns around 40% of CSB Bank, creating a regulatory requirement if it acquires control of IDBI Bank. Sources said Fairfax could either sell…

14 Aug

ICICI Bank Taps International Debt Markets with Massive $1.45B Deal

nanika EditorBanking

ICICI Bank Ltd. has launched a $1.45 billion syndicated offshore loan, joining a growing wave of Indian lenders tapping international debt markets to benefit from lower hedging costs. The nation’s second-largest private bank initially signed a $1 billion agreement with Bank of America Corp. and is now expanding the four-year deal—priced at a margin of 110 basis points over SOFR—to lenders including Mizuho Bank, Mashreqbank, and United Overseas Bank. This borrowing follows ICICI Bank’s $1 billion five-year bond sale last month, its first international issuance in nearly a decade, alongside talks for an additional $500 million in offshore bonds. The…

04 Aug

Banks Step Up Foreign Currency Deposit Drive as RBI Swap Scheme Nears Deadline

nanika EditorBanking

HDFC Bank, India’s largest private sector lender, has increased the interest rate on its three- to five-year Foreign Currency Non-Resident (Bank) [FCNR(B)] dollar deposits by 25 basis points to 6.25 per cent from 6 per cent. The revised rate came into effect from August 1 as banks step up efforts to attract foreign currency deposits under the Reserve Bank of India’s (RBI) concessional swap scheme. The rate hike comes at a time when the RBI’s special swap window is entering its final two months, a period expected to witness increased mobilisation of FCNR(B) deposits. Banks are focusing on attracting overseas…

28 Jul

India Moves Towards Polymer Currency as RBI Plans New Banknote Trials

nanika EditorBanking, Business

The Reserve Bank of India (RBI) has received approval from the government to issue 1 billion pieces each of ₹10 and ₹20 polymer banknotes for field trials, Minister of State for Finance Pankaj Chaudhary informed Parliament on Monday. The proposal, submitted by the RBI’s Central Board under Section 25 of the Reserve Bank of India Act, 1934, aims to evaluate the performance of polymer banknotes before their regular issuance in these denominations. The government has approved the proposal, and wider circulation will begin after successful completion of the trials. The minister clarified that polymer banknotes will be issued alongside existing…

20 Jul

Punjab National Bank Relies on CD Ratio Cushion Amid Loan Growth

anuprova EditorBanking

Punjab National Bank (PNB) has said it will not aggressively pursue deposit mobilisation despite loan growth continuing to outpace deposit growth. The state-owned lender believes its current credit-deposit (CD) ratio provides sufficient room to support future lending without creating funding pressure. Speaking after the bank announced its financial results for the first quarter of FY2026-27, Managing Director and Chief Executive Officer Ashok Chandra said PNB remains well-positioned to sustain credit expansion while maintaining financial stability.During the April-June quarter, PNB recorded credit growth of 12.7 per cent, compared with deposit growth of 8.5 per cent. Despite the difference, the bank’s CD…

06 Jul

RBI Forex Measures Prompt Banks to Cut Certificate of Deposit Issuance

nanika EditorBanking

Indian banks have begun reducing their reliance on short-term debt instruments as the Reserve Bank of India’s recent measures to attract foreign-currency deposits provide a cheaper and more stable source of funding. According to data from The Clearing Corporation of India Ltd, lenders did not issue any certificates of deposit (CDs) maturing within one year in the three trading sessions ending July 2. This follows a broader slowdown in issuance, with banks raising ₹70,800 crore between June 16 and June 29, compared with about ₹1 trillion in the first half of the month. Market participants expect the trend to continue…

01 Jul

RBI Report Highlights Banking Strength While Warning of Emerging Cyber Risks

nanika EditorBanking

India's banking sector has achieved a significant milestone, with gross non-performing assets (NPAs) falling to a multi-decade low of 1.8 per cent as of March 31, 2026, according to the Reserve Bank of India's latest Financial Stability Report (FSR). The report states that the country's financial system remains resilient, supported by strong balance sheets across banks and non-banking financial institutions despite ongoing global economic uncertainties. The RBI noted that India's sound macroeconomic fundamentals have strengthened its ability to withstand external shocks better than many other economies. While global financial markets have remained largely stable despite geopolitical tensions, the central bank…

25 Jun

RBI to Remain Data-Driven, Keeps Door Open on Rate Stability

nanika EditorBanking

The Reserve Bank of India (RBI) is not in a hurry to raise interest rates amid ongoing uncertainty over the inflation outlook, Governor Sanjay Malhotra has said, indicating a cautious and data-driven approach to monetary policy. Speaking to a television news channel, Malhotra said it was “premature” to discuss any immediate tightening of policy and stressed that the Monetary Policy Committee (MPC) would have shifted its stance if rate hikes were imminent. He added that the central bank’s decision to retain a neutral stance reflected elevated economic uncertainty. His comments come at a time when global crude oil prices have…