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☕๐ 28.06.2025 - Today's Banking / Financial News at a Glance ๐
๐ SBI likely to raise Rs 5,000 crore through Tier-II bonds by August, says report : India's largest lender State Bank of India (SBI) is likely to raise funds worth nearly Rs 5,000 crore through debt instruments over the next two months, news agency Reuters reported on June 27 citing people familiar with the matter, helping the shares sustain early gains of nearly a percent on a day the Bank Nifty extended its rally to record highs. The PSU lender is planning to raise funds through the issuance of Basel III-compliant tier II bonds with a 10-year or 15-year maturity, in July or August, the report said citing sources, with initial talks having begun and the duration of the bond issuance would be finalized considering the rate at the time of issuance, the report added. One source told the news agency that the 15-year bond structure could be explored with a call option at the end of 10 years. Moneycontrol couldn't independently verify the report. - moneycontrol.
๐ Central Bank of India, Generali ink shareholding deal for insurance venture : Central Bank of India (CBoI) on Friday signed a shareholding deal with Generali for an insurance venture. With this CBoI joins peer public sector banks such as State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India, and Bank of India that have insurance ventures. The bank has acquired 24.91 per cent equity stake in Future Generali India Insurance Company (FGIICL) and 25.18 per cent equity stake in Future Generali India Life Insurance Company Limited (FGILICL). “It completed the discussions with Generali Group on Definitive Documents including Shareholders, Trademark and Distribution Documents,” a statement issued by the bank said here after M. V. Rao, MD & CEO, Central Bank of India and Roberto Leonardi, Asia Regional CEO of Generali, signed the shareholding deal for the insurance venture. - Business Line.
๐ Finance Minister urges PSU banks to boost credit growth, maintain profits : Finance Minister Nirmala Sitharaman on Friday asked public sector banks (PSBs) to take advantage of Reserve Bank's jumbo 50 basis points rate cut to increase lending toward productive sectors of the economy. During a meeting to review financial performance of PSBs, Sitharaman asked their chiefs to maintain profitability momentum in FY26, sources said. Cumulative profit of 12 PSBs rose to record Rs 1.78 lakh crore in FY25, registering a growth of 26 per cent over the previous year. The year-on-year increase in profit in absolute terms was about Rs 37,100 crore in FY25. According to sources, the minister expected that PSBs credit growth should improve post 50-bps rate cut by RBI. Banks were also directed to try maintain the FY25 credit growth level or increase during the current financial year. On June 6, the RBI's six-member monetary policy committee, headed by Governor Sanjay Malhotra lowered the benchmark repurchase or repo rate by 50 basis points to 5.5 per cent. - Business Standard.
๐ PSBs’ net profit zoomed to ₹1.78 lakh cr, NPA declined to 0.52% : Public sector banks have recorded net profit of over ₹1.78 lakh cr in FY25 while non-performing assets as a percentage of advances declined to a multi year low of 0.52 per cent, Finance Ministry said on Friday. Meanwhile, Finance Minister Nirmala Sitharaman has asked banks to go for more deposit mobilisation. She chaired a meeting to review the performance of PSBs across key areas, including financial parameters, credit offtake, financial inclusion, customer service, grievance redressal, digital banking, and cyber security. In the meeting, it was noted the total business of PSBs rose to ₹251 lakh crore at the end of FY25 from ₹203 lakh crore in FY23, a Finance Ministry statement said. - Business Line.
๐ RBI tightens due diligence for Aadhaar payment operators : Reserve Bank of India (RBI) directed banks to carry out due diligence before onboarding Aadhaar Enabled Payment System Touchpoint Operators (ATOs) adopting the same process as indicated in the customer KYC issued by the regulator. Aadhaar Enabled Payment System (AePS) enables financial transactions using Aadhaar number and biometrics or OTP authentication. ATOs are individuals onboarded by the acquiring bank who operates the AePS touchpoint. In a new notification issued on Friday RBI said in cases where an ATO has not performed any financial / non-financial transaction for a customer for a continuous period of three months, acquiring bank shall carry out KYC of ATO before enabling him / her to transact further. - economic times.
๐ Axis Bank won't infuse more capital into NBFC; it will tap market : Axis Bank has committed to the Reserve Bank of India (RBI) that the lender will not infuse any new capital in its wholly owned finance company Axis Finance, Amitabh Chaudhry, CEO of the private bank, told ET. The NBFC is working on plans to raise Rs 3,000 crore, he said. This capital raise could be done by strategic sale to private equity or an initial public offering (IPO) could be explored at a later stage. The commitment to the RBI comes in the backdrop of the central bank’s draft guidelines issued last October on ‘Forms of Business and Prudential Regulation for Investments.’ The guidelines say that core lending business should be undertaken by the bank while restricting lenders and their NBFC units from duplicating similar revenue streams. - economic times.
๐ Loans to MSMEs increase to over Rs 40 lakh crore on back of policy push : India's micro, small and medium credit market expanded by a quarter to Rs 40.4 lakh crore as of March, buoyed by the combined impact of policy support, digitalisation, and a sustained push for financial inclusion, credit bureau CRIF High Mark said. Public sector banks continued to lead in micro business lending with 45% market share while private banks dominated the small and medium business segments, the credit bureau said on Thursday, unveiling a MSMEx (micro, small and medium exposure) Spotlight Report. The report captures critical shifts in credit exposure, lender trends, borrower behaviour, and sectoral distribution, highlighting the ecosystem evolving towards greater formalization and resilience.- economic times.
๐ Aditya Birla Capital Digital app hacked; digital gold worth ₹1.95 cr stolen : Hackers breached Aditya Birla Capital Digital mobile application, ABCD, and stole nearly ₹1.95 crore worth of digital gold from the accounts of 435 customers, reported The Times of India. The fraud came to light on June 9, when several users contacted the company’s call centre, reporting that their digital gold holdings had been sold without their consent. This triggered alarm within the firm and led to an internal probe by its technical team. Following the investigation, the company registered a first information report (FIR). According to ToI sources, the affected customer accounts have since been restored and balances replenished. - economic times.
๐ Deposits grew faster than credit amid cautious economic activities : Banks' deposit mobilisation increased 10.4% on-year at the end of June 13, growing faster than the credit expansion of 9.6% and leading to a fall in credit-deposit ratio for the banking system. Reserve Bank of India data showed that this is the highest deposit growth print seen so far in this fiscal, while credit growth remained in single digits since May. The credit deposit ratio stood at 77.84% as compared with 79.39% a year back. There has been a spurt in fixed deposit mobilisation by banks in the past 30 days to June 13, possibly because depositors wanted to park their idle funds with banks at higher rates anticipating deposit rate cuts. - economic times.
๐ New India Assurance gets GST demand notice of ₹2,298 crore : New India Assurance Company Ltd on Thursday said tax authorities have issued a show cause notice with a demand of ₹2,298 crore Goods and Services Tax (GST) for five financial years. The company has received a show cause notice dated June 26, 2025, from the office of Additional Commissioner, Mumbai-South, and Maharashtra state, New India Assurance Company Ltd said in a regulatory filing. The notice requires the company to show cause as to why the alleged GST demand of ₹22,98,06,74,252 for the period April 2018 to March 2023 should not be demanded from the insurer, it said. The company believes that it has a strong case on merit, it added. - Business Line.
๐ Fairfax appoints NITI Aayog CEO Amitabh Kant as senior advisor : Fairfax Financial Holdings Limited on Friday said it has appointed former NITI Aayog CEO Amitabh Kant as a senior advisor. In a statement, Fairfax said former G20 Sherpa Kant's extensive expertise in economic development, innovation and sustainable growth is expected to significantly benefit the company's long-term investment approach in India. As India is pursuing an ambitious roadmap towards becoming a developed economy by 2047, Fairfax expects many opportunities for it and its affiliates, including Fairfax India Holdings Corporation (Fairfax India) to participate and benefit from the 'Viksit Bharat' initiative, which aims to help India transition from a $4 trillion economy to a $30-plus trillion powerhouse, according to the statement. - Business Line.
๐ RBI drains $10 billion to lift short-term rates : Reserve Bank of India (RBI) drained ₹84,975 crore ($10 billion) of excess cash from the banking system in its first such operation in seven months, aiming to lift overnight borrowing costs. RBI withdrew funds via a 7-day variable rate reverse repo auction at a 5.49 per cent cutoff yield on Friday, it said in a statement. The RBI had planned to soak up ₹1 lakh crore. The move to absorb excess liquidity is likely aimed to align overnight borrowing costs with the policy rate — currently at 5.5 per cent. Overnight rates have remained below the policy rate for several months. “Liquidity will still be in surplus even after this operation,” said Ritesh Bhusari, joint general manager for treasury at South Indian Bank. “The RBI will keep liquidity in surplus of around 1.5 per cent-2 per cent of net deposits, and if it goes beyond that, they may follow up with further operations.”- Business Line.
๐ ICICI Bank to raise stake in asset management arm by up to 2% : Private sector ICICI Bank on Friday said its board has approved additional 2 per cent increase stake in its asset management arm ICICI Prudential Asset Management Company. The board of the bank on Friday approved purchase of up to 2 per cent additional shareholding in the ICICI Prudential Asset Management Company, ICICI Bank said in a regulatory filing. This purchase will primarily be towards maintaining the bank's majority shareholding in the event of grant of stock-based compensation by the company, it said. This will be subject to receipt of requisite approvals, it added. - Business Line.
๐ Sundaram Finance revises deposit interest rates effective July 1 : Sundaram Finance Ltd, the Chennai-based non-banking financial company, is revising deposit interest rates effective July 1, 2025. This is in line with RBI’s repo rate revision announced recently. Revised rates for senior citizens are 7.2 per cent for 12 months and 7.5 per cent for 24 and 36 months. Similarly for others 6.70 per cent for 12 months and 7 per cent for 24 and 36 months, says a release. The adjustments reflect Sundaram Finance Ltd’s measured response to broader economic conditions and market dynamics and is a part of its financial strategy to align with current economic trends, the release said. - Business Line.
๐ Chola MS General Insurance strengthens footprint in North India : Cholamandalam MS General Insurance Company Ltd., a joint venture between the Murugappa Group and Mitsui Sumitomo Insurance Group, on Friday announced the inauguration of its new, company-owned zonal office at the World Trade Centre, New Delhi. Set up with an investment of ₹65 crore, the new facility marks a significant step forward in Chola MS efforts to deepen its presence in North India and offer accessible, transparent, and technology-driven insurance solutions, says a release. - Business Line.
๐ India records $13.5 bn current account surplus in Q4 FY25: RBI : India posted a current account surplus of $13.5 billion or 1.3 per cent of GDP in March quarter 2024-25 as compared with $4.6 billion in the year-ago period mainly on account of surge in services exports and higher remittances, according to RBI data released on Friday. However, on annual basis, the current account was in deficit at $23.3 billion (0.6 per cent of GDP) during 2024-25, said the ‘India’s Balance of Payments during the Fourth Quarter (January-March) of 2024-25’ released by Reserve Bank of India. “India’s current account balance recorded a surplus of $13.5 billion (1.3 per cent of GDP) in Q4:2024-25 as compared with $4.6 billion (0.5 per cent of GDP) in Q4:2023-24 and against a deficit of $11.3 billion (1.1 per cent of GDP) in Q3:2024-25,” RBI said. - Business Line.
๐ Pine Labs posts ₹26.1 crore in profit in 9MFY25 : Fintech company Pine Labs has posted a net profit of ₹26.1 crore in the first nine months of FY25, compared to a loss of ₹187 crore in FY24. The draft red herring prospectus (DRHP) filed with SEBI comes ahead of its initial public offering (IPO). Revenue during the 9MFY25 period stood at ₹1,208 crore – a 23 per cent jump from ₹982 crore a year earlier. The uptick was driven largely by increased transaction processing; growth in its device-as-a-service (DaaS) rental business, and higher traction for value-added services, the company said in its filing. A key reason for the shift to profitability was the absence of share-based payment expenses that had weighed heavily on the previous year’s financials. In FY24, Pine Labs had taken a hit of ₹234 crore in ESOP-related costs. - Business Line.
๐ Banks place surplus funds amounting to ₹84,975 cr at VRRR auction : Banks placed funds amounting to ₹84,975 crore at RBI’s seven-day variable rate reverse repo (VRRR) auction on Friday against the notified amount of ₹1 lakh crore. The auction came in a bid to absorb the banking system’s surplus liquidity, which stood at ₹2,78,051 crore as on June 26th. The central bank accepted the funds from banks at the cut-off rate of 5.49 per cent, with the weighted average rate working out to 5.45 per cent. VRRR auctions are aimed at absorbing surplus liquidity in the banking system and ensuring that overnight call money rate stays closer to the repo rate. - Business Line.
๐ MFI stress erases life cover for 50 mn in FY25 : The stress in the microfinance sector led the country’s top life insurers to sharply reduce exposure to group credit life insurance, resulting in around 50 million people losing the life insurance cover in FY25, the steepest annual decline on record. The total loan disbursal by the microfinance industry declined 25% in FY25 to ₹1.12 lakh crore, the latest report of Microfinance Industry Network showed, as lenders cut back exposure and reduced the borrower base in response to rising defaults and credit stress in the sector. - financial express
๐ SBI shares rise over 1% as CLSA maintains outperform call; sees 32% upside : Shares of State Bank of India gained over a percent to Rs 809 in morning trade on June 27 after CLSA maintained an outperform rating on the lender, citing the bank's strong positioning in the coming quarters. With a target price of Rs 1,050 per share, the brokerage implies an upside potential of 32 percent from the last close of Rs 797 per share on the NSE. SBI has continued to gain market share for the fourth consecutive year, not only from PSU peers but also from some private sector banks. While deposit growth was modest, its CASA performance outpaced that of peers, CLSA said. Further, India's largest state lenders' asset quality remains strong, with an improvement in gross slippage ratio in FY25—something only a few banks have achieved. - moneycontrol.
๐ Sensex, Nifty close firmer on foreign fund inflows, buying in blue-chips : Sensex, Nifty, Share Prices : Equity benchmark indices Sensex and Nifty advanced for the fourth straight session on Friday, supported by buying in blue-chips ICICI Bank and Reliance Industries, amid fresh foreign fund inflows. A strengthening rupee against the US dollar and softening crude oil prices in international markets also boosted investor confidence, according to traders. The BSE Sensex climbed 303.03 points or 0.36 per cent to reclaim the 84,000 level and settle at 84,058.90. During the day, it jumped 333.48 points or 0.39 per cent to 84,089.35. On similar lines, the 50-share NSE Nifty rose 88.80 points or 0.35 per cent to 25,637.80. - Business Line.
๐ Rupee rises 24 paise to close at 85.48 against US dollar : The rupee rose 24 paise to close at 85.48 (provisional) against the greenback on Friday on the back of strong FII inflows and firm domestic equity markets. Foreign institutional investors (FIIs) purchased equities worth ₹12,594.38 crore on a net basis on Thursday, according to exchange data. At the interbank foreign exchange, the rupee opened at 85.50 against the dollar and traded in the range of 85.43-85.65 before settling at 85.48 (provisional), up 24 from its previous close. The local unit rose 36 paise to close at 85.72 against the US dollar on Thursday. - Business Line.
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