Banking

State Bank of India (SBI), the country’s largest lender, is urging the government to introduce a dedicated credit guarantee framework for emerging industries such as electric mobility, renewable energy, deep-tech, and digital-first enterprises. With new-age sectors rapidly expanding yet often lacking traditional collateral structures, SBI aims to reduce lending risk while enabling greater capital flow to high-growth industries.

Credit rating agency ICRA has revised its bank credit growth projection for FY26, reflecting renewed optimism driven by robust economic activity, healthy corporate balance sheets, and rising retail loan demand. The agency expects India’s banking sector to maintain a strong lending trajectory, supported by stable asset quality and improved capital positions.

India’s central bank has raised concerns over a recent spike in digital payment frauds, highlighting the growing sophistication of cybercriminals targeting online transactions. Reserve Bank of India (RBI) Deputy Governor M. Rajeshwar Rao revealed that cases of financial fraud have increased noticeably since July, prompting regulatory attention toward strengthening digital security frameworks. The warning underscores the risks accompanying India’s rapid shift to cashless payments, as millions of new users embrace UPI, online banking, and digital wallets.

City Union Bank Ltd. (CUB) reported a 15% year-on-year (YoY) increase in net profit for the second quarter of FY25, reaching Rs 329 crore, driven by healthy loan growth and improved asset quality. The bank’s net interest income (NII) rose modestly, supported by steady margins despite a competitive lending environment. Strong advances in the retail and MSME segments, along with effective cost management, contributed to the bottom-line expansion.

HDFC Bank has extended the tenure of Kaizad Bharucha as its Deputy Managing Director (DMD), reinforcing stability within its top leadership team amid ongoing integration and expansion efforts. Bharucha, a veteran banker with more than three decades of experience, has played a pivotal role in the bank’s risk management, corporate banking, and compliance operations. His reappointment comes as HDFC Bank continues to strengthen its governance framework and sustain growth momentum following its merger with HDFC Ltd.

India is on track to transition from a developing to a developed market, driven by rapid economic expansion, financial sector reforms, and digital innovation, according to Reserve Bank of India (RBI) Deputy Governor M. Rajeshwar Rao. Speaking at an economic policy forum, Rao emphasized that India’s strong macroeconomic fundamentals, resilient banking system, and inclusive digital transformation are laying the groundwork for sustainable long-term growth.

Kotak Mahindra Bank posted a 3% decline in its second-quarter profit, registering Rs 3,253 crore compared to the previous year, reflecting pressures from higher operating costs and macroeconomic headwinds. Net interest income grew modestly, but elevated provisions and cautious lending strategies impacted overall profitability. The bank continues to focus on retail lending, digital expansion, and risk management to sustain long-term growth.

SBI Cards and Payment Services Ltd. (SBI Card) posted a 10% year-on-year increase in net profit to Rs. 445 crore for the quarter ended September 2025, driven by higher card spending and improved interest income. The company’s total revenue rose on the back of strong credit card usage, expanding customer base, and consistent growth in revolving balances. Despite competitive pressures and rising finance costs, SBI Card maintained a steady asset quality profile.

Yes Bank reported an 18.3% year-on-year increase in net profit for the second quarter of FY2024–25, reaching Rs. 654 crore, driven by robust growth in retail and SME lending, improved asset quality, and disciplined cost management. The private sector lender’s net interest income (NII) and fee-based income strengthened, reflecting increased customer engagement and expanded loan portfolios. Proactive provisioning and a focus on digital banking initiatives supported operational efficiency.

HDFC Bank, India’s largest private-sector lender, reported a 10% year-on-year rise in consolidated net profit to Rs. 19,610 crore for the second quarter of FY2024–25, reflecting sustained loan growth, stable asset quality, and efficient cost management. The bank’s performance was underpinned by robust retail lending, steady deposit accretion, and effective balance sheet management. Despite a competitive interest rate environment, HDFC Bank maintained its net interest margin (NIM) and continued to strengthen its digital and rural banking footprint.