Latest News on State Bank of India
After a 5-year decline, state-run banks see a surge in employee numbers, while private banks experience a 0.9% workforce reduction
The Indian banking sector has seen a shift in employee counts, with public sector banks adding 13,179 employees to reach 9,70,437 in FY25, while private banks saw a 0.86% drop to 8,38,150 employees. State-run banks, which had earlier focused on consolidation and improving balance sheets, have now started to expand their headcount. The largest public sector bank, State Bank of India (SBI), added 3,930 employees to reach 2,36,226 in FY25. SBI plans to hire 18,000 more employees in FY26, including 13,500 clerical posts and 3,000 probationary officers.
The government’s consolidation efforts, which began in 2017 with the merger of five associate banks with SBI, have continued with the merger of 12 banks into four larger entities in 2020. There are talks of a third wave of mergers to reduce the total number of banks to four core anchors. Recently, SBI hired over 1,000 probationary officers and plans to continue hiring.
Among other public sector banks, Punjab National Bank added 397 employees to reach 1,02,746, while Central Bank of India saw a marginal uptick in employee count to 33,081. However, Bank of Baroda and Canara Bank saw a decline in employee count. In the private sector, ICICI Bank saw a significant decline of 7.13% in employee count to 1,30,957, while HDFC Bank added 994 employees to reach 2,14,521. Axis Bank added 121 employees to reach 1,04,453.
The overall headcount in the banking system rose to 18,08,587 from 17,87,566 in FY24. Foreign banks’ employee count stood at 28,041, while small finance banks had 1,77,797 employees, with AU Bank being the largest employer with 50,946. The payments banks had 6,958 employees. The banking sector’s employee count is expected to continue to evolve with the ongoing consolidation and technological advancements.
Top FD Options for Seniors: Earn Up to 8% Interest Annually with These High-Yielding Fixed Deposits – View Complete List on Goodreturns
Best Fixed Deposits for Senior Citizens: Earn Up to 8% Annual Return
As a senior citizen, it’s essential to invest in a secure and stable financial instrument that provides a regular income stream. Fixed Deposits (FDs) are an excellent option, offering a fixed return on investment with minimal risk. Here’s a list of the best FDs for senior citizens, providing up to 8% annual return.
Top Banks Offering High-Return FDs for Senior Citizens
Several banks in India offer attractive interest rates on FDs for senior citizens. Some of the top banks include:
- Yes Bank: Offers 7.50% interest rate for 3-4 year tenure and 7.25% for 2-3 year tenure.
- IndusInd Bank: Provides 7.40% interest rate for 3-4 year tenure and 7.20% for 2-3 year tenure.
- Kotak Mahindra Bank: Offers 7.30% interest rate for 3-4 year tenure and 7.10% for 2-3 year tenure.
- HDFC Bank: Provides 7.25% interest rate for 3-4 year tenure and 7.00% for 2-3 year tenure.
- ICICI Bank: Offers 7.20% interest rate for 3-4 year tenure and 6.95% for 2-3 year tenure.
Other Banks Offering Attractive FD Rates
In addition to the above-mentioned banks, other financial institutions also offer competitive interest rates on FDs for senior citizens. These include:
- Bajaj Finance: Offers 8.00% interest rate for 3-4 year tenure.
- Mahindra Finance: Provides 7.80% interest rate for 3-4 year tenure.
- SBI: Offers 7.10% interest rate for 3-4 year tenure.
- Axis Bank: Provides 7.05% interest rate for 3-4 year tenure.
Key Benefits of FDs for Senior Citizens
Fixed Deposits offer several benefits for senior citizens, including:
- Guaranteed Returns: FDs provide a fixed return on investment, ensuring a regular income stream.
- Low Risk: FDs are a low-risk investment option, making them ideal for senior citizens.
- Flexibility: FDs offer flexible tenure options, allowing senior citizens to choose the investment period that suits their needs.
- Tax Benefits: Interest earned on FDs is taxable, but senior citizens can claim a deduction of up to Rs. 50,000 under Section 80TTB.
In conclusion, senior citizens can earn up to 8% annual return on their investments by opting for the best FDs offered by various banks and financial institutions. It’s essential to compare the interest rates and tenure options before making an investment decision.
India Plans to Consolidate State-Run Banks in Next Phase of Mergers, Aiming to Create Lenders of Global Proportions
The Government of India is preparing for the next round of consolidation of public sector banks (PSU banks) with the goal of creating large, globally competitive lenders. The aim is to support India’s long-term economic ambitions and achieve the vision of a developed India by 2047. Finance Minister Nirmala Sitharaman has emphasized the need for several large, world-class banks to raise capital, compete globally, and finance large infrastructure and development projects.
Currently, India has 12 public sector banks, with the State Bank of India (SBI) being the largest, ranking 43rd among the world’s top 50 banks. PSU banks account for nearly 60% of the country’s total banking business, making them strategically important in India’s financial system. The government is considering merging small and mid-sized PSU banks with larger lenders, with banks such as Indian Overseas Bank, UCO Bank, and Bank of Maharashtra potentially being merged with larger banks like SBI, Punjab National Bank, or Bank of Baroda.
This is not the first round of consolidation in the Indian banking sector. Since 2017, the number of PSU banks has decreased from 27 to 12 through a series of mergers. Key mergers include the merger of United Bank of India and Oriental Bank of Commerce with Punjab National Bank, and the merger of Dena Bank and Vijaya Bank with Bank of Baroda. SBI has also absorbed five associate banks and Bharatiya Mahila Bank, expanding its balance sheet and branch network.
In addition to consolidation, the government is also progressing with the strategic disinvestment of IDBI Bank. The Department of Investment and Public Asset Management (DIPAM) Secretary has indicated that the transaction is expected to be completed by March 2026. The government had sold a 51% stake in IDBI Bank to LIC in 2019, and the remaining stake is now slated for sale to private investors. The goal of these efforts is to create a stronger and more competitive banking sector that can support India’s economic growth and development.
Stock Market Updates of State Bank of India
Recent Updates
Among the prominent banks are SBI, HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra, and Bank of Baroda.
Several major Indian banks have announced changes to their fixed deposit (FD) interest rates, affecting customers who invest in these instruments. The changes vary by bank and tenure, but overall, they offer returns ranging from 5.9% to 6.95% for different terms.
State Bank of India (SBI), the country’s largest lender, has been offering 6.25% returns on FDs with a tenure of one year to less than two years, and 6.40% for two to less than three years. Senior citizens receive higher returns, with 6.75% on one-year to two-year FDs and 6.90% on two-year to less than three-year FDs. These changes took effect on December 15.
HDFC Bank, another major player, introduced new interest rates on December 17. The bank offers 6.25% for one-year tenures, 6.35% for 15 months to less than 18 months, and 6.45% for two years. Senior citizens are eligible for 6.75% on one-year tenures and 6.95% on two-year tenures.
Axis Bank also revised its FD interest rates, effective December 26. The bank now offers 6.25% for one-year tenures and 6.45% for two years. Senior citizens can earn 6.75% on one-year FDs and 6.95% on two-year FDs.
Canara Bank has also revised its interest rates, with a new rate of 5.9% for FDs with a maturity period of one year to 15 months. Senior citizens, however, can earn 6.40% for the same period.
These changes reflect the ongoing evolution of the Indian banking sector, with lenders adjusting their interest rates to stay competitive and respond to market conditions. Customers can take advantage of these revised rates to maximize their returns on fixed deposits, depending on their individual investment goals and preferences. It is essential for investors to review the updated interest rates and terms offered by each bank to make informed decisions about their investments.
Senior citizens can earn up to 8% interest rate for a 3-year investment; check the complete list of participating banks.
For senior citizens investing for a period of three years, several banks are offering a fixed deposit (FD) rate of up to 8%. This is a significant incentive for seniors who are looking to grow their savings while minimizing risk.
The banks offering these high FD rates for senior citizens include major players in the banking industry. Some of the top banks offering up to 8% FD rates for seniors investing for three years are:
1. Bank of Baroda: Offering 7.75% to 7.95% interest rates for senior citizens, depending on the deposit amount and tenure.
2. Canara Bank: Providing 7.75% to 7.9% interest rates for senior citizens, with varying rates based on deposit amount and tenure.
3. Indian Bank: Offering 7.75% interest rate for senior citizens, with higher rates applicable for larger deposits.
4. Punjab National Bank: Giving 7.75% to 7.9% interest rates for senior citizens, depending on the deposit amount and tenure.
5. State Bank of India (SBI): Offering 7.6% to 7.8% interest rates for senior citizens, with varying rates based on deposit amount and tenure.
6. ICICI Bank: Providing 7.75% to 7.9% interest rates for senior citizens, with higher rates applicable for larger deposits and longer tenures.
7. HDFC Bank: Offering 7.75% to 7.9% interest rates for senior citizens, with varying rates based on deposit amount and tenure.
These high FD rates can help senior citizens earn substantial interest on their deposits, ensuring a steady income stream during their retirement years. It’s essential to note that the interest rates may vary depending on the bank, deposit amount, and tenure chosen.
Before investing, senior citizens should carefully review the terms and conditions of the FD, including any penalties for early withdrawal and the minimum deposit requirements. They should also consider their individual financial goals, risk tolerance, and liquidity needs before making a decision.
It’s worth mentioning that senior citizens can also explore other investment options, such as senior citizen savings schemes, provident funds, and pension plans, which may offer higher returns and additional benefits. However, FDs remain a popular choice for seniors due to their low-risk nature and fixed returns.
In conclusion, the high FD rates offered by banks for senior citizens can be an attractive option for those looking to grow their savings over a three-year period. Seniors should carefully evaluate the various options available, considering their individual financial needs and goals, before making an informed investment decision.
Tamilnad Mercantile Bank Names Visvanathan Srinivasan as New Additional Director, Reports scanx.trade
Tamilnad Mercantile Bank (TMB) has announced the appointment of Visvanathan Srinivasan as an Additional Director on its Board, effective from March 25, 2023. This development is part of the bank’s efforts to strengthen its leadership and governance structure.
Visvanathan Srinivasan is a seasoned banker with over three decades of experience in the financial services industry. He has held various leadership positions in prominent banks, including State Bank of India (SBI) and Axis Bank. His expertise spans across areas such as corporate banking, risk management, and compliance.
During his tenure at SBI, Srinivasan played a key role in shaping the bank’s corporate banking strategy and was instrumental in driving business growth. He also served as the Chief Risk Officer at Axis Bank, where he was responsible for overseeing the bank’s risk management framework.
The appointment of Srinivasan as Additional Director is expected to bring significant value to TMB’s Board. His extensive experience and expertise in banking will enable the bank to leverage his insights and guidance to drive business growth, improve risk management, and enhance overall governance.
TMB’s Chairman, K Venkatramanan, welcomed Srinivasan’s appointment, stating that his experience and expertise would be invaluable to the bank. The bank’s Managing Director and CEO, S Krishnan, also expressed his enthusiasm about Srinivasan’s joining, saying that his presence would strengthen the bank’s leadership team.
The appointment of Srinivasan is also seen as a positive move by TMB to enhance its governance and leadership structure. The bank has been focusing on strengthening its board composition, with a mix of experienced professionals and independent directors.
With Srinivasan’s appointment, TMB’s Board now comprises 11 members, including 6 independent directors. The bank’s Board is chaired by K Venkatramanan, and the Managing Director and CEO is S Krishnan.
TMB is a private sector bank with a strong presence in Tamil Nadu and other parts of India. The bank has been expanding its operations and has a network of over 500 branches and 900 ATMs. With Srinivasan’s appointment, the bank is expected to further strengthen its position in the banking industry and drive growth in the coming years. Overall, the appointment of Visvanathan Srinivasan as Additional Director is a significant development for TMB, and his expertise and experience are expected to contribute to the bank’s growth and success.
Budget Announcement on PSU Bank Consolidation: Expectations for IOB, UCO, BOI, BOM, and Central Bank Merger Plans
The Indian government is expected to make significant announcements regarding the merger of Public Sector Banks (PSBs) in the upcoming budget. The merger of banks such as Indian Overseas Bank (IOB), UCO Bank, Bank of India (BOI), Bank of Maharashtra (BOM), and Central Bank of India is anticipated to be a key aspect of the budget.
The government’s plan to merge PSBs aims to create larger and more efficient banks, which can compete with private sector banks. The merger is expected to lead to improved financial health, increased lending capabilities, and enhanced customer services. Additionally, the merger will help in reducing the number of PSBs, making them more manageable and allowing for better allocation of resources.
The merger of IOB, UCO, BOI, BOM, and Central Bank is seen as a significant step towards consolidation in the banking sector. The government has already merged several PSBs in the past, resulting in the creation of larger banks such as State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank. The upcoming merger is expected to further strengthen the banking sector and improve its overall performance.
The budget announcement is expected to provide details on the merger, including the timeline, structure, and benefits for customers and employees. The government may also announce measures to support the merged banks, such as capital infusion, rationalization of branches, and implementation of new technologies. The merger is likely to have a significant impact on the banking sector, and the budget announcement will be closely watched by stakeholders, including customers, employees, and investors.
In recent years, the government has taken several steps to strengthen the banking sector, including the implementation of the Insolvency and Bankruptcy Code (IBC) and the establishment of the National Company Law Tribunal (NCLT). The merger of PSBs is seen as a key aspect of this effort, aimed at creating a more robust and efficient banking system. The upcoming budget announcement is expected to provide further details on the government’s plans for the banking sector and the merger of PSBs.
Overall, the merger of PSBs is a significant development in the Indian banking sector, and the budget announcement is expected to provide important details on the government’s plans. The merger is likely to have a positive impact on the banking sector, leading to improved financial health, increased lending capabilities, and enhanced customer services. The government’s efforts to strengthen the banking sector are expected to continue, with the merger of PSBs being a key aspect of this effort.
An investigation into the alleged Union Bank fraud case, involving Anmol Ambani, is currently underway by the Central Bureau of Investigation (CBI)
The Central Bureau of Investigation (CBI) has filed a fraud case against Jai Anmol Ambani, the elder son of Anil Ambani and chairman of the Reliance Group, for allegedly defrauding Union Bank of India of ₹228.06 crore. The case claims that companies linked to Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL) obtained general-purpose corporate loans from the bank, but instead of using the funds as specified, they were diverted elsewhere, violating loan conditions. Jai Anmol, who was serving as Executive Director of Reliance Home Finance at the time, is accused of providing misleading information to the bank and breaching loan terms, along with other directors.
This is the first time Jai Anmol has been named as a direct accused in a significant criminal investigation. The CBI has filed a case against RHFL, RCFL, Jai Anmol, and other unidentified individuals under various sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act. The complaint was filed directly by Union Bank.
The Anil Ambani-led ADA Group is already facing several fraud-related allegations involving multiple banks, including SBI, Yes Bank, and Punjab National Bank. In June 2025, SBI classified Reliance Communications (RCOM) and Anil Ambani as “fraud” accounts, citing loan defaults exceeding ₹40,000 crore. The Securities and Exchange Board of India (SEBI) has also barred Anil Ambani and 24 others from the securities market for five years, alleging diversion of over ₹5,000 crore from RHFL under the guise of loans.
The Enforcement Directorate (ED) has attached assets worth ₹10,117 crore related to the Reliance Group, including properties worth ₹1,120 crore belonging to companies associated with Anil Ambani, as part of an ongoing money-laundering probe. The ED has also summoned Anil Ambani in connection with a separate investigation into an alleged ₹17,000 crore loan fraud. Multiple cases are pending against Anil Ambani’s companies, including Reliance Communications, which has already gone bankrupt, and Reliance Capital and Reliance Infrastructure, which are undergoing insolvency proceedings in the National Company Law Tribunal (NCLT).
OneCard halts new credit card issuances amid RBI’s request for clarification from its partner banks
OneCard, a popular credit card issuer, has stopped issuing new credit cards due to regulatory issues with the Reserve Bank of India (RBI). The RBI has sought clarifications from partner banks that have collaborated with OneCard, regarding their credit card business model. As a result, OneCard has temporarily halted the issuance of new credit cards until the matter is resolved.
OneCard, which is operated by FPL Technologies, is a mobile-based credit card platform that allows users to apply for and manage their credit cards through a mobile app. The company has gained popularity in recent years due to its ease of use and innovative features. However, the RBI’s move has raised concerns about the company’s business model and its compliance with regulatory requirements.
The RBI has asked partner banks, including State Bank of India, ICICI Bank, and Axis Bank, to provide clarifications on their arrangement with OneCard. The regulator is seeking to understand how OneCard’s credit card business operates and whether it complies with existing regulations. The partner banks have been given a deadline to respond to the RBI’s queries, and until then, OneCard will not be issuing new credit cards.
The development has caused uncertainty among existing OneCard customers, who are concerned about the impact on their credit card services. However, OneCard has assured its customers that the move will not affect their existing credit card services, and they can continue to use their cards as usual.
The RBI’s move is seen as a regulatory crackdown on new-age credit card issuers, which have been growing rapidly in recent years. The regulator is seeking to ensure that these companies comply with existing regulations and do not pose a risk to the financial system. The development highlights the challenges faced by fintech companies in India, which often operate in a gray area between traditional banking regulations and innovative business models.
In conclusion, OneCard’s decision to stop issuing new credit cards is a temporary measure until the regulatory issues are resolved. The company is working with its partner banks to address the RBI’s concerns and ensure that its business model complies with existing regulations. The development highlights the importance of regulatory compliance for fintech companies in India and the need for clear guidelines on innovative business models.
Major Development in PSU Bank Consolidation: IOB, UCO, BOI, BOM, and Central Bank Under Consideration for Merger – What’s the Timeline for the Next Phase of PSB Consolidation?
The Indian government is planning to initiate the next phase of public sector bank (PSB) mergers, with several banks on the radar, including Indian Overseas Bank (IOB), UCO Bank, Bank of India (BOI), Bank of Maharashtra (BOM), and Central Bank of India. The merger of these banks is expected to be a significant step towards consolidation in the Indian banking sector.
The government had earlier merged 10 PSBs into four large banks, resulting in the creation of mega banks such as State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), and Canara Bank. The merger aimed to create stronger and more competitive banks, with improved financial health and increased lending capacity.
The next phase of the merger is expected to be more challenging, as it involves banks with weaker financials. The government is likely to consider factors such as the banks’ financial performance, asset quality, and regional presence before deciding on the mergers. The merger process is expected to be completed in a phased manner, with the first phase likely to involve the merger of smaller banks.
The banks on the radar, including IOB, UCO Bank, BOI, BOM, and Central Bank of India, have been struggling with high non-performing assets (NPAs) and weak financial performance. The merger is expected to help these banks improve their financial health and increase their lending capacity.
The government has not yet announced a specific timeline for the next phase of the merger. However, it is expected to happen soon, as the government is keen to complete the consolidation process in the banking sector. The merger is also expected to lead to job losses, as the merged entity will likely have a reduced workforce.
The PSB merger is part of the government’s broader plan to reform the banking sector and improve its efficiency. The government has also announced several other measures, including the establishment of a bad bank to take over stressed assets and the introduction of a new bank licensing policy. The measures aim to strengthen the banking sector and improve its ability to support economic growth.
In conclusion, the next phase of the PSB merger is expected to involve the merger of several smaller banks, including IOB, UCO Bank, BOI, BOM, and Central Bank of India. The merger is expected to be a significant step towards consolidation in the Indian banking sector and is likely to lead to the creation of stronger and more competitive banks. However, the process is expected to be challenging, and the government will need to carefully consider the financial performance and asset quality of the banks involved.
India’s First Integrated Financial City to be Amaravati, Announces Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman has announced that Amaravati, the capital city of Andhra Pradesh, will become India’s first integrated Financial City. This initiative aims to bring all major financial institutions together in one location, providing a unique opportunity for banks to design and construct top-class facilities from scratch. Sitharaman, along with Chief Minister Chandrababu Naidu, laid the foundation for the construction of nationalized banks and financial institutions in Amaravati.
Several institutions, including State Bank of India, Union Bank of India, and LIC, have begun construction activities. This financial hub is expected to generate direct employment for over 6,500 people and boost future investments and economic activity across the state. Naidu urged the banking leadership to complete the projects in record time and contribute to the growth of Amaravati and Andhra Pradesh.
Sitharaman emphasized that building a new capital city is an extraordinary task, and Prime Minister Narendra Modi has extended complete support to resume the construction of Amaravati. She appreciated the vision of bringing all financial institutions together in the newly planned Financial District, which will provide strong economic backing to the city.
The minister also stressed the importance of ensuring that farmers have access to credit and other financial services. She urged banks to extend wider economic benefits to the farming community, beyond just offering Kisan Credit Card loans. Sitharaman highlighted the need for banks to adopt futuristic thinking and integrated ideas, such as promoting industries like packaging and cold-chain infrastructure, to support horticulture farmers in the region.
The Centre is also establishing training hubs in districts for Quantum Valley and AI-related projects, which will help boost the economy and create new opportunities. Overall, the development of Amaravati as a Financial City is expected to have a significant impact on the state’s economy and provide new opportunities for growth and development. With the support of the Centre and the state government, Amaravati is poised to become a major financial hub in the country.
Should SBI, PNB, and BOB Lead the Next PSU Bank Merger, and What’s the Future for BOI, IOB, BOM, and UCO?
The Indian government’s plan to merge public sector banks (PSBs) has been a topic of discussion in recent years. The goal is to create larger, more efficient banks that can compete with private sector banks. The recent merger of 10 PSBs into four larger banks has been seen as a success, with the merged entities showing improved financial performance. Now, the question is whether the big banks, such as State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BOB), should take part in the next merger.
The government has indicated that the next phase of mergers will involve smaller banks, with Bank of India (BOI), Indian Overseas Bank (IOB), Bank of Maharashtra (BOM), and UCO Bank being considered. These banks have been struggling with high non-performing assets (NPAs) and low capital adequacy ratios. Merging them with larger banks like SBI, PNB, and BOB could help them gain scale and improve their financial health.
However, there are arguments against involving the big banks in the next merger. One concern is that it could lead to cultural and operational challenges, as the merged entities would have to integrate different systems and processes. Additionally, the big banks may not want to take on the burden of the smaller banks’ NPAs and other legacy issues.
On the other hand, involving the big banks in the merger could bring several benefits. It could help them expand their reach and customer base, and gain access to new markets and products. It could also help the government achieve its goal of creating fewer, larger banks that can compete with private sector banks.
The potential benefits of the merger for the smaller banks are clear. BOI, IOB, BOM, and UCO Bank would gain access to more resources, expertise, and technology, which could help them improve their financial performance and competitiveness. The merger could also help them reduce their NPAs and improve their capital adequacy ratios.
In conclusion, while there are valid arguments for and against involving the big banks in the next merger, the potential benefits of the merger for the smaller banks are significant. The government should carefully consider the pros and cons and make a decision that is in the best interest of the banking sector and the economy as a whole. If the big banks are involved in the merger, it could lead to the creation of even larger, more efficient banks that can compete with private sector banks and support the country’s economic growth.
Consolidation of PSU Banks: SBI Chief Suggests Additional Mergers Could Be Beneficial As Government Considers Major Overhaul | Business News
The chairman of the State Bank of India (SBI), CS Setty, has expressed support for the Indian government’s plan to merge smaller public sector banks with larger lenders. In an interview with Bloomberg, Setty stated that there is a need for further rationalization in the banking sector, as some smaller banks are still sub-scale. He suggested that another round of consolidation may not be a bad idea, which could lead to the next level of growth and scale in India’s financial space.
The government is considering a plan to merge several small lenders, including Indian Overseas Bank (IOB), Central Bank of India (CBI), Bank of India (BOI), and Bank of Maharashtra (BOM) with larger public sector banks such as Punjab National Bank (PNB), Bank of Baroda (BoB), and SBI. This proposed mega merger is aimed at supporting the next phase of credit expansion and financial sector reforms.
The plan is expected to be taken up at the Cabinet level and then examined by the Prime Minister’s Office (PMO). This renewed merger push diverges from NITI Aayog’s earlier suggestion to privatize or restructure smaller public sector banks. NITI Aayog had recommended that only a few large state-run lenders, including SBI, PNB, BoB, and Canara Bank, be retained under government control, while the remaining PSBs should either be merged, privatized, or have their government stake reduced.
The proposed merger is expected to drive growth and increase the efficiency of the banking sector. Setty’s support for the plan indicates that the banking industry is open to consolidation, which could lead to the creation of larger, more competitive banks. The government’s plan to merge smaller banks with larger lenders is a significant step towards achieving this goal.
The merger plan is also expected to support the next phase of credit expansion and financial sector reforms. The Indian government has been working to strengthen the banking sector and improve its efficiency, and the proposed merger is a key part of this effort. The plan is expected to be implemented in the near future, and it will be interesting to see how it unfolds and what impact it has on the banking sector.
Overall, the proposed merger of smaller public sector banks with larger lenders is a significant development in the Indian banking sector. It is expected to drive growth, increase efficiency, and support the next phase of credit expansion and financial sector reforms. The support of the SBI chairman for the plan indicates that the banking industry is open to consolidation, and the government’s plan is a significant step towards achieving this goal.
Latest Bank Update: Will Indian Overseas Bank, Central Bank of India, and Bank of India Merge with SBI and Canara Bank?
The Indian government is planning a major overhaul of the country’s banking system by merging smaller public sector banks with larger ones. Finance Minister Nirmala Sitharaman emphasized the need for a world-class banking system, with the goal of expanding Indian banks to become among the top global banks. The proposed mega-merger plan aims to create larger, more reliable public sector banks. Except for the State Bank of India, Canara Bank, Punjab National Bank, and Bank of Baroda, all other banks in the country could be merged.
Sitharaman stated that discussions have begun with banks to determine how they wish to proceed with the merger. The Reserve Bank of India is also being consulted to gather their views on creating larger banks. According to media reports, the second phase of the merger plan may involve merging Indian Overseas Bank, Central Bank of India, Bank of India, and Bank of Maharashtra with larger banks like Punjab National Bank, Bank of Baroda, and State Bank of India.
This is not the first time the government has undertaken bank mergers. In 2017, five associate banks of SBI and Bharatiya Mahila Bank were merged with the State Bank of India. In 2019, Vijaya Bank and Dena Bank were merged with Bank of Baroda, and in 2020, Oriental Bank of Commerce and United Bank of India were merged with Punjab National Bank.
The merger is expected to have significant implications for both employees and account holders. While banking deposits, fixed deposits, interest rates, loans, and other services will remain unaffected, account holders may need to obtain new passbooks, chequebooks, and account numbers. Additionally, branch names and addresses may change, requiring customers to visit their bank branches to update their records. Overall, the government’s goal is to create a more robust and efficient banking system that can compete with global banks.
Fixed Deposit rates soar up to 8.05% for general public with 5-year investment term; Check out the complete list of banks
Fixed Deposit (FD) Rates Up to 8.05% for General Citizens Investing for Five Years
In a move to encourage savings and investments, several banks in the country have increased their fixed deposit (FD) interest rates. For general citizens investing for a period of five years, the interest rates can go up to 8.05%. This is a significant increase, making FDs an attractive option for those looking to grow their savings.
List of Banks Offering High FD Rates
Here is a list of banks offering high FD rates for a five-year investment period:
- DCB Bank: 8.05% interest rate for a five-year FD
- Yes Bank: 7.75% interest rate for a five-year FD
- IndusInd Bank: 7.75% interest rate for a five-year FD
- Kotak Mahindra Bank: 7.70% interest rate for a five-year FD
- Axis Bank: 7.60% interest rate for a five-year FD
- HDFC Bank: 7.55% interest rate for a five-year FD
- ICICI Bank: 7.50% interest rate for a five-year FD
- State Bank of India (SBI): 7.40% interest rate for a five-year FD
- Bank of Baroda: 7.35% interest rate for a five-year FD
- Punjab National Bank (PNB): 7.30% interest rate for a five-year FD
Benefits of Investing in FDs
Investing in FDs offers several benefits, including:
- Guaranteed returns: FDs offer a fixed interest rate, ensuring that your investment grows at a guaranteed rate.
- Low risk: FDs are a low-risk investment option, making them suitable for conservative investors.
- Liquidity: FDs can be easily liquidated, allowing you to access your funds when needed.
- Tax benefits: Interest earned on FDs is taxable, but you can claim a tax deduction on the interest income.
How to Invest in FDs
To invest in an FD, you can visit the website of the bank or visit a branch in person. You can also invest through mobile banking or online banking platforms. The minimum deposit amount and investment period may vary depending on the bank and the type of FD.
Overall, investing in FDs can be a great way to grow your savings and earn a fixed income. With interest rates up to 8.05% for a five-year investment period, now is a good time to consider investing in an FD.
Groundbreaking Research from SBI and QuadSci Reveals Alarming SaaS Customer Losses, and Unveils AI-Driven Solution to Identify At-Risk Accounts
A new study by SBI Growth Advisory and QuadSci has revealed a costly SaaS retention crisis, where most SaaS companies are losing ground on retention despite record spending on customer success. The study analyzed 160 billion data points across 9,100 accounts and found that solution usage alone accounts for 80% of commercial outcomes, outweighing pricing, competition, or satisfaction scores. The research identified six usage patterns that determine renewal and expansion outcomes, including Power Users, Enthusiastic Adopters, Converts, Explorers, Strugglers, and Disconnected accounts.
The study found that Net Revenue Retention (NRR) is slipping across the industry, with 58% of SaaS companies reporting lower NRR than two years ago. However, the research also showed that AI can now forecast renewal and expansion decisions with 90% accuracy up to a year in advance by tracking these usage patterns. The study’s findings suggest that growth doesn’t hinge on luck or loyalty, but rather on behavior, and that usage behavior tells the real story of commercial outcomes.
The study’s methodology involved analyzing telemetry data points tied to customer accounts, tracking usage behavior across the full lifecycle, and benchmarking NRR trends against financial documents from public subscription companies. The research has significant implications for SaaS companies, as it suggests that by leveraging AI to analyze usage behavior, they can predict and prevent churn, and improve their NRR.
The study’s findings have been endorsed by industry leaders, including Deanne Branham, Chief Customer Officer at Reltio, who noted that the AI insights are now built directly into Reltio’s platform, enabling the company to support its customers more effectively. The research suggests that SaaS companies that act on these insights now will set the pace for 2026, and that the use of AI to analyze usage behavior will become increasingly important for companies looking to improve their retention and growth.
Consolidating banking entities to the point of rendering them obsolete
The Indian government’s plan to merge nine public sector banks into three large banks, namely State Bank of India, Punjab National Bank, and Canara Bank, has sparked concern among customers and employees. The move, aimed at enabling these banks to compete with foreign banks, is expected to begin by the end of the next financial year. However, this merger could have far-reaching consequences, including making banking inaccessible to common people, increasing workload, and worsening bank environments.
Bank mergers are not new in India, with several state banks having merged with SBI in the past. Recently, Andhra Bank and Corporation Bank merged with Union Bank, while Dena and Vijaya Banks merged with Bank of Baroda. The real objective behind these mergers was to shift the liability of banks in debt from giving loans to billionaires. Apart from mergers, the privatization of banks is also underway, with IDBI Bank being privatized and Yes Bank being taken over by Japan’s Sumitomo Mitsui Banking Corporation.
The central government’s move to privatize and merge public sector banks has been criticized for forgetting the role that these banks played in keeping the country safe during the global financial crisis. Big banks have no interest in ordinary, rural, and farmer accounts, and have recently imposed minimum balance requirements, making it difficult for ordinary people to access banking services. This could lead to a shift from mass banking to class banking, where only the wealthy have access to banking services.
The merger is expected to lead to widespread closure of branches, voluntary retirement, and compulsory retirement, which will adversely affect services. Customers will be forced to accept unilaterally imposed service charges and penalties. The banking sector is heading from nationalization to privatization and eventually to foreignization, which will have adverse effects on the economy and common people. The government’s move has been criticized for being anti-poor, as it will only benefit the wealthy and large corporations.
The privatization of banks will also lead to a loss of benefits that society achieved through nationalization of banks. Small borrowers are being tied up with laws like SARFAESI, while corporate loans worth crores continue to be written off. The decline in the number of banks will also adversely affect services, and customers will be forced to accept poor services and high charges. The government’s move has been criticized for being a shift from pro-people policies to pro-corporate policies, which will have far-reaching consequences for the economy and common people.
You are required to comply with these new SBI regulations, as failure to do so may result in account suspension.
The State Bank of India (SBI) has announced new rules that will come into effect on October 31, 2025, affecting its numerous customers. The primary objective of these rules is to enhance account security and prevent banking fraud. To avoid any inconvenience, customers must update their Know Your Customer (KYC) information and ensure their accounts are active. Inactive accounts or those with incomplete information may be blocked or deactivated if not updated on time.
The new rules include a requirement for customers to update their KYC documents, such as passports, Aadhaar, and PAN cards, to prevent account closure. Additionally, SBI has imposed daily ATM cash withdrawal limits, effective October 31, 2025. Classic and Maestro debit cardholders will have a limit of ₹20,000, while Gold and Platinum cardholders will have limits of ₹50,000 and ₹100,000, respectively.
To comply with these new rules, customers must take the following steps before October 31:
1. Update their SBI account KYC documents to ensure they are current and verified.
2. Make regular transactions to prevent their account from becoming inactive.
3. Complete the necessary process for cash loans or overdraft facilities by contacting the bank.
4. Adjust their withdrawal behavior according to the new ATM cash withdrawal limits.
5. File their free Income Tax Return (ITR) using SBI’s YONO app or Tax2win app.
It is essential for customers to be cautious of suspicious messages or calls that may ask for personal details or threaten to block their account, as these can be scams. Customers should contact their bank’s official branch or customer care to understand and comply with the terms and conditions. By taking these steps, customers can ensure a seamless banking experience and avoid any potential issues with their accounts. The new rules aim to increase security and prevent banking fraud, and customers must take the necessary steps to comply with these regulations.
SBI UPI Service Experiences Outage: Bank Acknowledges Sporadic Technical Glitches Leading to Failed UPI Transactions
The State Bank of India’s (SBI) Unified Payments Interface (UPI) services have been affected by technical issues for the second time in the last 10 days. On October 7, the UPI system was briefly impacted, resulting in a spike in complaints from users. According to DownDetector, a website that tracks outages, over 1,200 users reported issues between 5:30 pm and 7:00 pm, with 51% of them experiencing trouble with fund transfers. It is unclear whether all of these transfers were attempted via UPI.
SBI acknowledged the issue on social media platform X, stating that they were experiencing “intermittent technical issues” with their UPI services, which may cause temporary declines in service for some customers. The bank assured users that the issue would be resolved by 7:00 pm on Tuesday. In the meantime, SBI suggested that customers use UPI Lite services for uninterrupted transactions. The bank apologized for the inconvenience caused to its customers.
This is the second time in a short span that SBI’s UPI services have been affected by technical issues, raising concerns about the reliability of the system. The outage may have caused difficulties for customers who rely on UPI for their daily transactions. SBI’s UPI services are widely used, and any disruption can have a significant impact on users.
The bank’s prompt response to the issue and suggestion to use UPI Lite services are positive steps towards mitigating the problem. However, the frequency of technical issues with SBI’s UPI services is a cause for concern, and the bank needs to take steps to ensure the stability and reliability of its systems. The incident highlights the importance of having a robust and reliable payment infrastructure, especially in a country like India, where digital payments are becoming increasingly popular.
In conclusion, the technical issues affecting SBI’s UPI services are a cause for concern, and the bank needs to take steps to address the problem and prevent such outages in the future. The bank’s response to the issue and suggestion to use alternative services are positive steps, but more needs to be done to ensure the reliability and stability of its systems.
Reserve Bank of India (RBI) and State Bank of India (SBI) launch awareness drive in Dimapur to reunite citizens with their unclaimed bank deposits.
A district-level awareness campaign was held in Dimapur on Monday to promote the settlement of unclaimed deposits. The event, themed “Your money, your right,” was organized by the Reserve Bank of India (RBI) and the State Bank of India (SBI) as part of a nationwide campaign. The campaign aims to ensure that unclaimed deposits and investments are returned to their rightful owners. Imtijungla Lemtur, EAC Dimapur, chaired the meeting and encouraged participants to spread awareness in their communities to facilitate the process and ensure financial transparency.
The District Lead Manager, Rongsenyangla, highlighted the growing concern of unclaimed deposits and stressed the importance of financial awareness among the public. She explained that many individuals are unaware of dormant or forgotten accounts, matured fixed deposits, unclaimed insurance proceeds, or dividends left unattended due to lack of knowledge or documentation. The ongoing campaign is structured around the three pillars of Awareness, Accessibility, and Action (3 A’s) to make the process of tracing and reclaiming unclaimed funds simple, transparent, and citizen-friendly.
As of August 31, 2025, unclaimed assets in India amounted to INR 1.82 lakh crore. Rongsenyangla urged citizens to take proactive steps in identifying their unclaimed assets and encouraged stakeholders such as village councils, GBs, and community leaders to assist in spreading this vital information. The RBI has launched an online portal, udgam.rbi.org.in, where individuals can check the status of unclaimed deposits.
The campaign is part of the Government of India’s broader efforts to strengthen financial inclusion and literacy through schemes such as the Pradhan Mantri Jan Dhan Yojana (PMJDY), National Strategy for Financial Education (NSFE), National Centre for Financial Education (NCFE), and Financial Literacy Centres (FLCs). The programme was attended by representatives from various sectors, and the organizers hope that it will help raise awareness and facilitate the settlement of unclaimed deposits in the region.
The event emphasized the importance of financial awareness and the need for citizens to take an active role in identifying and reclaiming their unclaimed assets. By providing a platform for awareness and education, the campaign aims to promote financial inclusion and literacy, ultimately benefiting the citizens of Dimapur and the wider community. The success of the campaign will depend on the active participation of stakeholders, including citizens, community leaders, and financial institutions, in spreading awareness and facilitating the settlement of unclaimed deposits.
A consortium consisting of KB Securities, UAMCO, and SBI Investment Korea has been formed to purchase PicosTech for approximately 40 billion won, as reported by Chosun Biz.
KB Securities and UAMCO have formed a consortium with SBI Investment Korea to acquire PicosTech, a South Korean semiconductor manufacturer, for 40 billion won (approximately $30 million USD). This move is seen as a strategic investment in the semiconductor industry, which has been experiencing significant growth in recent years.
PicosTech is a leading manufacturer of semiconductor packaging and testing services, providing solutions for a wide range of applications, including 5G, artificial intelligence, and the Internet of Things (IoT). The company has established itself as a key player in the industry, with a strong portfolio of patents and a skilled workforce.
The consortium, led by KB Securities and UAMCO, will acquire a majority stake in PicosTech, with SBI Investment Korea also participating as an investor. The acquisition is expected to be completed in the coming months, subject to regulatory approvals.
The investment in PicosTech is seen as a strategic move by the consortium to expand its presence in the semiconductor industry. The company’s expertise in semiconductor packaging and testing services is expected to complement the consortium’s existing portfolio of investments, which includes companies involved in semiconductor manufacturing and related fields.
The acquisition of PicosTech is also expected to provide the consortium with access to new technologies and markets, as well as opportunities for collaboration and synergies with other companies in the industry. The investment is seen as a positive development for the South Korean semiconductor industry, which has been experiencing significant growth in recent years, driven by increasing demand for advanced semiconductors.
The 40 billion won investment in PicosTech is a significant transaction in the South Korean semiconductor industry, and demonstrates the confidence of investors in the sector’s growth prospects. The acquisition is expected to have a positive impact on PicosTech’s business, enabling the company to expand its operations and invest in new technologies and research and development.
Overall, the formation of the consortium and the acquisition of PicosTech is a significant development in the South Korean semiconductor industry, and demonstrates the growing interest of investors in the sector. The investment is expected to have a positive impact on the industry, and is seen as a strategic move by the consortium to expand its presence in the market.
Government greenlights major shakeup in public sector bank leadership, opening SBI Managing Director position to candidates from private sector
The Indian government has introduced significant reforms in the appointment process for top leadership positions in public sector banks (PSBs) and state-owned insurance companies. The Appointments Committee of the Cabinet (ACC) has approved revised guidelines for appointing Whole-Time Directors, including Managing Directors, Chairpersons, and Executive Directors. This move aims to enhance leadership diversity, meritocracy, and transparency in the public banking sector.
One of the key changes applies to the State Bank of India (SBI), where three out of four Managing Director positions must now be filled by candidates from other PSBs, and one position is open to private sector professionals who meet the eligibility criteria. To be eligible, private sector candidates must have at least 21 years of professional experience, 15 years in banking, and have served at the board level of a bank or at the highest level below the board.
The Financial Services Institutions Bureau (FSIB) will lead the selection process with the help of independent HR agencies to evaluate private sector candidates. The government has also eliminated the requirement for Annual Performance Appraisal Reports (APARs) during the selection process, shifting the focus towards performance-based assessment.
The Department of Financial Services (DFS) has communicated the revised guidelines to all PSBs and state-owned insurance companies, which are expected to reshape the way top talent is attracted and appointed across India’s public financial institutions. Senior officials believe that this reform will enhance transparency, foster competition, and bring in a merit-based selection culture at the highest levels of India’s banking sector.
The government hopes that these new guidelines will encourage a broader talent pool and strengthen the professionalism and accountability of PSB leadership. The reform is part of a larger initiative to modernize top-level hiring in India’s financial institutions and align public sector recruitment with global best practices in banking leadership. With a strong domestic and international presence, SBI is expected to play a critical role in India’s economic growth and financial inclusion initiatives.
SBI set to acquire 200 two-bedroom apartments in Mumbai for ₹294 crore as part of a bulk purchase to provide housing for its employees, reports Hindustan Times.
The State Bank of India (SBI) is planning to purchase 200 two-bedroom-hall-kitchen (2BHK) apartments in a bulk deal for its staff in Mumbai. The deal is worth ₹294 crore, with each apartment costing approximately ₹1.47 crore. This move is part of the bank’s efforts to provide housing to its employees in the city.
The apartments are located in the western suburbs of Mumbai, specifically in the areas of Andheri, Borivali, and Kandivali. The bank has identified these locations as they are close to its branches and offices, making it convenient for employees to commute. The apartments are being purchased from a private developer, who has already completed the construction of the buildings.
This bulk purchase is a strategic move by SBI to address the housing needs of its employees in Mumbai. The city is known for its high real estate prices, making it challenging for individuals to afford homes. By purchasing apartments in bulk, the bank can provide its employees with affordable housing options, which will help to improve their overall quality of life.
The purchase is also expected to have a positive impact on the Mumbai real estate market. The bulk deal is likely to boost the morale of developers and investors, who have been facing a slowdown in the market due to various factors, including the COVID-19 pandemic. The deal may also lead to an increase in demand for apartments in the western suburbs, which could result in higher property prices in the region.
SBI’s decision to purchase apartments in bulk is not a new concept. The bank has been following this strategy for several years, as it helps to reduce costs and provide affordable housing to its employees. In the past, the bank has purchased apartments in other cities, including Delhi, Bengaluru, and Chennai.
The apartments being purchased by SBI are spacious, with each unit covering an area of approximately 900 square feet. The buildings have modern amenities, including lifts, parking, and security services. The bank has also ensured that the apartments are conveniently located, with easy access to public transport, schools, and hospitals.
Overall, SBI’s plan to purchase 200 apartments in Mumbai is a significant move that will benefit both its employees and the real estate market. The deal is expected to be completed soon, and the bank will then allocate the apartments to its eligible employees. This initiative is part of the bank’s efforts to improve the living standards of its staff and provide them with a better work-life balance.
The State Bank of India initiates a cleanliness campaign in a local school.
The State Bank of India (SBI) recently led a cleanliness campaign at the Kannagi Government Girls Higher Secondary School in Villianur. The initiative was part of the “Swachh Utsav – Swachhata Hi Seva 2025” campaign, which was directed by the Department of Financial Services, Ministry of Finance. The campaign aimed to promote cleanliness and hygiene in the school premises.
Volunteers from the SBI’s Villianur branch participated in the cleanliness drive, which was a fortnight-long event. The campaign concluded on Gandhi Jayanti, a significant day in India that commemorates the birthday of Mahatma Gandhi. The event was attended by several dignitaries, including M. Natarajan, Regional Manager of SBI Regional Business Office in Puducherry, and Rajadurai Venkatesan, Branch Manager of SBI Villianur.
The cleanliness drive was a collaborative effort between the SBI and the school authorities. The participants worked together to spruce up the school premises, making it a cleaner and more hygienic place for the students. The campaign was also an opportunity to promote the importance of cleanliness and hygiene among the students and the community.
The “Swachh Utsav – Swachhata Hi Seva 2025” campaign is a part of the larger Swachh Bharat Abhiyan initiative, which was launched by the Government of India in 2014. The campaign aims to promote cleanliness, hygiene, and sanitation across the country, and to make India a cleaner and healthier place.
The SBI’s initiative to lead a cleanliness campaign at the Kannagi Government Girls Higher Secondary School is a positive step towards promoting cleanliness and hygiene in the community. The campaign not only helped to improve the school premises but also raised awareness about the importance of cleanliness and hygiene among the students and the community. The event was a success, and it is hoped that it will inspire others to take up similar initiatives in the future.
JSW One Platforms secures ₹575 crore funding from key investors including SBI, JSW Steel, and Principal Asset Management.
JSW One Platforms, the B2B ecommerce arm of the JSW Group, has completed a funding round of Rs 575 crore with participation from several investors, including State Bank of India (SBI), Principal Asset Management, and JSW Steel. The funding round, which began in May, values the company at around Rs 8,575 crore. The fresh capital will be used to scale the company’s technology platform, expand its distribution and logistics network, and strengthen its non-banking financial company (NBFC) arm.
The NBFC arm, JSW One Finance, provides financing solutions to small and medium enterprises (MSMEs) and has assets under management (AUM) of Rs 100 crore. The company aims to increase this to Rs 500 crore by the end of the year. The lenders that provide loans through JSW One’s platform include several major banks, such as ICICI Bank, IndusInd Bank, and Axis Bank.
JSW One Platforms operates a digital marketplace through two main entities: JSW One Distribution and JSW One Finance. The company offers materials, credit, and logistics services to firms in the manufacturing and building sectors. In the fiscal year ending March 2025, JSW One recorded a gross merchandise value (GMV) of Rs 12,567 crore and revenue of Rs 3,976 crore.
The company plans to use the funding to build more technology and integrate its supply chain in real-time. The CEO, Gaurav Sachdeva, stated that the company wants to leverage the funding to build more technology and enhance its underwriting capabilities. The chairman, Parth Jindal, said that the funding will help the company empower MSMEs through tech-driven solutions and bridge the working capital gap for MSMEs.
JSW One Platforms is planning to go public in the next 18-24 months, joining peers such as Zetwerk, Infra.Market, and OfBusiness in preparing for an initial public offering (IPO). The company’s growth and expansion plans are expected to drive its success in the B2B ecommerce market. With the fresh funding, JSW One Platforms is well-positioned to achieve its goals and become a key player in India’s industrial ecosystem.
Bandhan Bank, Equitas SFB, AU SFB, and Axis are expected to experience a decline in Net Interest Margin (NIM), while RBL Bank is likely to be an exception: Q2 preview
Motilal Oswal Financial Services (MOFSL) forecasts that the September quarter (Q2FY26) will mark the bottom for the banking sector’s net interest margins (NIMs), with profitability expected to recover gradually in the second half of the year. This recovery will be driven by deposit repricing and the phased Cut in Cash Reserve Ratio (CRR). According to MOFSL, credit growth remains modest, with system-wide credit growth standing at 10.3% year-on-year as of September 5, 2025. The brokerage expects systemic loan growth to sustain at 11% in FY26E and improve to 12.5% in FY27E, aided by a pickup in consumption from GST rate cuts, income tax relief, and lower borrowing costs.
MOFSL notes that system deposit growth held steady at 9.8% year-on-year in September, despite rate cuts. However, banks continue to face challenges in mobilizing low-cost Current Account and Savings Account (CASA) deposits. The moderation in policy rates has led to reductions in both savings and term deposit rates, which should lower the cost of funds in the second half and aid NIM recovery.
The brokerage expects sharper NIM declines for certain banks, including Bandhan Bank, Equitas SFB, AU SFB, and Axis Bank, while RBL Bank could see a slight improvement. Stress remains in unsecured retail segments, such as microfinance and credit cards, though collection efficiencies are improving. Select segments, including micro-LAP, CV loans, and affordable housing, are also showing signs of stress, with additional risks from recent floods in northern and eastern states.
For Q2FY26, MOFSL estimates a decline in Net Interest Income (NII) for its coverage universe, with a 0.9% year-on-year decline and a 1.8% quarter-on-quarter decline. Pre-Provision Operating Profit (PPoP) is projected to fall 5.5% year-on-year and 14% quarter-on-quarter, while Profit After Tax (PAT) is expected to decline 7.2% year-on-year and 4.5% quarter-on-quarter. However, the brokerage sees earnings traction building from the second half of FY26, leading to a 17.7% PAT Compound Annual Growth Rate (CAGR) over FY26-28E.
In terms of specific bank performance, MOFSL forecasts that private banks’ PAT will fall 7.3% year-on-year in Q2, with NII growth muted at 0.6% year-on-year. Public Sector Undertaking (PSU) banks’ PAT is projected to fall 7.1% year-on-year, driven by NIM compression and lower treasury gains. Small Finance Banks are expected to face persistent NIM pressure in Q2, while fintechs and payments companies, such as SBI Cards and Paytm, are expected to report strong growth. Overall, MOFSL expects the banking sector to recover gradually in the second half of the year, driven by deposit repricing and the phased CRR cut.
Kotak811 surpasses SBI Yono, securing the 3rd spot globally in terms of banking app downloads for the first half of 2025, according to a report by Firstpost.
Kotak811, a digital banking brand launched by Kotak Mahindra Bank in 2017, has achieved significant success, ranking third globally in banking app downloads in the first half of 2025, according to Sensor Tower. With over 16 million downloads, Kotak811 has experienced a 250% year-on-year surge, the fastest growth for any banking app globally during the period. This growth is notable, given the RBI’s restrictions that barred the bank from onboarding new digital customers until February 12.
Kotak811’s success can be attributed to its low-cost airline-style model, offering zero-balance accounts with optional paid add-ons like debit cards and cheque books. The platform serves 2.6 crore fully KYC-compliant savings account holders, who enjoy access to all branch-level facilities. Kotak811 functions as a digital financial marketplace, offering savings, UPI and IMPS payments, mutual funds, insurance, and credit cards within the Kotak ecosystem.
While SBI’s Yono app leads in overall install base and usage, backed by its 50 crore-strong customer base, Kotak811 has broadened its reach to upper-middle-class and affluent customers. The bank offers 811 Super for the mass-affluent segment, which already serves over 10 lakh customers. Kotak811’s success highlights the contrast with fintech models, as only banks like Kotak can deliver end-to-end digital banking under a regulated framework.
The global digital banking surge, as noted by Sensor Tower, reflects a shift toward mobile-first banking in markets where many still lack access to traditional branches. Neobanking apps are helping expand financial inclusion in countries like Brazil, India, Mexico, and Colombia by offering low-cost, branchless services. Consumer banking apps surpassed 2 billion global downloads in the 12 months to June 2025, a 5.1% annual rise, with roughly 500 million downloads each quarter. Mobile apps are now the go-to platform for financial services, and banking apps are leading the shift, setting the pace for digital transformation across the industry.
In the Indian market, despite Kotak811’s success, consumers still rely heavily on payment apps like PhonePe, Google Pay, and Paytm for daily transactions. However, Kotak811’s regulated framework and bank-manufactured products offer credibility, regulatory stability, and scalability, making it a full-fledged financial marketplace. As the digital banking landscape continues to evolve, Kotak811’s success demonstrates the potential for traditional banks to adapt and thrive in a mobile-first world.
Asheesh to head Union Bank, Kalyan Kumar to lead Central Bank of India as government announces new MD appointments
The Indian government has appointed Asheesh Pandey as the Managing Director (MD) of Union Bank of India and Kalyan Kumar as the MD of Central Bank of India. These appointments were made to fill the vacancies at the top positions of these public sector banks. The appointments were approved by the Appointments Committee of the Cabinet (ACC) and are effective for a period of three years.
Asheesh Pandey, who was previously the Executive Director of Punjab National Bank, will take over as the MD of Union Bank of India. He has over 30 years of experience in the banking sector and has worked in various roles, including as a branch manager, regional manager, and head of credit. Pandey is expected to lead Union Bank of India’s efforts to improve its financial performance, expand its customer base, and enhance its digital banking services.
Kalyan Kumar, who was previously the Executive Director of State Bank of India, will take over as the MD of Central Bank of India. He has over 25 years of experience in the banking sector and has worked in various roles, including as a branch manager, regional manager, and head of retail banking. Kumar is expected to lead Central Bank of India’s efforts to improve its asset quality, increase its lending to priority sectors, and strengthen its risk management systems.
The appointments of Pandey and Kumar are part of the government’s efforts to revitalize the public sector banking sector, which has been facing challenges such as high non-performing assets (NPAs), low credit growth, and intense competition from private sector banks. The government has been taking steps to strengthen the governance and management of public sector banks, including the appointment of new MDs and CEOs, to improve their financial performance and enhance their competitiveness.
The appointments of Pandey and Kumar are also expected to bring in fresh perspectives and ideas to Union Bank of India and Central Bank of India, respectively. Both banks have been facing challenges in recent years, including high NPAs and low credit growth, and the new MDs are expected to play a key role in turning around their fortunes. Overall, the appointments of Pandey and Kumar are significant developments in the Indian banking sector and are expected to have a positive impact on the performance of Union Bank of India and Central Bank of India.
State Bank of India gifts waste management bins to Yamunanagar Municipal Corporation
As part of the ‘Haryana Shehar Swachhata Abhiyan’, a cleanliness initiative in Haryana, the State Bank of India (SBI) has made a significant contribution to improve sanitation in the twin cities of Yamunanagar and Jagadhri. The bank donated dustbins worth over Rs 2 lakh to the Municipal Corporation, Yamunanagar-Jagadhri (MCYJ). This donation is part of SBI’s corporate social responsibility (CSR) initiative to promote cleanliness and hygiene in the region.
The donation was handed over by Neeraj Bharti, General Manager of SBI’s Head Office in Chandigarh, to Municipal Commissioner Mahabir Parsad. Bharti emphasized the importance of proper waste disposal and encouraged residents to use the dustbins instead of throwing garbage in the open. The Municipal Commissioner expressed his gratitude to SBI officials for their generous gesture and urged other social organizations to follow suit.
The Municipal Corporation has installed dustbins in various public places, including markets and roadsides, to separate dry and wet waste. The new dustbins donated by SBI will be installed in the remaining areas of the twin cities. The Corporation has appealed to residents to cooperate in keeping the city clean and hygienic by using the dustbins and avoiding littering in public places.
The donation ceremony was attended by senior SBI officials, including Krishan Jain, Vivek Kumar, and managers of various branches. The initiative is expected to have a positive impact on the cleanliness and sanitation of Yamunanagar and Jagadhri, and sets an example for other organizations to contribute to the ‘Haryana Shehar Swachhata Abhiyan’. By promoting proper waste disposal and cleanliness, SBI’s donation is a significant step towards making the twin cities more beautiful, clean, and hygienic.
Saturday, September 27, is a bank holiday: Will banks be closed today?
Today is a bank holiday in India, with all banks, including the State Bank of India (SBI), remaining closed. This is in line with the Reserve Bank of India’s (RBI) holiday schedule, which includes the second and fourth Saturdays of each month and all Sundays. As a result, banks will be closed today, September 27, and tomorrow, September 28, for the weekend.
The RBI has released the full bank holiday schedule for September 2025. Some of the notable holidays include September 18, when all private and public banks in Shillong will be closed for the Unitarian Anniversary Day; September 22, when banks in Jaipur will be shut for Navratra Sthapna; and September 23, when banks in Jammu and Srinagar will be closed for the birthday of Maharaja Hari Singh Ji.
Additionally, there will be bank holidays on September 29 and 30 in several cities, including Agartala, Kolkata, and Guwahati, for Maha Saptami and Maha Ashtami/Durga Ashtami, respectively. Sundays, September 7, 14, 21, and 28, are also bank holidays, as are the second and fourth Saturdays, September 13 and 27.
In case of emergencies when banks are closed, customers can use online or mobile banking services, unless notified otherwise. ATMs are also open for withdrawals, and app and UPI services function as usual. The RBI and state governments create a list of holidays for banks, taking into account national and local occasions, operational requirements, religious celebrations, and other cultural observances.
It is essential for customers to be aware of the bank holiday schedule to plan their financial transactions accordingly. The RBI announces the holiday schedule through its official website and notifications to banks and other financial institutions. By checking the schedule in advance, customers can avoid any inconvenience caused by bank closures and make necessary arrangements for their financial needs.
SBI Nagpur Organizes Cleanliness Drive, Promotes Community Hygiene | Latest Nagpur Updates
The State Bank of India’s administrative office in Nagpur recently organized a special cleanliness drive at the Lourd Mata Mandir in Civil Lines, Nagpur. The event was part of the ‘Swachhata Hi Seva – One Day, One Hour, Together’ campaign, which aims to promote collective responsibility in maintaining cleanliness and hygiene in public places. The drive was attended by staff members of the bank, who participated wholeheartedly in the presence of Rajeev Sawrav, the Deputy General Manager (B&O) of the Nagpur Module.
During the event, participants actively engaged in cleaning the premises of the Lourd Mata Mandir and its surrounding areas. The initiative served as a reminder that the mission of Swachh Bharat, a nationwide campaign launched by the government to clean up India, is not just a one-day activity but a continuous commitment towards building a clean, green, and sustainable environment. The event highlighted the importance of collective responsibility in maintaining cleanliness and hygiene in public places, and the role that individuals and organizations can play in achieving this goal.
The cleanliness drive was a significant effort by the State Bank of India to contribute to the Swachh Bharat mission. By organizing such events, the bank is not only promoting cleanliness but also setting an example for others to follow. The event also demonstrated the bank’s commitment to social responsibility and its efforts to give back to the community. The participation of staff members in the event showed that the bank’s employees are dedicated to making a positive impact on the environment and the community.
The ‘Swachhata Hi Seva – One Day, One Hour, Together’ campaign is an initiative that aims to bring people together to work towards a common goal of cleanliness and hygiene. The campaign encourages individuals and organizations to dedicate one hour of their time to clean up their surroundings and promote cleanliness. The campaign has gained significant traction across the country, with many organizations and individuals participating in it. The State Bank of India’s administrative office in Nagpur has set a good example by participating in this campaign and promoting cleanliness in the community.
Bank of Baroda slashes lending rates: 5 major banks, including BoB, cut EMIs in September 2025, making loans more affordable – The Economic Times
As of September 2025, several major banks in India have reduced their lending rates, paving the way for lower Equated Monthly Installments (EMIs) for borrowers. According to a report by The Economic Times, at least five banks have cut their lending rates, providing relief to home loan and personal loan customers.
One of the banks that has reduced its lending rates is the Bank of Baroda. The Bank of Baroda has lowered its Marginal Cost of Funds Based Lending Rate (MCLR) across various tenors, which will lead to a decrease in the interest rates on loans such as home loans, auto loans, and personal loans.
Other banks that have reduced their lending rates include the State Bank of India (SBI), ICICI Bank, HDFC Bank, and Axis Bank. The reduction in lending rates is expected to make borrowing more affordable for customers and provide a boost to the economy.
The cut in lending rates is also expected to increase credit demand, as lower interest rates will make loans more attractive to borrowers. This, in turn, can lead to an increase in consumer spending and investment, which can have a positive impact on the overall economy.
The reduction in lending rates by these banks is seen as a-move to pass on the benefits of the lower policy rates to the customers. The Reserve Bank of India (RBI) had earlier reduced the policy rates to stimulate economic growth.
The lowering of lending rates by these banks is a welcome move for borrowers, as it will lead to lower EMIs and reduced interest burden. However, it is essential for borrowers to review their loan agreements and terms to understand the impact of the reduced lending rates on their loans.
In conclusion, the reduction in lending rates by major banks in India, including the Bank of Baroda, is a positive development for borrowers. With lower lending rates, borrowers can expect lower EMIs and reduced interest burden, making borrowing more affordable. As the economy continues to evolve, it will be interesting to see how these changes impact the banking and financial sectors.
BMC’s financial reserves are dwindling as a significant amount of money is being allocated to infrastructure development.
The Brihanmumbai Municipal Corporation (BMC) has experienced a decline in its fixed deposits (FDs) after over a decade of consistent growth. According to information obtained under the Right to Information (RTI) Act, the BMC’s FDs peaked at 91,690 crore in 2021-22 but have since dropped by 12,192 crore over the past three years, reaching 79,498 crore in 2024-25. Despite this decline, the BMC remains the country’s richest municipal corporation, with a budget of 74,427 crore presented for 2025-26.
The decline in FDs is attributed to the BMC’s spending on large infrastructure projects, such as the Coastal Road (south) project, upgradation of sewerage treatment plants, and road concretisation works. Additionally, the BMC has provided funds to the Mumbai Metropolitan Region Development Authority (MMRDA) and the Brihanmumbai Electric Supply and Transport (BEST) undertaking. For instance, an FD of 949 crore with the State Bank of India was liquidated to be given to the MMRDA, while 250 crore and 113 crore were withdrawn from the SBI to provide subsidies to the BEST.
Experts have expressed concerns about the BMC’s financial management, citing the need for careful assessment of the extent of reserves required for emergencies. Milind Mhaske, CEO of the NGO Praja, suggested that locking up large sums in FDs serves little purpose and that these funds could be better utilized for public works. Former municipal commissioner Subodh Kumar warned that the BMC’s reserves could get quickly depleted if it continues to sanction new projects at the current pace, given its mounting obligations of nearly 2 lakh crore.
The BMC’s 2025-26 budget estimates a revenue income of 43,159 crore, which is about 21% higher than the 2024-25 estimates. The main contributors to this revenue are compensation in lieu of octroi, development plan fees and premiums, and property tax. However, with the BMC’s liabilities at nearly 2 lakh crore, there are concerns about the sustainability of its financial management and the potential exhaustion of its funds if it continues to take up new projects without adequate financial planning.
RBI Rate Cut Expected in September, According to SBI Research Forecast – BW Businessworld
According to a report by SBI Research, the Reserve Bank of India (RBI) is likely to cut interest rates in its September policy meeting. The research firm predicts that the RBI will reduce the repo rate by 25 basis points to 5.15%. This move is expected to provide a boost to the economy, which has been experiencing a slowdown.
The SBI Research report cites several factors that support a rate cut, including a decline in inflation, a slowdown in economic growth, and a reduction in crude oil prices. The report also notes that the RBI has been maintaining a accommodative monetary policy stance, which suggests that the central bank is willing to take measures to support economic growth.
The report states that the RBI’s decision to cut interest rates will depend on various factors, including the inflation trajectory, the growth outlook, and the global economic scenario. However, the research firm believes that a rate cut is likely, given the current economic conditions.
A rate cut by the RBI would have a positive impact on the economy, as it would reduce borrowing costs for consumers and businesses. This could lead to an increase in consumption and investment, which would help to boost economic growth. Additionally, a rate cut would also help to reduce the burden on borrowers, who have been facing high interest rates in recent times.
The SBI Research report also notes that the RBI’s decision to cut interest rates would be in line with the actions taken by other central banks around the world. Many central banks, including the US Federal Reserve, have been cutting interest rates in recent times to support economic growth.
Overall, the SBI Research report suggests that a rate cut by the RBI in its September policy meeting is likely, given the current economic conditions. The report predicts that the RBI will reduce the repo rate by 25 basis points to 5.15%, which would provide a boost to the economy and help to support economic growth. However, the final decision would depend on various factors, including the inflation trajectory, the growth outlook, and the global economic scenario.
It’s worth noting that the report is based on the analysis of the current economic conditions and the RBI’s previous actions, and the actual decision of the RBI may differ. The RBI’s September policy meeting is expected to be closely watched by market participants, as it would provide clues about the future direction of monetary policy in India.
The combined market capitalization of seven out of the top 10 most valuable companies surged by ₹1.18 lakh crore, with SBI and Airtel emerging as the largest gainers.
The combined market valuation of seven of the top-10 most valued firms in India increased by ₹1,18,328.29 crore last week. This surge was driven by an optimistic trend in equities, with the BSE benchmark rising 721.53 points or 0.88%. The biggest gainers were State Bank of India and Bharti Airtel, with their market valuations increasing by ₹35,953.25 crore and ₹33,214.77 crore, respectively.
The market capitalization of other top firms also saw significant gains. Reliance Industries’ valuation increased by ₹17,389.23 crore to ₹19,04,898.51 crore, while Tata Consultancy Services (TCS) saw a surge of ₹12,952.75 crore to ₹11,46,879.47 crore. Life Insurance Corporation of India (LIC) and Infosys also witnessed increases in their valuations, with LIC’s valuation rising by ₹12,460.25 crore to ₹5,65,612.92 crore and Infosys’ valuation climbing by ₹6,127.73 crore to ₹6,39,901.03 crore.
HDFC Bank’s market capitalization also went up by ₹230.31 crore to ₹14,84,816.26 crore. On the other hand, ICICI Bank, Bajaj Finance, and Hindustan Unilever were the laggards, with their market valuations declining by ₹10,707.87 crore, ₹6,346.93 crore, and ₹5,039.87 crore, respectively.
The ranking of the top-10 most valued firms remained largely unchanged, with Reliance Industries retaining its top spot, followed by HDFC Bank, TCS, Bharti Airtel, ICICI Bank, State Bank of India, Infosys, Bajaj Finance, Hindustan Unilever, and LIC. The gains in market valuation were driven by positive investor sentiment and an overall uptrend in the equity market. The increases in market capitalization reflect the growing confidence of investors in these companies and the Indian economy as a whole.
Comprehensive Financial Literacy Drive at Heningkunglwa to Promote Widespread Inclusion
A financial inclusion saturation campaign and Know Your Customer (KYC) re-verification program was held at the Heningkunglwa village council hall in Peren district on September 17, 2025. The campaign was organized by the State Bank of India (SBI) Regional Business Office (RBO) in Dimapur. The event aimed to promote financial literacy and awareness about social security schemes in rural communities.
Amresh Kumar Jha, General Manager of SBI’s Local Head Office in Guwahati, emphasized the importance of financial literacy in enabling improved financial decisions and access to banking services. He encouraged villagers to spread awareness about central government social security schemes. K Samuel Liangousiam, Assistant General Manager of the Reserve Bank of India (RBI) in Kohima, highlighted the grievance redressal mechanism available to the public.
Rongsenyangla, Lead District Manager of Peren, discussed key social security schemes, including the Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana, and Pradhan Mantri Jan Dhan Yojana. The Jalukie branch manager of SBI focused on the importance of KYC re-verification, nomination, unclaimed deposits, and prevention of cybercrime.
The program featured short speeches from various dignitaries, including Vinod Kumar, Director of the Department of Financial Services, and Sizin Renttah, Village Secretary of Heningkunglwa. A song was presented by inmates of Operation Salvage undergoing training at the Rural Self Employment Training Institute (RSETI). The event was chaired by Lilly Lotha, Director of SBI RSETI Peren, and attended by 114 participants.
The campaign aimed to promote financial inclusion and awareness about social security schemes in rural areas. The organizers emphasized the importance of financial literacy and the need for villagers to take advantage of government schemes and banking services. The event was part of a three-month financial inclusion saturation campaign and KYC re-verification program organized by SBI RBO Dimapur. The program’s objective was to enable improved financial decisions and access to banking services for rural communities.
KPI Green Energy secures Rs 32 billion loan from SBI, according to top executives.
KPI Green Energy, a leading renewable energy company, has secured a Rs 32 billion loan from the State Bank of India (SBI) to fuel its expansion plans. According to top executives, the loan will be used to finance the company’s ambitious growth strategy, which includes developing new renewable energy projects and expanding its existing portfolio.
The loan, which is one of the largest in the renewable energy sector, demonstrates the confidence of financial institutions in KPI Green Energy’s business model and growth prospects. The company has a strong track record of developing and operating renewable energy projects, and its partnership with SBI is expected to further accelerate its growth.
KPI Green Energy has a diversified portfolio of renewable energy projects, including solar, wind, and biogas power plants. The company has a strong presence in the Indian market and is also exploring opportunities in international markets. With the SBI loan, KPI Green Energy plans to develop new projects, including solar parks and wind farms, which will help to increase its renewable energy capacity and reduce India’s dependence on fossil fuels.
The loan agreement is a significant milestone for KPI Green Energy, and it underscores the company’s commitment to contributing to India’s renewable energy goals. The Indian government has set an ambitious target of achieving 40% of its energy capacity from non-fossil fuels by 2030, and companies like KPI Green Energy are playing a crucial role in helping to achieve this target.
The SBI loan will also help KPI Green Energy to reduce its debt costs and improve its financial efficiency. The company has a strong focus on sustainability and is committed to creating long-term value for its stakeholders. With the support of SBI, KPI Green Energy is well-positioned to achieve its growth objectives and make a meaningful contribution to the development of India’s renewable energy sector.
Overall, the Rs 32 billion loan from SBI is a significant development for KPI Green Energy, and it highlights the company’s strong growth prospects and its commitment to the renewable energy sector. With this funding, KPI Green Energy is expected to play an even more important role in helping to achieve India’s renewable energy goals and reducing the country’s dependence on fossil fuels.
The 13th Triennial General Council of the State Bank of India Officers’ Association, Chandigarh Circle, convened in Panchkula
The State Bank of India Officers’ Association, Chandigarh Circle, held its 13th Triennial General Council on September 14 at the Indradhanush Auditorium in Panchkula. The event was attended by over 2,000 SBI officers from various regions, including Jammu & Kashmir, Ladakh, Himachal Pradesh, Punjab, Haryana, and Chandigarh. The gathering was addressed by Krishan Sharma, Chief General Manager of SBI Chandigarh Circle, who commended the association’s efforts and emphasized the crucial role of officers in strengthening the country’s banking system.
The keynote address was delivered by Rupam Roy, General Secretary of AISBOF and AIBOC, who discussed the challenges facing bank officers and updated the delegates on recent developments. The council also heard from Com. Arun Kr Bishoyi, President of AISBOF, and senior dignitaries such as SBI General Managers Sh. Manmeet S. Chhabra and Sh. Neeraj Bharti. The event brought together delegates and senior leaders from multiple SBI circles across the country, making it a significant congregation of officer representatives.
According to Priyvrat, General Secretary of the SBI Officers’ Association (Chandigarh Circle), the triennial meeting provided a vital platform for collective discussion on key issues concerning the banking sector, officer welfare, and the association’s future goals. The meeting allowed officers to come together and address pressing concerns, enabling them to work towards a stronger and more efficient banking system.
The attendance of over 2,000 officers from various regions highlights the importance of the event and the association’s role in representing the interests of SBI officers. The participation of senior leaders and dignitaries from across the country added to the significance of the gathering, making it a crucial platform for discussion and decision-making. Overall, the 13th Triennial General Council of the SBI Officers’ Association, Chandigarh Circle, was a successful event that provided a valuable opportunity for officers to come together and work towards a common goal.
SBI Increases Auto-Debit Cap to Rs 50,000 from Rs 35,000: Impact on Your Savings Account Explained
The State Bank of India (SBI) has increased the minimum threshold limit for its auto-sweep facility in savings bank accounts from Rs 35,000 to Rs 50,000. This change is effective immediately and will benefit customers by providing them with higher interest rates on their surplus funds. The auto-sweep facility, also known as the Multi-Option Deposit (MOD) facility, is a type of fixed deposit linked to a customer’s savings or current account.
When the balance in a customer’s savings account exceeds the threshold limit of Rs 50,000, the excess amount is automatically transferred into an MOD. The MOD earns fixed deposit interest rates, which are higher than the normal savings account interest rate. This allows customers to earn a higher interest rate on their surplus funds without having to manually transfer them into a fixed deposit.
In case a customer’s savings account balance is insufficient to honor a debit mandate, SBI will partially or fully transfer the money back from the MOD scheme into their account. The interest on MOD is paid quarterly or on a compounded basis, and customers can withdraw their MOD prematurely, although a penalty may be applicable.
The SBI MOD scheme is designed to provide customers with a higher interest rate on their surplus funds, while also ensuring that they have sufficient liquidity to meet their financial obligations. With the increased threshold limit, customers can now keep a larger amount in their savings account before it is automatically transferred into an MOD.
The change is expected to benefit SBI customers who maintain a high balance in their savings accounts. The increased threshold limit will allow them to earn a higher interest rate on their surplus funds, while also providing them with greater liquidity and flexibility. Overall, the SBI MOD scheme is a convenient and flexible way for customers to manage their surplus funds and earn a higher interest rate, and the increased threshold limit is a welcome change for customers.
The government strives to propel two public sector banks into the ranks of the world’s top 20 global financial institutions.
The Indian government has set an ambitious target to have at least two public sector banks (PSBs) feature in the list of the world’s top 20 banks by 2047, when the country aims to achieve “Developed Nation” status. Currently, State Bank of India is the only Indian bank in the top 50 banks globally in terms of asset size. This goal was discussed at a recent “Manthan” event for PSBs, where officials and industry leaders agreed that to reach the top 20, PSBs need to expand their scale, strengthen governance, adopt digital banking and artificial intelligence, and build a stronger global footprint.
The government has indicated that consolidation is not part of the roadmap, marking a shift from the merger-driven approach seen in earlier phases of banking reforms. There are currently 12 PSBs, down from 27 in 2017, following a series of mergers. The government has instead urged banks to focus on improving their current account and savings account (CASA) deposits, which have been declining over the past year, putting pressure on their net interest margins.
The largest lender, SBI, saw a marginal decline in its CASA ratio in the June quarter, while Bank of Baroda’s CASA ratio also fell. Improving CASA deposits will also help banks in their lending to key sectors of the economy, such as agriculture and micro, small, and medium enterprises (MSMEs). The Ministry has asked banks to increase their lending to these sectors, which are critical to the Indian economy. The agriculture sector, in particular, is a vital contributor to national income and employment, with nearly 46.1% of the population engaged in agriculture and allied activities.
The government has made significant progress in increasing institutional credit disbursement to farmers, with the Kisan Credit Card (KCC) scheme seeing a significant increase in disbursements from ₹4.26 lakh crore in 2014 to ₹10.05 lakh crore by December 2024. Overall agricultural credit flow has also risen from ₹7.3 lakh crore in FY13-14 to ₹25.49 lakh crore in FY23-24. The government’s emphasis on lending to MSMEs and the agriculture sector is expected to continue, with a focus on promoting economic growth and job creation. While there is no specific timeline for achieving the goal of having two PSBs in the top 20, the government is committed to working towards this target by 2047.
Government to Organize Two-Day PSB Manthan Conference to Drive Banking Reforms
The Department of Financial Services (DFS) is set to organize a two-day meeting, “Manthan”, with public sector banks (PSBs) on September 12-13. The meeting, headed by DFS Secretary M Nagaraju, aims to discuss key issues such as interest rate cut transmission, credit growth, deposit mobilization, and potential consolidation in the PSB space. The goal is to transform PSBs into stronger institutions, increasing their productivity, digital capabilities, and resilience.
One of the key topics of discussion will be the exchange of ideas on consolidation in the PSB space. The previous mergers among PSBs have shown positive results, and the meeting will explore the potential for further consolidation to create global-scale banks. Currently, only two Indian banks, SBI and HDFC, are among the top 100 global banks by total assets, which is not sufficient compared to banks from China and the US.
The meeting will also focus on expanding bank credit to drive India’s ambition of becoming a $30 trillion economy by 2047. The bank credit to the private non-financial sector needs to increase from 56% of GDP to around 130%. As of June 30, 2025, credit outstanding stood at Rs 183.4 lakh crore, with a growth rate of 9.9% year-over-year. However, the credit growth has slowed down, primarily due to a decline in the growth of NBFCs and a decrease in credit growth in the services and personal loan segments.
The meeting will also touch upon reforms required to increase productivity, deepen digital and data capabilities, and build future readiness in terms of resilience and governance. The discussion will likely include the role of foreign direct investment (FDI) in India’s private banking sector, where FDI is allowed up to 74% in private sector banks and 20% in public sector banks.
Overall, the “Manthan” meeting aims to propel PSBs towards becoming stronger, more resilient, and globally competitive institutions, driving India’s economic growth and ambition. The outcome of the meeting is expected to have a significant impact on the Indian banking sector and the country’s economic development. With the government’s goal of creating a $30 trillion economy by 2047, the meeting’s discussions and decisions will be crucial in shaping the future of India’s banking sector.
NCLT Rules in Favor of SBI: Lease Dues Accrued Before Insolvency Transfer Date Must Be Paid to Financial Creditors
The Hyderabad bench of the National Company Law Tribunal (NCLT) has ruled in favor of the State Bank of India (SBI) in a case related to lease dues incurred during the corporate insolvency resolution period. The SBI had filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking direction to the Successful Resolution Applicant (SRA) to pay the lease amount of Rs 74,56,673 for the period from August 1, 2023, to October 13, 2023.
The case involves M/s Srikanth International Private Limited, a corporate debtor that had availed financial assistance of Rs 33.50 crores from the SBI. The corporate debtor had offered its marine processing plant as security, and a lease agreement was executed between the SRA and the corporate debtor for a period of six years. The lease rentals were payable directly into the SBI’s account.
However, due to default in repayment of the loan, the corporate insolvency resolution process was initiated against the corporate debtor, and the SRA was appointed as the resolution professional. The SRA had approved the resolution plan, which was accepted by the SBI, but the lease rentals for the period from August 1, 2023, to October 13, 2023, remained unpaid.
The SRA contended that the lease rentals were not payable as they had been transferred to the SBI after the vesting date. However, the SBI disputed this interpretation, arguing that the lease amounts claimed pertained to the CIRP period, prior to the vesting date, and were therefore payable to the SBI.
The NCLT bench, comprising Justice Rajeev Bhardwaj and Sanjay Puri, observed that the obligation to pay lease rentals during the CIRP period continues until the date of approval of the resolution plan and is not extinguished merely due to a change in legal status from lessee to Successful Resolution Applicant. The bench held that the SRA had retained its status as a resolution applicant during the period in question and was obligated to pay rentals to the corporate debtor under the lease terms.
The tribunal ruled that the obligation to pay lease rentals accrued during the CIRP period continues until the vesting date and that the SRA is liable to pay the corresponding rentals. The NCLT directed the SRA to pay the admitted liability of Rs 74,56,673 to the SBI for the period from August 1, 2023, to October 13, 2023. The ruling sets a precedent for similar cases, clarifying the liability of SRAs to pay lease rentals during the CIRP period.
Motilal Oswal Unveils Top Financial Stock: HDFC Bank, ICICI Bank, or SBI – Is Yours the Chosen One?
Motilal Oswal, a brokerage firm, has identified its top picks in the banking sector, selecting ICICI Bank, HDFC Bank, and SBI due to their strong balance sheets, healthy provisions coverage ratio, and relatively better growth prospects. The firm’s report highlights the current challenges facing the banking sector, including margin pressures and lending rates. Following a 100 basis point repo cut in CY25, system yields have eased by approximately 50 basis points, although some large private banks have reported only limited declines.
The report notes that banks are navigating a tricky environment, with the Weighted Average Lending Rate (WALR) on fresh loans declining 45 basis points over the past six months. Private banks have experienced a sharper drop of 58 basis points, while public sector banks have seen a 41 basis point reduction. Furthermore, the WALR on outstanding loans for the system has eased 6 basis points month-on-month, reflecting a slower pace of decline for public sector banks compared to private banks.
Motilal Oswal expects deposit costs to moderate gradually as term deposits reprice over the second half of FY26, providing support for margin recovery. The firm also anticipates that Q2FY26 will be the most challenging quarter for banks, marked by sharper NIM contraction, muted loan growth, and persistent stress in segments like unsecured and commercial vehicle loans. However, a recovery is expected from Q3FY26, supported by CRR cuts and a pick-up in demand led by reductions in GST and income tax rates.
The report emphasizes the importance of strong liability profiles in cushioning margin stress and ensuring balance sheet resilience, particularly as loan growth remains muted. From Q3 onwards, NIMs are expected to benefit from deposit repricing and phased CRR cuts, while asset quality pressures in unsecured retail and microfinance segments show early signs of stabilization. Overall, Motilal Oswal’s top picks in the banking sector are well-positioned to mitigate downside risks to earnings and capitalize on growth opportunities.
A second round of consolidation is expected for Public Sector Banks
The Indian government is considering further consolidation among public sector banks (PSBs) to create larger lenders that can compete globally. The last major restructuring in 2020 reduced the number of state-run banks from 27 to 12. The government is now open to further consolidation if it can identify synergies between banks. According to an official, the target is to create at least three to four large banks.
The discussion on consolidation will be part of the PSB Manthan, a two-day summit scheduled for later this month. The summit will also focus on business and operational strategies for PSBs. Additionally, banks will hold consultations with key infrastructure financing firms, such as the National Bank for Financing Infrastructure and Development (NaBFID) and India Infrastructure Finance Company (IIFCL), to unlock more capital for infrastructure finance.
India needs to invest around $4.5 trillion by 2040 to develop its infrastructure and sustain economic growth. To achieve this, the country needs bigger banks that can drive credit growth in alignment with specialized firms. Currently, only two domestic banks, SBI and HDFC Bank, are among the top 100 global lenders by assets.
Credit growth in India has been moderating, with non-food credit growth easing to 9.9% in July, down from 13.7% in July 2024. Industrial credit demand remains weak, with lending to large industries growing by less than 1% in July. This is attributed to subdued private capital expenditure, which remains low. The previous PSB Manthan was held in 2022, and this year’s summit is expected to provide a roadmap for PSBs to drive growth and improve their competitiveness.
As a reliable and trusted news source, it is reported that the government’s push for consolidation among PSBs is aimed at creating larger lenders that can support the country’s economic growth. The PSB Manthan will provide a platform for banks to discuss their strategies and outline a plan to achieve this goal. With India’s infrastructure financing needs being a major focus area, the summit is expected to play a crucial role in shaping the future of the banking sector in the country.
Gunmen steal Rs 2.5 lakh from SBI customer service point in Hazaribag, sparking alarm in the area.
A daring robbery took place at a State Bank of India customer service point in Hazaribag’s Katkamdag block on Tuesday. Two men looted Rs 2.5 lakh from the facility after holding the owner, Khelwanti Kumari, at gunpoint. The incident occurred around 10:30 am, shortly after Kumari opened the office. The duo arrived, claiming they wanted to withdraw Rs 10,000, but their true intentions were soon revealed.
As Kumari switched on the inverter, one of the men held her at gunpoint, covered her mouth, and snatched a bag containing Rs 2.52 lakh in cash. The perpetrators then fled the scene, pulling down the shutter and trapping Kumari inside. She managed to raise an alarm, and locals responded quickly to rescue her.
The police have launched an investigation into the incident, with Pramod Rai, the officer in charge of Katkamdag police station, stating that they are scanning CCTV footage and gathering evidence to track down the culprits. The authorities plan to conduct raids in neighboring villages to apprehend the duo. However, as of the evening, a formal complaint had not been registered.
The robbery has raised concerns about the security of customer service points, particularly in rural areas. The fact that the perpetrators were able to carry out the loot without being detected initially highlights the need for improved security measures. The police are working to identify the suspects and bring them to justice, but the incident has left the local community shaken.
The investigation is ongoing, and the police are urging anyone with information about the incident to come forward. The authorities are also reviewing security protocols to prevent similar incidents in the future. The robbery has resulted in a significant financial loss for Kumari, and the community is hoping for a swift resolution to the case.
Education News: SBI Clerk Prelims Exam Scheduled to Take Place on September 20, 2025
The State Bank of India (SBI) has announced the examination dates for the Junior Associates- Customer Support and Sales (SBI Clerk) recruitment examination 2025. The online preliminary exam is scheduled to take place on September 20, 21, and 27, 2025. Admit cards for the exam will be released soon, and candidates can download them from the official SBI website, sbi.co.in.
This recruitment drive aims to fill 6,589 Junior Associate vacancies, including both regular and backlog positions. To be eligible, candidates must be between 20 and 28 years old as of April 1, 2025. The preliminary exam will consist of objective-type questions worth 100 marks, and candidates will have one hour to complete it.
After the prelims results are declared, shortlisted candidates will be allowed to appear for the mains examination and a language test. The mains exam will comprise 190 questions carrying 200 marks, and will be held for 2 hours and 40 minutes. Additionally, a ‘Local Language Proficiency Test’ will be conducted for provisionally selected candidates who did not study a specified local language in class 10 or 12.
The SBI Clerk exam is conducted annually to recruit candidates for the position of Junior Associate (Customer Support and Sales). These clerks play a crucial role in handling customer service, bank transactions, account management, and other essential front-desk operations at SBI branches across India. The exam is a great opportunity for candidates to join one of India’s leading banks and start a rewarding career in the banking sector.
Candidates who are interested in applying for the SBI Clerk exam should ensure they meet the eligibility criteria and are prepared for the exam. They can check the official SBI website for updates on the admit card release and other important information. With the exam dates announced, candidates can now start preparing in earnest and work towards securing a position as a Junior Associate with the State Bank of India.
Anil Ambani Faces Triple Threat: Bank of Baroda Brands Him a Fraud, Putting ₹1656 Crore at Risk
Anil Ambani, the chairman of Reliance Group, is facing mounting troubles as Bank of Baroda has declared him and Reliance Communications (RCom) as fraudsters. This makes Bank of Baroda the third major lender to take this action, following the State Bank of India (SBI) and Bank of India (BOI). The declaration comes after RCom failed to repay a significant portion of the ₹2,462.50 crore credit lines extended by Bank of Baroda, with ₹1,656.07 crore remaining unpaid. The account has been classified as a non-performing asset (NPA) since June 2017.
The Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) are already investigating multiple cases involving Ambani’s companies. In recent months, the ED raided over 35 locations linked to Reliance Group entities, while the CBI conducted searches at Ambani’s residence in Mumbai in connection with a ₹2,929 crore bank fraud case tied to SBI.
RCom has termed the allegations “baseless” and clarified that the case relates to a 12-year-old matter. The company spokesperson emphasized that Anil Ambani served only as a non-executive director between 2006 and 2019, with no role in daily operations. Reliance Power, another group company, also stated that Bank of Baroda’s move would not affect its trade operations or financial performance.
The declaration of fraud has significant legal and financial implications. Under banking laws, the borrower is barred from accessing fresh funds for five years once an account is declared fraudulent. With multiple lenders taking action against Ambani’s companies, the pressure on his corporate empire has intensified. Personal bankruptcy proceedings against Anil Ambani are also pending before the National Company Law Tribunal (NCLT) in Mumbai.
The latest action is another blow to Ambani’s business empire, which is now deeply entangled in debt, litigation, and regulatory scrutiny. RCom has been under insolvency proceedings since 2019, with total debts exceeding ₹40,000 crore. The developments have raised concerns about the future of Reliance Group and its ability to recover from the mounting troubles. As the investigations and legal proceedings continue, the outcome remains uncertain, and the fate of Ambani’s corporate empire hangs in the balance.