Banking

The Reserve Bank of India is poised to assume responsibility for managing the banking operations and public debt of the Delhi government, marking a notable shift in the capital’s fiscal administration framework. The move is expected to strengthen financial oversight, enhance transparency and bring Delhi’s debt management practices in line with established sovereign standards. By placing these functions under the country’s central bank, policymakers aim to improve cash-flow efficiency, streamline borrowing operations and reinforce institutional credibility.

State Bank of India has taken a strategic step to strengthen bilateral commerce between India and Israel by promoting trade settlement in Indian rupees. The initiative aims to reduce dependence on hard currencies, lower transaction costs and enhance financial resilience amid global volatility. By encouraging exporters and importers to invoice and settle transactions in Rs., the country’s largest lender is supporting the broader national objective of internationalizing the rupee.

Bank of Maharashtra reported a robust 20% year-on-year increase in its loan book during the third quarter, reflecting sustained credit demand across retail, agriculture and small business segments. The performance underscores the lender’s improving market position, supported by disciplined underwriting, expanding branch outreach and growing customer confidence. Management attributed the growth to a calibrated lending strategy that balances expansion with asset quality.

India’s banking sector is bracing for potential nationwide disruption as major bank unions have threatened a countrywide strike on Jan. 27, following a breakdown in negotiations with the Indian Banks’ Association. The dispute centers on unresolved wage revision demands, pension reforms and workload concerns amid rapid digitization and consolidation in the sector. Union leaders argue that prolonged delays and inadequate offers have left employees with little choice but industrial action.

Bandhan Bank reported a 10 percent year-on-year increase in its loan book during the December quarter, signaling steady credit demand amid a mixed macroeconomic environment. The growth was driven by continued traction in core lending segments, supported by improving asset quality and disciplined underwriting. While the banking sector faces pressures from funding costs and regulatory scrutiny, Bandhan Bank’s performance highlights a gradual normalization following recent challenges.

Indian equity markets staged a strong rally as benchmark indices Nifty and Sensex recorded sharp gains, led by robust buying in power and banking stocks. The surge reflected renewed investor confidence amid easing global concerns and selective sectoral optimism. Heavyweight lenders and energy companies outperformed, supported by expectations of steady credit growth, infrastructure spending, and balance-sheet strength. Market participants attributed the momentum to a mix of domestic liquidity, institutional inflows, and improved earnings visibility.

UCO Bank posted a 13% year-on-year increase in global business during the third quarter, with total business rising to Rs. 5.54 lakh crore. The growth was driven by a steady rise in both advances and deposits, reflecting improving operational traction and customer confidence. The performance underscores the public sector lender’s continued recovery, supported by disciplined lending practices and stable deposit mobilization.

Punjab National Bank reported a 9.57% year-on-year increase in global business during the third quarter, reflecting steady growth across both advances and deposits. The performance underscores the public sector lender’s improving balance-sheet strength and sustained credit demand in key segments. Management attributed the expansion to disciplined lending, higher retail participation, and improved asset quality. The growth comes amid a competitive banking environment marked by tight liquidity and cautious borrower sentiment.

India’s banking sector is expected to record a further improvement in asset quality over the next two years, with non-performing assets projected to decline steadily by March 2027. According to the Reserve Bank of India, stronger capital buffers, prudent lending practices and sustained economic growth are helping lenders contain credit risk. The central bank’s assessment suggests that banks are better positioned to absorb potential shocks even under adverse macroeconomic conditions.

The Reserve Bank of India (RBI) has announced that 98.41% of Rs 2,000 banknotes issued since their introduction have been returned, indicating robust compliance in currency circulation management. The high return rate underscores the effectiveness of RBI’s demonetization and currency monitoring measures, while reflecting public adherence to banking protocols. Analysts suggest that the residual 1.59% represents notes that remain in circulation due to cash holdings or logistical delays.