Banking

The State Bank of India (SBI) Chairman has called for taxation parity between bank deposits and equity investments, highlighting a structural imbalance that discourages long-term investment in equities. Speaking at a financial forum, he emphasized that disproportionate taxation on fixed deposits compared to capital gains from equities has created suboptimal investment behavior, leading to lower market participation and savings inefficiency.

The World Bank has reaffirmed its long-term commitment to India by announcing plans to deploy between USD 8 billion and USD 10 billion annually to support the country’s development priorities. The funding is expected to span infrastructure, climate resilience, social inclusion, and institutional reforms, reinforcing India’s growth trajectory amid global economic uncertainty. The commitment underscores international confidence in India’s macroeconomic stability and reform momentum.

Bank credit to Indian industry recorded a robust 13.3 percent year-on-year increase in December, signaling a steady revival in corporate borrowing and investment appetite, according to data released by the Reserve Bank of India. The expansion reflects improved demand across manufacturing, infrastructure, and select service sectors, supported by healthier balance sheets and a gradual pickup in capital expenditure. While retail lending continues to be the primary growth driver for banks, the renewed traction in industrial credit suggests a broadening of the credit cycle.

Bank of Baroda reported a strong financial performance in the third quarter, marked by a rise in net profit and a notable improvement in asset quality. The state-owned lender benefited from steady credit growth, stable margins, and lower provisioning requirements as non-performing assets continued to decline. Improved recoveries and disciplined risk management strengthened the balance sheet, while operating efficiency supported earnings momentum.

State Bank of India reaffirmed its focus on performance-driven culture and employee motivation with the latest edition of its STAR Awards, a flagship recognition program celebrating exceptional contributions across the organization. The awards highlighted individual and team excellence in areas ranging from customer service and digital innovation to credit growth and risk management.

Canara Bank reported a significant 25% increase in net profit for the third quarter, reaching Rs 5,254 crore, driven by strong loan growth, improved asset quality, and disciplined cost management. The bank’s advances expanded across retail and corporate segments, while non-performing assets moderated, supporting profitability. Net interest margins remained stable, aided by optimized funding costs. Analysts note that Canara Bank’s strategic focus on digital banking, retail expansion, and prudent risk management has enhanced operational resilience.

Punjab & Sind Bank has announced plans to establish a new branch at Gujarat International Finance Tec-City (GIFT City), signaling a strategic push to strengthen its presence in India’s premier international financial hub. The move reflects the bank’s intent to tap into emerging opportunities in global banking, offshore financial services and cross-border transactions. By entering GIFT City, Punjab & Sind Bank aims to broaden its corporate banking portfolio, support trade finance activities and align its operations with India’s evolving financial architecture.

India’s trade strategy is at a pivotal moment as the World Bank underscores both the constraints posed by tariff structures and the expanding opportunities in global commerce. While protective duties have supported select domestic industries, they also risk limiting export competitiveness and integration into global value chains. The World Bank’s assessment points to the need for a calibrated trade framework—one that balances domestic priorities with outward-looking reforms.

CSB Bank Ltd. reported a flat net profit of Rs. 153 crore for the third quarter, reflecting steady operational performance amid a challenging macroeconomic environment. While core lending and fee-based income remained stable, muted credit growth and elevated provisioning requirements constrained earnings expansion. The bank maintained asset quality metrics within acceptable levels, supported by disciplined risk management and cautious lending practices.

In a landmark move aligned with the EU-India Free Trade Agreement (FTA), several European banks have announced plans to open 15 new branches across India, signaling strengthened financial ties and confidence in the Indian market. This expansion aims to facilitate cross-border trade, provide advanced banking services, and enhance corporate and retail banking capabilities. Analysts view this as a significant vote of confidence in India’s regulatory environment, economic growth, and investment potential.