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मार्च
ARANSH
बैंककक
किंिं ग
ग एविं
एविं सम्बिं
सम्बिंककित
ित क्षे
क्षेत्र
त्रोंों पर
पर माकसक
माकसक ई-पकत्रका
ई-पकत्रका
March बैं
Monthly eMagazine
Monthly eMagazine on
on Banking
Banking and
and Allied
Allied Areas
Areas
2025

वं सम्बंधित क्षेत्रों पर माधसक ई-पधत्रका”

“A Monthly eMagazine on
Banking & Allied Areas”

“बैंधकंग एवं सम्बंधित क्षेत्रों पर माधसक ई-

पधत्रका”
“A Monthly eMagazine on
Banking & Allied Areas”

Information and updates on

▪ State Bank of India
▪ Financial and Allied Regulators – India
▪ National and International News
▪ Banking Technology and Cyber Security

Compiled & prepared by Mr. Trilok Singh, CM (LIB.), SBIIT

 े / Message
संदश

Dear Colleagues,

The BFSI sector continues to be a cornerstone of the global

economy, but it faces an array of challenges - ranging from shifting
geopolitical landscapes and evolving regulations to rising cyber
threats and fast-paced technological advancements. While these
changes present obstacles, they also open up new avenues for
growth and innovation. The pace at which the industry is
transforming has never been faster, making agility and
forward-thinking essential for success.

In today’s dynamic environment, staying ahead is no longer

Ranjan Kumar Nayak
optional—it's crucial. Professionals in the BFSI sector must be
GM & Director
prepared to adapt to evolving regulations, embrace fintech
innovations and respond to global economic shifts. Staying
informed, adaptable and proactive will be the key to maintaining
a competitive edge.

We are pleased to present the latest issue of Saransh, our monthly

eMagazine. This issue covers the most recent news, updates,
expert insights and key takeaways from the BFSI sector and
related industries.

To enrich your reading experience, the content is organized under

stage-wise headings, each featuring clickable links for easy
navigation:
• State Bank of India
• Financial and Allied Regulators – India
• National and International News
• Banking Technology and Cyber Security
• Selected videos/podcast on BFSI and Allied Areas

We believe, this endeavour of our Institute will help you keep

abreast of the latest developments in BFSI and related areas.

Happy Reading!
 े / Message
संदश

Dear Colleagues,

We are pleased to present the latest edition of Saransh, our institute’s

eMagazine focussed to the ever-evolving world of Banking, Financial
Services and Insurance (BFSI). In this issue, we cover key news, events
and insightful perspectives that have shaped the sector over the past
month.
Our goal is to provide you with a comprehensive update on the latest
trends and developments in these areas, ensuring you stay informed
and ahead of the curve.

K. P. Shobha Rani We believe that you will find this magazine both informative and
Dy. General Manager (R&A) valuable.

As always, we welcome your suggestions and feedback.

Happy Reading!
 Note : Click on the links given below to read news /articles/ reports, etc.

I. State Bank of India.................................................................................... 2

▪ SBI Q3 net profit up 84.32% at Rs 16,891 cr, margins under pressure ............................................................. 3
▪ SBI’s growth prospects remain strong despite NIM pressure, loan market share to rise ................................. 3
▪ SBI aims to better CASA ratio to 40% to lower funding cost: Setty ................................................................... 3
▪ State Bank of India sees sector's personal loan woes easing on tighter credit rules ......................................... 4
▪ Public Banks outpace private peers in expansion; SBI, Canara add most branches in Q3 ............................... 4
▪ SBI cuts home loan rates after RBI repo rate reduction ..................................................................................... 4
▪ Impact of US tariff reciprocity on Indian exports likely to be limited: SBI ....................................................... 4
▪ ‘We still have a very big personal loans runway’, says SBI chairman ................................................................ 5
▪ SBI aims to be Net-Zero by 2055: Chairman C S Setty ....................................................................................... 5
▪ SBI stares at earnings slowdown for two years as RoE and RoA set to drop ..................................................... 5
▪ SBI Life Insurance appoints Dorababu Daparti as Deputy CEO ........................................................................ 5
▪ Can add one SBI to ourselves every six years if we grow at 12% CAGR: SBI chairman CS Setty ..................... 6
▪ Gamification, hyper-personalisation and more in YONO 2.0, says SBI chairman ........................................... 6
▪ India’s Q3 GDP growth expected between 6.2- 6.3%; worst of slowdown may be behind for Indian economy
................................................................................................................................................................................ 6
II. Financial and Allied Regulators – India ................................................... 7
▪ Union Budget 2025: Finance Minister announces 100% FDI in Insurance sector ...........................................8
▪ Union Budget 2025: Top announcements by FM Sitharaman for the Finance Sector .....................................8
▪ FM sticks to fiscal prudence, Sets FY26 deficit target at 4.4% ...........................................................................8
▪ Budget 2025: Govt tightens crypto reporting norms, new compliance rules from April 2026 ........................8
▪ Union Budget 2025: Govt foresees India Post Payment Bank as catalyst for rural economy .......................... 9
▪ RBI partially devolves 10-yr green bond; $/rupee swap attracts 5 times bids .................................................. 9
▪ RBI considering hiking ATM cash transaction, interchange fees ...................................................................... 9
▪ PSBs strongly capitalised and ready to fuel economic growth: FinMin ............................................................. 9
▪ MP priority sector has a credit potential of Rs 3.13 trillion, says Nabard ....................................................... 10
▪ RBI ends rate cut wait; Sanjay Malhotra stresses 'less restrictive' policy ........................................................ 10
▪ RBI to introduce forward contracts in govt securities: Governor Malhotra .................................................... 10
▪ RBI's internal committee reviewing economic capital framework: Governor................................................. 10
▪ RBI to introduce exclusive internet domains for banks and non-banks ...........................................................11
▪ Draft LCR, project financing norms not to be implemented before March 2026 ............................................11
▪ RBI to review mkt trading, settlement timings to enhance scope, liquidity .....................................................11
▪ RBI introduces extra security for international online payments with AFA ....................................................11
▪ RBI cuts key policy rate for first time in 5 years ................................................................................................ 12
▪ RBI opens NDS-OM platform for stock brokers to boost retail participation ................................................. 12
▪ Slowing growth of unsecured loans satisfactory: RBI Governor Malhotra...................................................... 12
▪ RBI banning bank business last resort but in public interest says new governor ........................................... 13
▪ Finance ministry no to public sector banks taking haircut on MTNL loans .................................................... 13
▪ RBI Approves Amalgamations of Citizen Cooperative Bank with TJSB and PCC Bank with PCS Bank ....... 13
▪ Banks set to hold deposit rates steady for now, cuts expected post-March ..................................................... 13
 ▪ Rising gold loan NPAs signal stress in household finances .............................................................................. 14
▪ RBI extends UPI credit line facility to Small Finance Banks ............................................................................ 14
▪ RBI imposes curbs on New India Co-operative Bank on supervisory concerns .............................................. 14
▪ Bima Vahak's portal is ready for soft launch in April 2025, says Irdai ............................................................ 14
▪ RBI lets funds flow to tackle liquidity deficit ..................................................................................................... 15
▪ Bank deposit insurance limit to be raised soon: Financial services secretary ................................................. 15
▪ Reserve Bank launches RBIDATA App for simplify access to economic data ................................................. 15
▪ Reserve Bank of India issues norms for forward contracts in G-secs .............................................................. 15
▪ RBI announces mega $10 billion FX swap to infuse rupee liquidity ............................................................... 16
▪ RBI warns of excessive unsecured loans, euphoria over derivative products ................................................. 16
▪ Reserve Bank of India for foreclosure of biz loans to MSEs, individuals ........................................................ 16
▪ Pvt corporate sector posts 8% on-year sales growth in Q3, margins rise: RBI ............................................... 16
▪ RBI curbs show effect; personal loan growth moderates in Q3 ....................................................................... 17
▪ Reserve Bank of India frees up bank capital with NBFC risk weight rollback ................................................ 17
▪ India's central bank relaxes certain norms for urban co-operative banks ....................................................... 17
▪ Sebi slaps Rs 5.05 cr fine on Indian clearing corporation for regulatory lapses ............................................. 17
▪ Govt appoints Finance Secretary Tuhin Kanta Pandey as next Sebi chief ....................................................... 18
▪ Reserve Bank of India conducts $10 bn forex swap to inject liquidity ............................................................ 18
III. National and International News ............................................................ 19
▪ International Finance Centres get a booster shot in Budget ........................................................................... 20
▪ Budget 2025: ULIPs no more income from other sources, to be taxed as capital gains from April 1 ........... 20
▪ Budget 2025: Govt tightens crypto reporting norms, new compliance rules from April 2026 ..................... 20
▪ Economic Survey: 8% growth needed to reach 'Viksit Bharat' goal by 2047 .................................................. 20
▪ Economic Survey 2024-25: Services, debt improve external situation ........................................................... 21
▪ Union Budget 2025: Major announcements and all you need to know ........................................................... 21
▪ Multiple demat accounts held against single PAN surge 500% since FY17 ..................................................... 21
▪ Casa, term deposits more than double in 10 years, says Pankaj Chaudhary ................................................... 21
▪ India's pace of debt reduction remains gradual, says Fitch Ratings ................................................................ 22
▪ NaBFID raises Rs 5,000 crore via 15-year bonds at 7.25% cut-off rate ........................................................... 22
▪ Bank gold loan disbursals up 71.3% to Rs 1.72 trillion in 9MFY25 .................................................................. 22
▪ NaBFID extends Rs 2,000 crore loan to Blackstone-backed data centre ........................................................ 22
▪ LIC's Q3 FY25 results: Net profit rises 17% to Rs 11,056.5 crore ..................................................................... 23
▪ India's student housing market expected to expand as demand rises ............................................................. 23
▪ Jammu and Kashmir Bank receives GST notice of over Rs 16,000 crore ........................................................ 23
▪ 40% of Indian farmers now paying electronically, says McKinsey survey ...................................................... 23
▪ Q3 results review: Low core income, slippages hit banks' profitability ...........................................................24
▪ Foreign sales in financials drive second-highest monthly outflows in Jan .....................................................24
▪ Gold demand up 1% in 2024, to remain supported by economic uncertainty: WGC .....................................24
▪ Gold consumption in India to cool in 2025 as prices soar, says WGC .............................................................24
▪ Union Cabinet approves new income-tax Bill; law set to be simpler ............................................................... 25
▪ Severe delays in Rs 1 trillion national highway projects: CareEdge Ratings ................................................... 25
▪ Life insurance new business premiums fall 8.15% to Rs 30,825 cr in Jan ...................................................... 25
▪ Banks' net interest margins likely to decline further after RBI rate cut .......................................................... 25
▪ HDFC Bank raises MCLR on overnight tenure by 5 basis points to 9.20% .....................................................26
▪ Bid to mitigate margin impact: Life insurers rejig agent fee structures ..........................................................26
▪ Private life insurers to lead APE growth in FY25 as LIC struggles ...................................................................26
▪ Rising gold loan NPAs signal stress in household finances ..............................................................................26
▪ Airtel Payments Bank Q3 profit surges 70% to Rs 18.5 crore ........................................................................... 27
▪ HDFC Bank launches India's first salary account with cyber fraud protection for PSU employees .............. 27
▪ Karnataka governor approves ordinance to curb coercive microfinance practices ......................................... 27
▪ FPI selloff leads to worst equity market start in nearly 10 years ...................................................................... 27
▪ RBI lifts restrictions from Kotak Mahindra Bank onboarding customers online, issue credit cards ............28
▪ SIDBI ties up with France's AFD for USD 100 million credit line ...................................................................28
▪ Income-Tax Bill empowers taxman to ask for access to electronic systems ....................................................28
▪ What ails cooperative banks? Over 60 banks closed during NDA govt rule since 2014 .................................28
▪ Public Banks outpace private peers in expansion; SBI, Canara add most branches in Q3 .............................29
▪ From Aadhaar to Bhashini, India's digital services grow in numbers .............................................................29
▪ Pick up in private capex to improve loan growth from H2FY26: Report ........................................................29
▪ Entire claims settled by deposit insurer was for co-op banks in FY24 ........................................................... 30
▪ What is Mutual Credit Guarantee Scheme for MSMEs facilitating Rs 100 crore loan? ................................. 30
▪ Government actively considering raising deposit insurance limit beyond Rs 5 lakh ..................................... 30
▪ Bank of Maharashtra gets RBI nod for opening GIFT City branch ................................................................. 30
▪ Karnataka Bank reports to RBI suspicious cross border UPI transaction of Rs 18.87 crore .......................... 31
▪ Banking sector faced Greater-ThanExpected pressure in Q3FY25: Report .................................................... 31
▪ 57% of borrowers under 30 use loans for investing in skills: Report ............................................................... 31
▪ Earning Indians allocating over 33 pc of income towards paying loan EMIs: Report .................................... 32
▪ Provisioning for NPAs up 20% in December, driven by sharp rise in private sector bank provisions .......... 32
▪ PNB reports Rs 270.57 crore loan fraud by Gupta Power Infrastructure ........................................................ 32
▪ India’s pension AUM to grow to Rs 118 trillion by 2030: DSP Pension Fund Managers ............................... 32
▪ India's insurance market poised to reach $222 bn by 2026, growing at 17% CAGR: Report ......................... 33
▪ Public Sector Banks disburse over INR 14.5 trillion to MSMEs in Q3 FY25, SBI leads credit share ............. 33
▪ HSBC India's pre-tax profit up 11% in 2024 ...................................................................................................... 33
▪ Weaker rupee lifts NRI deposit inflows 42.8% to $13.33 billion in April-December 2024 ............................ 33
▪ Irdai asks insurers to provide ASBA facility for premium payments ............................................................... 34
▪ Lower salary earners spending on essentials, debt servicing: Report .............................................................. 34
▪ India ranked second-least favoured in Asia Pacific, says BofA survey ............................................................ 34
▪ After PNB, THIS state-owned lender reports ₹227-crore loan fraud by Odisha-based firm to RBI.............. 34
▪ AMFI launches 3 new investor initiatives: Chhoti SIP, Tarun Yojana, MITRA .............................................. 35
▪ Centre kickstarts process for stake sale in PSBs and listed PFIs ...................................................................... 35
▪ Yes Bank tops S&P Global’s sustainability rankings, only Indian Bank in yearbook 2025 ............................ 35
▪ Banks slash lending and deposit rates after RBI’s repo rate cut ...................................................................... 35
▪ Gold leasing prices surge as banks redirect the precious metal to US ............................................................. 36
▪ Outward remittances see a spike of 19 % in Dec '24 ......................................................................................... 36
▪ 'Rising temperature may increase probability of default in 30% of agri loan portfolio by 2030' .................. 36
▪ Banks continue to rely on certificates of deposits amid liquidity woes............................................................ 36
▪ Credit card spending rises by 10.8% to Rs 1.84 trn in Jan 2025: RBI data ..................................................... 37
▪ Microfinance loan book shrinks 3.5% to Rs 3.85 trillion in Dec quarter ......................................................... 37
▪ Bank of Maharashtra slashes rate by 25bps ...................................................................................................... 37
 ▪ India seeks advisers for minority stake sales in state-run banks, financial firms ........................................... 37
▪ Stress in credit card segment to peak in coming 1 or 2 quarters: Phillip Capital Report ...............................38
▪ Life insurers face valuation risks as IRDAI weighs bancassurance limits .......................................................38
▪ 'RBI's loan prepay fee ban to hit NBFCs more than banks' ..............................................................................38
▪ NBFCs drive financial inclusion with Maharashtra, Gujarat leading contractual workforce: TeamLease
Report ..................................................................................................................................................................38
▪ Axis Bank is said to weigh majority stake sale of $1 bn shadow bank unit ...................................................... 39
▪ HDFC Bank tops credit card market, SBI leads in debit cards as of Jan ‘25 ................................................... 39
▪ Reducing fiscal deficit to around 3% of GDP difficult: Govt to IMF ................................................................ 39
▪ SIP closures more pronounced in direct space amid equity market fall .......................................................... 39
▪ Major issuers raise nearly Rs 17,000 crore through bonds on Thursday ....................................................... 40
▪ US economy expanded at 2.3% from Oct to Dec on robust consumer spending ........................................... 40
▪ India's GDP growth picks up to 6.2% in Q3; FY25 projection now 6.5%........................................................ 40
▪ India and Japan renew $75 billion bilateral currency swap agreement ......................................................... 40
▪ India needs 7.8% growth for 22 yrs to be high-income by 2047: World Bank ................................................ 41
▪ Gold loan offtake stays strong amid retail loan moderation in January .......................................................... 41
▪ 16% of card spends happen on RuPay, half of it on credit via UPI: NPCI ....................................................... 41
▪ India's core sectors' output grew 4.6% in January, shows govt data ...............................................................42
▪ Citigroup mistakenly credits customer account $81 trn in 'near miss' ............................................................42
▪ Bank of Baroda enables small shops to offer loyalty programmes using eRupee ...........................................42
▪ Indian stock market slips for fifth consecutive series for first time in 29 years, end flat ...............................42
▪ Health insurance premiums cross Rs 1 lakh crore in 10 months, growth slows to 10% ................................. 43
▪ Banks' infra bond issuances set to cross Rs 1 lakh crore this fiscal .................................................................. 43
▪ India ranks 3rd in digitalisation but falls to 28th in per capita adoption ........................................................ 43
IV. Banking Technology and Cyber Security ................................................ 44
▪ The DeepSeek AI revolution has a security problem ........................................................................................ 45
▪ RBI Governor calls upon banks and NBFCs to mitigate cyber risks ................................................................ 45
▪ What are the new bank cybersecurity measures announced by RBI Governor Sanjay Malhotra? ................ 45
▪ Scam alert: Hackers are using QR codes to steal your data ..............................................................................46
▪ 1 in every 3 Indians faced web threat in 2024 ...................................................................................................46
▪ AI-generated content raises risks of more bank runs: UK study......................................................................46
▪ Sebi proposes tech-based measures to prevent misuse .................................................................................... 47
▪ Raymond reports cyber security incident, IT assets affected ........................................................................... 47
▪ Kaspersky reports nearly 900 million phishing attempts in 2024 as cyber threats increase ......................... 47
▪ Spam calls, texts result in heavy loss through cyber crime .............................................................................. 48
▪ Call merging scam: What is the new fraud that NPCI has warned about ....................................................... 48
▪ 2,000 Indians working in Myanmar cybercrime camps, some willingly ........................................................ 48
▪ Fortifying cyber defenses: Harnessing mobile number credibility for a safer digital world ..........................49
▪ Low investments in cybersecurity expose financial sector to threats: Experts ...............................................49
▪ Niva Bupa Health Insurance reports cyber threat; initiates probe ..................................................................49
▪ North Korean hackers steal record $1.5 billion in single crypto hack, security firm says ..............................50
▪ Major Asia bank to cut 4,000 roles as AI replaces humans ..............................................................................50
▪ Pig butchering scam: New cyber fraud targets unemployed youth, students, housewives ............................50
▪ How India's cybercrime crackdown is ensnaring digital devils ........................................................................ 51
 ▪ Amazon's cloud unit builds first quantum computing chip called 'Ocelot' ...................................................... 51
▪ Getting a lot of unwanted phone calls? Here are ways to stop them................................................................ 51
V. Selected Videos on BFSI and Allied Areas ................................................ 52
▪ Key Highlights of Union Budget 2025 in 7 points ............................................................................................. 53
▪ The future of digital currency: Why ‘programmable’ money could reshape global finance ........................... 53
▪ All about the New Income Tax Bill 2025 ........................................................................................................... 53
▪ Explained: What Is the new call merging scam and how to stay safe? ............................................................ 53
▪ What Is AI Distillation — And How DeepSeek Used It To Blindside OpenAI ................................................. 53
▪ Moneycontrol Exclusive: SBI Chairman CS Setty On YONO 2.0, Customer Service And Much More ......... 53

Disclaimer: The articles, news, reports and other content featured in the "Saransh" eMagazine are sourced from various
websites and publications related to banking, finance and associated sectors. This is a non-commercial, non-priced
publication and intended solely for educational purposes only. The views, opinions and information presented in this
eMagazine do not reflect the official stance or instructions of the Bank or the Institute. The Institute assumes no
responsibility for typographical errors, factual inaccuracies, omissions or the authenticity and reliability of the content.
Readers are encouraged to verify the information independently.

Kindly Note

Previous issues of eMagazine can be accessed via the following path:

SBI Times – Strategic Training Unit (STU) – ATIs – SBIIT – Reading Lounge – Saransh ( eMagazine)

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 State Bank of India

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

2
 SBI Q3 net profit up 84.32% at Rs 16,891 cr, margins under pressure

The net profit of State Bank of India (SBI), country’s largest

lender, jumped 84.32 per cent year-on-year (Y-o-Y) to Rs
16,891 crore for the October-December quarter
(Q3FY25). This increase was mainly due to a one-time
expense of Rs 7,100 crore incurred in the year-ago quarter.
The expense was due to a one-time increase in pension
liabilities at a uniform rate of 50 per cent and dearness
relief neutralisation. Sequentially, the public-sector
lender’s profit was down 7.86 per cent from Rs 18,331 crore
in the quarter ended September (Q2FY25). Net interest
income (NII) grew 4.09 per cent Y-o-Y to Rs 41,446 crore
in Q3FY25, compared to Rs 39,816 crore in the year-ago
quarter. Sequentially, NII remained flat at Rs 41,620
crore. Margins came under pressure, with the net interest
margin (NIM) declining to 3.01 per cent in Q3FY25, against
3.22 per cent in the same period a year ago. Sequentially,
NIM was down from 3.15 per cent in Q2FY25. The yield on
advances in domestic operations was almost flat at 8.88 per
cent in Q3, while the cost of deposits increased to 5.07 per cent in Q3FY25 from 4.75 per cent in Q3FY24 and 5.03 per
cent in Q2FY25. With the Reserve Bank of India likely to cut interest rates, and with 28 per cent of SBI’s loans linked to
external benchmarks, margins could be under pressure as deposit rate repricing comes with a lag. “Some of the rate
cuts will also reflect in deposit costs. We are hopeful that we will maintain the NIM at 3 per cent,” SBI Chairman C S
Setty said during the post-earning media interaction. “Cost of deposits has peaked and we are holding on to yield on
advances,” he said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 06-02-2025

SBI’s growth prospects remain strong despite NIM pressure, loan market share to rise

State Bank of India (SBI) is expected to sustain its strong growth trajectory despite nearterm margin pressures, with
loan market share gains likely to continue over the next 18 months. The bank has retained its FY25 loan growth guidance
at 14-16% YoY, driven by robust expansion in SME and corporate segments. While net interest margin (NIM) remains
a key concern, SBI’s improving asset quality and controlled credit costs provide stability, according to an ICICI
Securities report.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 10-02-2025

SBI aims to better CASA ratio to 40% to lower funding cost: Setty

The bank has unveiled 277 branches in the first nine months of the fiscal. State Bank of India (SBI) aims to bring back
its current account-savings account (CASA) ratio to 40%, which will reduce costs and protect its net interest margins,
chairman CS Setty said during an analyst call.The bank’s CASA ratio has consistently declined over the past two years,
falling to 39.20% at the end of December 2024, from 43.80% in March 2023.“In the last nine months, we have acquired
950,000 customers and salary customer accounts, which means the CASA ratio would come back to 40%. That is our
target, which would also bring down the cost of resources,” said Setty.The bank’s CASA ratio has declined from 41.11%
in March 2024 to 40.7% in June and to 40.03% in September. The entire banking sector is witnessing the trend of CASA
contraction as depositors have been moving funds to high-yield fixed deposits.Banks prefer to keep high levels of CASA
as these are sticky and a cheap source of funds. A higher CASA ratio indicates that the cost of funds for a bank is lower,
which helps boost its earnings.“In terms of cost of resources, there is a conscious effort to increase the savings bank
portfolio and increase the CASA. Probably, the deposit mix will be undergoing a change,” said Setty. “We are making a
great effort in that direction and that is one way of bringing down the cost.”
Click here to read full article ...
[Source website : financialexpress.com]
Published on : 10-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

3
 State Bank of India sees sector's personal loan woes easing on tighter credit rules

State Bank of India (SBI), the country's top lender by assets, expects the industry's concerns over retail borrowers defaulting
on small-ticket loans to ease on the back of tighter credit reporting rules, its chairman said. In January, India's central bank
mandated that credit bureaus update borrowers' credit information on a fortnightly basis against once a month earlier.
"Lenders now know that a certain customer has reached his leverage, and beyond that, we should not give him additional
credit," Challa Sreenivasulu Setty, the chairman of SBI, said in an interview late on Tuesday.

Click here to read full article ...

[Source website : bfsi.economictimes.indiatimes.com]
Published on : 12-02-2025

Public Banks outpace private peers in expansion; SBI, Canara add most branches in Q3

Private Banks have typically led branch expansion, but in the third quarter of FY25, public sector banks outpaced their private
counterparts in growth. India’s largest public sector lender, State Bank of India (SBI) and Canara Bank led the expansion
among public sector banks (PSBs), while Axis Bank and ICICI Bank were the biggest gainers in the private sector. In Q2 FY25,
HDFC Bank had outpaced all lenders with 241 new branches, followed by Axis Bank, which had added 150. However, in Q3,
the momentum shifted, with PSU banks playing a more dominant role in physical network expansion.
How did branch expansion for Public Sector Banks? Public sector banks (PSBs) continued their steady growth, with
SBI once again maintaining its leadership in terms of physical presence. After adding 60 branches in Q2, SBI ramped up its
expansion significantly in Q3, opening 200 new branches and strengthening its footprint in key regions. Canara Bank, which
had added 35 branches in Q2, took a more aggressive approach in Q3, expanding by 158 branches. Bank of Baroda added 18
branches in the quarter ending December, bringing the total count of 120 branches opened in FY25 as of yet.

Click here to read full article ...

[Source website : bfsi.economictimes.indiatimes.com]
Published on : 15-02-2025

SBI cuts home loan rates after RBI repo rate reduction

State Bank of India (SBI) has lowered its home loan interest rate by 25 basis points (bps) to 8.25%. The country's largest lender
has also cut its External Benchmark-Based Lending Rate (EBLR) by 25 bps to 8.90%. The revised rates are effective from
February 15, 2025, according to SBI's website. This move follows the Reserve Bank of India's (RBI) decision to reduce the
policy repo rate by 25 bps to 6.25% on February 7, 2025. The central bank’s rate cut signals an easing of borrowing costs across
the financial system. SBI’s home loan portfolio expanded 14.26% year-on-year (Y-o-Y) to ₹7.92 lakh crore as of December
2024. Housing loans now make up 22.94% of its total domestic loan book. Other retail loans grew 8.33% Y-o-Y to ₹5.30 lakh
crore, accounting for a 15.33% share of total domestic lending.

Click here to read full article ...

[Source website : cnbctv18.com]
Published on : 17-02-2025

Impact of US tariff reciprocity on Indian exports likely to be limited: SBI

The impact of U.S. tariff reciprocity on Indian exports is expected to be minimal, despite concerns over trade restrictions,
according to a report by State Bank of India. The report highlighted that even if the U.S. imposes higher tariffs in the range of
15 to 20 per cent, the overall decline in Indian exports to the U.S. is estimated to be only around 3 to 3.5 per cent. It said, "Our
estimates show overall incremental tariff levels even at 15-20 per cent imposed by USA would still limit the impact on exports
to US only in the range of 3-3.5 per cent which again should be negated through higher export goals". As per the report the
experts believe that this impact can be offset by India's strategic export diversification, increased value addition, and
exploration of new trade routes. The U.S. remains India's top export destination, accounting for 17.7 per cent of total exports
in the financial year 2023-24. However, India's export strategy is evolving to reduce its dependence on any single market.
With growing trade ties in Europe, the Middle East, and other regions, India is working on strengthening its supply chain
networks to ensure stability in exports. While U.S. tariffs on Indian goods have remained relatively stable over the years,
India's tariff policies have been more dynamic. The report highlighted that U.S. tariff rate on Indian goods increased from
2.72 per cent in 2018 to 3.91 per cent in 2021 before slightly decreasing to 3.83 per cent in 2022. On the other hand, India's
tariffs on U.S. imports have risen more significantly, from 11.59 per cent in 2018 to 15.30 per cent in 2022. This shift in tariff
structures reflects a more assertive trade policy by India, aimed at balancing trade relations while protecting domestic
industries. India has been focusing on adding value to its exports, shifting from raw materials to finished goods and high-
value products. This strategy not only enhances export earnings but also reduces the potential impact of tariff hikes by
ensuring that Indian goods remain competitive in global markets.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 17-02-2025
.

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

4
 ‘We still have a very big personal loans runway’, says SBI chairman

State Bank of India (SBI) is hiring 2,000 relationship managers to improve service for its premier customer with overall
deposits of Rs 30 lakh and above. Chairman CS Setty talks to Sachin Kumar and Joydeep Ghosh about how the bank is
in a permanent reinvention mode. Excerpts:

Is the worst over in terms of deposit mobilisation?

Efforts made by the banking industry seem to be paying off as bank deposits have grown in double digits in December.
We, at SBI, would like to compensate the depositors properly, but we will not rely only on the rates. We have carried
out a couple of customer focused enhancements, especially on the service quality at the counters which is an added
element to the great trust in the SBI brand. In terms of products, we have launched the Har Ghar Lakhpati — a product
focused at channelising savings through recurring deposits that has been a great success. We have already opened
630,000 accounts through this scheme. We want to inculcate savings habit in our customers. At the same time, there
are a large number of premier banking clients who have overall deposits of Rs 30 lakh and above with us. We want to
give them premium quality services through our relationship managers. We are deploying around 2,000 people for this
specialised role.

Click here to read full article ...

[Source website : financialexpress.com]
Published on : 20-02-2025

SBI aims to be Net-Zero by 2055: Chairman C S Setty

State Bank of India Chairman C S Setty on Sunday said the largest Indian lender is targeting to be Net-Zero by 2055.
The bank will be celebrating its centenary year of existence then, he said. Setty made the remarks after flagging off the
"SBI Green Marathon Season 5" event in the financial capital, according to a statement. Over 10,000 runners
participated in the 5km, 10km and 21 km categories of the event held here. There will be similar events in Vizag,
Lucknow, Chandigarh, Ahmedabad, Pune, Guwahati, Bhubaneswar, and Patna. Running legends Vinod Kumar Sharma,
Barun Kumar, Vishak Krishnaswamy, Ashish Arya, Sarika Jain, Raj Gandhi and Rinkoo Singh were present at event,
the statement said.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 23-02-2025

SBI stares at earnings slowdown for two years as RoE and RoA set to drop

State Bank of India (SBI) is likely to see a moderation in profitability over the next two years, with return ratios expected
to weaken due to margin compression, higher credit costs, and structural shifts in its earnings mix. The bank’s return
on assets (RoA) is projected to decline to 0.8% over FY26-FY27, down from around 1% in FY25, while return on equity
(RoE) is expected to moderate to 13-14% from the 16-17% levels seen in recent years, according to a report by InCred
Equities. It attributes this decline to a combination of factors, including an expected increase in credit costs from 36
basis points (bp) in FY25 to 50bp in FY26-FY27, as well as the impact of the repo rate cut cycle on core earnings. With
leverage at 16x, the decline in RoE is expected to be even steeper. SBI’s Common Equity Tier-1 (CET-1) ratio stood at
around 11% at the end of Q3FY25, a level lower than its peers, partly reflecting mark-to-market (MTM) gains under new
investment norms.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 25-02-2025

SBI Life Insurance appoints Dorababu Daparti as Deputy CEO

SBI Life Insurance on Monday announced the appointment of Dorababu Daparti as its Deputy Chief Executive Officer,
effective February 24, 2025. Dorababu Daparti is a banking professional with over 29 years of experience in the financial
industry. He holds a postgraduate degree in sciences (M.Sc.) and is a Chartered Associate of the Indian Institute of
Bankers (CAIIB). Daparti succeeds Veeraraghavan Srinivasan who served as the Deputy CEO of SBI Life Insurance from
December 2022 to May 2024.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 25-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

5
 Can add one SBI to ourselves every six years if we grow at 12% CAGR: SBI chairman CS Setty

"We are busy growing organically, and if we grow at a compounded annual

rate of 12 percent, we can add another SBI to ourselves once every six years,"
said CS Setty, Chairman, State Bank of India (SBI). Speaking exclusively
to Moneycontrol, he said he is confident that now is the time to press the
pedal on growth as every pocket of asset class looks comfortable from SBI’s
lens, in terms of quality. Confident of delivering another year of 14-16 percent
annual growth in FY26, Setty said that the country’s largest bank is perhaps
an aberration on the positive side, to witness an equally robust corporate loan
book growth as its retail book. Emphasising that the bank won’t take its eyes
off deposit mobilisation, Setty said that even if SBI is confident about the
credit-deposit ratio, it will never turn down depositors and continue to
compensate them adequately.
Click here to read full article ...
[Source website : moneycontrol.com]
Published on : 25-02-2025

Gamification, hyper-personalisation and more in YONO 2.0, says SBI chairman

State Bank of India’s YONO banking app is getting a tech upgrade ensuring an omnichannel experience for users along
with ‘hyper personalisation’ of services, SBI chairman Challa Srinivasalu Setty has said of the mobile application whose
new version has been delayed by almost a year. YONO 2.0 is now expected to go live by June or July. The current version
of the app is being improved every day and YONO 2.0 will be completely different, Setty told Moneycontrol in an
exclusive interview.“ We are completely reimagining the tech stack and ensuring that it is an omnichannel experience
when you come to the app. Whether you go to the branch or internet banking or YONO app, the journey is uniform,”
Setty said, explaining the rollout delay. SBI is also working on adding some customer value-added services including
customer protection in the YONO 2.0.“Customer education is also something we are building into the app. The app
would extrapolate how a customer’s financial actions can impact his/her credit score,” he said.
Click here to read full article ...
[Source website : moneycontrol.com]
Published on : 25-02-2025

India’s Q3 GDP growth expected between 6.2- 6.3%; worst of slowdown may be behind for Indian
economy

India Q3 GDP growth data FY 2024-25: The

Gross Domestic Product (GDP) growth data
for the third quarter of the current financial
year are set to be released by the government
later today. India’s economic growth slowed to
a two year low of 5.4% in the second quarter of
FY 2024-25, but economists are of the view
that the worst of the slowdown is behind us. A
recent State Bank of India research report
forecasts a 6.3 per cent GDP growth for fiscal
year 2024-25, contingent upon the NSO
maintaining its initial first and second quarter
estimates. Based on analysis of 36 high-
frequency indicators, the third quarter GDP
growth is anticipated to range between 6.2 and
6.3 per cent.
Click here to read full article ...
[Source website : timesofindia.indiatimes.com]
Published on : 28-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

6
 Financial and Allied
Regulators – India

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

7
 Union Budget 2025: Finance Minister announces 100% FDI in Insurance sector

Union Finance Minister Nirmala Sitharaman on Saturday in the Union Budget announced a major reform in the
Insurance sector, allowing 100% Foreign Direct Investment (FDI), a demand being raised by Insurance players since
long. On Friday, the Economic Survey 2025 has highlighted that the insurance market in India has continued its upward
trajectory with the total insurance premium grew by 7.7% in FY24, reaching Rs 11.2 lakh crore. However, the overall
insurance penetration highlights a notable gap in the coverage. The overall insurance penetration rate remains at 3.7%,
which is below the global average of 7%.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 01-02-2025

Union Budget 2025: Top announcements by FM Sitharaman for the Finance Sector

Finance Minister Nirmala Sitharaman tabled the Union Budget 2025 in Parliament today, Sitharaman said that the
engines of development are Agriculture, MSMEs, Investment, and Exports. Further to Prime Minister’s goal of “Viksit
Bharat by 2047” to achieve, the aspirations are to accelerate growth, Secure Inclusive Development, Enhance Spending
Power Of India’s Rising, Middle Class, Invigorate Private Sector Investments, and Uplift Household Sentiments.
Detailing below the top announcements from Sitharaman’s second shortest budget speech of 74 minutes that matter to
finance sector:

• Capital Expenditure & Fiscal Deficit

• MCMEs and Start ups
• 100% FDI for Insurance
• Infrastructure Financing
• Financial Inclusion and Compliance Reforms
• Regulatory Reforms for Ease of Doing Business
• Tax reforms & relief for Taxpayers
• Rationalisation of Customs Duties and Export Incentives
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 01-02-2025

FM sticks to fiscal prudence, Sets FY26 deficit target at 4.4%

The central government has maintained its fiscal consolidation roadmap in the Union Budget 2025, setting the fiscal
deficit target for 2025-26 at 4.4% of GDP. This aligns with the government’s commitment to bringing the deficit below
4.5% by FY26, as outlined under the Fiscal Responsibility and Budget Management (FRBM) Act. For the current
financial year ending March 31, the government has revised the fiscal deficit estimate to 4.8%, down from the 4.9%
projected earlier. The reduction is likely aided by lower capital expenditure and a higher-than-expected dividend from
the central bank.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 01-02-2025

Budget 2025: Govt tightens crypto reporting norms, new compliance rules from April 2026

The government has introduced stricter compliance requirements for crypto transactions by proposing Section 285BAA
in the Income-tax Act, making it mandatory for specified entities to furnish transaction details. The changes, announced
as part of the Finance Act 2022, will take effect from April 1, 2026. Under the new provisions, reporting entities will be
required to submit statements on crypto transactions in a prescribed format and timeframe. If a submitted statement
is found defective, the entity will have 30 days to rectify it, failing which it will be considered as furnishing inaccurate
information. Authorities may also issue notices to entities that fail to submit the required statements. Additionally, any
inaccuracies discovered later must be corrected and reported within a specified period. The amendments also expand
the definition of virtual digital assets (VDA) under Section 2(47A) to include any crypto asset that relies on
cryptographically secured distributed ledger technology. This ensures that all forms of digital assets, even those not
explicitly covered earlier, fall under the tax framework.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 01-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

8
 Union Budget 2025: Govt foresees India Post Payment Bank as catalyst for rural economy

Union Finance Minister Nirmala Sitharaman on Saturday said the India Post Payment Bank (IPPB) will be repositioned
to act as a catalyst for the rural economy. She said that India Post with 1.5 lakh rural post offices, complemented by the
India Post Payment Bank and a vast network of 2.4 lakh Dak Sevaks, will be repositioned to act as a catalyst for the rural
economy. Union Minister also said that the services of India Post Payment Bank will be deepened and expanded in rural
areas.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 01-02-2025

RBI partially devolves 10-yr green bond; $/rupee swap attracts 5 times bids

The Reserve Bank of India (RBI) partially devolved Rs 3,945 crore worth of 10-year sovereign green bonds to primary
dealers as it sought to sell the bonds at a premium, according to dealers. The RBI accepted Rs 1,054 crore worth of green
bonds at the auction, against the notified amount of Rs 5,000 crore.“They were aiming for a greenium, which has been
the case for all green bond auctions,” said a dealer at a state-owned bank. “Bidding was at market levels,” he added.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 01-02-2025

RBI considering hiking ATM cash transaction, interchange fees

Bank customers will have to shell out more for withdrawing cash from automated teller machines (ATMs) as
the Reserve Bank of India (RBI) is considering to hike the maximum fee that banks can charge for customers’
incremental cash transactions beyond the free five transactions limit, and ATM interchange fee, sources say.According
to sources, the National Payments Corporation of India (NPCI), after consultation with industry players, has
recommended hiking the cash transaction maximum feefrom₹21 to ₹22 per transaction after the customer exhausts
their free transactions limit.Separately, the NPCI has also recommended hiking the ATM interchange fee from ₹17 to
₹19 for cash transactions, and from ₹6 to ₹7 for non-cash transactions. Each time a customer of a bank uses an ATM
deployed by another bank, the former bank will have to pay a fee to the latter. This is called an interchange fee.
Click here to read full article ...
[Source website : thehindubusinessline.com]
Published on : 04-02-2025

PSBs strongly capitalised and ready to fuel economic growth: FinMin

The performance of public sector banks (PSBs) indicates that they are adequately capitalised and well poised to meet
the credit demands of all sectors of the economy, with a special thrust on agriculture, micro, small and medium
enterprises (MSMEs), and the infrastructure sector, said the finance ministry in a statement on Thursday. According to
data provided by the finance ministry, PSBs have shown a record net profit growth of 31.3 per cent year-on-year (Y-o-
Y), achieving the highest-ever aggregate net profit of Rs 1,29,426 crore and an aggregate operating profit of Rs 2,20,243
crore in the first nine months of the financial year.PSBs have significantly improved asset quality, with a low net non-
performing asset (NPA) ratio of 0.59 per cent, and an aggregate net NPA outstanding of Rs 61,252 crore.The aggregate
business growth stood at 11 per cent Y-o-Y, with improved aggregate deposit growth of 9.8 per cent Y-o-Y.“The policy
and process reforms have resulted in enhanced systems and processes for credit discipline, recognition and resolution
of stressed assets, responsible lending, improved governance, financial inclusion initiatives, technology adoption, etc,”
said the finance ministry.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 06-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

9
 MP priority sector has a credit potential of Rs 3.13 trillion, says Nabard

The National Bank for Agriculture and Rural Development (Nabard) has presented an estimate of loan potential of Rs 3.13
trillion in the priority sector in Madhya Pradesh for the year 2025-26, which is about 10 per cent higher than last year's Rs
2.85 trillion. According to the State Focus Paper presented by Nabard at the State Credit Seminar organised in Bhopal, out of
the estimated credit capacity of Rs 3.13 trillion, the maximum loan of Rs 1.79 trillion has been estimated for the agriculture
sector, Rs 1.15 trillion for micro, small, and medium enterprises (MSME), and Rs 0.18 trillion for other priority
sectors.Addressing the seminar, Madhya Pradesh’s cooperative minister, Vishwas Sarang, praised Nabard’s contribution to
the agriculture and rural development sectors of the state and assured all possible support. Sarang said, “Every state will have
to contribute to fulfilling Prime Minister Narendra Modi’s dream of making the country VIKASIT (developed) by 2047. Nabard
has an important role in this.”
Click here to read full article ...
[Source website : business-standard.com]
Published on : 06-02-2025

RBI ends rate cut wait; Sanjay Malhotra stresses 'less restrictive' policy

Interest rates are set to fall after the six-member Monetary Policy Committee
(MPC) of the Reserve Bank of India (RBI) decided to reduce the policy repo rate by
25 basis points to 6.25 per cent, against the backdrop of easing inflation and slowing
economic growth. This marks the first interest rate reduction by the central bank in
almost five years and will lead to lower loan rates and deposit rates, though with a
lag. All six members voted unanimously for the rate cut while maintaining a neutral
stance. The rate cut comes even as the past four headline inflation prints were
above 5 per cent. RBI Governor Sanjay Malhotra noted that inflation is expected to
decline. This was the first MPC meeting since Malhotra took over as RBI governor
in December last year. In a major relief for banks, the RBI governor also deferred
the implementation of certain regulations related to liquidity coverage ratio and
project financing norms, and the expected credit loss framework for loan loss
provisioning.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 07-02-2025

RBI to introduce forward contracts in govt securities: Governor Malhotra

As part of the initiative to expand the range of interest rate derivative products available to market participants for managing
interest rate risks, forward contracts in government securities will be introduced. This move aims to help long-term investors,
such as insurance funds, manage interest rate risk across different cycles while also enhancing the efficient pricing of
derivatives linked to government securities, said Reserve Bank of India (RBI) Governor Sanjay Malhotra in his monetary
policy statement on Friday. “Over the past few years, we have expanded the suite of interest rate derivative products available
to market participants to manage their interest rate risks. We shall now include forward contracts in government securities in
this suite. This will facilitate long-term investors such as insurance funds to manage their interest rate risk across interest rate
cycles. It will also enable efficient pricing of derivatives that use government securities as underlying instruments,” he said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 07-02-2025

RBI's internal committee reviewing economic capital framework: Governor

An internal committee of the Reserve Bank of India (RBI) is reviewing the entire economic capital framework (ECF) of the
central bank. Based on the committee’s recommendations regarding contingency risk buffer (CRB) guidance, the RBI will
discuss the matter with its board and the government at a later stage, said the RBI’s top management at a post-monetary
policy committee (MPC) press conference on Friday. The ECF is a methodology for determining the appropriate level of risk
provisions and profit distribution to be made under Section 47 of the RBI Act, 1934.The Bimal Jalan Committee, set up by the
RBI in November 2018, had reviewed the ECF framework and provided several recommendations, including maintaining the
CRB within 5.5–6.5 per cent of the central bank’s balance sheet. The panel had also suggested that the RBI’s ECF be reviewed
every five years.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 07-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

10
 RBI to introduce exclusive internet domains for banks and non-banks

The Reserve Bank of India (RBI) is introducing exclusive internet domains for financial sector participants including banking
and non-banking entities. Indian banks will have a ‘bank.in’ domain, whereas non-bank entities will have a ‘fin.in’ domain.
Registrations for the same will commence from April this year. RBI’s move to introduce exclusive banking domains comes on
the back of a need to contain cyber security threats such as phishing attacks. “This initiative aims to reduce cyber security
threats and malicious activities like phishing; and, streamline secure financial services, thereby enhancing trust in digital
banking and payment services,” the RBI said in a statement on developmental and regulatory policies. The Institute for
Development and Research in Banking’ Technology (IDRBT) will act as the exclusive registrar.“A verified domain for regulated
financial entities will provide greater transparency and security, ensuring that borrowers can access credit solutions with
confidence,” said Ashish Goyal, co-founder and chief financial officer (CFO), Fibe; a digital lending fintech.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 07-02-2025

Draft LCR, project financing norms not to be implemented before March 2026

The proposed Liquidity Coverage Ratio (LCR) as well as project financing norms will get deferred by a year, and are not to be
implemented before March 31, 2026, Reserve Bank of India’s (RBI) Governor Sanjay Malhotra said on February 7. The
Governor added that RBI does not think March 2026 is sufficient enough time for the implementation of these
guidelines, adding that the regulator does not want to cause disruption and will ensure a smooth transition. On January
29, Moneycontrol had reported that both state-owned and private banks have requested RBI to defer the implementation of
liquidity coverage ratio (LCR) norms to the later part of the next financial year 2025-26. The request was made by bank chiefs
during their meeting with the new RBI governor in the last week of January. As per the current timeline, these norms were to
come into force from April 1,2025.
Click here to read full article ...
[Source website : moneycontrol.com]
Published on : 07-02-2025

RBI to review mkt trading, settlement timings to enhance scope, liquidity

Reserve Bank of India’s move to take a comprehensive review of trading and settlement timings of various markets under its
regulation is expected to help in expanding ambit and enhance liquidity in market instruments. The regulator has set up a
nine-member working group to make recommendations on trading and settlement timings which would submit its report by
April 30.CS Setty, Chairman, State Bank of India (SBI) said the regulatory announcement on forward contract, reviewing trade
settling cycle will ensure better price discovery, more broad basing of participants. Seconding Setty’s view, Zarin Daruwala,
CEO, India and South Asia, Standard Chartered Bank, said the announcements around introduction of forward contracts in
government securities, increased access to the government securities trading platform and the review of trading and
settlement timings, should enhance liquidity in market instruments.Reserve Bank of India (RBI) in a statement said the
synchronised and complimentary market and settlement timings across various financial market segments can facilitate
benefits of efficient price discovery and optimisation of the liquidity requirements.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 07-02-2025

RBI introduces extra security for international online payments with AFA

In a significant move aimed at enhancing the safety of online payments, the Reserve Bank of India (RBI) on Friday announced
plans to introduce Additional Factor of Authentication (AFA) for cross-border "Card Not Present" (CNP) transactions. This
decision will bring international digital transactions using Indian-issued cards under the same security standards that have
been applied to domestic transactions. AFA has already become a cornerstone of digital transaction security within India. By
requiring an extra layer of verification—such as a One-Time Password (OTP) or biometric authentication—AFA has effectively
reduced fraud in domestic online payments. Customers feel more confident making purchases online, knowing that their
transactions are safeguarded.However, until now, this additional security feature did not apply to international transactions,
leaving a gap in protection for Indian consumers shopping with overseas merchants. Recognizing this vulnerability, the RBI’s
proposed move aims to close that gap and ensure the same level of security for cross-border transactions as Indian consumers
enjoy with domestic payments.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 07-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

11
 RBI cuts key policy rate for first time in 5 years

Corporate and retail loans (including home loans) will get cheaper as
the Reserve Bank of India’s Monetary Policy Committee (MPC) pivoted
its policy by cutting the policy rate for the first time in five years, with
analysts expecting another cut in April when the committee meets next.
The quantum of the rate cut -- 25 basis points or 0.25 percentage points
to 6.25% -- was in line with expectations although it disappointed the
more optimistic analysts who were hoping for a 50-point cut, and the
stock markets which had already factored in a 25 basis point cut. The
rationale for the rate cut is laid out in RBI’s projections for the year. It
expects the GDP to expand by 6.7% in 2025-26, with quarterly growth
estimates of 6.7%, 7%, 6.5% and 6.5%. In December, it estimated
growth to be 6.9% in the first quarter of the year and 7.3% in the second
-- and so the latest numbers suggest that there is a challenge to growth.
In its December policy, MPC also overestimated the 2024-25 annual
growth by 20 basis points at 6.6%. According to the first advance
estimates released in January, GDP growth in 2024-25 is expected to
be 6.4%. It also expects inflation for the year to be 4.2%, close to RBI’s
target of 4% (in fact, the closest it will be since India adopted an
inflation targeting framework for tis monetary policy in 2016). If the
annual inflation projection of RBI were to materialise, it will be the
lowest annual inflation number since 2018-19 when it came in at 3.4%
Click here to read full article ...
[Source website : hindustantimes.com]
Published on : 08-02-2025

RBI opens NDS-OM platform for stock brokers to boost retail participation

The Reserve Bank of India (RBI) announced on Friday that it will allow non-bank brokers registered with the
Securities and Exchange Board of India (Sebi) to access the negotiated dealing system-order matching (NDS-OM)
platform. This move is intended to expand retail participation in government securities.The NDS-OM platform,
operated by the RBI, is an anonymous order-matching system for secondary market trading in government
securities (G-Secs).“To enhance access for retail investors to government securities, the Reserve Bank will expand
access to the NDS-OM platform, the electronic trading platform for secondary market transactions in government
securities, to non-bank brokers registered with Sebi,” said RBI Governor Sanjay Malhotra.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 08-02-2025

Slowing growth of unsecured loans satisfactory: RBI Governor Malhotra

The moderation in unsecured personal loan growth following the increase in risk weight in November 2023 has
been satisfactory and further moderation may not be required, Reserve Bank of India (RBI) Governor Sanjay
Malhotra said on Friday. When asked whether the regulator is satisfied with the growth slowdown in unsecured
loans, Malhotra said: “I think the short answer is yes, we are satisfied. I don't think, you know, more moderation
perhaps is required.”The RBI also noted that bank funding to non-banking finance companies (NBFCs) has
declined following the increase in risk weight on bank loans to shadow banks.In November last year, the RBI
increased risk weightings on unsecured consumer loans and bank loans to NBFCs. As a result, personal loan
growth moderated to 12 per cent in December 2024 from 28.4 per cent in December 2023. Bank credit to NBFCs
declined from 15 per cent to 6.7 per cent during this period.RBI Deputy Governor Swaminathan J said: “It was an
intended impact. Regulatory measures were taken when a certain amount of outlier growth was seen in a few
segments. As we had anticipated, it is the very same segments that are witnessing additional stress or slippages at
this point. The measures were well thought out, and they have had their intended impact.”
Click here to read full article ...
[Source website : business-standard.com]
Published on : 08-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

12
 RBI banning bank business last resort but in public interest says new governor

Barring regulated entities from doing business due to irregularities is in the interest of the public. This policy of the
central bank will continue but will only be used as a measure of last resort, governor Sanjay Malhotra said. He said that
there are about two banks where the RBI has current “cease and desist” measures. These measures are taken after great
consideration and thought after giving opportunity to these entities. “These are measures of last resort. We will not like
to use them too often. These are to be used in the rarest of the rare circumstances where and when all other measures
have failed. They are again in the interest of the public and we will keep this policy going forward as well,” Malhotra
said. Kotak Mahindra Bank has been barred by RBI since April 24 from onboarding new customers on its online and
mobile banking channels, and issuing fresh credit cards due to deficiencies in its IT systems and controls. In March,
South Indian Bank and Federal Bank suspended on-boarding new customers for its co-branded credit cards until they
comply with all of the central bank’s regulatory requirements.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 08-02-2025

Finance ministry no to public sector banks taking haircut on MTNL loans

The Union finance ministry has rejected Mahanagar Telephone Nigam’s

(MTNL’s) proposal for public sector banks (PSBs) to take a haircut on
their debt to the struggling telecommunications (telecom) company,
according to a senior government official. “We are currently in the process
of resolving MTNL’s debt. We are in discussions with the Department of
Telecommunications and MTNL. We have rejected their request for a
debt haircut, as MTNL is a public sector enterprise, and this would
amount to a default by the central government,” the official said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 09-02-2025

RBI Approves Amalgamations of Citizen Cooperative Bank with TJSB and PCC Bank with PCS Bank

The Reserve Bank of India (RBI) has approved the voluntary amalgamation of two urban cooperative banks (UCBs).
The first amalgamation is between Goa-based Citizen Cooperative Bank (CCB) and Thane, Maharashtra-based TJSB
Sahakari Bank (TJSB). At the same time, the second involves Satara-based Pune Commercial Cooperative Bank (PCC
Bank) merging with Pimpri Chinchwad Sahakari (PCS) Bank from Pune. In an official statement, RBI confirmed that
the scheme of amalgamation of Citizen Cooperative Bank with TJSB Sahakari Bank has been sanctioned under the
provisions of the Banking Regulation Act, 1949. This merger will take effect on 10 February 2025 and all branches of
the Goa-based CCB will operate as branches of TJSB.
Click here to read full article ...
[Source website : moneylife.in]
Published on : 10-02-2025

Banks set to hold deposit rates steady for now, cuts expected post-March

Banks are expected to hold off on cutting deposit rates in response to the Reserve Bank of India's (RBI) recent 25-basis-
point repo rate cut, as lenders prioritise maintaining deposit growth amid competitive pressures. The reduction in
lending rates is likely to happen sooner, particularly for loans linked to external benchmarks, while deposit repricing is
expected to be gradual. Despite the rate cut from 6.5 percent to 6.25 percent, banks are unlikely to lower deposit rates
immediately, as the current quarter is a busy period for credit growth. Lenders require sustained deposit inflows to fund
loan demand, making them hesitant to reduce rates at this stage. The transmission of rate cuts is expected to be phased,
with short-term deposits likely to see adjustments first, followed by long-term deposits if further rate cuts occur.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 11-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

13
 Rising gold loan NPAs signal stress in household finances

Non-performing assets (NPAs) related to gold loans surged by 21.03% for scheduled commercial banks (SCBs)
between March and June 2024, indicating rising financial stress among households. Data presented by the
Finance Ministry in the Lok Sabha also showed that gold loan NPAs for upper and middle-layer non-banking
financial companies (NBFCs) rose 18.14% during the same period. As of June 30, 2024, the gross NPA ratio for
gold loans stood at 0.22% for SCBs and 2.58% for upper and middle-layer NBFCs. This increase comes amid a
broader rise in per capita household liabilities, as highlighted in another Finance Ministry response. The organised
gold loan market—comprising banks and NBFCs—is projected to cross Rs 10 lakh crore in FY25 from Rs 9.2 lakh
crore in FY24, with expectations of reaching Rs 15 lakh crore by March 2027.

Click here to read full article ...

[Source website : bfsi.economictimes.indiatimes.com]
Published on : 12-02-2025

RBI extends UPI credit line facility to Small Finance Banks

The Reserve Bank of India (RBI) on Wednesday announced an expansion in the scope of Unified Payments
Interface (UPI) by enabling transactions from pre-sanctioned credit lines at banks for Small Finance Banks too.
Previously, when the announcement was first made in December 2024 during the MPC meet outcomes, Small
Finance Banks, Payments Banks, and Regional Rural Banks were excluded from this feature. Before this
announcement, UPI facilitated payments from savings accounts, overdraft accounts, prepaid wallets, and credit
cards and the scope of the same was extended for UPI to be used as a funding account. With this move, Small
Finance Banks (SFBs) can now offer credit lines linked to UPI, further broadening financial access.

Click here to read full article ...

[Source website : bfsi.economictimes.indiatimes.com]
Published on : 12-02-2025

RBI imposes curbs on New India Co-operative Bank on supervisory concerns

India's central bank on Thursday barred Mumbai-based New India Co-operative Bank from issuing new loans and
suspended deposit withdrawals for six months, citing supervisory concerns and the lender's liquidity position. The
Reserve Bank of India (RBI) said the directions were necessary due to concerns arising from "recent material
developments" at the bank, and to protect the interest of depositors, although did not elaborate on the specifics of
these concerns.The RBI also ordered the co-operative bank not to make any investments or borrow funds.An email
sent to the bank's nodal officer requesting comments did not immediately elicit a response.

Click here to read full article ...

[Source website : business-standard.com]
Published on : 13-02-2025

Bima Vahak's portal is ready for soft launch in April 2025, says Irdai

The portal for Bima Vahak, the localised, women-centric insurance field sales force, is nearing completion and is
set for a soft launch for onboarding 'Vahaks' from April 2025, the insurance regulator said in its press release. The
Insurance Regulatory and Development Authority of India (Irdai) held a quarterly meeting with CEOs of life and
non-life insurance firms in Hyderabad during the two-day Bima Manthan on February 13 and 14, 2025, to discuss
key issues related to the phased launch of Bima Trinity.The regulator also said, “A compliant, simple,
comprehensive, and customer-friendly model has been signed off by the top brass of the industry.”

Click here to read full article ...

[Source website : business-standard.com]
Published on : 16-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

14
 RBI lets funds flow to tackle liquidity deficit

The Reserve Bank of India has supported liquidity to its full extent
through long-term variable rate repo (VRR) auctions, foreign exchange
swaps and doubling down on its open market operation (OMO)
purchases in its auctions and on screen. Since January 30, the RBI has
taken measures to infuse durable liquidity via various OMOs and VRRs,
in addition to ₹43,000 crore via foreign exchange swaps. In addition,
the central bank conducted screen-based OMOs for ₹59,000 crore.
Each such auction saw bids higher than the notified amount, suggesting
demand for durable liquidity. Most institutions, however, have factored
in more such liquidity measures throughout the first half of 2025. "We
expect more OMOs in primary/secondary markets, VRRs and foreign
exchange swaps, especially as the RBI's forward book is heavy with
large near-term maturity," Madhavi Arora, chief economist at Emkay
Global Financial Services, said in a report.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 17-02-2025

Bank deposit insurance limit to be raised soon: Financial services secretary

India is actively considering raising the bank deposit insurance coverage, a top official said on Monday, days after the
RBI suspended withdrawals from New India Co-operative Bank over supervisory concerns. Every Indian bank account
holder's deposits are insured up to ₹500,000 in case a bank goes under. In 2020, the limit was raised from ₹100,000
after restrictions were placed on Punjab and Maharashtra Cooperative Bank over financial irregularities. "This is under
active consideration of the government," Financial Services Secretary M. Nagaraju said of another hike. "As and when
the government approves, we will notify," he said, without specifying the new limit under consideration.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 18-02-2025

Reserve Bank launches RBIDATA App for simplify access to economic data

In a significant move to elevate financial transparency and accessibility of data, the Reserve Bank of India has launched
RBIDATA, a mobile application that offers macroeconomic and financial statistics relating to the Indian economy in a
user-friendly and visually engaging format. This move aligns with the central bank’s broader push to empower
policymakers, researchers, and the public with seamless access to vast economic datasets. RBIDATA offers an extensive
repository, granting users access to over 11,000 different series of economic data, providing a comprehensive view of
the Indian economy. This mobile-first approach modernizes the way financial data is consumed, ensuring that vital
economic indicators are readily available at users' fingertips.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 19-02-2025

Reserve Bank of India issues norms for forward contracts in G-secs

The Reserve Bank of India (RBI) today released norms for forward contracts in government securities (G-secs) to enable
market participants, especially long-term investors, to manage their cash flows and interest rate risk. These directions
for forward contracts, or bond forwards, undertaken in the Over-the-Counter (OTC) market in India, will come into
force with effect from May 2, 2025, RBI said in a notification. The central bank had issued a draft notification in
December 2023. RBI has been expanding the suite of interest rate derivative products available to market participants
to manage interest rate risks.For the purpose of entering into deals, a bond forward refers to a rupee interest rate
derivative contract in which one counterparty (buyer) agrees to buy a specific government security (G-sec) from another
counterparty (seller). The contract specifies a future date and a price determined at the time of the contract.A resident
and a non-resident who is eligible to invest in government securities under the Foreign Exchange Management (Debt
Instruments) Regulations, 2019, can participate in such transactions. Any entity eligible to be classified as a non-retail
user shall be eligible to undertake transactions in bond forwards as a user, RBI said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 21-02-2025
SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

15
 RBI announces mega $10 billion FX swap to infuse rupee liquidity

The Reserve Bank of India will conduct a massive $10 billion three-year dollar/rupee swap auction next week to infuse
durable rupee liquidity into the banking system, which has been reeling under large cash deficits, the central bank said
on Friday. The RBI will conduct the buy/sell swap on February 28, it said in a release. The first leg of the transaction
would be settled on March 4 and could infuse around 870 billion rupees ($10 billion) into the banking system.Earlier
this year, the RBI announced a six-month swap through which it infused $5.1 billion into the system, however, cash
conditions have remained tight despite the swap and several open-market bond purchases.The RBI will need to inject
at least another 1 trillion rupees into the banking system by March-end, market participants said earlier on Friday.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 21-02-2025

RBI warns of excessive unsecured loans, euphoria over derivative products

The Reserve Bank of India has red flagged excessive borrowing of unsecured loans and the euphoria over derivative
products while asking the financial sector entities to be aware of the risk of reckless financialization. Speaking at an
event organised by the National Stock Exchange on Friday, RBI deputy governor M Rajeshwar Rao said, “Of late we
have seen some concerns of excessive borrowing in the unsecured segment and from derivative euphoria in the capital
markets. The temptation of short-term gains can easily overshadow the long-term financial security of individuals.”He
said financial entities have a ‘duty’ to ensure that customers fully understand the risks associated with leveraged
products and ‘speculative investing’.“The temptation of short term gains can easily overshadow the long term financial
security of individuals”, he said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 21-02-2025

Reserve Bank of India for foreclosure of biz loans to MSEs, individuals

The Reserve Bank of India (RBI), in a draft circular issued on Friday, mandated lenders to permit foreclosure or
prepayment of all floating rate loans sanctioned to individuals for purposes other than business, without levying any
penalties or charges. Similarly, for floating rate loans sanctioned for business purposes to individuals and micro and
small enterprises (MSEs), the central bank has mandated that lenders—other than Tier-I and Tier-II primary (urban)
co-operative banks and base layer non-banking financial companies (NBFCs)—cannot levy any charges or penalties in
case of foreclosure or prepayment. The threshold for MSE borrowers has been set at Rs 7.5 crore.Separately, in other
cases, if lenders levy foreclosure charges or prepayment penalties, it must be in accordance with a board-approved
policy. Even so, the RBI stated that the charges levied by lenders must be based on the outstanding amount in the case
of term loans and the sanctioned limit in the case of cash credit or overdraft facilities.Further, lenders must permit
foreclosure or prepayment of loans without stipulating any minimum lock-in period.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 22-02-2025

Pvt corporate sector posts 8% on-year sales growth in Q3, margins rise: RBI

The private corporate sector showed improvements across various segments in the third quarter of the current financial
year (Q3FY25), with the operating profit margin of listed non-financial companies increasing sequentially by 50 basis
points (bps) to 16.2 per cent, according to the Reserve Bank of India (RBI) data released on Monday. Sales of listed
private non-financial companies increased by 8.0 per cent during Q3FY25, compared to 5.5 per cent in the
corresponding quarter a year ago. It was, however, 5.4 per cent in Q2FY25.Among these, sales growth of 1,675 listed
private manufacturing companies rose to 7.7 per cent, primarily driven by higher sales in automobiles, chemicals, food
products, and electrical machinery industries. However, industries such as petroleum, iron and steel, and cement faced
annual contraction in sales revenue. Information Technology (IT) companies recorded a rise of 6.8 per cent year-on-
year (Y-o-Y) in sales, while non-IT services companies exhibited an impressive 11.5 per cent sales growth (Y-o-Y) during
Q3FY25, continuing their strong performance from the previous year.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 24-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

16
 RBI curbs show effect; personal loan growth moderates in Q3

Credit to agriculture and industry sectors also recorded some tempering in growth while lending for trade, finance and
professional/other services accelerated during the third quarter. About half of the loans provided by banks carried
interest rates of 8% to 10% while around 16% of the loans were bearing less than 8% interest rate. The remaining loans
were bearing 10% or above interest rate, RBI said. Personal loan growth moderated in the quarter to December following
regulatory cautioning over possible overheating. The annual growth print for the personal loan segment was recorded
at 13.7% at the end of December 2024 from 15.2% at the end of September, Reserve Bank of India's quarterly data
showed. Total bank credit growth also decelerated to 11.8% in December 2024 from 12.6% in September. The banking
regulator said that all population groups in rural, semi-urban, urban and metropolitan branches of banks maintained
double-digit credit growth, though with some moderation. This held true for both public sector and private sector banks.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 24-02-2025

Reserve Bank of India frees up bank capital with NBFC risk weight rollback

With bank loan growth slowing over the past year, the Reserve Bank of India (RBI) has
decided to reverse its decision to increase the risk weight of bank loans to non-banking
financial companies (NBFCs), which will result in a substantial release of capital for
banks. In addition, it clarified that risk weights for microloans by banks will be 75 per
cent or 100 per cent, depending on the nature of the loan, rather than 125 per cent. In a
circular issued on Tuesday, the banking regulator said: “Upon review, it has been
decided to restore the risk weights applicable to such exposures (NBFC exposure), and
the same shall be in line with the external rating.” This comes into effect from April 1,
2025.On November 16, 2023, risk weights for bank loans to NBFCs were increased by
25 percentage points — over and above the risk weight associated with the given external
rating — in all cases where the existing risk weight, in accordance with the external rating
of NBFCs, was below 100 per cent. This meant that bank loans to AAA-, AA-, and A-rated NBFCs — where the external
risk weight was below 100 per cent — were increased by 25 percentage points.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 25-02-2025

India's central bank relaxes certain norms for urban co-operative banks

India's central bank on Monday revised certain norms for urban co-operative banks (UCBs), with a view of providing
them with greater operational flexibility, while meeting regulatory objectives. UCBs are financial institutions operating
in urban and semi-urban areas, offering banking services to small borrowers, micro-businesses, and lower-income
groups. UCBs can now classify loans up to 2.5 million rupees ($28,842.71) or 0.4% of Tier I capital, whichever is higher,
as small-value loans, subject to a ceiling of 30 million rupees per borrower, the Reserve Bank of India said.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 25-02-2025

Sebi slaps Rs 5.05 cr fine on Indian clearing corporation for regulatory lapses

Markets regulator Sebi on Tuesday imposed a Rs 5.05 crore penalty on Indian Clearing Corporation Ltd (ICCL) for non-
compliance with cyber security and disaster recovery framework. It has been directed to pay the penalty within 45 days,
according to the Securities and Exchange Board of India (Sebi) order. ICCL was incorporated in 2007 as a wholly-owned
subsidiary of BSE Ltd. It carries out the functions of clearing, settlement, collateral management and risk management
for various segments of BSE. The Securities and Exchange Board of India (Sebi) conducted an inspection of books of
accounts and other records of Indian Clearing Corporation Ltd for the period December 1, 2022, to July 31, 2023, to
ascertain whether ICCL has complied with the provisions of Sebi rules. In its inspection, the regulator found non-
compliance with key regulatory provisions, particularly in cybersecurity and disaster recovery. The regulator found non-
compliance with cybersecurity and cyber resilience framework as well as non-compliance with system and network
audit requirements. Sebi found that ICCL failed to maintain an up-to-date IT asset inventory, including software assets
and criticality classification.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 26-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

17
 Govt appoints Finance Secretary Tuhin Kanta Pandey as next Sebi chief

Finance secretary Tuhin Kanta Pandey will replace Madhabi Puri Buch as the next Securities and
Exchange Board of India (Sebi) chairman, after the latter’s three-year term ends on February 28.
The Appointments Committee of the Cabinet, chaired by Prime Minister Narendra Modi, has
approved Pandey’s appointment as Sebi chief, initially for a period of three years from the date of
assumption of charge of the post or until further orders, whichever is earlier, the Department of
Personnel and Training said in a statement.A 1987-batch Indian Administrative Service (IAS)
officer from the Odisha cadre, Pandey served for more than five years as the Department of
Investment and Public Asset Management (DIPAM) secretary from October 24, 2019. He was
appointed as finance secretary in September 2023. Pandey took charge as the revenue secretary
in the finance ministry on January 9.Pandey is credited with concluding the long-pending sale of the national carrier
Air India and was also instrumental in the public debut of Life Insurance Corporation of India (LIC) during his tenure
as DIPAM secretary.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 28-02-2025

Reserve Bank of India conducts $10 bn forex swap to inject liquidity

The Reserve Bank of India’s (RBI’s) $10 billion US dollar-rupee

buy-sell swap auction for three years received bids worth $16.23
billion on Friday, reflecting robust demand amid persistent
liquidity deficit in the banking system. This was the second swap
auction by the central bank after it infused $5 billion via six month-
swap on January 31.Of the 244 bids, the RBI accepted 161 bids
worth $10.06 billion for a tenure of three years. The cut-off
premium was set at ₹6.55, which was lower than market
expectations. The average premium on accepted bids was
₹6.73.“The demand was stronger than expected. The cut-off was
seen at around ₹6.62,” said the treasury head at a private
bank.“The forward premiums eventually fell after the auction
result,” he said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 28-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

18
 National and
International News

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

19
 International Finance Centres get a booster shot in Budget

In a bid to enhance the competitiveness of the International Financial Services Centre (IFSC), the government has
proposed a series of tax exemptions and regulatory relaxations across ship leasing, treasury operations, and fund
management. The changes, set to take effect from April 1, 2025, aim to align IFSC policies with global financial hubs,
attract investments, and streamline compliance for businesses operating in the sector. Key proposals include extending
capital gains and dividend tax exemptions to ship leasing units, refining the definition of ‘dividend’ for treasury centres,
and simplifying compliance norms for fund managers.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 01-02-2025

Budget 2025: ULIPs no more income from other sources, to be taxed as capital gains from April 1

The Union Budget 2025 government has introduced amendments to the Income-tax Act to bring greater clarity on the
taxation of Unit Linked Insurance Policies (ULIPs) where exemptions do not apply. These changes, set to take effect
from April 1, 2026, will classify such ULIPs as capital assets, ensuring that profits from their redemption are taxed as
capital gains rather than as income from other sources.
The proposed amendments introduce three major changes: ULIPs that do not qualify for exemption under
Section 10(10D) of the Income-tax Act will now be explicitly classified as capital assets under Clause 14 of Section 2.
This ensures uniformity in their tax treatment with other capital market investments. The profits earned from
redeeming ULIPs that are not eligible for exemption will be taxed as capital gains under Section 45(1B). This brings
them in line with taxation rules applied to equity and mutual fund investments.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 01-02-2025

Budget 2025: Govt tightens crypto reporting norms, new compliance rules from April 2026

The government has introduced stricter compliance requirements for crypto transactions by proposing Section 285BAA
in the Income-tax Act, making it mandatory for specified entities to furnish transaction details. The changes, announced
as part of the Finance Act 2022, will take effect from April 1, 2026. Under the new provisions, reporting entities will be
required to submit statements on crypto transactions in a prescribed format and timeframe. If a submitted statement
is found defective, the entity will have 30 days to rectify it, failing which it will be considered as furnishing inaccurate
information. Authorities may also issue notices to entities that fail to submit the required statements. Additionally, any
inaccuracies discovered later must be corrected and reported within a specified period. The amendments also expand
the definition of virtual digital assets (VDA) under Section 2(47A) to include any crypto asset that relies on
cryptographically secured distributed ledger technology. This ensures that all forms of digital assets, even those not
explicitly covered earlier, fall under the tax framework.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 01-02-2025

Economic Survey: 8% growth needed to reach 'Viksit Bharat' goal by 2047

India needs to achieve an average growth rate of around

8 per cent at constant prices for about a decade or two to
realise its economic aspirations of becoming Viksit Bharat
by 2047, the Economic Survey 2024-25, released on
Friday, said. “To achieve this growth, the investment rate
must rise to around 35 per cent of gross domestic product
(GDP) from the current 31 per cent. Additionally, it will be
essential to develop the manufacturing sector further and
invest in emerging technologies such as artificial
intelligence (AI), robotics, and biotechnology,” the Survey
said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 01-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

20
 Economic Survey 2024-25: Services, debt improve external situation

Economic growth may stabilise at 6.3-6.8 per cent in

FY26, according to the Economic Survey. Services and
debt have made the external situation less vulnerable
even as the global environment remains uncertain.
Workforce skills remain a concern :
Unemployment rates in urban and rural areas have
declined. However, the education and skill landscape
remains a concern, with over 90 per cent of the
workforce having at most secondary education,
leading to a dominance of “low-competency
occupations”. Skill disruption due to AI looms large.

Click here to read full article ...

[Source website : business-standard.com]
Published on : 01-02-2025

Union Budget 2025: Major announcements and all you need to know

Union Finance Minister Nirmala Sitharaman presented her 8th Budget on Saturday, marking a record for the most
consecutive presentations in India's history. Key highlights included enhanced Kisan credit card limits, a new fund for MSMEs,
and the launch of the PM Dhan Dhaanya Krishi Yojana.
Union Finance Minister Nirmala Sitharaman on Saturday presented her 8th Budget. This was the historical highest number
of backto-back budget presentations by any finance minister in India’s history. Nirmala Sitharaman is also known for
delivering the longest Budget speech in history. Her 2020 Budget speech lasted two hours and 40 minutes before she had to
stop with two pages still remaining. In her speech at the Parliament while presenting the Budget, the Finance Minister
highlighted the focus areas as to accelerate growth, secure developments, uplift household sentiments and India's rising
middle class. "We see the next 5 year as a big opportunity as Sabka Vikas."
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 01-02-2025

Multiple demat accounts held against single PAN surge 500% since FY17

The number of people holding multiple dematerialised (demat) accounts linked to a single income
tax personal account number (PAN) has risen by 504 per cent since 2016-17 (FY17). According to
data compiled from a study published in the January 2025 Securities and Exchange Board of India
(Sebi) bulletin, there were 6.18 million unique PANs with two or more demat accounts in FY17, a
number that has since reached 37.3 million as of 2023-24 (FY24). This growth has outpaced the
total number of demat accounts, which has increased by 444 per cent to 151.4 million over the
same period.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 03-02-2025

Casa, term deposits more than double in 10 years, says Pankaj Chaudhary

Low-cost current account and savings account (CASA) and term deposits in the economy increased by over 100 per cent
between FY15 and FY24, Pankaj Chaudhary, minister of state (MoS) for finance, said in Lok Sabha in a written
response.“Current and savings account deposits have increased from Rs 31.51 lakh crore in FY15 to Rs 84.69 lakh crore in
FY24, registering an increase of 168.7 per cent. Term deposits have grown from Rs 59.59 lakh crore in FY15 to Rs 128.9 lakh
crore in FY24, registering an increase of 116.4 per cent,” Chaudhary said.In the last decade, there has also been significant
investment in the equity market, mutual funds, and pension funds due to increased investor awareness, rapid digitisation,
technology-driven user-friendly investments, robust economic growth, and other measures taken by the financial sector to aid
ease of investment.The amount raised by equity issuances registered a compound annual growth rate (CAGR) of 9.2 per cent,
reaching Rs 1.97 trillion at the end of FY24.The assets under management (AUM) of mutual funds clocked a 20.5 per cent
CAGR, reaching Rs 53.41 trillion, while that of the National Pension System (NPS) and Atal Pension Yojana (APY) grew by
37.6 per cent to Rs 11.73 trillion.The increasing trend of investments in mutual funds, equities, and pension funds has led to
greater financial inclusion and increased capital inflow into financial markets, which, in turn, has enhanced liquidity and
depth in financial markets and strengthened domestic savings participation in capital formation,” Chaudhary said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 03-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

21
 India's pace of debt reduction remains gradual, says Fitch Ratings

India's pace of debt reduction is gradual, which leaves open downside risks to sovereign ratings in the eventuality of a
significant economic shock, said Fitch Ratings on Monday, commenting on the Union Budget 2025.However, the rating
agency expressed confidence in India's ability to stick to its medium-term fiscal framework and keep debt firmly on a
downward path, which would be positive for the sovereign rating over time.“Increased confidence that the government
can adhere to this medium-term fiscal framework and keep debt firmly on a downward path, would be positive for the
sovereign rating over time. Still, the pace of debt reduction is gradual, which leaves open downside risks from a large
economic shock,” said Jeremy Zook, director and primary sovereign analyst for India at Fitch Ratings in a statement.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 03-02-2025

NaBFID raises Rs 5,000 crore via 15-year bonds at 7.25% cut-off rate

State-owned National Bank for Financing Infrastructure and Development (NaBFID) on Tuesday raised Rs 5,000 crore
through 15-year bonds at a cut-off rate of 7.25 per cent, sources said. Additionally, state-owned Power Finance
Corporation (PFC) raised Rs 3,950 crore through bonds maturing in approximately 10 years and 20 years, with cut-off
rates of 7.24 per cent and 7.25 per cent, respectively.According to market participants, NaBFID's cut-off rate was
considered realistic, given the large state development loan (SDL) issue this week and the increasing selectivity among
some of the large long-term investors.The cut-off for ‘AAA’-rated long-term issuance has moved up in the last few
months, said market experts. State–owned REC had raised Rs 1,620 crore through bonds maturing in 10 years at a very
attractive cut of 7.10 per cent. During this time, the 10–year government securities yield has come down from 6.74 per
cent at the end of November to 6.67 per cent as of February 4.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 04-02-2025

Bank gold loan disbursals up 71.3% to Rs 1.72 trillion in 9MFY25

Gold loan portfolio of banks rose by 71.3 per cent

year-on-year (Y-o-Y) till December of the current
financial year (FY25) to Rs 1.72 trillion, compared
to 17 per cent growth a year ago, on the back of
rising prices of the yellow metal and slowdown in
unsecured loan following increase in risk weights
last year. “Over the last year, gold loan growth has
sharply increased, with a 68 per cent rise from April
2024 to December 2024 (M9FY25), while gold
prices increased by around 21 per cent during the
time,” said Ajit Velonie, senior director, Crisil
Ratings.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 04-02-2025

NaBFID extends Rs 2,000 crore loan to Blackstone-backed data centre

The National Bank for Financing Infrastructure and Development (NaBFID) is extending a Rs 2,000 crore loan to
Blackstone-backed Gramercy Techpark Private Ltd for construction of a 120 megawatt (MW) data centre at Mahape in
New Mumbai. This will be the second such data centre by Gramercy in New Mumbai where the construction is expected
to start in mid of this year.Senior executive with a public sector lender said that NaBFID has extended the loan
(construction finance) and it is now looking to bring other lenders on-board by offloading part of its exposure.The data
centre company did not respond to the queries from Business Standard by the time of going to press.As part of due
diligence, the government-owned infrastructure financier has looked at occupancy prospects since that gives visibility
on cash flows for upkeep and repayments. It has also considered the power supply arrangements also, bank executive
said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 05-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

22
 LIC's Q3 FY25 results: Net profit rises 17% to Rs 11,056.5 crore

A drop in expenses helped state-owned Life Insurance Corporation of India (LIC)

report a 17 per cent year-on-year (Y-o-Y) increase in net profit at Rs 11,056.5 crore in
the October-December quarter of FY25 (Q3FY25). Its expenses declined 20.76 per
cent Y-o-Y to Rs 14,415.80 crore, aided by a nearly 30 per cent drop in employee-
related expenses. The expenses of management ratio stood at 13.47 per cent, against
15.5 per cent in the year-ago period.LIC’s value of new business (VNB) premium stood
at Rs 1,926 crore in Q3FY25, down 26.87 per cent Y-o-Y. Its VNB margin, a measure
of profitability for life insurers, stood at 19.35 per cent .According to LIC management,
the state-run insurer did not face a major impact from the surrender value norms and
has adopted a mix of changes in commissions based on persistency and revisions in
ticket size to mitigate the impact of regulations effective from October 1, 2024.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 05-02-2025

India's student housing market expected to expand as demand rises

India’s student housing market is set to grow as demand rises in education hubs where millions of young people need hostel
and rental accommodation, according to experts. “According to various market reports, the Indian student housing market is
estimated to reach approximately $780.5 million by 2030 with a CAGR (compound annual growth rate) of 6.6 per cent from
2025 onwards,” said Santhosh Kumar, vice-chairman, Anarock Group, a real estate consultancy.“I expect student housing to
grow by 20-30 per cent annually, if not more, for at least the next decade,” said Sunny Garg, co-founder and chief executive
officer (CEO) of Crib, a property technology platform.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 05-02-2025

Jammu and Kashmir Bank receives GST notice of over Rs 16,000 crore

Jammu and Kashmir Bank (J&K Bank) announced on Wednesday that it has received a Goods and Services Tax (GST) notice
amounting to over Rs 16,000 crore. Of this, Rs 8,130.66 crore pertains to the GST demand, with an equal amount imposed as
a penalty, issued by the joint commissioner of the central GST commissionerate in Jammu. The bank has stated that it has
taken appropriate legal action in the matter, as it believes that it has a strong case on merit. Expert opinions on the subject
have stated that the demand is without legal justification and will be set aside by a court of appropriate jurisdiction.“…we
believe that the demand order shall have no material impact on the financials, operations, or other activities of the bank,” it
said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 06-02-2025

40% of Indian farmers now paying electronically, says McKinsey survey

Cash is no longer the king for Indian farmers, with

digital payments at the retail level catching on pretty
fast. And they are increasingly moving to formal credit
channels like banks and subsidised government credit.
While farmers are increasingly buying crop insurance
as well as biologicals to improve yields, they still rely on
traditional farming methods instead of adopting
modern farming technology. And they are the least
enthusiastic of growers surveyed globally about digital
interactions at all the stages of the purchase journey,
from research to planning the next stop, according to
the latest survey by McKinsey .The survey was based on interactions with over 1,031 India farmers as part of McKinsey Global
Farmers Insight Survey across 4,400 producers in 2024. The consultancy firm had undertaken a similar study in 2022. The
good news is that 40 per cent of the farmers said that they pay electronically compared to just 11 per cent in 2022. The increase
is in line with the expansion of smartphones and their penetration led by low-cost data and facilitated by UPI.Not only that
adoption of insurance products is catching on — as much as 37 per cent of the respondents said they used crop insurance
compared to only 8 per cent in 2022. This is clearly reflected in the increase in enrolment in the Pradhan Mantri Fasal Beema
Yojana, the government’s crop insurance product.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 06-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

23
 Q3 results review: Low core income, slippages hit banks' profitability

Lower core income, muted margins, and higher slippages weighed on the
Indian banking sector’s (excluding small finance banks) profitability in the
October–December quarter (Q3FY25). According to Capitalline data, the net
profit of 32 scheduled commercial banks (SCBs) grew by 21.2 per cent year–
on–year (Y-o-Y) but dipped 2.4 per cent sequentially. Excluding State Bank of
India (SBI), the banking sector’s net profit was up 12 per cent Y-o-Y. SBI, the
country’s largest lender, on Thursday, reported a net profit of Rs 16,891 crore
for Q3FY25, up 84.32 per cent Y-o-Y.While private sector lenders' net profit
grew by 3.8 per cent Y-o-Y, state-owned lenders reported a robust 47 per cent
Y-o-Y growth in net profit, mostly supported by SBI’s handsome rise in
profits.Net interest income (NII) of the banking sector saw modest growth of
7.1 per cent Y-o-Y as interest expenses grew faster than the interest earned on
account of banks shelling out more to acquire deposits. Sequentially, the NII
of the lenders was up marginally by 1.3 per cent. While other income for the lenders was up 12 per cent Y-o-Y, it plunged by
over 10 per cent sequentially.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 06-02-2025

Foreign sales in financials drive second-highest monthly outflows in Jan

India’s financials accounted for nearly a third of the foreign sales from the
country’s equity markets in January, highest outflows among sectors, data from the
National Securities Depository Limited (NSDL) showed on Thursday. Last month,
foreign portfolio investors (FPI) offloaded domestic equities worth about $9 billion,
the second-highest monthly sales on record. Financials lost about $3 billion, the
third-highest for the sector on record. The Nifty financial services index shed 1.2
per cent and Nifty 50 dropped 0.6 per cent last month — modest losses despite the
high sales. “The drop is relatively minor compared to past periods of sustained FPI
outflows, which is partly because of the larger presence of domestic institutional
investors,” said Neelkanth Mishra, head of global research at Axis Capital.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 06-02-2025

Gold demand up 1% in 2024, to remain supported by economic uncertainty: WGC

Global gold demand including over-the-counter (OTC) trading rose by 1 per cent to a record high of 4,974.5 metric tonnes in
2024 as investment increased, the World Gold Council (WGC) said on Wednesday, adding that central banks sped up buying
in the fourth quarter. Spot gold prices rose by 27 per cent last year, the most since 2010, as investors chose the metal to hedge
against global risks and as the US Federal Reserve slashed interest rates. Prices hit another all-time high on Tuesday, driven
by safe-haven demand after China retaliated with tariffs on the United States in response to President Donald Trump's trade
levies. Central banks, a major source of gold demand, bought more than 1,000 tonnes of the metal for the third year in a row
in 2024. The National Bank of Poland was the largest such buyer, adding 90 tonnes to its reserves, the WGC, an industry body
whose members are global gold miners, said in a quarterly report.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 06-02-2025

Gold consumption in India to cool in 2025 as prices soar, says WGC

India's gold consumption in 2025 is set to moderate from last year's nine-year peak, as a rally in
prices to a record high is seen dampening jewellery demand, even as investment demand rises,
the World Gold Council (WGC) said on Wednesday. Demand for gold could stand between 700
metric tonnes and 800 metric tonnes, compared to last year's 802.8 tonnes, which was the
highest since 2015, Sachin Jain, CEO of WGC's Indian operations, told Reuters. Historically,
rising gold prices first affect jewellery customers, and if prices keep rising and remain volatile
this year, jewellery demand will be impacted, Jain said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 06-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

24
 Union Cabinet approves new income-tax Bill; law set to be simpler

The Union Cabinet on Friday approved the new income-tax Bill, which is likely to be tabled in Parliament next week. The Bill
is expected to reduce the number of sections by almost a third, according to a government official. “We have tried to reduce
sections by 25-30 per cent to make the law simpler and more concise. We have removed proviso and explanations and have
halved the word count,” the official said. The authorities have not been given excessive power, the official explained. “There
is no excessive case of delegation. Substantive power relating to quantification of income and levy of rates remain with
Parliament. Every single rupee has to be collected after Parliamentary approval, this is the fundamental principle of taxation
and it can never change. However, some provisions could be made more compact by shifting the procedural details into rules,”
he added.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 07-02-2025

Severe delays in Rs 1 trillion national highway projects: CareEdge Ratings

Adding to the government’s woes with delays in infrastructure projects, more than Rs 1 trillion worth of national highway
projects awarded under the Hybrid Annuity Model (HAM) have been experiencing severe delays, rating agency CareEdge
Ratings said on Friday. “CareEdge Ratings forecasts a nearly 7-10 per cent decline in the pace of national highway construction
in FY25 compared to FY24. The construction rate is expected to slow from 12,350 km in FY24 to 11,100-11,500 km in FY25,
closer to nearly 31 km per day,” it said.In the report, the agency conducted an extensive analysis of 374 HAM projects awarded
by the National Highways Authority of India (NHAI) between 2015 and 2024. “These projects span an aggregate length of
approximately 16,000 km and have a total bid project cost (BPC) exceeding Rs 4.03 lakh crore. As of the end of September
2024, 42 per cent of the sample BPC, aggregating over Rs 1.65 lakh crore, had been commissioned, while around 45 per cent
of the projects, aggregating over Rs 1.80 lakh crore, are in the construction phase, and the remaining 13 per cent are awaiting
the appointed date to commence construction,” it said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 07-02-2025

Life insurance new business premiums fall 8.15% to Rs 30,825 cr in Jan

The new business premiums (NBP) of life insurance companies in January 2025 dropped by 8.15 per cent year-on-year (Y-o-
Y) to Rs 30,825.17 crore, tracking a fall in Life Insurance Corporation of India’s (LIC) premiums and a minor moderation in
private life insurers’ premiums. According to data published by the Life Insurance Council, LIC’s premium dropped 13.89 per
cent Y-o-Y to Rs 16,292.67 crore, while private insurers reported a 0.73 per cent Y-o-Y decline in NBP to Rs 14,532.5 crore.
This is the second consecutive month LIC has seen a drop in new business premiums.Meanwhile, the largest private life
insurer, SBI Life Insurance, saw its premium decline by 37.2 per cent to Rs 3,275.26 crore, while HDFC Life posted 25.47 per
cent Y-o-Y growth to Rs 3,011.4 crore. ICICI Prudential Life’s premium rose by 13.61 per cent during the month to Rs 1,777.53
crore.Other major players, including Max Life Insurance and Bajaj Allianz Life Insurance, posted 8.8 per cent Y-o-Y growth
and a 6.86 per cent Y-o-Y decline, respectively.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 07-02-2025

Banks' net interest margins likely to decline further after RBI rate cut

The 25-basis-point (bps) cut by the six-member Monetary Policy

Committee (MPC) last week is expected to further compress net interest
margins (NIMs) of banks. The banks were already under pressure due to the
elevated cost of deposits because of tight liquidity conditions. Margins are
under pressure also due to recalibration in the unsecured retail segment,
which typically yields higher margins for banks."The 25-bps cut was
expected. This would be slightly negative on the NIMs as the deposit cost
will not come down but the lending rates will fall immediately on the
external benchmarked linked loans (EBLR). Having said that, some liquidity
measures, including a cash reserve ratio (CRR) cut, would have helped,” said a senior private sector banker.The external
benchmarked linked loans will get repriced immediately to reflect the rate cut. The deposit rates will take time to reflect the
same. Only the new deposits that will be acquired will be at the revised rates but given the tight market, it is unlikely that
banks will reduce their deposit rates so soon. According to Swaminathan J, deputy governor, RBI, the EBLR-linked loan book
is about 40 per cent, on which the rate cut impact will be more immediate.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 10-02-2025
SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

25
 HDFC Bank raises MCLR on overnight tenure by 5 basis points to 9.20%

The country’s largest private sector lender HDFC Bank has increased its marginal cost of funds based lending rate
(MCLR) on the overnight tenure by 5 bps, with new effective rate being 9.20 per cent versus 9.15 per cent earlier. With
this revision, the bank’s MCLR now ranges from 9.20 to 9.45 per cent.This comes even as the six-member monetary
policy committee (MPC) of the Reserve Bank of India (RBI) cut the policy repo rate by 25 bps. This was the first cut in
the repo rate in as many as five years.With a cut in the policy repo rate, external benchmark-linked loans get repriced
immediately to reflect the cut, but MCLR-linked loans take up to two quarters to reflect the change in policy rates.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 10-02-2025

Bid to mitigate margin impact: Life insurers rejig agent fee structures

Listed life insurance companies have modified their commission structure based on persistent performance of various
distribution channels, and redesigned products to mitigate the impact of the revised surrender value norms. The
Insurance Regulatory and Development Authority of India (Irdai) revised the surrender value guidelines effective from
October 1, 2024. HDFC Life has revised its commissions based on the persistency profile of the distributor. “It is a
combination depending on the level of business, partners, inherent persistency in that channel, and so on. We have
done a combination of commission clawback, commission deferral, and reduction in commission. It is fairly bespoke
for every relationship,” said Vibha Padalkar, managing director and chief executive officer (MD & CEO) of the
company.Axis Max Life has also followed a similar strategy and revised its commissions for various distributors based
on how they perform on persistency scale. On the other hand, SBI Life Insurance said that it has changed only the
reward structure and not the commission structure.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 11-02-2025

Private life insurers to lead APE growth in FY25 as LIC struggles

India’s private life insurers are set to maintain strong growth momentum in FY25, driven by sustained expansion in
annualised premium equivalent (APE), particularly in individual policies. In contrast, the Life Insurance Corporation
of India (LIC) continues to lag, reporting muted growth in total APE and a steep decline in January 2025. Private life
insurers recorded a 17.9% YoY growth in total APE for January 2025, with HDFC Life (+26.6%), IPRU Life (+17.6%),
and Tata AIA (+12.4%) leading the pack. For the first 10 months of FY25 (10MFY25), IPRU Life emerged as the top
performer with a 25.9% YoY growth, followed by Max Life (+21%), Tata AIA (+20.6%), and HDFC Life (+19.5%). SBI
Life, while still growing, trailed at +9.1% YoY., according to a report by ICICI Securities. Growth in individual APE was
even stronger at 19.6% YoY in January, with HDFC Life (+25.3%), SBI Life (+18.4%), and Max Life (+13.8%) seeing
robust expansion. For 10MFY25, IPRU Life led with +28.3% YoY growth, followed by Max Life (+23.5%), HDFC Life
(+22.4%), and Tata AIA (+19.3%).
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 11-02-2025

Rising gold loan NPAs signal stress in household finances

Non-performing assets (NPAs) related to gold loans surged by 21.03% for scheduled commercial banks (SCBs) between
March and June 2024, indicating rising financial stress among households. Data presented by the Finance Ministry in
the Lok Sabha also showed that gold loan NPAs for upper and middle-layer non-banking financial companies (NBFCs)
rose 18.14% during the same period. As of June 30, 2024, the gross NPA ratio for gold loans stood at 0.22% for SCBs
and 2.58% for upper and middle-layer NBFCs. This increase comes amid a broader rise in per capita household
liabilities, as highlighted in another Finance Ministry response. The organised gold loan market—comprising banks and
NBFCs—is projected to cross Rs 10 lakh crore in FY25 from Rs 9.2 lakh crore in FY24, with expectations of reaching Rs
15 lakh crore by March 2027.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 12-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

26
 Airtel Payments Bank Q3 profit surges 70% to Rs 18.5 crore

Airtel Payments Bank on Wednesday reported 70 per cent increase in net profit at Rs 18.5 crore for December quarter
2024-25. It had cinched a record growth with quarterly revenue crossing Rs 700 crore, up by 49 per cent year-on-year,
a release said. "The Bank's net profit stood at Rs 18.5 crore, up by 70 per cent YoY and EBITDA grew 66 per cent YoY to
Rs 87 crore in Q3 FY25," it said. During the quarter, the payments bank's Monthly Transacting Users (MTU) exceeded
100 million, up by 62 per cent over the same period previous year. The annualised gross merchandise value (GMV) of
about Rs 4,00,000 crore reflected the growing adoption of the payments bank's digital savings accounts, merchant
propositions and other products, it said.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 12-02-2025

HDFC Bank launches India's first salary account with cyber fraud protection for PSU employees

HDFC Bank, an Indian private sector bank, on Wednesday launched India’s first Public Sector Undertaking (PSU)
Salary Account with a cyber fraud cover - ‘Anmol Savings Account’. As a part of the ‘Speciale’ suite of savings account
targeted at varied customer segments with diverse needs – senior citizens, working professionals, women, HDFC Bank
offers a cyber fraud cover* up to ₹ 1.5 lakhs to senior citizens while the cyber fraud cover* varies from ₹ 25,000-50,000
for professionals. Similarly, ‘Speciale Gold Women’ account gives a cancer cover *of up to ₹ 5 lakhs for women.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 12-02-2025

Karnataka governor approves ordinance to curb coercive microfinance practices

Two days after the state government resubmitted the Karnataka Micro Finance (Prevention of Coercive Actions)
Ordinance 2025, Governor Thaawarchand Gehlot approved it on Wednesday. Chief Minister Siddaramaiah posted on
X that the Ordinance will come into effect immediately. The governor had advised the government to introduce the Bill
in the coming budget session and pass it after a thorough discussion. Under the Ordinance, violators can be tried and
punished by the Judicial Magistrate First Class. They may be sentenced up to 10 years’ imprisonment and ordered to
pay a fine up to Rs 5 lakh. The offences under the Ordinance are cognisable and non-bailable.
Click here to read full article ...
[Source website : newindianexpress.com]
Published on : 12-02-2025

FPI selloff leads to worst equity market start in nearly 10 years

Foreign portfolio
investors (FPIs)
have sold over $10
billion (more than
₹97,000 crore)
worth of Indian
equities in the first
six weeks of 2025
— the highest
outflow ever
recorded during
this period. This
massive selloff has
led to the worst
start for domestic markets in nearly a decade. The selloff has been driven by a combination of slowing corporate
earnings and shifts in US policy, which have made US debt securities more attractive and strengthened the
dollar. Heightened FPI selling has pushed the benchmark Nifty down by 2.6 per cent, while the Nifty Midcap 100 and
Nifty Smallcap 100 have fallen by 11 per cent and 15 per cent, respectively. This marks the steepest six-week decline at
the start of a year since 2016 for all three indices.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 13-02-2025
SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

27
 RBI lifts restrictions from Kotak Mahindra Bank onboarding customers online, issue credit cards

Reserve Bank of India has lifted restrictions on Kotak Mahindra Bank that had barred the lender from onboarding new
customers through its online channels and issuing new credit cards. The central bank had placed the restrictions on the
bank on April 24, 2024. RBI in a statement said, "Having satisfied itself based on the submissions, and remedial
measures undertaken by the bank, the Reserve Bank, has decided to lift the aforementioned restrictions placed on Kotak
Mahindra Bank Limited." A detailed communication has been issued to the bank in this regard. Kotak Mahindra Bank
was directed to cease and desist from onboarding of new customers through its online and mobile banking channels,
and issuing fresh credit card "We welcome the RBI's decision to lift the business restrictions on Kotak Mahindra Bank.
This decision follows the Bank's successful implementation of remedial measures and compliance validation through
an external audit. We will continue to work closely with the RBI to shortly resume digital onboarding of new customers
and issuing fresh credit cards," said a Spokesperson from the Kotak Mahindra Bank.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 13-02-2025

SIDBI ties up with France's AFD for USD 100 million credit line

The Small Industries Development Bank of India on Wednesday said it has tied up with AFD, under which the French
lender will provide a USD 100 million credit line. The resources will be deployed by Small Industries Development Bank
of India (SIDBI) to scale up its green finance solutions for the Indian micro, small and medium enterprises (MSMEs),
according to a statement. AFD will provide a credit line of USD 100 million to SIDBI to expand access to affordable
financing for MSMEs investing in energy-efficient technologies, renewable energy solutions, and climate-friendly
business practices, it said.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 13-02-2025

Income-Tax Bill empowers taxman to ask for access to electronic systems

In a move that could make it easier to scrutinise cryptocurrency and other virtual digital assets, the new income-tax Bill
introduced in the Lok Sabha on Thursday empowers tax authorities to demand codes for access to electronic systems
during surveys and searches. Section 247 of the Bill broadens search and seizure powers of income-tax authorities,
covering access not only to physical and local assets but also digital records and virtual spaces.Section 253 allows tax
officers to request “technical and other assistance, including access codes” during surveys, making it mandatory for
taxpayers to provide access to Cloud spaces, computers and electronic records. According to this Section, the income-
tax authority could ask businesses “to provide the necessary technical and other assistance (including access code) to
enable the inspection of such books of account or other documents, or computer system, or any other material connected
with such systems, including virtual digital space, as may be required and which may be available at such a place”.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 14-02-2025

What ails cooperative banks? Over 60 banks closed during NDA govt rule since 2014

The Reserve Bank of India (RBI) has barred New India Co-Operative Bank from accepting fresh deposits and disbursing
loans, citing 'supervisory concerns.' It is the second big bank in recent times in Mumbai after Punjab & Maharashtra
Cooperative (PMC) Bank that went down. India’s cooperative banking sector has witnessed multiple failures in recent
years, raising concerns about financial stability. The collapse of PMC Bank in 2019 due to fraudulent lending to HDIL
remains a major example. The bank had Rs 11,600 crore in deposits and Rs 8,400 crore in advances at the time of its
failure. Similarly, Guru Raghavendra Cooperative Bank faced restrictions due to financial mismanagement, and
Maharashtra State Cooperative (MSC) Bank was investigated for money laundering. Between 2014 and 2023, over 60
urban and rural cooperative banks shut down. In 2022 alone, 12 cooperative banks ceased operations, followed by 17 in
2023. As of 2023, urban cooperative banks (UCBs) had gross non-performing assets (NPAs) of 8.8% on total advances
of Rs 3.30 lakh crore, while scheduled UCBs had NPAs of 6.6% on advances of Rs 1.52 lakh crore.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 15-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

28
 Public Banks outpace private peers in expansion; SBI, Canara add most branches in Q3

Private banks have typically led branch expansion, but in the third quarter of FY25, public sector banks outpaced their
private counterparts in growth. India’s largest public sector lender, State Bank of India (SBI) and Canara Bank led the
expansion among public sector banks (PSBs), while Axis Bank and ICICI Bank were the biggest gainers in the private
sector. In Q2 FY25, HDFC Bank had outpaced all lenders with 241 new branches, followed by Axis Bank, which had
added 150. However, in Q3, the momentum shifted, with PSU banks playing a more dominant role in physical network
expansion.
How did branch expansion for Public Sector Banks?
Public sector banks (PSBs) continued their steady growth, with SBI once again maintaining its leadership in terms of
physical presence. After adding 60 branches in Q2, SBI ramped up its expansion significantly in Q3, opening 200 new
branches and strengthening its footprint in key regions. Canara Bank, which had added 35 branches in Q2, took a more
aggressive approach in Q3, expanding by 158 branches. Bank of Baroda added 18 branches in the quarter ending
December, bringing the total count of 120 branches opened in FY25 as of yet. Indian Overseas Bank also displayed
notable growth, increasing its branch count by 53.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 15-02-2025

From Aadhaar to Bhashini, India's digital services grow in numbers

India has various

programmes to use digital
technology for providing state
services or making daily life
convenient. Four such
services have grown rapidly.
BharatNet provides high-
speed internet access in rural
areas. Bhashini is an AI-based
tool for translating Indian
languages. DigiLocker lets
citizens store documents in a
Cloud-based locker for easy
access and sharing. Aadhaar is
the national biometric identity
card.
Click here to read full article ...

[Source website : business-standard.com]

Published on : 16-02-2025

Pick up in private capex to improve loan growth from H2FY26: Report

Despite witnessing tough conditions in the third quarter, loan growth will improve from the second half of Financial
Year (FY) 2026, driven by a recovery in the unsecured segment and a gradual pickup in private capital expenditure
(capex), according to a report by Mirae Asset Sharekhan. The report added that the expectations are supported by better
liquidity and rate cuts by the Reserve Bank of India (RBI). It added that shallow rate cut expectations should help
support net interest margins (NIMs). Additionally, the report adds that the credit costs are anticipated to normalise as
stress in the unsecured segment stabilises. The third quarter of FY2025 has been challenging for the banking sector due
to the higher credit costs, slower loan and deposit growth, and pressure on NIMs. Private banks in the third quarter
reported muted earnings growth mainly led by weak operating performance and a steady rise in credit cost, while Public
Sector Banks (PSBs) reported healthy earnings growth, led by lower credit costs, offsetting weak operating performance,
the report mentions. Higher credit cost was on account of the unsecured segment, while the lower share of unsecured
loans for PSU banks supported earnings, according to the report.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 16-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

29
 Entire claims settled by deposit insurer was for co-op banks in FY24

The Deposit Insurance and Credit Guarantee Corporation (DICGC) settled claims worth Rs 1,432 crore in the financial
year 2023-24, the entire amount being for cooperative banks, Reserve Bank of India (RBI) data showed.According to
DICGC’s annual report for FY24, claims settled in FY24 was Rs 1,432 crore for liquidated banks as well as for lenders
which are under RBI’s all-inclusive directions (AID).“The DICGC settled claims of Rs 1,432 crore during 2023-24, which
pertained entirely to co-operative banks placed under liquidation/ all-inclusive directions (AID),” the Trend and
Progress report of RBI noted.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 17-02-2025

What is Mutual Credit Guarantee Scheme for MSMEs facilitating Rs 100 crore loan?

Union Finance Minister Nirmala Sitharaman launched the Mutual Credit Guarantee Scheme for MSMEs (MCGS -
MSME) for facilitating loans upto Rs 100 crore. These loans can be availed by the MSMEs for purchase of machinery or
equipment without collateral. While launching the scheme, Finance Minister also distributed sanction letters to MSMEs
eligible under the scheme in Mumbai. The scheme is expected to facilitate easy availability of credit for MSMEs and give
a major boost to the manufacturing sector in India.
What is the Mutual Credit Guarantee Scheme for MSMEs? The MCGS- MSME aims at providing 60%
guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions
(MLIs) for credit facility up to Rs 100 crore to eligible MSMEs for purchase of equipment/machinery.
Do MSMEs need collateral for the loan? No, the scheme will facilitate collateral-free loans by banks and financial
institutions to MSMEs who are in need of debt capital for their expansion and growth.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 17-02-2025

Government actively considering raising deposit insurance limit beyond Rs 5 lakh

The government is actively considering raising the deposit insurance scheme limit beyond Rs 5 lakh, said the secretary
at the Department of Financial Services, M Nagaraju, on Monday. "As and when the government approves, we will notify
it. This is under the consideration of the government," the top official told reporters at a press conference in Mumbai
when asked to respond to the crisis-hit New India Cooperative Bank. The secretary reiterated that increasing the
insurance deposit insurance is under active consideration. Deposit insurance, as we know it today, was introduced in
India in 1962. India was the second country in the world to introduce such a scheme, the first being the US in 1933.
Banking crises and bank failures worldwide underscored the need for depositor protection. Further, the secretary
refrained from commenting on the status of the Mumbai headquartered bank, which is in deep stress. "RBI is seized of
the matter... we are not going to comment on that," he said.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 17-02-2025

Bank of Maharashtra gets RBI nod for opening GIFT City branch

State-owned Bank of Maharashtra (BoM) on Sunday said it has received approval from the Reserve Bank of India to set
up an International Financial Services Centre (IFSC) Banking Unit at GIFT City. The branch will function as Bank of
Maharashtra's first international branch carrying out offshore banking operations from India. Speaking on the
development, BoM MD & CEO Nidhu Saxena said," This is a significant opportunity for our bank as we continue to
expand our operations across geographies. The opening of IBU in GIFT City will be yet another milestone in the bank's
growth story." This development will help expand international banking business and also enable the bank provide
specialised banking services to its customers, he added.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 17-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

30
 Karnataka Bank reports to RBI suspicious cross border UPI transaction of Rs 18.87 crore

Karnataka Bank Ltd, a private sector lender, has the discovery of deficiencies in its reconciliation process for cross-
border Unified Payments Interface (UPI) transactions, leading to an estimated net loss of ₹18.57 crore after
immediate recovery. In a regulatory filing on National Stock Exchange (NSE), the bank stated that during a review
of suspicious UPI Global transactions, certain reconciliation process deficiencies were identified. However, the
bank assured that this issue does not impact its operations or customer service. The problem stemmed from the
reversal of transaction amounts to customers. Karnataka Bank has reported the matter to the Reserve Bank of
India (RBI) on February 17, 2025, and has initiated steps to recover the lost amount. Additionally, the bank has
implemented enhanced control measures to prevent similar incidents in the future

Click here to read full article ...

[Source website : bfsi.economictimes.indiatimes.com]
Published on : 18-02-2025

Banking sector faced Greater-ThanExpected pressure in Q3FY25: Report

The Indian banking sector experienced a more severe impact in the third quarter of FY25 than previously
anticipated, says a report by Centrum. The report highlighted a noticeable slowdown in both loan and deposit
growth, rising credit costs, and weakening profitability across most banks. It said "a challenging period for banks
in our coverage universe, driven by the continued downtrend in the microfinance (MFI) segment (which impacted
small finance banks) and an overall slowdown in system credit growth. However, the actual impact was more
severe than expected, as reflected in Q3FY25 results". According to the report, sequential loan book growth in
Q3FY25 stood at 2.8 per cent quarter-on-quarter (QoQ), a significant drop from 5.4 per cent in Q3FY24. Similarly,
deposit growth also weakened, slowing to 2.7 per cent QoQ compared to 3.9 per cent in the same period last year.
The report had already predicted a tough quarter for banks, particularly due to the continued downturn in the
microfinance (MFI) segment, which impacted small finance banks (SFBs). Additionally, an overall slowdown in
system credit growth further contributed to the sector's challenges. However, the actual results were worse than
expected. Asset quality also deteriorated, with gross slippages rising by 70 basis points (bps) QoQ. Federal Bank
was the only exception to this trend. Credit costs increased for most banks, except for Suryoday Small Finance
Bank, which recorded a sharp decline in its provision coverage ratio (PCR) due to a policy change for loans insured
under the Credit Guarantee Fund for Micro Units (CGFMU) scheme. The challenging environment led to net
interest margin (NIM) compression and weaker net interest income (NII) growth across the banking sector,
further pressuring profitability.

Click here to read full article ...

[Source website : bfsi.economictimes.indiatimes.com]
Published on : 18-02-2025

57% of borrowers under 30 use loans for investing in skills: Report

A recent report highlighting borrowing trends amongst the younger generation showed that 57% of borrowers
under 30 took loans to gain industry-relevant knowledge and specialized skills. This included loans for short-term
courses, digital certifications, or technical training. The study also showed the entrepreneurial spirit of GenZ with
25% of young professionals borrowing to fund their business venture ideas, with 59% of these loans directed
toward expansion and 27% toward marketing. The report shed light on the increasing use of credit for lifestyle
expenses as 20% youth borrowing for lifestyle needs, with shopping (45%) and travel (31%) as the top expenses.
GenZ is seen to have an increasing need for Financial security, with regards to health expenses. In 2024, 24% of
Gen Z borrowers took loans for medical emergencies, with 88% of the amount being spent on medicines and
treatment.

Click here to read full article ...

[Source website : bfsi.economictimes.indiatimes.com]
Published on : 18-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

31
 Earning Indians allocating over 33 pc of income towards paying loan EMIs: Report

As private consumption surges in India, earning individuals across all city tiers are allocating more than 33 per cent of their
income (on average) towards paying loan EMIs, a report showed on Wednesday. People spend the highest amount of money
on their obligatory expenditures, which accounts for 39 per cent of their total spending, followed by 32 per cent for necessity
expenditures and 29 per cent for discretionary expenditures, according to the report by B2B fintech company Perfios and PwC
India. The findings showed that more than 62 per cent of discretionary expenditures are allocated towards lifestyle purchases,
which include shopping for fashion and personal care items. As the salary increases from entry-level earners to high-income
earners, both the amount of money spent on food expenditure (ordering or eating out) and the frequency at which it is spent
increase. Average total amount spent on house rent is 4.5 per cent higher in tier 2 cities than it is in tier 1 cities, the report
found.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 19-02-2025

Provisioning for NPAs up 20% in December, driven by sharp rise in private sector bank provisions

Aggregate provisioning toward nonperforming assets (NPAs) for a sample of 29 banks increased sharply by 20% year-on-year
in the December quarter to Rs 23,298 crore, driven by a near doubling in such provisions by private sector lenders, pointing
to what could possibly emerge as an area of concern. On the other hand, provisioning by public sector banks was at a record
low amid falling credit costs.
Provisioning at PSBs down 18.6% The uptick was largely on account of higher provisioning for the retail loan category,
including unsecured loans. Banks tend to be aggressive when provisioning for this segment—up to 100% for loans that are
over 120 days past due (DPD). The year-on-year rise in total NPA provisions followed a decline in the previous two quarters.
While the overall loan loss provisioning level has gradually inched up from a low of Rs 18,169.5 crore in the March 2023
quarter, it continues to stay well below the peak of Rs 85,391 crore seen in the March 2019 quarter. For state-owned banks,
aggregate NPA provisioning fell 18.6% to Rs 9,828.7 crore in the December quarter.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 19-02-2025

PNB reports Rs 270.57 crore loan fraud by Gupta Power Infrastructure

State-owned Punjab National Bank on Tuesday reported a fraud of Rs 270.57 crore by Odisha-based Gupta Power
Infrastructure Ltd to the Reserve Bank. Borrowal fraud of Rs 270.57 crore has been reported to the Reserve Bank of India
(RBI) in non-performing asset (NPA) account of Gupta Power Infrastructure Ltd, PNB said in a regulatory filing. The loan was
given by Station Square branch of the bank in Bhubaneswar, it said. The bank has already made provisions amounting to Rs
270.57 crore, according to prescribed prudential norms. For the December quarter, PNB posted more than two-fold jump in
net profit to Rs 4,508 crore as against Rs 2,223 crore in the same quarter a year ago. The company's total income increased to
Rs 34,752 crore from Rs 29,962 crore in the same period a year ago, PNB said in a regulatory filing.

Click here to read full article ...

[Source website : bfsi.economictimes.indiatimes.com]
Published on : 19-02-2025

India’s pension AUM to grow to Rs 118 trillion by 2030: DSP Pension Fund Managers

DSP Pension Fund Managers projects a substantial growth in India's pension assets under management (AUM), estimating a
total of Rs 118 trillion by 2030, with the National Pension System (NPS) expected to constitute approximately 25% of this
total. This surge is anticipated to be fueled by evolving Indian demographics and their subsequent effects, according to a press
release. Also Read | SIP calculator: Rs 250 JanNivesh scheme can leave you with Rs 17 lakh corpus in 30 years India's elderly
population is projected to increase 2.5 times by 2050, accompanied by a rising life expectancy rate post-retirement, averaging
around 20 years. Currently, India's pension market is significantly under-penetrated, representing only 3% of the country's
GDP. Indian retail investors are increasingly transitioning from traditional savings methods to market-linked investments,
demonstrated by a decline in reliance on cash and bank deposits from 62% to 44% over the past decade. The NPS private
sector AUM has experienced substantial annual growth, increasing by 26.8% over the last five years, from Rs 84,814 crore to
Rs 2,78,102 crore. New registrations have seen a significant boost between fiscal years 2020 and 2024, with male subscribers
increasing by 65% and female subscribers by 119%. NPS Vatsalya, introduced in September 2024, has been well-received,
attracting over 86,000 subscribers.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 18-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

32
 India's insurance market poised to reach $222 bn by 2026, growing at 17% CAGR: Report

India's insurance sector has witnessed significant growth and development over the past few years with the domestic
insurance market grown at a CAGR of 17 per cent over the last 2 decades and is expected to reach a size of USD 222
billion by 2026, according to Teamlease Regtech report. However, with growth comes the burden of increasingly
complex compliance obligations. A typical single-entity insurance company with a corporate office in a single state needs
to deal with 2,236 unique compliances. The annual compliance obligations rise to 4,638 once the frequency of
compliances is factored in. The sector is governed by a variety of laws at the central, state, and municipal levels, resulting
in hundreds of distinct compliance requirements annually.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 18-02-2025

Public Sector Banks disburse over INR 14.5 trillion to MSMEs in Q3 FY25, SBI leads credit share

Public Sector Banks (PSBs) have continued to play a crucial role in financing
the Micro, Small, and Medium Enterprises (MSME) sector, disbursing over
INR 14.5 trillion in Q3 FY25. This marks an increase from INR 13.12 trillion
in Q2 FY25, reflecting strong credit demand and economic resilience. PSBs
are often guided by government mandates and priority sector lending (PSL)
norms. Under PSL requirements, banks must allocate 40 per cent of their
net credit to specified sectors, with a significant share earmarked for
MSMEs.
Here’s a closer look at how various PSBs have contributed to the
MSME credit disbursal in Q3 FY25:
Among PSBs, the State Bank of India (SBI) maintained its leadership
position, extending INR 4,96,359 crore in MSME loans, showcasing an 11.65 per cent year-on-year growth. The sector
remains vital for the Indian economy, with banks focusing on priority sector lending and government-backed credit
initiatives to support MSMEs.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 19-02-2025

HSBC India's pre-tax profit up 11% in 2024

Hongkong and Shanghai Banking Corp (HSBC), Europe's largest lender by assets, reported an 11% increase in pre-tax
profit at its Indian operations last calendar year at $1.68 billion, reflecting growth at both its wholesale and retail
banking divisions. The 160-year-old global bank, which recently got central bank approval to expand its geographic
reach in India beyond the customary metropolitan bailiwicks, said it is well placed to take advantage of both personal
banking and corporate banking opportunities locally. India was the fourth largest profit contributor outside its home
market for the UK-based bank in 2024, behind its Asian base Hong Kong ($11.88 billion), Canada ($4.72 billion) and
mainland China ($3.22 billion).
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 20-02-2025

Weaker rupee lifts NRI deposit inflows 42.8% to $13.33 billion in April-December 2024

The flow of funds from overseas Indians into non-resident Indian (NRI) deposit schemes rose by 42.8% to $13.33 billion
between April and December 2024, up from $9.33 billion during the same period in 2023, according to data from the
Reserve Bank of India (RBI). The rise in NRI deposits has been attributed to attractive interest rates offered by Indian
banks and a stable economic outlook. Banks have been actively targeting the nonresident segment for deposits, with
some lenders reporting double-digit growth in FCNR deposits. Total outstanding NRI deposits stood at $161.8 billion
at the end of December 2024, compared to $146.9 billion a year earlier. However, this was slightly lower than the
$162.69 billion recorded in November 2024. NRI deposit schemes include foreign currency non-resident (FCNR)
deposits, non-resident external (NRE) deposits, and nonresident ordinary (NRO) deposits.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 20-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

33
 Irdai asks insurers to provide ASBA facility for premium payments

Insurance regulator Irdai has asked life and health insurers to provide BimaASBA, a facility wherein a policyholder blocks the
amount towards premium in his or her bank account which gets debited only when the policy is issued. According to Insurance
Regulatory and Development Authority of India (Iradi) norms, premium is required to be paid only after the insurer
communicates the decision of acceptance of the proposal to customer. Unified Payments Interface (UPI) One Time Mandate
(OTM) feature allows users to block funds in their bank accounts for specific transactions, ensuring availability of funds while
deferring actual payments. With an aim to facilitate smooth transactions of payment of premium, Irdai said UPI - OTM is
enabled to be used by insurers. "Under this facility called the 'Bima Applications Supported by Blocked Amount (BimaASBA),
transfer of money from the prospect to the insurer happens only when insurance policy is issued," it said.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 20-02-2025

Lower salary earners spending on essentials, debt servicing: Report

A Perfios-PwC India report on “How India spends:

A deep dive into consumer spending behavioúr’ has
it that individuals in lower salary brackets are
primarily channelling most of their earnings
towards meeting essential needs or to service debt.
Those in higher salary bands are allocating a
significant portion of their income toward
obligatory and discretionary spending. The dataset
analysed in the report comprises tech-savvy
borrowers who primarily use FinTech, non-banking
financial companies, and other digital platforms.
These borrowers were distributed across different
geographies (from Tier-3 to metro cities) and
income levels - from less than Rs 20,000 to more
than Rs 1 lakh.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 21-02-2025

India ranked second-least favoured in Asia Pacific, says BofA survey

India has been ranked as the second-least favoured market in the Asia Pacific region, according to the latest fund manager
survey by BofA Global Research. The survey reveals that allocations to Indian equities have dropped to their lowest level in
two years. “Allocations to China rebounded after a sharp decline last month, while support for Indian equities, once a market
favourite, continues to dwindle, reaching a two-year low,” the brokerage noted.Japan remains the clear favourite in the region,
followed by Taiwan. India and Thailand are placed at the bottom. Allocations to China rebounded after plummeting to near-
survey lows last month.Fund managers are overweight on Japan, Taiwan, China, and Singapore, while the biggest
underweights are in Thailand, followed by India and Australia. The survey, conducted between February 7 and 13, included
205 panellists managing $482 billion in assets. The BofA survey indicated a notable improvement in sentiment towards China.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 21-02-2025

After PNB, THIS state-owned lender reports ₹227-crore loan fraud by Odisha-based firm to RBI

Bank of India (BOI) on Friday, February 21, reported a fraud of ₹226.84 crore by an Odisha-based private company named
Gupta Power Infrastructure Ltd to the Reserve Bank of India (RBI). The state-owned lender informed that the non performing
asset (NPA) of Gupta Power Infrastructure is declared as fraud. The public-sector bank (PSB) has made provisions of ₹212.62
crore in the case of Gupta Power Infrastructure Ltd against the outstanding amount of ₹226.84 crore. The development
comes after leading PSB Punjab National Bank (PNB) reported the same loan fraud by the Odisha-based company on February
18.In a regulatory filing to the stock exchanges, PNB said it had reported a borrower fraud of ₹270.57 crore to the central bank
in Gupta Power Infrastructure Ltd's NPA account. The loan was given by the state-run bank's Station Square branch in
Bhubaneswar. According to the prescribed prudential norms, the bank has made provisions amounting to ₹270.57 crore.
Click here to read full article ...
[Source website : livemint.com]
Published on : 21-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

34
 AMFI launches 3 new investor initiatives: Chhoti SIP, Tarun Yojana, MITRA

The Association of Mutual Funds in India (AMFI) launched three strategic initiatives – Chhoti SIP - Sachetization of
Mutual Funds, Tarun Yojana, and MITRA - Mutual Fund Investment Tracing and Retrieval Assistant — to advance
financial inclusion, promote investor awareness, and simplify trace and retrieve forgotten investment. These initiatives
align with SEBI and AMFI’s ongoing efforts to democratize mutual fund investments, ensuring wider participation
across diverse segments of society, according to a release.

Click here to read full article ...

[Source website : economictimes.indiatimes.com]
Published on : 21-02-2025

Centre kickstarts process for stake sale in PSBs and listed PFIs

As part of the long-promised financial sector reforms, the government on Monday kickstarted the process of diluting its
equity in select public-sector banks (PSBs) and listed public financial institutions (PFIs) by inviting bids from merchant
bankers and legal advisors. Finance Minister Nirmala Sitharaman in her 2021-22 Budget speech had also announced
the government’s intention to take up privatisation of two PSBs, besides IDBI Bank.The Department of Investment and
Public Asset Management (DIPAM) has issued Request for Proposal (RFP) for transaction advisors for a period of three
years from the date of empanelment, with the possibility of a one-year extension. The empanelment fees are set at ₹1
lakh for merchant bankers and ₹50,000 for legal advisors.According to the government’s disinvestment strategy, five
public-sector lenders, including Bank of Maharashtra (86.46 per cent), Indian Overseas Bank (96.38 per cent), UCO
Bank (95.39 per cent), Central Bank of India (93.08 per cent), and Punjab and Sind Bank (98.25 per cent) are required
to reduce their government stakes to below 75 per cent.

Click here to read full article ...

[Source website : business-standard.com]
Published on : 24-02-2025

Yes Bank tops S&P Global’s sustainability rankings, only Indian Bank in yearbook 2025

Yes Bank emerged as India’s highest-rated bank in sustainability for the third consecutive year, according to the latest
S&P Global Corporate Sustainability Assessment (CSA) 2024 and the Carbon Disclosure Project (CDP). With a CSA
score of 72 out of 100, the bank is the only Indian lender included in the S&P Global Sustainability Yearbook 2025, a
listing of the top 15% of global banking leaders based on ESG performance. The CSA, which evaluates up to 1,000 ESG
indicators such as climate strategy, financial inclusion, human capital development, and corporate governance, placed
Yes Bank ahead of its domestic peers. The bank also retained its A- (Leadership Band) rating from CDP, underscoring
its climate risk management and disclosure practices.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 24-02-2025

Banks slash lending and deposit rates after RBI’s repo rate cut

Indian banks have started reducing lending and deposit rates following the Reserve Bank of India’s (RBI) decision to
cut the repo rate by 25 basis points in February 2025. This marked the first rate reduction in nearly five years, bringing
the repo rate down to 6.25 per cent. The move by the central bank is aimed at stimulating economic growth by making
borrowing cheaper for individuals and businesses.

Banks that have cut lending rates Several public sector banks have already started reducing lending rates in
response to the policy shift. State Bank of India (SBI) has lowered its home loan rates by 25 basis points, bringing its
external benchmark lending rate (EBLR) down to 8.90 per cent. Punjab National Bank (PNB) has followed suit with
cuts across home, car, and personal loans.

Click here to read full article ...

[Source website : bfsi.economictimes.indiatimes.com]
Published on : 24-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

35
 Gold leasing prices surge as banks redirect the precious metal to US

The rate for leasing gold has surged from 2%-3% to 6%-7%, raising operational expenses and
squeezing profit margins for organised players such as Titan, Kalyan Jewellers, and PN Gadgil.
Rising leasing costs - The impact is significant, given that India is one of the world’s largest
consumers of gold. The rising costs are expected to put further pressure on the jewellery
industry, particularly organised players that depend on leased gold for inventory management.
The sharp increase in leasing rates is being driven by a tightening global gold supply. Indian
vaults are nearly empty as banks have redirected gold to the US, where it fetches a premium,
instead of returning it to India. This shift is occurring as physical gold prices in India trade at a discount to gold futures,
discouraging banks from repatriating the yellow metal.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 24-02-2025

Outward remittances see a spike of 19 % in Dec '24

India’s outward remittances has seen a turn around in its declining trends with a sharp rise to USD 2.4 billion in December
2024 from USD 1.9 billion November 2024, this drop was majorly driven by a drop in investment and equity. This is a sharp
rise of nearly 19%. In December 2024, travel expenses accounted for 60%, followed by family maintenance, education, and
gifts, which contributed 12%, 10%, and 8%, respectively. In comparison, last month, travel expenses accounted for 57%,
followed by family maintenance, gifts and education, which contributed 14%, 11%, and 9%, respectively. This data reflects a
slight shift in changing financial priorities among remittance senders.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 24-02-2025

'Rising temperature may increase probability of default in 30% of agri loan portfolio by 2030'

Rising temperature and growing threat of climate change may increase default risk in 30 per cent of agri and housing loans
portfolio in the next five years, according to an analysis by BCG. According to the report, the average global temperature has
already increased approximately 1.2 degree Celsius versus pre-industrial levels leading to flooding in coastal areas and
reduction in agriculture production. As a result, it said, there has been a drop in per capita income of people impacted by
rising extreme weather events. Almost half of the credit of scheduled commercial banks is significantly dependent on nature
and its ecosystem so any natural calamity impacts their bottomline. By 2030, as per estimates, 42 per cent India's districts are
projected to experience temperature rise by up to 2 degree Celsius. So, 321 districts may be affected by temperature rise in the
next five years. However, climate change also provides an opportunity to banks to the tune of USD 150 billion annually to fund
energy transition needs of the country as public funding is hugely inadequate to achieve the goal of net-zero by 2070. "India
is committing to sway away from coal and oil in favour of renewable energy. For India to make that difference/transition, an
investment of USD 150-200 billion is required annually. On the contrary, the climate finance in India is somewhere between
USD 40-60 billion creating a gap of USD 100-150 billion," BCG MD & Partner; APAC and India Leader, Risk Practice Abhinav
Bansal said.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 24-02-2025

Banks continue to rely on certificates of deposits amid liquidity woes

Banks continue to rely on raising funds through certificates of

deposit (CDs) amid tight liquidity conditions. Consequently,
the outstanding amount on CDs reached an all-time high of Rs
5.19 trillion as of the fortnight ending February 7, according to
data from the Reserve Bank of India (RBI). Meanwhile, with
expectations of another rate cut by the RBI’s Monetary Policy
Committee in the next meeting and a further decline in long-
term borrowing costs, the volume of commercial papers (CPs)
outstanding reached Rs 4.79 trillion as of the fortnight ending
February 15, its highest level since October 2019.“The deposit
accretion has been a challenge in the industry, plus credit demand in this quarter remains elevated, leading to a rise in the
outstanding amount. This increasing trajectory has been there for a while now,” said Anshul Chandak, head of treasury at RBL
Bank. “This is the time when it peaks,” he added, indicating a year-end rush by banks to meet business targets.The banking
system has been in a net liquidity deficit for the past 10 consecutive weeks. According to the latest RBI data, the liquidity
deficit stood at Rs 2.37 trillion as of Sunday.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 25-02-2025
SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

36
 Credit card spending rises by 10.8% to Rs 1.84 trn in Jan 2025: RBI data

Credit card spends grew by 10.8 per cent year-on-year (Y-o-Y) to ₹1.84 trillion in January 2025, even as there was a marginal
drop sequentially, latest data released by the Reserve Bank of India’s (RBI’s) showed. Credit card spend of the leading card
issuer HDFC Bank rose by 15.91 per cent Y-o-Y to ₹ 50,664 crore. Those of SBI's clocked a 6 per cent drop to ₹28,976 crore,
ICICI Bank’s spends rose by 20.25 per cent Y-o-Y to ₹35,682 crore. On the other hand, Axis Bank’s spending slipped by 0.45
per cent to ₹20,212 crore.Per card spend in the industry stood at ₹16,910, 1.09 per cent up from the same period last year.
HDFC Bank’s per card spending slipped by 0.61 per cent Y-o-Y to ₹21,609.93, SBI cards clocked 14.23 per cent Y-o-Y drop to
₹14,147 and Axis Bank clocked 7.38 per cent drop to ₹13,673.41.Among large card issuers, only ICICI Bank clocked 11.69 per
cent growth on per card spend to ₹19,730.81 compared to last year.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 25-02-2025

Microfinance loan book shrinks 3.5% to Rs 3.85 trillion in Dec quarter

The gross loan portfolio in the micro finance segment shrunk by 3.5 per cent
year-on-year (Y-o-Y) to ₹3.85 trillion during the third quarter of financial
year 2025 (Q3FY25) as the period was marked by curtailed funding and strict
credit underwriting.The portfolio at risk, which is the share of loans overdue
for 30-180 days, shot up to 6.4 per cent during Q3FY25 from 2 per cent in
Q3FY24, according Micro Finance Institution Network (MFIN) data.“The
industry is going through a period of curtailed funding and stricter credit
underwriting based on MFIN guardrails. The credit quality continued to be
under close watch with slippages expected to have peaked by December 31.
MFIN expects that the situation on both liquidity and credit quality will
improve in Q4,” said Alok Misra, Chief Executive & Director at MFIN.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 25-02-2025

Bank of Maharashtra slashes rate by 25bps

Bank of Maharashtra has cut interest rate by 25 basis points on retail loans, including home and car loans, in line with
reduction in repo rate by RBI. The benchmark rate for home loan has been reduced to 8.10%, one of the lowest in the banking
industry, the bank said.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 25-02-2025

India seeks advisers for minority stake sales in state-run banks, financial firms

India has invited bids to appoint merchant bankers and legal advisers to sell the
government's minority shareholding in select public sector banks and financial
companies. The government is looking to undertake minority stake sales in state-run
banks and financial firms through an offer for sale, according to a document
published on Monday on the Department of Investment and Public Asset
Management's website, which did not name the lenders. The federal finance ministry
is looking dilute minority shareholdings in Central Bank of India, Indian Overseas
Bank, UCO Bank, and Punjab and Sind Bank, Reuters reported in November. The
plan to lower the government's stake in banks and financial companies is required to
comply with public shareholding norms mandated by the markets regulator. The
Securities and Exchange Board of India requires companies to maintain a 25% public
shareholding, but has exempted government-owned firms from meeting these norms
till August 2026. The Indian government owns more than 93% in Central Bank of
India, 96.4% in Indian Overseas Bank, 95.4% in UCO Bank and 98.3% in Punjab and
Sind Bank. It also owns an 80% stake in Bank of Maharashtra. In the past, public
sector banks launched qualified institutional placements (QIP) to raise capital, which,
in turn, reduced the government's stake in state-run banks.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 25-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

37
 Stress in credit card segment to peak in coming 1 or 2 quarters: Phillip Capital Report

The overall credit costs in the credit card segment are expected to peak in the next one to two quarters, according to a report
by Phillip Capital. The report highlighted that the sector has been facing stress for the last three to four quarters due to a rise
in delinquencies and credit costs. It said, "The performance of new cohorts is satisfactory and we expect overall credit costs to
peak out in 1-2 quarters" The report added that most players in the industry have seen a sharp increase in credit costs, except
for top private banks. Some lenders recorded credit costs as high as 10 per cent during the quarter, which is significantly
higher than their usual range of 5-6 per cent. This indicates the financial strain faced by several institutions due to higher
defaults. It also mentioned that the industry experts pointed out that banks had already started taking corrective measures a
few quarters ago. These steps were taken after the regulator increased risk weights on unsecured businesses, including credit
cards. The move was aimed at controlling the risks associated with unsecured lending and improving financial stability. The
report said, "banks took corrective action few quarters ago, when the regulator increased the risk weights on unsecured
businesses."
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 25-02-2025

Life insurers face valuation risks as IRDAI weighs bancassurance limits

Life insurance companies may see further downside as concerns grow over impending regulatory changes in the
bancassurance channel. Private life insurers have already witnessed stock price corrections over the past three months due to
uncertainties surrounding potential Insurance Regulatory and Development Authority of India (IRDAI) regulations. The
bancassurance channel significantly contributes to annualised premium equivalent (APE), with some insurers, such as SBI
Life (SBILIFE), deriving as much as 72% of APE from this source. Given the high reliance on parent banks for distribution,
barring ICICI Prudential Life (IPRU), any regulatory restrictions could lead to further valuation derating. The extent and
timeline of any regulatory changes remain uncertain, but the overhang is expected to persist until clarity emerges. Elara
Capital conducted a sensitivity analysis to assess the impact of potential regulatory caps on bancassurance contribution to
APE.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 25-02-2025

'RBI's loan prepay fee ban to hit NBFCs more than banks'

PNB Housing Finance and Aditya Birla Capital are expected to be among the worst hit by RBI's proposal to remove foreclosure
charges on loans to small businesses. Among banks, Axis, IndusInd & Kotak Mahindra may see a higher impact as fees account
for a higher part of their total income compared to peers. Last week, RBI announced plans to waive prepayment charges on
floating rate loans up to Rs 7.5 crore per borrower. The new norms will apply regardless of the source of funds used for
foreclosure or prepayment, whether partial or full. According to an IIFL report, the proposed move aligns with existing rules
for home loans and is expected to reduce profitability for retail loan against property (LAP), SME, and business loans due to
increased competition. These segments account for 5-25% of the assets under management for non-banking financial
companies and housing finance companies.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 25-02-2025

NBFCs drive financial inclusion with Maharashtra, Gujarat leading contractual workforce: TeamLease
Report

The non-banking financial company (NBFC) sector continues to play a crucial role in financial inclusion, particularly in
underserved markets such as MSMEs and rural areas, according to a report by TeamLease Services. The report, Driving
Financial Inclusion: The Role of Temporary Workforce in NBFCs, highlights the growing reliance on temporary workers,
regional workforce distribution, gender diversity, and compensation trends in the sector. NBFCs recorded a 21% year-on-year
growth in net advances in FY24, with their balance sheet expanding to Rs 21.8 lakh crore. Digital adoption is reshaping
workforce dynamics, with temporary employees taking on key roles such as collection officers, sales officers, and relationship
managers. Maharashtra and Gujarat lead in contractual workforce distribution, contributing 19.9% and 11.6%, respectively.
The top ten states account for nearly 75% of the sector’s temporary workforce, highlighting a concentration that calls for a
more balanced geographical spread. In terms of compensation, Delhi and Karnataka offer the highest average salaries for
temporary roles, at Rs 23,756 and Rs 23,607, respectively. Positions such as telesales agents, rural credit officers, and
administrative staff see the highest pay in these regions.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 25-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

38
 Axis Bank is said to weigh majority stake sale of $1 bn shadow bank unit

Axis Bank Ltd. is considering options for Axis Finance Ltd., including the possible sale of a majority stake in the shadow-
bank unit, according to people familiar with the development. The private sector lender is working with an adviser on a
strategic review for Axis Finance, the people said, asking not to be identified discussing private information. The bank
may seek a valuation of $900 million to $1 billion in a potential transaction, the people said. Deliberations are ongoing
and Axis Bank could decide not to proceed with a sale, the people said. A representative for Axis Bank didn’t reply to a
request seeking comment.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 25-02-2025

HDFC Bank tops credit card market, SBI leads in debit cards as of Jan ‘25

India’s largest public sector bank, State Bank of India, continue to maintain its leadership in the debit card market,
holding an impressive 24 per cent market share in January 2025, while HDFC Bank remained the top player in credit
cards with a 22 per cent share an increase from previous share of 21 per cent, according to recent data from 1Lattice. In
January 2024, HDFC Bank held 20 per cent of market share of credit cards. Other top banks in debit cards included
Bank of Baroda with a 9 per cent market share, followed by Canara Bank, Union Bank, and HDFC Bank, each with about
6 per cent, and Bank of India and Punjab National Bank at 4 per cent. Public Sector lender, Bank of Baroda’s market
share of debit cards remained at 9 per cent in January 2025; it showed a de-growth of 6 per cent
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 25-02-2025

Reducing fiscal deficit to around 3% of GDP difficult: Govt to IMF

A fiscal deficit of around 3 per cent of the gross domestic product (GDP) for the central government, as advocated by
the International Monetary Fund (IMF), is difficult since a significant amount of capital expenditure previously
undertaken by state-owned enterprises (SOEs) has been brought onto the central government budget. In its latest
Article IV consultation report on India, the IMF said a combined fiscal deficit (Centre + states) of less than 6 per cent
of GDP, as advocated by IMF staff for the medium term—coupled with the need to increase infrastructure spending by
the Union and the states—“would imply eliminating the revenue deficit, which the authorities felt was not feasible in
the near term and could compromise growth.”“The authorities agreed on the need for greater revenue mobilisation,
noting that their focus will remain on supporting voluntary compliance for taxpayers through simplification of the tax
law (for example, review of the Income Tax Act) and continued efforts to improve the tax administration through
digitalisation,” the IMF said in its report.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 27-02-2025

SIP closures more pronounced in direct space amid equity market fall

Active systematic investment plan (SIP) accounts

in direct plan mutual fund (MF) schemes declined
by nearly one million in January, amid the equity
market correction and re-evaluation of investor
accounts by the industry. This decline also reflects
a shift in investor behaviour amid a change in
market sentiment.Direct plan offerings of MFs
cater to investors who invest directly, mostly
through online investment platforms.Meanwhile,
regular plans are distributed by intermediaries like
banks and agents and include commissions for
their services.As of January-end, there were 39.2
million active SIP accounts on the direct side, down
0.9 million from the December 2024 tally of 40.1
million, shows industry data.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 27-02-2025
SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

39
 Major issuers raise nearly Rs 17,000 crore through bonds on Thursday

Major state-owned and non-state-owned companies tapped the domestic debt capital market on Thursday, raising
around Rs 17,000 crore through bond issuances. Power Finance Corporation (PFC) raised Rs 3,340 crore at a coupon
rate of 7.44 per cent via bonds maturing in five years and Rs 3,075 crore at 7.40 per cent through bonds maturing in 10
years.Additionally, the Small Industries Development Bank of India (Sidbi) raised Rs 4,593 crore at 7.49 per cent
through bonds maturing in four years and three months, though Sidbi had initially aimed to raise Rs 5,000 crore.The
National Bank for Agriculture and Rural Development (Nabard) raised Rs 4,060 crore at 7.37 per cent through bonds
maturing in 10 years and three months, with an original target of Rs 7,000 crore.Furthermore, the National Investment
and Infrastructure Fund (NIIF) raised Rs 1,000 crore at an annual yield of 7.99 per cent, while consumer financier Bajaj
Finance raised Rs 781.4 crore at 7.77 per cent through bonds maturing in five years.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 27-02-2025

US economy expanded at 2.3% from Oct to Dec on robust consumer spending

The American economy grew at a solid 2.3 per cent annual rate the last three months of 2024, supported by a burst of
year-end consumer spending, the government said, leaving unchanged its initial estimate of fourth-quarter growth. The
outlook for 2025 is cloudier as President Donald Trump pursues trade wars, cutbacks in the federal workforce and mass
deportations.The Commerce Department reported Thursday that growth in gross domestic product the nation's output
of goods and services decelerated from a 3.1 per cent pace in July-September 2024.For all of last year, the economy
grew 2.8 per cent, compared with 2.9 per cent in 2023.Consumer spending advanced at a 4.2 per cent pace from October
through December.The report shows that Trump inherited a healthy economy when he took office last month. Growth
has now topped a decent 2 per cent for nine of the last 10 quarters. Unemployment is low at 4 per cent, and inflation
has come down from the highs it hit in mid-2022.After lowering its benchmark interest rate three times in the last four
months of 2024, the Federal Reserve left it unchanged in January and appears to be in no hurry to start cutting
again.Progress against inflation has stalled in recent months. At 3 per cent in January, the year-over-year increase in
consumer prices is down sharply 9.1 per cent in June 2022 but remains stuck above the Fed's 2 per cent target.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 27-02-2025

India's GDP growth picks up to 6.2% in Q3; FY25 projection now 6.5%

India’s economic growth accelerated to 6.2 per cent in the December quarter of FY25, up from a revised 5.6 per cent in
the previous quarter, reversing two consecutive quarters of slowdown. However, significant revisions to past data have
left economists perplexed. Data released by the Ministry of Statistics and Programme Implementation (Mospi) on
Friday showed the economy is expected to grow at 6.5 per cent in FY25, marginally higher than the 6.4 per cent projected
in January. The average GDP growth for the first three quarters of FY25 stands at 6.1 per cent, implying that fourth-
quarter growth is assumed at 7.6 per cent, a target economists say is challenging but achievable.Alongside the FY25
growth projection, Mospi revised growth estimates for FY23 to 7.6 per cent from 7 per cent and for FY24 to 9.2 per cent
from 8.2 per cent.Nominal GDP for FY25 is projected at ~331 trillion, assuming a growth rate of 9.9 per cent, slightly
higher than the 9.7 per cent estimated in January’s first advance projections. This is expected to ease the government’s
path to achieving the revised fiscal deficit target of 4.8 per cent of GDP for FY25.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 28-02-2025

India and Japan renew $75 billion bilateral currency swap agreement

India and Japan have renewed the $75 billion bilateral currencies swap agreement, the Reserve Bank said in a statement
on Friday. The Bilateral Swap Arrangement (BSA) is a two-way arrangement where both authorities can swap their local
currencies in exchange for the US dollar.The Bank of Japan, acting as agent for the Minister of Finance of Japan, and
the Reserve Bank of India signed the Second Amendment and Restatement Agreement of the BSA, the central bank
said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 28-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

40
 India needs 7.8% growth for 22 yrs to be high-income by 2047: World Bank

In order to reach high-income status by 2047,

India needs to grow at an average of 7.8 per
cent over the next 22 years as under a
“business as usual’ scenario, it will experience
tangible welfare gains but still fall short of its
ambitions, the World Bank said in a report on
Friday. The report, titled “Becoming a high-
income economy in a generation”, notes that
the target is possible if India undertakes
“accelerated reforms”.“In the past three
financial years, India has accelerated its average growth rate to 7.2 per cent. In order to maintain this acceleration and
attain an average growth rate of 7.8 per cent over the next two decades, the Country Economic Memorandum
recommends four critical areas for policy action,” the global lender said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 28-02-2025

Gold loan offtake stays strong amid retail loan moderation in January

The gold loan portfolio of banks continued to show strong off-take with
76 per cent year-on-year (Y-o-Y) growth in January 2025 amid
moderation in retail credit — especially in the unsecured credit segment
— following increase in risk weights in November 2023. The gold loan
pool had grown 17.4 per cent Y-o-Y in January 2024.Reserve Bank of
India (RBI) data showed that “loans against gold jewellery” under the
retail segment stood at ₹1.78 trillion in the fortnight ended January 24,
2024. Since September 2024, the gold loan portfolio has shown over 50
per cent Y-o-Y growth each month.The pace of retail loan expansion
moderated to 14.2 per cent in January 2025 from 18.2 per cent in
January 2024. This is largely due to decline in growth rate in other
personal loans, vehicle loans and credit card outstanding segments, RBI
said in a statement. The other personal loans — comprising unsecured
credit — declined to 9.2 per cent from 20.8 per cent.Bankers said some
borrowers have turned to gold loans after lenders tightened norms for
unsecured credit. This is after a hike in risk weights in November 2023
and rise in stress in small-ticket loans.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 28-02-2025

16% of card spends happen on RuPay, half of it on credit via UPI: NPCI

About 16 per cent of all credit card spends happen on the RuPay card
network and nearly half of these are credit on Unified Payments
Interface (UPI), a senior official from the National Payments
Corporation of India (NPCI) said on Friday. "Almost 16 per cent of
total credit card spends are happening on RuPay now and 50 per cent
of that is happening on UPI. Over 30 banks are issuing RuPay cards,"
NPCI chief Dilip Asbe said. He was speaking at the sidelines of
Mumbai Tech Week 2025.RuPay is India’s indigenous payment
network run on the NPCI rails.According to latest data published by
the Ministry of Finance, over 750 million transactions amounting to
₹63,825.8 crore concerned with RuPay credit on UPI were processed
till October during the financial year 2024-2025 (FY25).This number was 362.8 million transactions valued at
₹33,439.2 crore in FY24.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 28-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

41
 India's core sectors' output grew 4.6% in January, shows govt data

Output in India’s eight core infrastructure sectors, which constitute about 40% of overall industrial production, grew
4.6% in January, mildly slower than the upgraded 4.8% growth recorded in December but still the second highest uptick
in six months. On a sequential basis, however, the Index of Core Industries (ICI) was up 2.4% from December 2024
with a reading of 173, which marks a 10-month high and indicates the highest output level recorded so far in 2024-25.
The core sectors had grown 4.2% in January 2024.January’s growth was largely driven by a 14.5% surge in cement
production and an 8.3% uptick in refinery products, reflecting the sharpest growth for both these sectors in at least 13
months. Coal output grew 4.6%, the slowest uptick in four months, while the other core sectors lagged the headline
growth.Fertilisers production was up 3%, a five-month high. However, crude oil production slipped back into
contraction, with a 1.1% decline in January, the eighth dip in nine months. Natural gas output also slipped 1.5%, the
seventh straight month of contraction. Steel and electricity generation grew 3.7% and 1.3%, respectively, reflecting the
slowest growth in four months for both segments.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 28-02-2025

Citigroup mistakenly credits customer account $81 trn in 'near miss'

Citigroup erroneously credited $81 trillion, instead of $280, to a customer's

account and took hours to reverse the transaction, a "near miss" that shows up the
bank's operational issues it has sought to fix, the Financial Times reported on
Friday. The error, which occurred last April, was missed by a payments employee
and a second official assigned to check the transaction before it was cleared to be
processed the next day, FT said, citing an internal account and two people familiar
with the event. A third employee caught the error one-and-a-half hours after the
payment was processed and the transaction was ultimately reversed several hours
later, FT said.
Click here to read full article ...
[Source website : business-standard.com]
Published on : 28-02-2025

Bank of Baroda enables small shops to offer loyalty programmes using eRupee

Bank of Baroda has launched a pilot for a merchant-focused loyalty and cashback programme using programmable
central bank digital currency (CBDC). Developed under RBI’s guidance, the initiative allows small and medium
merchants to design and run independent loyalty programmes, a feature usually available only to large brands.
Merchants banking with Bank of Baroda and registered on its app can configure cashback offers without additional
infrastructure investments. Local retailers, grocery stores, and pharmacies can customize campaigns by setting the
duration, cashback percentage, and expiry date. Customers, currently limited to Bank of Baroda account holders,
making purchases via the bank’s digital rupee app will receive cashback in the form of programmable CBDC. The
cashback can be redeemed at the same merchant outlet until expiry.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 28-02-2025

Indian stock market slips for fifth consecutive series for first time in 29 years, end flat

Indian stock markets on Thursday ended near the flatline, slipping for the fifth consecutive series for the first time in
29 years. At the close of the trading session today, the Nifty 50 at the National Stock Exchange (NSE) was down 2.50
points, or 0.01 percent, at 22,545.05. The BSE Sensex was up 10.31 points, or 0.01 percent, at 74,612.43. During the
trading, approximately 97 shares were constant, 2925 shares fell, and 892 shares increased. At NSE, stocks of Shriram
Finance, Bajaj Finance, Bajaj Finserv, Sun Pharma, and Hindalco Industries emerged as the major gainers, while
UltraTech Cement, Trent, Jio Financial, Bajaj Auto and Tata Motors were the losers. In the sectoral indices, banks and
metals ended in green while all the other indices were in the red zone. On BSE, the Midcap index shed 1 per cent, and
the small-cap index fell 2 per cent.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 28-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

42
 Health insurance premiums cross Rs 1 lakh crore in 10 months, growth slows to 10%

Health insurance premiums in India surpassed Rs 1 lakh crore in the first 10 months of the current financial year,
reflecting a 10% increase from Rs 90,785 crore collected during the same period last year. However, this growth is slower
compared to the 20% rise recorded in the previous fiscal year. By January 2025, total health insurance premiums stood
at Rs 1.07 lakh crore, as per data from non-life insurers. According to a TOI report, the individual health insurance
segment recorded the highest growth, expanding by 13.5% to Rs 37,068 crore, contributing 38% of total premiums.
Group health insurance, which is primarily purchased by companies for employees, remained the largest category with
a 53% share. Premiums in this segment increased by 12.4% to Rs 47,312 crore. Government-backed schemes, including
Ayushman Bharat Yojana, saw a decline in premiums by 9.7% to Rs 8,828 crore. Under these schemes, state
governments either purchase insurance or set up trusts to manage claims. In the previous fiscal year, all three
segments—government schemes, group insurance, and individual policies—had recorded double-digit growth. This
year, overall premium growth has slowed to 10.4%, with some policyholders facing rate hikes exceeding 10% following
insurer revisions.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 28-02-2025

Banks' infra bond issuances set to cross Rs 1 lakh crore this fiscal

With strong demand and regulatory advantages, total infrastructure bond issuances are expected to surpass Rs 1 lakh
crore by the end of this fiscal and could exceed Rs 1.50 lakh crore in FY26. Banks have significant headroom to expand
infrastructure bond issuances, with only Rs 2.5-3 lakh crore raised so far against a total infrastructure credit portfolio
of around Rs 13 lakh crore. The growing reliance on these bonds comes as deposit growth lags credit expansion, and the
cost of funding via this route remains competitive. In the first 11 months of FY24, banks mobilised Rs 89,588 crore
through infrastructure bonds, marking a 75% increase from Rs 51,081 crore in the same period last year. Public sector
banks dominated issuances, accounting for 90% of the total, up from 51% a year ago.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 28-02-2025

India ranks 3rd in digitalisation but falls to 28th in per capita adoption

India’s sweeping scale, as one of the largest telecom and internet markets in the world, has made India the third largest
digitalised country in the world – second only to the US and China. But in a paradoxical situation, the level of
digitalisation seen at the level of an average Indian, has ranked the country at 28th out of 32. The ICRIER-Prosus Centre
for Internet and Digital Economy (IPCIDE) on Friday unveiled the third edition of the 'State of India’s Digital Economy
2025 report. IPCIDE has developed the Connect-Harness-Innovate-Protect-Sustain (CHIPS) framework, for ranking
32 countries. The index combines scores for 32 countries on parameters such as connectivity, apps, fin tech, AI,
cybersecurity, sustainability to arrive at the rankings.
As per the report, the overall ranking for India is 8th out of 32. As per the overall ranking, the US leads, with China a
close 2nd. Singapore comes in at third, while the UK comes in 4th. Meanwhile, India beats developed countries like
Japan and Australia and emerging economies like Mexico and Brazil.
Click here to read full article ...
[Source website : cnbctv18.com]
Published on : 28-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

43
 Banking Technology
and Cyber Security

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

44
 The DeepSeek AI revolution has a security problem

Last week, DeepSeek sent Silicon Valley into a panic by proving you could build powerful AI on a shoestring budget. In some
respects, it was too good to be true. Recent testing has shown that DeepSeek’s AI models are more vulnerable to manipulation
than those of its more expensive competitors from Silicon Valley. That challenges the entire David-vs-Goliath narrative on
“democratized” AI that has emerged from the company’s breakthrough. The billions of dollars that OpenAI, Alphabet Inc.’s
Google, Microsoft Corp. and others have spent on the infrastructure of their own models look less like corporate bloat, and
more like a cost of pioneering the AI race and keeping the lead with more secure services. Businesses eager to try the cheap
and cheerful AI tool need to think twice about diving in. LatticeFlow AI, a Swiss software firm that measures how compliant
AI models are with regulations, says that two versions of DeepSeek’s R1 model rank lowest among other leading systems when
it comes to cybersecurity. It seems that when the Chinese company modified existing open-source models from Meta
Platforms Inc. and Alibaba, known as Llama and Qwen, to make them more efficient, it may have broken some of those models’
key safety features in the process.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 06-02-2025

RBI Governor calls upon banks and NBFCs to mitigate cyber risks

The Reserve Bank of India (RBI) Governor, Sanjay Malhotra, Friday stressed the importance of enhancing cyber security in
the financial sector. He urged banks and nonbank financial companies (NBFCs) to continually upgrade their preventive and
detective controls to mitigate cyber risks. In his announcement during the RBI's bi-monthly monetary policy, Malhotra called
for the implementation of second factor authentication (2FA) for all international online transactions, underscoring its role
in bolstering digital security. "Banks and NBFCs must continuously improve preventive and detective controls to mitigate
cyber risks," Malhotra said, announcing his maiden bi-monthly monetary policy. "They must develop robust incident response
and recovery mechanisms, reinforced through periodic testing, for operational resilience." The RBI has been actively working
to improve digital security in banking and payments, and Malhotra proposed extending additional authentication measures
for international digital payments to offshore merchants that are capable of supporting such protocols. A draft circular for
feedback from stakeholders is expected to be issued soon. Malhotra noted that while the rapid digitalization of financial
services has increased convenience, it has also heightened exposure to cyber risks. The rise in digital frauds, he mentioned,
requires collective action from all stakeholders in the sector.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 08-02-2025

What are the new bank cybersecurity measures announced by RBI Governor Sanjay Malhotra?

RBI Governor Sanjay Malhotra has announced a series of measures aimed at strengthening security in the banking and
payments ecosystem. From introducing stricter authentication for international online transactions to launching exclusive
internet domains for banks and financial institutions, these steps are designed to curb cyber fraud and enhance trust in digital
payments. Here’s a detailed explainer on what these changes mean for consumers, businesses, and the broader financial
sector.
What are the key measures announced by RBI Governor Sanjay Malhotra to enhance cybersecurity? The
Reserve Bank of India has introduced several initiatives to strengthen cybersecurity in the banking and digital payments
ecosystem. These include extending Additional Factor of Authentication (AFA) to international online payments, launching
exclusive internet domains for banking and financial institutions, and urging banks and NBFCs to enhance their cyber risk
management systems.
What is Additional Factor of Authentication (AFA) and how will it impact international transactions? AFA is
an extra layer of security that requires users to verify their identity before completing a transaction. This could be through a
One-Time Password (OTP) or biometric authentication. While AFA is already mandatory for domestic digital transactions,
the RBI has now decided to extend it to international online payments made to offshore merchants. This move will ensure
that cross-border transactions using Indianissued cards follow the same security protocols as domestic transactions, reducing
the risk of fraud.
Why is RBI introducing ‘bank.in’ and ‘fin.in’ domains for financial institutions? To combat online fraud and
phishing attempts, the RBI will introduce ‘bank.in’ as an exclusive internet domain for Indian banks, starting in April 2025.
This will help customers easily distinguish legitimate banking websites from fraudulent ones. A similar domain, ‘fin.in,’ will
be launched for non-bank financial institutions, further strengthening the credibility and security of online financial
platforms.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 08-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

45
 Scam alert: Hackers are using QR codes to steal your data

Authorities are warning the public about a dangerous new scam that allows hackers to access victims' smartphones
within seconds. A police officer has taken to social media to shed light on the alarming scheme, urging people to remain
cautious.
How the Scam Works The scam operates by sending unsuspecting victims a package containing a "free gift." The
package may appear to be from a familiar retailer and includes the recipient’s full name and address, making it seem
legitimate. However, the real danger lies inside the package—a QR code that, once scanned, grants cybercriminals access
to sensitive data stored on the victim’s phone. Bo Braxton Da Savage, a police officer who goes by @fitbocop1914 on
social media, recently shared a warning about the scam, admitting that even he might have fallen for it if he hadn’t been
informed. In a video posted on Instagram, he explained, “So what’s going to happen is, you get the package, you’re going
to look at it and think, ‘Aw okay, someone sent you a gift.’ There’s going to be a QR code on the package or in the
package.” He continued, “[...] And you’re going to scan the QR code and once you scan the QR code every bit of
information in your phone is going to get sent to the scammer - it’s going to send your credit card information, your
bank information, your pictures, your phone numbers, your contacts. Everything that’s in your phone, after you scan
that QR code, is going to get sent to the scammer.”
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 10-02-2025

1 in every 3 Indians faced web threat in 2024

Almost 1 in every 3 (28.8%) of Internet users in India were targeted by web-borne threats in 2024. Between January
and December last year, 44,372,823 Internet-borne cyberthreats were detected on the computers of users in India. This
information is based on data obtained and processed by a cybersecurity network. This network is a complex distributed
infrastructure dedicated to processing cybersecurity-related data streams from millions of voluntary participants
around the world. The data is collected from users who have installed cybersecurity software on their computers and
voluntarily shared information. It uses a combination of expert analysis, Big Data, and Machine Learning to deliver
comprehensive information on the cyberthreat landscape in a region. The cyberthreat landscape in India has shown a
gradual improvement in 2024 compared to 2023. There has been a 5% drop in the number of web-borne threat incidents
in 2024 compared to 2023. In 2023, 33.6% of users were attacked by web-borne threats between January and
December, with 62,574,546 different Internet-borne cyberthreats detected in the same period. While the number of
cyberthreats detected might have decreased, the threat landscape continues to evolve. Reports also show that attacks
via browsers remain the main way of spreading malicious programs. File-less malware continues to be the most
dangerous type of cyberthreat, as its malicious code is difficult to detect and counteract. Social engineering attacks like
phishing, ransomware, and AI-driven threats were also prominent in 2024.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 15-02-2025

AI-generated content raises risks of more bank runs: UK study

Fake news generated by artificial intelligence and spread on social media is heightening the risks of bank runs, according
to a new British study that says lenders must improve monitoring to detect when disinformation risks impacting
customer behaviour. Generative AI can be used to create fake news stories saying that customer money is not safe, or
memes appearing to joke about security issues, which can be spread on social media using paid adverts, said the study,
published by UK research company Say No to Disinfo and communications firm Fenimore Harper. Banks and regulators
are increasingly concerned about the risks of bank runs fuelled by social media, following the collapse of Silicon Valley
Bank in 2023, in which depositors withdrew $42 billion in 24 hours. Advances in AI have supercharged these risks. The
G20's Financial Stability Board warned in November that generative AI "could enable malicious actors to generate and
spread disinformation that causes acute crises", including flash crashes and bank runs. Say No to Disinfo showed sample
AI-generated content to UK bank customers and found that a third were "extremely likely" to move their money after
seeing it, with a further 27% "somewhat likely". "As AI is making disinformation campaigns easier, cheaper, quicker and
more effective than ever before, the emerging risk to the financial sector is rapidly growing but often overlooked," the
report said, noting that online and mobile banking meant people can move money in seconds.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 15-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

46
 Sebi proposes tech-based measures to prevent misuse

The Securities and Exchange Board of India (Sebi) has proposed technology based measures to create secure
trading environment and to prevent unauthorized transactions in trading and demat accounts of investors. Sebi
has proposed to strengthen the authentication by way of SIM binding mechanism i.e. One UCCOne Device- One
SIM similar to that of UPI payment applications where the UPI application recognise SIM along with mobile
device and bank account details for carrying out UPI transactions. Similarly, the log-in into the trading account
can take place only when the trading application recognise the UCC (unique client code) along with SIM and
mobile device, Sebi said in a discussion paper on Tuesday The regulator has also suggested biometric
authentication, log-in from multiple devices and facility of temporary lock-in of trading account. A call and trade
facility either to stockbroker or to an authorised person would be allowed only through centralised dedicated
phone numbers or email address or mobile numbers of the stockbroker, it said.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 19-02-2025

Raymond reports cyber security incident, IT assets affected

Real estate firm Raymond Ltd on Wednesday reported a cyber security incident at the company that impacted
some of its IT assets. In a regulatory filing, Raymond Ltd informed that "a cyber security incident has occurred at
the company and it has impacted some of the IT assets which have been isolated." The incident has not impacted
our core systems and operations, it added. "None of our customer operations and store operations have been
affected and the same are up and running normally," the company said. Raymond assured that the technical team
of the company along with a specialised team of cybersecurity experts and the management responded promptly
and initiated necessary precautions and protocols to mitigate the impact of this incident. "The company is
investigating the matter and appropriate containment and remediation actions are being taken in a controlled
manner to address the incident," the filing said.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 20-02-2025

Kaspersky reports nearly 900 million phishing attempts in 2024 as cyber threats increase

• In 2024, Kaspersky blocked 26% more phishing attempts worldwide compared to the previous year.
Cybercriminals continued to capitalize on well-known brands like Booking, Airbnb, TikTok and Telegram
to steal credentials or install malware.
• Additionally, users encountered more than 125 million attacks involving malicious email attachments.
• Every second email in the corporate mailboxes was spam.
Kaspersky’s security solutions blocked over 893 million phishing attempts in 2024 – a 26% increase from 2023,
when the total stood at nearly 710 million. The surge in attempts (shown in the graph below) between May-July is
traditionally tied to the holiday season when fraudsters frequently try to lure travelers with scams involving fake
airline and hotel bookings, deceptive tour packages and too-good-to-be-true offers. Attempts to click phishing
links, Kaspersky security solutions, 2024 Experts observed a range of phishing and scam schemes aimed at
stealing data, money and installing malicious software. In 2024, cybercriminals often mimicked the websites of
well-known brands like Booking, Airbnb, TikTok, Telegram, and others. One ongoing campaign, for example, has
been targeting TikTok Shop users. Cybercriminals created fake login pages designed to steal sellers’ credentials.
Additionally, scammers capitalized on trending news, orchestrating fraud schemes involving the hype topics, for
example cryptocurrency game Hamster Kombat and TON wallets.
Click here to read full article ...
[Source website : ciso.economictimes.indiatimes.com]
Published on : 21-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

47
 Spam calls, texts result in heavy loss through cyber crime

Around 60% of mobile users in India receive at least three spam calls every day while roughly 90% receive spam text
messages from different sources. In fact, spam calls and messages contribute to a major share of financial loss in
cybercrimes, said Prashant Patil, special director general (Telecom), of Andhra Pradesh and Telangana. In 2024 alone,
9.7 billion suspected spam calls were flagged globally, averaging 105 unwanted calls per person daily. This growing
menace presents significant challenges for both individuals and regulatory bodies, said Patil, speaking at the ‘SHIELD-
2025'. Spam content originates in the form of phone calls, messages, and even emails, where criminals attempt to trap
and steal one's personal or financial information and exploit it. They are using spoofing techniques (concealing identity)
to make the attacks more effective.

Click here to read full article ...

[Source website : timesofindia.indiatimes.com]

Published on : 22-03-2025

Call merging scam: What is the new fraud that NPCI has warned about

National Payments Corporation of India (NPCI) has issued a warning online, alerting users about a new rising scam.
Named the call merging scam, fraudsters are exploiting a phone’s call merge feature to steal one-time passwords (OTPs)
and commit financial fraud. In a post on microblogging site X (formerly Twitter), NPCI wrote “Scammers are using call
merging to trick you into revealing OTPs. Don’t fall for it! Stay alert and protect your money. Share this post to
spread awareness!”
How the call merging scam works : Scammers call unsuspecting victims about an event or an opportunity, claiming they
got their number from a friend, the post explains. They then request to merge the call with this "friend," who is actually
another fraudster. Once merged, the victim unknowingly connects to an OTP verification call from their bank. The
scammer manipulates the user into revealing the OTP, enabling unauthorized transactions. “The moment OTP is
shared, scammers complete the transaction, and your money is gone!”.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 22-02-2025

2,000 Indians working in Myanmar cybercrime camps, some willingly

Nearly 2,000 Indians are currently involved in cyber scam

operations in Myawaddy, a lawless region near the Myanmar-
Thailand border controlled by armed militia groups. These
individuals, many of whom were lured by fake job offers, are
being forced to carry out online fraud targeting victims across
India and the US. While some victims have been rescued, the
embassy warns that the true scale of the scam is far larger,
with many still unaware of the dangers they face. While
consular officials are working to evacuate Indian citizens, the
embassy has warned that those willingly participating in these
scams are not victims but criminals. Indian authorities have
urged job-seekers to verify employment offers in Myanmar,
Cambodia, Laos, and Thailand before travelling, as those
involved in scams may face legal consequences. Myawaddy
has become a notorious hub for cyber crime, where workers
are coerced into participating in online fraud operations, often under duress. Many of the victims, who have fallen prey
to false job promises, are trapped in scam centres with no means of escape, unless they pay large ransoms. With the
region controlled by warlords and militia groups, efforts to intervene have been complicated, though Indian consular
officials are working to evacuate those who have sought help.

Click here to read full article ...

[Source website : timesofindia.indiatimes.com]

Published on : 22-03-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

48
 Fortifying cyber defenses: Harnessing mobile number credibility for a safer digital world

In the face of escalating cyber threats affecting national security and economic stability, this paper presents the
Mobile Number Credibility Quotient (MNCQ)—an innovative solution for strengthening mobile number
authentication and enhancing global cybersecurity. The MNCQ uses a dynamic metric system to evaluate mobile
number credibility, countering cybercriminals who exploit temporary numbers to facilitate cybercrime. By
employing extensive datasets (e.g., social security and government records), the system validates mobile
connections. Its adaptable design is scalable across regions and data pools and encourages academia–industry
partnerships through an API for real-time assessments, thereby bolstering cyber defenses. Furthermore, the
MNCQ promotes international collaboration against cybercrime, allowing nations to calibrate the system
according to their cybersecurity needs and legal requirements while addressing local threats. Mobile technology
has become indispensable, with India exemplifying its ubiquity. The Unified Payments Interface (UPI) has
revolutionized digital transactions, making mobile numbers the cornerstone of the digital ecosystem. Mobile
numbers are essential for creating bank accounts, accessing financial services, and even obtaining new mobile
numbers. However, while they facilitate convenience, mobile numbers are also exploited by cybercriminals.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 23-02-2025

Low investments in cybersecurity expose financial sector to threats: Experts

Cyberattack vulnerability of Asia-Pacific's financial industry is twice the global average, as investments in
cybersecurity have not kept pace with the economic and digital growth in these countries, experts said. These
attacks will only increase as organisations adapt to new technologies, change domains and increase the use of AI,
leaving their systems vulnerable even in the interim, they added. The RBI introduced a dedicated "bank.in"
domain for Indian banks. This move aims to enhance online security, minimise phishing attacks and strengthen
confidence in digital banking and payment systems. However, banks are prone to heightened risks during the
migration process, experts say. "The time when a migration is happening is an extremely vulnerable time for any
organisation. There is scope for higher phishing attempts. People should also be aware of the new domain and not
fall for attacks from domains that are trying to impersonate - like 'bonk.in'," said Ofir Israel, vice president of
threat prevention at Check Point Software. Organisations in the APAC region faced 2,915 attacks per week while
the global average was 1,843 attacks per week. Executives in charge of cybersecurity are also noticing a significant
increase in phishing attacks, as well as a growing trend of data breaches caused by unauthorised access. "There
are auctions that happen on the dark web where access details of employees of an organisation are sold and the
passwords are usually stolen from the saved credentials on the user's browser. 70% of the passwords are stolen
from an individual's personal computer, but that data is usually processed to find any corporate access," said
Lotem Finkelstein, director-threat intelligence at Check Point Software.

Click here to read full article ...

[Source website : bfsi.economictimes.indiatimes.com]
Published on : 24-02-2025

Niva Bupa Health Insurance reports cyber threat; initiates probe

Niva Bupa Health Insurance Company on Friday reported an incident of cyber threat from an anonymous entity
which claimed to have hacked the company's customer database. In a regulatory filing, Niva Bupa said that it was
conducting an investigation into the data leak threat. "We have received communication(s) from an anonymous
sender. The Threat Actor via email, claims to have the customer data of Niva Bupa," the company said in a
regulatory filing. As a matter of urgency, it said, "We continue to conduct investigation(s) of data leak and
implement measures to mitigate the risk." The company is committed to taking utmost care of customers' interest
and their well-being, it added.
Click here to read full article ...
[Source website : bfsi.economictimes.indiatimes.com]
Published on : 24-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

49
 North Korean hackers steal record $1.5 billion in single crypto hack, security firm says

North Korean hackers have stolen $1.5 billion in cryptocurrency in a single heist, making it the largest crypto hack
on record, security experts told CNN. The hack hit Bybit, which describes itself as the world’s second-largest
cryptocurrency exchange, with over 40 million users.In a matter of minutes on Friday, the hackers stole a
significant portion of North Korea’s reported annual gross domestic product. And over the weekend, the hackers
were already laundering about $160 million of the stolen loot through a series of accounts connected to North
Korean operatives, according to crypto-tracing firm TRM Labs. In a single hack, the North Koreans have nearly
doubled what they stole in crypto last year, the firm said.
Click here to read full article ...
[Source website : cnn.com]
Published on : 24-02-2025

Major Asia bank to cut 4,000 roles as AI replaces humans

Singapore's biggest bank says it expects to cut 4,000 roles over the next three years as artificial intelligence (AI)
takes on more work currently done by humans. "The reduction in workforce will come from natural attrition as
temporary and contract roles roll off over the next few years," a DBS spokesperson told the BBC. Permanent staff
are not expected to be affected by the cuts. The bank's outgoing chief executive Piyush Gupta also said it expects
to create around 1,000 new AI-related jobs. It makes DBS one of the first major banks to offer details on how AI
will affect its operations. The company did not say how many jobs would be cut in Singapore or which roles would
be affected. DBS currently has between 8,000 and 9,000 temporary and contract workers. The bank employs a
total of around 41,000 people. Last year, Mr Gupta said DBS had been working on AI for over a decade. "We today
deploy over 800 AI models across 350 use cases, and expect the measured economic impact of these to exceed
S$1bn ($745m; £592m) in 2025," he added.
Click here to read full article ...
[Source website : bbc.com]
Published on : 25-02-2025

Pig butchering scam: New cyber fraud targets unemployed youth, students, housewives

The government has issued an alert about a new

cyber fraud scheme called the ‘pig butchering scam,’
which targets unemployed youth, students, and
vulnerable individuals. Victims not only lose money
but are also forced into cyber slavery, officials said
on Wednesday. This was also highlighted in the
latest annual report published by the Union
Ministry of Home Affairs last month, they said,
adding that unscrupulous individuals and entities
have been noticed using Google services platforms
to initiate these crimes.A senior official said,
“According to reports from the cyber intelligence
wing, a new online fraud module known as ‘Pig
Butchering Scam’ or ‘Investment Scam’ has been
noticed doing the rounds in cyberspace, which targets unemployed youths, housewives, students, and needy
people, who are made to either lose large sums of money daily or are enticed to do cyber slavery.”He said, “Google
Advertisement platform provides a convenient facility for posting targeted advertisements from across the border.
This scam, known as ‘Pig Butchering Scam’ or ‘Investment Scam,’ is a global phenomenon and involves large-scale
money laundering and even cyber slavery.” According to sources, it is believed that such fraud first originated in
China in 2016. In such fraud modules, they said, miscreants target gullible individuals with whom they first build
trust over time and then convince them to invest in cryptocurrencies or some other lucrative scheme before
stealing the money collected. The officials said the analogy to pig butchering is derived from the fattening of swine
before their slaughter.
Click here to read full article ...

[Source website : newindianexpress.com]

Published on : 26-03-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

50
 How India's cybercrime crackdown is ensnaring digital devils

For those who relish the sport of stringing along scammers—those insidious voices claiming to be police officers, courier
agents demanding OTPs or bank officials offering too-good-to-be-true deals—you may have noticed a change in their
tone. The fraudsters are growing impatient, their scripts are unravelling, their desperation seeping through every
hurried demand. This is not mere coincidence; this is the sound of a digital empire under strain under the weight of
relentless governmental action.
India’s offensive against cybercriminals : Through meticulous intelligence-gathering, I4C has obliterated the
infrastructure of digital fraud by blocking more than 1,700 Skype IDs and 59,000 WhatsApp accounts, tools used to
orchestrate elaborate cons, from fake digital arrests to government impersonation schemes. These were not just random
deletions; they were surgical strikes on the technological arteries that kept fraud alive. Like a vast, invisible web spun
across the country, India’s cybercrime crackdown has ensnared thousands of digital fraudsters. By mid-November 2024,
authorities had severed 669,000 SIM cards and 132,000 IMEIs—devices that once pulsed with the chatter of crime now
rendered mute. At the heart of this takedown is the Indian Cyber Crime Coordination Centre (I4C), an unblinking
sentinel in the war against digital deception.
Click here to read full article ...
[Source website : indiatoday.in]
Published on : 26-03-2025

Amazon's cloud unit builds first quantum computing chip called 'Ocelot'

Amazon.com Inc.’s cloud unit has built its first quantum-computing chip,
joining a growing roster of technology companies showing off futuristic
hardware. Alphabet Inc.’s Google and Microsoft Corp. in the last two
months have announced their own quantum hardware, suggesting that the
powerful form of computing — currently relegated to science experiments
— may solve real problems in the coming years. Others say useful quantum
computers, which might enable advances in chemistry or health care, are
more than a decade away. Amazon Web Services’ new Ocelot chip,
developed by a team working at the California Institute of Technology,
comprises two tiny squares of silicon stacked on top of each other. The
name is a play on words, referring to oscillators, which generate periodic electric signals, including in the prototype
hardware Amazon developed. “Five years ago, I could have told you, ‘I think I could build a quantum computer and
could build it practically,’” said Oskar Painter, head of quantum hardware at AWS. “Today I can say with confidence we
are going to build a quantum computer.”
Click here to read full article ...
[Source website : business-standard.com]
Published on : 27-02-2025

Getting a lot of unwanted phone calls? Here are ways to stop them

Unwanted phone calls are out of control. Whether it's a robocall trying to sell you something or spam calls from
scammers trying to rip you off, it's enough to make you want to stop answering your phone. So what can you do to stop
them? The scourge of unwanted phone calls has been branded an epidemic by consumer groups, while the Federal
Communications Commission says it's the top consumer complaint. The calls are a nuisance to many ordinary people,
some of whom have complained to The Associated Press. "I need help on getting spam calls to stop," one reader said in
an email. She's getting up to 14 calls a day despite the countermeasures she's employed. As the name implies, robocalls
are automated calls to deliver recorded messages to a large number of phones. A robocall purely to deliver a message or
collect a debt is allowed under U.S. regulations, but the Federal Trade Commission says robocalls with a recorded voice
trying to sell you something are illegal unless you've given explicit written permission to receive them. Many robocalls
are also probably scams, the FTC warns. If you're flooded by unsolicited calls, here are some ways to fight back. Phone
settings Smartphone users can turn on some built-in settings to combat unknown calls. Apple advises iPhone users to
turn on the Silence Unknown Callers feature. Go to your "Settings," then scroll down to "Apps," and then to "Phone,"
where you'll see it under the "Calls" section. When you turn this on, any calls from numbers that you've never been in
touch with and aren't saved in your contacts list will not ring through. Instead, they'll be sent to voicemail and show up
in your list of recent calls. Android has a similar setting that allows you to block calls from private or unidentified
numbers, although you will still receive calls from numbers that aren't stored in your contact list
Click here to read full article ...

[Source website : ciso.economictimes.indiatimes.com]

Published on : 28-03-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

51
 Selected Videos on BFSI and
Allied Areas

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

52
 Key Highlights of Union Budget 2025 in 7 Explained: What Is the new call merging scam and
points how to stay safe?

Click here to watch the video via YouTube ...

Click here to watch the video via YouTube ...
Source: The Hindu businessline
Source: ET BFSI Released on: 20-02-2025
Released on: 01-02-2025

The future of digital currency: Why ‘programmable’ What Is AI Distillation — And How DeepSeek Used It
money could reshape global finance To Blindside OpenAI

Click here to listen to the podcast/ watch video via Click here to watch the video via YouTube ...
YouTube ...
Source: CNBC
Source: CNBC International Released on: 21-02-2025
Released on: 12-02-2025

Moneycontrol Exclusive: SBI Chairman CS Setty On

All about the New Income Tax Bill 2025 YONO 2.0, Customer Service And Much More

Click here to watch the video via YouTube ... Click here to watch the video via YouTube ...

Source: Business Standard Source: moneycontrol

Released on: 20-02-2025 Released on: 25-02-2025

SBIIT : SARANSH, March 2025 Click here to reach “ TOC ”

53