ICRA Ratings anticipates one-year bank deposit rates have bottomed out at 6%, projecting a moderate transmission of policy rates to lending rates by Q4. While deposit rates are unlikely to fall to pandemic levels, banks might lower them if credit growth lags and liquidity remains high.
Singapore's Temasek-backed Fullerton Financial is re-entering Indian financial services. It plans to invest ₹2,000 crore in Lendingkart Finance. This will help Lendingkart expand its loan book. Fullerton has already increased its stake in Lendingkart Technologies. It has also assumed management control. The company aims to disburse fresh loans and launch secured products.
Bankers anticipate that the GST Council's recent decisions, including reduced tax rates on various goods, will significantly boost consumption and credit expansion. This reform, effective September 22, 2025, is expected to increase disposable incomes, stimulate demand across sectors like retail and agriculture, and ultimately drive substantial economic growth. Businesses will also benefit from simplified compliance and improved competitiveness.
In a letter to the Prime Minister dated August 26, a copy reviewed by ET, former CFO of IndusInd Bank claimed that he uncovered serious issues in treasury operations that had persisted for more than a decade. Jain said he was the only executive to detect the lapses and had fought a “lone battle†to highlight them.
L Satya Srinivas from the commerce ministry is now India's executive director at the Asian Development Bank. He will take over from Vikas Sheel. Srinivas will also represent other nations like Bangladesh and Bhutan. This appointment occurs as India urges multilateral banks to monitor funds to Pakistan. India is also pushing for reforms at lenders to address development financing.
Customers are cancelling approved car loans. This is because of the Goods and Services Tax (GST) rate cut on passenger vehicles. The 56th GST Council approved reducing the rate for cars up to 1,200 cc to 18 percent. The new rates will be effective from September 22. Borrowers are opting for fresh loans after the rate cuts.
Financial Services Secretary M Nagaraju urged PSBs to strive for global competitiveness and strengthen governance at the PSB Manthan 2025. Discussions centered on modernizing technology, adopting AI governance, and collaborating with fintechs. The event emphasized PSBs' crucial role in financial inclusion, national priorities, and emerging sectors, aiming for a developed India by 2047.
Punjab National Bank (PNB) has committed Rs 21,000 crore to Rajasthan's Rising Rajasthan initiative, aiming to boost socio-economic progress through its extensive network and digital resources. During a visit to Jaipur, PNB's MD & CEO, Ashok Chandra, distributed 2,000 loan sanction letters to women entrepreneurs and emphasized digital adoption, financial inclusion, and fraud prevention.
Indian banks are strategically leveraging the festive season and recent tax cuts to revitalize loan growth, particularly in high-margin retail sectors. HDFC Bank, ICICI Bank, Axis Bank, SBI, and BoB are rolling out festive offers and discounts to capitalize on increased consumer spending.