UPI-based cash withdrawals are poised to expand beyond ATMs, potentially reaching millions of business correspondents across India. NPCI seeks RBI approval to enable UPI cash withdrawals at BCs, offering a convenient alternative to card-based transactions and biometric authentication.
SBI and a group of private banks are poised to receive a tax exemption on ₹13,483 crore income from selling their stake in Yes Bank to SMBC. The Yes Bank Reconstruction Scheme, 2020, exempts banks from capital gains tax on profits from the share sale. This deal marks Japan's largest bank's entry into India.
Private sector banks experienced a decline in net profit for the second consecutive quarter due to dwindling net interest income, while public sector banks continued their double-digit growth. Overall net profit growth for the sampled banks slowed to a four-and-a-half-year low, reflecting a deceleration in net interest income, which saw its first drop in over five years.
Recent GST reforms, coupled with a good monsoon and improved liquidity, are poised to stimulate credit demand, particularly in retail and MSME sectors. Reduced tax rates and simplified compliance are expected to boost consumption, ease working capital pressures, and drive loan disbursements, benefiting banks and NBFCs.
Deutsche Bank is considering selling its Indian retail banking assets, encompassing 17 branches, as part of a broader strategy to enhance profitability. The bank has invited bids from both domestic and international lenders, setting an August 29 deadline for initial offers. This move aligns with Deutsche Bank's plan to reduce its retail workforce and branch network globally.
The realities of the bond market, inflation expectations and fiscal uncertainties are complicating matters when it comes to rate cut transmission. Borrowers have been left waiting for relief as the intended benefits of the RBI's rate cut are not filtering through to the lending rates.
IndusInd Bank shareholders rejected a resolution allowing the Hinduja Group to appoint two nominee directors, with 54% voting against it. Despite prior approvals from the RBI and the bank's board, concerns raised by proxy advisors led to the proposal's defeat.
The Reserve Bank of India (RBI) has levied a penalty of Rs 44.7 lakh on Bandhan Bank due to non-compliance with certain statutory and regulatory norms. An inspection revealed that the bank paid commissions to employees and made manual interventions in account data without proper audit trails. The penalty is based on regulatory deficiencies.
Gold loans in Kolkata witnessed a massive surge, growing 122% year-on-year. This occurred even as personal loan growth slowed. The Reserve Bank of India data showed gold loans outstanding at Rs 2.94 lakh crore. Credit card outstanding growth also decelerated. Housing and vehicle loan growth moderated as well.