AIBOC has criticised the government's decision to privatise IDBI Bank, calling it a betrayal of parliamentary assurances made in 2003. The organisation argues that privatisation equates to selling people's savings and weakening the public banking network. The government and LIC jointly own 95% of IDBI Bank, with 60.72% stake set for sale.
The decision to merge the two holding companies into one is not related to Jana's universal banking aspirations while this would only help improving efficiency through a leaner structure, managing director and chief executive officer Ajay Kanwal said.
UCO Bank announces a reduction in its marginal cost of funds-based lending rates. The cut impacts various loan tenures by five basis points. The one-year MCLR now stands at 8.90 percent. Simultaneously, the bank has revised the yield on its 10-year government securities. The yield is raised to 6.78 percent. Other rates, including repo-linked rates, remain unchanged.
IDBI Bank has initiated a new insolvency plea against ZEE at the National Company Law Tribunal. The bank claims a default of Rupees 225.22 crore. ZEE has dismissed the application as malicious and meritless. ZEE also said that it will take legal action against the bank. Earlier, NCLT had dismissed a similar plea by IDBI Bank in 2023.
State Bank of India anticipates a rise in corporate credit demand this quarter. Bond yields are increasing, making bank loans more attractive. Previously, corporations favoured bonds due to lower rates. Reserve Bank of India's rate cuts had initially boosted bond issuances. India aims to be a major global economy, requiring strong credit growth.
In Kolkata, State Bank of India anticipates a shift. Corporates might seek loans from commercial banks. This is due to rising bond yields. Debt market conditions are changing. Issuance of debt papers has decreased this quarter. Banks possess sufficient capital for lending. They are interested in funding renewable energy and startups. Digital payment systems are becoming more popular in India.
The Reserve Bank of India has approved Yes Bank's proposed amendments to its Articles of Association, facilitating the appointment of nominee directors. This move precedes Sumitomo Mitsui Banking Corporation's acquisition of stakes from SBI and other lenders. Post-acquisition, SMBC will nominate two directors, and SBI will nominate one, to Yes Bank's board.
Gujarat has remained the top state in attracting investments as it got the most number for projects in each year between FY15 and FY25, while Maharashtra has retained the second place for the last four fiscal years, showed data available in a study by the Reserve Bank of India (RBI) staff.
Delays occur because many Indian banks contact the receiver before crediting their account to confirm the payment, or re-verify final account details. In addition, differences in how institutions update tracking information or credit client accounts-often tied to batch processing in back-office systems-slow down deals.