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.

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.

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.

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.

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.

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.

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.

Over the last six months, ICICI Bank has slashed its home loan rate by more than 105 basis points to 7.7%, while HDFC Bank has cut it by 80 bps to 7.9% over the same stretch. ICICI Bank’s rate, currently the lowest among private lenders, is available to existing customers who have pre-approved digital home loans and strong credit scores.

Reserve Bank of India is likely planning to permit lenders to remotely lock mobile phones of borrowers who default on their loans. This move aims to reduce bad assets but raises concerns about consumer rights. The Reserve Bank of India is expected to update its Fair Practices Code, introducing guidelines on phone-locking mechanisms while mandating prior consent and data protection.