Indian banks are expected to cut dividend payouts by 4.2% in fiscal year 2026. This marks the first reduction in four years. S&P Global Market Intelligence forecasts this decline. HDFC Bank and Bank of Baroda may see dividend cuts. State Bank of India's dividend is expected to remain stable. ICICI Bank might increase its dividend per share.
Ravi Ranjan, currently Deputy Managing Director, has been recommended by the Financial Services Institutions Bureau (FSIB) to become the next Managing Director of State Bank of India (SBI). He is set to succeed Vinay M Tonse, whose term ends on November 30. The final decision now rests with the Appointments Committee of the Cabinet, led by Prime Minister Narendra Modi.
The finance ministry has urged banks to focus on improving their CASA deposits and increasing lending to MSMEs and the agriculture sector. Concerns were raised about the declining CASA ratio of public sector banks, which is impacting their net interest margins.
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.
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.
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.
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.
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.
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.