The banking system is set to receive a liquidity boost of ₹62,000 crore with the first phase of the CRR cut taking effect, injecting funds ahead of the festive season. This move aims to improve monetary transmission and stimulate economic activity, potentially leading to lower deposit and lending rates.
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.
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.
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.
UPI achieved a milestone in August 2025, surpassing 20 billion monthly transactions, totaling ₹24.85 lakh crore. This represents a significant year-on-year growth of 21% in value and 34% in volume. PhonePe, Google Pay, and Paytm led the market, with financial payments and essential goods driving transaction volume. UPI now constitutes 85% of India's digital transactions and is expanding globally.
SBI Chairman C S Setty highlighted that sustained consumption would drive private capital expenditure, with corporates operating at high capacity. He noted strong public capex, particularly in refineries and renewable energy, while core sectors await demand revival. Setty advocated for allowing banks to fund mergers and acquisitions, citing corporate cash reserves and cross-border funding trends.
State Bank of India believes government initiatives will encourage corporate expansion. Many companies are operating near full capacity. Sustained consumer demand is key to unlocking private investment. Public sector refineries, data centers, and renewable energy are driving loan growth. Core sectors like steel and cement are lagging behind in investment. Companies are exploring acquisitions using their cash reserves and debt.
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.
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.