PUBLIC SECTOR BANKS
Govt's divestment plan to push fundraising activities in FY26: Emkay Global
Emkay Global Financial Services predicts that the government's FY26 divestment target of Rs 47,000 crore will drive significant investment banking activity. However, recent market corrections have slowed deal-making and IPO activities, as seen in reduced IPOs and QIPs in early 2025 compared to previous years.
Creditors to vote on Sinnar Thermal Power offer as dispute over customs claims resolved
The former Indiabulls-owned plant was de-notified as a special economic zone (SEZ) and the resultant customs claims have now been admitted under the head of operational creditors, absolving any future liabilities worth ?635 crore for the bidders.
PSUs emerge as bright spot for investment banks amid recent correction: Emkay
India’s market correction has impacted fundraising, with IPO and QIP activity slowing. However, a strong pipeline of PSU deals and government divestments is expected to boost investment banking, supported by steady SIP inflows and rising domestic institutional investor participation.
FY25 PSU stock performance worst in 3 years as 73% scrips fall up to 48%. Just 1 multibagger shines
PSU stocks are set to conclude FY25 weakly, marking their poorest performance in three years with 73% of stocks falling up to 48%. Mazagon Dock Shipbuilders stands out as the sole multibagger, while sectors like defence and power show potential for recovery. In FY26, investments in PSU theme will require a quality over quantity approach, with focus resting on stocks with strong fundamentals where performance justifies optimism.
We are better off now than in September; by June a bottom should be in place: Ajay Bagga
Ajay Bagga asserts that sectors such as gems, jewellery, electronics, and pharma could be hit by Trump's tariffs, affecting $80 billion in annual exports to the US. He believes the market will bottom out by June, with price levels stabilizing around 21,800. Key opportunities lie in the defense sector and private financials.
NFO Insight: Can SBI BSE PSU Bank Index Fund beat market volatility?
SBI Mutual Fund’s new offerings, the SBI BSE PSU Bank Index Fund and SBI BSE PSU Bank ETF, focus on tracking the BSE PSU Bank Index. Experts advise caution, suggesting these be tactical rather than core investments due to the banking sector's cyclical nature.
- Go To Page 1
Closer India-Lat America ties contribute to India’s leadership role in global South
The 10th CII India-LAC Conclave emphasized the strengthening of India-LAC trade relations and highlighted potential areas for collaboration including agriculture, food security, renewable energy, and healthcare. Two MoUs were signed to enhance economic cooperation between both regions in various sectors.
IOB gets board approval to raise Rs 10,000 crore via infra bonds
Indian Overseas Bank received board approval to raise Rs 10,000 crore via long-term infrastructure bonds in multiple tranches. The funds will support infrastructure and affordable housing. Several public sector banks have raised similar bonds to boost credit growth. These bonds offer cost advantages due to regulatory exemptions.
Bank earnings growth could bottom out in FY26: Motilal Oswal
Indian banks’ earnings growth may bottom out next fiscal year due to slow GDP and sluggish credit growth, according to Motilal Oswal. Private banks could see growth bottoming at 11% in FY26, while public sector banks may experience 8% CAGR due to higher costs and limited loan growth. Large cap banks are favored for their strong balance sheets.
FY25 hits & misses: Media, PSU bank shares slip in double digits while defence, financial services shine
In FY25, sectors like media, energy, PSU banks, and realty are expected to perform poorly, while defence, financial services, and healthcare are projected to see gains. Media has witnessed a significant profit decline, while PSU banks, despite strong numbers, face challenges like NPAs. Positive views are held on metals, NBFCs, private banks, and technology for FY26.
President's intervention sought over SBI's 'plan' to shift Global Market Unit from Kolkata
A civil society platform urges President Droupadi Murmu to intervene in SBI's plan to move its Global Market Unit from Kolkata to Mumbai, fearing it will weaken West Bengal's financial system and cause job losses. They claim the move undermines Bengal's financial prominence and will significantly impact the state's GST contributions and employment.
India's private sector is in better position to invest, compared with decade ago: Crisil Intelligence
India's private sector is better positioned for investments due to improved financial health and reduced debt levels, driven by low capex and government initiatives. While domestic demand is set to recover, global uncertainties pose challenges. Nonetheless, measures to boost consumption and lower interest rates are expected to gradually increase corporate investments.
Public Sector Banks must focus on capital strength, cost efficiency: Govt
Public sector banks are encouraged to focus on timely capital raising and reducing intermediation costs to make banking products more affordable, says M Nagaraju of the financial services department. Collaborative efforts in areas like cyber security and AI applications are also emphasized to improve services.
Banking secretary says PSBs must plan appropriate, timely capital raise
Public sector banks are encouraged to plan timely capital raises and reduce intermediation costs to make financial products more affordable. Emphasis is placed on building operational efficiency, risk management, cyber security, and fostering innovation through collaborations and AI applications to enhance banking services.
In near term, be overweight on NBFCs; shift towards banks in H2: Suresh Ganapathy
Suresh Ganapathy from Macquarie Capital predicts that banks will benefit from falling rates and easing liquidity, with private sector banks being more agile than PSUs. He suggests investing in NBFCs short-term due to immediate gains from rate cuts but advises a shift to banks for long-term growth as the credit cycle stabilizes.
NFO Alert: SBI Mutual Fund launches PSU Bank-based two passive funds
SBI Mutual Fund: The SBI BSE PSU Bank Index Fund is an open-ended scheme that mirrors the BSE PSU Bank Index, while the SBI BSE PSU Bank ETF is an open-ended exchange-traded fund that tracks the same index.
Housing loan penetration in eastern India lags, NHB report highlights regional disparities
Housing loan penetration in eastern and northeastern India remains significantly underdeveloped compared to other regions, with eastern states holding only 6.90% and northeastern states just 0.93% of the market. The government aims to address this disparity through the co-lending model to enhance housing credit access, particularly in Tier-2 and Tier-3 cities.
Bank unions firm on March 24-25 strike as talks with IBA fail
The United Forum of Bank Unions (UFBU) confirmed a two-day nationwide strike on March 24 and 25, following unsuccessful talks with the Indian Banks' Association (IBA) over key demands. These include recruitment, a five-day workweek, and job security. The UFBU opposes the Department of Financial Services' directives, asserting they threaten autonomy and employee security.
PM Surya Ghar Muft Bijli Yojana led to 10 lakh homes becoming solar-powered
The scheme offers collateral-free loans of up to Rs 2 lakhs at a marginal interest rate of 6.75 per cent through 12 public sector banks. So far over 3.10 lakh loan applications have been received by banks and over 1.58 lakh sanctioned. Loans under the scheme are disbursed to over 1.28 lakh applicants.
State Bank of India to set up AI, fintech project finance unit
State Bank of India is establishing a unit for project financing focused on new age industries like AI, e-commerce, and fintech. The initiative aims to diversify the bank's project finance efforts, targeting sectors benefitting from increased infrastructure spending under Prime Minister Modi's upgrades.
0% return in 10 years: CA highlights case of IndusInd Bank share saying Rs 1,000 in 2014, would still be Rs 1,000 in 2025
IndusInd Bank, India's fifth-largest private lender, suffered a massive stock decline of over 27% following revelations of a significant accounting discrepancy in its forex derivative transactions. The issue, amounting to Rs 1,577 crore post-tax, has raised serious concerns about governance, transparency, and regulatory scrutiny. With the Reserve Bank of India (RBI) stepping in to review other banks' hedging effectiveness, the crisis has sparked broader questions about the stability of India's financial sector.
Peer woes add to CMS appeal even as D-St run faces bumps
AGS managed over 32,000 ATMs and cash recycler machines as of September and reported ?901 crore of revenue from operations in the nine months to December 2024 and ?1,471 crore in FY24. CMS, which manages nearly 73,000 ATMs and recorded nearly double the revenue compared with AGS, is expected to be a major beneficiary given the efforts of the latter's banking clients to look for alternative arrangements to service ATMs.
IndusInd issue puts the spotlight on India's banking sector
IndusInd Bank discovered discrepancies in account balances related to currency derivatives. This prompted an internal review and raised concerns about other banks having similar issues. The RBI is investigating. Despite improvements in asset quality and profitability, concerns remain over unsecured retail loans, slow deposit growth, and rising micro-lending stress.
Moody's maintains stable outlook for Indian banking sector amid expected asset quality deterioration
Moody’s maintains a stable outlook for the Indian banking sector but anticipates some asset quality deterioration in unsecured retail, microfinance, and small business loans. Bank growth is predicted to slow to 11%-13% by FY26. Non-performing loans are expected to rise moderately to 2%-3%, and profitability will weaken slightly yet remain adequate.
Government proposes dedicated AI governance board to oversee application approvals
The government proposes an AI Governance Board to oversee AI applications, ensuring compliance with legal guidelines. Announced with the AI competency framework, it aims to enhance AI literacy, ethical governance, and responsible adoption in public administration.
Indian banks continue to grapple with poor deposit growth
Indian banks are facing challenges in deposit mobilization, leading to a higher Loan-to-Deposit Ratio of nearly 126% as of February 2025. Despite lender programs, deposit growth remains sluggish, forcing banks to rely on alternative funding sources and intensifying competition for bulk deposits.
Bank loans continue to flow, deposits harder to come by
Indian banks are currently extending more loans than they are gathering deposits, with the incremental loan-to-deposit ratio reaching nearly 126%. This indicates a reliance on borrowed funds, as system-wide LDR hits its peak, leading to intensified competition for deposits particularly in low-cost CASA.
Edelweiss AMC to merge two Bharat Bond ETFs
Investors who wish to remain invested will need to submit their consent with the AMC by April 8. Money will be returned to investors who do not give consent.
Public sector banks eye fintech tie-ups; Blinkit, Zepto raise commissions
Happy Friday! Public sector banks are eyeing collaborations with fintech startups to boost lending to MSMEs. This and more in today’s ETtech Morning Dispatch.
Load More
