21 July 2026
Bankopedia Banking Digest — 2026-07-21 #115
- #1economic_timesneutral
Banks Lag Far Behind FCNR(B) Deposit Targets
Indian banks are significantly lagging behind their Foreign Currency Non-Resident (FCNR-B) deposit mobilisation targets, with most public sector lenders collecting a fraction of their stated goals. Banks are now banking on a September-end surge, citing slow ground-level activity that only began in late June after the Reserve Bank of India clarified operational details.
Public sector banks have collectively raised well under 10% of their FCNR(B) deposit targets so far.
paymentsforexregulation - #2economic_timesneutral
RBI Pushes Banks on Customer Grievance Standards
Reserve Bank of India Deputy Governor Swaminathan J has urged banks and financial institutions to strengthen their internal grievance redressal mechanisms, emphasising that fair and prompt complaint resolution is foundational to financial stability. Speaking at the RBI's Internal Ombudsman Conference, he stressed that customer trust underpins the entire banking relationship beyond capital adequacy and technology.
RBI Deputy Governor calls fair grievance redressal integral to financial stability, not just regulatory compliance.
banking_supervisionregulation - #3economic_timespositive
UPI Reaches 55 Crore Users, Eyes Global Expansion
India's Unified Payments Interface (UPI) has onboarded 55.49 crore users as of June 2026, recording 24,162 crore transactions worth ₹314 lakh crore in value during FY 2025-26. The government continues to expand UPI's international footprint through NPCI International Payments Ltd while bolstering domestic fraud prevention safeguards.
UPI clocked ₹314 lakh crore in transaction value in FY26, reflecting dominant retail payment adoption.
paymentsdigital_bankingfinancial_inclusion - #4moneycontrolneutral
SEBI Clears IPOs for Two Infrastructure Firms
Securities and Exchange Board of India (SEBI) has granted approval for initial public offerings (IPOs) by Absolute Projects (India) Ltd and Jindal Supreme (India) Ltd, both of which filed draft papers between April and May 2026. Absolute Projects will deploy proceeds to expand manufacturing capacity, while Jindal Supreme plans to use fresh issue funds primarily for debt repayment.
SEBI greenlights IPOs for Absolute Projects and Jindal Supreme, with proceeds targeting capex and debt reduction.
capital_markets - #5economic_timesneutral
NCLAT Excludes Gratuity From Insolvency Resolution Costs
The National Company Law Appellate Tribunal (NCLAT) has ruled that employee gratuity and leave encashment dues do not qualify as Corporate Insolvency Resolution Process (CIRP) costs, and must instead be settled under the approved resolution plan's waterfall mechanism. The ruling, upholding an NCLT Kolkata order, arose from a former Duncans Industries director's claim of over ₹83.58 lakh in unpaid dues.
NCLAT rules employee gratuity and leave encashment fall outside CIRP costs under the Insolvency and Bankruptcy Code.
npa_resolution - #6economic_timespositive
Revised ICI Series Signals Stronger Industrial Momentum
India's Index of Core Industries (ICI) grew 5% year-on-year in June 2026, a five-month high, under a revised series that adds iron ore as a ninth constituent. Iron ore led sectoral gains at 43.9% growth, while cumulative April-June 2026 output expanded 3.6% against just 1% a year earlier.
Iron ore and electricity drove India's core sector to a five-month high of 5% growth in June.
economy_macro - #7financial_expresspositive
Record Auto Sales Reveal Undervalued Sector Opportunities
India's automobile sector posted record FY26 sales across all major vehicle categories, with two-wheeler exports surging 23.4% and passenger vehicle exports rising 17.5%. Three auto stocks currently trade below 12x enterprise value-to-EBITDA, offering value entry points despite lingering risks from input costs and geopolitical tensions.
India produced 34.7 million vehicles in FY26, with sales records across every major category.
economy_macrocorporate_finance - #8moneycontrolnegative
HDFC Bank CEO Reappointment Stalled Amid Board Review
HDFC Bank's board has not yet approved a recommendation to reappoint CEO Sashidhar Jagdishan, whose term ends in October, as independent directors conduct an additional internal review. The delay follows former chairman Atanu Chakraborty's abrupt resignation citing ethics concerns, though an external legal review found no evidence to substantiate those claims.
HDFC Bank's board review delays CEO reappointment recommendation ahead of October term expiry.
banking_supervisionregulation - #9moneycontrolneutral
Paytm Earnings Beat Fails to Sustain Stock Rally
Paytm reported a 79% year-on-year rise in net profit to ₹220 crore for Q1 FY27, with revenue up 28% and merchant GMV growing 31%, yet shares slipped nearly 1% as CLSA argued the rally had already priced in the upside. Citi retained its bullish view and raised its target price, highlighting the divergence in analyst sentiment.
Paytm's net profit surged 79% YoY to ₹220 crore in Q1 FY27, beating estimates.
fintechcapital_markets - #10hindu_businesslineneutral
Gold Loan Boom Masks Underlying Borrower Credit Stress
Gold loan assets under management have nearly reached ₹20 lakh crore, making it the second-largest retail credit product in India, but TransUnion CIBIL data reveals that one in five gold loans is extended to borrowers already carrying a non-performing asset on another credit line. TransUnion CIBIL MD and CEO Bhavesh Jain warns this hidden stress warrants closer lender scrutiny.
One in five gold loans goes to borrowers already holding a non-performing asset elsewhere.
credit_marketsnpa_resolution - #11hindu_businesslinepositive
Karur Vysya Bank Crosses ₹1 Lakh Crore Advances
Karur Vysya Bank posted its highest-ever quarterly net profit of ₹756 crore in Q1FY27, up 45% year-on-year, driven by a 32% surge in net interest income to ₹1,423 crore. Total advances crossed ₹1 lakh crore for the first time, with Retail, Agri and MSME lending growing 18% year-on-year.
Karur Vysya Bank records all-time high quarterly profit of ₹756 crore, up 45% YoY.
banking_supervisioncorporate_finance - #12financial_expresspositive
Retail Investors Double Down on Mid and Small Caps
Retail participation in mid and small cap mutual funds has surged sharply, with combined folios crossing 54 million by June 2026, now accounting for over 32% of all open-ended equity fund folios. Strong long-term returns — mid caps at 18.76% and small caps at 17.68% over three years — continue to draw investors despite market volatility.
Mid and small cap funds now hold over 32% of all open-ended equity folios in India.
capital_marketsfinancial_inclusion - #13moneycontrolpositive
UltraTech Cement Delivers Steady Q1 Amid Cost Pressures
Motilal Oswal has retained its 'Buy' rating on UltraTech Cement with a target price of ₹13,800, implying 16% upside, after the company reported a 16% year-on-year rise in adjusted profit after tax to ₹26.1 billion in Q1FY27. The brokerage flags near-term cost pressures from higher fuel costs even as management maintains a constructive medium-term demand outlook.
UltraTech Cement Q1FY27 adjusted PAT rises 16% YoY to ₹26.1 billion; Buy retained.
capital_markets - #14financial_expressneutral
Foreign Stock Disclosures Trip Up Indian Tax Filers
A Mumbai professional received a high-priority tax notice under the Black Money Act after failing to properly disclose vested foreign employer stocks in Schedule FA, exposing a common compliance gap for Indian residents with overseas equity holdings. Expert intervention ultimately helped him correct the filings and achieve tax savings of ₹1,65,764.
Undisclosed foreign employer stock vesting triggered a Black Money Act notice for a Mumbai professional.
regulationfinancial_inclusion - #15reserve_bank_of_indianeutral
RBI Injects ₹75,000 Crore via Short-Term Repo
The Reserve Bank of India (RBI) announced a 3-day Variable Rate Repo (VRR) auction of ₹75,000 crore under the Liquidity Adjustment Facility (LAF) on July 21, 2026, reversing on July 24. The move reflects the central bank's active management of evolving domestic liquidity conditions.
RBI injects ₹75,000 crore via a 3-day Variable Rate Repo auction on July 21, 2026.
monetary_policypayments