30 September 2026
Bankopedia Banking Digest — 2026-09-30 #182
- #1financial_expressneutral
SLR Cut Needed to Sustain Credit Momentum
Economist Renu Kohli argues the Reserve Bank of India should cut the Statutory Liquidity Ratio (SLR) by 200 basis points to ease structural deposit constraints and sustain the nascent bank credit cycle. While FCNR(B) deposits currently provide liquidity, RBI's forex market interventions could drain over $50 billion of those inflows within a few quarters, potentially re-tightening credit conditions.
RBI should cut SLR by 200 bps to prevent deposit scarcity from choking the early-stage credit cycle.
monetary_policybanking_supervision - #2economic_timesneutral
SBI Flags FCRA Operational Gaps to Parliament
State Bank of India (SBI) has flagged operational gaps in the proposed Foreign Contribution (Regulation) Amendment Bill, 2026 before a Joint Parliamentary Committee, warning that transactions processed between FCRA registration cancellation and bank notification could face legal scrutiny. SBI's delegation, led by Chairman Challa Sreenivasulu Setty, sought clear procedures on account operations, incoming credits, and treatment of fixed deposits after registration lapses.
SBI warns of a legal grey zone for transactions processed before banks receive FCRA cancellation notices.
regulationbanking_supervision - #3economic_timesneutral
BNP Paribas Cardif Enters IndiaFirst Life Insurance
The Competition Commission of India (CCI) has approved BNP Paribas Cardif's acquisition of a 26% stake in IndiaFirst Life Insurance Company from private equity firm Warburg Pincus. Post-transaction, Bank of Baroda retains a 65% holding, BNP Paribas Cardif holds 26%, and Union Bank of India holds the remaining 9%.
CCI clears BNP Paribas Cardif's 26% stake acquisition in IndiaFirst Life from Warburg Pincus.
insuranceregulation - #4economic_timespositive
NEDFi Delivers Steady Growth, Improving Asset Quality
North Eastern Development Finance Corporation (NEDFi) posted net profit of ₹92.23 crore for FY2025-26, with interest income rising 9.73% and gross non-performing assets (NPAs) declining to 1.71% from 1.88%. Loan outstanding grew to ₹2,269.05 crore, while the North East Venture Fund has backed 70 startups across the region.
NEDFi's gross NPAs fell to 1.71% as loan book crossed ₹2,269 crore in FY26.
financial_inclusioncorporate_finance - #5moneycontrolneutral
Rupee Under Pressure at 96 Per Dollar
The Indian rupee opened 7 paise weaker at 96.05 per US dollar on September 29, pressured by elevated oil prices near $99 per barrel and a firmer dollar index, with markets closely watching whether the RBI will defend the 96.00 level. Asian currencies traded mixed, with the Indonesian rupiah and Thai baht declining while the Philippine peso and Malaysian ringgit gained.
Rupee slips to 96.05 per dollar as RBI's defence of the 96.00 level faces pressure from rising oil.
forex - #6economic_timespositive
India's Services Index Signals Broad Sectoral Growth
India's Index of Services Production (ISP) recorded broad-based growth in July, with 17 of 19 sub-sectors expanding and administrative services leading at 20.9%. The monthly trial indicator, using FY2024-25 as the base year, is designed to complement the Index of Industrial Production by providing high-frequency data on the services economy.
India's new ISP shows services sector expanding broadly, with administrative services surging 20.9% in July.
economy_macrodigital_banking - #7economic_timespositive
Rupee-Dirham Trade Settlements Cross Double-Digit Share
India-UAE bilateral trade settled in rupees and dirhams has crossed into double-digit percentage share, Commerce Minister Piyush Goyal announced after a joint investment task force meeting in Mumbai. The rise in local-currency settlements reflects growing business familiarity with the mechanism as both nations seek to insulate trade from geopolitical disruptions.
Rupee-dirham trade settlements between India and UAE now exceed 10% share of bilateral trade.
forexpayments - #8hindu_businesslinepositive
Bank of India Activates Programmable Digital Rupee Payments
Bank of India has launched programmable digital rupee functionality on its Central Bank Digital Currency (CBDC) platform, enabling account holders to schedule automatic, purpose-restricted transfers to beneficiary wallets. Developed by Montran India, the feature operates without manual intervention and complies with Reserve Bank of India and National Payments Corporation of India guidelines.
Bank of India's programmable digital rupee enables automatic, purpose-restricted CBDC transfers without manual intervention.
digital_bankingpayments - #9economic_timesneutral
Alternative Payment Systems Challenge Dollar's Global Dominance
Alternative payment infrastructures are gaining ground globally as the dollar's dominance faces growing pressure, though the greenback still accounts for 40–50% of worldwide payments. Russia's shift toward ruble-denominated trade is accelerating, with the Central Bank projecting the ruble's share in export earnings to exceed 53% by end-2025.
Dollar still dominates 40–50% of global payments despite rising momentum for alternative currency settlements.
paymentsforex - #10hindu_businesslinepositive
AU Small Finance Bank Scales Microfinance Reach Nationwide
AU Small Finance Bank's Microfinance and Financial Inclusion Business network has surpassed 1,000 branches, now serving over 20 lakh customers and 58 lakh rural savings account holders across 59,000-plus villages in 17 states and one Union Territory. The expansion spans rural and semi-urban markets across North, Central, East, and South India.
AU Small Finance Bank's microfinance network tops 1,000 branches, reaching 20 lakh customers across 17 states.
financial_inclusiondigital_banking - #11moneycontrolneutral
Royal Chain Files ₹1,000 Crore IPO Papers
Mumbai-based B2B gold jewellery manufacturer Royal Chain has filed a draft prospectus with SEBI to raise ₹1,000 crore through an IPO, comprising ₹850 crore in fresh equity and ₹150 crore via an offer for sale. The company supplies gold chains to major organised retailers including Titan, Kalyan Jewellers, and Senco Gold, and operates with an annual installed capacity of 12,000 kg.
Royal Chain targets ₹1,000 Cr IPO; supplies gold jewellery to India's top organised retail chains.
capital_markets - #12moneycontrolneutral
Senior Citizen ITR Exemption Rules Decoded
Senior citizens aged 75 and above with income only from pension and bank fixed deposit interest may be exempt from filing an Income Tax Return if their bank has deducted tax at source, subject to specific conditions under Indian income-tax law. However, the exemption is conditional and not automatic, depending on income thresholds and other eligibility criteria.
Citizens aged 75+ may skip ITR filing only if bank deducts TDS and specific income conditions are met.
financial_inclusion - #13moneycontrolneutral
Varmora Granito Lists With Modest Market Premium
Tiles and bathware manufacturer Varmora Granito debuted on exchanges on September 29 at a 4.73% premium on NSE at ₹155 per share, outperforming muted grey market expectations after its ₹708 crore IPO was subscribed 1.58 times. Post-listing, the company's market capitalisation stood at ₹3,435 crore, though analysts caution that valuation at around 60x price-to-earnings remains stretched.
Varmora Granito lists at 4.73% premium on NSE, but 60x post-listing P/E signals demanding valuation.
capital_markets - #14moneycontrolneutral
EPFO Flags Interest Cutoff on Dormant Accounts
The Employees' Provident Fund Organisation (EPFO) has reminded members that EPF accounts do not earn interest indefinitely after retirement, with interest ceasing once an account becomes inoperative — typically after three years of no contributions — and in all cases stopping at age 58. Members who retire early or migrate abroad should be aware that their account's interest-earning period depends on their age at the time they stop working.
EPF accounts stop earning interest at age 58 or three years after retirement, whichever comes first.
financial_inclusion - #15financial_expresspositive
Solar Industries Bets on Omnia for Global Scale
Solar Industries is pursuing the acquisition of South Africa's Omnia Holdings to expand its global explosives footprint, with management projecting the deal will double company revenue by FY2028 post-consolidation. The transaction adds international mining explosives capacity alongside Solar's growing defence investment, though Omnia's lower margins and the need for significant debt financing present near-term challenges.
Solar Industries' Omnia acquisition targets ₹32,000 Cr revenue by FY28, doubling current base.
corporate_financecapital_markets