5 October 2026
Bankopedia Banking Digest — 2026-10-05 #187
- #1hindu_businesslineneutral
MPC Faces Case for Repo Rate Reversal
India's Monetary Policy Committee, after cutting the repo rate by 125 basis points through 2025, faces renewed pressure to hike rates as Brent crude rebounds to $100 per barrel amid the unresolved Iran conflict. A 25-basis-point hike at the upcoming meeting appears prudent given sustained growth and persistent inflation risks.
Brent crude at $100/barrel and unresolved Iran conflict make a 25-bps repo rate hike imminent.
monetary_policyeconomy_macro - #2economic_timesnegative
NHB Orders Forensic Audit of Housing Lender
The National Housing Bank (NHB) has issued a request for proposal to conduct a forensic audit of a Udaipur-based housing finance company, identified by sources as SRG Housing Finance, to investigate potentially fictitious loan accounts. Auditors will scrutinise loan origination, borrower identity, disbursement trails, and system access logs for any manipulation.
NHB's forensic audit of SRG Housing Finance targets fictitious loan accounts and system-level fraud.
banking_supervisionnpa_resolution - #3economic_timespositive
GST Council Moves to Decriminalise Tax Enforcement
The Goods and Services Tax (GST) Council is considering removing arrest powers from GST officers and transferring them to courts, while raising the criminal prosecution threshold fivefold from ₹1 crore to ₹5 crore. The reforms, following September 2025's rate rationalisation, aim to shift enforcement emphasis toward tax recovery and financial penalties over criminal action.
GST prosecution threshold may rise from ₹1 crore to ₹5 crore, limiting officers' arrest powers.
regulationbanking_supervision - #4economic_timespositive
GST Relief on Employee Insurance Gains Momentum
Employers may soon be permitted to claim Input Tax Credit (ITC) on the 18 percent GST paid on group insurance policies bought for employees, a benefit currently unavailable under existing GST law. The proposed change is expected to lower the cost of employee coverage and support broader insurance penetration across organised sectors.
Employers may claim ITC on 18% GST on employee group insurance, reducing workforce coverage costs.
regulationinsurance - #5moneycontrolneutral
PPF Maturity Options Every Investor Should Know
Public Provident Fund (PPF) account holders who complete the mandatory 15-year tenure have three options: full withdrawal, continuation without fresh deposits, or a five-year extension with continued contributions. The choice hinges on individual financial goals, given the PPF's current tax-free return of 7.1 percent per annum compounded annually.
Mature PPF holders can extend for five years or withdraw; current rate stands at 7.1% per annum.
financial_inclusioncapital_markets - #6moneycontrolneutral
Bond Selloff and Soft US Data Reprice Fed Path
A global bond selloff pushed US 10-year Treasury yields to 5.34 percent, their highest since 2002, while a weak September payrolls print of just 29,000 jobs collapsed near-term Federal Reserve rate-hike odds below 20 percent. The dollar briefly crossed 102, but softer inflation and labour data prompted sharp repricing of the Fed outlook, lifting US equities on Friday.
US September payrolls of 29,000 collapsed Fed hike odds from 60% to below 20%.
forexeconomy_macro - #7hindu_businesslineneutral
SEBI Consultation Draws 20,000 Responses on Derivatives Settlement
SEBI has received 20,000 comments on its consultation paper reviewing the closing auction session, market timings, and derivatives settlement methodology, far exceeding the 3,500 cited by the regulator's chairman a week ago. The majority of market participants favour retaining the existing last-30-minute continuous trading session volume-weighted average price rather than moving to a blended methodology.
Market participants overwhelmingly prefer retaining existing VWAP over SEBI's proposed blended settlement methodology.
capital_marketsregulation - #8moneycontrolpositive
Private Capex Revival Gathers Momentum Across Sectors
India's private investment cycle is showing signs of revival, with power, data centres, and metals sectors leading new project commitments and banks stepping up lending to large, medium, and small enterprises. Private-sector project sanctions by banks and financial institutions reached a record ₹4.4 lakh crore in FY26, with infrastructure, particularly the power sector, dominating the investment landscape.
Private-sector project sanctions hit a record ₹4.4 lakh crore in FY26, led by the power sector.
corporate_financecredit_marketseconomy_macro - #9moneycontrolneutral
Resolving Missing EPF Contributions: A Step-by-Step Guide
Employees Provident Fund Organisation members who find a monthly contribution missing from their passbook should first cross-check their salary slip before escalating, as contributions can take time to appear after employer filing. If the discrepancy persists, members should approach their employer's payroll or human resources team to verify whether the return, payment, or details submitted to EPFO are accurate.
Cross-check salary slips first; employers must deposit EPF contributions by the 15th of the following month.
financial_inclusion - #10hindu_businesslineneutral
Record IPO Market Skews Heavily Toward Offer-for-Sale Proceeds
India's mainboard initial public offering market raised a record ₹94,205 crore in the first half of FY27, but 59 percent of proceeds went to existing shareholders via offers for sale rather than into companies as fresh capital. The National Stock Exchange's ₹22,563-crore all-OFS listing accounted for nearly a quarter of total fundraising and was the primary driver of the OFS-heavy skew.
NSE's all-OFS IPO of ₹22,563 crore single-handedly drove the record shift toward cash-out over fresh capital.
capital_marketscorporate_finance - #11moneycontrolneutral
Credit Card Closure Leaves EMI Obligations Intact
Cancelling a credit card does not extinguish outstanding EMI liabilities, which remain payable under the original scheme terms. Cardholders must also check reward points and pending refunds before closure to avoid unexpected financial obligations.
Card cancellation does not cancel EMI dues; repayments continue via auto-debit mandates.
credit_marketsfinancial_inclusion - #12financial_expresspositive
Domestic Manufacturers Target India's Dental Consumables Boom
India's dental equipment and consumables market is projected to grow from USD 2.09 billion in 2024 to USD 3.62 billion by 2030, at a 9.6% compound annual growth rate. Domestic manufacturers of dental materials, biomaterials and prostheses stand to capture a significant share of this expansion.
India's dental consumables market targets USD 3.63 billion by 2033, at a 9.7% annual growth rate.
capital_marketscorporate_finance - #13hindu_businesslinepositive
Gold Loans Drive Formal Credit Access in India
India's gold loan market is emerging as a significant driver of financial inclusion, offering secured credit access to households that lack traditional creditworthiness documentation. The shift from informal moneylenders to regulated non-banking financial companies is improving oversight and formalisation of a centuries-old lending practice.
Formalised gold lending through NBFCs is expanding credit access for underserved Indian households.
financial_inclusioncredit_markets - #14hindu_businesslinepositive
Cube Highways Prices AAA NCDs at 7.50 Percent
Cube Highways Trust has raised ₹1,150 crore via AAA-rated, five-year non-convertible debentures carrying a 7.50% annual coupon, subscribed entirely by Axis Bank and ICICI Bank. Proceeds will refinance existing debt and fund capital expenditure across the trust's project special-purpose vehicles.
Cube Highways raises ₹1,150 crore in AAA-rated NCDs at 7.50%, split between Axis and ICICI Bank.
capital_markets - #15hindu_businesslineneutral
SBI Names New Chief for Karnataka's 1,573-Branch Circle
State Bank of India has appointed Deepak Kaushik as Chief General Manager of its Bengaluru Circle, which spans all 1,573 branches across Karnataka. Kaushik previously served as SBI's Country Head for East Asia, managing international banking operations from the Hong Kong office.
SBI's Bengaluru Circle, its second-largest by business, gets a new chief with international banking experience.
digital_banking