6 October 2026
Bankopedia Banking Digest — 2026-10-06 #188
- #1economic_timesneutral
NBFCs Lead Small-Ticket Credit With Improving Quality
Non-banking financial companies (NBFCs) dominate small-ticket lending in India, originating 47% of loans below ₹2 lakh as of June 2026, while delinquency rates remain contained. Credit monitoring among NBFC customers has surged to 48% from just 3% in 2018, contributing to improved asset quality across the segment.
NBFCs originate 47% of sub-₹2 lakh loans; credit monitoring rises sharply to 48%.
financial_inclusioncredit_markets - #2hindu_businesslineneutral
RBI Drains Liquidity Ahead of Rate Decision
The Reserve Bank of India (RBI) announced a ₹2.50 lakh crore overnight variable rate reverse repo (VRRR) auction on October 6, a day before the Monetary Policy Committee's rate decision, signalling preparation for a repo rate hike. Banking system liquidity stands at an elevated surplus of ₹5,15,659 crore, driven by dollar-rupee forex swap settlements.
RBI's ₹2.50 lakh crore VRRR auction signals imminent repo rate hike on October 7.
monetary_policy - #3economic_timesneutral
Finmin Reviews Financial Inclusion Progress With Banks
The Finance Ministry will meet bank heads on Tuesday, chaired by Financial Services Secretary Sanjay Lohiya, to review progress of flagship financial inclusion schemes including PM Mudra Yojana, PMJJBY, and PMSBY. The session will assess outreach of collateral-free lending and insurance cover programmes targeting micro enterprises, youth, and women.
Finance Ministry reviews financial inclusion schemes, including PM Mudra Yojana, with bank chiefs.
financial_inclusion - #4economic_timesneutral
Bajaj Finserv Taps GIC Re Veteran for Reinsurance Push
Bajaj Finserv is set to appoint former General Insurance Corporation of India (GIC Re) chairman and managing director Narayanan to lead its new reinsurance subsidiary, pending regulatory approvals from the Insurance Regulatory and Development Authority of India (IRDAI). Narayanan brings over three decades of reinsurance experience across non-life classes and international markets.
Bajaj Finserv recruits ex-GIC Re chief to head its new reinsurance subsidiary.
insuranceregulation - #5economic_timespositive
PNB Cuts Retail Loan Costs for Festive Season
Punjab National Bank (PNB) has launched its festive season retail lending campaign 'PNB Utsav Festivities 2026', offering full waivers on processing fees for home and car loans alongside a 5 basis point concession on home loan card rates. The campaign targets increased retail credit uptake across home, car, and personal loan segments during the festival period.
PNB waives processing fees on home and car loans with a 5 bps rate concession this festive season.
corporate_finance - #6economic_timesneutral
GST Council Eyes Zero-Rating for Branch-Routed Exports
The GST Council's 57th meeting is set to consider removing the condition that bars Indian firms from claiming zero-rated export status when services are routed through their overseas branch offices. The move aims to align the export definition with actual foreign-exchange-earning structures and reduce litigation for Indian service exporters.
GST Council may remove the same-establishment bar, granting zero-rated status to branch-routed service exports.
regulation - #7moneycontrolneutral
Jane Street Cites SEBI's Own Surveillance Note at SAT
Jane Street Group told the Securities Appellate Tribunal that the Securities and Exchange Board of India's own surveillance team found no clear evidence of Bank Nifty manipulation months before SEBI issued its July 2025 ex-parte order. Defence counsel argued that 48 of 53 trading patches examined showed no link between Jane Street's stock trades and favourable derivatives price movements.
SEBI's internal surveillance note reportedly recommended dropping the Jane Street manipulation inquiry before the ban order.
regulationcapital_markets - #8hindu_businesslineneutral
RBI Holds Rupee Steady Amid Dollar and Oil Surge
The Indian rupee closed virtually unchanged at 96.2925 per dollar on Monday, as Reserve Bank of India intervention offset headwinds from a near 17-month-high dollar and crude oil prices nudging $103 per barrel. Persistent importer hedging and exporter reluctance continue to keep the currency under structural pressure.
RBI intervention shields the rupee near record lows as dollar strength and $103 oil intensify pressure.
forexmonetary_policy - #9hindu_businesslineneutral
India's Capex Revival Bypasses Manufacturing Sector
New project announcements in India surged 34.7% year-on-year to ₹30.4 trillion in the first half of FY27, driven by IT and electricity projects, though manufacturing capital expenditure fell sharply. RBI Governor Sanjay Malhotra cautioned that prolonged financial stability can mask the build-up of leverage and hidden vulnerabilities.
India's investment rebound is power- and IT-led; manufacturing capex fell 22.4% YoY in H1FY27.
capital_markets - #10reserve_bank_of_indianeutral
RBI Extends Jalna Co-operative Bank Restrictions Further
The Reserve Bank of India has extended regulatory directions on Motiram Agrawal Jalna Merchants Co-operative Bank for a further three months, from October 10, 2026, to January 10, 2027, after the original six-month directive lapsed. The RBI explicitly noted that the extension does not imply satisfaction with the bank's financial position.
RBI extends restrictions on Jalna Merchants Co-operative Bank by three months to January 2027, subject to review.
banking_supervisionregulation - #11hindu_businesslineneutral
Rangarajan Urges GST Exemption on UPI MDR
Former Reserve Bank of India Governor C Rangarajan has urged the GST Council to exempt any new UPI merchant discount rate (MDR) on transactions above ₹2,000 from Goods and Services Tax. While acknowledging UPI as a public good, Rangarajan argues that levying a service charge is legitimate but should not trigger an additional GST burden.
GST Council should explicitly exempt UPI MDR charges from Goods and Services Tax, Rangarajan urges.
paymentsdigital_banking - #12moneycontrolpositive
Six SME IPOs Close With Modest Investor Interest
Six small and medium enterprise companies closed their initial public offerings on October 5, with subscription levels ranging from one to two times across all issues. Share allotments are expected by October 6, with most stocks set to list on the BSE SME platform on October 8.
Six SME IPOs close with modest one-to-two times subscription; listings expected October 8.
capital_marketsfinancial_inclusion - #13moneycontrolnegative
ESDS Software Slides Six Sessions After Lock-In Expiry
ESDS Software Solution shares extended their losing streak to six consecutive lower circuit hits of 5 percent each, coinciding with the expiry of a one-month shareholder lock-in period that frees up approximately 2.5 million shares for trading. The stock had listed at a 76 percent premium to its issue price of ₹429 on September 4 and had initially doubled before the sustained sell-off.
ESDS Software hits 5% lower circuit for six straight sessions as lock-in period expires.
capital_markets - #14financial_expressneutral
Kacholia's Top 2026 Portfolio Picks Under Scrutiny
The article profiles investor Ashish Kacholia, known as the 'Big Whale', and examines his top three performing portfolio stocks in 2026. It cautions retail investors to conduct independent due diligence rather than simply mirroring prominent investors' holdings.
Ashish Kacholia's top 2026 picks highlight small and mid-cap growth opportunities worth independent research.
capital_markets - #15sebinegative
SEBI Pursues Recovery in Front-Running Matter
The Securities and Exchange Board of India (SEBI) has issued a General Remittance Advice against Surbhi Aggarwal under Recovery Certificate No. 9264 of 2026 in connection with a front-running case involving Navnit Gadoya, Surbhi Aggarwal, and Chiranggi Irish Shah. The enforcement action signals SEBI's continued pursuit of dues from individuals implicated in market manipulation proceedings.
SEBI issues recovery notice against Surbhi Aggarwal in front-running case under Certificate No. 9264.
regulation