Top Indian Banking Industry News & Updates - 24 March 2026,Tuesday

🗎 RBI / MoF / Govt. Policies

RBI flags higher global growth risks, Forex reserves enough to cushion external shocks
The military conflict in the Middle East, triggered by joint US and Israeli strikes on Iran, coupled with fresh US trade investigations, has increased volatility in global financial markets, the Reserve Bank of India (RBI) said on Monday. The central bank, in its State of the Economy report, said that a prolonged period of war and high uncertainty would pose serious risks to the global economic outlook, “which was already in a state of flux prior to the recent events.” It, however, noted that India’s foreign exchange reserves remain adequate to cushion against external shocks.
RBI may closely scrutinise HDFC Bank’s application for term renewal of its CEO
The dramatic exit last week of Atanu Chakraborty as Part-Time Chairman of HDFC Bank may prompt the Reserve Bank of India (RBI) to take a long, hard look when the Bank makes an application for a third term for its MD & CEO, Sashidhar Jagdishan.
RBI veteran Jose Kattoor appointed South Indian Bank’s Non-Executive Part-Time Chairman
South Indian Bank (SIB) has appointed Jose Joseph Kattoor as the Non-Executive Part-Time Chairman (Independent Director) of the Bank, effective March 23, 2026, for three years.
RBI injects ₹79,256 crore into banking system via overnight VRR auction
Mumbai: The Reserve Bank of India (RBI) on Monday infused ₹79,256 crore transient liquidity into the banking system through overnight variable rate (VRR) auction.
RBI steps back on forex intervention as war bites
Mumbai: After having aggressively defended the rupee earlier this month, the Reserve Bank of India (RBI) is now easing back from intervention as the escalating West Asia conflict roils global markets and constrains its policy options, four economists said.
RBI in talks with central banks of four to five countries on CBDC
 
Outward remittances under RBI's LRS decline 3.19% in January 2026
 
Banking liquidity turns deficit in 2026 on tax outflows, weak RBI support
 
West Asia war, fresh US trade probes fuel market volatility: RBI bulletin
 
RBI bought $2.5 billion in January on a net basis, shows bulletin
 
Gold loan industry body seeks six-month deferment of RBI's new norms
 
Evolving geopolitical situation requires close monitoring: RBI bulletin
 
📝  No proposal under consideration on merger of PSU banks: MoS Finance
📝  SWAMIH Fund II rollout underway, Rs 15,000 crore boost for stalled housing, says Nirmala Sitharaman
📝  SWAMIH Fund II rollout underway, Rs 15,000 crore boost for stalled housing, says Nirmala Sitharaman
📝  RBI releases meeting schedule of the Monetary Policy Committee for 2026-2027
📝  India better placed to absorb shocks: RBI Bulletin
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🏦 PSB / Pvt Banks

Credit Suisse AT1 bond crash may have fuelled HDFC Bank leadership crisis
Shortly before midnight on the eve of a bank holiday in India, HDFC Bank Ltd., a favorite among global investors, stunned the market by announcing the abrupt exit of its chairman. One line in the statement jumped out: Atanu Chakraborty resigned over “ethical” differences with the bank going back two years.
HDFC Bank appoints external law firms to review Atanu Chakraborty's resignation letter — ‘Did not mention…’
Private lender HDFC Bank on Tuesday said it was appointing external law firms to conduct a review into the resignation letter of former part-time chairman Atanu Chakraborty.
ICICI Bank’s Loan growth picks up
ICICI Bank's loan growth momentum remains healthy and increasingly diversified. Domestic advances grew approximately 11.5% year-on-year in the third quarter of FY26, compared with 9.3% growth in the first nine months of the financial year to date. Growth has been driven by strong performance in business banking, which expanded by nearly 22.8% y-o-y, alongside improving trends in secured retail lending and corporate credit.
HDFC Bank stock plunges to a fresh 52-week low
HDFC Bank’s stock continued to take a beating, plunging to a fresh 52-week low of ₹740.95 apiece on Monday, with trading sentiments negatively influenced by the abrupt resignation of Part-Time Non-Executive Chairman Atanu Chakraborty last week. In his resignation letter, Chakraborty flagged certain happenings and practices within the bank that were not in congruence with his personal values and ethics.
ICICI Bank to prioritise stable liability base to support growth: Report
For ICICI Bank, India’s second-largest private sector lender, liabilities will be a key focus area going forward, with an emphasis on building a more stable liability base, while remaining open to selectively accessing wholesale funding, including certificates of deposit (CDs) and other wholesale deposits, to support growth, Motilal Oswal said in a report following interaction with the bank’s management.
IDFC First Bank fraud: Three accused bankers paid crores to top Chandigarh Smart City, CREST officials, police inform court

The police claimed that Ribhav Rishi created the shell firms with the connivance of Nalini Malik, Chief Accounts Officer, Smart City Project, Narender Pal Sharma, Chief Executive Manager of Smart City Project and MC official, and Sukhwinder Singh, Project Director, CREST.
Is your SBI YONO account at risk? Govt warns on Aadhaar update scam
 
Fino fallout prompts fintech firms to seek safe harbour, tighten controls
 
Sebi to look into HDFC board meeting's minutes after chairman's exit
 
AU Small Finance Bank strengthens its digital banking with an enhanced savings ecosystem
 
IDBI Bank shares fall 7% as govt mulls OFS route to pare stake
 
📝  BoB system error inflates EMIs, hits borrower scores
📝  Bad bank framework set for overhaul with NARCL-IDRCL merger
📝  Kotak Mahindra Bank to buy Deutsche's India retail business in 45 billion-rupee deal
📝  Sebi on HDFC Bank issue: Insinuations without evidence should not be made
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🏦 Co-operative Banks / RRBs

Karnataka Grameena Bank bags award for rural economic empowerment
 
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🏦 Foreign Banks / FIIs / I-Banks

FPI selling surpasses ₹1 trillion mark in March amid West Asia crisis
 
BlackRock CEO flags inequality risks, calls for broader market access in annual letter
 
📝  LetzRyd raises $4 million led by JIF Capital to scale fleet platform
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🏠 Housing Finance

Nestavia Home Finance launches mobile app for loan servicing
Nestavia Home Finance has unveiled a mobile application, ‘NestCFirst’ to simplify and streamline loan servicing. 
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💳 ATMs / Credit Cards

ATM rule changes from April 1: UPI withdrawals, limits, fees reset
 
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🔍 Rating / Research

📝  Proactive steps needed to limit adverse spillovers of Iran war: RBI report
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🗎 NBFCs / FIs / MFI

Will the credit guarantee scheme 2.0 fix microfinance’s funding freeze?
The government has launched a ₹20,000 crore credit guarantee scheme for microfinance institutions to revive lending in the microfinance sector, which has been hit by a prolonged period of stress. The move is aimed at restoring lender confidence and improving credit flow to small borrowers. What does it mean for the sector. Mint explains.
📝  Svatantra Microfin completes merger with Chaitanya India Fin Credit, becomes India's no. 2 NBFC-MFI
📝  Tata Capital faces Rs 413 cr tax demand for FY2017-18
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UPIs / Wallet / FinTech

Razorpay, Sarvam partner to power voice-first commerce; Swiggy among early adopters
India’s digital commerce could soon move beyond screens to conversations, as Razorpay partners with Sarvam AI to enable voice-led, multilingual transactions, with Swiggy among the first to pilot the experience.
Bank of Baroda's UPI overdraft facility to empower women self-help groups
Bank of Baroda has introduced an overdraft (OD) facility on Credit Line via UPI for verified women Self-Help Group (SHG) members, becoming the first bank in the country to operationalise such a feature, it said in a recent press release.
Digital payments to see new safety rules from April 1: What changes
 
Paytm's merchant platform to be largest in India across online, offline channels, says Jefferies
 
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🧔 Brokers / Distributors

Sebi eases reporting norms for brokers, reduces compliance burden
The Securities and Exchange Board of India (Sebi) has relaxed certain reporting requirements for stockbrokers and depository participants.
Vinay Rajani of HDFC Sec suggests Indusind Bank, REC shares to sell in the near-term
The domestic benchmark indices, Nifty 50 and Sensex, fell and the rupee reached an all-time low on Monday, reflecting a widespread risk-averse sentiment across Asia as rising tensions in the Middle East kept oil prices high and heightened worries over economic growth and corporate earnings forecasts.
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🗠 Mutual Funds / AMCs

Nikhil Kamath, Quant MF & Bank of India back Swan Defence’s OFS; estimated ₹500 cr raised
Marquee investors, including Nikhil Kamath, the co-founder of Zerodha and Quant Mutual Fund, one of India’s leading asset managers, anchored the Offer for Sale (OFS) in Mumbai-based Swan Defence and Heavy Industries Limited (SDHI), with the company’s promoters’ raising an estimated ₹500 crore.
Regulator proposes gift cards for MF investments
Markets regulator SEBI on Monday proposed allowing gift cards or gift prepaid payment instruments (PPIs) for mutual fund investments to improve financial inclusion through onboarding new investors, according to a consultation paper on its website.
ICICI Prudential Mutual Fund raises stake in this healthcare stock
In a sign of confidence, ICICI Prudential Mutual Fund raised its stake in Rainbow Childrens Medicare, one of the country's leading pediatric multi-specialty and perinatal care hospital chains to over 5%.
Better than FDs? This low-risk debt fund has clocked 7.3% for last 21 years
 
SEBI cuts minimum investment in social impact funds to ₹1,000 to boost retail participation
 
HDFC Bank sell-off wipes out ₹50,000 crore from mutual fund assets
 
📝  Zerodha Fund House launches Nifty MidSmallcap400 50:50 Index Fund
📝  Midcap, smallcap mutual funds see AUM growth in 5 years, but near-term risks remain elevated: ICRA Analytics
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🗎 Govt. Securities / Bonds

RBI’s pile-up of government bonds is extraordinary but could it help build infrastructure?
The Reserve Bank of India’s (RBI) balance sheet shows that the amount of government paper (including treasury bills) held as on 28 February was ₹21.34 trillion. It was ₹15.58 trillion in March 2025.
High bond yields may take a toll on NBFC earnings
Mumbai: The Non-Banking financial companies (NBFC) sector is facing renewed turbulence as the West Asia conflict has driven bond yields higher, eroding margin expansion and increasing funding costs.
Indian 10-year bond yield tops 6.8% amid crude oil price rally on US-Iran war
Meanwhile, the Indian rupee weakened to a fresh record low of 93.94 against the US dollar. The greenback strengthened as escalating US-Iran war dampened global risk appetite and boosted demand for safe-haven assets.
Insurers boost state bond derivatives

Indian insurers are turning to state government bonds for a popular derivatives trade, locking in higher yields amid record provincial debt supply.
SIDBI withdraws bond issue; Indian, Union Bank raise ₹8,000 crore
 
Indian Bank raises ₹5,000 crore through 10-year infra bond at 7.15%
 
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