Dheeraj Tiwari

The government has finalised Fairfax Holdings for the sale of its stake in IDBI Bank after the Canadian firm sweetened its offer, people aware of the development said.

Banks face challenges extending collateral-free loans up to twenty lakh rupees. Some accounts are not covered by the government guarantee scheme for small firms. Many borrowers are unwilling to pay additional guarantee fees for these loans. Lenders plan to approach the government and RBI regarding these issues. This situation impacts credit access for micro and small enterprises.

Punjab National Bank is seeking a partner for its merger and acquisition financing portfolio. The bank aims to gather $2.5 billion in special FCNR(B) deposits and has already mobilized funds. Its corporate loan book is projected to exceed four lakh crore rupees this fiscal year. PNB is actively focusing on renewable energy and emerging sectors like hydrogen capacity.

Punjab & Sind Bank is setting ambitious goals, aiming for a staggering ₹4 lakh crore in business by the fiscal year 2028-29. The bank projects a healthy credit growth ranging from eighteen to twenty percent for the current year. To bolster its growth, it is investing in digital transformation projects aimed at enhancing digital lending capabilities and account acquisition strategies.

Indian banks are identifying twenty-five original equipment manufacturers for AI risk mitigation partnerships. A working group is developing a framework to identify and strengthen safeguards against cyberattacks. Banks will reduce network attack surface area by deploying defensive AI agents. Internal controls may not prevent exposure through weak vendors or third-party components. Vulnerabilities in embedded code can spread flaws across multiple financial institutions.

The government plans a nationwide push to expand education lending significantly. Faster approvals and campus outreach will improve student access to finance. Banks will organize camps for on-the-spot loan sanctions at many institutions. Credit guarantee cover for collateral-free loans is also being considered. This initiative aims to ease financial burdens for students pursuing higher education.

Financial regulators are exploring adding insurance surety bond exposures to a central credit database. This move aims to provide banks and rating agencies a clearer view of corporate leverage. Currently, these contingent liabilities often escape regulatory reporting requirements. Many government departments now accept these bonds instead of traditional bank guarantees. Expanding the database will strengthen credit appraisal processes for lenders.

Indian banks have sought RBI approval to spread mark-to-market losses on investment portfolios across the remaining three quarters, citing bond-market volatility triggered by the West Asia crisis. Rising government bond yields have weighed sharply on banks treasury income.

Indian banks have sought RBI approval to spread mark-to-market losses on investment portfolios across the remaining three quarters, citing bond-market volatility triggered by the West Asia crisis.

A parliamentary committee suggests a self-reliant revenue model for UPI's financial sustainability. Amendments to the Payment and Settlement Systems Act now permit transaction charges on digital payments. The committee noted a significant funding gap between allocations and operational costs. Future merchant discount rate charges will be nominal and apply to limited high-value transactions.