Saloni Shukla

India's private banks saw fresh lending spreads widen sharply in July as FCNR(B) inflows improved liquidity and reduced reliance on expensive wholesale funding.

Mumbai: The Reserve Bank of India is exploring gold as the next asset class for tokenisation , as it looks to expand its Unified Markets Interface

Axis Bank CEO Amitabh Chaudhry expects India's bank credit growth to moderate to 15-16% this year from the current 18-19%, partly due to the base effect and FCNR(B) inflows. He also warned of possible rate hikes in October and December as the India-US interest-rate gap narrows.

Recent foreign currency deposits could provide a short-term uplift to the growth patterns in bank lending. With the narrowing of differentials, it's anticipated that domestic interest rates will rise soon. The banking sector is poised for accelerated consolidation in the upcoming years, favoring larger banks that leverage scale and technological innovation. In this landscape, Axis Bank is gearing up to implement AI-driven strategies to enhance customer engagement.

The National Housing Bank raised concerns over SRG Housing Finance, identifying potentially fictitious loan accounts. Investigations have revealed that around one-third of the lender's loan portfolio consists of these phantom accounts. The inquiry also indicated possible manipulation regarding non-performing assets and the practice of evergreening. Funds linked to these dubious accounts were allegedly redirected to promoters' entities. This issue surfaces amid heightened scrutiny on smaller housing finance firms.

The National Housing Bank raised concerns over SRG Housing Finance, identifying potentially fictitious loan accounts. Investigations have revealed that around one-third of the lender's loan portfolio consists of these phantom accounts. The inquiry also indicated possible manipulation regarding non-performing assets and the practice of evergreening. Funds linked to these dubious accounts were allegedly redirected to promoters' entities. This issue surfaces amid heightened scrutiny on smaller housing finance firms.

HDFC Bank has won all seven Bahrain cases filed by Credit Suisse AT1 bond investors, who accused the lender of mis-selling the risky securities.

State Bank of India anticipates deploying foreign currency deposits over three months. The bank is enhancing artificial intelligence adoption across key operational areas. Agentic AI will perform tasks autonomously, improving efficiency and risk management. This technology aims to extend personalized financial advice to millions of customers. Stronger controls and human oversight will guide AI's increasing financial participation.

By 2027, leadership transformations are set to take place across several key Indian banks, with HDFC Bank and Kotak Mahindra Bank leading the way. This wave of changes creates a competitive landscape for experienced banking professionals. It is vital for the boards to ensure they maintain continuity while injecting innovative strategies. As a result, succession planning has emerged as an essential concern for bank leadership.

HDFC Bank has won all seven cases filed against it in Bahrain by investors in the Credit Suisse AT1 bonds matter, providing the lender relief from a key legal overhang arising from allegations of misselling of the high-risk securities.