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A sharper focus on current account savings account (CASA) deposits and medium-yield assets is expected to improve net interest margin (NIM). However, this transition, coupled with sector-wide pressures on margins and deposit mobilization, could weigh on near-term performance. Read more at: https://bfsi.economictimes.indiatimes.com/news/banking/federal-banks-transformation-plan-what-it-means-for-investors/118569747?utm_source=top_story&utm_medium=homepage

The Department of Investment and Public Asset Management (Dipam) has invited bids from merchant bankers and legal advisers to facilitate stake sales over the next three years. Read more at: https://bfsi.economictimes.indiatimes.com/news/banking/which-psu-banks-may-see-stake-sale-by-govt/118570306?utm_source=copy&utm_medium=pshare

HDFC Bank’s credit card spending market share fell by 80 basis points (bp) MoM due to volatile online spending, despite its stronghold in the PoS segment. Meanwhile, SBI Cards and ICICI Bank gained 70bp and 80bp, respectively, benefiting from their dominance in online transactions. Read more at: https://bfsi.economictimes.indiatimes.com/news/banking/credit-card-spending-slows-down-in-january-asset-quality-concerns-persist/118590242?utm_source=top_story&utm_medium=homepage

In January 2025, outstanding loans across scheduled banks grew by 11 per cent year-on-year, reaching Rs 179.7 trillion, showed slight uptick month-on-month basis compared to Rs 177.4 trillion in December 2024. Deposits also climbed by 10 per cent YoY to Rs 223.3 trillion, again showing a trend of month-on-month increase from Rs 220.6 trillion in December. Non-cash retail transactions saw a 16 per cent YoY increase. Read more at: https://bfsi.economictimes.indiatimes.com/news/banking/monthly-credit-report-11-uptick-in-overall-outstanding-loans-in-january-2025/118560246?utm_source=copy&utm_medium=pshare

Total debit card transactions by both volume and value have witnessed a downfall in January 2025, on a year on year basis, while credit card transactions have witnessed an uptick in both volume and value. Here's what data suggests: Read more at: https://bfsi.economictimes.indiatimes.com/news/banking/debit-cards-transaction-volume-slumps-by-5-credit-cards-witness-uptick-in-jan-25/118557036?utm_source=copy&utm_medium=pshare

Aditya Birla Capital, which has also cut back on fintech-linked personal loans, expects credit costs to decline in the coming quarters, while Mahindra Finance has stabilised its asset quality after a recent rundown of expected credit losses. Read more at: https://bfsi.economictimes.indiatimes.com/news/nbfc/nbfcs-likely-to-see-asset-quality-gains-bajaj-finance-shriram-muthoot-well-positioned/118590347?utm_source=copy&utm_medium=pshare

Market Regulator Securities and Exchange Board of India (SEBI) gets its new chairman as Tuhin Kanta Pandey, currently Finance Secretary and Secretary of the Department of Revenue. Pandey succeeds Madhabi Puri Buch whose three year tenure concludes on March 01, 2025, also made history as the first woman to lead SEBI. Read more at: https://bfsi.economictimes.indiatimes.com/news/policy/finance-secretary-tuhin-kanta-pandey-appointed-as-sebi-chairman-for-three-years/118611766?utm_source=top_story&utm_medium=homepage

Lower risk weights will release more bank capital, but policy transmission will take more time, says Nomura. Read more at: https://bfsi.economictimes.indiatimes.com/news/policy/will-rbis-risk-weight-relaxation-revive-credit-growth/118590189?utm_source=top_story&utm_medium=homepage

The RBI has rolled back the 25-percentage-point hike in risk weights on bank exposures to NBFCs, restoring them to external rating-based levels. Effective April 1, 2025. Experts believe that this is expected to boost bank credit growth in FY26. Additionally, the reduction in risk weights for microfinance loans will improve banks' appetite for lending in this segment, though near-term growth may remain subdued due to asset quality challenges. Read more at: https://bfsi.economictimes.indiatimes.com/news/policy/rbi-restores-risk-weights-on-bank-exposures-to-nbfcs-to-pre-november-2023-levels/118561829?utm_source=copy&utm_medium=pshare

SBI and HDFC Bank continued to dominate the debit cards and credit cards market shares respectively, in January 2025. In terms of Year-on-Year growth, in the debit cards segment, Axis Bank and HDFC Bank recorded the highest growth at 15 per cent and 9 per cent respectively while in the credit cards segment, Bank of Baroda witnessed the highest growth at 28 per cent with Kotak Mahindra’s annual growth declining by 16 per cent. HDFC Bank’s credit card market share increased to 22 per cent this month. Read more at: https://bfsi.economictimes.indiatimes.com/news/banking/hdfc-bank-tops-credit-card-market-sbi-leads-in-debit-cards-as-of-jan-25/118553236?utm_source=copy&utm_medium=pshare