Banking

In a strategic move signaling a reshaping of its investment priorities, the State Bank of India (SBI) has announced the sale of a 13.19% stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for a total consideration of Rs. 8,888.97 crore. The divestment involves over 413 crore shares, priced at Rs. 21.50 apiece, and is contingent on statutory approvals. This marks a significant shift for SBI, which currently holds a 24% equity stake in Yes Bank.

The Reserve Bank of India (RBI) has levied monetary penalties on Deutsche Bank AG’s India operations and Yes Bank for breaching specific regulatory guidelines. Deutsche Bank was fined Rs. 50 lakh for failing to adhere to norms related to the central repository of large common exposures across banks. Yes Bank, meanwhile, faced a penalty of Rs. 29.60 lakh for lapses in the presentation and disclosure of financial statements. The central bank clarified that the penalties stem from compliance deficiencies and do not reflect on the legitimacy of customer transactions or agreements.

The Reserve Bank of India’s Central Board convened in Mumbai to reassess its Economic Capital Framework (ECF), a critical mechanism guiding the quantum of surplus funds transferred to the government. This review comes at a pivotal time, with expectations mounting for a record-breaking dividend payout—likely to exceed last year’s Rs. 2.1 lakh crore. The final decision will be made at the upcoming board meeting on May 23. As fiscal dynamics tighten and revenue expectations rise, the ECF’s role in balancing financial prudence with fiscal support is under sharper scrutiny than ever before.

Following a robust rally that pushed benchmark indices to seven-month highs, Indian equity markets experienced a moderate correction on Friday, driven primarily by profit-taking in IT stocks and Bharti Airtel. The BSE Sensex fell 200 points, while the NSE Nifty declined by 42 points, as investors locked in gains. Sectoral divergence was notable, with select large-cap stocks retreating even as mid and small-cap indices sustained upward momentum. Global market cues were mixed, with Asian markets mostly subdued and European bourses trading higher.

IndusInd Bank has come under sharp scrutiny from investors after disclosing an internal audit finding of unsubstantiated balances amounting to Rs. 595 crore in its “other assets” category. Following a whistleblower complaint, the bank’s Internal Audit Department (IAD), under the direction of the Audit Committee, uncovered and subsequently adjusted these balances against corresponding “other liabilities” in January 2025. The revelation sent the bank’s shares tumbling nearly 6% on the BSE. The IAD report also flagged potential accountability issues among senior employees.

Indian equity benchmarks opened lower on Friday as investors locked in profits following a strong rally in the previous session. The BSE Sensex dropped over 250 points in early trade, while the NSE Nifty fell below the 25,000-mark. The decline was largely driven by losses in heavyweight IT stocks and subdued sentiment across Asian markets. While select stocks such as Adani Ports and NTPC offered some support, the broader market reflected caution. This pullback follows a sharp two-day surge driven by robust institutional buying and favorable global cues.

South Indian Bank posted a robust financial performance in the fourth quarter of the fiscal year 2024–25, recording a 19% year-on-year increase in net profit to Rs. 342 crore. The Kerala-headquartered lender also saw its total income grow significantly during the period, reflecting a sound operational strategy and improved asset quality. For the full fiscal year, net profit expanded by 22% to Rs. 1,303 crore. Riding on these solid results, the bank’s board has proposed a dividend of Rs. 0.40 per equity share.

ndia’s equity markets witnessed a remarkable resurgence on Thursday, with the benchmark BSE Sensex soaring by 1,200.18 points, marking a seven-month high at 82,530.74. The NSE Nifty breached the psychologically significant 25,000 level, closing at 25,062.10 for the first time since October 2024. This rally was fueled by across-the-board buying across key sectors, including banking, automobile, IT, and oil & gas, alongside fresh inflows from foreign institutional investors.

In a strategic move reflecting sustained confidence in India’s public sector banking sector, Life Insurance Corporation of India (LIC) has increased its shareholding in Bank of India (BoI) to 8.38% as of May 9, 2025. The country’s largest insurer gradually acquired an additional 2.026% stake in BoI over nearly four years, boosting its holding from 6.35%. The transaction underscores LIC’s broader investment strategy, which frequently emphasizes long-term positions in state-backed institutions.