Banking

State-owned Indian Bank has successfully raised Rs 5,000 crore through a 10-year long-term infrastructure bond issuance at a coupon rate of 7.15 percent, underscoring robust investor appetite for high-quality debt instruments. The offering attracted multiple competitive bids, reflecting confidence in the bank’s credit profile and India’s infrastructure growth trajectory. 

India’s benchmark equity indices ended modestly higher after a volatile trading session, with the Sensex and Nifty gaining around 0.5 per cent. Early optimism drove sharp intra-day rallies, but gains were pared as concerns over rising fuel-driven inflation tempered investor sentiment.

HDFC Bank witnessed a sharp decline in its share price following the sudden resignation of its chairman, Atanu Chakraborty, who stepped down citing ethical concerns. The development unsettled investor sentiment, leading to a steep erosion in market capitalization and dragging benchmark indices lower. The stock fell to its 52-week low, reflecting heightened uncertainty around governance and leadership continuity.

The Reserve Bank of India (RBI) has announced an overnight variable rate repo (VRR) auction worth Rs 1 lakh crore, scheduled for March 23, as part of its ongoing liquidity management strategy. The move aims to address evolving liquidity conditions within the banking system by enabling banks to access short-term funds efficiently. The auction window will remain open for a limited duration, with funds set to be reversed the following day.

State-owned Bank of Baroda has introduced an innovative credit facility on the Unified Payments Interface (UPI), enabling members of women self-help groups (SHGs) to access instant overdrafts digitally. Linked to Prime Minister Jan Dhan Yojana accounts, the initiative allows eligible customers to avail up to Rs 5,000 without visiting a bank branch and use the credit seamlessly for merchant payments. 

HDFC Bank has taken decisive action by terminating three senior officials following compliance lapses at its Dubai International Financial Centre (DIFC) branch. The move comes in the wake of regulatory scrutiny over alleged mis-selling of complex financial instruments and deficiencies in client onboarding procedures. The development follows the recent resignation of the bank’s chairman, intensifying concerns around governance standards. 

HDFC Bank faced an unexpected governance development as former chairman Atanu Chakraborty stepped down citing ethical concerns, triggering uncertainty among investors and stakeholders. The bank’s leadership, led by CEO Sashidhar Jagdishan, has sought to reassure markets, emphasizing institutional stability and denying any systemic issues. Board members expressed surprise at the resignation, noting the absence of detailed allegations.

Axis Bank has approved a capital infusion of Rs. 1,500 crore into its wholly owned subsidiary, Axis Finance Ltd, through a rights issue to be executed in phases by March 31, 2027. The investment, cleared by the Reserve Bank of India, is aimed at supporting business expansion and strengthening the non-banking financial company’s balance sheet. With growing demand for diversified credit solutions, the move reflects Axis Bank’s strategic emphasis on scaling its NBFC operations to capture emerging lending opportunities and enhance long-term revenue streams.

India’s banking sector has written off loans worth Rs. 9.75 lakh crore over the past 11 financial years, reflecting a prolonged effort to clean up stressed balance sheets. The write-offs peaked in FY20 at Rs. 1.59 lakh crore before gradually declining to Rs. 47,568 crore in FY25. Financial authorities emphasize that loan write-offs do not absolve borrowers of their repayment obligations; banks continue recovery efforts through legal and asset reconstruction mechanisms. 

India’s benchmark equity indices rebounded strongly on Monday after three consecutive sessions of sharp declines, driven by renewed investor interest in blue-chip banking stocks. The BSE Sensex climbed 938.93 points, or 1.26 percent, to close at 75,502.85, while the NSE Nifty rose 257.70 points, or 1.11 percent, ending the day at 23,408.80. Market participants engaged in value-buying after the recent correction, particularly in large-cap companies.