A consolidated view of market events, assembled from diverse sources.
Bandhan Bank's former MD Chandra Shekhar Ghosh emphasizes that microcredit is business credit requiring physical lending and group meetings, while the holding company undergoes its first major restructuring in 25 years to reduce stake and raise capital. The bank's holding company, Bandhan Financial Services, has appointed Jefferies to explore stake sales and capital raising, with plans to reduce the 37% stake to 26% compliance level.
The Reserve Bank of India has cancelled the Certificates of Registration of 13 Non-Banking Financial Companies (NBFCs) under Section 45-IA (6) of the RBI Act, 1934, effective September 2026. Eleven of the cancelled companies are based in West Bengal, with two in Tamil Nadu, while 10 other NBFCs voluntarily surrendered their licences for various reasons including regulatory compliance issues and business restructuring.
The Reserve Bank of India's 25 basis points rate hike to 5.50% has significantly impacted Indian equity markets, with consumption-related sectors like realty, auto, and consumer durables declining up to 1.8%, while Shriram Finance has increased FD rates by up to 40 basis points across tenures. The rate hike comes ahead of the festive season, raising concerns about consumer spending and borrowing costs.
Poonawalla Fincorp delivered exceptional Q2FY27 performance with net profit surging over fivefold to ₹375 crore and total income rising 75.6% year-on-year to ₹2,625 crore, driven by robust operational metrics and improved asset quality. The company demonstrated strong diversification with new products accounting for 28% of disbursements and gross NPAs declining to 1.20% from 1.6% in the previous quarter.
The Reserve Bank of India has granted conditional approval to Japan's Mizuho for acquiring over 60% stake in Avendus Capital Private Ltd for more than $520 million, with a six-month timeline to submit a comprehensive consolidation plan for its other NBFC assets in India. The deal, announced in December 2025, awaits further regulatory clearances and has already received Competition Commission of India approval in April 2026.
Canara Bank has scheduled its Q2 FY27 results announcement for October 14, 2026, with shares rising over 1.5% to ₹120 on positive investor sentiment. Market analysts expect strong credit growth and improved CASA performance during the July-September quarter, building on Q1 FY27 results that showed 2% YoY profit growth to ₹4,856 crore.
Banks are expected to report a nearly 60% decline in treasury income for Q2 FY27 due to rising government bond yields, with 10-year yields climbing 44 basis points to 7.19% during the quarter. While funding conditions have improved with the gap between credit and deposit growth narrowing to 50 basis points, higher crude oil prices and drought conditions in five states pose new risks to asset quality outlook.
Bank of Baroda has entered the pension fund business by receiving its Certificate of Appointment on October 1, 2026, becoming the second public sector bank after SBI to join this segment. The bank has established BoB Pension Fund Management Company Limited with ₹100 crore authorized capital and 80.10% Bank of Baroda shareholding, aligning with PFRDA's strategy to expand pension fund management capabilities across public sector banks.
Muthoot Microfin is launching consumer durable loans ahead of festive season and targets ₹30,000 crore AUM by 2030 under its '30-30 Vision', while CEO Sadaf Sayeed identifies prolonged food inflation as the primary risk affecting microfinance budgets. The company plans to open 30 new branches this financial year and has achieved 50% digital collections with zero delinquency in its ₹4,165 crore individual loans portfolio.
State Bank of India Chairman C S Setty announced that deposit rates are unlikely to increase for the next 2-3 months due to excess liquidity in the banking system, while the bank maintains its loan growth target at 14-15% and expects RBI's rate hikes to benefit net interest margins for up to three quarters. Setty emphasized that the RBI's rate hike combined with SBI's house view will positively impact margins, with the central bank projecting headline inflation to remain above 5.5% for three consecutive quarters starting Q3 FY27.