Banking News for June 2026
Bank of Maharashtra Q4 profit jumps 35%
Bank of Maharashtra reported a 35% year-on-year rise in net profit to Rs. 2,014 crore for the fourth quarter of FY26, driven by strong loan growth and lower provisions.
For the full financial year, the bank posted a net profit of Rs. 7,019 crore, up 27% over FY25. Retail, agriculture and MSME advances grew 21%, led by a sharp 32% increase in retail loans.
Net interest income rose 19% to Rs. 3,702.5 crore, while total deposits increased 14% to Rs. 3.5 lakh crore. The bank also announced plans to raise up to Rs. 7,500 crore through equity and debt, along with Rs. 10,000 crore via infrastructure bonds in FY27.
Management expects credit growth of around 18% and deposit growth of 14–15% in the current fiscal.
Union Bank posts steady rise in quarterly profit
Union Bank of India reported a 6.6% year-on-year increase in net profit to Rs. 5,316 crore for the quarter ended March 31, supported by lower operating expenses and improved asset quality.
For FY26, the bank’s annual net profit rose nearly 4% to Rs. 18,697 crore compared to Rs. 17,987 crore in the previous year.
The performance reflects continued improvement in operational efficiency and balance sheet quality, despite a challenging interest rate environment. Analysts noted that better control over costs and moderation in bad loans helped support profitability during the quarter.
The results also indicate stable business momentum for the lender amid strong competition across the banking sector.
Government says IDBI Bank disinvestment process will continue
Finance Minister Nirmala Sitharaman clarified that the disinvestment process of IDBI Bank Limited will continue despite reports suggesting that the proposed stake sale had been shelved.
The government plans to divest a 30.48% stake in the bank, while Life Insurance Corporation of India intends to sell 30.24%. Following the clarification, IDBI Bank shares gained sharply during trading.
The minister also indicated that a committee is examining whether banks should continue exclusive distribution tie-ups for financial products or move toward an open architecture model.
The disinvestment is seen as an important step in the government’s broader banking sector reforms and capital recycling strategy.
Paytm Payments Bank closure leaves thousands uncertain
The cancellation of Paytm Payments Bank Limited’s licence by the Reserve Bank of India has created uncertainty for around 66,000 business correspondents and over 700 employees associated with the bank.
The RBI revoked the licence citing non-compliance with provisions of the Banking Regulation Act. The move has reignited concerns about the long-term viability of the payments bank model, which was originally designed to promote financial inclusion and digital banking access.
Payments banks are allowed to accept deposits and facilitate digital transactions but cannot undertake lending activities. Industry observers believe the development could prompt a reassessment of the differentiated banking framework and its sustainability.
RBI eases reporting norms for delayed credit card payments
The Reserve Bank of India has amended credit card regulations, stating that card issuers can classify an account as “past due” or levy penal charges only if dues remain unpaid for more than three days after the due date.
The central bank clarified that late payment charges must be calculated only on the overdue amount and not on the total outstanding balance. However, the number of “days past due” will still be counted from the payment due date mentioned in the statement.
The move is aimed at improving transparency and reducing excessive penalty burdens on cardholders. It is also expected to ensure fairer reporting practices by banks and card issuers while strengthening customer protection in the retail credit segment.
Bank of Baroda targets doubling balance sheet in five years
Bank of Baroda plans to double its balance sheet over the next five years by leveraging India’s economic growth, expanding fee-based businesses and strengthening overseas operations.
CEO Debadatta Chand said larger balance sheets are essential for Indian banks to compete globally and support large infrastructure and industrial projects. The lender’s total assets have already grown nearly 75% over the last five years to around Rs. 21 trillion.
The strategy aligns with the broader objective of building globally competitive Indian banks through scale, capital strength and consolidation. Bank of Baroda remains one of the fastest-growing major public sector banks in terms of asset expansion.
IndusInd Bank returns to profit in Q4 FY26
IndusInd Bank Limited reported a net profit of Rs. 594 crore for the quarter ended March 2026, recovering from a loss of Rs. 2,329 crore in the corresponding quarter last year.
The turnaround was supported by lower provisions and controlled slippages after the bank had earlier disclosed accounting discrepancies in its derivatives portfolio.
However, for the full financial year FY26, net profit fell sharply to Rs. 889 crore compared with Rs. 2,575 crore in FY25, reflecting the impact of earlier setbacks.
The results indicate gradual stabilisation in the bank’s operations, though profitability remains below historical levels.
DCB Bank Q4 profit rises 16% on better asset quality
DCB Bank Limited reported a 16% year-on-year increase in net profit to Rs. 206 crore for the quarter ended March 2026.
Total income rose to Rs. 2,119 crore, supported by higher interest income, which increased to Rs. 1,907 crore during the quarter.
The bank also reported improvement in asset quality, with gross non-performing assets declining to 2.45% from 2.99% a year earlier. Net NPA improved to 0.89% compared with 1.12% in the corresponding quarter last year.
The performance reflects stable credit growth and stronger balance sheet quality, helping the lender maintain profitability momentum amid a competitive banking environment.
South Indian Bank posts 19% rise in Q4 profit
South Indian Bank reported a 19% year-on-year increase in net profit to Rs. 408 crore for the fourth quarter of FY26, supported by strong business growth and improved asset quality.
For the full financial year, net profit rose 12% to Rs. 1,455 crore. The bank achieved its highest-ever total business of Rs. 2.24 lakh crore and operating profit of Rs. 2,373 crore.
Asset quality improved significantly, with gross non-performing assets declining to 1.43% from 3.20% a year earlier, while net NPA fell to 0.29% from 0.92%. Retail deposits increased 15%, while the gold loan portfolio surged 46%.
The board recommended a 45% dividend. Managing Director and CEO P R Seshadri said the bank focused on quality credit growth across corporate lending, MSME, auto, mortgage and gold loan segments.
Paytm returns to profit in Q4 FY26
One97 Communications reported a consolidated profit of Rs. 183 crore in the January–March quarter of FY26, marking a sharp turnaround from a loss of Rs. 545 crore in the corresponding quarter last year.
Revenue from operations grew 18.4% year-on-year to Rs. 2,264 crore, driven by growth in the payments business, merchant lending, personal loans and wealth management services.
Paytm management said the company witnessed strong momentum in both offline and online merchant payments while also recording its most profitable quarter on the consumer business side in the last eight quarters.
For the full financial year FY26, the fintech firm posted a consolidated profit of Rs. 552 crore compared with a loss of Rs. 663 crore in FY25, indicating a sustained improvement in operational performance and profitability.
J&K Bank targets Rs. 5 trillion business in five years
Jammu and Kashmir Bank aims to expand into a national-level bank over the next five years with a target business size of Rs. 5 trillion.
Managing Director and CEO Amitava Chatterjee said the lender is focusing strongly on retail banking while also expanding its presence outside Jammu and Kashmir. The bank expects nearly half of its business to come from regions beyond the Union Territory in the coming years.
The management highlighted that governance reforms and efforts to reduce non-performing assets initiated earlier are now delivering visible results.
The strategy reflects the bank’s ambition to diversify geographically, strengthen retail lending and improve operational efficiency while building a broader national franchise.
Kotak Mahindra Bank Q4 profit rises 10%
Kotak Mahindra Bank reported a 10% year-on-year increase in consolidated net profit to Rs. 5,423 crore in the fourth quarter of FY26.
On a standalone basis, net profit rose 13% to Rs. 4,027 crore, supported by lower provisions and improving asset quality. Net interest income increased 8% to Rs. 7,876 crore due to strong loan growth, though other income declined slightly.
The bank’s net interest margin improved sequentially to 4.67%, although it remained lower compared to the year-ago period. Management indicated that margin pressures may moderate gradually as deposit repricing gains momentum in the second half of the year.
The results underline steady business growth and improving operational performance amid evolving interest rate conditions.
Nabard acquires leasehold rights in Mumbai’s BKC for Rs. 361 crore
National Bank for Agriculture and Rural Development has acquired leasehold rights to a commercial campus in Mumbai’s Bandra-Kurla Complex (BKC) for Rs. 350.72 crore from Mahanagar Telephone Nigam Limited.
The property comprises two buildings spread over 2,680 square metres with a built-up area of over 4,000 square metres. The original 80-year lease was granted by the Mumbai Metropolitan Region Development Authority in 1998 and will remain valid until around 2078.
After obtaining regulatory approval, MTNL transferred the remaining lease tenure to Nabard, which plans to use the property for institutional purposes.
The transaction reflects continued demand for premium commercial assets in Mumbai’s BKC business district.
ECLGS 5.0 may support 1.1 crore MSMEs: SBI
State Bank of India’s economic research department estimates that the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 could benefit around 1.1 crore MSME accounts.
The scheme is expected to facilitate incremental credit flow of nearly Rs. 2.3 lakh per MSME account, with the government targeting total additional credit of Rs. 2.55 lakh crore, including support for airlines.
Under the scheme, eligible MSMEs receive 100% credit guarantee coverage, while non-MSMEs and airlines receive 90% coverage through the National Credit Guarantee Trustee Company.
Bankers believe the initiative will improve liquidity, protect jobs, support supply chains and help businesses manage disruptions arising from the West Asia crisis.
J&K Bank reports record FY26 profit
Jammu and Kashmir Bank posted its highest-ever annual profit of Rs. 2,363 crore for FY26, marking the fourth consecutive year of record earnings growth.
The bank’s profit rose over 13% year-on-year despite taking a one-time impairment charge related to its investment in J&K Grameen Bank. Quarterly profit for the January–March period also increased sharply to nearly Rs. 800 crore.
Management highlighted improvements in asset quality, capital strength and operational efficiency despite geopolitical uncertainties and a challenging business environment.
The bank reported a return on equity of 16.85%, while its cost-to-income ratio improved to 56.18%. Net interest margin for the year stood at 3.60%.
Bulk depositors gain as banks compete for funds
Large depositors, including public sector undertakings, temple trusts and cash-rich corporates, are benefiting as banks raise deposit rates to meet rising credit demand.
Interest rates on one-year bulk deposits of Rs. 3 crore and above have increased from around 6.9–7% in January 2026 to nearly 7.5% currently.
The trend reflects the widening gap between loan growth and deposit mobilisation across the banking sector. A senior banker noted that some institutions are willing to offer higher rates to attract large deposits and maintain liquidity.
Industry experts believe deposit rates could rise further if credit demand continues to outpace deposit growth, especially if policy rates remain unchanged.
Private banks may see sharper rise in bad loans in FY27
Private sector banks are expected to witness a faster rise in non-performing assets (NPAs) than public sector banks in FY27, according to a report by rating agency ICRA.
Fresh NPA generation for private banks is projected at 2% in FY27 compared with 1.8% in FY26, while public sector banks are expected to see a lower level of 1.2%, up from 0.9% in FY26.
The higher stress in private banks is largely attributed to greater exposure to unsecured retail and MSME lending. ICRA noted that stress is increasingly concentrated in MSME and retail portfolios, particularly in rural areas.
The report also warned that geopolitical uncertainties arising from the West Asia conflict could affect employment, especially in the IT sector, potentially impacting repayment capacity in personal loan segments.
Telangana Grameena Bank FY26 profit jumps 90%
Telangana Grameena Bank reported a 90% rise in net profit to Rs. 1,283 crore for FY26, driven by strong loan growth, improved margins and better asset quality.
The bank’s total business crossed Rs. 81,000 crore, registering over 10% growth during the year. Deposits rose 7.6% to Rs. 34,604 crore, while advances increased 12% to Rs. 46,547 crore.
Net interest margin improved to 4.33% from 3.99% a year earlier. Gross non-performing assets declined to 1.98%, while net NPA remained at zero.
Chairman K Prathapa Reddy said the performance reflected the bank’s focus on prudent lending, digital innovation and expansion in semi-urban and rural markets across Telangana.
SBI seeks Supreme Court review on telecom spectrum ruling
State Bank of India has approached the Supreme Court of India seeking a review of its February judgment that barred telecom spectrum from being treated as an asset under insolvency proceedings.
Acting on behalf of lenders to the Aircel group, SBI argued that the ruling contains errors and could significantly impact lenders and regulated industries. The bank contended that the judgment did not adequately address whether lenders can hold security interests over telecom spectrum or whether government dues qualify as operational debt under the Insolvency and Bankruptcy Code.
The ruling has affected pending resolution processes involving Aircel and Reliance Communications, where approved resolution plans remain unresolved.
