Banking news for May 2026
Vinay Tonse takes charge as YES Bank MD & CEO
YES Bank has appointed Vinay Muralidhar Tonse as its Managing Director and Chief Executive Officer, effective April 6, 2026, for a three-year term.
Tonse succeeds Prashant Kumar, who demitted office on April 5. A seasoned banker, Tonse began his career as a probationary officer at State Bank of India in 1988 and most recently served as Managing Director overseeing retail business and operations.
His appointment comes at a crucial stage in YES Bank’s post-reconstruction phase, following the 2020 revival backed by a Rs. 10,000 crore capital infusion led by SBI and other financial institutions.
The leadership transition is expected to support the bank’s ongoing efforts to strengthen its retail franchise, improve operational efficiency, and sustain balance sheet stability in a competitive banking environment.
YES Bank appoints S Anantharaman as Chief Risk Officer
YES Bank has appointed S Anantharaman as its Chief Risk Officer (CRO), reinforcing its enterprise risk management framework.
Anantharaman brings over three decades of experience across banking and financial services. He previously served as Group CRO at Jio Financial Services and has held senior roles at Bank of Baroda, HDFC Bank, and L&T Finance Holdings.
In his new role, he will oversee credit policy, operational and market risk, data governance, information security, and enterprise-wide risk management.
The appointment aligns with the bank’s focus on strengthening governance, enhancing risk controls, and ensuring regulatory compliance amid evolving financial sector risks.
Insurance surety bonds gain traction as alternative to bank guarantees
The Coal Ministry has recognised Insurance Surety Bonds (ISBs) as a valid alternative to bank guarantees for bid and performance security, marking a significant shift in project financing norms.
ISBs function as a risk transfer mechanism where insurers act as sureties, guaranteeing that contractors will fulfil contractual obligations. The move aligns with amendments to the General Financial Rules, 2017, aimed at improving ease of doing business.
By replacing traditional bank guarantees, ISBs can reduce liquidity constraints and free up working capital for developers. The Power Ministry has already incorporated ISBs in bidding guidelines for renewable energy and infrastructure projects.
The reform is expected to enhance participation in infrastructure projects and diversify financial instruments available for project security.
HDFC Bank, Bank of Baroda report strong loan growth
HDFC Bank and Bank of Baroda have reported robust credit growth for FY26, with advances expanding faster than deposits.
HDFC Bank’s gross advances rose 12% year-on-year to Rs. 29.6 trillion, while deposits increased 14.4% to Rs. 31.06 trillion. Time deposits remained the primary growth driver.
Bank of Baroda reported a stronger 16.23% rise in global advances to Rs. 14.30 trillion, outpacing deposit growth of 12%. Retail lending remained a key contributor to domestic expansion.
The trend highlights sustained credit demand across sectors, although the gap between loan and deposit growth underscores funding challenges for banks in a rising interest rate environment.
RBI opens term money market to NBFCs, corporates
The Reserve Bank of India has allowed non-bank entities, including NBFCs, corporates, housing finance companies, and all-India financial institutions, to participate in the term money market to deepen liquidity.
The term money market facilitates borrowing and lending for periods ranging from 14 days to one year, typically on an unsecured basis. Earlier, participation was limited to banks and primary dealers.
The move is aimed at improving monetary policy transmission and broadening the market base. State Bank of India noted that the inclusion of new participants could enhance demand for funds and help banks deploy surplus liquidity more efficiently, potentially moderating yields.
The RBI has also enhanced borrowing limits for standalone primary dealers to support market activity. The reform is expected to strengthen the overall depth and efficiency of India’s money market ecosystem.
PNB launches Digi MSME Prime digital lending platform
Punjab National Bank has introduced Digi MSME Prime, a digital lending platform designed to provide faster and seamless credit access to micro, small and medium enterprises (MSMEs).
The platform is built on a Straight Through Processing model, enabling minimal manual intervention and quicker loan approvals. MSMEs can avail loans of up to Rs. 10 crore, with eligibility assessed primarily on GST turnover and cash flow data, reducing documentation requirements.
The initiative reflects the bank’s push towards technology-driven lending and financial inclusion. By digitising credit processes, the platform aims to improve efficiency, reduce turnaround time, and enhance access to formal finance for small businesses.
The move is expected to support MSME growth by simplifying credit delivery and aligning with broader digital banking transformation trends in India.
UPI QR-based cardless cash withdrawal rolled out nationwide
RNFI Services, through its platform Relipay, has launched a nationwide UPI QR-based cash withdrawal service in partnership with Jio Payments Bank.
The service enables customers to withdraw cash by scanning a QR code at authorised outlets and authenticating the transaction using their UPI PIN. The merchant then dispenses the cash, creating a seamless assisted transaction experience.
The facility has a per-transaction limit of Rs. 5,000, with daily and monthly limits of Rs. 10,000 and Rs. 50,000, respectively.
This innovation enhances financial inclusion by enabling cardless withdrawals, particularly in areas with limited ATM access. It also reflects the growing integration of UPI into everyday banking services.
J&K Bank begins Amarnath Yatra 2026 registrations
Jammu & Kashmir Bank has commenced registration for the Shri Amarnath Ji Yatra 2026, which will run from July 3 to August 28.
The bank is facilitating registrations through 110 designated branches across the country, with over 6,000 pilgrims already enrolled. The process follows a first-come, first-served approach based on guidelines issued by the Shri Amarnathji Shrine Board.
Registrations are conducted using Aadhaar-based biometric eKYC, with permits issued digitally. Pilgrims must also submit a valid health certificate from authorised institutions.
The initiative highlights the bank’s role in supporting large-scale religious events by ensuring smooth registration and banking services for devotees.
PNB marks 132nd foundation day, launches 22 new products
Punjab National Bank celebrated its 132nd Foundation Day at Yashobhoomi, New Delhi, marking over a century of operations and contribution to India’s financial sector.
The event highlighted the bank’s legacy of trust and resilience, with senior leadership, government officials, and stakeholders in attendance. Managing Director and CEO Ashok Chandra acknowledged the contributions of employees in shaping the bank’s journey.
During the celebration, the bank launched 22 new products aimed at strengthening its service offerings and supporting evolving customer needs. The occasion also paid tribute to founder Lala Lajpat Rai, reflecting the institution’s historical roots and commitment to nation-building.
The milestone underscores PNB’s continued focus on innovation, expansion, and alignment with India’s economic growth trajectory.
Banking system liquidity hits four-year high
Liquidity in India’s banking system has surged to a four-year high, driven by government securities (G-Sec) maturities and surplus funds parked with the Reserve Bank of India.
Net liquidity stood at Rs. 4.57 trillion, the highest since May 2022, with further increases expected as additional G-Sec maturities occur. Upcoming maturities of over Rs. 1.2 trillion are likely to push surplus liquidity close to Rs. 5 trillion.
The surplus reflects improved systemic liquidity conditions, providing banks with greater flexibility in lending and investment decisions. It may also influence short-term interest rates and monetary transmission dynamics.
The development signals a comfortable liquidity environment, which could support credit growth and stabilise financial markets in the near term.
Gold loans dominate new credit as retail book expands
Gold loans have emerged as the leading product in new loan originations and the second-largest segment in India’s retail credit market, reaching Rs. 16 lakh crore, according to TransUnion CIBIL.
The growth is driven by rising gold prices and increased demand during the festive season, with gold loans accounting for nearly one-third of new originations. Ticket sizes have also increased significantly as gold values surged.
Meanwhile, lenders have improved asset quality by focusing on higher-value loans and borrowers with stronger credit profiles, resulting in declining delinquencies across most segments.
The trend highlights a shift towards secured lending, supported by stable repayment behaviour and strong collateral backing, contributing to overall credit market stability.
RBL Bank plans aggressive branch expansion
RBL Bank is set to expand its physical presence by opening 200 new branches in FY27, aiming to take its network beyond 800 locations.
The bank recently opened 23 branches across multiple states, bringing its total to 603. A significant focus has been placed on Kerala, where 13 branches were launched to tap into the strong non-resident (NR) customer base and remittance flows.
The expansion strategy is aimed at strengthening retail banking operations, increasing deposit mobilisation, and enhancing customer engagement across regions.
The bank also plans to leverage its branch network to drive asset growth and deepen product penetration, aligning with its broader growth and market expansion objectives.
PMJDY balances cross Rs. 3 lakh crore milestone
Pradhan Mantri Jan Dhan Yojana has crossed a major milestone, with total deposits exceeding Rs. 3 lakh crore as of March 11, 2026, reflecting strong progress in financial inclusion.
Total balances stood at Rs. 3,02,778 crore, up from Rs. 2.6 lakh crore a year ago, while the number of accounts rose to 57.86 crore. Rural and semi-urban areas account for the majority of beneficiaries, highlighting the scheme’s deep outreach.
Public sector banks, including State Bank of India, have played a key role through account expansion and revival of dormant accounts. Women constitute a significant share of beneficiaries, strengthening inclusive growth.
Experts note that PMJDY has become a backbone of India’s digital and financial ecosystem, enabling better access to banking and credit services.
Credit-deposit ratio of banks hits record 83%
India’s banking system has recorded a historic high credit-deposit ratio of 83% as of March 15, 2026, driven by strong credit growth and slower deposit mobilisation.
Total bank credit rose to Rs. 207.6 lakh crore, while deposits stood at around Rs. 250 lakh crore. Incremental credit growth of Rs. 25.3 lakh crore outpaced deposit growth of Rs. 24.3 lakh crore, pushing the incremental ratio above 100%.
Traditionally, a ratio of around 80% is considered optimal, balancing liquidity and lending requirements. The current rise indicates tighter liquidity conditions and increasing pressure on banks to mobilise deposits.
The trend reflects sustained demand for loans across sectors but also signals the need for banks to strengthen their deposit base to maintain financial stability.
Banks see CASA ratio rise in Jan–Mar quarter
Banks have reported a sequential rise in their current and savings account (CASA) ratios during the January–March quarter, reversing a declining trend seen over the past two years.
Major lenders including HDFC Bank, Axis Bank, Union Bank of India, and Central Bank of India recorded an increase in low-cost deposits.
The improvement is attributed to seasonal factors and a shift by investors towards safer instruments amid global uncertainties, including the West Asia conflict. CASA deposits are crucial as they help reduce banks’ cost of funds and improve margins.
However, analysts caution that despite the recent uptick, CASA ratios remain below levels seen a year earlier, indicating continued competition for deposits.
