Global insurance giant Allianz SE is set to exit its long-standing partnership with the Bajaj Group in India and is now exploring a fresh joint venture with Mukesh Ambani-led Jio Financial Services, according to an Economic Times report. This marks Allianz’s second attempt to establish a significant presence in India’s life and general insurance market. Exit from Bajaj Allianz for $2.8 Billion Allianz SE will sell...

Patanjali Ayurved and Dharampal Satyapal Group (DS Group) have acquired a 98% stake in Magma General Insurance for ₹4,500 crore, marking a significant expansion into financial services for both conglomerates. The board of directors at Magma General Insurance approved the deal, which sees Adar Poonawalla’s exit from the company. Adar Poonawalla Exits Magma General Insurance The transaction involves Sanoti Properties, owned by Adar Poonawalla, selling its...

State Bank of India (SBI) Chairman C.S. Setty has called for the development of an ecosystem that enables banks to provide equity support to startups, expanding beyond their current role of offering only debt financing. Speaking at the Nasscom Technology and Leadership Forum (NTLF), Setty highlighted the government’s plans to introduce a guarantee scheme that would provide support for loans up to ₹100 crore for...

The Reserve Bank of India (RBI) has partially rolled back stricter lending rules for small borrowers and non-bank lenders, following recent policy adjustments aimed at balancing financial stability with economic growth. Reversal of Loan Regulations for Microfinance and NBFCs The RBI reduced risk weight requirements for banks on consumer microfinance loans from 125% to 100%, easing capital constraints for banks providing small personal loans. This adjustment...

The Department of Investment and Public Asset Management (DIPAM) has invited bids from merchant bankers to assist in the stake sale of public sector banks (PSBs) and listed financial institutions. The initiative aligns with the government’s ongoing efforts to dilute equity in select state-owned banks and financial entities through structured transactions. Merchant Banker Empanelment for Stake Sale As per the Request for Proposal (RFP) floated by...

Indian banks that prioritize green loans in their credit portfolios experience long-term financial stability, according to a study by the Indian Institute of Management (IIM) Lucknow. Published in Finance Research Letters, the research highlights how non-carbon-intensive lending can improve loan quality and reduce default risks in India's banking sector. The Strategic Shift Toward Green Lending Green loans are financing options specifically designated for environmentally sustainable projects....

The Reserve Bank of India (RBI) has imposed monetary penalties amounting to ₹68.1 lakh on Nainital Bank Ltd and Ujjivan Small Finance Bank for non-compliance with various regulatory norms. Additionally, Shriram Finance, a non-banking financial company (NBFC), has also been fined for failing to meet compliance requirements related to customer verification and credit reporting. Breakdown of Penalties Nainital Bank Ltd: The highest penalty of ₹61.4...

Following the Reserve Bank of India's (RBI) initiative to enable invoicing and payments for international trade in rupees and other local currencies, 123 correspondent banks from 30 trading partner countries have opened special accounts with Indian banks. The aim is to facilitate cross-border trade transactions in local currencies, according to Jatin Prasada, Minister of State for Commerce and Industry. Special Rupee Vostro Accounts and Currency...

The Reserve Bank of India (RBI) has introduced an exclusive ‘.bank.in’ internet domain for Indian banks as part of measures to enhance digital security. RBI Governor Sanjay Malhotra announced that the initiative, which will take effect in April 2025, aims to help customers identify legitimate banking websites and reduce incidents of financial fraud. Additionally, a ‘.fin.in’ domain will be launched for the broader financial...

The Union Budget 2025 has introduced a major reform by raising the Foreign Direct Investment (FDI) limit in India's insurance sector from 74% to 100%. The measure, announced by Finance Minister Nirmala Sitharaman, is expected to boost investment inflows and enhance the growth of domestic insurance companies. The move aims to attract international investors while ensuring that the premium generated through operations in India remains...