Briefing · Thu, 20 August 2026
Indian public sector banks are re-attempting sales of ₹39,000 crore in bad loans, with limited success highlighting challenges in legacy corporate accounts.
Meanwhile, private sector banks like IDFC First and Kotak Mahindra are actively tapping global debt markets.
Thu, 20 August 2026
Public sector banks are again offering ₹39,000 crore in bad loans, with nearly 80% being repeat sale attempts. This highlights persistent challenges in offloading large legacy corporate non-performing assets, particularly for Indian Overseas Bank and Indian Bank.
IDFC First Bank successfully raised $500 million through its inaugural three-year senior notes, issued from its IFSC Banking Unit at GIFT City. The bonds carry a fixed coupon of 5.625%, placed with investors outside the US.
Kotak Mahindra Bank secured $650 million through a five-year dollar bond issuance, priced 27 basis points below initial guidance. Indian lenders have collectively raised $6.95 billion since June 5, leveraging the RBI's swap facility which closes August 31.
The Reserve Bank of India has approved LIC's request to increase its stake in HDFC Bank to up to 9.99%. This provides LIC greater flexibility in managing its exposure to India's largest private-sector bank amidst evolving institutional ownership dynamics.
State Bank of India has reduced rates on domestic bulk term deposits by up to 25 basis points across select maturities. This adjustment reflects current liquidity conditions and broader interest rate trends in the banking sector.
Finance Minister Nirmala Sitharaman urged public sector banks to enhance their appeal to young customers by launching a 'Banking for Youth' campaign on October 2. Banks are encouraged to offer free online courses and lifestyle benefits to attract individuals aged 16 and above.