Bank of Maharashtra, Canara Bank eye dollar debt issuance this month, bankers say
Canara Bank and Bank of Maharashtra are preparing to raise $500 million each through dollar bonds this month. These issuances, expected to be three-year or five-year papers, aim to leverage a concessional swap window. This regulatory provision is designed to lower the cost of hedging currency exchange rate risks for lenders. This marks Bank of Maharashtra's debut issuance in the dollar bond market, while Canara Bank has previously tapped this route.
Why it matters
The move indicates Indian banks' increasing appetite for global capital and strategic use of regulatory incentives to manage funding costs. Accessing dollar debt markets allows banks to diversify funding sources, potentially reduce their overall cost of funds, and support foreign currency lending activities. The concessional swap window highlights RBI's effort to facilitate external commercial borrowings while mitigating exchange rate volatility for institutions.
The Economic Times · Tue, 8 September 2026
Read more →RBL Bank to raise up to USD 1 bn from overseas investors
RBL Bank's board has approved raising up to $1 billion from foreign investors through a Euro Medium Term Note (EMTN) Programme. The bank's borrowing committee is tasked with overseeing the necessary steps for this initiative. This decision follows Emirates NBD Bank's recent acquisition of a controlling 60% stake in RBL Bank's enhanced share capital, signaling a renewed focus on growth and capital augmentation.
Why it matters
This capital raise demonstrates RBL Bank's strategy to bolster its balance sheet and support future growth, particularly after a significant foreign ownership change. The EMTN program provides flexibility in tapping international markets, catering to diverse investor bases and potentially securing more favorable terms. This could also be a strategic move to align capital structures with the growth ambitions of its new majority shareholder.
The Economic Times · Tue, 8 September 2026
Read more →Gold loans, consumer durables drive NBFC credit growth to 14.9% in July
Non-banking financial companies (NBFCs) recorded a credit expansion of 14.9% by the end of July, accelerating from 10.6% in the previous year. This robust growth was significantly propelled by gold loans, which surged by 68.5%, and consumer durable loans, which grew by 51.5%. Overall, retail loans within the NBFC sector increased by 21.4%, demonstrating strong performance. Housing and vehicle loans also registered notable year-on-year growth.
Why it matters
The strong credit growth in NBFCs, particularly in gold and consumer durables, signals sustained consumer demand and NBFCs' effective penetration into these segments. This trend reflects their agility in catering to specific retail credit needs where traditional banks might have stricter lending criteria. It also highlights potential areas of risk accumulation if underwriting standards are not maintained, given the asset-backed nature of gold loans and the cyclicality of consumer durables.
The Economic Times · Tue, 8 September 2026
Read more →SBM Bank India plans 26% stake sale, appoints consultant
SBM Bank India is exploring the sale of a 26% stake to raise funds for its expansion initiatives. The bank has appointed a consultant and is currently in the Expression of Interest (EoI) phase for potential investors. The parent company recently infused ₹75 crore and has committed to providing additional capital. SBM Bank India is targeting substantial credit growth and is simultaneously strengthening its digital wealth management offerings.
Why it matters
A strategic stake sale could inject significant capital into SBM Bank India, supporting its aggressive growth targets and digital expansion. Bringing in a strategic investor often accompanies expertise transfer, governance enhancements, and market validation. This move indicates a proactive approach to funding growth and competing in the evolving digital banking landscape, potentially leading to increased competition in niche segments.
The Economic Times · Tue, 8 September 2026
Read more →RNFI Services gets RBI in-principle nod to operate as payment aggregator
RNFI Services has secured in-principle authorization from the Reserve Bank of India (RBI) to operate as a Payment Aggregator-Physical (PA-P). This approval enables the company to expand its operations into offline and in-store payments. This new capability adds to RNFI's existing portfolio of financial services, which includes money movement, mutual fund distribution, insurance broking, and prepaid payment instruments.
Why it matters
The RBI's in-principle authorization for RNFI Services as a PA-P signifies the continued expansion and formalization of the digital payments ecosystem in India. This move will enhance competition in offline payment acceptance, potentially driving innovation and broader adoption among merchants. For banks, it means increased collaboration opportunities or heightened competition from non-bank entities in payment processing, particularly for small and medium enterprises.
The Economic Times · Tue, 8 September 2026
Read more →Irdai fines ICICI Lombard Rs 1 crore for outsourcing, vendor management lapses
The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a ₹1 crore penalty on ICICI Lombard General Insurance. The fine was levied due to lapses in outsourcing, vendor management, and corporate governance. Specifically, the regulator found that the insurer failed to properly classify event management services involving agents of other insurers as outsourced activities, and did not report the related expenses as required.
Why it matters
This penalty underscores IRDAI's increasing scrutiny over compliance with outsourcing and vendor management guidelines in the insurance sector. The regulatory action reinforces the expectation for all regulated entities, including banks with insurance subsidiaries or bancassurance operations, to maintain stringent corporate governance and transparent reporting practices for all outsourced activities. Non-compliance, even on classification, carries significant financial repercussions.
The Economic Times · Tue, 8 September 2026
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