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The Banking Frontline 01 May 2026

Issue: 1206


·    Standard Chartered to sell ~4.5 lakh Indian credit cards portfolio to Federal Bank.

·    Bank credit growth slows to around 15% in early April, signalling moderation in lending.

·    Year-end surge in deposits and advances reverses, highlighting possible window dressing by banks.

·    Rajiv Bajaj to step down from Bajaj Finance board later in July 2026.

·    Foreign investors pull out over Rs.1.8 lakh crore from Indian equities in 2026 so far.

·    Indian rupee hits record low beyond 95 per US dollar.

·    Bank of England holds rates at 3.75%; warns of inflation risks from geopolitical tensions.

·    US GDP growth rebounds to around 2% in Q1, supporting global outlook.


RBI shifts 104 tonnes of gold to domestic vaults, raises share in forex reserves: The Reserve Bank of India has moved another 104.23 metric tonnes of its gold holdings domestically in the six months ended March 2026, according to its half-yearly report on foreign exchange reserves., news agency PTI reported. The central bank’s overall gold holdings rose marginally to 880.52 MT in March 2026 from 880.18 MT at the end of September 2025. The report said the quantum of gold held domestically stood at 290.37 MT in March 2026, compared to 575.82 MT in September last year and 511.99 MT in March 2025. It added that 197.67 MT of gold was kept in safe custody with the Bank of England and the Bank for International Settlements (BIS), while 2.80 MT was held in the form of gold deposits as of March 2026.

(Moneycontrol)

Govt hikes export duties on diesel and jet fuel but leaves domestic duties unchanged: India further hiked export duties on diesel and aviation turbine fuel on Thursday, but left duties on domestic consumption of petrol and diesel unchanged, government said in a statement. The government said in a notification that export duty on diesel has been reduced to Rs 23 per litre (about $0.2424) from Rs 55.5 earlier. Export duty on aviation turbine fuel (ATF) has also been lowered to Rs 33 per litre from Rs 42. The tax rates on petrol and diesel used within the country remain unchanged, while petrol exports continue to attract no duty.

(Moneycontrol)

Rupee hits fresh low past 95/$ as oil surge pushes bond yields above 7%: The rupee hit a fresh low against the dollar, while yield on the benchmark 10-year government bond surged past 7 per cent-mark on Thursday, tracking the rise in crude oil prices amid the West Asia crisis, said dealers. Latest data released by RBI showed its net short position in the forward book crossed $100 billion, which in turn could exert pressure on the spot rupee. The currency hit the day’s low of 95.34 per dollar before recovering on the back of intervention by the RBI via dollar sales, said dealers. It settled at a new closing low for the second straight session at 94.92 per dollar against the previous close of 94.85 per dollar. The rupee breached the 95 per dollar mark for the first time on March 30, 2026.

(Business Standard)


IBA taps tech providers to frame AI-risk checklist for banks: The Indian Banks‘ Association (IBA) has initiated consultations with payment technology and infrastructure providers to develop a structured checklist aimed at helping banks assess and mitigate emerging risks from artificial intelligence-driven systems. The firms it is engaging include Financial Software and Systems (FSS) and other tech firms, said a source close to the development. The move follows a recent meeting chaired by Nirmala Sitharaman with senior bankers and the IBA to review preparedness against potential AI-led threats. The Finance Minister has asked the industry body to establish a coordinated institutional mechanism to enable swift responses to such risks..

(Financial Express)

Federal Bank to acquire majority of Standard Chartered’s credit card portfolio: In a move to expand its retail footprint in tier-1 cities, Federal Bank will acquire a majority of Standard Chartered Bank India’s credit card portfolio. The proposed transaction is expected to close in calendar year 2026. Federal Bank will acquire around 450,000 cards—about 70% of Standard Chartered India’s total base of 640,000 credit cards. The lender currently has around 800,000 non-co-branded cards and 1.3 million co-branded cards. Upon completion, the transaction is expected to increase Federal Bank’s non-co-branded credit card receivables by nearly 90%. The final portfolio size will depend on the timing of the transfer and receipt of customer consents, the bank said in a statement.

(Financial Express)

India Post Payments Bank (IPPB) Launches SHG Savings Account: India Post Payments Bank (IPPB), a 100% Government of India-owned entity under the Department of Posts, Ministry of Communications, today announced the launch of its Self Help Group (SHG) Savings Account, a dedicated offering aimed at advancing financial inclusion and empowering women-led SHGs across rural India. IPPB aims to deepen financial access for SHGs by combining doorstep banking services with digital on-boarding, assisted by extensive network of Postmen & Gramin Dak Sevaks (GDS).

(PiB)

UPI completes 10 glorious years, Emerges as World’s Largest Real-Time Payments Platform: The Unified Payments Interface (UPI), launched on 11 April 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), has emerged as the backbone of India’s digital payments ecosystem and a critical driver of financial inclusion. Over a decade of operations, UPI has demonstrated extraordinary scale and momentum. Annual transaction volume expanded from just 2 crore transactions in FY 2016-17 to over 24,162 crore transactions in FY 2025-26, representing an almost 12,000?fold surge in transaction volume. Parallelly, transaction value rose sharply from Rs.0.07 lakh crore in FY 2016-17 to approximately Rs.314 lakh crore in FY 2025-26, translating into a more than 4,000?fold increase in transaction value.

(PiB)

FinMin asks banks to adopt MuleHunter AI tool of RBI to check cyber frauds: Financial Services Secretary M Nagaraju urged banks to adopt the RBI's MuleHunter AI tool to combat financial cyber frauds and mule accounts. A meeting reviewed digital fraud trends and emphasized strengthening coordinated efforts between law enforcement and banks, including real-time intelligence sharing, to enhance customer protection.

(Economic Times)

Central Bank of India Q4FY26 net profit falls 30% on one-time tax hit: Central Bank of India reported a 30 per cent year-on-year (YoY) decline in net profit to Rs.724 crore in the January-March quarter (Q4) of FY26, weighed down by a one-time deferred tax liability of Rs.632 crore arising from changes under the Finance Act, 2026, and a sharp fall in treasury income. In Q4 of 2024-25 (FY25), the bank had reported a net profit of Rs.1,034 crore. Operating profit rose 4.6 per cent YoY to Rs.2,096 crore.

(Business Standard)


Rural women dominate labour market, yet gender gap persists, says NSO: Female workforce participation in India’s economy has seen a drastic surge, rising from 33.9 per cent in 2022 to 40 per cent in 2025, driven almost entirely by rural women. Yet, a stubborn pay gap, agriculture trap, and a vast unpaid work burden cast a shadow over the progress, according to the "Women and Men in India 2025" report released by National Statistical Office (NSO). The gender-statistics compendium puts the national female Labour Force Participation Rate (LFPR) for those aged 15 years and above at 40 per cent in 2025, up from 33.9 per cent in 2022. Rural women drove the charge with their LFPR climbing from 37.5 per cent to 45.9 per cent over the same period.

(Business Standard)

FDI inflows set to top $90 billion in FY26, says?DPIIT secretary: India’s foreign direct investment (FDI) inflows are likely to cross the $90 billion mark in 2025-26 (FY26), according to a government official, with strong momentum driven by policy reforms, free trade agreements, and robust economic growth. Gross FDI inflows stood at $88.29 billion up to February in FY26, higher than the total of $80.61 billion recorded in 2024-25. Net FDI inflows rose sharply to $6.26 billion during the period, compared with $959 million in the previous financial year. India’s share in global FDI inflows has roughly doubled over the past decade, reflecting its growing appeal as an investment destination. Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Amardeep Singh Bhatia said annual inflows could touch $100 billion by 2030, supported by reforms and supply-chain shifts.

(Business Standard)

Infosys names Nitin Paranjpe as vice chairman; Nilekani says 'no transition planned': IT major Infosys on April 30 elevated board member Nitin Paranjpe as non-executive vice chairman, even as chairman Nandan Nilekani signalled continuity at the top, saying there is no plan for a  chairman transition. The appointment, effective immediately, was cleared by the board on the recommendation of the Nomination and Remuneration Committee, the company said in an exchange filing. Paranjpe, who has served on the Infosys board, will support the chairman in guiding the board and the company’s strategic agenda.

(Moneycontrol)


RBI’s short dollar book surges past $100 billion for first time: The Indian central bank’s intervention in the derivatives market rose sharply in March with its net short dollar position surging to a record $103 billion. Net short dollar positions rose $25.4 billion from February, according to Bloomberg calculations based on Reserve Bank of India data released Thursday. The data, which is a reflection of the RBI’s intervention in both onshore and offshore forwards markets, rose as the authority intensified its defense of the currency in the midst of surging crude prices following the US-Iran war.

(Moneycontrol)

New online gaming rules from May 1: Violations will see 3-year jail term, Rs.1 crore in fines: India is set to usher in a sweeping regulatory overhaul of its online gaming sector, with the Online Gaming Rules, 2026 coming into force on May 1. The framework operationalises the Promotion and Regulation of Online Gaming (PROG) Act, 2025, marking a shift from policy intent to enforceable regulation. At its core, the new regime draws a clear line: while e-sports and online social games are encouraged, online money games are banned outright. E-sports and notified online social games may require mandatory registration, leading to a digital certification valid for up to 10 years.

(Business Today)

SEBI introduces fast-track route for AIF placement memorandum: The Securities and Exchange Board of India (SEBI) on Thursday introduced a fast-track mechanism for processing private placement memoranda (PPMs) filed by alternative investment funds (AIFs), allowing quicker launch of schemes and faster capital deployment. As part of an ease-of-doing-business measure, the regulator said AIFs, excluding large value funds for accredited investors (LVFs), can proceed with the “launch of their new schemes and circulate the PPM to their investors for soliciting funds after 30 days of filing of application with SEBI, unless otherwise advised.” For first-time schemes, AIFs can launch either from the date of registration or after 30 days from filing, whichever is later, the circular said.

(Business Line)


51% ATTACK

·     A 51% attack is an attack on a cryptocurrency blockchain by an entity or group that controls more than 50% of the network. If a party were to gain this much control of a network, it would have the power to alter the blockchain.

·     The attackers would be able to prevent new transactions from gaining confirmations, allowing them to halt payments between some or all users. They would also be able to reverse non-confirmed transactions that were completed while they were in control. Reversing transactions could allow them to double-spend coins, one of the issues mechanisms like proof-of-work were created to prevent.


RBI KEY RATES

Repo Rate: 5.25%

SDF: 5.00%

MSF /Bank Rate: 5.50%

CRR: 3.00%

SLR: 18.00%

FOREX RATES (RBI REF. RATE)

INR / 1 USD : 95.2417

INR / 1 GBP : 128.1953

INR / 1 EUR : 111.0683

INR /100 JPY: 59.2800

EQUITY INDEX

Sensex: 76913.50 (-582.86)

NIFTY: 23997.55 (-180.10)

Bnk NIFTY: 54863.35 (-540.25)


International Workers' Day or Labour Day (May Day): 1 May is primarily celebrated as International Workers' Day or Labour Day (May Day) globally, honoring the struggles and contributions of the working class, particularly the fight for an eight-hour workday. It is a public holiday in over 60 countries, including India, China, and many European nations.

Historical events: May 1st is globally celebrated as International Labour Day (May Day) to honor worker achievements, originating from an 1886 US demand for an 8-hour workday. In India, it marks Maharashtra Day and Gujarat Day (1960), commemorating the formation of these states, alongside the first Indian Labour Day celebrated in 1923.

 

****Have a nice Day****

 

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