Banks face significant treasury losses as the 10-year yield surged past 7%. This unexpected jump impacted rupee and bond markets. Traders are cautious, adjusting to a new reality of prolonged conflict and potential inflation. The market now anticipates further yield increases with upcoming government security auctions. Banks are preparing for supply in the next financial...Read More

Equity derivatives trading faces higher costs from April 1. New government taxes on futures and options will increase trading expenses. The Reserve Bank of India’s stricter lending rules for brokers also take effect. These measures aim to moderate speculation. Trading volumes are expected to decrease, particularly for retail traders. Costs for trading, arbitrage, and hedging...Read More

Bank fixed deposit growth slowed to a two-year low in the December quarter. Private banks led deposit collection. This slowdown may increase funding costs for lenders. However, current and savings account deposits saw improved growth. Experts predict a shift back to fixed deposits due to geopolitical events.Read More

Indian banks experienced a significant slump on Monday following the RBI’s directive to curb net-positioning to support the rupee. The Bank Nifty retreated 3.8%, with all constituents losing value. These new regulations, effective April 10, restrict lenders’ forex positions, potentially impacting near-term profits and causing short-term volatility.Read More

The Reserve Bank of India has permitted small finance banks to extend credit to capital market intermediaries. New loan-to-value ratio guidelines have been established for lending against financial assets, including eligible securities. The LTV ceiling for listed shares and convertible debt remains at 60%.Read More

The Reserve Bank of India has postponed new capital market exposure rules. The implementation date is now July 1, 2026. Banks issuing payment commitments to stock exchange clearing corporations will see eased capital adequacy requirements. Capital will only be held on the portion classified as capital market exposure. These changes follow updates to the central...Read More

JP Morgan and Jefferies have upgraded HDFC Bank, citing attractive valuations after a significant share price decline. Both brokerages see a favorable risk-reward, with JP Morgan highlighting a strong core franchise and Jefferies pointing to potential re-rating catalysts like board clarity and CEO term rollover.Read More