AI-summarised banking news and updates for India
State Bank of India reduced its Marginal Cost of Funds Based Lending Rate by 10 basis points across all tenors, effective June 1, 2026. This marks the first MCLR cut in 18 months, making home and auto loans more affordable for borrowers. Existing SBI customers with MCLR-linked loans will benefit from the rate reduction. Source: MoneyControl.
HDFC Bank reported a net profit of ₹16,800 crore for Q4 FY26, an 18% increase year-on-year, driven by strong growth in retail and rural lending. The bank's asset quality remained stable with GNPA at 2.1%. The merger integration with HDFC is now 90% complete, boosting operational efficiency. Source: Business Standard.
ICICI Bank introduced a zero-balance digital savings account that offers an overdraft facility of up to ₹5 lakh at preferential rates for verified customers. The account comes with a virtual debit card, unlimited UPI transactions, and a 4.5% interest rate. Customers can open the account in 3 minutes using Aadhaar e-KYC. Source: The Economic Times.
Kotak Mahindra Bank and ICICI Bank issued separate statements denying any ongoing merger discussions after media reports speculated a potential ₹4 lakh crore consolidation. Kotak stock rose 8% and ICICI gained 6% on the BSE on trading volumes four times the 30-day average. Market analysts remain divided on the long-term viability of such a merger. Source: Bloomberg-Quint.
Paytm Payments Bank has submitted its renewal application to the RBI ahead of the September 2026 licence expiry. The bank, which has 350 million registered users, has been operating under an enhanced compliance framework since 2024. Industry watchers expect the RBI to issue its decision by Q3 2026. Source: The Economic Times.
