Banks are being directed to adopt the Grameen Credit Score (GCS) to accelerate credit assessment for rural borrowers, including self-help groups, farmers, and micro and small enterprises. Authorities are exploring expansion of GCS parameters to include utility bills and government scheme enrolment, targeting first-time borrowers with no credit history.

Artificial intelligence is moving beyond customer-facing features to address structural inefficiencies in loan underwriting, where 30–50% of processing time is lost to data gathering rather than risk evaluation. With India’s credit market reaching approximately Rs 121 lakh crore by March 2025, faster AI-driven decisioning is becoming a competitive necessity for lenders.

State Bank of India (SBI) raised Rs 6,051 crore through its second Tier 2 bond issuance this fiscal year, reinforcing its capital base under Basel III norms even amid a tight interest rate environment. Tier 2 bonds carry higher risk than standard debt instruments as the Reserve Bank of India can write off principal if a bank nears non-viability, but offer correspondingly higher yields.

Central Bank of India, a Mumbai-based mid-sized public sector bank, posted 21.1% year-on-year loan book growth in the December 2025 quarter, among the fastest of its peers, driven by retail and small-to-medium enterprise lending. Despite this performance, the bank trades at approximately 0.8 times its standalone book value, a significant discount to sector leader SBI’s 1.8 times.

India’s Competition Commission of India (CCI) has approved Japan’s Mitsubishi UFJ Financial Group (MUFG) Bank’s acquisition of a 20% minority stake in non-bank lender Shriram Finance for Rs 39,618 crore, the largest cross-border investment in India’s financial sector to date. CCI separately approved State Street Global Advisors’ acquisition of a shareholding in Groww Asset Management.

India’s health insurance sector crossed Rs 1.2 lakh crore in premiums in FY25, driven by rising awareness and demand for medical financial protection. The Insurance Regulatory and Development Authority of India (IRDAI) has tightened cashless claims timelines, mandating pre-authorisation within one hour and final authorisation within three hours.

Powerica’s Rs 1,100 crore initial public offering (IPO) attracted only 3% subscription by the close of its second bidding day, with Qualified Institutional Buyers recording zero interest. Grey market premium has slipped to 0.5%, signalling weak listing expectations ahead of the March 27 close.

The United Forum of Bank Unions (UFBU) is demanding an immediate halt to the Department of Financial Services’ unilateral revision of the Performance Linked Incentive (PLI) formula for public sector bank employees. The union insists the matter must be resolved through bilateral dialogue, as conciliation proceedings before the Chief Labour Commissioner are already under way.

The Corporate Laws (Amendment) Bill, 2026 proposes a new Section 132A, requiring audit firms to disclose registration and disciplinary details to the National Financial Reporting Authority (NFRA) before taking on audit engagements. The move shifts NFRA’s oversight from a reactive to a proactive compliance framework, though auditors have raised concerns over potential fitness assessments.

The Competition Commission of India (CCI) has cleared Mitsubishi UFJ Financial Group (MUFG) Bank’s Rs 39,618 crore investment for a 20% stake in Shriram Finance, marking India’s largest foreign direct investment in the non-banking financial company (NBFC) sector. The capital infusion is expected to raise Shriram Finance’s Tier-1 capital adequacy ratio from 20% to over 35%, enabling more aggressive competition with large private banks.