State Bank Of India

By Nishit Navin

BENGALURU, June 30 (Reuters) - Indian fintech firm Cashfree Payments plans to deepen its cross-border business with offerings such as overseas investment and travel payments as it seeks to tap rising demand for international transactions, CEO Akash Sinha said on Monday.

Cashfree, backed by State Bank of India SBI.NS, the country's largest lender, currently facilitates cross-border e-commerce payments.

It plans to begin pilots this year for overseas investment, travel and business-to-business payment services, expanding beyond online shopping, Sinha told Reuters in an interview.

"Cross-border is an exciting space...the market is not a challenge. It's a growing market," Sinha said, attributing the opportunity to India's increasing integration with the global economy through trade agreements.

"It's more about how do we crack it. Can we build the right product? Can we make a compliant product? Those are the challenges."

Indian payment firms have stepped up their focus on cross-border services as outbound travel, overseas education, investments and global trade gather pace.

Unlike domestic payment processing, where intense competition has squeezed pricing, cross-border transactions typically offer better margins because they involve foreign exchange and additional regulatory compliance.

Sinha said Cashfree aims to build payment infrastructure that makes cross-border transactions smoother, cheaper and operationally hassle-free for consumers and businesses.

Cashfree, which has a cross-border payments aggregator licence from India's financial regulator, expects the business to contribute 25% of revenue within three to four years, up from 10% currently.

It reported revenue of nearly 10 billion rupees ($105.7 million) in financial year 2026.

The firm, founded in 2015, processes transactions worth $80 billion annually for more than 1 million businesses, according to its website.

($1 = 94.6050 Indian rupees)

(Reporting by Nishit Navin; Editing by Shreya Biswas)

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, June 29 (Reuters Breakingviews) - The world's top venue for trading in equity options by volume is treading carefully with its own listing plans. India's National Stock Exchange may seek a $52 billion market capitalisation in its Mumbai initial public offering. After a decade of delays to its debut, accepting a valuation discount to rival BSE BSEL.NS, formerly Bombay Stock Exchange, is a prudent hedge against regulators tightening rules to curb retail losses and their push to loosen the bourse's dominance.

Founded in 1992, NSE executes equity options contracts worth 142 trillion rupees ($1.5 trillion) in turnover annually, thanks to the rapid uptake of trading by retail investors following the Covid pandemic. NSE controls three-fourths of that lucrative trade. A listing will also yield a windfall for its long-time backers like Temasek and State Bank of India SBI.NS.

They and CEO Ashishkumar Chauhan, who took the role in 2022 after 10 years leading BSE, all appear determined to ensure a deal is done. Assume NSE's earnings of 103 billion rupees increase 34% for the year to the end of March - the same pace of earnings growth Visible Alpha estimates for BSE - and the $52 billion market capitalisation works out to 36 times earnings, compared to BSE's 49 times multiple.

Both exchanges are exposed to a potential plunge in trading volumes, with each generating roughly 60% of its top line from derivatives. The official crackdown, which last year temporarily banned high frequency trader Jane Street, also saw authorities increase minimum contract sizes, implement a ban on lending to high-frequency traders and impose higher taxes on derivatives transactions. If retail investors' chunky losses continue, more restrictions could follow.

NSE's sheer outsize influence is seen as a problem too. Its market share in options trading has tumbled to 75% from 97% two years ago, when the regulator began tightening control over the number and frequency of contracts the exchanges can offer. As a result, NSE's bottom line fell 16% in the most recent financial year even as BSE's grew 88%. Another reason for Chauhan to accept a discount is simply that BSE's scarcity premium will disappear. All that makes selling cheap an imperative more than an option.

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CONTEXT NEWS

India's National Stock Exchange will sell up to 149 million shares, 6% of its total outstanding, in a Mumbai initial public offering, the bourse said in a draft prospectus filed on June 17.

State Bank of India, a Morgan Stanley affiliate, Canada Pension Plan Investment Board and Temasek are among existing shareholders who will offer shares in the issue.

A record 20 bookrunning lead managers are advising the issue, led by Kotak Mahindra and JM Financial.

(Editing by Una Galani; Production by Aditya Srivastav)

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By Dharamraj Dhutia and Khushi Malhotra

MUMBAI, June 25 (Reuters) - Three Indian development finance institutions are planning to raise at least $1.5 billion through foreign-currency bank loans under the central bank's discounted overseas borrowing facility, three people familiar with the plans said.

The institutions are favouring loans over bonds because none has issued dollar debt before and the process is simpler, the sources added.

The National Bank for Agriculture and Rural Development (NABARD), the Small Industries Development Bank of India (SIDBI) and the National Bank for Financing Infrastructure and Development (NaBFID) are each seeking to raise at least $500 million through foreign-currency loans, with NaBFID the furthest along after initiating talks with lenders, an executive confirmed.

"We expect to raise up to $2 billion via ECBs in this financial year. At present, we are planning to raise $500 million through the ECB route, and we have already started our activity and are exploring in the market," NaBFID managing director Rajkiran Rai told Reuters.

"With the RBI window opening, ECBs work out much cheaper. For the loan, the landed cost could be in the range of 6.5%-7.0%, NaBFID's Rai added.

The institution had also raised $125 million via a smaller dollar loan tranche in March, the sources added.

The sources declined to be identified as they are not authorised to speak to the media. NABARD and SIDBI did not respond to Reuters' requests for comment.

NABARD and SIDBI, which have not yet tapped foreign funding, have initiated preliminary talks and could approach the market over the next 30 to 40 days, according to all the sources.

"There is a lengthy procedure involved in a debut dollar bond sale, and it is time-consuming. If an institution is not going to be a regular issuer like EXIM Bank, it makes little sense to choose bonds over loans," one of the sources said.

Based on the credit ratings, dollar loans may be just marginally expensive than bonds for now.

The Reserve Bank of India earlier this month allowed banks and state-run companies raising funds overseas to access a subsidised hedging facility, lowering the cost of managing currency risk as part of a broader effort to attract dollar inflows and support the rupee.

Since then, HDFC Bank HDBK.NS, Axis Bank AXBK.NS and Power Finance Corp PWFC.NS have raised a combined $1.85 billion through dollar bonds, while Bank of Baroda BOB.NS and State Bank of India SBI.NS are preparing for similar issues.

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Nivedita Bhattacharjee)

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State Bank of India's central board on Thursday approved raising up to ₹60,000 crore through debt instruments in the current financial year. The instruments include long-term bonds, Basel III-compliant Additional Tier 1 bonds, and Tier 2 bonds. The funds may be raised via public offer or private placement in Indian rupees or other convertible currencies from domestic and overseas investors. The plan is subject to government approval where required. The board meeting, which began at 10 am, concluded the agenda by 1:15 pm. The approval follows a prior intimation of the board meeting on June 15.

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June 18 (Reuters) - State Bank of India SBI.NS:

• STATE BANK OF INDIA - BOARD APPROVES FUND RAISING UP TO 600 BILLION RUPEES VIA DEBT INSTRUMENTS DURING FY27

Source text: ID:nNSE5XBxd4

Further company coverage: SBI.NS

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By Dharamraj Dhutia

MUMBAI, June 17 (Reuters) - India's largest private lender, HDFC Bank HDBK.NS, has accepted bids worth $750 million for its planned dollar bonds, capitalising on the central bank's subsidised hedging window for overseas borrowings, three merchant bankers said on Wednesday.

The deal is the largest by an Indian lender since the State Bank of India's SBI.NS $750 million five-year bond sale in May 2023 and comes as SBI and Bank of Baroda BOB.NS line up similar overseas debt sales.

HDFC Bank priced its 5-year bond issue at 90 basis points over U.S. Treasuries, translating to a yield of 5.0670%.

After launching with guidance at 120 basis points over Treasuries, robust investor demand compressed the spread, bankers said.

The sources could not be named as they are not authorised to speak to the media. HDFC Bank did not reply to a Reuters email seeking comment.

Earlier this month, the RBI said external commercial borrowings by banks and state-run companies would qualify for a subsidised hedging facility, helping cut the cost of managing currency risk.

The step forms part of a wider RBI push to draw in dollar inflows and bolster the rupee.

"Considering the hedging discount, the all-in landed cost of funds for the bank should be around 7%," one of the bankers said.

Merchant bankers expect inflows of around $15 billion to $20 billion through the ECB route over the next six months.

Proceeds of the bond issue will be used to support overseas branches and subsidiaries, fund growth in offshore businesses and for general corporate purposes, bankers said, citing a term sheet.

The lender also has a call option due in August for a perpetual bond it had sold five years ago.

(Reporting by Dharamraj Dhutia; Editing by Nivedita Bhattacharjee)

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By Dharamraj Dhutia

MUMBAI, June 16 (Reuters) - India's largest private lender, HDFC Bank HDBK.NS, is looking to raise at least $500 million via dollar bonds this week, tapping the central bank's subsidised hedging window for overseas borrowings, three sources directly aware of the matter said on Tuesday.

The private bank's issue comes after Reuters reported that state-run lenders State Bank of India SBI.NS and Bank of Baroda BOB.NS were also in talks to raise dollars this way.

HDFC Bank's plans include a five-year bond issue, with an initial price guidance of 5-year U.S. Treasury yield plus 120 basis points, the sources said.

"The final cutoff should come below 100 bps over U.S. Treasury yields, as strong demand is expected in the book-building process," said one of the sources, adding the bank could decide to raise more than $500 million depending on demand.

The sources requested anonymity, as they are not authorised to speak to the media, while HDFC Bank did not reply to a Reuters query seeking comment.

Earlier this month, the Reserve Bank of India said that external commercial borrowings with an average maturity of at least three years by state-run companies and banks would qualify for a swap facility at a fixed rate of 1.5% per annum, compounded semi-annually.

The facility lowers hedging costs and helps cushion a fall in the rupee.

Merchant bankers expect inflows of around $15 billion to $20 billion through this route over the next six months.

The proceeds from HDFC Bank's bond issue will be used to meet the funding requirements of the bank's foreign branches and foreign subsidiaries, develop and expand business in the foreign offices and meet the bank's general corporate purposes, the sources said, citing a term sheet.

(Reporting by Dharamraj Dhutia; Editing by Harikrishnan Nair)

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June 15 (Reuters) - State Bank of India SBI.NS:

• TO CONSIDER FUNDRAISING IN FY27 VIA DEBT INSTRUMENTS TO OVERSEAS AND INDIAN INVESTORS

Source text: ID:nBSE5tfvZk

Further company coverage: SBI.NS

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By Dharamraj Dhutia and Khushi Malhotra

MUMBAI, June 12 (Reuters) - State Bank of India SBI.NS and Bank of Baroda BOB.NS are set to become the first users of the Reserve Bank of India's subsidised hedging window for overseas borrowings, with plans to raise about $1 billion through five-year dollar bonds, three sources said on Friday.

The state-run lenders are each targeting around $500 million, the sources said.

Neither bank responded to Reuters requests for comment. The sources requested anonymity as they are not authorised to speak to media.

"Both the banks will aim to complete the issue before the end of this month, as they had been waiting for the central bank's facility to be formalised," one of the sources said.

The Reserve Bank of India said this week that external commercial borrowings with an average maturity of at least three years by state-run companies would qualify for a swap facility at a fixed rate of 1.5% per annum, compounded semi-annually.

The facility lowers hedging costs, making overseas borrowing cheaper for companies and banks.

"With 150 basis point of hedging discount, the all in landed cost for these lenders should be around 6.25%-6.50%, which is cheaper than their local cost of borrowing," another source said.

Merchant bankers expect inflows of around $15 billion to $20 billion through this route over the next six months.

In September 2025, SBI, the nation's lender had raised $500 million through five-year dollar denominated bonds at a coupon of 4.50% payable semi-annually.

While SBI has maturities of dollar bonds worth around $750 million coming up later this month and in July, Bank of Baroda currently has no outstanding dollar debt, according to financial data aggregator Cbonds.

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Nivedita Bhattacharjee)

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Added details about SBI's rate hike

By Gopika Gopakumar

MUMBAI, June 10 (Reuters) - Some banks raised rates on foreign currency deposits for non-resident Indians by as much as 300 basis points on Wednesday, in a likely bid to attract dollar inflows after the central bank eased regulatory restrictions last week.

The Reserve Bank of India will bear the ‌full hedging cost for three- to five-year non-resident deposits, it said on Friday, as part of a broader set of measures to encourage overseas flows and curb weakness in the rupee.

The unit is Asia's second-worst-performing currency this year, down 6% so far, and slipping to record lows in May.

HDFC Bank HDBK.NS, India's largest private sector lender, hiked rates by 235-265 basis points to 6% on three- to five-year deposits.

State Bank of India, the country's largest bank, raised rates by as much as 300 basis points across three- to five- year deposits. For deposits up to $1 million, it will now offer between 5.25% to 5.75% on of three- to five-year tenures. For deposits above $1 million, the bank will offer between 5.5% and 6% on tenures of three to five years.

AU Small Finance Bank AUFI.NS increased rates by 195 bps, offering 7.1% on three-year deposits and 7% on five-year deposits.

Yes Bank YESB.NS has set the rate at 7% on three-year deposits, 7.05% on four-year deposits and 7.10% on five-year deposits, according to a Bloomberg report on Wednesday. A Yes Bank spokesperson did not respond to Reuters' request for comment.

Other banks are expected to announce their new rates this week.

Lenders could raise as much as $35 billion to $40 billion via these foreign currency deposits until September this year, according to a Reuters report. The RBI said it is also open to banks providing guarantees to offshore lenders to lend to NRIs, who can place these borrowed funds as deposits.

The RBI had last launched a concessional forex swap facility for non-resident Indians in 2013 when the ​rupee ⁠had depreciated sharply due to the U.S. Federal Reserve's "taper tantrum". Under that scheme, HDFC Bank mobilised $3.4 billion, followed by ICICI Bank ICBK.NS, SBI SBI.NS and select foreign banks.

(Reporting by Gopika Gopakumar in Mumbai; Editing by Sonia Cheema and Diti Pujara)

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-- Source link: https://tinyurl.com/34y7ayaj

-- Note: Reuters has not verified this story and does not vouch for its accuracy

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June 5 (Reuters) - State Bank of India SBI.NS:

• STATE BANK OF INDIA - RATNA TEJA DINAKARA AKELLA GETS ADDITIONAL RESPONSIBILITY AS GROUP CHIEF RISK OFFICER

Source text: ID:nBSE56VR8v

Further company coverage: SBI.NS

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By Nikunj Ohri

NEW DELHI, May 18 (Reuters) - India's finance ministry directed state-run banks, insurers and financial institutions on Monday to implement cost-cutting measures, including sharp curbs on travel and a phased transition to electric vehicles, according to an order reviewed by Reuters.

The order, part of a broader austerity push, will cover institutions like the State Bank of India SBI.NS, Bank of Baroda BOB.NS and Life Insurance Corp of India LIFI.NS and million of their employees across the country.

Under the new measures, all meetings, reviews and consultations must be conducted via video conferencing unless physical presence is deemed essential, the order issued by the Department of Financial Services said.

Foreign travel by top executives of the organisations - including chairpersons, managing directors and chief executive officers - should be kept below prescribed limits, with overseas engagements to be attended virtually wherever possible, it said.

Separately, the government has asked the organisations to accelerate adoption of electric vehicles.

"All organisations may aim at replacing the petrol and diesel vehicles hired by them in their head offices and branch offices by electric cars as far as possible," the order said.

The move follows a call last week by Prime Minister Narendra Modi urging officials to follow austerity and exercise restraint in spending, as the government braces for the economic fallout from rising global tensions.

Prolonged Middle East conflict risks slowing growth, stoking inflation and straining the balance of payments, with the Indian rupee already at record lows as Asia's worst performer this year.

Several Indian states have directed employees to work from home two days a week as part of cost-cutting efforts.

(Reporting by Nikunj Ohri; Editing by Raju Gopalakrishnan)

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May 12 (Reuters) - State Bank of India SBI.NS:

• SBI - APPROVED LONG TERM FUND RAISING OF UP TO $2 BILLION DURING FY 2026-27

• SBI - APPROVED FUND RAISING VIA BONDS IN US DOLLAR, ANY OTHER MAJOR FOREIGN CURRENCY

Further company coverage: SBI.NS

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May 11 (Reuters) - Shares of State Bank of India SBI.NS dropped nearly 3% on Monday as the lender missed fourth-quarter profit estimates and cautioned against a hit to loan growth due to a prolonged Iran war.

(Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)

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May 8 (Reuters) - State Bank of India SBI.NS:

• STATE BANK OF INDIA Q4 NET PROFIT 196.84 BILLION RUPEES; IBES EST. 203.12 BILLION RUPEES

• SBI Q4 PROVISIONS AND CONTINGENCIES 28.72 BILLION RUPEES

• SBI Q4 PROVISIONS FOR NPAS 31.4 BILLION RUPEES

• SBI Q4 GROSS NPA 1.49 %

• SBI Q4 NET INTEREST INCOME 443.8 BILLION RUPEES - REUTERS CALCULATION

Source text: [ID:]

Further company coverage: SBI.NS

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May 7 (Reuters) - State Bank of India SBI.NS Chairman :

• CREDIT FACILITY OF INR 700 BILLION TO INR 800 BILLION EXPECTED TO BE AVAILABLE WITH SBI UNDER ECGLS SCHEME - SBI CHAIRMAN

Further company coverage: SBI.NS

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By Dharamraj Dhutia

MUMBAI, May 5 (Reuters) - Currency in circulation in India surged by over 610 billion rupees ($6.40 billion) in the first 15 days of April, pushing the total to a record 42.3 trillion rupees, and a sustained pattern could impact liquidity, economists said.

The spike, up 11.8% on-year and the highest since early 2017 after demonetisation, extends a rise in cash demand seen over the past six months and through the last financial year, central bank data showed.

Currency demand had been "somewhat subdued" relative to GDP growth in recent years, setting the stage for a sharper rebound, helped by strong rural demand, said Abhishek Upadhyay, co-head of research at ICICI Securities Primary Dealership.

A cut in the goods and services tax on several daily-use items in September also boosted demand.

Lower interest rates have further supported cash usage, particularly in rural areas with a higher propensity to spend, said Soumya Kanti Ghosh, group chief economic adviser at State Bank of India.

He added that higher prices of precious metals may have also lifted currency in circulation through recycling of gold and silver from households.

The surge, if it persists, could pose a challenge for surplus liquidity in the banking system, which the central bank has tried to maintain to support economic activity.

HDFC Bank expects the liquidity surplus to average around 1% of deposits in the first half of the current financial year, before easing to 0.5% in second half.

"But if CIC continues to remain elevated due to rise in inflation, further acceleration in rural demand, and any impact from state elections, liquidity balances could move towards the lower band of the forecast range," economist Sakshi Gupta said.

The RBI said in March that holding the surplus within a range of 0.6%-1.1% of deposits helps in keeping the spread between weighted average call rate and policy rate narrow.

RBI's infusions have kept banking liquidity in surplus but going forward, while RBI dividend will support it, CIC will drain it further, said Dhiraj Nim, an economist and FX strategist at ANZ.

($1 = 95.2725 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Nivedita Bhattacharjee)

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By Jayshree P Upadhyay and Vibhuti Sharma

MUMBAI, April 28 (Reuters) - Singapore's state-owned investor Temasek and the Canada Pension Plan Investment Board are among 20 investors looking to sell down stakes when India's National Stock Exchange goes public this year, sources familiar with the deal said.

The share sale by India's largest exchange would have a value of $2.75 billion, based on a total valuation for the NSE estimated at $55 billion by a platform that trades its unlisted shares.

It will be one of two large share sales in India this year, along with an issue by billionaire Mukesh Ambani's Reliance Jio Platforms. The NSE has been trying to list since 2016, with key domestic rival BSE Ltd BSEL.NS listing in 2017.

Also among the sellers will be India's state insurer Life Insurance Corporation LIFI.NS, its largest bank State Bank of India SBI.NS and homegrown private equity fund ChrysCapital, the two sources said.

Overall, existing shareholders in the NSE will sell a 5% stake in the IPO, added the sources, who spoke on condition of anonymity to name the investors for the first time, as they were not authorised to talk to media.

In response to Reuters' queries, the NSE said its board has approved an initial public offering through an offer for sale, but declined further comment at this stage.

LIC, SBI and ChrysCapital did not respond to requests for comment. Temasek and CPPIB declined to comment.

The NSE is also the world's most active equity derivative trading platform, with a listing approved this year after a long delay due to litigation with markets regulator the Securities and Exchange Board of India.

A monetary settlement to resolve the litigation is likely, opening the way for the public offer.

With 177,807 shareholders, the NSE is India’s largest unlisted company by number of investors, making the offering exercise more complex.

LIC, SBI, Temasek Holdings, Morgan Stanley and CPPIB are the institutional shareholders.

Monday was the deadline for expressions of interest to sell, sought by merchant bankers as part of the IPO process, both sources said.

NSE will now move on to file its draft prospectus with SEBI by next month, after its financial results are declared.

NSE's quarterly after-tax profit rose 15% to 24.08 billion rupees in the third quarter ended December 31, boosted by improvements in derivatives trading. Its consolidated revenue from operations rose nearly 7% from the previous quarter.

(Reporting by Jayshree P. Upadhyay and Vibhuti Sharma in Mumbai; Editing by Clarence Fernandez)

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Rewrites throughout with comments from post-earnings call

By Nishit Navin

April 22 (Reuters) - India's SBI Life Insurance SBIL.NS said on Wednesday it is well-positioned to handle any potential tightening of regulations on selling policies through banks as it continues to boost sales online and through agents.

India is stepping up efforts to curb misselling of financial products. In February, the central bank proposed draft rules to address such sales through lenders. The secretary at the finance ministry's department of financial services has urged banks to avoid exclusive insurer tie-ups, ET Now reported on Tuesday.

SBI Life, which gets more than 60% of business from the banks, with a substantial portion coming from parent State Bank of India SBI.NS, reported a slowdown in new business growth and a marginal decline in profit on Wednesday.

Analysts had expected business growth to moderate in the March quarter as the Middle East war spiked market volatility, weighing on demand for market-linked insurance products.

The insurer's net profit declined to 8.05 billion rupees ($85.9 million) for the three months ended March, down from 8.14 billion rupees a year earlier, dragged by a one-third rise in operating expenses.

Net premium income rose 16%, driven by growth in renewals and one-time premiums.

SBI Life's annualised premium equivalent sales — a key measure of new business — grew 5.5%, slowing from the 25% growth in the preceding quarter. Four brokerages had expected the firm to clock a growth of 8%.

The value of new business, or expected profit from new policies, dropped about 2% to 16.3 billion rupees while the margin on such business stood at 27.5% as of March-end, among the highest in the sector.

Last week, peer HDFC Life HDFL.NS reported slower new business growth, while ICICI Prudential Life's ICIR.NS profit rose.

($1 = 93.7725 Indian rupees)

(Reporting by Nishit Navin in Bengaluru; Editing by Sonia Cheema and Mrigank Dhaniwala)

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April 21 (Reuters) - State Bank of India SBI.NS:

• STATE BANK OF INDIA - PROMOTES EIGHT OFFICIALS AS DEPUTY MANAGING DIRECTORS EFFECTIVE APRIL 21, 2026

Source text: ID:nNSE4Fm9zT

Further company coverage: SBI.NS

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Updates story from April 16 to add market reaction on Friday in paragraph 4, context in paragraphs 7 and 10

By Nidhi Verma, Jaspreet Kalra and Nimesh Vora

NEW DELHI/MUMBAI, April 16 (Reuters) - India's central bank has urged state-run oil refiners to curb spot dollar purchases and tap a special credit line for their foreign exchange needs, three sources said, reviving measures used earlier in the Ukraine war to ease pressure on the rupee.

A surge in oil prices and heavy foreign portfolio outflows have battered the Indian currency. The rupee has fallen more than 3% to record lows this year, making it Asia's worst-performing major currency.

Using the special credit facility would reduce dollar demand from refiners, helping ease pressure on the rupee, two of the sources said. Refiners are major buyers of dollars to pay for oil imports.

When Indian markets opened on Friday morning, the rupee INR=IN strengthened by 0.4% to 92.80 against the dollar, its strongest level in a week.

The state-run refiners have been asked to access the credit line via the State Bank of India, the sources said. SBI is India's largest bank and is state-backed.

Since the large state-run lender already handles sizeable merchant flows, funneling oil-related FX demand through SBI can help reduce the overall market impact, one of the sources said.

The refiners are also being encouraged to route daily dollar purchases through SBI instead of multiple banks, the source said, because pooling dollar demand with one lender would help better manage the market impact.

All three sources declined to be named as they were not authorised to speak to the media. The Reserve Bank of India and SBI did not immediately respond to emails seeking comment.

The credit line is available to major state-run refiners Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, which together control about half of India's 5.2 million barrels per day of refining capacity.

Refiners can either buy dollars at the RBI reference rate or draw on the credit line for their FX needs, a second source said. The credit line can alleviate immediate dollar demand from the market, supporting the rupee.

None of the refiners responded to emails seeking comment.

Three spot FX traders, separate from the three sources cited earlier, said they had seen an anecdotal decline in the oil companies' activity in the spot market in recent days.

RUPEE STRAIN

The RBI has turned to crisis-era measures, which sources said have been in place for about two weeks, to support the rupee amid pressure linked to the Iran war.

Concerns about spillovers from the conflict helped push the rupee to an all-time low past 95 per dollar in late March.

The central bank has taken other steps to shore up the currency. It has clamped down on arbitrage trades that it said exacerbated market volatility and barred Indian banks from offering corporates non-deliverable forward contracts.

The RBI has also sold dollars from its FX reserves to support the currency.

(Reporting by Nidhi Verma, Jaspreet Kalra and Nimesh Vora; Editing by Mark Potter and Kate Mayberry)

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By Nidhi Verma, Jaspreet Kalra and Nimesh Vora

NEW DELHI/MUMBAI, April 16 (Reuters) - India's central bank has urged state-run oil refiners to curb spot dollar purchases and tap a special credit line for their foreign exchange needs, three sources said, reviving measures used earlier in the Ukraine war to ease pressure on the rupee.

A surge in oil prices and heavy foreign portfolio outflows have battered the Indian currency. It has fallen more than 3% to record lows this year, making it Asia's worst-performing major currency.

Using the special credit facility would reduce dollar demand from refiners, helping ease pressure on the rupee, two of the sources said. Refiners are major buyers of dollars to pay for oil imports.

The state-run refiners have been asked to access the credit line via the State Bank of India, the sources said. SBI is India's largest bank and is state-backed.

All three sources declined to be named as they are not authorised to speak to the media. The Reserve Bank of India and SBI did not immediately respond to emails seeking comment.

The credit line is available to major state-run refiners Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, which together control about half of India's 5.2 million barrels per day of refining capacity.

The refiners are also being encouraged to route daily dollar purchases through SBI instead of multiple banks, one of the sources said.

With SBI already handling sizeable merchant flows, funneling oil-related FX demand through SBI can help reduce the overall market impact, this person added.

Refiners can either buy dollars at the RBI reference rate or draw on the credit line for their FX needs, a second source said.

None of the refiners responded to emails seeking comment.

Three spot FX traders, separate from the three sources cited earlier, said they had seen an anecdotal decline in the oil companies' activity in the spot market in recent days.

RUPEE STRAIN

The RBI has turned to crisis-era measures, which sources said have been in place for about two weeks, to support the rupee amid pressure linked to the Iran war.

Concerns about spillovers from the conflict helped push the rupee to an all-time low past 95 per dollar in late March.

The central bank has taken other steps to shore up the currency. It has clamped down on arbitrage trades that it said exacerbated market volatility and barred Indian banks from offering corporates non-deliverable forward contracts.

The RBI has also sold dollars from its FX reserves to support the currency.

The rupee has strengthened following the bank's measures, recovering about 2% from its record low. It was last quoted at 93.20 per dollar on Thursday.

(Reporting by Nidhi Verma, Jaspreet Kalra and Nimesh Vora. Editing by Mark Potter)

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By Bharath Rajeswaran and Nishit Navin

BENGALURU, April 15 (Reuters) - Indian banks are expected to report a steady profit rise in the January-March quarter, four brokers said, aided by credit growth and liquidity buffers, while higher bond yields and forex arbitrage curbs weighed on treasury income.

Private banks are likely to report about 8%-12% on-year profit rise, with HDFC Bank HDBK.NS and ICICI Bank ICBK.NS scheduled to post their results on April 18.

State-run lenders may report an advance of about 2%, similar to the previous two quarters, aggregate estimates from Motilal Oswal, Jefferies, PhillipCapital, Elara Capital and Yes Securities showed.

Private banks' higher core operating income should cushion margin pressure, while bond yields are expected to weigh more heavily on state-run banks' treasury gains.

After a slow start to the fiscal year 2026, loan demand picked up in the third quarter.

The government's move to cut goods and services tax encouraged people to spend more, while the Reserve Bank of India's slashing of the cash reserve ratio gave banks more money to lend.

Top private lender HDFC Bank posted a loan growth of 12% in the March quarter, while ICICI Bank and state-owned State Bank of India SBI.NS could log 14.2% and 14.5%.

"We estimate banks to post around 12% to 13% loan growth in FY2027, aided by steady growth in retail and MSME loans and improvement in corporate loans," said Vishal Narnolia, assistant vice-president, research, ICICI Securities.

However, in contrast to the first nine months of FY2026, yields hardened in the March quarter, which will limit banks' profitability, said Narnolia.

Curbs on forex arbitrage further limited trading income at bigger lenders such as SBI, ICICI, HDFC and Axis Bank AXBK.NS.

Quarterly updates from top lenders indicate a high-single-digit to low-double-digit jump in deposits, similar to the previous on-year quarter.

Strong year-end inflows and healthy traction in retail deposits are likely to aid deposits, according to brokerages.

The bank index .NSEBANK fell 15.6% in the March quarter, slightly more than the 14.5% drop in the benchmark Nifty 50 index .NSEI.

​

(Reporting by Nishit Navin and Bharath Rajeswaran; Editing by Harikrishnan Nair)

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April 7 (Reuters) -

• STATE BANK OF INDIA HAD ABOUT $5 BILLION OF BETS AGAINST THE RUPEE THAT WERE IMPACTED BY THE REGULATOR’S CRACKDOWN ON POTENTIAL SPECULATORS - BLOOMBERG NEWS

• STATE BANK OF INDIA IS ESTIMATING LOSSES OF ABOUT 3 BILLION RUPEES FROM THE FORCED UNWINDING OF THESE TRADES - BLOOMBERG NEWS

Source text: https://tinyurl.com/2nubcctj

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, March 31 (Reuters Breakingviews) - India's new cult of equity investing is getting tested. As war in the Middle East ravages stocks, Securities and Exchange Board of India Chair Tuhin Kanta Pandey is urging mom-and-pop investors to "remain patient". Unlike in past crises the $5 trillion market is cushioned by strong domestic flows, but a potential rise in inflation and deposit rates could upset that.

The benchmark Nifty 50 Index .NSEI is down 11% this year and foreigners have dumped shares worth over $13 billion so far in 2026, following a record $19 billion of selling in 2025. Yet valuations remain frothy: the MSCI India index .MIIN00000PIN is trading at par with its 10-year average of 20 times forward earnings, nearly double the MSCI Emerging Markets .dMIEF00000PUS multiple.

The South Asian country's stocks are propped up by steady flows from 125 million Indians investing directly in equities and 53 million through mutual funds, many of whom first entered the market during the pandemic. A $250,000 annual limit on overseas transfers by individuals and a tax regime that makes equity returns more lucrative than debt support the case for local buying of Indian stocks too.

Yet cracks are appearing in that trusty pool of funds. In 2025 net flows into equity and share-focused hybrid funds offered by local asset managers shrank 9% from a peak of 4.5 trillion rupees ($48 billion) in the previous year, per brokerage Kotak Institutional Equities.

Competition from other assets could rise, too. As bullion prices surged late last year, Indians known for their love of the yellow metal piled into index funds linked to bullion and pushed up inflows to levels matching equity-focused schemes in January. A swifter depreciation in the rupee's value could also prompt them to deploy what money they can in other markets.

If the fighting in the Middle East prolongs, worries about India's external finances and a weak rupee INR=IN will add to the selling pressure. Fuel and food supply disruptions could eventually push inflation much higher than the current level of 3.2% and prompt the central bank to hike interest rates.

Assuming the war ends within the next month, Bernstein analysts see India's equity benchmark falling 0.6% by the end of 2026. That's disappointing for first time investors accustomed to year-on-year gains. Meanwhile, the return from a one-year deposit with State Bank of India SBI.NS, taxed at the top rate of 30%, works out to 4.4% and could rise to 4.55% if the lender raises the yield by 25 basis points. Faced with that reality, the small impatient investor could yet shake the stock market.

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CONTEXT NEWS

Securities and Exchange Board of India Chair Tuhin Kanta Pandey on March 14 advised the country's mom-and-pop investors to not react sharply to volatility in capital markets. "For retail investors, the best strategy would be to remain patient," he said, adding that markets have historically recovered after major global disruptions.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

March 20 (Reuters) - State Bank of India SBI.NS:

• INCOME TAX DEPARTMENT RAISES DEMAND OF 63.38 BILLION RUPEES FOR AY 2023-24

Source text: ID:nBSE5H5NRF

Further company coverage: SBI.NS

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Adds IPO details, company background from paragraph 5

March 19 (Reuters) - India's largest asset manager SBI Funds Management filed for an initial public offering, where its existing investors State Bank of India SBI.NS and Amundi AMUN.PA will together offload a 10% stake, its draft prospectus showed on Thursday.

In their second attempt to list the asset manager, SBI, India's largest lender, will sell a 6.3% stake, while Europe's biggest fund manager, Amundi, will sell a 3.7% stake.

The bank currently owns a 61.8% stake, while Amundi holds 36.3%. SBI Funds will not be issuing any new shares in the IPO.

SBI Funds Management has a market share of more than 15% in India's mutual fund market, where it manages assets worth 12.5 trillion rupees ($134.15 billion).

Asset managers such as SBI Funds, recently-listed ICICI Prudential Asset Management Company IICL.NS, and HDFC Asset Management HDFA.NS benefited from strong inflows into mutual funds last year, particularly from retail investors.

For the nine months to December 2025, SBI Funds posted a 26% climb in profit to 24.32 billion rupees on total revenue that rose 23% to 32.51 billion rupees.

The IPO would be the third for an SBI subsidiary, after the listing of SBI Cards SBIC.NS and SBI Life Insurance SBIL.NS.

In December, ICICI Prudential Asset Management, the country's second-largest asset manager, became India's fourth most-subscribed IPO. The stock surged over 23% on its trading debut and is currently up about 8.5% since listing.

Kotak Mahindra Capital, Axis Capital, BofA Securities and HSBC are among the nine bankers for the SBI Funds IPO.

($1 = 93.1810 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru, additional reporting by Nishit Navin; Editing by Devika Syamnath)

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March 17 (Reuters) - State Bank of India SBI.NS:

• STATE BANK OF INDIA - RAISED 60.51 BILLION RUPEES AT COUPON RATE OF 7.05%

• STATE BANK OF INDIA - FUND RAISE VIA TIER 2 BOND ISSUANCE FOR CURRENT FINANCIAL YEAR

Source text: ID:nnAZN4SLR57

Further company coverage: SBI.NS

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By Dharamraj Dhutia

MUMBAI, March 16 (Reuters) - State Bank of India SBI.NS will seek to raise as much as 75 billion rupees ($811.4 million) this week, three bankers said on Monday, marking the second rupee debt sale this fiscal year by the country's biggest lender.

SBI will issue the Basel III-compliant Tier-II bonds with a 10-year maturity and has invited bids on Tuesday, the bankers, who are familiar with the matter, said.

These bonds are debt instruments issued by banks to strengthen their Tier II capital, a component of the regulatory capital required under the Basel III framework implemented by the Reserve Bank of India.

SBI did not immediately respond to a Reuters request for comment, while the bankers declined to be identified as they are not authorised to speak to the media.

The bonds will have a call option at the end of five years, and at the end of every year thereafter, the bankers added.

They also said that mutual funds are likely to bid aggressively for the issue as it would be priced in line with the five-year paper.

In October, SBI had raised 75 billion rupees through 10-year Tier-II bonds at a coupon rate of 6.93%, which was only 30 basis points above the annualized 10-year government bond yield.

Other state-run banks that have raised funds via this route include Bank of India BOI.NS, Indian Overseas Bank IOBK.NS and Canara Bank CNBK.NS, while ICICI Bank ICBK.NS is the lone private lender to opt for Tier-II bonds twice in this financial year.

"Better pricing for this issue could also nudge a couple of state-run lenders to opt for this route," one of the bankers said.

($1 = 92.4360 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)

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