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Big turnaround story! Public sector banks led India’s banking sector to record-breaking profits in FY25, with industry earnings rising nearly 14-fold over a decade to Rs 3.71 lakh crore, driven by lending income, treasury gains and reduced provisions for non-performing assets.Government-owned banks demonstrated remarkable growth with a 26% increase in profits to Rs 1.83 lakh crore, closing in on private banks, which recorded a modest 7% growth to Rs 1.87 lakh crore, according to an ET analysis.State Bank of India emerged as the most profitable bank with net earnings of Rs 70,900 crore, with HDFC Bank following at Rs 67,347 crore, and ICICI Bank achieving Rs 47,227 crore in FY25. The overall private sector bank profits were affected by significant declines in earnings at IndusInd Bank and IDFC First Bank.The remarkable financial performance follows the cleanup initiative that began in 2015 with the asset quality review (AQR) under former central bank governor Raghuram Rajan. This led PSU banks to record substantial losses over three successive years, with bad loans exceeding 8% of advances in FY16.
Sharp Post-Covid Rebound
To support PSU banks’ growth, the government provided capital injection of Rs 3.15 lakh crore since the 2015 AQR, according to the recently published Economic Capital Framework report.Motilal Oswal Finance Services’ banking report has said: “Banks are prioritising asset quality over growth, with stricter credit filters, higher CIBIL score thresholds, and conservative underwriting—especially in retail segments… PSU banks’ disbursements remain modest while private players have gained share.”In fiscal year 2016, commercial banks collectively posted a net profit of Rs 24,854 crore, primarily attributed to the strong performance of private sector banks. Lenders then initiated a comprehensive balance sheet restructuring, prompted by regulatory guidance and supported by updated insolvency legislation designed to swiftly recover substantial funds locked in debt-laden assets.“The key driver of the impressive rise in profits is the stable credit growth in FY25 on top of the good growth in FY24,” said VK Vijayakumar, chief investment strategist, Geojit Investments. The aggregate net profit of all commercial banks stood at Rs 3.19 lakh crore in the previous year. “A major concern at the beginning of the year was deposits lagging credit growth. But as the year progressed, the deposit growth converged with credit growth,” he added.The AQR implementation resulted in enhanced recognition of non-performing loans and increased provisions. The subsequent introduction of the Insolvency and Bankruptcy Code strengthened banks’ recovery mechanisms and negotiating position with defaulters. According to IBBI statistics, creditors have recovered approximately Rs 3.9 lakh crore across 1,194 cases through March 2025.Regarding stressed assets, Subha Sri Narayanan, director, Crisil Ratings, says, “Gross non-performing assets (NPAs) have bottomed at 2.4% as of March 31, 2025, and are seen rangebound at 2.4-2.6% by March 2026. While corporate NPAs would remain low on strengthened risk management of banks, and robust balance sheets of corporates.”Discussing FY26 net interest margin (NIM) prospects, Vishal Narnolia, analyst, ICICI Direct, noted, “In the first half, NIMs are expected to decline around 15 bps as there is a strong probability of policy rate cut which the banks will have pass to EBLR-linked borrowers.” He indicated that deposit repricing in the second half should support margin recovery, with overall margins likely decreasing by approximately 10 bps in FY26.Most banks maintain NIMs—the gap between interest income and expense—between 3% and 4%. Vijayakumar of Geojit confirms the banking sector’s positive outlook.He cautioned that “However, there are some concerns arising out of rising delinquencies in unsecured loans, credit cards and stress in the microfinance segment which can moderate profit growth in FY26.”
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Modi’s Asia Double Play: Japan Now, China Next — What India Wants (and Risks)
ndia has kicked off a tightly choreographed Asia tour at a delicate moment. Prime Minister Narendra Modi is in Tokyo first, meeting Japan’s Prime Minister Shigeru Ishiba, before flying to Tianjin for the SCO summit hosted by China. The sequencing matters: Japan is a steadfast strategic and economic partner; China is a rival with whom India still needs a functional modus vivendi. The backdrop? Up to 50% US tariffs on Indian exports, which raise the premium on diversified trade and investment ties. ReutersAP NewsThe Times of IndiaThe Guardian Why Japan first Tokyo and New Delhi are doubling down on a “special strategic and global partnership” built over two decades. Expect deliverables in economic security (critical minerals, supply chains), high-tech collaboration, and infrastructure. Reports suggest the leaders are setting a decade-long joint vision and pushing private-sector investment goals alongside people-to-people exchanges […]
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[ad_1] India’s GDP has more than doubled in the last decade, and experts believe that this has trickled down to the poorest. (AI image) Marking a big achievement over the last decade, extreme poverty in India has dropped substantially from 27.1% in 2011-12 to 5.3% in 2022-23, according to the latest World Bank data. The remarkable progress under the Narendra Modi government has come despite the World Bank raising its poverty threshold to $3 per person per day from $2.15 per person per day earlier.Incidentally, India’s huge reduction in extreme poverty comes at a time when globally there has been an increase in the number of people below the poverty line. According to a government fact sheet, India has emerged a statistical outlier in the positive direction.The latest data is being seen as a boost in the government’s economic growth […]
Ayodhya land prices: Circle rates revised first time in 8 years; soar up to 200%
[ad_1] For the first time in eight years, Ayodhya has seen a sharp revision in its circle rates, with property prices rising between 30% and 200% across various parts of the district, officials told PTI.The prices are particularly steep within a 10-kilometre radius of the Ram Janmabhoomi Temple, an area witnessing a real estate boom fuelled by religious tourism and rapid infrastructure growth. Here, circle rates have jumped over 150%, pushing land values in the prime zone to Rs 26,600–27,900 per square metre, compared to Rs 6,650–6,975 earlier.Shanti Bhushan Chaubey, sub-registrar of Sadar (Faizabad) tehsil, said the hike followed a proposal submitted last September. “After addressing objections, the new circle rates were approved by District Magistrate Tikaram Funde and have now been enforced,” he said.According to Chaubey, the sharpest hikes were recorded in areas with the most land activity. “Localities […]
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[ad_1] China’s export growth lost momentum in May, rising 4.8% year-on-year, a sharp slowdown from the 8.1% surge recorded in April, as per the customs data released on Monday.The deceleration came amid a sharp drop in shipments to the United States, down 35% year-on-year, as tensions between the two economic giants continued to cloud trade prospects.The figures were released just hours ahead of another round of US-China trade negotiations scheduled for later in the day, in London. These talks come after a phone call between US President Donald Trump and Chinese President Xi Jinping last week. Zichun Huang of Capital Economics anticipated exports growth to revive in June, thanks to a 90-day suspension on most of the tariffs the two countries have imposed on each other.China’s imports also fell in May, down 3.4% year-on-year, leaving the country with a trade […]
Tata Motors future plans: Rs 33,000-35,000 crore investment to boost passenger vehicles; hoping to lead in EV segment
[ad_1] Automaking giant Tata Motors is planning massive investment plans for the future, earmarking Rs 33,000 crore to Rs 35,000 crore for FY 26-30 on product actions. The Mumbai-headquartered company is targeting 30 product actions, including the launch of seven new models, as it looks to sharpen its competitive edge in India’s fast-evolving passenger vehicle (PV) market.As part of its long-term strategy, the automaker aims to secure a 16% market share, including electric vehicles (EVs), by FY27, rising to 18–20% over the next few years. Tata Motors expects the domestic PV industry to hit annual sales of 60 lakh units by 2030 and is positioning itself to ride that wave with a refreshed and expansive portfolio.“Looking ahead, we will strengthen our portfolio by FY30...7 new nameplates and 23 product refreshes will holistically enhance the portfolio,” the company told analysts in […]
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US Tariffs vs. India’s Trade Diplomacy: How New Alliances Are Shaping
India’s global trade playbook has shifted abruptly in 2025. The US recently imposed tariffs as high as 50% on Indian exports, citing New Delhi’s continued oil imports from Russia. The immediate fallout was brutal: the rupee sank to a record low, and Indian markets felt the shock. For a country that built its post-1991 trajectory on closer US ties, this tariff punch could have been destabilising. Instead, India is doubling down on multi-alignment diplomacy — diversifying trade and diplomatic engagement with Japan, China, Russia, and the SCO bloc. Why tariffs hit hard The US remains a top destination for Indian goods — from IT services to textiles. Tariffs of this magnitude erode competitiveness and raise uncertainty for exporters. Analysts warn of job impacts in labour-intensive sectors. The rupee’s plunge to historic lows only underscored the vulnerability. India’s counter-strategy Japan: Securing […]
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Luxury skincare expansion: L’Oreal acquires majority stake in Medik8; announces 1 billion Euro deal
[ad_1] Cosmetics maker L’Oreal agreed to acquire a majority stake in British skincare brand Medik8, in a strategic move to strengthen its presence in the booming skincare market. The French beauty giant announced the deal on Monday, though financial terms were not disclosed.The transaction, which sees UK-based private equity firm Inflexion selling its majority holding, reportedly values Medik8 at around 1 billion Euro, according to a source familiar with the matter. Inflexion will retain a minority share, while L’Oreal has secured the option to eventually buy out all remaining shareholders, Reuters reported.“We are delighted to welcome Medik8 to the L’Oréal family. As a premium skincare range, with high levels of proven efficacy at an accessible price point, Medik8 perfectly complements our existing skincare portfolio,” Cyril Chaupuy, president of L’oreal Luxe said.“This acquisition further strengthens L’Oreal’s luxe portfolio, adding a premium […]
270 million pulled out of poverty! How Modi government achieved a remarkable dip in extreme poverty & what’s the road ahead? Explained
[ad_1] India’s GDP has more than doubled in the last decade, and experts believe that this has trickled down to the poorest. (AI image) Marking a big achievement over the last decade, extreme poverty in India has dropped substantially from 27.1% in 2011-12 to 5.3% in 2022-23, according to the latest World Bank data. The remarkable progress under the Narendra Modi government has come despite the World Bank raising its poverty threshold to $3 per person per day from $2.15 per person per day earlier.Incidentally, India’s huge reduction in extreme poverty comes at a time when globally there has been an increase in the number of people below the poverty line. According to a government fact sheet, India has emerged a statistical outlier in the positive direction.The latest data is being seen as a boost in the government’s economic growth […]
Ayodhya land prices: Circle rates revised first time in 8 years; soar up to 200%
[ad_1] For the first time in eight years, Ayodhya has seen a sharp revision in its circle rates, with property prices rising between 30% and 200% across various parts of the district, officials told PTI.The prices are particularly steep within a 10-kilometre radius of the Ram Janmabhoomi Temple, an area witnessing a real estate boom fuelled by religious tourism and rapid infrastructure growth. Here, circle rates have jumped over 150%, pushing land values in the prime zone to Rs 26,600–27,900 per square metre, compared to Rs 6,650–6,975 earlier.Shanti Bhushan Chaubey, sub-registrar of Sadar (Faizabad) tehsil, said the hike followed a proposal submitted last September. “After addressing objections, the new circle rates were approved by District Magistrate Tikaram Funde and have now been enforced,” he said.According to Chaubey, the sharpest hikes were recorded in areas with the most land activity. “Localities […]
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