IndusInd Bank has appointed Mrs. Pragati Gondhalekar as Head – Internal Audit and Senior Management Personnel, effective September 1, 2025. With over 27 years of global audit and consulting experience, she has previously held senior roles at Deutsche Bank, L&T Financial Services and PwC.

Banks are grappling with a surge in fraud linked to deposit accounts, surpassing loan accounts in risk. The rise of mule accounts used for money laundering has prompted stricter KYC processes and enhanced transaction monitoring. The RBI's MuleHunter.AI initiative and increased staff training aim to combat this growing threat, as banks balance customer acquisition with fraud prevention.

The government is considering establishing special courts to expedite the resolution of bank fraud cases, with discussions underway between the law and finance ministries and banks. This move aims to accelerate disposal, improve financial recovery, and reduce legal costs for lenders. Recent data reveals significant fraud cases reported by banks, prompting the need for a faster judicial mechanism.

Bank of Baroda has announced a reduction of over 0.25% in interest rates for select car and mortgage loan products, effective immediately. This move, coinciding with the festive season, aims to boost credit growth amidst calls for economic expansion. The floating car loan interest rate now starts at 8.15%, while loan against property rates are down to 9.15%.

For Indian banking, the focus will now be on adjusting to the new interest rate environment and leveraging the anticipated increase in liquidity to improve their financial performance in the coming months. While the initial quarter has presented challenges, the outlook for a rebound in net interest margins could signal a turning point for the industry.

The Reserve Bank of India (RBI) is considering stricter rules for shadow lenders, aiming to curb overlapping business activities between parent companies and their subsidiaries. This move aligns with existing regulations proposed for banks and seeks to mitigate risks within the non-banking finance sector.

Indian banks are expected to cut dividend payouts by 4.2% in fiscal year 2026. This marks the first reduction in four years. S&P Global Market Intelligence forecasts this decline. HDFC Bank and Bank of Baroda may see dividend cuts. State Bank of India's dividend is expected to remain stable. ICICI Bank might increase its dividend per share.

Reserve Bank of India is likely planning to permit lenders to remotely lock mobile phones of borrowers who default on their loans. This move aims to reduce bad assets but raises concerns about consumer rights. The Reserve Bank of India is expected to update its Fair Practices Code, introducing guidelines on phone-locking mechanisms while mandating prior consent and data protection.

Over the last six months, ICICI Bank has slashed its home loan rate by more than 105 basis points to 7.7%, while HDFC Bank has cut it by 80 bps to 7.9% over the same stretch. ICICI Bank’s rate, currently the lowest among private lenders, is available to existing customers who have pre-approved digital home loans and strong credit scores.