Earnings preview: ICICI Bank could report stable Q3 earnings, CEO continuation key monitorable

by Hansraj Agrawal | Jan 16, 2026 | Business

The second largest private sector lender, ICICI Bank, is likely to report stable growth in its core business in Q3FY26, but markets will keenly eye whether its incumbent MD, CEO Sandeep Bakhshi will continue as the bank chief as his tenures ends in October 2026, analysts say. The bank is set to report its Q3FY26 earnings Saturday.

Bakhshi has been the chief of ICICI Bank since October 15, 2018. For the re-appointment of a MD, CEO or whole-time Director (WTD) in private sector banks, the lender must submit the complete application to the Reserve Bank of India (RBI) at least six months before the expiry of the incumbent’s term of office. Private banks typically submit CEO re-appointment application well before six months deadline, banking industry experts say.

“ICICI Bank is likely to post yet another steady quarter, with steady loan growth and deposit growth. We expect broadly steady/improving net interest margin (NIM), largely benefiting from CRR (cash reserve ratio) cut impact. That said, we monitor the commentary on future trends,” said Elara Securities in a report. “Slippages are likely to rise marginally sequentially, driven by agriculture slippages. Commentary on softer aspects (management continuation) will be the key variable, going forward,” it added.

ICICI Bank had reported a modest 5 per cent year-on-year (y-o-y) growth in Q2FY26 with standalone net profit at Rs 12,359 crore amid a decline in provisions, including towards non-performing assets (NPAs) and further improvement in asset quality.

According to brokerage Axis Securities, ICICI Bank’s business growth is expected to remain soft and credit-deposit (CD) ratio could remain steady. Its NIM, per Axis Securities, are expected to move with a mild positive bias. The bank management’s commentary on overall growth, especially in the unsecured book will be key monitorables, the brokerage said.

BNP Paribas Research, meanwhile, says ICICI Bank’s balance sheet remains protected by heavy excess provisioning and healthy capitalisation. It currently also enjoys higher share of low cost deposits, and therefore, a funding cost edge over its nearest competitors. This has helped the bank gather loan market share in prime categories.

“ICICI Bank’s annualised ROE has broken through the 18% barrier in recent quarters, partly aided by low credit costs. It is trading at 2.3x 1-year forward core P/BV and is still attractive vis-à-vis what we see as a sustainable core ROE of 17-18%,” BNP Paribas said. ENDS

Published on January 16, 2026

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RBI ombudsman authorised to clear compensation up to ₹30 lakh

by Hansraj Agrawal | Jan 16, 2026 | Business

Additionally, the RBI Ombudsman will also have the power to provide a compensation of up to ₹3 lakh for the loss of the complainant’s time, expenses incurred, harassment/mental anguish suffered, etc., if any, by the complainant.
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There will be no limit on the amount over a dispute that can be brought by a complainant against a regulated entity before an RBI Ombudsman, for which the Ombudsman or his Deputy can facilitate a settlement or pass an Award, according to the Reserve Bank– Integrated Ombudsman Scheme (RB-IOS), 2026.

However, for any consequential loss suffered by the complainant, the RBI Ombudsman will have the power to provide a compensation of up to ₹30 lakh.

Revised rules

The revised RB-IOS, which will be applicable to all banks, non-banking financial companies, non-bank prepaid payment instruments issuers, and credit information companies, that will come into force from July 1, 2026, is expected to strengthen the Reserve Bank Ombudsman framework and bring about further efficiency in resolution of complaints, per a Central bank statement.

“It aims to provide a cost-effective, expeditious, non-adversarial alternate grievance redress mechanism for the resolution of complaints against regulated entities covered under the Scheme,” RBI said.

The Central bank can appoint one or more of its officers as RBI Ombudsman and Deputy Ombudsman, to carry out the functions entrusted to them under the Scheme.

The appointment of RBI Ombudsman or Deputy Ombudsman, as the case may be, will be made generally for a period of three years at a time.

In order to expedite disposal of the complaints, the RBI Ombudsman may hold sittings at such places and in such manner as may be considered necessary and proper in respect of a complaint.

The Reserve Bank will establish the Centralised Receipt and Processing Centre at one or more places, as may be decided by it, to receive the complaints filed under the scheme and process them.

Further, the complaints under the scheme made online will be registered on the portal (https://cms.rbi.org.in). Complaints received through e-mail and physical form, including postal and hand-delivered complaints, shall be addressed and sent to the Centralised Receipt and Processing Centre of the Reserve Bank.

Published on January 16, 2026

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SEBI to sharpen focus on capital formation, market depth: Tuhin Kanta Pandey

by Hansraj Agrawal | Jan 16, 2026 | Business

SEBI Chairman Tuhin Kanta Pandey

India’s market regulator is preparing a fresh round of policy and market-structure reforms aimed at sustaining capital formation and reducing friction for issuers and investors as capital markets assume a larger role in funding economic growth, Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey said on Friday.

Speaking at SEBI’s Samvad 2026 symposium, Pandey said the regulator’s focus going ahead will be on easing fund-raising processes, deepening debt and private capital markets, widening investor participation and strengthening market infrastructure through technology-led measures.

“Indian markets should be rigorous in standards, but reasonable in processes,” Pandey said, outlining SEBI’s regulatory philosophy of enabling growth while safeguarding market integrity.

Pandey said SEBI is continuing its review of key regulations, including listing obligations, settlement norms and frameworks governing mutual funds and stock brokers, to make them more coherent and contemporary. Recent and ongoing measures include streamlining IPO processes, simplifying compliance pathways and recommending changes to minimum public shareholding thresholds and timelines, particularly for large issuers.

For companies tapping markets, SEBI has also introduced practical flexibilities, including facilitating compliance with lock-in norms even when shares are pledged and allowing founders to retain certain ESOPs post-listing without compromising disclosure standards. “Access to capital must be efficient and predictable,” Pandey said.

Debt deepening

Deepening market depth, especially in debt, remains a priority. Pandey said SEBI has lowered thresholds under the electronic book mechanism and expanded its scope to include REITs and InvITs. For foreign portfolio investors, SEBI is moving towards unified registration and simplified documentation under the SWAGAT–FIs framework. “We are also progressing towards fully paperless, digitally signed onboarding for FPIs, reducing compliance friction while maintaining regulatory oversight,” Pandey said.

Pandey said expanding participation remains critical to sustaining growth. Distributor incentives have been redesigned to encourage onboarding of first-time investors from smaller towns and increase participation by women. SEBI has also eased KYC norms for non-resident Indians and is considering greater use of shared KRA data to reduce repetitive documentation

Published on January 16, 2026

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India’s sugar production up 22%, recovery in UP higher but down in Karnataka

by Hansraj Agrawal | Jan 16, 2026 | Business

India’s sugar production during the 2025-26 season (October-December) reached 158.85 lakh tonnes (lt) until January 15, up by 22 per cent from 130.60 lt a year ago, according to data compiled by the National Federation of Cooperative Sugar Factories Ltd (NFCSF), the industry body of cooperatives.

While there is a substantial jump in Maharashtra, other States have marginal increase over previous year. Bihar, Punjab, Haryana and Andhra Pradesh are the few States which have reported lower production.

Sugar production in Maharashtra was reported at 64.60 lt, over 50 per cent up from 43.05 lt year-ago. But in Uttar Pradesh, India’s largest sugarcane producer, the production is up by less than 7 per cent at 45.70 lt from 42.85 lt. Karnataka too has produced 30.70 lt against 27.10 lt, up by about 13 per cent. These three top States together share nearly 89 per cent in the total sugar production in the country so far this season.

On the production update, NFCSF said that 519 operating sugar mills have crushed 1,763.74 lt of sugarcane with a recovery rate of 9.01 per cent as of January 15 in current season as against 514 mills had crushed 1,484.04 lt of cane with a recovery rate of 8.80 per cent in the corresponding period a year earlier. Recovery rate is the actual sugar produced from sugarcane – 9 per cent means 9 kg sugar out of 100 kg sugarcane.

Export quota reallocation

The recovery in Karnataka is lower this year at 8.05 per cent against 8.50 per cent year-ago and marginally up at 9 per cent against 8.80 per cent in Maharashtra. But in Uttar Pradesh, the recovery is much higher at 9.80 per cent from 9.05 per cent.

Meanwhile, the government issued the third order reallocating of export quota in current season as some mills had applied for exchanging those permits with domestic monthly release quantity of other mills.

As many as 16 mills have surrendered their export quota to the tune of 52,270 tonnes by exchanging with domestic quotas of 13 factories in the third Order. In the earlier two orders 29,174 tonnes and 85315 tonnes were allowed to be exchanged by the government.

The Food Ministry, in November 2025, notified export of 15 lt of sugar by allocating mill wise quantity under a fixed formula. Factories are allowed to complete the shipment by September 30.

Published on January 16, 2026

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Gems, jewellery exports to US plunge 44% in Apr-Dec on tariff woes

by Hansraj Agrawal | Jan 16, 2026 | Business

Prolonged uncertainty around tariffs could adversely impact the long-term viability of the US market for Indian jewellery exporters he said.
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SHAILESH ANDRADE

Hit by the punitive tariff, gem and jewellery exports to the US plunged 44 per cent in the first nine months this fiscal to $3.86 billion against $6.95 billion logged in the same period last year.

Exports to the US halved in December, reflecting the continued impact of tariff-related pressures and subdued discretionary demand, according to the provisional data released by Gem and Jewellery Export Promotion Council data.

Kirit Bhansali, Chairman, GJEPC, said the US remains India’s largest export destination, accounting for nearly 30 per cent of gem and jewellery exports and the sharp decline in shipments to US is a matter of serious concern.

Prolonged uncertainty around tariffs could adversely impact the long-term viability of the US market for Indian jewellery exporters, he said.

Overall flat performance

However, overall gem and jewellery exports between April and December saw little movement from year ago at $20.75 billion, while registering a growth of 4 per cent in rupee terms, supported by currency movement and steady trade flows.

The near-flat performance highlights market stabilisation, with strong growth in jewellery exports—particularly gold, silver and platinum jewellery—offsetting moderation in cut and polished diamonds and lab-grown diamonds.

Exports to the United Arab Emirates rose 28 per cent y-on-y to $6.89 billion, while shipments to Hong Kong increased 28 per cent to $4.25 billion. Exports to Australia also recorded strong growth of 40 per cent to $278 million, underscoring the growing importance of diversified and FTA-supported markets.

Plain jewellery shipments up

Kirit Bhansali, Chairman, GJEPC, said the plain gold jewellery exports recorded a value growth of 8 per cent to $3.82 billion as gold bar prices rose by 52 per cent compared to the same period last year, resulting in higher export realisations even though export volumes moderated.

Cut and polished diamond exports between April and December declined 8 per cent at $8.99 billion largely due to tariff-related pressures and reduced demand from the United States.

Gold jewellery exports grew 7 per cent y-on-y to $8.67 billion during the period. Silver jewellery exports surged 44 per cent to $1.11 billion. Polished lab-grown diamond exports declined 10 per cent y-on-y to $840 million.

Published on January 16, 2026

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SEBI proposes fund netting for FPIs to cut funding costs

by Hansraj Agrawal | Jan 16, 2026 | Business

SEBI said the existing framework often leaves FPIs “underinvested” for at least a day
| Photo Credit:
HEMANSHI KAMANI

The Securities and Exchange Board of India (SEBI) on Friday proposed permitting netting of funds for cash market transactions by foreign portfolio investors (FPIs), a move aimed at reducing funding costs and improving operational efficiency, particularly during high-volume trading days such as index rebalancing.

Under the proposal, FPIs would be allowed to use sale proceeds from cash market transactions on a given day to fund purchases executed on the same day, thereby meeting only their net fund obligation instead of settling all trades on a gross basis. Public comments have been invited until February 6, 2026.

Currently, FPIs are required to bring in full funds for purchases irrespective of sales on the same day, even though custodians eventually settle their obligations with clearing corporations on a net basis. This results in higher liquidity requirements and funding costs for investors.

SEBI said the existing framework often leaves FPIs “underinvested” for at least a day. “For example, suppose an FPI has purchased stock A worth ₹100 crore and sold stock B worth ₹100 crore. The FPI would still need to make available ₹100 crore towards the purchase,” the regulator said, adding that the amount could otherwise have been adjusted against sale proceeds.

Funding costs

The issue becomes more pronounced during index rebalancing, when FPIs typically see large simultaneous inflows and outflows. “The cost of funding the same increases significantly,” SEBI said, citing feedback from market participants.

However, the proposed netting will be limited. Only “outright” transactions, where an FPI has either a buy or a sell position in a security in a settlement cycle, but not both, will be eligible for fund netting. Trades involving both buy and sell positions in the same security will continue to be settled on a gross basis, effectively excluding intra-day round-tripping from the benefit.

SEBI clarified that if the value of outright sales exceeds outright purchases, the excess sale proceeds cannot be used to fund other buy obligations. Settlement of securities will also continue on a gross basis, and charges such as securities transaction tax and stamp duty will remain unchanged.

Settlement risk

The regulator also acknowledged concerns raised by custodians and clearing corporations, including the risk of higher trade rejections and increased settlement risk shifting to custodians. On this, SEBI said robust safeguards already exist. “Necessary safeguards by way of default waterfall mechanism, Core Settlement Guarantee Fund (Core SGF), etc., have been put in place,” it said, adding that netting could, in fact, reduce the likelihood of fund-related trade rejections.

SEBI said that there would be no change in the settlement process between custodians and clearing corporations, and that custodians would be required to upgrade systems to support the new framework.

The proposal will require amendments to regulatory frameworks issued by SEBI and the Reserve Bank of India. If implemented, the regulator said the move would lower funding costs for FPIs without increasing market risk, as non-outright transactions would continue to be settled on a gross basis to prevent undue market influence.

Published on January 16, 2026

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