Government launches ₹20,000 crore credit guarantee scheme for MFIs

by Hansraj Agrawal | Mar 20, 2026 | Business

The government has launched a ₹20,000-crore Credit Guarantee Scheme for Microfinance Institutions (MFI) 2.0 to revive credit flow and ease liquidity constraints in the sector..

The government has rolled out a ₹20,000-crore Credit Guarantee Scheme for Microfinance Institutions 2.0, a move that industry body Microfinance Industry Network (MFIN) said would help revive credit flow to underserved segments and ease funding constraints in the sector.

The scheme comes amid a sharp decline in bank funding to microfinance institutions (MFIs), particularly smaller players. According to MFIN, bank lending to the sector dropped by nearly 70% between the fourth quarter of FY24 and the third quarter of FY26, severely impacting liquidity.

Jiji Mammen, CEO & ED, Sa-Dhan, said, “We sincerely thank the Government of India for introducing the Credit Guarantee Scheme for the microfinance sector 2.0, an important and timely step towards strengthening financial inclusion initiatives in the country.”

“This initiative will strengthen lenders’ confidence to lend to MFIs, which have been under stress in recent times, initially due to recovery-related issues and later to liquidity issues. Sa-Dhan had been working for such a facility for the past year. We are very happy that the Government has come out with this scheme, and we thank them,” he added.

“We are sure this step will increase credit to underserved communities and support the continued growth and resilience of the microfinance ecosystem and financial inclusion. We deeply appreciate this progressive move and look forward to its transformative impact across the sector,” he further said.

AM Karthik, Senior Vice President & Co-Group Head, Financial Sector Ratings, ICRA Ltd, said, “The MFI credit guarantee scheme is designed to channel credit flow to the sector, with particular emphasis on small and mid-sized MFIs. Under this program, 15% of lender exposure is allocated to these MFIs. Combined with a one-year moratorium period, this arrangement is expected to strengthen liquidity in the short term and support credit growth. The scheme specifies a lending rate cap (EBLR or 1-year MCLR plus 2%) and a guarantee fee of 0.5%, reflecting a credit risk cover ranging from 70% to 80% based on MFI size. Retail microfinance borrowers to also benefit from the lower interest rates provided by MFIs which avail loans under this scheme.”

Loan pricing and tenure details

Loans under the scheme will be priced at a capped rate linked to the EBLR or 1-year MCLR plus 2 per cent. MFIs, in turn, must lend at least 1 percentage point below their average rate over the past six months. Loans will have a maximum tenure of three years, including a one-year moratorium.

Exposure is capped at 20 per cent of an MFI’s AUM, with absolute limits of ₹100 crore for small, ₹200 crore for medium, and ₹300 crore for large MFIs. The scheme also mandates that at least 5 per cent of loans go to small MFIs and 10 per cent to mid-sized players.

Credit guarantee cover ranges from 70 per cent for large MFIs to 75 per cent for medium MFIs and 80 per cent for small MFIs.

Boost to lender confidence

MFIN said the guarantee programme is expected to restore lender confidence and catalyse fresh credit from banks, especially for small and mid-sized MFIs that have borne the brunt of the funding squeeze.

The launch also coincides with improving asset quality metrics.

Portfolio at risk (PAR) for 31–90 days declined to 1.6 per cent from 3.2 per cent a year ago, indicating better repayment behaviour. However, constrained liquidity has weighed on growth, with the industry’s portfolio standing at ₹3.15 lakh crore as of December 31, 2025, a 7.3 per cent sequential decline.

Borrowers impacted by credit crunch

The funding crunch has had a direct impact on borrowers, with MFIN estimating that nearly 50 lakh customers have lost access to formal credit due to reduced lending activity.

MFIN chief executive Alok Misra said the scheme is a timely intervention that will help unlock liquidity and support sustainable growth in the sector. He added that, despite improvements in credit discipline and responsible lending practices, access to bank funding remained the key challenge for MFIs.

Published on March 20, 2026

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HDFC Bank board to meet next week to decide on new chairman

by Hansraj Agrawal | Mar 20, 2026 | Business

Shares of the bank hit another new low at ₹772 before pulling back slightly to close at ₹780.
| Photo Credit:
SHAILESH ANDRADE

HDFC Bank’s Board of Directors are scheduled to meet mid next week to take stock of the situation arising from the abrupt resignation of Part-Time Chairman Atanu Chakraborty and discuss his possible replacement, among others.

While HDFC Group veteran Keki Mistry has stepped in as Interim Part-time Chairman of the Bank with effect from March 19, 2026, for a period of 3 months, the Board is keen on fast-tracking the process of finding a suitable replacement for Chakraborty, said sources clued in to developments in this regard.

In an analyst call, Mistry had said: “As far as our seeking some explanation from Chakraborty, the Board will of course meet very, very soon and take a call on how to take it forward.”

The possibility of a career central banker such as former Deputy Governor of RBI M Rajeshwar Rao being called up is high, they said. It may be pertinent to mention here that Shyamala Gopinath, former Deputy Governor of RBI, was Chairperson of HDFC Bank from 2015 till 2021.

Investor Jitters

Chakraborty stirred a hornet’s nest by suddenly resigning as the bank’s Part-time Chairman and Independent Director, citing “certain happenings and practices within the bank.”

The after-shock of his exit continued to reverberate and impact investor confidence on Friday as the firefighting done by the Bank’s Board, and the RBI has neither revealed much details nor denied the allegations outright. The management explanation and RBI confidence-building exercise were not that convincing to instil confidence, say analysts.

Shares of the bank hit another new low at ₹772 before pulling back slightly to close at ₹780.

Chakraborty’s attempts to play down the issue later, stating that his resignation was “routine” and not indicative of any wrongdoing at the bank, did not cut ice.

Accountability Push

Shriram Subramanian, Founder and Managing Director of proxy advisory firm Ingovern Research Services, said the Committee of independent directors should constitute a separate fact-finding committee on the allegations made by Chakroborty and come out with a white paper to assuage investors concern besides elaborating on any actions that need to be taken, if at all, to avoid repetition of such incidents that erode investors wealth.

Though the central bank has assured investors on the bank’s health, it can also conduct an independent probe on the allegations, he added.

HDFC Bank, being owned by shareholders, institutional investors should play a more active role to avoid unforeseen accidents, as banking industry veteran Uday Kotak advocates for bank promoters to have “skin in the game” to ensure accountability, arguing that managers with no ownership can make risky lending decisions using depositors’ money, said Subramanian.

Sameer Sawant, Research Analyst, Mirae Asset Sharekhan, said, despite the assurance given by the bank and RBI, the overhang lies in the two pending decisions on appointment of a permanent Chairman and the call on MD & CEO Sashidhar Jagdishan’s reappointment — both of which markets will price cautiously until resolved.

Given that HDFC Bank is a widely-held company without a controlling promoter, large investors in particular should engage with the board, demand transparency on “ethical concerns,” he said.

Narinder Wadhwa, MD & CEO, Ski Capital Services, said the recent development at HDFC Bank may temporarily impact investor sentiment, but the situation appears well contained by the RBI and the bank.

Absence of a promoter in HDFC Bank places greater responsibility on the board and institutional shareholders to ensure robust oversight and transparency, he said.

From an investment perspective, he said with valuations around 1.5 times book value, long-term investors may view this as an opportunity rather than a concern, he added.

Mistry emphasised that, at the age of 71, he would not take on this responsibility (as Interim Chairman) for three months if the systems, processes, and governance practices in the bank did not align with his principles and his level of integrity.

“RBI gave their approval for making me interim chairman for a period of three months to just stabilise things and then move on,” he said. He strongly refuted allegations that there was a “power struggle” in the Bank.

Renu Sud Karnad, Non-Executive (Non-Independent) Director, said: “In fact, we repeatedly asked him (Chakraborty) to tell us why, what had triggered this (resignation) and if there was anything we had to do to get it right. But he said there was nothing. And that was a bit baffling.”

The RBI, in a statement on Thursday, said HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with sound financials, a professionally run board and a competent management team. Based on its periodical assessment, there are no material concerns on record as regards its conduct or governance.

Published on March 20, 2026

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Chuck Norris dies at 86: martial arts legend and ‘Walker, Texas Ranger’ star passes away

by Hansraj Agrawal | Mar 20, 2026 | Business

FILE PHOTO: Actor Chuck Norris speaks during the National Rifle Association’s 139th annual meeting in Charlotte, North Carolina May 14, 2010. REUTERS/Chris Keane/File Photo
| Photo Credit:
CHRIS KEANE

Chuck Norris, the martial arts grandmaster and action star whose roles in “Walker, Texas Ranger” and other television shows and movies made him an iconic tough guy — sparking internet parodies and adoration from presidents — has died at 86.

Norris died Thursday, in what his family described as a “sudden passing.” “While we would like to keep the circumstances private, please know that he was surrounded by his family and was at peace,” the family said in a statement posted to social media.

Before he would become a star in movies and on TV, Norris was wildly successful in competitive martial arts. He became a six-time undefeated World Professional Middleweight Karate champion. He also founded his own Korean-based American hard style of karate known sometimes as Chun Kuk Do and the United Fighting Arts Federation, which has awarded more than 3,300 Chuck Norris System black belts worldwide. Black Belt magazine ultimately credited Norris in its hall of fame with holding a 10th degree black belt, the highest possible honor.

Born Carlos Ray Norris in Ryan, Oklahoma, on March 10, 1940, he grew up poor. At age 12, he moved with his family to Torrance, California, and joined the US Air Force after high school, in 1958. It was during a deployment to Korea that he started training in martial arts, including judo and Tang Soo Do.

“I went out for gymnastics and football at North Torrance high,” he told The Associated Press in 1982. “I played some football, but I also spent a lot of time on the bench. I was never really athletic until I was in the service in Korea.” After he was honourably discharged in 1962, he worked as a file clerk for Northrop Aircraft and applied to be a police officer, but was put on a waitlist. Meanwhile, he opened a martial arts studio, which expanded to a chain, with students including such stars as Bob Barker, Priscilla Presley, Donnie and Marie Osmond, and Steve McQueen, whom he later credited with encouraging him to get into acting.

From one studio to another

Norris made his film debut as an uncredited bodyguard in the 1968 movie “The Wrecking Crew,” which included a fight with Dean Martin. He had also crossed paths with Bruce Lee in martial arts circles. Their friendship — sometimes, as sparring partners — led to an iconic faceoff in the 1972 movie “Return of the Dragon,” in which Lee fights and kills Norris’ character in Rome’s Colosseum.

He went on to act in more than 20 movies, such as “Missing in Action,” “The Delta Force” and “Sidekicks.” “I wanted to project a certain image on the screen of a hero. I had seen a lot of anti-hero movies in which the lead was neither good nor bad. There was no one to root for,” Norris said in 1982.

In 1993, he took on his most famed role, as a crime-fighting lawman in TV’s “Walker, Texas Ranger.” The show ran for nine seasons, and in 2010, then-Gov. Rick Perry awarded him the title of honorary Texas Ranger. The Texas Senate later named him an honorary Texan.

“It’s not violence for violence’s sake, with no moral structure,” Norris told the AP in 1996, speaking about the show. “You try to portray the proper meaning of what it’s about — fighting injustice with justice, good vs. bad. … It’s entertaining for the whole family.” Norris also made a surprise comedic appearance as a decisive judge in the final match of the 2004 movie “Dodgeball.” He only on occasion has taken acting roles in recent years, including 2012’s “The Expendables 2” and the 2024 sci-fi action movie “Agent Recon.”

Chuck Norris: the man, the meme, the legend

It was around the time of “Dodgeball” that his toughman image became the stuff of legend, literally: “Chuck Norris Facts” went viral online with such wildly hyperbolic statements as, “Chuck Norris had a staring contest with the sun — and won,” and, “They wanted to put Chuck Norris on Mt. Rushmore, but the granite wasn’t tough enough for his beard.” Norris ultimately embraced the absurdity of the meme craze, putting together “The Official Chuck Norris Fact Book,” which combined his favorites with supposedly true stories and the codes he aimed to live by. He would also write books on martial arts instruction, a memoir, political takes, Civil War-era historical fiction and more.

“To some who know little of my martial arts or film careers but perhaps grew up with ‘Walker, Texas Ranger,’ it seems that I have become a somewhat mythical superhero icon,” Norris wrote in the forward to the fact book. “I am flattered and humbled.” That book raised money for a nonprofit he founded with President George H W Bush that promoted martial arts instruction for kids.

The intentionally outlandish statements featured in the 2008 Republican presidential primary, when Norris endorsed Arkansas Gov. Mike Huckabee and shot an ad playing on the “Chuck Norris facts.” President Donald Trump’s supporters later promoted Trump Facts in the same vein, and political pundits tried it as well, describing the commander-in-chief’s decision to seize Venezuela’s sitting president, Nicolas Maduro, as a “Chuck Norris Moment,” and its initial effect on oil prices a “Chuck Norris Premium.” Norris was outspoken about his Christian beliefs and his support for gun rights, and backed political candidates for years — he even went skydiving with Bush for the former president’s 80th birthday. As for Trump, Norris endorsed him in the 2016 general election and wrote guest columns praising him without explicitly endorsing him the in the days before the 2020 and 2024 elections.

Norris has five surviving children: stunt performers Mike and Eric with his late ex-wife Dianne Holechek, twins Dakota and Danilee with his wife Gena Norris, and Dina, the result of an early 1960s “one-night stand” revealed in his autobiography.

Norris celebrated his birthday just over a week before his death, posting a sparring video on Instagram.

“I don’t age. I level up,” he wrote.

Published on March 20, 2026

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SBI faces ₹6,337.5 crore Income Tax demand for AY 2023-24

by Hansraj Agrawal | Mar 20, 2026 | Business

The lender said it will contest the order before appellate authorities within prescribed timelines.
| Photo Credit:
DANISH SIDDIQUI

State Bank of India has received a tax demand of ₹63,37,52,52,550 (approximately ₹6,337.5 crore), including interest, from the Assessment Unit of the Income Tax department, the bank disclosed to stock exchanges on Friday.

The order, dated March 19, 2026, was issued under Section 143(3) read with Sections 144C(3) and 144B of the Income Tax Act, 1961, and pertains to scrutiny assessment proceedings for Assessment Year 2023-24. The Assessment Unit has made disallowances on various grounds, the bank said.

SBI noted that it is already in litigation on similar grounds for earlier assessment years. The bank said the aggregate demand exceeds its materiality threshold, necessitating the disclosure.

The lender said it will contest the order before appellate authorities within prescribed timelines. It also clarified that the order has no impact on its operations or other activities.

Published on March 20, 2026

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Accenture lifts IT sentiment; AI-driven transformation gains traction

by Hansraj Agrawal | Mar 20, 2026 | Business

Indian IT stocks rose following Accenture’s Q2 results and guidance upgrade, which pointed to a largely unchanged demand environment, with growth increasingly driven by AI-led transformation, ecosystem partnerships and a broader services scope.

In Q2 of FY26, Accenture reported new bookings of $22.1 billion, up 6 per cent in USD and 1 per cent in local currency. Revenue came in at $18.0 billion, at an 8 per cent increase in USD terms and 4 per cent growth in local currency. Of the total bookings, consulting accounted for $11.33 billion, while Managed Services contributed $10.78 billion. The company has revised its full-year revenue growth outlook to 3-5 per cent in local currency.

Following the announcement, the Nifty IT index closed at 29,199.60 on Friday, up 2.17 per cent. Shares of Indian IT firms gained across the board, with LTM up 3.73 per cent, Infosys – 2.88 per cent, TCS – 1.77 per cent and Wipro – 1.32 per cent.

An Emkay Global Financial Services report noted that Nifty IT has corrected by around 25 per cent in CY26TD and underperformed the broader markets by about 13 per cent due to potential risks to growth, including the advancement of AI and increased macro uncertainties, which led to lower terminal growth assumptions. Stable performance and a guidance upgrade may support valuations, but neither Accenture’s Q2 results nor its commentary signals a meaningful near-term growth rebound.

Critical support

“From a technical standpoint, CNX IT is nearing a critical support zone around 26,000 on a monthly closing basis. The sector has been under pressure for a while, so this move is more of a potential stabilisation rather than a confirmed trend reversal. While global cues like Accenture may influence short-term sentiment, the bigger structural question for Indian IT remains around AI. The key variables are not just demand, but how AI-led efficiencies, rising chip costs and evolving client spending patterns impact revenue visibility,” Tushar Badjate, Director of Badjate Stock & shares, explained.

He added that valuations have corrected meaningfully, and parts of the IT space are beginning to look attractive from a risk-reward perspective. The real question is whether this becomes a cyclical bounce or the start of a more sustainable re-rating.

“Accenture’s commentary suggests that the demand environment for IT Services is stable rather than sharply improving, with clients still prioritising large, strategic transformation programs while keeping overall spending patterns in CY26 broadly similar to those in CY25,” the Emkay report said.

The company indicated improvement in pricing in some of its business areas, though the business environment remains competitive. Over 60 per cent of Accenture’s revenue was driven by the top-10 ecosystem partners in Q2, with growth outpacing the company’s average. It remains on track to more than double bookings from partnerships with key emerging AI and data ecosystem partners in FY26 over FY25.

Services scope

For Indian IT Services, AI is widening the ‘services’ scope. Accenture is positioning itself as an enterprise orchestrator—guiding deployment, integration, and transformation rather than owning models. Delivery is shifting toward a mix of FTE and outcome-based models, while clients pursue end-to-end AI-led transformations, driving spillover demand in data, cloud and security.

As clients move from pilots to production, new workstreams are emerging across cybersecurity, core operations, and modernisation. However, limited quantitative disclosure on AI adoption and monetisation continues to constrain visibility on scalable, long-term growth.

A Motilal Oswal Financial Services report shared that while Accenture noted that foundational work in AI is picking up, it is insufficient to drive the acceleration in demand anticipated in earlier scenarios. On AI deflation, software engineering remains ground zero for AI invasion, but deploying AI in large, complex enterprises is proving to be difficult. From an IT services perspective, the firms may have to contend with a complex macro and geopolitical backdrop in the near term.

Key highlights from the management commentary include clients implementing foundational programs with ecosystem partners to capture the full AI opportunity, involving cloud, security and data modernisation, with operating model and talent transformation. AI is acting as a tailwind, enabling Accenture to win market share and create new growth opportunities. While early AI adoption is driven by efficiency use-cases, growth-oriented use-cases are emerging. AI-led productivity improvements reduce technical efforts, but expand the overall scope of transformation work.

Published on March 20, 2026

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Lower maize prices may see Indian farmers switch back to oilseeds, pulses this kharif

by Hansraj Agrawal | Mar 20, 2026 | Business

The pan-India average price of maize was ₹1,781/quintal on March 18, according to Agmarknet portal
| Photo Credit:
APPALA NAIDU T

A section of Indian farmers is likely to return to cultivating oilseeds and pulses in the upcoming kharif season as growers have realised lower prices this year. The government is confident that there may be some change in the kharif season.

However, the sowing decision will depend mainly on guaranteed price for oilseeds and pulses as the procurement has highly been insignificant compared with FCI’s purchase of rice and paddy, a senior official said.

During the kharif harvest season (October-December) in 2025-26, when farmers sold their maximum produce, the all-India average maize price was ₹1,684/quintal, down by 30 per cent from the minimum support price (MSP) of ₹2,400. Still, in the hope of a better price, farmers expanded the area in the rabi season to 30.18 lakh hectares (lh) from 27.80 lh in 2024-25.

Record high output

The pan-India average price of maize was ₹1,781/quintal on March 18, according to Agmarknet portal. In its second advanced estimates, the government projected maize production a record high for the kharif season at 302.47 lakh tonnes (lt) and in the rabi season at 159.03 lt.

“Oilseeds and pulses production plan will be discussed with States in the annual kharif conference, and accordingly, an action plan will be prepared based on the targets set by their respective mission. Prices will be a key factor, and recently Madhya Pradesh announced bonus of ₹600/quintal on summer season’s urad as more and more farmers were going for moong crop in the Zaid (summer crop) season. Such intervention may help influence the sowing decision of farmers,” the senior official said.

Earlier, it was expected that there would be demand for maize from ethanol since over 2,000 crore litres of capacity have been created by distilleries. However, the oil marketing companies bought only about 1,000-1,100 crore litres to meet the 20 per cent blending target, resulting in under utilisation of plants. Besides, the government also allotted rice for ethanol, limiting the scope for grain-based plants. The sugar industry also make ethanol and sell to OMCs, though its share was low this year.

Grains’ procurement soon

The Economic Survey also mentioned the point that as per policy decision it was expected that rice farmers would shift to maize, but while rice area increased, maize area too increased because of shifting from pulses and oilseeds.

Meanwhile, Agriculture Minister Shivraj Singh Chouhan on Friday said that government purchase of wheat and paddy would commence shortly, noting that rabi crop production has been exceptionally high this season.

He said agencies including NAFED and NCCF would procure tur, masur and urad, and whatever farmers wished to sell entire quantity would be bought so that market prices do not fall below MSPs.

He also directed officials to coordinate with State governments for accurate assessment of crop losses after unseasonal rainfall and hailstorms damaged standing rabi crops, including wheat in some states.

Chairing a review meeting, Chouhan said the adverse weather had hit several States at a time when crops were ripe and ready for harvest. “Not only did it rain, but many areas also experienced hailstorms, resulting in damage to the crops,” he told reporters after the meeting.

The minister directed officials to immediately establish contact with state governments to identify specific locations where crop damage has occurred due to hailstorms and excessive rainfall, which often leads to crops lodging or flattening on the ground.

“If a farmer has suffered losses, the damage must be assessed accurately and scientifically so that insurance claims can be processed effectively,” he said.

Published on March 20, 2026

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