RBI Governor Sanjay Malhotra
| Photo Credit:
ANI

Reserve Bank of India Governor Sanjay Malhotra on Friday said Indian banks will need to evolve as market-makers globally if the global rupee market has to be on-shored.

Indian banks are dealing only with offshore market-makers rather than with end-users, Malhotra said in his key note address at the 25^th FIMMDA-PDAI Annual Conference, in Amsterdam.

The Governor said: “We will also stand prepared to deploy appropriate policy measures, as warranted, to mitigate spillovers and ensure orderly market conditions.”

This observation comes in the backdrop of the rupee breaching the 95 to the dollar mark in intraday on Thursday for the first time since March 30, 2026, and closing at an all time low of 94.91 per US dollar.

The rupee has been buffeted by a host of factors, including global crude oil prices recently touching a four year high amid the ongoing West Asia war and blockade of the Strait of Hormuz, and persistent Dollar outflows due to FPI related sales in the Indian equity markets.

Malhotra emphasised that all banks should facilitate this as a priority, so that retail users get a fair deal. Currently, usage of the FX Retail platform remains limited.

The aforementioned suggestions form part of five areas for further deepening and strengthening India’s financial markets.

The Governor said while Central government securities market is liquid by most standards, there is scope to improve liquidity across all tenors and securities.

Malhotra noted that OTC (over-the-counter) derivatives markets, especially interest rate derivatives, remain concentrated in just one or two few products. He underscored that it needs to improve if efficient interest rate hedging options have to be made available to stakeholders.

He observed that development of credit derivatives, which is largely an underutilised area, is yet to take off in any meaningful way.

The Governor said market participants must acknowledge that while a privilege bestows some benefits, it also entails responsibilities.

The responsibilities include ensuring that every user has easy access to financial markets; every user can transact on fair and transparent terms, irrespective of size and sophistication; broader regulatory objectives are met in letter and spirit even as organisational interests are pursued; and to protect, promote and sustain market integrity.

Published on May 1, 2026

Net Interest Income grew 17 per cent y-o-y to ₹121 crore (₹103 crore in Q4FY26)
| Photo Credit:
Andrii Yalanskyi

Capital Small Finance Bank (CSFB) will take a call on transitioning to a universal bank once its total business (deposits plus advances) and branch network reach a “decent size” of about ₹34,000 crore and 300, respectively, by March-end 2029.

Currently, the Jalandhar (Punjab) — headquartered Bank has a total business aggregating ₹18,705 crore (deposits: ₹10,018 crore; advances: ₹8,687 crore as at March-end 2026) and a branch network of 213 spread across five States and two Union Territories.

In an interaction with businessline, Sarvjit Singh Samra, MD & CEO, observed that once CSFB becomes a mid-sized institution, the time would be ripe for it become a universal bank.

“I would say when we reach at a decent size of…total business, our board will definitely take this call (on transitioning to a universal bank). We are very optimistic about this and actually there’s a path ahead for further growth,” he said.

Samra emphasised that CSFB’s target focus is the middle income group customer segment on both sides — deposits as well as advances.

“We are a specialised bank, taking care of the banking needs of the middle income group. We have been specialising in this segment for last 26 years — for the first 16 years as a local area bank and the next 10 years as a SFB,” he said, adding the Bank recently completed 10-years of its banking journey as a SFB.

CSFB reported 18 per cent year-on-year (y-o-y) increase in fourth quarter (Q4FY26) net profit at ₹40 crore against ₹34 crore in the year ago quarter.

Net Interest Income (difference between interest earned and interest expended) grew 17 per cent y-o-y to ₹121 crore ( ₹103 crore in Q4FY26).

Non-interest income (comprising income from commission, exchange & brokerage, profit/fee earned on sale of third-party products, profit/loss on sale/revaluation on investments, profit on exchange transactions, etc.) was almost unchanged at ₹26 crore.

Deposits and advances were up 20 per cent (and stood at ₹10,018 crore as on March-end 2026) and 21 per cent ( ₹8,572 crore), respectively.

Published on May 1, 2026