Non-food bank credit growth robust at 14.4% in Dec 2025

by Hansraj Agrawal | Jan 30, 2026 | Business

Credit to personal loans segment recorded a 14.4 per cent yoy growth, as compared with 12.0 per cent a year ago.
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iStockphoto

Non-food bank credit grew at a robust clip of 14.4 per cent year-on-year (yoy) as of December 31, 2025, on the back of increased demand for loans from industry, services and personal loans segments, per RBI’s data on sectoral deployment of bank credit for the month of December 2025. Non-food bank credit grew at 11.1 per cent as of December 27, 2024.

Scheduled commercial banks’ (SCBs) credit to industry recorded a 13.3 per cent yoy growth, compared with 7.5 per cent in the corresponding fortnight of last year.

“While credit to ‘Micro and Small’ showed sharp acceleration in growth, ‘Medium’ industries continued to exhibit robust expansion. Credit to large industries also picked up, per RBI’s statement.

Positive sign

Referring to the pick up in credit to large industries, Madan Sabnavis, Chief Economist, Bank of Baroda, said this could be indicative of pick up in private investment in the segment.

Among major industries, outstanding credit to ‘infrastructure’, ‘all engineering’, ‘basic metal and metal products’, ‘chemical and chemical products, ‘textiles’ and ‘petroleum, coal products and nuclear fuels’ registered resilient yoy growth.

Credit to services sector registered a growth rate of 15.3 per cent yoy (11.5 per cent in the corresponding fortnight of the previous year), supported by higher. growth in segments such as ‘non-banking financial companies’ (NBFCs), ‘trade’ and ‘commercial real estate’.

Credit to personal loans segment recorded a 14.4 per cent yoy growth, as compared with 12.0 per cent a year ago.

The RBI said while segments such as ‘vehicle loans’ and ‘loans against gold jewellery’ sustained robust credit growth, ‘housing’ witnessed steady growth while ‘credit card outstanding’ growth decreased.

Sabnavis said that vehicle loans growth has virtually doubled, thus contributing to overall demand for the personal loans segment.

Unsecured loans growth has also been higher than last year indicating that there has been higher borrowing for consumption with the GST cut also contributing to the same.

Sabnavis assessed that growth loans against jewellery have been very high due to two reasons — “As RBI states, there is a classification of some agricultural loans under this head by one bank which skews the picture. Further, with high price of gold, the value of jewellery has gone up which offers more scope for borrowing by households.”

NBFC credit has been higher this year which can be attributed to the reversal of the higher capital norms that were imposed in 2024.

Published on January 30, 2026

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BoB’s Q3FY26 net up 4.5% at ₹5,055 crore

by Hansraj Agrawal | Jan 30, 2026 | Business

Net interest income was almost unchanged at ₹11,800 crore
| Photo Credit:
AMAN RAJ

Bank of Baroda (BoB) reported a modest 4.50 per cent year-on-year (y-o-y) growth in third quarter standalone net profit at ₹5,055 crore, with the bottom line being supported by non-interest income and write-back in provisions for non-performing assets (NPA) & bad debts written-off.

The public sector bank profit growth came amid decent growth in total deposits (10.3 per cent y-o-y) and global gross advances (14.7 per cent). It logged a net profit of ₹4,837 crore in the year-ago quarter.

The bank’s Board on Friday approved raising of long term bonds for financing of infrastructure and affordable housing/ long term green infrastructure up to ₹10,000 crore. This is in addition to ₹5,000 crore remaining from previous approval, taking the total issue size up to ₹15,000 crore in single or multiple tranches during the FY26 and beyond if found feasible.

Net interest income (difference between interest earned and interest expended) was almost unchanged at ₹11,800 crore (₹11,786 crore in Q3FY25).

Other income, comprising fee-based income, treasury income and other non-interest income, was up 6 per cent y-o-y at ₹3,600 crore (₹3,400 crore).

Debadatta Chand,MD & CEO, said Q3FY26 was one of the strongest quarters for the Bank in terms of business (credit and deposit growth). He emphasised that the quarter was a normalised one, with no one-off income.

NIM dips

Net interest margin (NIM) declined to 2.79 per cent from 3.04 per cent a year ago. Chand said the Bank will end FY26 with a NIM of 2.85-.3.00 per cent.

Operating profit was down 3.7 per cent y-o-y at ₹7,377 crore (₹7,664 crore). The BoB chief said the bank has a consistent and stable operating model, clocking an operating profit of over Rs 7,000 crore over the last nine quarter and a net profit of over ₹4,000 crore over the last 10 quarters.

Fresh slippages were higher at ₹2,676 crore (₹2,503 crore). However, reduction in NPAs too was higher at ₹3,183 crore (₹2,995 crore).

Gross NPA position improved to 2.04 per cent of gross advances as at December-end 2025 from 2.43 per cent as at December-end 2024. Net NPA position too improved a shade to 0.57 per cent of net advances from 0.59 per cent.

Provisions for for NPA & bad debts written-off declined 40 per cent to ₹559 crore (₹871 crore). However, provision for standard advances was up 46.5 per cent to ₹183 (₹125 crore).

Global advances increased 14.7 per cent y-o-y to stand at ₹13,44,904 crore as at December-end 2025. Within this domestic gross advances and international advance were up 13.6 per cent and 19.3 per cent yoy to stand at ₹10,96,557 crore and ₹2,48,348 crore, respectively.

Agriculture advances clocked the highest growth of 19 per cent within domestic advances, followed by retail (17.4 per cent), MSME (16.4 per cent) and corporate 8.1 per cent.

Chand said while BoB continues with the 11-13 per cent credit growth target for FY26, there could be an upside. The bank has built up a corporate loan sanctions pipeline of ₹75,000 crore, including about ₹45,000 crore sanctioned loans yet to be disbursed and about ₹30,000 crore worth of loan proposals under process.

Total deposits rose about 10.3 per cent y-o-y and stood at ₹15,46,749 crore as at December-end 2025. Within this, domestic deposits were up 11.1 per cent y-o-y and stood at ₹13,07,189 crore.

Low-cost current account, savings account (CASA) deposits declined to 38.45 per cent of domestic deposits (39.33 per cent a year ago).

BoB shares closed at ₹299.35 apiece, down 1.04 per cent over the previous close on BSE.

Published on January 30, 2026

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SEBI clears IPOs of HD Fire Protect, Xtranet Tech, and five companies

by Hansraj Agrawal | Jan 30, 2026 | Business

Parijat Industries India, Rotomag Enertec, CSM Technologies, Eldeco Infrastructure and Properties and AITMC Ventures gear up for public listing

The capital markets regulator SEBI has cleared the initial public offering (IPO) of seven companies on Friday.

The issues cleared were that of HD Fire Protect, Xtranet Technologies, Parijat Industries India, Rotomag Enertec, CSM Technologies, Eldeco Infrastructure and Properties and AITMC Ventures. Associated Power Structures withdrew its IPO offer.

IPO structure

Eldeco Infrastructure and Properties plans to raise ₹1,000 crore through fresh equity issuance and offer for sale (OFS). The issue consists of a fresh issue of shares worth ₹800 crore and an OFS of ₹200 crore by promoters. The proceeds will be used for debt repayment, specifically for their subsidiary Eldeco Infracon Realtors, and general corporate purposes.

AITMC Ventures, an agri-drone start-up, will raise ₹200 crore via IPO to fund its expansion plans. The issue consists of a fresh issue of equity shares, aimed at funding business expansion, working capital and investments in subsidiaries.

The promoters and existing investors of HD Fire Protect plan to offload 2.63 crore shares. Incorporated in 1997, the company specialises in designing, manufacturing and supplying fire protection equipment and systems for industrial, commercial and institutional safety requirements.

Xtranet Technologies will raise about ₹190 crore through fresh share issuance. The funds raised will go to investors who are offloading shares in the IPO. The company is an integrated IT solutions provider offering end-to-end services such as enterprise applications, digital transformation, managed services, proprietary platforms, and strategic technology partnerships.

The agro chemical company Parijat Industries will raise ₹160 crore and an offer for sale of upto 2.04 crore equity shares. Its product portfolio includes plant protection products (insecticides, fungicides, bactericides, herbicides, and combinations), plant nutrition products such as specialty fertilisers, biostimulants, and plant growth regulators and technicals used in agrochemical formulations.

CSM Technologies will raise about ₹150 crore through fresh equity issuances. The company will issue 1.29 crore equity shares with no offer-for-sale component. Proceeds will be used to fund growth initiatives, strengthen technological infrastructure and pay off debt.

Published on January 30, 2026

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Average ticket size of policies increased 13% in Q3FY26, backed by GST exemption, says Niva Bupa Executive Director

by Hansraj Agrawal | Jan 30, 2026 | Business

Niva Bupa Health Insurance’s average ticket size of policies increased by around 13 per cent year-on-year in the third quarter this fiscal, backed by GST exemption on individual health insurance premiums, says its Executive Director and Chief Financial Officer Vishwanath M. In an interaction with businessline, Vishwanath says the insurer has passed on the impact of GST input credit loss to its distributors uniformly across the board. Excerpts:

Niva Bupa Health Insurance’s gross written premium grew 55 per cent year-n-year to ₹2231 crore in the third quarter this fiscal. What drove this growth?

The reported 55 per cent growth needs to be read with context. From October 1, 2024, there was a change in accounting for multi-year policies. Earlier, for example for a two-year policy, the full premium used to get recognised upfront. Post the change, only half is recognised in the year of sale and the rest is deferred for next year. Because of this, the reported Q3 numbers include premium spill-over from last year, while earlier periods had spill-over going out. To give clarity, we have disclosed like-to-like numbers as well. On a like-to-like basis, total business grew 31 per cent, and retail business grew 43 per cent in Q3.

Retail growth accelerated sharply to 43 per cent in the third quarter from 28 per cent in the first half (H1) of this fiscal. Was it because of the GST exemption on individual health insurance premiums?

Yes, the biggest driver has been the GST reduction on retail health insurance. Demand picked up sharply across all channels. We saw growth both in the number of lives covered and average ticket size. The GST benefit clearly translated into stronger affordability, higher conversions, and more renewals. This acceleration is visible across agency, bancassurance, brokers, and digital channels. Consumers are using the savings to upgrade coverage rather than just buying cheaper policies. For example, customers who earlier bought ₹10 lakh cover are now opting for ₹15 lakh or more. Also, we are witnessing higher adoption of comprehensive coverage and richer benefits. Overall, average ticket size increased by around 13 per cent year-on-year in the third quarter. Normally, 7–8 per cent comes from inflation, so the incremental uplift is directly attributable to GST relief. This trend has continued into January, suggesting it is sustainable.

How much of this retail growth came from new customers versus existing customers upgrading?

Broadly, 40 per cent of retail business is new business, while 60 percent comes from renewals and upgrades. If I highlight one clear data point — on our own direct digital channel, new business grew 65–70 per cent y-o-y in Q3, reflecting higher traffic and better conversion driven by the GST relief.

Despite strong growth, the company reported an operating loss of ₹135.53 crore in Q3FY26 versus an operating profit in the same period of FY25. Why?

This again is an accounting timing issue. Because of the multi-year policy accounting change, gross written premium reflects growth immediately, but net earned premium lags. Claims, however, continue as usual. This optically depresses operating profit under Indian GAAP in the short term. To give a clearer picture, we have also published audited IFRS (Ind AS) numbers, which smoothen these timing differences. IFRS numbers showed that for the third quarter this fiscal the company registered a net profit of ₹77 crore compared to ₹60 crore for the corresponding period last fiscal. This includes a one-time ₹20 crore impact due to the new labour codes (gratuity and leave encashment). Even after this, profitability improved for the quarter.

The company’s Expenses of Management (EoM) ratio improved significantly. What were the factors that contributed to it?

There were two factors. Firstly, economies of scale — expenses are growing around 12–13 per cent, while business is growing around 30 per cent. The second factor is a realignment of distribution commission, including GST input credit adjustments. Our EoM ratio stands at 36.3 per cent for 9MFY26, versus a regulatory allowance of 35.9 per cent (including permitted add-ons). We are confident of being fully compliant for FY26.

Have your interactions with distributors to realign commission structure concluded, as insurance companies are now not able to claim input tax credit on commissions and brokerages?

Yes, we passed on the GST impact transparently. Commission percentages remain unchanged, but GST is now embedded. Despite this, distributor income has not declined because of higher volumes. For example 43 per cent retail growth in the third quarter is a testament to this. Absolute earnings for distributors continue to rise due to business growth.

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Aim to achieve near 4% credit cost next quarter, says Satin Creditcare CMD

by Hansraj Agrawal | Jan 30, 2026 | Business

Satin Creditcare Chairman and MD HP Singh

Micro-finance institution (MFI) Satin Creditcare is targeting to improve its credit cost to near 4 per cent from 4.23 per cent in Q3, chairman and MD HP Singh said in an interaction. He shares business guidance and whether the funding scenario for MFIs has improved. Edited excerpts:

Your disbursements rose 20 per cent sequentially. Is double-digit growth back for Satin?

Let us look at the yearly growth, that is more prudent. Each year, the first two quarters are typically tepid because of heat waves, monsoon etc. It is safe to assume that we will be range-bound in terms of growth of 10-15 per cent year-on-year (y-o-y). We do not want to go overboard and will grow cautiously, with focus on portfolio quality.

Your loan rejection rate is considerably high at 65 per cent. Would it remain in same range?

It has to be looked at in a complete context. Rejection rate of 65 per cent is probably good enough because we want to acquire customers who pass our test of underwriting standards. We have used a lot of levers, in terms of social score card, pin-codes etc. When we put all that together, we feel we are doing the best out of it. And we feel that there is no dearth of clients to be found because geographies are still wide open. We don’t do half of the districts in Uttar Pradesh, our biggest market. We don’t want to venture into areas which will affect portfolio quality. 10-15 per cent growth is decent for us as we have other subsidiaries to grow as well.

What will be the trajectory of margins from hereon?

Margins will remain stable because we have done quite a lot of work on cost of funds side. We have been able to bring it down by about 50 basis points (bps). If there is another repo rate cut, we will think of possibility to pass it on to borrowers because we have a healthy margin now.

Your portfolio at risk loans have reduced across buckets. Will this trend continue?

Our guidance on credit cost for FY26 was that we will post less than 4.6 per cent, as reported last year. In the 9MFY26, it is at 4.52 per cent but in Q3 it was 4.23 per cent. I think we will keep the momentum going in Q4 as well. My sense is that we will probably be closer to 4 per cent when we end the whole year. If you look at it, focus is on how do we shape up FY27. We are doing a lot, enhancing underwriting capability, so that even this 4 per cent credit cost gets dropped by another 1 per cent or so.

Has the funding scenario for MFI sector improved?

On the ground, yes there is a funding challenge for small and mid-sized MFIs. They are facing many challenges. Since the sector was going through headwinds, even some of the other players were feeling some kind of rigidity in getting funds from banks and other institutions. But I think it is opening up now. My sense is that once we get the credit guarantee scheme out in open, then probably lenders will open up purse.

What is the update on your branch expansion plans and AIF launch?

We have opened 203 branches in the last quarter. We will open the balance in this quarter. So initial target of launching 400 branches in the current fiscal is on track. In 9MFY26, we have opened 363 branches. With regard to AIF, our application is with SEBI and once we get clearance, we will move forward with the launch. The application was made in December.

Published on January 30, 2026

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With gold and silver plunging, ETFs crash as investors book profits

by Hansraj Agrawal | Jan 30, 2026 | Business

All the metals nosedived, silver over 18 per cent, and as a fallout, exchange-traded funds (ETFs) of gold and silver plunged 9-12 per cent and 18-23 per cent, respectively
| Photo Credit:
wydynd

The precious metals complex plunged on Friday with investors booking profits, as they saw no more confrontation between US President Donald Trump and the US Fed.

Over the past few weeks, investors switched to gold from currencies and bonds in view of the threat to the US Fed. With Trump nominating Kevin Warsh as the next Fed Chief, the global precious metals began to cool.

All the metals nosedived, silver over 18 per cent, and as a fallout, exchange-traded funds (ETFs) of these gold and silver plunged 9-12 per cent and 18-23 per cent, respectively, on Friday as investors rushed to book profit after months of relentless rally.

Silver worst hit

At 19:30 hours IST, gold fell to $5,008 an ounce and gold April futures on COMEX slid to $5,027.81, a fall of over 10 per cent at one point in time. In the Mumbai spot market, gold ended at ₹1,65,795 per 10 gm, down from ₹1,75,340. On MCX, gold April futures were quoted at ₹1,68,938, an over 8 per cent drop from Thursday.

Silver, which had a ‘golden’ run over the past couple of months, got hit badly with prices slipping below $100 an ounce to $98.93 an ounce. March futures on COMEX ruled at $98.58. In the Mumbai market, the white precious metal plunged to ₹3,39,350 a kg from ₹3,85,933 yesterday. On MCX, silver March contracts slipped to ₹3,37,945.

The trend reflected in gold ETFs of Nippon India AMC, HDFC AMC and DSP Mutual Fund declining 10-13 per cent. Leading silver ETFs of Nippon India AMC, Aditya Birla Sun Life AMC and ICICI Pru AMC fell by 18-20 per cent.

Gold ETFs investment

In 2025, Indians invested $4.37 billion in gold ETFs, with the holdings in these funds rising by 65 per cent, World Gold Council data showed. The overall assets under ETF management is $14 billion. Earlier this week, gold ran up to a record high of $5,600 and silver to $118 an ounce.

Dr Renisha Chainani, Head of Research, Augmont, said gold and silver prices fell sharply amid a stronger dollar, margin pressure and profit-booking at higher levels.

Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd., President of India Bullion and Jewellers Association Ltd. and Chairman, said despite the pullback, gold remains up around 25 per cent and silver up by 45 per cent year-to-date and is still on track for its strongest monthly performance since 1999 after multiple record highs.

The volatility was elevated following the US Fed’s decision to hold rates, with inflation still above target. Strong speculative positioning, firm US yields and a resilient dollar are near-term headwinds, though structural support for gold and silver remains intact, he said.

Satish Dondapati, Fund Manager, Kotak Mutual Fund, said the strengthening of the dollar was one of the main reasons for the selloff in gold and silver.

PGMs too crash

Investors also felt that the recent rally was stretched and unsustainable, leading to profit-booking at higher levels. In addition, weakness in the equity market triggered selling across other asset classes, including gold and silver, he said.

Nikunj Saraf, CEO, Choice Wealth, said a hawkish Fed chair pick under President Trump sparked global fears of tighter policy, strengthening the US Dollar and crushing overbought metals.

The dip tests investors conviction to avoid panic selling and eye rebounds from central bank demand, he said.

Among platinum group of metals (PGMs), platinum fell over 12 per cent to $2,288. 20 and palladium by nearly 10 per cent to $1,827.50 an ounce.

WIth inputs from Subramani Ra Mancombu

Published on January 30, 2026

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