Vijay . S

 The Reserve Bank of India (RBI) has levied a penalty of Rs 44.7 lakh on Bandhan Bank due to non-compliance with certain statutory and regulatory norms. An inspection revealed that the bank paid commissions to employees and made manual interventions in account data without proper audit trails. The penalty is based on regulatory deficiencies.

  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%.

 AIBOC has criticised the government's decision to privatise IDBI Bank, calling it a betrayal of parliamentary assurances made in 2003. The organisation argues that privatisation equates to selling people's savings and weakening the public banking network. The government and LIC jointly own 95% of IDBI Bank, with 60.72% stake set for sale.

Reserve Bank of India directs banks to monitor funds from Pakistan. The concern is that these funds may be used for arms purchases. Indian agencies investigated after a military conflict in May. They found Pakistan nationals sending money via other countries. Pakistan is labeled a 'high risk' jurisdiction. A report accuses a Pakistan entity of evading sanctions.

  Boston Consulting Group reports that AI adoption could reshape 35-50% of Indian banking jobs, addressing limited productivity gains despite increased IT spending. Banks are urged to embrace technology to overcome cost structure challenges. The report also highlights the need for faster credit growth to support India's development goals and concerns over the slow expansion of credit access to new customers.

  The banking sector's loan loss provisioning surged to a three-year high in the June quarter, driven by increased provisioning from private sector banks. While private banks saw a significant rise, public sector banks reported a decline in provisioning. This increase was influenced by one-off provisioning events and policy changes at certain banks.