INDIAN BANKING RADAR (IBR) BANKING & ECONOMY INTELLIGENCE DAILY

PLATINUM SERIES 2.0 | VOL. 224

SUNDAY, 8 NOVEMBER 2026

TOP 10 BANKING, FINANCIAL, REGULATORY, COOPERATIVE & ECONOMIC DEVELOPMENTS

For: Bankers • PSBs • Private Banks • RRBs • Cooperative Banks • DCCBs • UCBs • PACS • IBPS • RBI • NABARD Aspirants

1. RBI RELEASES FOREIGN LIABILITIES AND ASSETS CENSUS 2025–26

RBI | 6 November 2026

The Reserve Bank of India released the provisional results of its annual Census on Foreign Liabilities and Assets (FLA) of Indian Direct Investment Entities for 2025–26.

Key findings:

- Total reporting entities: 43,123.

- Unlisted entities: 41,814, approximately 97% of the total.

- Listed entities: 1,309.

- Unlisted entities accounted for 97.9% of FDI equity at face value.

- Market value of inward FDI: ₹70.72 lakh crore, against ₹65.17 lakh crore in March 2025; growth of 8.5%.

- Market value of outward ODI: ₹16.71 lakh crore, against ₹11.87 lakh crore a year earlier.

- Inward FDI-to-ODI ratio declined from 5.5 times to 4.2 times.

Major sources of outstanding FDI:

1. USA – 16.5%

2. Mauritius – 14.5%

3. Singapore – 13.7%

4. UK – 10.8%

Manufacturing accounted for 50.1% of outstanding FDI equity at market value, while services accounted for 45%.

Banking & Economic Significance: The data reflects India's integration with global investment flows and the increasing significance of outward investment by Indian entities.

Exam Alert: FDI and ODI figures represent outstanding investment positions, not annual investment inflows. Changes in valuation and exchange rates also affect these positions.

2. RBI PROPOSES CONSOLIDATED PRIORITY SECTOR LENDING DIRECTIONS

RBI Draft Directions | 5 November 2026

RBI has placed five separate draft Priority Sector Lending (PSL) Directions for public consultation, covering:

- Commercial Banks

- Small Finance Banks

- Local Area Banks

- Regional Rural Banks

- Urban Cooperative Banks

Important provisions in the draft UCB framework:

- Overall PSL target: 60% of ANBC or CEOBSE, whichever is higher.

- Micro Enterprises sub-target: 7.5%.

- Weaker Sections sub-target: 12%.

- Education loans up to ₹25 lakh may qualify under PSL, subject to prescribed conditions.

- Agriculture infrastructure loans may qualify up to an aggregate sanctioned limit of ₹100 crore per borrower from the banking system.

The draft also consolidates provisions relating to agriculture, MSMEs, housing, social infrastructure, renewable energy and Priority Sector Lending Certificates (PSLCs).

Last date for comments: 26 November 2026.

Cooperative Banking Perspective: UCBs should examine the proposed classification, sub-targets, eligible agricultural activities and reporting requirements carefully.

Important: These are draft directions placed for consultation, not final instructions.

3. RBI ISSUES CONSOLIDATED CYBER RESILIENCE DIRECTIONS FOR NON-BANK PSOs

RBI Master Directions | 5 November 2026

RBI issued the 2026 Master Directions on Cyber Resilience and Digital Payment Security Controls for authorised non-bank Payment System Operators (PSOs).

The directions consolidate earlier instructions into a single regulatory framework.

Key areas covered:

- Board-level oversight of cyber risks.

- Board-approved Information Security Policy and Cyber Crisis Management Plan.

- Identity and access management, including multi-factor authentication for privileged accounts.

- Network security, application security and security testing.

- Third-party and vendor risk management.

- Cloud security, data protection and API security.

- Incident response and business continuity arrangements.

- System audits and digital payment security controls.

Unusual incidents, including cyberattacks and critical system outages, are required to be reported to RBI within six hours of detection, as prescribed.

Applicability:

- Large and medium non-bank PSOs: Effective upon placement on RBI's official website.

- Small non-bank PSOs: Effective from 1 April 2028.

Banking Perspective: The directions underline the importance of cybersecurity governance, third-party oversight and operational resilience across the digital payment ecosystem.

Clarification: These directions apply to authorised non-bank PSOs. Existing instructions for card, PPI and mobile banking security continue, subject to the provisions of the Master Directions.

4. RBI EXTENDS DIRECTIONS ON TWO URBAN COOPERATIVE BANKS

RBI Regulatory Developments | 5–6 November 2026

RBI extended the period of existing directions imposed on two urban cooperative banks.

A. Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru

- Existing directions extended by six months.

- New period: 10 November 2026 to 10 May 2027.

- Extension is subject to review.

B. Pusad Urban Co-operative Bank Ltd., Maharashtra

- Existing directions extended by three months.

- New period: 7 November 2026 to 7 February 2027.

- Extension is subject to review.

RBI clarified that extension of the directions should not, by itself, be construed as satisfaction with the financial position of the respective banks.

Cooperative Banking Perspective: These developments highlight the importance of capital adequacy, liquidity management, governance, internal controls and regulatory compliance in urban cooperative banks.

Exam Alert: The directions are issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949.

5. IFC EXTENDS US$150 MILLION SOCIAL LOAN TO SBI FOR RURAL WOMEN

Financial Inclusion | 6 November 2026

The International Finance Corporation (IFC), a member of the World Bank Group, extended a US$150 million social loan to State Bank of India.

Key features:

- Expected to support approximately 8.64 lakh rural women.

- Focus on agricultural value chains.

- Coverage includes crop cultivation, animal husbandry, fisheries and food processing.

- Up to 90% of financing is intended for women borrowers through Self-Help Groups (SHGs).

IFC also executed its first domestic cross-currency swap with an Indian bank, with SBI becoming its first local swap counterparty in South Asia.

Banking Perspective: The initiative strengthens agricultural finance, SHG-bank linkage, women's economic participation and rural financial inclusion.

Exam Alert: IFC is the private-sector arm of the World Bank Group.

6. BANK CREDIT GROWS 19.1%; AGRICULTURE AND INDUSTRY RECORD STRONG EXPANSION

RBI Sectoral Deployment of Bank Credit | September 2026

Non-food bank credit recorded 19.1% year-on-year growth as on 30 September 2026, compared with 11.2% a year earlier.

Sectoral performance:

- Agriculture and allied activities: 19.5%, against 8.9% a year earlier.

- Industry: 19.5%, against 7.7% a year earlier.

The RBI data was based on 41 select scheduled commercial banks accounting for approximately 95% of total non-food bank credit.

Banking Perspective: Strong credit expansion in agriculture and industry reflects increased deployment of institutional finance in productive sectors. Banks must maintain appropriate credit appraisal, end-use monitoring and asset-quality standards.

Exam Alert: This is bank-credit data and should not be confused with the separate NBFC credit-growth figures.

7. NBFC CREDIT GROWS 15.4%; GOLD LOANS REGISTER 66.1% GROWTH

RBI Data | September 2026

Credit extended by the NBFCs covered in RBI's reporting sample grew 15.4% year-on-year, compared with 13.3% in September 2025.

Sector-wise growth:

- Agriculture and allied activities: 17.8%.

- Industry: 7.4%.

- Services: 17.3%.

- Retail loans: 21.9%.

Another important development is the sharp expansion in NBFC gold loans.

Outstanding NBFC gold loans increased 66.1% year-on-year to ₹3.74 lakh crore in September 2026.

Banking Perspective: The growth reflects strong demand for retail credit and gold-backed lending. Lenders must monitor collateral valuation, loan-to-value compliance, borrower repayment capacity and multiple borrowing.

Data Note: RBI's NBFC credit data is based on major NBFCs in the Upper and Middle Layers and HFCs, accounting for approximately 87% of the relevant credit base.

8. PUBLIC SECTOR BANKS REPORT ₹53,771 CRORE Q2 NET PROFIT

Q2 FY 2026–27 | Financial Performance

The 12 listed public sector banks reported aggregate net profit of ₹53,771 crore, registering 17% year-on-year growth in the September 2026 quarter.

Key performance indicators:

- Net Interest Income (NII): Approximately ₹1.26 lakh crore, up 16%.

- Other income: ₹51,669 crore, up 4.2%.

- Advances: Growth of approximately 18.8%.

- Net NPAs: ₹44,092 crore, down 13.3% year-on-year.

Banking Perspective: Strong NII and improved asset quality supported profitability. However, rising deposit costs, interest-rate movements and potential stress in vulnerable borrower segments remain important risks.

Exam Alert: NII = Interest Earned minus Interest Expended. Net NPA measures the residual bad-loan burden after provisions.

9. BANKING LIQUIDITY AND DEPOSIT-RATE COMPETITION REMAIN IN FOCUS

Banking & Money Market Developments | November 2026

Banks are revising selected fixed deposit rates amid changing liquidity conditions and competition for deposits.

Financial-sector reporting indicates that banks including HDFC Bank, Punjab National Bank and Canara Bank have revised selected deposit rates.

RBI has also announced a liquidity-injection operation:

Four-day Variable Rate Repo (VRR) auction

- Notified amount: ₹50,000 crore.

- Auction date: 9 November 2026.

- Tenor: Four days.

- Auction window: 9:30 AM to 10:00 AM.

- Reversal date: 13 November 2026.

Banking Perspective: Banks need to balance credit growth with stable deposit mobilisation. A higher cost of deposits can put pressure on Net Interest Margins (NIMs).

Exam Alert:

- VRR: Variable Rate Repo – liquidity injection.

- VRRR: Variable Rate Reverse Repo – liquidity absorption.

Important: The ₹50,000 crore VRR auction is scheduled for 9 November; it has not yet been conducted as of this bulletin date.

10. ONESTACK RAISES ₹12.5 CRORE TO EXPAND COOPERATIVE BANK DIGITAL INFRASTRUCTURE

Cooperative Banking & Fintech | November 2026

Fintech infrastructure provider OneStack raised ₹12.5 crore in a funding round to expand its technology solutions for cooperative banks and other financial institutions.

Key focus areas:

- Core Banking Solutions (CBS).

- UPI integration and digital payments.

- Technology infrastructure and compliance solutions.

- Digital banking services for cooperative banks and NBFCs.

The company reportedly serves more than 200 banks and has been onboarded as a technology service provider on Sahakar Sarathi.

Cooperative Banking Perspective: Technology partnerships can help UCBs, DCCBs and StCBs strengthen digital banking capabilities, improve customer service and reduce technology gaps.

Important: Technology-provider status does not automatically confer NPCI membership or regulatory approval on a bank. Each institution must meet applicable eligibility, technical and compliance requirements.

QUICK REVISION CAPSULE

Topic| Important fact

FLA Census entities| 43,123

Inward FDI market value| ₹70.72 lakh crore

Outward ODI market value| ₹16.71 lakh crore

Inward FDI/ODI ratio| 4.2 times

PSL draft feedback deadline| 26 November 2026

UCB overall PSL target in draft| 60%

IFC–SBI social loan| US$150 million

Rural women beneficiaries| 8.64 lakh

Bank non-food credit growth| 19.1%

NBFC credit growth| 15.4%

NBFC gold-loan growth| 66.1%

PSB Q2 net profit| ₹53,771 crore

RBI VRR auction| ₹50,000 crore

OneStack funding| ₹12.5 crore

KNOWLEDGE CHECK – 5 MCQs

Q1. How many entities reported under RBI's FLA Census 2025–26?

A. 41,814

B. 43,123

C. 44,123

D. 45,123

E. 46,123

Q2. What is the proposed overall PSL target for Urban Cooperative Banks under the 2026 draft directions?

A. 40%

B. 50%

C. 55%

D. 60%

E. 75%

Q3. From which date will the 2026 cyber resilience directions become effective for small non-bank PSOs?

A. 1 April 2028

B. 1 January 2028

C. 1 April 2027

D. 1 July 2027

E. 1 January 2029

Q4. What is the amount of IFC's social loan to SBI?

A. US$100 million

B. US$125 million

C. US$175 million

D. US$200 million

E. US$150 million

Q5. What is the notified amount of RBI's four-day VRR auction scheduled for 9 November 2026?

A. ₹25,000 crore

B. ₹30,000 crore

C. ₹50,000 crore

D. ₹40,000 crore

E. ₹75,000 crore

ANSWER KEY

Q1.B

Q2.D

Q3.A

Q4.E

Q5.C

IBR EDITORIAL PERSPECTIVE

Today's developments highlight five important banking and economic themes:

1. Global investment: India's FDI and ODI positions reflect expanding international investment linkages.

2. Priority-sector lending: RBI's draft directions are important for banks, rural finance and cooperative institutions.

3. Cyber resilience: Digital payment security, vendor risk and incident management are becoming essential components of payment-system governance.

4. Credit expansion: Bank and NBFC credit growth highlights the increasing role of institutional finance in agriculture, industry and retail lending.

5. Cooperative banking transformation: Regulatory supervision and technology adoption remain central to the long-term stability of cooperative institutions.

Special focus for cooperative bankers: Study the proposed UCB PSL framework, RBI's directions on cooperative banks and the growing role of shared digital infrastructure.

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Editorial disclaimer: Regulatory proposals are identified as drafts; scheduled operations are not presented as completed events. Readers should consult the original RBI notifications and applicable directions before taking compliance decisions.