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September 30, 2026
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Equity acquisition in a life insurer receives competition clearance for BNP Paribas Cardif's proposed investment.
Competition Commission of India approval covers a proposed combination under which BNP Paribas Cardif will acquire certain equity share capital in IndiaFirst Life Insurance Company Limited. The transaction is an acquisition of an ownership interest in an Indian life insurer. IndiaFirst Life Insurance Company Limited is incorporated in India, is an IRDAI-licensed insurer, and provides life insurance in India.
September 30, 2026
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Merger control clearance permits Chubu's acquisition of equity in Continuum Green Energy through primary and secondary transactions.
Competition Commission of India approval covers the acquisition of certain equity shareholding in Continuum Green Energy Limited by Chubu Electric Power Company Netherlands B.V. The proposed combination comprises a primary subscription for, and secondary purchase of, the Target's equity shares from Continuum Green Energy Holdings Ltd., Singapore. The Target and its Indian subsidiaries primarily generate and sell renewable power from wind and solar sources.
September 30, 2026
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Competition clearance authorises Bain Capital funds to acquire majority control of Everllence through a share transfer from Volkswagen.
Competition approval covers the indirect acquisition of a majority of the shares and voting rights in Everllence SE and its direct and indirect subsidiaries by funds managed or advised by Bain Capital Investors, LLC, from Volkswagen Aktiengesellschaft through a share transfer. Nikolaus (BC) Bidco GmbH acts as the purchaser and is a special purpose vehicle ultimately controlled by Bain Capital-managed or advised funds.
September 30, 2026
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Full-shareholding acquisition in crop protection receives competition clearance, combining businesses spanning agrochemicals, seeds, and agricultural equipment.
Competition Commission of India approved Crystal Crop Protection Limited's acquisition of the entire, fully diluted shareholding of FMC India Private Limited from FMC Netherlands Holdings II B.V. and its affiliates. The approved combination comprises the acquisition of 100% of FMC India's shareholding by Crystal Crop. Crystal Crop is an Indian public limited company engaged in development, manufacture, and distribution of crop protection products, seeds, and agricultural equipment.
September 30, 2026
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Investment facilitation supports cross-border manufacturing, technology, supply-chain, and business expansion partnerships between the two economies.
India-U.S. economic engagement extends beyond conventional trade to investment, manufacturing, technology, innovation, resilient supply chains, and high-value capabilities. Business engagement with manufacturing and technology companies addresses opportunities in India and expansion of partnerships. The Government of India indicates readiness to facilitate corporate operations, expansion, and investments in India.
September 30, 2026
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Monthly fiscal accounts report receipts, tax devolution, and revenue and capital expenditure against budget estimates.
Monthly accounts up to August 2026 record total receipts of Rs.13,67,709 crore, comprising net tax revenue, non-tax revenue and non-debt capital receipts. Tax devolution to State Governments totals Rs.5,90,391 crore. Total expenditure is Rs.20,77,958 crore, divided between revenue expenditure of Rs.15,68,009 crore and capital expenditure of Rs.5,09,949 crore, with revenue expenditure including interest payments and major subsidies.
September 28, 2026
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Rules-based multilateral trade engagement supports bilateral agreement negotiations, enterprise opportunities, investment partnerships, and developing-country policy space.
India's G20 trade engagement promotes a rules-based, open and non-discriminatory multilateral trading system while preserving policy space for developing countries. Bilateral discussions seek to expand opportunities for farmers, fishermen, women entrepreneurs, startups, MSMEs and other enterprises. India-United States engagement is intended to advance a balanced Bilateral Trade Agreement and an interim trade deal, alongside investment and industry outreach promoting manufacturing partnerships with Indian enterprises.
September 28, 2026
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Cross-border investment facilitation under CEPA supports local-currency settlement, payment integration, joint projects and timely resolution of investor concerns.
Financial-sector cooperation covers local-currency settlement, integration of payment and messaging systems, and central-bank digital currencies, with steps to support timely implementation for more efficient, accessible and resilient bilateral trade and investment. The UAE-India Fast Track Mechanism remains available for addressing outstanding concerns affecting investments and companies in both jurisdictions, and the parties agreed to support timely resolution of such matters.
September 28, 2026
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Return filing and tax audit deadlines are extended for the identified taxpayer category under the applicable statutory framework.
CBDT extends the Assessment Year 2026-27 Return of Income filing deadline for persons identified at serial no. 2 in the Table below Explanation 2 to section 139(1) of the Income-tax Act, 1961, from 31 October 2026 to 21 November 2026. The specified date for furnishing the audit report for the same class is extended from 30 September 2026 to 21 October 2026.
September 28, 2026
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Courier-based gold smuggling enforcement targets concealed distribution through paper entities and foreign-origin gold consignments nationwide.
Coordinated customs enforcement targeted an organised gold-smuggling network that used courier consignments to distribute foreign-origin gold after cross-border entry. The operation led to seizure of 6.61 kg of gold bars under the Customs Act, 1962, and arrests of eleven associated persons. The network allegedly split gold into small consignments and used paper entities or persons without legitimate gold transactions to conceal distribution through courier channels.
September 28, 2026
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Anti-drug awareness and cultivator outreach combine prevention, direct grievance redressal, and safeguards against illicit narcotics diversion.
Jan Sunwayi programmes provide direct, prompt and accessible grievance redressal for opium cultivators, including name corrections, Namantaran, and eligibility connected with the upcoming Settlement Operation. Cultivators are advised to avoid middlemen or intermediaries and seek clarification or assistance directly. These measures complement anti-drug awareness and preventive outreach aimed at preventing illegal trafficking, diversion and abuse of narcotic drugs and psychotropic substances.
September 28, 2026
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NDPS enforcement targets concealed poppy straw, opium and cannabis trafficking through seizures, arrests, and continuing supply-chain investigation.
Narcotics enforcement operations in Rajasthan led to seizures of poppy straw, opium, hydroponic cannabis, cash, vehicles and a loaded country-made pistol, with four arrests. Poppy straw was recovered from vehicles and premises, including a truck where it was concealed beneath cement bags. Opium and cash were recovered from residential premises, while hydroponic cannabis concealed in an international parcel was recovered at the Foreign Post Office, Jaipur. The seized articles were taken under relevant provisions of the Narcotic Drugs and Psychotropic Substances Act, 1985, and supply-chain investigation continues.
September 28, 2026
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Free trade agreement market access is positioned to expand export opportunities and international investment for local entrepreneurs.
Free Trade Agreement-led market access is positioned to expand international opportunities for entrepreneurs in Uttar Pradesh by supporting exports, investment inflows and access to overseas markets. International trade engagement is supported through direct business access to global markets, buyer-seller meetings and promotion of the State's products, cuisines and services. Export expansion, international investment, tourism and global recognition of State brands form the stated next phase of economic development, supported by coordination between governments and trade and industrial stakeholders.
September 28, 2026
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Multilateral infrastructure cooperation guides annual development bank participation and bilateral engagement on sustainable investment and economic connectivity.
The official visit includes participation, as India's Governor, in the Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank, alongside bilateral meetings and engagement with governmental leadership, business leaders and investors. The AIIB focuses on sustainable infrastructure and productive-sector investment in Asia to promote sustainable economic development, wealth creation and infrastructure connectivity.
September 25, 2026
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Reciprocal trade agreement negotiations face tariff and subsidy pressures as both governments pursue lower bilateral trade barriers.
India-US bilateral trade negotiations seek completion of the first-phase Bilateral Trade Agreement through a reciprocal trade arrangement lowering trade barriers and tariffs. Further negotiations are required because of changed US tariff conditions, forced-labour tariffs on Indian goods, a possible investigation into excess industrial capacity and subsidies, and sanctions legislation relating to Russia. Ministerial and bilateral engagements will review progress on the proposed reciprocal arrangement.
September 25, 2026
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Banking strike contingency measures direct customers toward advance transactions and digital channels as branch operations may be disrupted.
Banking-service continuity measures anticipate possible disruption from a three-day employee strike. Customers are advised to complete essential transactions in advance and use ATMs/ADWMs, mobile and internet banking, UPI, business correspondent points and other digital channels. Branch and office operations at participating institutions may be affected, while essential services are to be maintained where possible. Union demands include a five-day banking week, pension improvements and transition options from the National Pension System to the old pension scheme.
September 25, 2026
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Government borrowing calendar: Reduced dated-securities borrowing will use weekly auctions, green bonds, switches and buyback operations.
Second-half dated-security borrowing will be completed through weekly auctions across maturities ranging from 3 years to 50 years, including Sovereign Green Bonds. Switching and buyback operations will continue to smooth the redemption profile, while a greenshoe option may permit retention of additional subscriptions. Treasury Bill borrowing will proceed through 91-day, 182-day and 364-day instruments. Auctions will offer non-competitive bidding for specified retail investors, and flexibility is retained to modify issuance terms or introduce non-standard maturity instruments, floating-rate bonds and inflation-indexed bonds.
September 25, 2026
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Interest-free working capital assistance for FCV tobacco growers supports liquidity, institutional loan repayment, crop inputs, and reduced private borrowing.
A one-time, interest-free working-capital loan of Rs. 50,000 per barn is approved for FCV tobacco growers in Andhra Pradesh under the Interest-Free Working Capital Assistance Scheme. Covering about 44,000 growers, the assistance is proposed to be delivered through direct benefit transfer. It is intended to provide liquidity for household requirements, institutional loan repayment and crop inputs, while reducing dependence on private borrowing.
September 25, 2026
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Government securities auction calendar establishes retail bidding access, flexible issuance terms, greenshoe subscriptions, and periodic debt switch operations.
Each auction carries a non-competitive bidding facility, under which five per cent of the notified amount is reserved for specified retail investors. The Government may modify indicated amounts, issuance periods and maturities, and may issue instruments with non-standard maturities, floating-rate bonds or inflation-indexed bonds, having regard to governmental requirements, market conditions and other relevant factors. It may retain additional subscriptions through a greenshoe option and conduct switch or buyback auctions of dated securities.
September 25, 2026
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Market borrowing plan sets dated securities auctions, Treasury Bill issuance, redemption management, and temporary cash-flow support.
Government market borrowing for the second half of FY 2026-27 is to be raised through weekly auctions of dated securities, including Sovereign Green Bonds, across maturities from 3 to 50 years. Debt-management measures include switching and buyback operations to smooth the redemption profile and a greenshoe option for additional subscriptions. Treasury Bills are to be issued through weekly auctions in 91-day, 182-day and 364-day maturities. The Ways and Means Advances limit is fixed to address temporary mismatches in government accounts.

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Banking Sector Reforms: A Journey, Not a Destination (Shri S. S. Mundra, Deputy Governor – August 24, 2016 – at India Banking Reforms Conclave 2016 organized by Governance Now in Mumbai)

August 26, 2016

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Dignitaries on the dais; colleagues from the banking and financial sector; members of the print and electronic media; ladies and gentlemen! At the outset I thank the Management of the Governance Now, one of the country’s leading publications shaping the public opinion on governance and public policy, for inviting me to deliver the inaugural address at this India Banking Reforms Conclave 2016. I feel this conclave comes at a very important juncture for the economy and more particularly, for the banking sector.

The title of my speech today is “Banking Sector Reforms: A Journey, Not A Destination.” Why do I say so? It would be relevant here to peep into some history. Though some of the issues cut across the banking industry, the emphasis here is predominantly on public sector banks (PSBs).

• PSBs came into existence with nationalization in the year 1969/1980. How was the banking scenario in the next couple of decades?

  • Highly regulated credit flow (selective credit control, credit authorization scheme, no consumption credit & so on)
  • Militant unionized atmosphere- resistance to technology
  • Stiff branch authorization norms, loan melas, opaque income recognition & asset classification (IRAC) norms ….Just to name a few.

• Post-reform years (after 1991) saw several far-reaching reforms in banking industry also. A few of these include:

  • Deregulation of credit processes and interest rate structures
  • Introduction of prudential IRAC norms
  • Licensing of banks in the private sector/part divestment in PSBs
  • Migration to CBS
  • VRS(year 2001)
  • Gradual reduction in pre-emptions

• Resultantly by the year 2008, banks’ balance sheets were much stronger/growth was strong/ NPAs had come down from the peak of around 12% to slightly over 2%

• Then two developments took place:

  • Global Financial Crisis
  • Introduction of PPP model in Infrastructure building

• Banks were enthusiastic, rather major partners, in this newly opened field supported by accommodative fiscal and easy monetary policies. However, the process got plagued by:

  • Weak governance, lax underwriting, high corporate leverage, several policy logjams
  • Resultant consequences are well known

Fast Forward to June 2016

Asset Quality

Bank Group

Gross NPAs to Gross
Advances (%)

Restructured Std Adv to
Gross Advances (%)

Stressed Advances
(GNPAs+RestStdAdv) to
Gross Advances (%)

Mar-15

Mar-16

Jun-16

Mar-15

Mar-16

Jun-16

Mar-15

Mar-16

Jun-16

PSBs

5.4

9.8

11.3

7.8

4.6

4.1

13.2

14.4

15.4

Pvt. SBs

2.2

2.7

2.8

2.4

1.8

1.6

4.6

4.5

4.4

FBs

3.2

4.2

3.7

0.1

0.3

0.3

3.3

4.5

4.0

All SCBs

4.6

7.8

8.7

6.3

3.7

3.3

10.9

11.4

12.0

 

Profitability

In Rs. Crore

Bank Group

Return on Total
Assets
(annualized)

Earning Before
Provisions & Taxes
(EBPT) FY

Provisions for NPAs during the year

Net Profit/Loss
(PAT)

Mar-15

Mar-16

Mar-15

Mar-16

Mar-15

Mar-16

Mar-15

Mar-16

PSBs

0.43

(0.26)

127,419

124,810

57,842

1,44,608

30,869

(20,006)

Pvt. SBs

1.65

1.54

66,208

79,858

12,953

20,099

35,832

39,672

FBs

1.82

1.67

25,192

25,160

3,092

5,923

12,764

12,619

All SCBs

0.78

0.29

218,819

229,829

73,887

1,70,630

79,465

32,285

Source: OSMOS returns, Domestic Operations
Figures for Jun-16 are provisional.

 

• To be fair to the sector, some of the events were external & hence, not in control of the Bank management. But the important lesson is unambiguous:

“In absence of strong structural and Governance reforms, consistency of the performance would always remain susceptible to such events”

• Such reforms in private sector banks have to be focussed on misaligned incentives/compensations

• Agenda for PSBs is much larger, however, the immediate and overriding priority is to complete the clean-up of the banks’ balance sheets which is underway

• Resultant provisioning needs coupled with meeting Basel III norms/migration to IFRS & to capture due market share in growth funding would entail recapitalisation of most of these banks. Seeking this capital externally at this stage may be difficult as also value eroding for the majority owner.

• Simultaneously process has to continue to bestow greater “Governance Autonomy” to these banks. My sense is that the Government ownership of these banks has resulted in crucial stability and resilience in trying times. Immediate roadmap should, therefore, be towards complete “managerial autonomy”. If Government remains the largest shareholder, not necessarily majority shareholder, it still serves the intended purpose. At the same time, it releases these banks from multi-institutional oversights and overlapping controls.

• HR autonomy would naturally flow from the above. Banks would be able to move towards competitive compensation, flexible hiring and move away from the “collective bargaining”-just to quote a few from many possible outcomes.

• There could be a reasonable apprehension that such measures can adversely impact the objectives of inclusive growth being attempted through several national missions and schemes. I would argue that advent of several new institutions (as recently licensed by RBI), new processes, digital advancements & competition would ensure that these objectives are well supported.

• Similarly, some of the reforms are driven by a global reform structure. These pertain to capital, liquidity and disclosure standards under the Basel III package. Some such other measures are TLAC, SIBs, Misconduct rules, etc. Few other measures are currently under discussion, such as, imposing risk weight on sovereign exposure and new standardised approach for credit and operational risk.

Having dealt with the framework of macro reforms, let me now briefly touch upon nuts and bolts of the reform process.

Governance in Banks

  • Some action already taken- Setting up of BBB, post of CMD split into a non-executive Chairman and a CEO, Selection process made more objective
  • Going forward, BBB should also cover selection of other Board members
  • Continuity of Top Management is crucial, hence reasonably longer tenure for CEO (say 5 years) is necessary. Initial appointment could be for 3 years with certain set milestones, which if achieved , should earn automatic extension for next 2 years
  • An orderly succession plan is crucial to ensure no abrupt changes in key direction of the organization

Apart from the whole gamut of credit risk, which is already discussed extensively several times and at several places, the following are the other areas needing prior attention of the Boards.

Operational Risks

  • Fraud cases – Recurrent failure of internal control machinery noticed, Delayed Recognition and laxity in follow up leads to cold trails, Need to bring fraudsters as also errant valuers, accountants , lawyers to book to stop them from duping the system in future
  • Fraud Registry and a Quick Response Team set up at RBI to facilitate information –sharing and for closely tracking high-value fraud cases
  • KYC/AML Compliance failures – Stricter enforcement action a global norm now, Strong Centralized processing and surveillance needed as branches do not have the capability to handle such areas effectively.

Customer service

  • Charter of customer Rights- RBI’s Observance period now over, Implementation monitoring a priority
  • Mis-selling- Risk of silent customer simply moving away as account number portability is now a real possibility

Technology: Cyber/Digital

  • Digitization/ Fintech driving new possibilities in the field of finance
  • Technology, a double edged sword - instances of cyber-attacks, identity thefts, ATM frauds etc. Bangladesh Bank case and other near-misses

Hence, Bank Boards would do well to focus on the following Governance issues:

  • Strategy and Risk Management are two most important and least focussed items
  • Boards should set the “ Risk Appetite” and ensure adherence- Importance of 3 lines of defence- Business verticals themselves/ Risk Management Department and Compliance / Internal Audit
  • Hiring/Grooming/Retention of frontline staff... e-learning for capacity building
  • Instil Organisational Culture (what you do when no one is watching)
  • Put an enabling mechanism to ensure that voice of middle/lower level functionaries reaches the Top quickly (G-30 Report)
  • Bad news should travel faster

Conclusion

  • Reform measures especially on Governance have achieved traction and attained a certain degree of maturity. Need now is to accelerate this process on the lines as covered in various preceding points.
  • Thank the Governance Now management for inviting me to this event and providing me an opportunity to share my thoughts with this intelligent audience.

Thanks!

Topics

Acts Income Tax