Indian Bank Share Price

FDI in India: Foreign Money Is Coming In, But Is It Staying?

Imagine India as a shop attracting foreign investors. Money is coming in, but some investors are selling their existing stakes while Indian companies are also investing abroad. So, the money entering India is not the same as the money staying in India. Foreign Direct Investment (FDI) usually involves a lasting interest in an Indian business, while Foreign Portfolio Investment (FPI) generally involves smaller holdings in listed shares that can be sold quickly. But here’s the interesting part: high FDI inflows don’t automatically mean more factories or new jobs. In FY26, India recorded strong gross FDI inflows, but money also flowed out through foreign investors selling stakes and Indian companies investing overseas. Now, international companies are taking stakes in Indian banks. This signals confidence in India's financial sector, but buying an existing bank is different from building a new factory. ICICI Bank

Fed Holds at 3.75-4%: Impact on Indian Banks

The US Fed kept its benchmark rate unchanged at 3.75%-4.00% on 28 Oct, as per media reports. The vote was 10-2, so the pause came with two dissents. It followed the 25 bps hike in September, which was the first increase since July 2023. A hold removes the immediate risk of a fresh hike, but forward guidance and the US 10-year yield, which was hovering near 5% before the decision, remain the key swing factors for India. For Indian banks, three channels are worth watching. First, foreign flows: private banks such as

Why Are Indian Banks’ Profit Margins Falling?

Imagine a bank getting cheaper money but still earning less profit on every rupee it lends. Sounds strange, right? In June 2026, the RBI introduced a special dollar-swap window that encouraged Indian banks to attract NRI dollar deposits. Around $133 billion reportedly flowed through this mechanism. But here’s the twist. Banks could bring dollars to the RBI, receive rupees, and avoid the usual currency-hedging cost. This made the deposits cheaper than comparable domestic funding. However, some NRIs used borrowed money to create these deposits. Banks’ deposit growth therefore looked stronger than their underlying business growth. Think of it like a shopkeeper borrowing money to fill the shop. The shop looks bigger, but that doesn’t automatically mean sales or profits have increased. Banks then used the rupees to lend in India, where lending rates are generally higher. Yet the overall impact depends on funding costs, loan demand, competition and how efficiently the money is deployed. That’s why strong deposit growth does not automatically mean stronger profitability. Falling net interest margins (NIMs) tell investors to look beyond headline numbers. ICICI Bank Ltd.

YES BANK Quarterly Results Analysis Q2FY2027

Emkay Projects H2 FY27 NIM Recovery for Indian Lenders

According to a report by Emkay Research, Indian banks are projected to record a 25.4% year-on-year surge in net profit for the July–September quarter (Q2 FY27), driven by robust credit expansion, solid core banking revenues, and lower loan-loss provisions, despite reduced treasury income. The brokerage characterized Q2 as a "one-off quarter" marked by substantial inflows of Foreign Currency Non-Resident (FCNR-B) deposits, which catalyzed systemic credit growth to 18.1% year-on-year as of mid-September and accelerated deposit growth to 17.3% from 12% in June. Although this influx of foreign currency liabilities is expected to temporarily weigh on lending margins, overall profitability across the banking sector remains strong. To manage the surge in liquidity, banks are anticipated to take about two quarters to fully deploy the additional capital—initially using funds to retire high-cost liabilities and allocate toward secondary assets before rechanneling them into primary credit lines. While net interest margins (NIMs) face compressed pressure during the second quarter due to FCNR-B funding costs, Emkay forecasts a structural recovery in the second half of FY27. This margin expansion will be bolstered by the repayment of expensive debt, full loan-book deployment, and yield benefits from recent rate hikes for lenders holding significant floating-rate portfolios, alongside the eventual normalization of foreign currency deposit flows.

Indian Bank profit rises 15% as asset quality improves

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Indian Bank Limited (