Finance News Update: Key Developments on Investing, Public Financing, and Banking – August 27, 2025
Published: Wednesday, August 27, 2025 | 11:15 AM IST
Source: Business Standard
Bank Holiday Today: Ganesh Chaturthi Observance
As per the Reserve Bank of India’s (RBI) regional holiday calendar, banks across certain regions of India will remain closed today, Wednesday, August 27, 2025, in observance of the first day of the Ganesh Chaturthi festival. Customers are advised to plan banking transactions accordingly.
Market and Policy Highlights
Diwali Tax Cuts and Tariff Concerns
The government’s move to reduce consumption taxes ahead of Diwali is expected to stimulate demand for durable goods such as automobiles, televisions, and air conditioners. However, analysts caution that the impact may not be immediate. Concurrently, concerns remain about rising tariffs from the United States, which could potentially exacerbate challenges for India’s trade prospects.
Government Bonds Show Recovery, SDL Yields Surge
Following a bout of short covering on Tuesday, government securities prices recovered their previous losses, with the benchmark 10-year bond yield closing flat at 6.60%. Meanwhile, State Development Loans (SDL) witnessed a sharp increase in spreads, widening to 80 basis points, reflecting heightened market pressures.
Overseas Fundraising by NaBFID and Nabard
Facing pressure from rising bond yields and global uncertainties, the National Bank for Financing Infrastructure and Development (NaBFID) plans to raise approximately $1 billion through external commercial borrowings (ECBs) and dollar-denominated bonds by the end of fiscal year 2026. Similarly, the National Bank for Agriculture and Rural Development (Nabard) aims to initiate fundraising efforts overseas within the same timeline.
Sectoral Updates
Gems and Jewellery Sector Appeals for RBI Support
The gems and jewellery industry is seeking relief measures from the RBI after the imposition of a 50% tariff on exports by the United States. Industry representatives have warned of potential payment delays, job losses, and widespread sector stress if no immediate support is extended. Requests include loan repayment relief and EMI support.
SBI Card and Flipkart Launch Co-Branded Credit Card
In an effort to enhance digital shopping experiences, SBI Card has partnered with Flipkart to introduce a co-branded credit card. Customers can conveniently apply for the card via the Flipkart app or SBI Card’s official website, promising seamless access to exclusive shopping benefits.
Payments and Finance Innovations
UPI’s International Expansion
Unified Payments Interface (UPI) continues its rapid global growth, with cross-border transactions increasing 20-fold over the past year, reaching 755,000 transactions in fiscal year 2025. The platform is now operational in seven countries and is supported by over 1.5 million merchants worldwide.
Banks and Exporters Brace for New Tariffs
Senior bankers have revealed that financial institutions are outlining plans to assist exporters in navigating the impact of the 50% US tariffs effective from August 27. Proactive measures aim to mitigate financial stress on exporters and sustain trade momentum.
Banking and Regulatory Developments
SBI Seeks Regulatory Approval to Finance Acquisitions
State Bank of India’s chairman has urged regulatory authorities to permit the banking sector to finance mergers and acquisitions, emphasizing the importance of such activity in driving corporate growth and capacity expansion.
LIC Reclassified as Public Shareholder in IDBI Bank
The Securities and Exchange Board of India (SEBI) has approved Life Insurance Corporation’s (LIC) reclassification as a public shareholder in IDBI Bank following a strategic divestment. The approval comes with conditions restricting voting rights and board representation.
Pension Fund Deposits Decline in Public Sector Banks
Public sector banks have experienced a significant fall in pension fund deposits, plummeting by 87% over five years. This decline has shifted deposit flows toward private banks, which are increasingly attractive to customers seeking higher returns and convenience.
Corporate and Fintech Highlights
Altum Credo Secures ₹170 Crore Funding
Affordable housing lender Altum Credo, based in Pune, announced a successful ₹170 crore funding round led by BII. The fresh capital will enable the company to scale operations nationwide.
Fintech Firm Kiwi Raises $24 Million Series B
Kiwi, a fintech startup, secured $24 million in Series B funding, aiming to reach profitability within two years. Investors include Nexus Venture Partners, Stellaris Venture Partners, and Omidyar Network.
Notable Appointments
RBI’s Rajiv Ranjan Named Vice President at New Development Bank
Rajiv Ranjan, an RBI Executive Director, has been appointed Vice President and Chief Risk Officer of the BRICS multilateral New Development Bank (NDB). He will assume his new role in September for a five-year term.
Tools and Resources for Investors and Individuals
- Income Tax Calculator 2025-26: For tax planning and returns
- EMI Calculator Tool: To estimate loan repayments
- Latest Market Data: Including stock prices and corporate bond trends
- Personal Finance Insights: Tailored advice and updates
Stay tuned to Business Standard for continuous updates on finance, banking, and investment news impacting India and the global economy.
About Business Standard
Business Standard is a premier source of business news with comprehensive coverage spanning markets, companies, economy, finance, and policy developments. For detailed analysis and real-time updates, visit Business Standard.
© 2025 Business Standard Private Ltd. All rights reserved.