Dearness Allowance(DA) has been hiked for bank employees from November 2025. The DA has been hiked by 2.80%.
DA increase for Bank Employees from Nov-2025
Canara Bank Q2 net profit rises 19%, asset quality improves
Canara bank's net interest income increasing by 1.47% quarter on quarter (QoQ) but dropping by 1.87% year on year (YoY). Total interest expenses climbed 9.86% YoY to Rs 22,403 crore, while total interest income grew 6.07% YoY to Rs 31,544 crore.
Total expenditure was Rs 30,010 crore, up 10.87% YoY, while total income was Rs 38,598 crore, up 1.41% QoQ and 11.17% YoY. Operating profit increased by 12.20% YoY to Rs 8,588 crore, while provisions jumped by 4.78% YoY to Rs 3,814 crore.
The bank's gross business increased by 13.55% YoY and 4.48% QoQ to Rs 26,78,963 crore. Within this, overseas gross business shot up by 21.66% YoY to Rs 2,02,536 crore, while domestic gross business climbed by 4.45% QoQ and 12.93% YoY to Rs 24,76,427 crore. In terms of lending, both domestic advances at Rs 10,81,428 crore and offshore advances at Rs 69,613 crore, which witnessed a noteworthy 20.34% YoY rise, contributed to the growth of global gross advances to Rs 11,51,041 crore, up 4.99% QoQ and 13.74% YoY.
With domestic deposits at Rs 13,94,999 crore and overseas deposits at Rs 1,32,923 crore, global deposits totalled Rs 15,27,922 crore, gaining 4.11% QoQ and 13.40% YoY. A balanced credit growth trajectory in accordance with rising deposits is shown by the Global Credit-Deposit (C-D) Ratio, which rose slightly to 75.33%. In the September 2025 quarter, Canara Bank's domestic deposit base grew steadily thanks to solid performance across multiple key areas. The total domestic deposits increased by 12.62% YoY and 4.20% QoQ to Rs 13,94,999 crore. In this, current deposits jumped dramatically by 40.48% QoQ and 62.84% YoY to Rs 75,920 crore, while savings deposits went up by 3.07% QoQ and 3.37% YoY to Rs 3,52,195 crore.
The bank's low-cost deposit base was strengthened by this strong spike in current accounts, as CASA Deposits (Current Account and Savings Account) surged to Rs 4,28,115 crore, representing 8.18% QoQ and 10.53% YoY growth
Term deposits grew by 2.53% QoQ and 13.57% YoY to reach Rs 9,66,884 crore, with Rs 5,63,683 crore coming from retail term deposits. Global deposits, on the other hand, increased by 13.40% YoY and 4.11% QoQ to Rs 15,27,922 crore.
Canara Bank's asset quality continued to improve in the September 2025 quarter. The Gross NPA ratio dropped dramatically to 2.35% from 3.73% in September 2024 as the Gross NPA fell to Rs 27,040 crore from Rs 37,733 crore a year earlier. In a similar vein, the Net NPA plummeted to Rs 6,113 crore, and the Net NPA ratio improved to 0.54% from 0.99% the previous year.
Latest Updates on Bank Merger and Privatisation
According to sources, the Indian government is creating a new plan to combine a few public sector banks. The government intends to combine Union Bank of India with Bank of India, according to sources. If all goes according to plan, the merger will result in the creation of India's second-biggest bank, after State Bank of India, the nation's largest bank in terms of assets. Mumbai serves as the headquarters for both Union Bank of India and Bank of India.
As of June 30, 2025, Bank of Baroda had ₹18.62 trillion in total assets, making it the second largest public sector bank in India. Among all banks, including private banks like ICICI Bank and HDFC Bank, its asset base places it fourth. A merged Union Bank of India and Bank of India would have assets of ₹25.67 trillion.
Additionally, the ministry is considering combining Indian Bank and Indian Overseas Bank. Chennai is home to the headquarters of both banks. In subsequent stages, the privatization of Bank of Maharashtra and Punjab & Sind Bank is being discussed. The merger of other banks under government control may be taken into consideration.
Although merger timelines are still pending, the process is expected to begin in FY27. In order to establish fewer but more powerful institutions, the government is developing a massive merger plan that would combine smaller banks with larger ones. The goal is to assist the next stage of credit expansion and financial reforms while fortifying and improving the banking sector.
The government is reportedly thinking of combining Indian Overseas Bank (IOB), Central Bank of India (CBI), Bank of India (BOI), and Bank of Maharashtra (BoM) with bigger banks like Punjab National Bank (PNB), Bank of Baroda (BoB), and State Bank of India (SBI).
Kotak Mahindra Bank Q2 Net profit falls 2.7% YoY
Private lender, Kotak Mahindra Bank on October 25 reported a 2.7 percent year-on-year fall in its standalone net profit to Rs 3,253 crore in the second quarter of the current financial year. In a year ago period, net profit stood at Rs 3,344 crore.
Net Interest Income (NII) for Q2FY26 increased to Rs 7,311 crore, up 4 percent YoY from Rs 7,020 crore in Q2FY25. Net Interest Margin (NIM) was 4.54 percent for Q2FY26. Cost of funds was 4.70 percent for Q2FY26.
Net Advances increased 16 percent YoY to Rs 462,688 crore as at September 30, 2025 from Rs 399,522 crore as at September 30, 2024.
As at September 30, 2025, GNPA was 1.39 percent and NNPA was 0.32 percent (GNPA was 1.49 percent and NNPA was 0.43 percent at September 30, 2024). As at September 30, 2025, Provision Coverage Ratio stood at 77 percent.
Government asks PSU banks to take steps to reduce employee stress and improve working conditions
Public sector banks have been urged by the government to take action to lessen employee stress and enhance working conditions. Numerous bank employees have complained about excessive work pressure, long hours, irrational business targets, and staff shortages, which has led to this decision. According to officials, the boards of all public sector banks (PSBs) have been instructed by the finance ministry to determine the primary reasons for employee stress and create detailed plans of action to address them. According to a government official, the banks have promised to implement the government's EASE 8.0 reforms program at the level of individual banks as well as the level of the entire policy.
The action follows many grievances from officers' groups and bank unions. Numerous workers claimed they are required to put up long hours, deal with increasing insurance and sales goals, and even be given non-banking tasks like election work. Numerous PSU Bank personnel have taken their own lives. The toxic work culture affects not just younger employees but even senior personnel. A senior manager of Bank of Baroda, Shri Iswar Chand Jha, recently took his own life. An AEO at Canara Bank allegedly committed suicide as a result of work-related stress. The passing of a Bank of Baroda chief manager was one piece of news that rocked the nation. The chief manager of Bank of Baroda in Baramati, Pune, committed suicide as a result of work-related stress.A few months ago, Central Bank Manager had committed Suicide. His Wife alleged that Bank Seniors were Mentally Harassing Him.
These are only a handful of incidents that demonstrate the poisonous workplace culture that exists in banks. Many more bank employees have taken their own lives. You can read about banker suicides here if you'd like. These days, if we discuss work pressure and a poisonous workplace, we hear about it every day. A Bank of Baroda branch manager refused to allow employees to take time off to care for his ailing mother. A 29-year-old girl just quit her job at Punjab National Bank because of the toxic work environment. On social media, her video had gained a lot of popularity. She claimed that she eventually quit her job because she was unhappy with it.A lot of banks deny leaves to staff and taking leave during month end or quarter end is considered a sin.
This shows that the working environment in public sector banks is now pathetic. The Government needs to immediately intervene and improve the work culture in banks otherwise banks will surely lose the talented staff.
Part of the EASE Reforms
The EASE (Enhanced Access and Service Excellence) programme is an ongoing reform initiative by the Department of Financial Services (DFS) to improve performance and efficiency in public sector banks. Under the EASE 8.0 and EASERise initiatives, the government is focusing on employee welfare, leadership development, and inclusive growth in PSBs.
At the recent PSB Manthan conclave, a special session was held on “Building an inclusive and future-ready workforce.” The session focused on diversity, equity, and skill development across various roles and genders in the banking system.
Banks Introduce New Well-Being Measures
To address stress and improve morale, several PSBs have started new initiatives such as Mentorship programmes for professional growth, Digital counselling platforms for mental well-being, Employee Health Index (EHI) surveys conducted every quarter. Out of 12 public sector banks, seven banks are now conducting EHI surveys regularly, and three banks are sharing the results with their boards to take quick action when needed, a senior bank executive said.
Punjab National Bank(PNB) Q2 net profit rises 14% YoY
On October 18, the state-owned lender Punjab National Bank said that its net profit for the second quarter of the current fiscal year increased by 14% year over year to Rs 4,904 crore.
On a year-over-year basis, operating profit grew by 5.5 and 6.5 percent for Q2FY26 and HY1FY26, respectively, to Rs 7,227 crore and Rs 14,308 crore.
For H1FY26, net interest income was Rs 21,047 crore, representing a 0.26 percent YoY increase. The total income for Q2FY26 was Rs 36,214 crore, and for H1FY26, it was Rs 73,445 crore, indicating YoY growths of 5.1 and 10.3 percent, respectively.
At Rs 31,872 crore, total interest income for the second quarter increased 6.7% over the previous year. On a year-over-year basis, total interest expenses for Q2FY26 were Rs 21,403 crore, while for H1FY26 they were Rs 42,789 crore, up 10.6 and 14.3 percent, respectively.
From 4.48 percent on September 30, 2024, to 3.45 percent on September 30, 2025, the GNPA ratio increased by 103 basis points on a year-over-year basis. From 0.46 percent on September 30, 2024, to 0.36 percent on September 30, 2025, the NNPA ratio increased by 10 basis points on a year-over-year basis. Gross Non-Performing Assets decreased from Rs 47,582 crore on September 30, 2024, to Rs 40,343 crore on September 30, 2025, a decrease of Rs 7,239 crore.
From Rs 4,674 crore on September 30, 2024, to Rs 4,026 crore on September 30, 2025, Net Non-Performing Assets decreased by Rs 648 crore. Current deposits rose to Rs 74,215 crore, representing a YoY gain of 9.0 percent, while savings deposits rose to Rs 5,08,964 crore, representing a YoY growth of 4.2 percent.
CASA Deposits grew by 4.7 percent year over year to Rs 5,83,178 crore. CASA As of September 30, 2025, the bank's share is 37.29 percent, which represents a 30 basis point increase from June 30, 2025. As of September 30, 2025, total term deposits have grown 14.7% year over year to Rs 10,33,902 crore.
Total Retail credit increased by 8.8 percent YoY to Rs 2,72,210 crore as on September 30, 2025. The bank grew under Retail Advances excluding IBPC recording a YoY growth of 18.1 percent.
Within Retail Advances excluding IBPC: Housing Loan grew by 12.9 percent YoY to Rs 1,24,099 crore, and Vehicle loan posted a growth of 30.9 percent YoY to reach Rs 29,512 crore.
Agriculture advances grew by 13.0 percent on YoY basis to Rs 1,83,987 crore and MSME advances increased YoY by 18.6 percent to Rs 1,79,220 crore.
HDFC Bank Q2 Net profit rises 10.8%
It is anticipated that the banking industry as a whole would post poor results for the quarter that ended in September 2025, with sector profitability plunging before rebounding in H2FY26.
The July–September quarter saw modest increases in HDFC Bank's net profit and net interest income (NII). In the second quarter of FY26, HDFC Bank posted a standalone net profit of ₹18,641.28 crore, up 10.8% from ₹16,820.97 crore in the same period last year.
In the second quarter of FY26, HDFC Bank posted a standalone net profit of ₹18,641.28 crore, up 10.8% from ₹16,820.97 crore in the same period last year. During the fiscal second quarter that concluded in September 2025, the lender's Net Interest Income (NII), which is the difference between interest collected and interest paid, increased 4.8% year over year to ₹31,551.5 crore from ₹30,114 crore.
In the second quarter of FY26, pre-provisions operating profit (PPOP) climbed 18.5% to ₹27,923.60 crore from ₹24,705.74 crore, YoY. Over the course of the quarter, the private sector lender's asset quality increased sequentially.
Net NPA down 6.75% QoQ to ₹11,447.29 crore, while gross NPA fell 7.42% QoQ to ₹34,289.48 crore. The Net NPA ratio decreased 5 bps QoQ to 0.42%, while the Gross NPA ratio reduced 16 bps QoQ to 1.24%.
Here are the highlights of HDFC Bank Q2 results today:
> Net profit up 10.8% YoY at ₹18,641.28 crore
> NII up 4.8% YoY at ₹31,551.5 crore
> PPOP up 18.5% at ₹27,923.60 crore
> Gross NPA down 7.42% QoQ at ₹34,289.48 crore
> Net NPA down 6.75% QoQ at ₹11,447.29 crore
> Gross NPA ratio down 16 bps QoQ at 1.24%
> Net NPA down 5 bps QoQ at 0.42%
> Provisions at ₹3,500.5 crore, up 29.6 YoY, down 75.76% QoQ
> Total deposits up 12.1% YoY at ₹28.02 lakh crore
> Gross advances up 9.9% YoY at ₹ ₹27.69 lakh crore
> Total number of branches at 21,417
Federal Bank Q2FY26 Net profit drops 9.51%
Due to a spike in provisions, Federal Bank reported a 9.51% decrease in its September quarter consolidated net profit at Rs 991.94 crore on Saturday. For the previous year, the private sector lender earned a net profit of Rs 1,096.25 crore.
Due to a 6.23 percent increase in its loan book and a 0.06 percent constriction in the net interest margin year over year at 3.06 percent, the core net interest income increased 5.4% to Rs 2,495 crore.
According to a senior bank official, the lender wants to increase the book by 10–12% in the second half of the fiscal year. This is higher than the 7.6% growth in the first half and will result in a credit growth of less than 10% in FY26, even if the top end of the target for the second half is achieved.
This will be less than FY25's 12.14 percent. The bank's other revenue increased by 12.26% to Rs 1,082 crore. Manian stated that the quarter's deposit increase was 7.36% and that the Federal Bank will be concentrating on growing the proportion of low-cost current and savings account balances in the future.
According to the bank management, the slippages are less than the Rs 658 crore from the previous quarter, and the slippage ratio has been kept below 1%. From 1.91 percent at the end of the previous quarter and 2.09 percent on an annual basis, the lender's gross non-performing assets ratio improved to 1.83 percent.
The bank's overall provisions increased from Rs 196.14 crore to Rs 397.44 crore over the previous year, which had the biggest negative impact on profit growth. Manian clarified that the provision statistics are not comparable because the bank changed its provision policy on the exposures to unsecured loans in the December quarter of last year.
ICICI Bank Q2 Net profit rises 5.2%
The standalone net profit of ICICI Bank, the second-biggest private sector bank in India, increased by 5.2% to ₹12,359 crore in the second quarter of FY26 from ₹11,746 crore in the same quarter of the previous fiscal year.
In Q2FY26, net interest income (NII), which is the difference between interest collected and interest spent, increased 7.4% year over year (YoY) to ₹21,529 crore from ₹20,048 crore. The net interest margin was 4.30 percent.
According to ICICI Bank, pre-provisions operating profit (PPOP) increased by 3.43% year over year to ₹17,297.96 crore from ₹16,723.18 crore in the September quarter.
Provisions (excluding provision for tax) declined to ₹914.11 crore in Q2FY26 compared to ₹1,233.09 crore YoY, and ₹1,814.57 crore, QoQ.
Asset quality of the bank improved sequentially. Gross Non-Performing Assets (GNPA) in Q2FY26 declined 3.57% to ₹23,849.66 crore from ₹24,732.65 crore in the previous quarter. Net NPA decreased 2.41% to ₹5,827 crore from ₹5,971.09 crore, QoQ.
Gross NPA as a percentage of Gross Advances, or Gross NPA ratio, in Q2FY26 dropped to 1.58% from 1.67%, QoQ, while Net NPA ratio eased to 0.39% from 0.41%, QoQ.
According to ICICI Bank, as of September 30, 2025, its net domestic advances increased by 3.3% sequentially and 10.6% year over year. As of September 30, 2025, the retail loan portfolio accounted for 52.1% of the overall loan portfolio, growing 6.6% year over year.
The rural banking portfolio fell 1.3% year over year, whereas the business banking portfolio increased 24.8%. As of September 30, 2025, total advances have risen by 3.2% QoQ and 10.3% YoY to ₹14,08,456 crore.
In comparison to the minimum regulatory standards of 11.70% and 8.20%, respectively, ICICI Bank's total capital adequacy ratio was 17.00% and its CET-1 ratio was 16.35% as of September 30, 2025.
In Q2FY26, average deposits climbed by 1.6% QoQ and 9.1% YoY to ₹15,57,449 crore. While average savings account deposits increased by 8.5% year over year, average current account deposits increased by 12.6% year over year. By the end of the September 2025 quarter, total deposits had increased to ₹16,12,825 crore, a 7.7% YoY increase. In Q2FY26, the CASA ratio was 39.2%.
IndusInd Bank Q2 results: Posts net loss due to higher provisions, NII drops 17.5% YoY
IndusInd Bank reported a net loss of 436.8 crores in the second quarter of the financial year 2025-26. Last year, the bank posted a net profit of Rs 1,331 crore in Q2 FY25. Rajiv Anand, the MD and CEO of IndusInd Bank, said in a statement that the loss in the quarter is a result of accelerated write-offs as well as increased provisions on microfinance as a prudent measure.
IndusInd Bank reported a 17.5 per cent YoY Net Interest Income decline in the quarter. The bank’s NII in Q2 FY26 came down to Rs 4,409 crore from Rs 5,347 crore in Q2 FY25.
Furthermore, IndusInd Bank’s margins also squeezed in the quarter. The private sector bank’s margin in Q2 FY26 stood at 3.32 per cent, compared to 4.08 per cent in the same quarter of last fiscal year.
The bank found itself in the midst of a crisis earlier this year as governance and accounting lapses surfaced, leading to the exit of its former CEO, Sumant Kathpalia and deputy Arun Khurana.
The bank’s asset quality remained largely stable despite the challenging environment. Gross non-performing assets (GNPA) ratio stood at 3.60 percent as of September 30, 2025, compared with 3.64 percent at the end of June 2025, while net NPA (NNPA) improved to 1.04 percent from 1.12 percent. Provision coverage ratio (PCR) rose to 71.81 percent from 70.13 percent in the previous quarter.
Total loan-related provisions stood at Rs 10,443 crore, representing 3.2 percent of the loan book.
Total deposits fell to Rs 3.90 lakh crore from Rs 4.12 lakh crore a year earlier, while advances declined to Rs 3.26 lakh crore from Rs 3.57 lakh crore. The share of low-cost current and savings account (CASA) deposits stood at 31 percent, with current account deposits at Rs 31,916 crore and savings deposits at Rs 87,854 crore.
The balance sheet size contracted to Rs 5.27 lakh crore from Rs 5.43 lakh crore a year ago.
Fee and other income fell 24.4 percent to Rs 1,651 crore from Rs 2,185 crore in the year-ago quarter. The pre-provision operating profit (PPOP) dropped 43 percent to Rs 2,047 crore from Rs 3,600 crore.
As of September 30, 2025, IndusInd Bank had 3,116 branches and banking outlets, along with 3,054 ATMs across India, serving approximately 42 million customers.
