25 October 2026 · Daily Current Affairs

Cover Story

Kotak profit up 29% as banks open a strong results season

25 October 2026 (results for the quarter ended 30 September 2026) | Kotak Mahindra Bank media release on the Q2 FY27 results, filed with BSE

Kotak Mahindra Bank reported a standalone net profit of Rs 4,212 crore for the quarter ended 30 September 2026, up 29% from Rs 3,253 crore a year earlier and up 2% sequentially. Consolidated net profit rose 26% to Rs 5,645 crore.

Net interest income grew 16% to Rs 8,459 crore. The net interest margin was 4.31%, against 4.54% a year ago, with the bank attributing the moderation to the impact of FCNR(B) deposits of about Rs 55,344 crore. Return on assets was 1.92%.

Deposits grew 23% to Rs 6,51,491 crore and advances 25% to Rs 5,77,295 crore; the CASA ratio was 38.2%. Gross NPA stood at 1.04% and net NPA at 0.24%, with a provision coverage ratio of 78%. Fresh slippages fell 24% to Rs 1,230 crore. Capital adequacy was 21.9% with CET1 at 21.4%.

The board also approved the appointment of Ashok Saha as MD and CEO for three years from 1 January 2027 (RBI approval of 30 September, covered in the 20 October edition), and the re-appointment of Ashu Suyash.

Exam takeaway: Margin compression here has a specific cause: low-cost-looking FCNR(B) deposits raise the cost side. Watch NIM, CASA and PCR together when reading a bank's results.

Quick revision: Kotak Q2 FY27: PAT Rs 4,212 crore (+29%); NIM 4.31%; GNPA 1.04%; deposits +23%.

RBI & Regulatory Updates

SEBI Chairman Pandey at ANMI convention: graded compliance for brokers, review of short selling, tokenised corporate bonds

24 October 2026 | Fortune India, 24 October 2026, reporting the Chairman's address at the 16th International Capital Market Convention of ANMI in Mumbai; the SEBI speech page lists the address but its text was not read

Speaking at the 16th International Capital Market Convention of the Association of National Exchanges Members of India (ANMI) in Mumbai, SEBI Chairman Tuhin Kanta Pandey said the regulator is weighing a graded compliance framework for stockbrokers, calibrated to their size and risk.

He said SEBI is reviewing the short-selling framework and securities lending and borrowing (SLB), and wants safeguards against the misuse of trading terminals. SEBI also plans to extend the automated give-up and take-up mechanism to custodial clients such as portfolio managers and alternative investment funds.

Other items he listed: lowering costs in tender offers, buybacks and offers for sale; a market-making framework for corporate bonds; tokenised corporate bonds under 'Demat 2.0', where a SEBI-RBI pilot was launched in September 2026; exploration of an AI regulatory sandbox; and responsible-AI guidelines that are being finalised.

Exam takeaway: Know the reform list as a package: compliance burden, short selling, terminal misuse, custody give-up/take-up, corporate bond market-making and tokenisation. SLB means securities lending and borrowing.

Quick revision: SEBI Chairman at ANMI (24 Oct): graded broker compliance, short-selling/SLB review, give-up/take-up for custodial clients, corporate bond market-making, Demat 2.0 tokenised bonds pilot.

Banking & Financial Industry News

Kotak Mahindra Bank Q2 FY27: standalone net profit up 29% to Rs 4,212 crore; deposits up 23%

25 October 2026 (results for the quarter ended 30 September 2026) | Kotak Mahindra Bank media release on the Q2 FY27 results, filed with BSE

Kotak Mahindra Bank reported a standalone net profit of Rs 4,212 crore for the quarter ended 30 September 2026, up 29% from Rs 3,253 crore a year earlier and up 2% sequentially. Consolidated net profit rose 26% to Rs 5,645 crore.

Net interest income grew 16% to Rs 8,459 crore. The net interest margin was 4.31%, against 4.54% a year ago, with the bank attributing the moderation to the impact of FCNR(B) deposits of about Rs 55,344 crore. Return on assets was 1.92%.

Deposits grew 23% to Rs 6,51,491 crore and advances 25% to Rs 5,77,295 crore; the CASA ratio was 38.2%. Gross NPA stood at 1.04% and net NPA at 0.24%, with a provision coverage ratio of 78%. Fresh slippages fell 24% to Rs 1,230 crore. Capital adequacy was 21.9% with CET1 at 21.4%.

The board also approved the appointment of Ashok Saha as MD and CEO for three years from 1 January 2027 (RBI approval of 30 September, covered in the 20 October edition), and the re-appointment of Ashu Suyash.

Exam takeaway: Margin compression here has a specific cause: low-cost-looking FCNR(B) deposits raise the cost side. Watch NIM, CASA and PCR together when reading a bank's results.

Quick revision: Kotak Q2 FY27: PAT Rs 4,212 crore (+29%); NIM 4.31%; GNPA 1.04%; deposits +23%.

Banking & Financial Industry News

IDFC FIRST Bank Q2 FY27: net profit up 196.5% to Rs 1,045 crore

25 October 2026 (quarter ended 30 September 2026) | IDFC FIRST Bank press release on the Q2 FY27 results

IDFC FIRST Bank reported a net profit of Rs 1,045 crore for the September 2026 quarter, up 196.5% year on year. First-half profit stood at Rs 2,120 crore with a return on assets of 0.99%; Q2 ROA was 0.93%.

Customer deposits grew 25.9% to Rs 3,48,583 crore and loans and advances 30.1% to Rs 3,46,913 crore. The average CASA ratio was 48.4%. Core operating profit excluding trading gains rose 38.5% to Rs 2,527 crore.

Asset quality improved: gross NPA was 1.32% and net NPA 0.40%, with credit cost at 1.01%. The bank carried FCNR(B) deposits of Rs 34,390 crore.

Exam takeaway: A 196.5% jump comes off a low base - compare absolute profit with larger banks. Credit cost is provisioning as a share of loans; lower is better.

Quick revision: IDFC First Q2: PAT Rs 1,045 crore (+196.5%); GNPA 1.32%; CASA 48.4%.

Banking & Financial Industry News

AU Small Finance Bank Q2 FY27: net profit up 53% to Rs 858 crore; NIM at 5.8%

25 October 2026 (quarter ended 30 September 2026) | AU Small Finance Bank press release on the Q2 FY27 results

AU Small Finance Bank reported a 53% rise in September-quarter net profit to Rs 858 crore. Core pre-provision operating profit grew 31% to Rs 1,480 crore, with return on assets at 1.7% and return on equity at 16.1%.

Net interest income rose 32% to Rs 2,820 crore, with the net interest margin at 5.8%, up 33 basis points, and cost of funds at 6.41%. Deposits grew 28.6% to Rs 1,70,460 crore with a CASA ratio of 29.5%; the gross loan portfolio grew 25.1% to Rs 1,53,769 crore.

Gross NPA improved 42 basis points to 1.99%, net NPA stood at 0.81% and the provision coverage ratio at 83%. First-half net profit rose 45% to Rs 1,654 crore.

Exam takeaway: Small finance banks run higher NIMs than universal banks because they lend to riskier segments; compare AU's 5.8% with Kotak's 4.31% in this edition.

Quick revision: AU SFB Q2: PAT Rs 858 crore (+53%); NIM 5.8%; GNPA 1.99%.

Economy & Financial Awareness

September 2026 retail inflation jumps to 5.54% on food prices; RBI Bulletin flags inflation risks

Released 24 October 2026 (September 2026 data) | MoSPI press release for September 2026 CPI; Economic Times/Fortune India reports on the RBI Bulletin October 2026 (the Bulletin PDF was not read)

MoSPI reported that retail inflation (CPI, base 2024=100) rose to 5.54% in September 2026 (provisional), from a final 4.83% in August. Rural inflation was 6.08% and urban 4.88%.

Food inflation (CFPI) climbed to 7.74% from 5.97% in August, with rural food inflation at 8.06% and urban at 7.18%.

The RBI Bulletin October 2026, in its State of the Economy article, flagged risks to the inflation outlook, per Economic Times and Fortune India reports; the Bulletin article itself was not read (the RBI document server blocked automated access).

Exam takeaway: The RBI's medium-term CPI target is 4% with a tolerance band of 2-6%. September's 5.54% is inside the band but well above the target, with food doing the lifting.

Quick revision: Sep 2026 CPI: 5.54% (Aug final 4.83%); CFPI 7.74%. Base 2024=100.

Economy & Financial Awareness

Forex reserves fall USD 5.011 billion to USD 721.016 billion in the week ended 16 October

23 October 2026 (week ended 16 October 2026) | RBI Weekly Statistical Supplement of 23 October 2026, as reported by The Economic Times and Business Standard

India's foreign exchange reserves fell by USD 5.011 billion to USD 721.016 billion in the week ended 16 October 2026, according to the RBI's Weekly Statistical Supplement released on 23 October, as reported by The Economic Times and Business Standard.

Movements in the headline reserves reflect changes in foreign currency assets, gold, SDRs and the reserve position in the IMF, including valuation effects of the US dollar against other currencies.

Exam takeaway: Reserves can fall without any intervention if the dollar strengthens and revalues non-dollar assets down. Know the four components for prelims.

Quick revision: Forex reserves: USD 721.016 billion, down USD 5.011 billion (week ended 16 Oct).

Economy & Financial Awareness

IMF raises India's FY27 growth forecast to 7%; more reforms needed for durable growth, says Krishna Srinivasan

Interview published 24 October 2026 | India Today and Business Today interviews with Krishna Srinivasan, Director of the IMF's Asia and Pacific Department, 24 October 2026

The IMF's October 2026 World Economic Outlook raised India's growth forecast for FY2026-27 to 7.0% from 6.4%, and also projects 7% for FY2027-28, Krishna Srinivasan, Director of the IMF's Asia and Pacific Department, said in interviews with India Today and Business Today.

He listed downside risks: the Middle East conflict and energy prices, tighter global financial conditions, uncertainty around AI investment, and adverse weather such as El Nino. Business Today quotes him as saying India needs more reforms to secure strong and durable growth.

Exam takeaway: Keep the growth agencies distinct: IMF WEO now puts India FY27 at 7.0%. WEO editions come in April and October each year.

Quick revision: IMF: India FY27 growth raised to 7% (from 6.4%); FY28 also 7%.

Government Schemes

11 crore Farmer IDs completed under the Digital Agriculture Mission, five months ahead of deadline

PIB release of 24 October 2026 (milestone reached by 23 October 2026) | PIB, Ministry of Agriculture and Farmers Welfare, PRID 2327905, 24 October 2026

PIB reports that 11 crore Farmer IDs under the Digital Agriculture Mission were completed by the night of 23 October 2026, five months ahead of the 31 March 2027 deadline. Union Agriculture Minister Shivraj Singh Chouhan announced the milestone.

The Farmer ID (Kisan Pehchaan Patra) is a unique digital identity for farmers, linked to land records, and is a core component of AgriStack under the Digital Agriculture Mission.

The Digital Agriculture Mission was approved by the Union Cabinet on 2 September 2024 with an outlay of Rs 2,817 crore, including a central share of Rs 1,940 crore.

Exam takeaway: Farmer ID sits inside AgriStack, the digital public infrastructure for agriculture under the Mission. Remember the outlay split: Rs 2,817 crore total, Rs 1,940 crore central share.

Quick revision: Digital Agriculture Mission: 11 crore Farmer IDs done (target 31 Mar 2027 met 5 months early); outlay Rs 2,817 crore.

Credit/NPA & Risk Management

CBI books IL&FS Energy Development Company in Rs 212.34 crore Canara Bank fraud case

FIR registered 21 October 2026; reported 23-24 October 2026 | PTI reports carried by ThePrint and The Times of India; the CBI FIR was not read

The CBI registered a case against IL&FS Energy Development Company Ltd (IEDCL), its former managing director and other officials for allegedly causing a loss of Rs 212.34 crore to Canara Bank, PTI reports.

The FIR was registered on 21 October 2026 on a complaint from Canara Bank's Bandra Circle office. The CBI searched premises in Mumbai, Delhi and Noida and seized documents; five directors of the company have been named.

Exam takeaway: Bank fraud cases follow the path: lender's complaint to the CBI, FIR, searches, then charge sheet. IL&FS Group's 2018 collapse is the background to many such cases.

Quick revision: CBI case: IL&FS Energy, Rs 212.34 crore Canara Bank fraud; FIR 21 Oct; searches Mumbai/Delhi/Noida.

National, International & Appointments

First Bhupen Hazarika National Award to singer Usha Mangeshkar; presentation on 29 November in New Delhi

Announced 23 October 2026 | PTI and PTI-derived reports in The Hindu, Indian Express and others, 23 October 2026

The Assam government instituted the 'Bharat Ratna Dr Bhupen Hazarika National Award' and named singer Usha Mangeshkar as its first recipient, Chief Minister Himanta Biswa Sarma announced on 23 October 2026.

The award carries a citation and a cash prize of Rs 10 lakh. It will be presented on 29 November in New Delhi by Prime Minister Narendra Modi, at the closing ceremony of the birth centenary celebrations of the legendary Assamese singer-composer Dr Bhupen Hazarika, who was awarded the Bharat Ratna posthumously in 2019.

Exam takeaway: Bhupen Hazarika received the Bharat Ratna posthumously in 2019. The award is a state-instituted national award named after him - note the distinction from Union government awards.

Quick revision: Hazarika National Award: first to Usha Mangeshkar; Rs 10 lakh; 29 Nov, New Delhi.

Knowledge Article

FCNR(B) deposits: what they are and why they mattered this quarter

RBI Commonman FAQs on Non-Resident deposit accounts (NRE, FCNR(B), NRO)

A Foreign Currency (Non-Resident) Account (Banks), or FCNR(B) account, is a term deposit that a non-resident Indian holds with an Indian bank in a permitted foreign currency, such as the US dollar. Because the deposit is made and repaid in the same foreign currency, the depositor carries no rupee exchange-rate risk; the bank bears the currency risk.

Both Kotak Mahindra Bank and IDFC FIRST Bank cited their FCNR(B) books in the September quarter: Kotak said the FCNR(B) portfolio of about Rs 55,344 crore weighed on its margin, and IDFC FIRST held FCNR(B) deposits of Rs 34,390 crore.

FCNR(B) deposits differ from NRE accounts, which are rupee accounts: in an NRE account the depositor bears the currency risk.

Practical Banking Case Study

Reading three Q2 scorecards: Kotak, IDFC First and AU

Worked example from the three banks' official Q2 FY27 press releases; comparisons computed here.

Kotak: PAT Rs 4,212 crore, NIM 4.31%, GNPA 1.04%, PCR 78%. IDFC FIRST: PAT Rs 1,045 crore, GNPA 1.32%, CASA 48.4%. AU SFB: PAT Rs 858 crore, NIM 5.8%, GNPA 1.99%, PCR 83%.

Exam takeaway: No single number ranks a bank. Read size, growth, margin, asset quality and provisioning together: a high NIM can compensate for higher GNPA when PCR is strong.

Today's Scheme

Digital Agriculture Mission: features, outlay and the Farmer ID milestone

PIB releases of 2 September 2024 (Cabinet approval) and 24 October 2026 (milestone)

The Digital Agriculture Mission was approved by the Union Cabinet on 2 September 2024 with an outlay of Rs 2,817 crore, including a central share of Rs 1,940 crore. It builds digital public infrastructure for agriculture, known as AgriStack.

The core element is the Farmer ID (Kisan Pehchaan Patra), a unique digital identity for farmers linked to land records. On 24 October 2026 PIB reported that 11 crore Farmer IDs had been completed by the night of 23 October, five months ahead of the 31 March 2027 deadline.

Union Agriculture Minister Shivraj Singh Chouhan announced the milestone. The Mission also covers crop surveys and a digital soil profile, aimed at better targeting of schemes and credit.

Exam takeaway: Distinguish the Digital Agriculture Mission (digital infrastructure, Farmer IDs, AgriStack) from PM-KISAN (income support of Rs 6,000 a year). The Farmer ID milestone was announced by Agriculture Minister Shivraj Singh Chouhan.