Page 5 - Banking Finance November 2025

BANK UPDATE

third-party sureties for such claims. A
15-day deadline has been set for banks
to process claims post document sub-
mission. For lockers and safe custody
articles, the bank must set an inven-
tory date within 15 days and delays will
attract penalties - Rs. 5,000 per day or
Ò»©­ interest at bank rate plus 4% for de-
posits.
This move is expected to reduce delays,
disputes, and hardships faced by fami-
lies after the death of a depositor.

PNB eyes Rs. 1,500 crore
HDFC Bank arm barred from onboarding clients in
treasury income in Q3,
Dubai
The Dubai Financial Services Authority (DFSA) has prohibited HDFC Bank's sees NIM uptick
Dubai International Financial Centre (DIFC) branch from onboarding new Punjab National Bank (PNB) expects
clients due to irregularities in its client servicing and onboarding procedures. Rs. 1,500 crore in treasury income for
According to a stock exchange filing by HDFC Bank, the DFSA observed that the third quarter of FY26, following Rs.
the Dubai branch was offering services to clients who were not formally 1,800 crore generated in the first two
onboarded by the branch. quarters. This projection was made by
PNB MD and CEO Ashok Chandra dur-
However, the restriction does not affect existing clients or those who were
ing the release of the bank's second-
previously offered services without being officially onboarded. The directive
remains in force until further notice from DFSA. HDFC Bank, India's largest quarter financial results.
private lender, assured that there is no material impact on its financials due Chandra noted that deposit repricing
to the prohibition. has already begun and a net interest
The bank said it has already taken steps to comply with the regulatory or- margin (NIM) improvement is ex-
der and is actively engaging with DFSA to address all concerns. The incident pected-5 basis points in Q3 and 10 ba-
marks a significant compliance issue for HDFC Bank's overseas operations, sis points in Q4. The bank has guided
especially in a tightly regulated jurisdiction like DIFC, where transparency for an annual NIM of 2.8-2.9% for
and adherence to onboarding protocols are crucial for financial entities FY26.
operating under international laws. PNB reported a 14% year-on-year rise
in standalone net profit, reaching Rs.
RBI simplifies deposit The framework applies to deposits, 4,904 crore in Q2 FY26, compared to
lockers, and articles in safe custody, Rs. 4,303 crore in the same period last
claims for nominees and replacing earlier circulars and year. Total income rose to Rs. 36,214
heirs standardising the claim process across crore from Rs. 34,447 crore.

In a significant move to ease access to institutions. For deposits without a The bank's strategy hinges on improv-
funds after a bank customer's death, nominee or will, and where no court ing its margins while maintaining asset
the Reserve Bank of India (RBI) has case is pending, claims can be settled quality. By leveraging treasury gains
announced new norms allowing simpli- with basic documents like death certifi- and repricing liabilities, PNB aims to
fied claim settlement for deposits up cate, ID proof, indemnity bond, and a sustain growth despite rising competi-
to Rs. 15 lakh for commercial banks legal heir declaration or certificate. tive pressures in the public banking
and Rs. 5 lakh for cooperative banks. Banks are barred from demanding space.

BANKING FINANCE | NOVEMBER | 2025 | 5