Mutual funds take a shine to bank stocks
ROBUST PERFORMANCE. Nifty Bank Index has appreciated 24 per cent over a one-year period
Suresh P Iyengar & K Ram Kumar | Mumbai
The banking sector’s robust health, signified by credit growth, improving asset quality, stable profitability, and stake buys by foreign banks and institutions in private sector banks, has prompted mutual funds (MFs) to increase their weightage in the sector. This has led to a significant rise in their stakes in various banks over the last year.
According to data from primeinfobase.com, MFs increased their shareholding by more than 1 per cent between December 2024 and December 2025 in several banks, including AU Small Finance Bank (SFB), Axis Bank, Bandhan Bank, Bank of Maharashtra, Federal Bank, HDFC Bank, and ICICI Bank.
“Overall, the banking system is doing very well with non-performing assets at multi-decade lows and improving credit growth," said VK Vijayakumar, Chief Investment Strategist at Geojit Investments. He noted that the RBI’s Financial Stability Report highlights a revival in credit demand, with sectors like MSMEs, retail, and segments of the corporate sector borrowing more. This credit growth and better asset quality are expected to result in impressive profit numbers.
Bank Stocks Sizzle
The sector's strong fundamentals are reflected in the Nifty Bank Index, which appreciated 24 per cent over a one-year period. Mangesh Kulkarni, Head-Portfolio Management Services at Almondz Financial Services, stated that bank stock valuations remain very attractive despite sustained financial performance. He further noted that funds are re-directing investments from IT stocks to bank stocks.
Significant increases in MF stakes were seen in Equitas SFB (up 7.7 percentage points to 45.2 per cent) and Ujjivan SFB (up 19.99 percentage points to 23.82 per cent), following AU SFB's in-principle approval from the RBI in August 2025 to convert into a universal bank. MFs' stake in AU SFB itself rose by 5.5 percentage points to 22.61 per cent.
RBL Bank saw a substantial 22 percentage point jump in MF stake (reaching 34.44 per cent) following Emirates NBD Bank’s decision to acquire a controlling stake via a $3 billion infusion. MFs also increased stakes in IDFC First Bank (up 6.37 pp to 10.93 per cent) and Federal Bank (up 2.25 pp to 37.78 per cent). These increases coincide with significant investments from global firms like Warburg Pincus, ADIA, and Blackstone in these specific banks.
Among public sector banks, MFs showed a preference for the Bank of Maharashtra, increasing their stake by 4.47 pp to 5.32 per cent. SBI was the only other PSU bank where MFs increased their shareholding by more than 1 per cent (up 1.41 pp to 13.64 per cent).
MF Shareholding in Banks
| Bank | MF stake as of Dec-end 2025 (%) | Percentage points change over Dec-end 2024 |
|---|---|---|
| AU Small Finance Bank | 22.61 | 5.50 |
| Axis Bank | 32.39 | 4.80 |
| Bandhan Bank | 11.79 | 3.55 |
| Bank of Maharashtra | 5.32 | 4.47 |
| Equitas SFB | 45.20 | 7.70 |
| Federal Bank | 37.78 | 3.25 |
| HDFC Bank | 23.09 | 2.38 |
| ICICI Bank | 26.09 | 2.08 |
| IDFC FIRST Bank | 10.93 | 6.37 |
| Kotak Mahindra Bank | 21.18 | 3.74 |
| RBL Bank | 34.44 | 22.00 |
| South Indian Bank | 11.90 | 8.11 |
| State Bank of India | 13.64 | 1.41 |
| Ujjivan SFB | 23.82 | 19.99 |
| YES Bank | 3.58 | 2.84 |
Source: primeinfobase.com
USTR report acknowledges gaps in India-US trade deal negotiations
TARIFF TUSSLE. It has sought ambitious targets, even though the Supreme Court ruled against Trump tariffs
Amiti Sen | New Delhi
Gaps remain on “sensitive issues” in the US-India bilateral trade deal talks, even as both nations continue to work towards an agreement intended to “open the Indian market for American products” and reduce India’s 2025 trade surplus of $58.2 billion. These findings were part of the US President’s 2026 Trade Policy Agenda and 2025 annual report.
Tariff Cuts
The report, released by the United States Trade Representative (USTR) on Monday, reiterated aggressive targets for the trade deal despite a recent adverse US Supreme Court judgement regarding the Donald Trump regime’s reciprocal tariffs.
“Under the interim agreement, India will eliminate or reduce tariffs on all US industrial goods and a wide array of US food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products,” the report noted, reflecting a joint statement issued by the two countries on February 6.
USTR Jamieson Greer stated that the administration aims to capitalise on the past year's successes to advance American prosperity. Greer noted that President Trump is “flipping the script” on decades of non-reciprocal trade practices and that American producers are already benefiting from an “America First” approach. However, some experts suggest that because talks have not concluded and no text has been signed, New Delhi is under no obligation to adhere to the original negotiated terms.
SC Verdict
The balance of negotiations has seemingly tilted in favour of India following the US Supreme Court judgement. This ruling led to the replacement of a 25 per cent reciprocal tariff on India (which was to be 18 per cent under the interim pact) with short-term global tariffs of 10 per cent, the same rate applied to other countries.
Despite this changed landscape, the USTR report maintains ambitious obligations for India:
- Addressing long-standing barriers to trade in US medical devices.
- Eliminating restrictive import licensing procedures that delay market access or impose quantitative restrictions on US ICT goods.
- Addressing non-tariff barriers (NTBs) affecting US food and agricultural products.
The two nations also plan to strengthen economic security alignment to enhance supply chain resilience. Since the reciprocal tariff programme was announced in April 2025, the US has signed Agreements on Reciprocal Tariffs (ARTs) with several nations, including Argentina and Indonesia, while framework deals have been announced with India, the EU, and Japan.
India Seeks Clarity
In response to the US Supreme Court judgement invalidating reciprocal tariffs, India postponed sending its negotiating team to Washington, citing a need to study the implications. Despite the legal shift, President Trump asserted on February 20 that “the India deal is on” and that “nothing changed” regarding the pact.
Iran war: India has 50 days of crude, fuel stocks, says govt
ON WATCH. Control room set up to monitor Strait of Hormuz situation round-the-clock VITAL CORRIDOR. Nearly 40-50% of India’s crude imports pass through the Strait of Hormuz, a key global energy choke point Our Bureau | New Delhi
The government is actively reviewing the conflict scenario in West Asia, top government officials said on Tuesday, adding that India has crude oil stocks for 25 days and an equal volume of refined petroleum products stocks, which is sufficient to address supply disruptions for 50 days. India consumes around 5.6 million barrels of petroleum products, with approximately 67 million consumers visiting retail outlets daily.
Generally, 40 per cent of India’s crude oil imports (around 2.6-2.7 mb/d) pass through the Strait of Hormuz. However, in recent years, as domestic refiners increased procurement from West Asia—including Iraq, Saudi Arabia, and the UAE—the volumes passing through this strategic energy choke-point have increased to around 50 per cent.
Oil Minister Hardeep Singh Puri stated that India is “well stocked with crude oil and inventories of key petroleum products, including petrol, diesel and ATF” to handle short-term disruptions.
24X7 Monitoring
The Petroleum Ministry has established a 24/7 control room to continuously monitor the situation, receiving input from refiners, shippers, and other stakeholders. There are expectations that the situation may “cool somewhat” in the next two weeks.
“We have overall around 50 days of stock for oil, which is sufficient. Besides, there is crude in the strategic petroleum reserves (SPRs), which is additional. We can also source from other regions, such as the US, South America and West Africa, which is also happening as we speak. Refiners are outsourcing replacements as and when needed,” an official noted.
On February 9, in the Rajya Sabha, Minister Puri noted that India holds roughly 4.094 million tonnes (mt) of crude stocks in SPRs, representing 77 per cent of the total 5.33 mt capacity. At full capacity, these reserves would last for nine-and-a-half days.
No Price Hike
Government sources indicated there are no immediate plans to raise retail prices for petrol and diesel. However, the general consensus is that if the conflict extends beyond 10-15 days, crude oil prices will likely surpass $82 per barrel.
India-based airlines begin repatriation of stranded nationals from West Asia
BACK IN HOMELAND. Domestic carriers are operating dedicated services from the United Arab Emirates, Saudi Arabia and Oman
Rohit Vaid | New Delhi
India-based airlines on Tuesday commenced special operations to repatriate stranded Indian nationals from West Asia following recent airspace disruptions that led to widespread cancellations and air fare volatility. These repatriation efforts come even as Indian airlines cancelled scores of flights to the region, with a total of 357 flights cancelled on Monday alone.
Air India and Air India Express
Air India welcomed back 149 passengers from Dubai on flight AI916D, which landed in Delhi at 10:58 hrs IST on Tuesday. Earlier that day, 143 cockpit and cabin crew members of Air India and Air India Express, who had been stranded in Dubai, arrived in Delhi on flight AI918D.
To facilitate the return of more passengers, Air India is deploying wide-body aircraft, including Boeing 777 and 787 planes, on its services to Jeddah and Dubai. While the airline has extended the suspension of its regular West Asia services until midnight on March 3, it has activated alternative corridors—routing through the Red Sea, Egypt, and the Mediterranean—to sustain connectivity to the UK, Europe, Canada, and the US.
Air India Express has resumed services to Muscat, operating six flights from cities including Delhi, Kochi, and Mumbai, though its operations to Bahrain, Kuwait, Qatar, Saudi Arabia, and the UAE remain suspended until midnight on March 3.
SpiceJet and IndiGo
SpiceJet operated four special flights on March 3 from Fujairah to Delhi, Mumbai, and Kochi. Ajay Singh, Chairman and Managing Director of SpiceJet, stated that the airline’s priority is to support citizens facing uncertainty and it stands ready to operate more services subject to regulatory approvals. Scheduled flights between Fujairah and Delhi/Mumbai are expected to restore from Wednesday.
IndiGo was scheduled to operate 10 special relief flights from Jeddah to India on March 3. The airline plans to progressively reinstate select scheduled services from Wednesday, including 13 return flights to destinations such as Muscat, Jeddah, Madinah, and Athens.
Rising Fares and Logistical Constraints
The crisis has led to a significant rise in international airfares. Industry insiders noted that ticket prices have increased 10-15 per cent for Europe-bound flights and by 30-35 per cent on certain continental US routes, driven by supply constraints and the need for longer alternative routings to bypass constrained zones.
US’ Asian allies fear war will sap defences against China
Reuters | Tokyo
Japanese lawmakers gathered on Monday at the ruling party’s offices in Tokyo to question bureaucrats about evacuation plans, energy stocks, and the legal basis for US action. However, one query posed at the closed-door meeting reflected a deeper fear haunting Asia’s corridors of power since US President Donald Trump’s weekend attacks unleashed chaos in West Asia: how the region would respond to a hole left in its defences if Washington diverted ships from bases used to counter China’s military flexing, nuclear-armed North Korea, and to protect democratic Taiwan.
Indo-Pacific Stability
Chen Pu-hsun, a lawmaker in Taiwan’s ruling Democratic Progressive Party who sits on the Parliament’s Foreign Affairs and Defence Committee, stated that a prolonged conflict could harm “stability and peace in the Indo-Pacific”. Chen added that Taipei must prepare for Beijing to step up coercion while the US is distracted.
While President Trump has indicated that US operations in the Middle East may last four or five weeks, he also noted they could be sustained far longer. He plans to meet Chinese President Xi Jinping at the end of March, though Beijing has not yet confirmed the visit.
Strategic Diversion
Regarding the regional tensions, China’s foreign ministry reiterated on Tuesday that Taiwan is an internal matter and Beijing will not tolerate foreign interference. Neither the US State Department nor the Defence Department responded to requests for comment.
According to a report released last month by the Center for Strategic and International Studies (CSIS), approximately 40 per cent of US navy ships are currently stationed around the Middle East.
Indian shipowners seek Centre’s help for safe passage via Strait of Hormuz
Aneesh Phadnis | Mumbai
Indian shipowners have sought the Central government’s intervention to ensure the safe passage of oil tankers through the Strait of Hormuz.
In a letter to Union Shipping Minister Sarbananda Sonowal, the Indian National ShipOwners’ Association (INSA) stated that there are currently 27 Indian-flagged vessels in the region. While the majority are located in the Persian Gulf, some are positioned in the Gulf of Aden.
“...are waiting to load additional cargo and given the limited strategic reserves that India holds, we are certain that it is extremely important that our ships are able to gain free and safe passage through the Straits,” wrote INSA CEO Anil Devli in the letter sent on Monday.
The association requested the government to convey this request to the authorities in both Iran and Israel. INSA noted that such intervention would ensure the safety of Indian ships and the Indian citizens on board, while also securing a safe supply chain for crude oil and LPG imports.
AI won’t take India’s tech jobs away
With its talent, scale and adaptability, India is well-positioned not merely to survive the AI revolution, but to lead it.
NEW OPPORTUNITIES. With GCCs scaling up and IT firms having strong hiring plans, AI will only redefine the kind of jobs that will be in demand.
AJAI CHOWDHRY
The recent AI Impact summit had some takeaways: The world’s fourth-largest economy — a rising power powered by talent, entrepreneurship and demographic strength, is not going to be an AI spectator. There is a decisive shift to building AI-embraced infrastructure for highways, energy, telecom, and so on. Union IT Minister Ashwini Vaishnav says India expects to attract $200 billion of AI investments over the next two years.
Investments and the Consumer Market
Why are global AI/tech companies pouring in investments into India? It’s India’s consumer market they are after. Already 100 million ChatGPT users are there, mostly consumers.
For decades, India’s $300 billion tech services sector, employing nearly six million people, was known primarily for cost arbitrage. The anxiety around AI shrinking tech jobs is overblown. Yann LeCun, godfather of AI and Meta’s former chief AI scientist, has consistently argued that fears of AI causing mass permanent job losses are misplaced and absurd. LeCun views AI as an amplifier of human intelligence rather than a replacement.
Historical Resilience
The Indian IT industry has endured many disruptions: the dotcom crash of 2000-02 that saw massive project cancellations, pricing pressure and delayed payments; the Global Financial Crisis (2008-09), a recession where clients froze IT spending, renegotiated contracts and currency volatility was the norm; visa and immigration restrictions; and the Covid pandemic — leading to project delays and client uncertainty.
Historically, IT services have faced economic downturns, tech disruptions, political and regulatory pressures, talent and margin pressures. Yet the industry has shown strong resilience by shifting from cost arbitrage to value creation, manpower-based model to now digital and AI led services and IP + AI based revenue.
History suggests technology has enabled new kinds of jobs. The last few decades’ rise of Indian IT services companies was because of multiple new technologies, including the internet, cloud, and mobile. These actually created more jobs even as they led to productivity improvements across industries. When outsourcing reduced enterprise software costs, IT budgets did not contract — they expanded. As prices fell, volumes surged. Why should this time be different?.
Automation vs. Human Insight
ChatGPT’s high-voltage debut in 2023 intensified the debate around AI and job loss. Automation has compressed low-value work — repetitive coding, application maintenance, documentation and some BPO tasks that once required large teams.
AI can generate code in seconds, create testing scripts and draft documentation automatically. Boards are asking whether companies can run leaner. Yet, for enterprise-level adoption, and to ensure stable, secure operations, human insight is vital in software testing and coding, and this will ensure that jobs remain intact or even grow, even as there is some displacement in low-end roles.
Next Level of Productivity
We are entering a different orbit of productivity. AI writes the first draft of code; engineers focus on refining, contextualising and solving complex domain problems. Value shifts from billable hours to faster, higher-quality outcomes. India’s IT services firms operate across four major business areas: implementation of large enterprise packages, customised software development, R&D exports, and infrastructure management. R&D services, advanced engineering and complex transformation projects are hard to replace; they may expand. Code generation is only one slice of the enterprise technology lifecycle.
The real complexity lies in integrating new systems into legacy environments, securing them, deploying them at scale and maintaining them over time. Also, the AI tools for enterprise are different; IT services companies focus on solutions for enterprises and not consumer. Estimates suggest AI could represent a $300-400 billion opportunity for IT services companies by 2030 — spanning AI strategy consulting, data preparation, process redesign, legacy modernisation and governance frameworks to ensure AI systems are secure and trustworthy.
Growth of GCCs
If AI were truly hollowing out India’s tech industry, we would see a slowdown in Global Capability Centres (GCCs) setting up here. The opposite is happening. According to IT industry body Nasscom, by the end of 2025, there were more than 1,750 GCCs in India employing around two million, and their numbers are growing.
Over the past few years, multinational corporations have set up their own GCCs in India — in-sourcing work rather than outsourcing it. Instead of handing projects entirely to service providers, they are building captive technology and R&D centres. IT services firms have adapted by creating GCC partnership models, supporting these centres with specialised expertise, overflow capacity and advanced engineering skills.
Conclusion
Companies such as TCS, Infosys, and Wipro plan to hire 10,000-40,000 graduates this year. Demand is shifting, not vanishing. The real change is in skills. There is no substitute for strong computing fundamentals. Engineers must understand core programming before relying on AI tools.
The real question is not whether AI will take away jobs. It is whether India will move up the value chain fast enough. With its talent, scale and adaptability, India is well-positioned not merely to survive the AI revolution, but to lead it.
The writer is Chairman, EPIC Foundation and MGB (Mission Governing Board), National Quantum Mission. Views are personal.
Iran war may slow pace of coffee exports
Vishwanath Kulkarni | Bengaluru
Even as coffee exports gather pace with the completion of the harvest, exporters are increasingly concerned about the escalating conflict in West Asia, fearing an impact on shipments. The uncertainty has already begun to disrupt logistics, with some shipping lines suspending cargo bookings to parts of the region.
The apprehension of exporters is significant, given that West Asia and North Africa together account for nearly 20 per cent of India’s coffee exports. “We are concerned over the West Asia problem as some shipping lines have said they will not accept any cargo to the region, while others are not clear. West Asia is a big market for Indian coffee,” said Ramesh Rajah, President, Coffee Exporters Association.
Key Markets
During calendar year (CY) 2025, UAE was the fourth largest buyer of Indian coffees after Italy, the Russian Federation and Germany. Other key buyers in the West Asian and North African region include Turkey, Jordan, Kuwait, Egypt and Libya. These countries collectively accounted for approximately 20 per cent of the total 3.84 lakh tonnes (lt) exported in 2025.
As per Coffee Board data, for CY25, specific import tonnages included:
- UAE: 21,172 tonnes
- Turkey: 17,073 tonnes
- Libya: 14,133 tonnes
- Jordan: 11,178 tonnes
- Egypt: 7,650 tonnes
- Kuwait: 5,957 tonnes
Freight Rates and Logistics
Beyond direct shipping disruptions, the trade fears an increase in freight rates due to rising oil prices. “Oil prices have already jumped 10 per cent and that’s going to have an obvious impact on freight rates, which could be a bigger variable,” said Praveen Kumar Kolimarla of Agrani Coffee and Commodities. Currently, most Indian coffee cargo is being routed around Africa to reach the main market in Europe.
Export Performance
Coffee exports saw a significant 40 per cent jump during January-February this year, reaching 80,931 tonnes compared to 57,966 tonnes in the same period last year. In dollar value terms, shipments rose 38 per cent to $405 million in these first two months. “We have seen a big pickup in shipments in the first two months and the demand is from Europe and West Asia,” Praveen noted.
India-grown coffees specifically saw a 46 per cent increase in the January-February period, reaching 62,923 tonnes. For CY25, total Indian coffee exports crossed a record $2 billion mark, up 22 per cent year-on-year, driven by high prices and strong demand from Russia.
Tata Motors, Mahindra & Mahindra clarify on Indonesia orders; say there is no material impact
NOT AFFECTED. Tata Motors and M&M clarified that they had not received any official notice on suspension of orders
Amit Vijay Mohile | Mumbai
Tata Motors and Mahindra & Mahindra in back-to-back regulatory filings have countered media reports that Indonesia had suspended vehicle imports from them. The clarifications followed exchange queries and share price volatility triggered by a March 2 report.
Both companies confirmed that they had not received any official notice of suspension, and there had been no significant impact on their businesses. Together, they are set to supply 1,05,000 vehicles to Agrcinas Pangan Nusantara as part of Indonesia’s Koperasi Desa/Kelurahan Merah Putih project, which is a State-backed initiative focused on rural mobility.
Contract Secured
Tata Motors referenced its disclosure from February 10, in which its subsidiary, PT Tata Motors Distribusi Indonesia, secured a contract for 70,000 vehicles. The company dismissed the media reports, stating, “The articles in Indonesia (reproduced in India) reflect a domestic policy discussion on imports and local manufacturing, rather than any demand or execution risk related to the order we received”.
They stressed that “the order and the advance payment we have received are programme-driven,” with plans to start supplies soon and deliver in phases. “The published article has no material impact on the company”.
Mahindra & Mahindra highlighted its announcement from February 4 of a record 35,000 units export order for Scorpio Pik Up light commercial vehicles. The company confirmed that it had received an advance payment and added, “To date, we have not received any further communication from Indonesia regarding the suspension of the order”.
Expert Claim
Despite both OEMs asserting that “all is well,” a senior industry analyst who spoke to businessline said that the situation highlights the risks for Indian OEMs pursuing scale in politically sensitive markets. Large deals tied to government programmes often clash with host countries’ push for localisation and domestic production.
“Competitors like China’s BYD have already established a foothold through factories; Indian companies must consider similar investments,” the analyst stated, emphasising that while export success brings contracts, a sustainable presence requires adaptation. “For Tata and Mahindra, achieving success may rely on shifting from pure imports to joint ventures, phased local assembly or technology transfers to align with host-country priorities”.
Bounce bags $5 m to expand electric fleet for gig workers
Our Bureau | Bengaluru
Bengaluru-based electric mobility start-up Bounce has raised $5 million in an internal funding round to expand its electric scooter fleet for gig workers across India. The company stated that the funds will support fleet expansion, entry into new cities, and infrastructure for delivery workers.
Bounce manufactures electric scooters and rents them to gig workers serving quick commerce and food delivery platforms. The company currently operates thousands of scooters in multiple cities.
“Bounce is often seen as an EV manufacturer. But that is only part of the story,” said Vivekananda Hallekere, CEO and Co-founder. He explained that the company is building the infrastructure that supports India’s online commerce, as every quick commerce order, food delivery, and last-mile package depends on a gig worker who needs electric mobility. Hallekere added, “We build the vehicles and we run the fleet. That combination of manufacturing and years of fleet operations experience is what sets us apart and is very hard to replicate”.
The company follows a vertically integrated model. Bounce is backed by several prominent investors, including Accel, B cap, Qualcomm, and Peak XV.
(With inputs from intern Tejaswini S)
Telangana meets record 18,139 MW peak demand
Our Bureau | Hyderabad
Telangana State power utilities successfully met a record peak electricity demand of 18,139 MW on Tuesday morning, marking the highest peak demand ever recorded in the State. According to Deputy Chief Minister Bhatti Vikramarka Mallu, this milestone reflects Telangana’s economic growth, operational efficiency, and excellent coordination.
Despite being geographically smaller, Telangana has reached a level where its peak load matches or even surpasses those of much larger States. For instance, Telangana's peak demand is now comparable to States like Madhya Pradesh (approximately 19,900 MW) and Rajasthan (between 19,600–20,600 MW). Furthermore, the State recorded a higher peak demand than industrialised States such as Punjab, Haryana, Jharkhand, and Chhattisgarh.
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