India's banking sector closed FY26 with credit growth of 16.1% and deposit growth of 13.5%, signaling broad-based expansion even as a credit-deposit gap continues to pressure liquidity management. Analyst Siddhartha Khemka has flagged AU Small Finance Bank and ICICI Bank as top picks, citing their strategies and growth positioning relative to sector peers. Banks accelerated deposit mobilization through the year, but the gap between loan book expansion and funding inflows remains a structural constraint that managements must navigate heading into FY27. The regulatory environment has provided a stabilizing backdrop, allowing well-capitalized institutions to sustain momentum. Investors should watch how narrowing or widening of the credit-deposit spread affects net interest margins in the coming quarters, with AU Small Finance Bank's retail-focused model and ICICI Bank's diversified franchise seen as better equipped to absorb funding cost pressures than smaller or more wholesale-dependent lenders.
Indian startups raised $5.2 billion across 501 deals in H1 2026, down 9% in value but up 7% in deal count year-on-year, per the Inc42 Indian Tech Startup Funding Report. The drop is driven by fewer mega-rounds, while AI funding surged 317% and growth-stage deal activity hit a multi-year high.
The BSE Sensex fell 893 points and the Nifty 50 shed 279 points on June 30, 2026, wiping out roughly Rs 6 lakh crore in investor wealth in a single session. Both indices dropped 1.16%, closing at 76,200.68 and 23,824.10 respectively.
Kotak Mahindra Bank shares fell nearly 3% to Rs 397.6 after CEO Ashok Vaswani announced plans to exit the bank. Investor concern now centres on succession timing and whether the bank's ongoing digital and deposit-growth strategy will stay on track.
South Korea's Kospi dropped 3% at Monday's open while Japan's Nikkei fell 1%, as escalating US-Iran conflict triggered a broad risk-off move across Asian markets. South Korea's heavy reliance on Middle East oil imports makes it especially vulnerable to geopolitical shocks of this kind.
