Business

State Bank of India Chairman Challa Sreenivasulu Shetty on Saturday said the direct impact of the higher tariff scenario unfolding in the U.S. is likely to be limited not just on books of the bank, but also on India given the geographical spread and basket of exports from the country.

Textiles, gems and jewellery and aquamarine are among a few industries bound to be impacted given their exports are predominantly to the U.S. and consequently may require some hand holding. Though exposure to the industries is limited, if need be banks will get involved in “how do we protect [them] along with the government of India if the tariff issue is not resolved faster,” he told mediapersons after launching SBI General Insurance’s 30 specialised health insurance branches across Andhra Pradesh and Telangana at a function in Hyderabad.

On likely relief measures banks could provide, Mr. Setty said, “We are working with the regulator. It’s too early to talk… we are confident some resolution will happen on tariffs since India is not alone as several other countries are also facing tariff issues. The uncertainty surrounding tariffs should be addressed at the earliest.”

Will restructuring be one of the relief measures, the SBI head said “I think it’s too early. Let’s not go there. I’m sure there will be some solution for this tariff related.”

Mulling two IPOs

To a query on plans for an Initial Public Offering of the general insurance subsidiary, he said SBI General Insurance and asset management subsidiary SBI Mutual Fund are the two serious candidates in the Group being considered for listing. “But the timelines are not decided yet,” he added.

On further tweaks to bancassurance norms are required, he said lot of reforms have happened in recent times to the insurance distribution model involving the banks. It is a powerful channel, he said, adding the focus should be on ensuring right selling happens. “Nobody should be sold a product which is not suitable for them. Everyone of us is working towards that… [be it] insurers, banks, policymakers and regulators while ensuring insurance penetration grows.”

Though the number of policies customers cancel within the free look period is miniscule, SBI General Insurance analyses such cases to ensure that it is not account of mis-selling. Additionally, the cases are also looked into by the internal ombudsman, he said.

SBI General Insurance MD and CEO Naveen Chandra Jha said the insurer is piloting the concept of dedicated offices for health insurance branches from the two States and may extend it to Odisha, West Bengal, Bihar and Jharkhand next.

The BPCL’s greenfield refinery-cum-petrochemical complex (RcPC) at Ramayapatnam in Nellore district is likely to have Aramco, the Saudi Arabia-based energy and chemicals behemoth, as a partner with 20% stake. Talks for it are under way between the governments of India and Saudi Arabia, which, according to highly-placed State government sources, are working out the terms and conditions of an agreement. It is poised to be ready by the year-end.

The RcPC will be close to the Ramayapatnam seaport, which is in advanced stages of construction, for the sake of synergy and is being taken up in pursuance of the fledgeling trade between India and Saudi Arabia. It is one of the multiple projects in which Saudi Arabia is investing in India to the tune of about $100 billion.

Through the Government of India, the BPCL is said to be negotiating with Aramco for a long-term crude oil supply agreement for the RcPC at Ramayapatnam. The BPCL RcPC is intended to meet India’s burgeoning energy demand, and the State government has agreed to provide 6,000 acres.

Being a massive project with a refining capacity of nine Million Metric Tons Per Annum (MMTPA) and entailing a capital expenditure of nearly ₹1 lakh crore, the RcPC is expected to take at least four years for commissioning once the requisite approvals are given.

The BPCL had sanctioned ₹6,100 crore for pre-project activities, which include various initial studies, identification of land and its acquisition, preparation of detailed feasibility report, environmental impact assessment, basic design engineering package and front-end engineering design.

The State government had offered three sites for the project, namely Machilipatnam, Ramayapatnam and Mulapeta in Srikakulam district and the BPCL zeroed in on Ramayapatnam due to its relatively superior logistics and multimodal connectivity. Depending on the market dynamics, the oil PSU may expand the capacity of the Ramayapatnam RcPC to 12 MMTPA.

State-owned NBCC (India) Ltd. has reported a 26% increase in its consolidated net profit to ₹135.03 crore for the first quarter of the current fiscal on higher income.

Its net profit stood at ₹107.19 crore in the year-ago period.

The total income grew to ₹2,465.48 crore during the April-June period of 2025-26 fiscal from ₹2,196.20 crore in the corresponding period of the preceding year, according to a recent regulatory filing.

NBCC Ltd. is into project management consultancy (PMC) and real estate businesses.

During 2024-25, NBCC Ltd. posted a net profit of ₹557.42 crore and a total income of ₹12,272.99 crore.

ICICI Bank has significantly increased the minimum average balance requirement for its savings accounts across all branch categories, with the new rules effective from August 1, 2025.

For customers in metro and urban areas, the minimum average balance has been raised to ₹50,000, up from the earlier ₹10,000. In semi-urban branches, the new requirement is ₹25,000, compared to ₹5,000 previously. For rural branches, the minimum balance has increased to ₹10,000 from ₹2,500.

The steep hike is expected to impact a large number of account holders, especially those in rural and semi-urban areas. Customers who fail to maintain the required average balance may face penalty charges, which could add financial strain for low-income account holders.

This move could prompt consumers to reconsider their banking choices, potentially shifting to banks with lower minimum balance requirements or opting for basic savings accounts that do not mandate such thresholds. For others, it may require careful financial planning to avoid penalties.

According to the bank, customers who fail to maintain the required minimum monthly average balance (MAB) will be charged 6% of the shortfall or ₹500, whichever is lower. However, these charges will be waived if the customer meets the enrolled program criteria.

In the case of Family Banking, the family must collectively maintain 1.5 times the program’s eligibility criteria; otherwise, non-maintenance charges will apply individually to members who do not meet their own MAB requirement. Pensioners are exempt from these charges. Additionally, for ECS/NACH debit returns due to financial reasons, the bank will charge ₹500 per instance, with a cap of three charges per month for the same mandate.

For outward cheque returns (cheques deposited by the customer), a fee of ₹200 per instance will be charged if returned for financial reasons. Inward cheque returns (cheques issued by the customer) will incur a charge of ₹500 per instance for financial reasons and ₹50 for non-financial reasons, excluding signature verification. Additionally, if a transaction at another bank’s ATM or at a point of sale (POS) terminal is declined due to insufficient balance, a fee of ₹25 per instance will be charged.