meta_id 3403377

On August 13, 2026, the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) issued an order requiring the State Bank of India (Indische Staatsbank) branch in Frankfurt am Main to ensure its business organisation complies with regulatory requirements. The order follows a special audit conducted under the Minimum Requirements for Risk Management (Mindestanforderungen an das Risikomanagement, MaRisk) framework during the third quarter of 2025. The audit identified deficiencies in the branch's business organisation, specifically in the areas of risk-bearing capacity and credit processes. These deficiencies constituted violations of the Banking Act (Kreditwesengesetz, KWG). Proper business organisation is designed to ensure that credit institutions comply with statutory provisions and implement operationally necessary measures. Section 25a, paragraph 1 of the KWG establishes the legal framework for this requirement, with BaFin's MaRisk guidelines providing detailed specifications for how institutions must structure their risk management. When BaFin identifies deficiencies in an institution's business organisation, it may take enforcement action under Section 25a, paragraph 2, sentence 2 of the KWG to require remediation. The State Bank of India Frankfurt branch must eliminate the identified deficiencies in risk-bearing capacity and credit processes. The order became final and binding on July 14, 2026. BaFin published this enforcement measure in accordance with Section 60b, paragraph 1 of the KWG.