Issue: 975
ECONOMY & FINANCE
Indian govt studying recent developments on US tariffs, in talks
with stakeholders: Piyush Goyal: Union minister of commerce and
industry Piyush Goyal on Thursday said that the Indian government is studying
the recent developments on US tariffs on India. His remarks came in an address
to the Parliament over the recently announced 25 per cent tariffs by United
States President Donald Trump. Goyal stated that the Indian
government is studying the recent developments of US tariffs on India, adding
that the government is talking to stakeholders, including exporters and
industry, and taking their feedback on it. "The Government attaches the
utmost importance to protecting and promoting the welfare of our farmers,
workers, entrepreneurs, exporters, MSMEs and all sections of Industry. We will
take all necessary steps to secure and advance our national interest," he
said.
(Moneycontrol)
Fiscal deficit for June
quarter at 17.9% of full-year target, a quarter of annual capex spent: India’s fiscal deficit rose
faster in the June quarter, coming in at 17.9 percent of the full-year target
compared to 8.4 percent for the corresponding period a year ago, data released
on July 31 showed. A higher-than-expected RBI
dividend played a key role in containing the impact of increased capital
expenditure during the quarter, along with reduced tax collection. Capital
expenditure stood at Rs 2.75 lakh crore, amounting to 24.5 percent of the
full-year target, higher than the 16.3 percent spent during the first quarter
of FY25, according to data released by the Centre. Tax collection at 19 percent
was lower than previous year's figure of 21.3 percent.
(Moneycontrol)
Complete ban on Russian
crude purchase by India unlikely: Given its dependence on
affordable barrels besides the element of strategic autonomy and energy
security, India is unlikely to stop crude oil purchases from Russia despite US
President Donald’s announcement of penalties for buying Russian oil. Analysts,
refiners and government officials told businessline that affordable barrels
barrels from Russia help keep India’s inflation and import bill in check, and
offers the crude guzzler avenues to export competitive refined petroleum
products. “Besides, India has a long standing strategic relationship with
Russia, which cannot be dismantled in the short or medium term.
(Business Line)
India stays firm on Russia
ties, farm sector as Trump imposes fresh tariffs: A day after US President
Donald Trump announced a 25 per cent tariff and unspecified penalty on Indian
goods starting August 1, top government officials met to deliberate India’s
response. With broad consensus on avoiding retaliation, officials reiterated
New Delhi’s commitment to protecting its national security interests and agriculture
sector. While India does not intend to
retaliate immediately, officials asserted that the country would not succumb to
US pressure on issues involving defence ties with Russia or domestic dairy and
agricultural interests.
(Business Standard)
BANKING & FINANCE
RBI unlikely to re-introduce fixed-rate liquidity operations: Sources: India's central bank is unlikely to re-introduce the policy of lending money daily to banks at a fixed rate, despite increased clamour for it from market participants, three sources said on Thursday. The policy, called fixed rate liquidity operations, will help banks manage their needs better, several bankers proposed to the RBI in meetings held over the last few months. Banks had asked for the quantum of infusion to be fixed on a percentage of their deposit base. "The RBI is clearly not in favour of hand-holding banks and wants to keep any liquidity operation on a variable rate," one source said. In variable repo or reverse repo, through which RBI injects or absorbs cash, banks have to undergo a bidding process based on their funding needs.
(Economic Times)
PNB to focus on project
financing to revive business loan growth, CEO says: Punjab National Bank aims to boost business
loan growth by focusing on infrastructure, smart metering, and renewable energy
projects, according to CEO Ashok Chandra. Despite overall domestic loan growth
of 9.6%, business loans only grew by 6.9% in the first quarter. PNB reported a
net profit of 16.75 billion rupees, impacted by a one-time tax charge.
(Economic Times)
Bank credit growth to
industry slows to 5.5% in June: RBI data: RBI data indicates a slowdown in bank credit
growth to industry, reaching 5.5% in the fortnight ending June 26, compared to
7.7% the previous year. Non-food bank credit experienced a moderated growth of
10.2%. Certain sectors like MSMEs, engineering, construction, and textiles
showed accelerated growth, while agriculture and services saw a deceleration.
Personal loans also witnessed a slower growth rate.
(Economic Times)
ICICI Bank to charge
payment aggregators for UPI transactions from August 1: ICICI Bank, the country’s second-largest
private sector lender, will from August 1 start charging a fee from payment
aggregators (PAs) for handling Unified Payments Interface (UPI) transactions
that these PAs facilitate on merchants’ platforms. The bank has sent letters to
the PAs informing them of this decision. According to a source familiar with
the development, the bank will charge PAs that maintain an escrow account with
the bank 2 basis points (bps) per transaction, capped at ?6. For PAs that do
not have an escrow account with the bank, the charge will be 4 bps, capped at
?10 per transaction.
(Business Standard)
BUSINESS & INDUSTRY
MS Swaminathan Foundation, Social Alpha unveil ?1 crore Agritech
innovation challenge: MS Swaminathan Research Foundation will launch the
Agritech Grand Challenge in collaboration with Social Alpha, a venture
development platform addressing social, economic and environmental issues. The
initiative aims to identify and scale breakthrough innovations addressing
urgent challenges in agriculture and rural development and will award a grant
of ?1 crore, according to a press release.
(Business Line)
DPIIT signs MoU with HDFC
Capital Advisors Limited to boost innovation in affordable housing and PropTech
sectors:
The
Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of
Commerce and Industry, signed a Memorandum of Understanding (MoU) with HDFC
Capital Advisors Limited to foster innovation and support startups in the
affordable housing and PropTech sectors. This strategic collaboration reinforces
DPIIT’s commitment to building an inclusive, innovation-driven startup
ecosystem aligned with the goals of Atmanirbhar Bharat and Viksit Bharat@2047. A
key element of the partnership is the H@ART Programme (HDFC Affordable Real
Estate and Technology Programme), an initiative launched by HDFC Capital to
enhance efficiency and reduce costs across the residential real estate
development cycle. The programme aims to facilitate growth opportunities
through linkages with the affordable housing developer ecosystem, strategic
investments in emerging PropTech companies, and mentorship in collaboration
with accelerators, academic institutions, and investors.
(PiB)
Starlink gets satellite
internet permit, spectrum norms ready: Elon Musk-led Starlink has received a licence
to launch satellite service in India, and a framework for spectrum allocation
is also in place for a smooth rollout, Union Telecom Minister Jyotiraditya
Scindia said on Thursday. The announcement was made on the eve of the 30th
anniversary of the first cellular call made in the country in 1995. "Starlink
has been granted a Unified License to launch satellite internet services in
India. Frameworks for spectrum allocation and gateway establishment are ready,
ensuring smooth rollout," Scindia said. Along with Starlink, Bharti
Group-backed Eutelsat OneWeb and Jio SES are also awaiting spectrum allocation
to roll out their satcom services.
(Business Standard)
REGULATIONS & DEVELOPMENT
Cabinet approves total outlay of Rs.6520 crore including
additional outlay of Rs.1920 crore for ongoing Central Sector Scheme “Pradhan
Mantri Kisan Sampada Yojana” (PMKSY) during 15th Finance Commission Cycle
(2021-22 to 2025-26): The Union Cabinet chaired by the Prime Minister
Shri Narendra Modi today has approved a total outlay of Rs.6520 crore including
additional outlay of Rs.1920 crore for ongoing Central Sector Scheme
"Pradhan Mantri Kisan Sampada Yojana" (PMKSY) during 15th Finance
Commission Cycle (FCC) (2021-22 to 2025-26). Approval includes (i)
Rs.1000 crore to support setting up of 50 Multi Product Food Irradiation
Units under the component scheme-Integrated Cold Chain and Value Addition
Infrastructure (ICCVAI) and 100 Food
Testing Labs (FTLs) with NABL accreditation under the component scheme – Food
Safety and Quality Assurance Infrastructure (FSQAI) of Pradhan Mantri Kisan
Sampada Yojana (PMKSY), in alignment with the budget announcement and (ii)
Rs.920 crore, for sanctioning projects under various component schemes of PMKSY
during the 15th FCC.
(PiB)
Cabinet approves
Central Sector Scheme “Grant in aid to National Cooperative Development
Corporation (NCDC)” with an outlay of Rs.2000 crore: The Union Cabinet chaired by the Prime Minister
Shri Narendra Modi today has approved the Central Sector Scheme “Grant in aid
to National Cooperative Development Corporation (NCDC)” with an outlay of
Rs.2000 crore for a period of four years from 2025-26 to 2028- 29 (Rs.500 crore
each year from FY 2025-26). On the basis of grant in aid of Rs.2000 crore to
NCDC from FY 2025-26 to FY 2028-29, NCDC will be able to raise Rs.20,000 crore
from open market over a span of four years. These funds will be utilized by
NCDC for granting loans to Cooperatives for setting up new projects / expansion
of plants and loan for meeting the working capital requirements.
(PiB)
Sebi plans
revamp of large IPO norms; retail quota may drop to 25%: The Securities and Exchange Board of India (Sebi)
on Thursday proposed changes to the structure of large initial public offerings
(IPOs), including increasing the allocation limit for institutional buyers
and reducing the share reserved for retail investors. The proposals come amid
a surge in IPO activity in India. Sebi noted that while average IPO sizes have
been increasing, direct retail participation has remained flat over the past
three years. For large public issues, retail subscription levels have been
particularly muted, the regulator said.
(PiB)
TODAY’S CONCEPT
KEY CURRENCY
v A
key currency refers to a currency which is stable, does not fluctuate much, and
provides the foundation for exchange rates for international transactions.
v Because
of their global use, key currencies tend to set the value of other currencies.
Also, these currencies tend to have a stable valuation over time.
v A
key currency usually comes from a country that is financially strong, economically
stable and developed, and one that is involved in the global market.
v The
seven key currencies today are the U.S. dollar, the Euro, the British pound,
the Japanese yen, the Canadian dollar, the Swiss franc, and the Mexican peso, although
other contenders, such as the Chinese yuan, also exist.
KEY INDICES
RBI KEY RATES:
Repo
Rate: 5.50%
SDF:
5.25%
MSF
/Bank Rate: 5.75%
CRR:
4.00%
SLR:
18.00%
FOREX RATES (RBI
REF. RATE)
INR
/ 1 USD : 87.5544
INR
/ 1 GBP : 116.2366
INR
/ 1 EUR : 100.2486
INR
/100 JPY: 58. 8500
EQUITY INDEX
Sensex: 81185.58 (-296.28)
NIFTY: 24768.35 (-86.70)
Bnk
NIFTY: 55961.95 (-188.75)
TODAY’S IMPORTANCE
World Wide Web Day: 1 August, World Wide Web Day honours the invention of the internet and
the man behind it, Tim Berners-Lee.
Historical events: August 1st holds
significance in both Indian and world history. In India, it marks the
anniversary of the Non-Cooperation Movement launched by Mahatma Gandhi in 1920.
Globally, it saw the declaration of war between Germany and Russia in 1914, a
key event in the start of World War I. Other notable events include the launch
of the World Wide Web in 1989.
*******Have a Nice Day*******
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