Issue: 1312
·
India's passenger vehicle retail sales to cross 50 lakh units
in 2026.
·
Centre raises windfall tax on petrol exports to Rs 1.5/litre,
cuts ATF duty to Rs 19/litre.
·
Ujjivan SFB approves MD Sanjeev Nautiyal's request of early
retirement on health grounds.
·
Commercial LPG cylinder prices rise by Rs 9.50, ATF up by Rs
6.28/litre from September 1.
·
Sugar shares plunge nearly 6% as Govt halves sugar stock
limit ahead of festive season.
·
Banks seek CRR cut on green deposits to boost green lending
in India.
·
RBI approves Carol Furtado as interim CEO at Ujjivan Small
Finance Bank after Sanjeev Nautiyal's exit.
India manufacturing PMI
falls to five-year low of 52.8 in August: With weak growth in output and new orders, the
manufacturing sector in India continued to show weakness in August, as the
Purchasing Managers’ Index (PMI) slipped to a five-year low of 52.8 in the said
month, S&P Global reported on Tuesday. It was 53.5 in July. This is the
third successive month of decline. PMI is based on responses from purchasing
executives of 400 companies. An index above 50 means expansion and below 50
means contraction.
(Business Line)
Modi pitches greater SCO
economic connectivity with sovereignty caveat: Prime Minister Narendra Modi
has backed greater economic connectivity among members of the Shanghai
Cooperation Organisation (SCO), but stressed that efforts to link markets and
facilitate trade must respect the sovereignty and territorial integrity of all
countries, a principle that underpins New Delhi’s opposition to China’s Belt
and Road Initiative (BRI). Against the backdrop of the continuing conflict in
West Asia, Modi warned the ten-member SCO – which includes India, China,
Pakistan, Russia, Iran, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and
Uzbekistan – that conflicts could no longer be viewed as isolated regional
events, as they impacted global economy, energy security, maritime trade.
(Business Line)
RBI intervention takes
rupee to two-month high: The Indian rupee extended its
gains for a fourth consecutive session, supported by the intervention by the
Reserve Bank of India and dollar inflows, according to currency traders. The
currency rose 22 paise to 94.95 against the dollar on Tuesday, the highest
level in two months.The rupee rose above the 95 level in nearly two months.
Following this, the Indian rupee was the best-performing Asian currency on
Tuesday. Over the past week, the rupee gained 0.8%. In the calendar year so
far, the rupee declined 5.65%. “The RBI sold dollars early in the session
around the 95.15 level, pushing the rupee down to its opening near 95.00, after
which some dollar inflows supported the currency,” said Anil Kumar Bhansali,
head of treasury, Finrex Treasury Advisors LLP.
(Financial Express)
Robust inflows into FCNR
(B) deposits: Banking system liquidity surplus at Rs.6.65 lakh cr: Thanks to the robust inflows
into FCNR (B) deposits during the June 8, 2026 to August 31, 2026 period under
the RBI’s concessional swap facility, the banking system is currently awash
with liquidity, with the surplus at last count (August 31, 2026) at a whopping Rs.6.65
lakh crore. To absorb this surplus, the
RBI on Tuesday conducted two Variable Rate Reverse Repo (VRRR) auctions for Rs.6
lakh crore and Rs.4 lakh crore. The first VRRR auction of seven days duration
to drain out Rs.6 lakh crore saw a relatively muted response, with banks
parking Rs.1,14,320 crore at weighted average rate (WAR) of 5.24 per cent.
However, the second VRRR auction (overnight) to suck out Rs.4 lakh crore saw a
better response, with banks parking Rs.2,59,846 crore at a WAR. of 5.24 per
cent.
(Business Line)
$100 bn and counting: FCNR
(B) inflows cross the century-mark: Capital inflows under the
Foreign Currency Non-Resident (Bank), or FCNR(B), deposit scheme crossed the
$100-billion mark by the August 31 deadline, according to official sources
privy to the matter. The Reserve Bank of India’s special swap window also
attracted additional inflows through external commercial borrowings (ECBs) and
overseas foreign currency borrowings (OFCBs), although the sources did not
specify the latest amounts under these two categories. While the FCNR(B) window
closed on Monday, banks will be allowed to avail of the swap facility for
deposits already contracted until September 11. While the swap deposits have a
minimum maturity of three years and a maximum maturity of five years, most of
the inflows came in the latter category.
(Financial Express)
Bank loan reclassification
masks microfinance growth: MFIN: Banks’ reclassification of
microfinance loans as retail credit has weighed on overall loan growth in the
microfinance sector, according to the Microfinance Industry Network (MFIN), one
of the sector’s self-regulatory bodies. According to its 58th edition of Micrometer,
the gross loan portfolio (GLP) of the microfinance industry grew 1.1%
sequentially to Rs.3.29 lakh crore in the first quarter of FY27. On a
year-on-year basis, however, the sector’s GLP declined 7% from Rs.3.53 lakh
crore in the June 2025 quarter. “While the GLP has inched up, the increase
would have been much higher but for the shifting of loans from microfinance
bureau to retail bureaus,” MFIN said.
(Financial Express)
Banks lose share in
microfinance lending: Banks’ microfinance portfolio
declined by 28.5% year-on-year to Rs.83,080 crore as of June 2026, reducing
their industry share from about 33% to nearly 25%. MFIN said the decline was
partly magnified by the reclassification of certain microfinance loans as
retail loans, while NBFC-MFIs expanded their portfolios and led the sector’s
recovery.
(Business Standard)
Capri Global plans debut
overseas bond issue: NBFC Capri Global Capital has
entered the international debt market for the first time, seeking to raise
approximately $300–500 million through bonds with a tenure of three years and
three months. The proposed issue, carrying initial price guidance of around
7.75%, forms part of its $1-billion global medium-term-note programme.
(Reuters)
NCLT stays approval of
Subhash Chandra’s Rs.6.25-crore repayment plan: A five-member Bench of the National Company Law
Tribunal (NCLT) has stayed a smaller Bench order on August 25 approving a Rs.
6.25-crore repayment plan proposed by Essel Group founder Subhash Chandra,
observing that there was no clear majority view among the members who had
earlier heard the matter. The Bench also restrained Chandra, described in the
order as the guarantor, from alienating any of his properties, either directly
or indirectly, and issued notices to all parties in the proceedings.
(Business Line)
Zomato bans sale of
analogue dairy dishes on platform: Zomato on Monday said it will not allow dishes
made with analogue dairy on its platform, and has begun removing items that
restaurant partners have themselves declared as containing such ingredients. The
Eternal-owned food delivery platform said it has adopted a zero-tolerance
policy on the sale of analogue dishes and reserves the right to pull down any
listing found in violation. Restaurants that remain non-compliant will be
delisted, it said. However, the company did not provide a timeline for
compliance or the number of restaurants that have been delisted so far.
(Financial Express)
Canada Pension Plan
Investments commits Rs.2,070 Crore to NIIF Infrastructure Fund II: Canada Pension Plan Investment Board (CPP
Investments) has committed about Rs.2,070 crore ($215 million) to NIIF
Infrastructure Fund II, the second India-focused infrastructure fund managed by
National Investment and Infrastructure Fund (NIIF). The fund will invest in
infrastructure assets and platforms across India, focusing on sectors
benefiting from long-term structural trends.
(Economic Times)
Irdai proposes Public
Insurance Registry to boost transparency, data sharing: The Insurance Regulatory and Development
Authority of India (Irdai) on Tuesday proposed the creation of a Public
Insurance Registry (PIR), a population-scale digital public infrastructure
aimed at making the insurance ecosystem more connected, transparent and
accessible. The proposed registry is envisaged as an interoperable and
non-exclusionary digital infrastructure, drawing on the experience of platforms
such as the JAM trinity, credit information bureaus and UPI. It seeks to
address information and interoperability gaps in the insurance sector by
creating a consistent and authoritative view of insurance records, while
allowing data to remain with the institutions that hold it. Under the
framework, insurers could access verified information across the ecosystem,
including policy and claims data, to improve underwriting, pricing and product
design. The registry could also help identify protection gaps and improve
claims and customer servicing.
(Financial Express)
DGFT Enables Automated
Issuance of Free Sale and Commerce Certificates to Promote Ease of Doing
Business:
The Directorate
General of Foreign Trade (DGFT) has enabled automated issuance of Free Sale and
Commerce Certificates (FSC) on the DGFT portal. These Certificates are issued
to exporters, under Foreign Trade Policy, for items which are not covered under
the Drugs & Cosmetics Act, 1940. At present, such certificates are issued
by Regional Authorities (RAs) of DGFT after scrutiny and verification. Eligible
applications will now be considered for automatic issuance in accordance with
the prevailing framework, without being routed for manual scrutiny. The
automated mechanism is expected to reduce processing time for a significant
category of FSC applications and lower the compliance burden associated with
the earlier manual process.
(PiB)
DELIVERED DUTY UNPAID (DDU)
· Delivered Duty Unpaid (DDU) is
an old international trade term indicating that the seller is responsible for
the safe delivery of goods to a named destination. The seller pays all
transportation expenses and assumes all risks during transport.
· The buyer becomes responsible
for paying import duties when the goods arrive at the agreed-upon location as
well as further transport costs. Delivered Duty Paid (DDP) indicates that the
seller must cover duties, import clearance, and any taxes, however.
· Delivered Duty Unpaid (DDU)
isn't included in the most recent 2023 edition of the International Chamber of
Commerce's Incoterms. The official term that best describes the function of DDU
is now "Delivered-at-Place (DAP)."
RBI KEY RATES
Repo
Rate: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 94.8697
INR
/ 1 GBP : 128.4311
INR
/ 1 EUR : 110.0694
INR
/100 JPY: 59.3100
EQUITY INDEX
Sensex:
76944.28 (-12.99)
NIFTY:
24055.80 (-24.60)
Bnk NIFTY: 57409.60 (-615.35)
World Coconut Day: September 2
marks World Coconut Day, which highlights the importance of coconuts in
agriculture and the Asia-Pacific economy.
Historic events: September 2
holds profound significance in both Indian and world history, marking
monumental shifts in governance, conflict, and society. In India, the Interim
Government was formed on this day in 1946, headed by Jawaharlal Nehru as vice
president to pave the way for independence from British rule, while globally,
the official signing of the surrender of Japan took place aboard the USS
Missouri on September 2, 1945, bringing a definitive end to World War II.
****WISHING A NICE DAY****
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