Issue: 1338
· ICICI Life Insurance appoints
Sidharatha Mishra as MD and CEO.
· Reliance plans Rs.1 lakh
crore CBG investment in Andhra Pradesh, eyes 3 lakh jobs.
· RBI names Sudhakar Malli
Executive Director; to oversee Department of Supervision.
· Maharashtra CM launches
Dharavi Experience Centre.
· Amul expands US footprint,
plans to make dahi and paneer locally.
· HSBC hires Cantor's Paras
Jain to lead global TMT banking, sources say.
G7 to release up to 100
millions of barrels of diesel, crude: The Group of Seven nations and its partners are to
release as much as 100 million barrels of emergency oil and diesel stocks amid
pressure from the Trump administration to quell rising fuel prices. The release, being
coordinated by the International Energy Agency, will take place over the next
four months, Emmanuel Macron, France’s president and the current chair of the
G7, told journalists in a briefing on Friday. The G7 would like to trigger a
drop in fuel prices, he added. European diesel prices and Brent crude futures
slumped after the news. The decision came after the US floated the
possibility of a debilitating diesel-export ban if European countries didn’t
release more supplies. Such a move would threaten a crucial source of supply
for the continent, which leans heavily on imports to cover a diesel-production
shortfall.
(Moneycontrol)
Inflation target should
align with advanced economy average of 2%: Patra: Michael Debabrata Patra is the
longest serving member of monetary policy committee, first as an ex-officio
member nominated by the central bank board and then as the deputy governor
in-charge of monetary policy. He was also the member secretary of the Urjit Patel
committee which proposed the inflation targeting framework. In an email
interview to Subrata Panda, the former deputy governor says flexible inflation
target regime is essentially about ensuring that the economy grows at its full
potential. Former RBI Deputy Governor Michael Debabrata Patra reflects on the
decade of flexible inflation targeting, its contribution to price stability and
economic growth, and the lessons from the 2022 inflation breach. He also
discusses the need for policy flexibility, the importance of continuity among
external MPC members and the factors that should guide India’s inflation target
in an email interview with Subrata Panda. Edited Excerpts:
(Business Standard)
India-US trade deal is not
imminent yet, says USTR Jamieson Greer: A trade deal between India and
the United States is not imminent even as both sides work towards an agreement
and have identified the remaining sticking points, said US Trade Representative
(USTR) Jamieson Greer after a bilateral meeting with Union Commerce and Industry
Minister Piyush Goyal, on the sidelines of the G20 Trade Ministerial in the
American city of Milwaukee.
(Business Standard)
Bank of Baroda incorporates
pension fund subsidiary: Bank of Baroda (BoB) has
incorporated a subsidiary “BoB Pension Fund Management Company Ltd” with an
authorised share capital of Rs.100 crore. The public sector bank (PSB) is the
sponsor of the new Company, with a shareholding of 80.10 per cent. The balance
stake is held by Baroda BNP AMC. BoB’s new subsidiary aims to act as a pension
fund management company regulated by Pension Fund Regulatory & Development
Authority (PFRDA). With this, BoB becomes the
second PSB to enter the pension fund business, marking an important step in its
expansion in the retirement and long-term savings space. State Bank of India
was the first PSB to enter the pension fund business in April 2008. As on
August 31, 2026, SBI Pension Funds Pvt Ltd had assets under management
aggregating Rs.6.14 lakh crore.
(Business Line)
FCNR(B) leverage fuels
loans against FDs: A surge in leveraged trades
involving FCNR(B) deposits is likely to have propelled loans against fixed
deposits to their fastest growth rate in more than three years, with
outstanding advances jumping 43.2% year-on-year to Rs.2.04 lakh crore in
August, according to Reserve Bank of India (RBI) data. The last time growth was
higher was in June 2023, when such loans had risen 47%. Advances against fixed
deposits rose by around Rs.42,750 crore in just one month, from Rs.1.62 lakh
crore at the end of July. Compared with August last year, when outstanding
advances stood at Rs.1.43 lakh crore, the increase was around Rs.61,500 crore.
(Financial Express)
SBI-led lenders say Vijay
Mallya owes Rs 8,752 crore more: A group of lenders,
spearheaded by the State Bank of India, has revealed that Vijay Mallya still
owes an astonishing Rs 8,752 crore. This figure remains despite having
recovered over Rs 10,270 crore, including recent payments. Mallya's claims of
settling his debts with banks are in question. Court proceedings continue
regarding the recovery of dues and criminal charges, with the Enforcement
Directorate asserting that even recovered funds don't dismiss ongoing criminal
cases.
(Economic Times)
Share of new-to-credit
customers rises to 50% in June 2026 from 24% in June 2016: TransUnion
CIBIL-FIDC report: Non-banking finance companies
(NBFC) originate about half of India's new-to-credit customers by number, up
from 24% a decade ago, as consumer-durable loans increasingly bring first-time
borrowers into the formal financial system. NBFCs' share of new-to-credit, or
NTC, originations rose to 50% in the three months ended June 2026 from 24% in
the corresponding period of 2016, according to a report by TransUnion CIBIL and
the Finance Industry Development Council.
(Economic Times)
India's forex reserves fall
$18.3 bn, post biggest weekly decline on record: India's foreign exchange
reserves declined by $18.3 billion to $747.6 billion during the week ended
September 25, the biggest weekly fall on record, according to data compiled by
Bloomberg. The latest data was released by the Reserve Bank of India (RBI) on
Friday. The total reserves stood at
$765.9 billion in the previous week ended September 18, when they had fallen by
$14.9 billion, the sharpest decline since November 2024. After hitting all time
high of $785.7 billion during the week ended September 4 2026, foreign exchange
reserves fell $38.1 billion in the next three weeks.
(Business Standard)
Anant Ambani announces Rs 1
lakh crore Reliance investment in Andhra Pradesh, backs tech-led farming: Reliance Industries Executive Director Anant Ambani
on Friday said the company plans to invest Rs 1 lakh crore in Andhra Pradesh to
set up compressed biogas (CBG) plants, create more than 3 lakh jobs and
generate nearly Rs 60,000 crore in revenue for the state. Speaking at the
foundation stone-laying ceremony for the Rayalaseema Horticulture Hub and
Indian School of Agriculture in Madanapalle, Ambani said Reliance would work
with the government and farmers to support the new institution. "Today,
the Rayala-seema Horticulture Hub, backed by Rs 40,000 crore, adds another
milestone to India's Growth Story," he said.
(Moneycontrol)
Anthropic warns government
attitudes may hurt customer ties, IPO prospectus shows: Anthropic warned that government attitudes
toward the company and its technology could have broader implications for its
business, including its relationships with commercial customers and partners,
according to the IPO prospectus seen by Reuters.
Companies routinely warn
that policy changes could affect their business, particularly government
contractors. For example, SpaceX said in its IPO filing that maintaining strong
relationships with US government agencies is critical to its business and
warned that any deterioration in those relationships could materially harm its
ability to retain existing business and win new opportunities.
(Moneycontrol)
Payment firms seek bigger
UPI MDR share:
Payment
aggregators (PA) are negotiating with their sponsor banks for a larger share of
the acquiring bank’s cut of the new merchant discount rate (MDR) on UPI
transactions, with discussions centred on retaining 50-80% of the bank’s share,
people aware of the matter said. The negotiations are expected to be completed
before the new MDR takes effect on October 15. Under the framework notified by
the government and the National Payments Corporation of India (NPCI), merchants
will pay an MDR of 0.4% on UPI transactions above Rs 2,000. Of this, 0.12%
accrues to the acquiring bank, while the PA’s share has to be carved out of the
bank’s portion.
(Financial Express)
Centre fortifies India’s AI
mission with Sovereign Compute Pool amid rising GPU costs: The Centre is moving to build a pool of
government-controlled AI ecosystem by adding 10000 GPUs of computing capacity,
sources have said. The government is working with Centre for Development of
Advanced Computing (C-DAC) to install 3,000 GPUs of computing capacity, while
also finalising an agreement with the UAE under which an 8-exaflop AI
supercomputer, equivalent to about 10,000 GPUs of computing capacity, will be
deployed.
(Business Line)
CAFE-III norms notified
with benefit to all; debate ends for small cars vs big cars; EVs vs non-EVs: After much debate and deliberation since April
2024, the Centre has notified the third phase of Corporate Average Fuel Economy
(CAFE-III) norms that ends the debate of small versus big cars or electric
vehicles (EVs) versus non-electric vehicles by replacing the proposed special
carve-out for cars below 909 kg with a weight-based formula that still gives
lighter fleets a softer target without creating a separate small-car category. The September 2025 draft
had proposed a 3 g/km CO? concession for petrol cars weighing up to 909 kg
(with engine capacity not exceeding 1200cc), a provision that
disproportionately benefited Maruti Suzuki and triggered opposition from Tata,
Mahindra and other automakers; the final rules instead raise the reference
weight to 1,229 kg and flatten the weight adjustment, effectively giving
smaller/lighter cars more headroom while making the targets progressively
tougher for heavier sports utility vehicles (SUVs).
(Business Line)
TN officials use Hindi on
highway signboard, govt suspends them: Two officials were suspended
for use of Hindi words on a signboard on a State Highway for contravening the
official two-language policy of Tamil and English, the Tamil Nadu government
said on Friday. Departmental action has also been initiated against them, who
are assistant engineers with the Highways Department, the government said. In
an official release, the government warned of tough action against officials
violating the two-language policy of only Tamil and English.
(Business Line)
OPTION-ADJUSTED SPREAD (OAS)
§
The option-adjusted spread (OAS) measures the spread
between a bond's rate and the risk-free rate, while adjusting for any embedded
options like callables or mortgage-backed securities.
§
Utilizing OAS helps investors determine the value
and potential risks of investing by evaluating a bond’s yield against economic
factors and market volatility.
§ By analyzing securities
separately as a bond and an embedded option, OAS provides a more accurate
valuation than simply using yield to maturity.
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 : 95.9927
INR
/ 1 GBP : 127.2214
INR
/ 1 EUR : 108.6151
INR
/100 JPY: 60.6700
EQUITY INDEX
Sensex:
71909.70 (-570.59)
NIFTY:
22421.95 (-198.50)
Bnk NIFTY: 54450.75 (-182.30)
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