Issue: 1081
India loses top
manufacturing spot as PMI falls to nine-month low: India ceded its position as
the world’s fastest-growing major manufacturing economy in November, as factory
activity cooled more sharply than expected. The HSBC Manufacturing Purchasing
Managers’ Index fell to 56.6, a nine-month low - from 59.2 in October, marking
one of the steepest month-on-month declines in the region. Although still
firmly in expansion territory, the drop was enough for Thailand to overtake
India at the top of the global PMI rankings.
(Moneycontrol)
Rupee breaches 90 mark, INR
most depreciated but among least volatile currencies, says SBI report: India’s rupee slipped past the
psychologically critical Rs 90 per US dollar level on Tuesday, marking one of
its fastest declines in recent years. Yet, in a contrarian assessment, SBI
Research has argued that the currency’s fall should not be mistaken for
weakness, stressing that the rupee remains one of the most stable
emerging-market currencies, with volatility far lower than global peers. In
its latest Ecowrap report, the country’s largest lender noted that while the
rupee has depreciated roughly 5.5% since April 2025, this slide has been driven
largely by external shocks, particularly the escalating trade dispute with the
United States.
(Business Today)
Services PMI rose to 59.8
in November: Contrary
to manufacturing services in private sector showed improvement in November, a
survey result by S&P Global released on Wednesday showed. During the month
job creation was modest. “India’s services PMI Business Activity Index rose
from 58.9 in October to 59.8 in November, driven by robust new business intakes
that fuelled output growth,” Pranjul Bhandari, Chief India Economist at HSBC,
said. This index, prepared by S&P Global, is based on responses from purchasing
executives of 400 companies. Index above 50 means expansion, while below 50
means contraction. On December 01, S&P Global had said that PMI
Manufacturing for November was 56.6 as against 59.2 of October. November number
was lowest in 9 months.
(Business Line)
Hindujas looking
for strategic partner in IndusInd Bank, but will not dilute stake: The
Hinduja Group has urged the government and the Reserve Bank of India to let
private bank promoters hold stakes of up to 40% and align voting rights
accordingly. The bank now has a capital adequacy ratio
of over 17%, so it does not need funds. As a promoter, we have always stated
that whenever funds are required, it will be provided, says Ashok Hinduja,
chairman, IndusInd International Holdings (IIHL).
(Economic Times)
RBI approves appointment of
Vikram Sahu as CEO of Bank of America, India operations, says internal memo: RBI has approved the
appointment of Vikram Sahu as the chief executive officer (CEO) of Bank of
America NA (BoFA) in India, according to an internal memo circulated by the
US-headquartered bank to its employees. Sahu will assume the charge in addition
to his current responsibilities as India country executive. Sahu
will replace Kaku Nakhate, who served as the bank CEO for about 15 years.
(Economic Times)
Banks pushing riskier loans
to net higher yields, protect NIMs: Banks have started increasing
exposure to higher yielding loans as they try to cash in on a benign credit
environment and at the same time protect margins, which have been under strain
in this financial year. his strategy aims to safeguard
profit margins in a favorable credit market. Recent data shows an increase in
the average lending rate on new loans. This trend helps banks maintain their
net interest margins. Banks are also lending more to individuals and smaller
businesses.
(Economic Times)
Bank of Maharashtra OFS
oversubscribed, govt mops up ?2,492 crore: With the oversubscription of
the offer-for-sale (OFS) of state-owned Bank of Maharashtra, the government is
expected to realise about Rs 2,492 crore by diluting its 6 per cent stake in
the bank. With the allotment of shares, the Pune-based lender would become
Minimum Public Shareholding compliant with the Sebi norms. The OFS of Bank of
Maharashtra closed for subscription Wednesday at a floor price of Rs 54 per
share. At this price, the government would mop up about Rs 2,492 crore by
divesting its 6 per cent stake in the lender. Prior to the OFS, the
government's holding in the bank was 79.60 per cent. With the stake dilution to
73.6 per cent, the bank would be able to meet the MPS norm of 25 per cent as
the government stake would come below 75 per cent.
(Business Standard)
Around 200 IndiGo flights
cancelled due to pilot shortage, airline issues apology: Chaos ensued across Indian
airports as around 200 IndiGo flights were cancelled on Wednesday, making it
airline's one of the most severe operational breakdowns in recent years. With
scores of passengers stranded, IndiGo issued an apology for the inconvenience
caused. On Wednesday, multiple
airports, including Delhi, Mumbai, Hyderabad, Bengaluru, reported around 200
flight cancellations till the afternoon, according to a report by News18. A
significant factor behind the chaos is a sharp shortage of crew, particularly
pilots, following the introduction of revised Flight Duty Time Limitation
(FDTL) norms last month. The new rules mandate more rest hours and humane
rosters, but IndiGo has been struggling to realign its massive network
accordingly.
(Moneycontrol)
Time for India Inc to shake
out of comfort zone: Uday Kotak: As the rupee slipped to an all-time low
against the dollar on Wednesday, founder and director of Kotak Mahindra Bank
Uday Kotak said it was time for Indian businesses to “shake out of comfort
zone”. The veteran banker attributed the decline to foreign institutions
selling Indian equities and said for now they “seem smarter” as local investors
continue their buying spree. “Re@90. The proximate reason: foreign selling of
Indian stocks both FPI & PE under FDI. Indian investors buying. Time will
tell who is smarter. For now foreigners seem smarter. 1 year nifty $ return is
0. But this a long game. Time for Indian business to shake out of comfort
zone,” he said in a post on X.
(Financial Express)
SEBI eases access for
low-risk foreign investors with new SWAGAT-FI window: Markets regulator SEBI has made it easier for
low risk foreign investors to participate in the Indian securities market with
the introduction of a single window access, a move aimed at simplifying
compliance and enhancing the country's attractiveness as an investment
destination. The new framework - Single Window Automatic & Generalised
Access for Trusted Foreign Investors (SWAGAT-FI) - would provide easier
investment access to low risk foreign investors, enable a unified registration
process across multiple investment routes and reduce repeated compliance and
documentation for such entities.
(Business Line)
Government withdraws
mandatory pre-installation of Sanchar Saathi app: Given Sanchar Saathi’s increasing acceptance,
the government has decided not to make the pre-installation mandatory for
mobile manufacturers, the Ministry of Communications said on Wednesday. It said
that, with the intent to provide cybersecurity to all citizens, the Ministry
had mandated the pre-installation of the Sanchar Saathi app on all smartphones.
The app is secure and meant solely to help citizens avoid bad actors in the
cyber world, it added. Meanwhile, Telecom Minister Jyotiraditya Scindia has
said that snooping is neither possible nor will it happen with the Sanchar
Saathi app.
(Financial Express)
OFFER FOR SALE
§ An Offer For Sale (OFS) is a method that allows
company promoters to sell their shares to institutional and retail investors
through stock exchanges. In an OFS, existing shareholders (typically promoters)
sell their shares directly to investors without the company issuing new shares.
§ Primarily used by large shareholders to reduce their
stake, meet regulatory minimum public shareholding norms, or monetize their
holdings. The government also uses this method for the disinvestment of public
sector enterprises.
§ In an Offer for Sale (OFS), existing shareholders
sell their shares and receive the proceeds, while in a Follow-on Public Offer
(FPO), the company issues new shares to raise fresh capital for its own use.
RBI KEY RATES
Repo
Rate: 5.50%
SDF:
5.25%
MSF
/Bank Rate: 5.75%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 90.2697
INR
/ 1 GBP : 119.5026
INR
/ 1 EUR : 105.1022
INR
/100 JPY: 58.0200
EQUITY INDEX
Sensex: 85106.81 (-31.46)
NIFTY: 25986.00 (-46.20)
Bnk NIFTY: 59348.25 (+74.45)
Navy Day: Navy Day is
celebrated on 4th December to honour India's decisive naval victory during
Operation Trident in the 1971 India–Pakistan War.
Historical events: In world history,
this day is known for significant events including the death of Nobel laureate
Thomas Hunt Morgan (1945), the killing of civil rights activist Fred Hampton
(1969), and the death of Bollywood actor Shashi Kapoor (2017).
****Have a nice Day****
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