Issue: 1236
· Rajesh Exports denies
overstating revenues amid SEBI probe into Rs.15.15 lakh crore gap.
· Indians top immigrant
founders who built 59% of America’s $5 trillion unicorns: Study.
· Microfinance NPAs may edge up
in FY27 as write-off practices normalise: CareEdge.
· Mastercard to look beyond
card biz; target tier 3 & 4 markets for growth.
· Led by Poland & China,
central banks turned net buyers of gold in April.
Government releases uniform
guidelines for district GDP estimates with 2022-23 base year: The Statistics Ministry on
Wednesday said that it has released a uniform guideline for the compilation of
district domestic product (DDP) estimates with base year 2022-23. The National
Statistics Office (NSO), Ministry of Statistics & Programme
Implementation (MoSPI), had uploaded the Draft Guideline for compilation of DDP
estimates with base year 2022-23 on the official website of MoSPI on April 7
for consultation and feedback from stakeholders, including States and Union
Territories, academic institutions, researchers, and other users of sub-state
level statistics, an official statement said.
(Business Line)
FDI equity flows up 18% in FY
26; US doubles its investment: The Foreign Direct Investment
(FDI) equity inflows into the country increased 18% on year to $ 58.8 billion
in 2025-26 with major boost provided by investors in computer software and
hardware sectors, an analysis by the Department for Promotion of Industry and
Internal Trade (DPIIT) said. Overall FDI last year – which included reinvested
earnings and other capital – was up 17% on year to $ 94.5 billion. In the
January-March quarter the FDI equity investments grew 17.5% on year to 10.9
billion. The net investment by Foreign Portfolio Investors (FPI) was in the
negative. They pulled out $ 15.5 billion from India in 2025-26. The biggest
magnet for FDI was computer hardware sector that saw investments jump 78.4% to
$ 13.9 billion. The second biggest recipient of FDI, the services sector, saw a
growth of 7.0% to $ 10.0 billion.
(Financial Express)
India may overtake China in
share of global GDP in PPP terms by 2060: India could overtake China in
terms of the share of global output in purchasing power parity (PPP) terms by
around 2060 under a “sustainable convergence” scenario that combines faster
growth in developing economies with lower inequality and higher investment in
human capital, according to a report released by researchers associated with
the World Inequality Lab. The report titled ‘Global Justice Report: A Plan for
Equality & Prosperity Within Planetary Boundaries’ estimates that China
currently accounts for about one-fifth of world GDP in PPP terms. However, its
share may decline through the second half of the century as demographic trends
reduce its proportion of the global population. India’s share, by contrast, may
continue to rise, allowing it to surpass China around the middle of the century
under the modelled scenario.
(Business Standard)
HDFC Mutual Fund announces
temporary restrictions on large investments into Gold ETF, Gold ETF FoF: HDFC Mutual Fund has
temporarily restricted lump-sum subscriptions in its Gold ETF and Gold ETF Fund
of Fund (FoF), citing prevailing economic and market conditions. "In
light of the broader economic and market conditions, it has been decided to
temporarily restrict lump-sum subscriptions in HDFC Gold ETF and HDFC Gold ETF
Fund of Fund until further notice," HDFC Mutual Fund said in a statement.
(Moneycontrol)
SEBI issues warning letter
to ICICI Bank over FPI transaction violation: India's second-largest private
lender, ICICI Bank Ltd., on Thursday (June 4) informed stock exchanges that it
had received a warning letter from the SEBI. The letter, dated June 1, 2026
and received on June 2, 2026, at 3.55 pm, pertains to the bank’s role as a
custodian. SEBI issued the warning for permitting one foreign portfolio
investor (FPI) to repatriate funds prior to completion of the committed
retention period under the voluntary retention route (VRR).
(Moneycontrol)
PwC finds accounting lapses
in IndusInd treasury operations: A confidential PwC review of
IndusInd Bank's treasury operations revealed significant accounting irregularities.
Manual entries were used to mask over Rs.2,200 crore in trading losses,
inflating profits and assets by Rs.1,817.58 crore. The report highlighted a
disconnect between the bank's risk management and trading desks, leading to
overstated financial figures.
(Economic Times)
Central Bank of India
targets over Rs 3,500 crore bad-loan recovery in FY27: Central Bank of India plans
significant recovery from bad loans exceeding Rs 3,500 crore in FY27. The bank
will also introduce wealth management and credit card services in the latter
half of the current fiscal year. Development of cash management services for
corporate clients is also underway. These initiatives aim to boost the bank's
financial performance and non-interest income.
(Economic Times)
ATMs running out of cash,
IBA alerted over service disruption risks: ATM services in the country
may be hobbled because of a shortage in cash, which could also leave an impact
on rural and semiurban areas, the Confederation of ATM Industry (CATMi) has
told the Indian Banks’ Association (IBA). In March and April, the intended cash
(the cash needed to load into ATMs) was Rs.94,000 crore, but the available
amount was Rs.61,000 crore and Rs.54,000 crore, respectively. This translates
into a fulfilment percentage of 64 per cent and 57 per cent, respectively.
(Business Standard)
India fixes jet fuel
benchmark at Rs 115 a litre under new ATF stabilisation plan: Domestic airlines will be able to buy aviation
turbine fuel (ATF) at a fixed price of Rs 86.32 per litre for up to three years
under a new government-backed price stabilisation scheme aimed at shielding
carriers and passengers from a surge in global fuel costs. Under the voluntary
scheme, participating airlines will pay the fixed free-on-board (FOB) benchmark
price plus airport charges, oil company margins and applicable taxes, taking
the effective selling price to about Rs 115 per litre in Delhi, Rs 114.5 in
Mumbai and Rs 139 in Chennai, according to government officials.
(Moneycontrol)
Goldman Sachs buys Rs.210-crore
stake in Groww parent via block deal: Global financial services firm Goldman Sachs
on Thursday bought more than 1.13 crore shares of Billionbrains Garage
Ventures, the parent company of Groww, from venture capital firm Friale for Rs.210
crore through an open market transaction. Goldman Sachs, through its affiliate
Goldman Sachs Bank Europe SE, purchased 1,13,43,750 equity shares, representing
a 0.18 per cent stake in the Bengaluru-based trading platform, according to
block deal data available on the BSE.
(Business Standard)
Uttar Pradesh govt plans to
develop pharma ecosystem over 8,000 acres: The Uttar Pradesh government is planning to
create a world-class medical manufacturing ecosystem spanning nearly 8,000
acres as it seeks to position the state as a pharmaceutical hub. The Yogi
Adityanath government has already planned to set up pharma and medical devices
manufacturing hubs in Lalitpur and Gautam Buddha Nagar (Noida) districts
encompassing more than 2,400 acres.
(Business Standard)
SEBI to sharpen tech-led
surveillance as online investment frauds evolve: SEBI is working on additional
technology-driven tools to combat online investment frauds and strengthen
digital trust in capital markets, as the regulator increasingly shifts its
focus towards prevention, surveillance and real-time detection of fraudulent
activity. Speaking at a FICCI conference on next-generation fraud
investigations on Thursday, G Ram Mohan Rao, Executive Director, SEBI, said the
regulator has already rolled out investor-protection initiatives such as SEBI
Check, App Check and UPI verification mechanisms, and is working on further
measures to curb frauds in the securities market.
(Business Line)
Credit guarantee
scheme for MFIs still stuck in low gear: The Rs 20,000-crore credit guarantee
scheme for microfinance institutions, aimed at boosting liquidity, especially
for small lenders to the bottom of the pyramid customer segment, is yet to see
traction more than two months after it was launched. Banks have received an aggregate loan
demand of Rs 10,000-12,500 crore under the scheme, according to people familiar
with the matter. While the credit guarantee provides 70-80% default coverage,
its rigid caps on bank lending rates and strict margin rules for microfinance
companies have made it a non-starter so far in terms of loan disbursement, they
said. Large NBFC-MFIs are more likely to
benefit from the credit guarantee programme, while the smaller and medium-sized
ones, which are more vulnerable in the absence of bank funding, may be left
fending for themselves, said people tracking the sector. The loan limit for
large NBFC-MFIs was revised to Rs 1,000 crore from Rs 300 crore earlier.
(Economic Times)
Economist
Neelkanth Mishra appointed World Bank Executive Director: Economist Neelkanth Mishra was on
Thursday appointed as Executive Director of the World Bank in the US for a
tenure of three years. He will succeed incumbent Parameswaran Iyer, a 1981
batch retired Indian Administrative Service (IAS) officer of Uttar Pradesh
cadre. Mishra is a part-time member of the
Economic Advisory Council to the Prime Minister (EAC-PM), an independent body
constituted to give advice on economic and related issues to the Central
government, specifically to the prime minister.
(Business Standard)
BAIT AND SWITCH
§ The
practice of advertising a particular outcome based on the user’s action but
deceptively serving an alternate outcome.
§ Illustrations:
(i) Advertising a lower interest rate initially and charging a higher interest
rate at the time of actually applying for a loan, at times accompanied by
non-disclosure of processing fees and other charges upfront. (ii) Advertising a higher interest rate in
savings accounts, without specifying the requirement of minimum balance for the
same. (iii) Nudging customers to make
more number of transactions to receive cashbacks / rewards, whereas the fine
print imposes certain additional conditions for actually availing the cashback
/ rewards.
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 : 95.7425
INR
/ 1 GBP : 128.6045
INR
/ 1 EUR : 111.1877
INR
/100 JPY: 59.8900
EQUITY INDEX
Sensex:
74360.01 (+13.84)
NIFTY:
23416.55 (+10.95)
Bnk NIFTY: 54307.85 (+121.90)
World Environment
Day: June 5 is
globally celebrated as World Environment Day, the United Nations' principal
vehicle for encouraging awareness and action for the protection of our
environment.
Historical
events: On June 5, 1973,
the UN established World Environment Day to drive global conservation. In
India, this date marks the anniversary of the 1984 Indian Army's Operation Blue
Star at Amritsar's Golden Temple. Globally, it is also the 1968 day US Senator
Robert F. Kennedy was fatally shot.
****Have a nice Day****
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