Issue: 1158
US to raise global tariff
to 15% this week, old rates may return in 5 months: Scott Bessent: The United States could raise
its newly imposed 10% universal import tariff to 15% as early as this week,
Treasury Secretary Scott Bessent has indicated, signalling further churn in
global trade policy under President Donald Trump. Speaking to CNBC, Bessent said
the proposed hike was imminent. “That’s likely sometime this week,” Bessent
said on CNBC in response to a question about when the increase to 15% would be
implemented. Trump last month introduced a 10% universal levy after the Supreme
Court struck down much of his earlier tariff regime. However, Bessent clarified
that the legal authority backing the new duties allows them to remain in place
for only 150 days.
(Moneycontrol)
RBI creates intervention
space as rupee faces renewed strain: The Reserve Bank of India has carved
out more flexibility to defend the rupee, as rising geopolitical tensions and a
spike in energy prices pushed the currency to a record low on Wednesday. The
central bank has changed the maturity profile of its short dollar forwards,
reducing near-term delivery obligations and pushing them further out, the
latest RBI data show. By reducing the amount of dollars it must deliver over
the next year, the central bank has more room to take on fresh short dollar
positions and intervene if pressure on the rupee persists. RBI
data released late Friday show net short dollar positions maturing within a
year fell to $27.5 billion at the end of January, the lowest since September
2024. At the same time, the overall position climbed to a nine-month high of
$67.8 billion, as the RBI opted for a three-year buy-sell swap — buying dollars
now and committing to sell them back in three years.
(Business Line)
Rupee hits all-time low of
?92.30 amid war fears; Sensex drops 1,123 points: Markets endured a brutal session on Wednesday
as escalating hostilities under “Operation Epic Fury” involving the United
States, Israel, and Iran triggered a broad risk-off selloff, driving the rupee
to an unprecedented low and sending MCX gold surging past ?1.63 lakh. The
Sensex crashed 1,122.66 points, or 1.40 per cent, to close at 79,116.19, while
the Nifty 50 shed 385.20 points, or 1.55 per cent, to end at 24,480.50. The
rupee breached the psychological ?92 mark for the first time, touching an
all-time low of ?92.30 against the US dollar, having opened at 92.05. India VIX
surged 22.6 per cent to 20.83 — its highest since May 2025 — as Brent crude
pushed toward $85 per barrel on fears of disruption to the Strait of Hormuz.
(Business Line)
Fino Payments
Bank says transition to small finance bank on track, to meet 18-month deadline: Fino
Payments Bank said in its regulatory filing that its planned conversion into a
small finance bank is progressing within the central bank’s 18-month timeline. The
Reserve Bank of India had granted the payments bank an “in-principle” approval
in December last ?year to ?convert into a small finance ?bank, a move that would allow Fino to
accept larger deposits, offer ?loans and credit facilities. The
update comes amid the bank is facing scrutiny linked to a tax probe that has ?led ?to the arrest of its CEO on March 2.
(Financial Express)
Private banks lose share to
NBFCs in consumer durable loans: The aggressive push by
non-banking financial companies (NBFCs) into consumer durable financing has
steadily eroded the market share of private sector banks. Apart from
established players like Bajaj Finance and HDB Financial Services, newer
entrants such as Poonawalla Fincorp and TVS Credit have intensified
competition, leveraging strong merchant tie-ups and technology-driven platforms
to capture point-of-sale lending for electronics and household appliances.
Aggressive sales and marketing strategies have allowed them to dominate the
space. Data from credit bureau CRIF
High Mark show that NBFCs accounted for nearly 82.8% of the value of consumer
durable loan originations for the December quarter, up from about 70% two years
ago. In contrast, private banks’ share has declined from 29% to 14% during the
same period.
(Financial Express)
Motilal Oswal Home Finance
signs USD 100 mn debt deal with ADB for women-focused, affordable, green
housing: Motilal
Oswal Home Finance on Wednesday said it has signed an agreement to raise USD
100 million in non-convertible debentures (NCDs) from the Asian Development
Bank (ADB) to expand lending to women borrowers and promote green-certified
affordable housing projects. To be raised in
rupee-equivalent debt, a part of the capital will be used to provide affordable
housing loans to women borrowers while 10 per cent of the proceeds will be
deployed to finance the construction of residential units that meet recognised
green building certification standards, supporting the adoption of
environmentally sustainable construction practices, the company said in a
release.
(Economic Times)
SBI recruits 5,783 junior
associates, crosses 18,000 hires in FY26: State Bank of
India on Wednesday announced the recruitment of 5,783 junior associates across
states and Union Territories to strengthen customer service and branch operations
nationwide. The selection process drew 9,00,771 applications, reflecting strong
interest in the country’s largest lender. The preliminary examination was
conducted in September 2025, after which 1,20,006 candidates were shortlisted
for the main examination held in November 2025. A total of 5,783 candidates
have now been selected for appointment. With this round of hiring, the bank has
inducted over 18,000 employees across roles and grades in the current financial
year, marking one of its largest talent addition drives in recent years.
(Business Standard)
Sidbi withdraws ?8,000
crore bond issue as yields rise beyond comfort: State-owned
Small Industries Development Bank of India (Sidbi) cancelled its scheduled bond
issuance worth ?8,000 crore on Wednesday after investor bids came in at yields
higher than the issuer was willing to accept. The issuer received bids worth
?5,079 crore for its three-year bond issuance, with most yields ranging between
7.28 per cent and 7.44 per cent. “They could not even receive bids for the
entire amount, and the ones received were really high,” said a dealer at a
state-owned bank. Investor sentiment has dampened as global financial markets
react sharply to the latest escalation of geopolitical tensions in West Asia,
market participants said. However, Bank of Baroda’s (BoB’s) ?10,000 crore green
infrastructure bond issuance was priced meaningfully tighter than comparable
state government securities (G-secs) of similar tenor, suggesting a clear
greenium for the transaction.
(Business Standard)
Axis Bank partners with
Tesla to offer tailored financing solutions: Axis Bank, the
country’s third-largest private sector lender, on Wednesday said it has
partnered with Tesla to become its preferred financing partner. Under the
arrangement, the bank will offer tailored financing solutions and a
differentiated customer experience for Tesla buyers. According to the bank,
customers in the premium electric vehicle (EV) segment will, for the first
time, be able to access loans with a tenure of up to 10 years, significantly
reducing the monthly financial commitment. The bank will also introduce bespoke
schemes designed to suit the financial profiles of Tesla’s diverse customer
base. Axis Bank said the offering will feature an end-to-end paperless process
aimed at enabling rapid loan sanctions and ensuring a seamless transition from
booking to vehicle delivery.
(Business Standard)
BSE to roll out monthly
futures, options on Sensex Next 30: The capital market regulator SEBI has allowed
BSE to launch derivative contracts on the “BSE Sensex Next 30 Index”. The index
tracks the largest and most liquid companies in the BSE 100 that are in the
derivatives segment and not members of the BSE Sensex 30 index. The Sensex Next
30 Index tracks emerging large-cap companies poised to join the flagship index,
presenting a compelling thematic play on future market leaders. The exchange
will offer cash-settled monthly index futures and monthly index options with
expiry dates on the last Thursday of each expiry period, it said.
(Business Line)
February services PMI eases
to 58.1; new orders hit 13-month low, cost pressures surge: India’s services sector growth slowed in
February as new business rose at its slowest pace in over a year and firms
faced the steepest cost pressures in two-and-a-half years. The HSBC India
Services PMI came in at 58.1, slightly lower than January’s 58.5 The HSBC India
Services Purchasing Managers’ Index is compiled by S&P Global, it shows
growth when it comes in above the 50-mark and contraction when it falls below
50.
(Financial Express)
Market crash: Investors
lose over ?21 trn in 3 days on West Asia tensions: Indian equity benchmark
indices, Sensex and Nifty, tumbled more than 1 per cent each on Wednesday due
to across-the-board selloff amid escalating West Asia conflict, wiping out more
than ?9 trillion in market capitalisation. The 30-share BSE Sensex declined
1,122.66 points or 1.40 per cent to end at 79,116.19. Likewise, the 50-share
NSE Nifty lost 385.20 points or 1.55 per cent to end at 24,480.50. As of March
4, the combined market capitalisation of all BSE-listed companies stood at
?446.98 trillion, down by ?9.1 trillion from Monday's all India market capitalisation
of ?456.17 trillion. In the past three trading sessions, the market sell-off has
erased investors' money by more than ?21 trillion, according to exchange data.
(Business Standard)
SEBI revamps AIF reporting
norms, introduces annual filing system: The Securities and Exchange Board of India
(SEBI) has overhauled the regulatory reporting framework for Alternative
Investment Funds (AIFs), replacing the existing quarterly activity report
regime with a combination of annual and limited quarterly filings, aimed at
easing compliance burdens. In a circular issued on Wednesday, SEBI said AIFs
will now be required to submit a comprehensive Annual Activity Report within 30
calendar days from the end of each financial year. The first such report, for
the year ending March 2026, must be filed by May 31, 2026, through the SEBI
Intermediary Portal. In addition, AIFs will file a
limited Quarterly Activity Report in a revised format within 15 days of the end
of each quarter, starting with the quarter ending June 2026. No separate
quarterly report will be required for the March quarter, as the annual filing
will subsume those data points.
(Business Line)
RBI tightens rules on NBFC
lending to defaulting borrowers; seeks board-approved policy: Reserve Bank of India is scrutinizing
shadow banks. Several non-banking finance companies face questions regarding
their policy on lending to borrowers with existing defaults. The central bank
insists on a board-approved policy to justify new loans to such customers. This
move aims to prevent evergreening and ensure transparency in lending practices.
(Economic Times)
RBI's forward-book dollar
deficit surges to $68.4 billion in January: After recording a fall of
around $4 billion in December, the Reserve Bank of India’s outstanding net
short dollar position in the rupee forward market rose to $68.42 billion by the
end of January, latest data showed. It was $62.35 billion by the end of December.
Short positions in less than one year fell by around $3 billion, while those in
longer than one-year tenures rose by around $9 billion. Of the $68 billion net
short dollar position, $10.1 billion was in one-month contracts, $7.8 billion
in one–three month tenures, $10.1 billion is set to mature between three months
and a year, and the remaining $40 billion was in more than one-year contracts.
(Business Standard)
SAMPANN
· SAMPANN (System for Accounting and Management of Pension)
is an integrated, online pension management system for Department of Telecommunications
(DoT) pensioners, creating a single platform for processing, sanctioning and
disbursing pension directly to the bank account of pensioners. It also offers
online grievance redressal, digital profile management and transaction record,
enhancing transparency and efficiency for telecom retirees.
·
Further
advancing the Government’s vision of digital governance and paperless services,
important pension related documents i.e. Gratuity Payment Orders, Pension
Certificates/ePPOs, Pension Commutation Payment Orders and Form 16 are now made
available through DigiLocker. This integration enables pensioners to securely
access, store, and retrieve their official documents anytime and anywhere,
ensuring greater convenience, authenticity, and long-term digital preservation
of records.
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 : 92.2828
INR
/ 1 GBP : 122.8622
INR
/ 1 EUR : 107.0124
INR
/100 JPY: 58.5500
EQUITY INDEX
Sensex: 79116.19 (-1122.66)
NIFTY: 24480.50 (-385.20)
Bnk NIFTY: 58755.25 (-1084.40)
International Day for Disarmament and
Non-Proliferation Awareness: March 5th is
primarily recognized as the International Day for Disarmament and
Non-Proliferation Awareness, established by the UN to promote peace, security,
and awareness of the risks of arms proliferation. It is also celebrated
globally as World Energy Efficiency Day and includes local observances like
Panchayatiraj Divas in India (2026).
Historical events: March 5th is a
significant date in history, most notably marking the 1931 signing of the
Gandhi-Irwin Pact, which paused the Civil Disobedience Movement in India.
Globally, it is known for the death of Soviet leader Joseph Stalin (1953) and
the start of the Battle of the Ruhr in WWII (1945).
****Have a nice Day****
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