Issue: 1339
· Sharp rise in global bond
yields poses huge challenge for emerging markets, says DEA secretary.
· Coca-Cola is said to consider
December filing for India unit’s $1 billion IPO.
· Maneka Gandhi turns
entrepreneur; launches vegan pet food brand ‘Woofly’.
· RBI names Sudhakar Malli
Executive Director; to oversee Department of Supervision.
· RBI Governor Sanjay Malhotra
flags rising financial risks, warns against complacency as West Asia conflict
adds to inflation pressure.
‘Super dangerous’ AI could
pose a far greater threat, warns SoftBank’s Masayoshi Son: SoftBank Group Corp. chief Masayoshi Son, one of
AI’s strongest advocates, has voiced concerns over the safety risks posed by
increasingly capable artificial intelligence systems, saying countries must
work together to control the technology, according to a Bloomberg report. Son said the rapid,
exponential rise in AI capabilities makes it essential for countries to build
trust and harness the technology together. “We don’t have any more luxury of having human
fight against human,” Son said, adding that countries need to work together to
control the far greater threat from powerful AI models. Superintelligence in
the wrong hands can become “super dangerous,” he said, as quoted by Bloomberg.
(Moneycontrol)
MPC seen raising rates by
25 bps this week; majority expect 50-75 bps tightening by FY27: Bankers expect the Monetary
Policy Committee (MPC) to raise the policy repo rate by 25 basis points (bps)
on Wednesday, October 7, 2026, with a majority also expecting the MPC to
deliver a cumulative 50-75 bps rate hike by the end of FY27, according to a
poll of bank economists conducted by businessline. Eleven of the 12 chief
economists from major public and private sector banks surveyed expect a 25-bps
increase in the repo rate, taking it to 5.50 per cent. Only Bank of Baroda’s
Chief Economist, Madan Sabnavis, expects the MPC to keep rates unchanged.
(Business Line)
Let exchange rate act as
shock absorber: IMF on Fed hike impact on India: The International Monetary
Fund has said the US Federal Reserve's decision to hike interest rates would
contribute to tighter global financial conditions and suggested that India
allow the exchange rate to act as a shock absorber. An IMF spokesperson on Friday
said rate hikes by the Federal Reserve have historically created some pressure
for emerging markets through capital flows, financing conditions, and exchange
rate movements. On September 17, the Federal Reserve raised interest rates for
the first time since July 2023 and indicated another hike could follow, as part
of its effort to combat inflation.
(Business Standard)
BoI, J&K Bank post
strong business growth in Q2: Bank of India (BoI) and Jammu
& Kashmir Bank (J&K Bank) reported strong growth in their loan books in
the September quarter, with gross advances rising 20.4% and 23.7% year-on-year
(y-o-y), respectively, according to provisional business figures released on
Saturday. BoI’s global gross advances rose to Rs 8.54 lakh crore as of
September-end, while global deposits increased 21.6% to Rs 10.38 lakh crore.
Its total global business grew 21.1% to Rs 18.92 lakh crore. Domestic advances
increased 17.7% to Rs 7.03 lakh crore, while domestic deposits rose 23.3% to Rs
9 lakh crore. The bank’s domestic retail, agriculture and MSME (RAM) advances
grew 18.6% to Rs 4.12 lakh crore. J&K Bank recorded a 23.7% y-o-y increase
in gross advances to Rs 1.34 lakh crore, ahead of the 16.3% growth in deposits
to Rs 1.77 lakh crore. Its total business increased 19.4% to Rs 3.10 lakh
crore.
(Business Line)
National Housing Bank set
to conduct forensic audit of SRG Housing Finance: Amid growing concerns over
dubious lending practices, the National Housing Bank has initiated a forensic
audit of SRG Housing Finance. This scrutiny will investigate allegations of
fictitious loans, including unsupported accounts and discrepancies in repayment
records. Auditors will delve into consumer data and loan origination processes
to uncover any fraudulent activity, building on earlier findings that flagged
possible fictitious loans ranging from Rs.300 to Rs.400 crore.
(Economic Times)
RBI grants Core Investment
Company registration to Indiabulls: Indiabulls Limited has
received a Certificate of Registration as a Core Investment Company from the
RBI. This approval adheres to the regulatory guidelines designated for
investment-holding organizations. A Core Investment Company primarily manages
investments and finances companies within its group. Indiabulls indicated it
might relinquish the certificate if deemed unsuitable under the CIC structure,
clarifying that this registration does not introduce any new banking or lending
activities.
(Economic Times)
Banks likely to report
treasury losses in Q2 as bond yields harden: Banks are set to report
treasury losses in the second quarter of 2026-27 (FY27) as bond yields hardened
across the curve, leading to mark-to-market (MTM) losses on their investment books,
said market participants. The yield on the benchmark 10-year government bond
hardened by 43.8 basis points (bps) during the quarter, while that on the
5-year bond rose by 46.8 bps to 6.89 per cent. The 10-year yield closed at 7.19
per cent on September 30, after rising 22 bps in September alone, its highest
level since April 2024. The rise more than reversed the fall of around 32 bps
in the first quarter. The yield on the 7-year bond, and 15-year bond rose by 50
bps, and 40 bps respectively in Q2FY27.
(Business Standard)
UPI transaction value may
drop 10% after Oct 15 MDR rollout: Survey: Unified Payments Interface
(UPI) transactions could see a 10 per cent decline in monthly value and a 4 per
cent drop in monthly volumes if the proposed 0.4 per cent merchant discount
rate (MDR) on payments above Rs.2,000 takes effect from October 15,
LocalCircles CEO Sachin Taparia said in a post on X. A LocalCircles survey released
on October 2 found that only 14 per cent of UPI users surveyed would continue
making UPI payments above Rs.2,000 and bear the additional amount if a merchant
passed the MDR on to them. About 27 per cent said they would switch to cash, 26
per cent to credit cards and 14 per cent to debit cards.
(Business Standard)
FSSAI orders Everest Food
to recall select batches of cumin powder: The Food Safety and Standards Authority of India
(FSSAI) has directed Everest Food Products to recall some batches of its
pre-packed cumin powder from the market after sample tests found it unsafe for
consumption. In a social media post, the food safety authority said that a
regulatory sample of “Pre-packed Cumin Powder” was drawn from the premises of
Goa-based Riverside Resorts & Holiday Homes. “The Food Analyst’s report
found pesticide residues of Azoxystrobin and Thiamethoxam at levels exceeding
the prescribed maximum limits. The analyst declared the sample ‘unsafe’ under
the Food Safety and Standards Act, 2006,” it noted.
(Business Line)
SME listings sink as
mainboard IPO index delivers over 10% annual return: Of the 151 small and medium enterprise (SME)
initial public offerings (IPOs) listed this year that raised Rs.2,078.55 crore,
70 trade below their issue price and 21 have lost half or more of their value.
Investors have little to show in terms of returns. The median SME listing is up
1 per cent, against 27.1 per cent for mainboard issues. Forty-six per cent of
SME stocks are under water, against 27 per cent on the mainboard. SME issues listed in
July-September returned a median 0.1 per cent as of September 29, with 45 per
cent trading below their issue price, Prime Database data showed. The first
half of the year looks similar, with 47 per cent of the 76 SME issues listed in
January-June trading below their offer price, with a median return of 5.1 per
cent.
(Business Standard)
Oil falls $2 as Europe
agrees to release diesel reserves after Trump push: Oil prices fell $2 after European leaders
agreed on Friday to a request by US President Donald Trump to release diesel
from their reserves to lower prices and reduce the need to import fuel from
America. Brent was down $1.80, or 1.76 per cent, at $100.50
a barrel at 10:49 a.m. CDT (1649 GMT). West Texas Intermediate dropped $2.02,
or 2.18 per cent, to $90.85 a barrel. For the week, Brent was down about 2.84
per cent so far, with WTI around 1.54 per cent lower.
(Business Standard)
GST exemption for banks,
nominated agencies for gold, silver imports may be withdrawn: The GST Council is likely to consider a
proposal to withdraw Integrated GST (IGST) exemption on gold, silver and
platinum imports by banks and nominated agencies, sources said. Currently,
imports of gold, silver, and platinum are subject to a 3 per cent IGST.
However, this tax is exempt when these precious metals are imported by banks
and nominated agencies, which are periodically listed by the government. Sources
said that on October 7, the GST Council, comprising Centre and state finance
ministers, will consider withdrawing the tax exemption given in 2017 to banks
and nominated agencies.
(Business Line)
Irdai’s distribution
reforms put 1 million livelihoods at risk: IBAI: The Insurance Regulatory and Development
Authority of India’s (Irdai’s) proposed distribution reforms could put at least
one million livelihoods at risk and could bring back unethical business
practices addressed by the 2023 expenses regulations, the Insurance Brokers Association
of India (IBAI) said. The apex body representing India’s 798 licensed insurance
brokers raised these concerns in a letter to Prime Minister Narendra Modi and
Finance Minister Nirmala Sitharaman. In its letter, IBAI said the proposed one-third
cut in expense limits for insurers cannot be achieved through efficiency alone
and would instead lead to reductions in sales, servicing and claims staff
across private and public sector insurers. ”Distribution reach shrinks
precisely when Insurance for All by 2047 requires more of it, with penetration
at 3.7% of GDP against a global average above 7%,” it said.
(Financial Express)
GST Council likely to ease
audits for firms with multi-state operations: The Goods and Services Tax
(GST) Council, the apex GST policymaking body, is likely to consider compliance
relief for businesses with operations in multiple states by revamping audits
that currently take place independently in each jurisdiction. The proposal to
conduct these audits in a more coordinated and centralised manner is likely to
be examined at the Council’s October 7 meeting in the capital, two people familiar
with the development said. The proposal to be taken up by the Council is linked
to a broader exercise by the Central Board of Indirect Taxes and Customs (CBIC)
to examine centralised administration of taxpayers having multiple GST
registrations under the same PAN.
(Business Standard)
CONFIRM SHAMING
§ This
is a trick of mis-selling using a phrase, video, audio or any other means to
create a sense of fear or shame or ridicule or guilt in the mind of the user so
as to nudge the user to act in a certain way that results in the user
purchasing a product / service from the platform or continuing a subscription
of a service, primarily for the purpose of making commercial gains by
subverting consumer choice.
§ Illustration:
Displaying a message like, "Are you sure you want to miss out on exclusive
offers and updates?" or "No, I prefer to stay uninformed about great
deals," while customer attempts to unsubscribe from marketing emails,
implying that opting out is unwise.
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)
****WISHING A NICE DAY****
Visit our website www.thebankingupdates.com
For Regular updates, Monthly e-magazines &
Promotion Study materials
CLICK HERE TO JOIN OUR COMMUNITY/GROUP FOR
DAILY UPDATES
CLICK HERE TO JOIN OUR CHANNEL FOR DAILY
UPDATES & QUIZ
Contact us: # 8261802533
Email: bankingupdates2020@gmail.com
CLICK HERE TO ORDER BANK PROMOTION KIT