Issue: 1159
IMF warns prolonged Middle
East conflict risks global stability: International Monetary Fund
Managing Director Kristalina Georgieva has cautioned that the escalating
conflict in the Middle East could undermine global economic stability if it
becomes prolonged, flagging risks to energy markets, inflation trends and
investor sentiment. Addressing delegates at the Asia in 2050 Conference in
Bangkok this morning, Georgieva said an extended war would likely transmit
shocks across economies by lifting energy prices and clouding growth prospects.
At a time when many countries are still navigating fragile recoveries and tight
financial conditions, she warned, policymakers could face renewed strain.
(Business Today)
Iran’s olive branch sparks
Sensex surge; index reclaims 80,000: Equity benchmarks staged a
sharp recovery on Thursday, snapping a three-session losing streak, after
reports that Iran had conditionally offered to abandon its nuclear programme
raised hopes of de-escalation in the ongoing US-Israel-Iran conflict. The BSE
Sensex surged 899.71 points, or 1.14 per cent, to close at 80,015.90, while the
Nifty 50 gained 285.40 points, or 1.17 per cent, to settle at 24,765.90.
Earlier in the session, both indices had given up a portion of their intra-day
gains after an initial surge. The catalyst for the rally was
a combination of geopolitical and trade-related developments. The US announced
security and insurance guarantees for commercial shipping through the Strait of
Hormuz, including the possibility of military escorts for oil tankers, easing
fears of disruption to global energy supplies.
(Business Line)
South Indian
Bank launches digitally integrated loan against MF products: South
Indian Bank has launched a digitally integrated Loan Against Mutual Funds
(LAMF) product in partnership with fintech firm smallcase. The offering allows
investors to access secured credit against their mutual fund holdings through a
fully digital process. Starting at 9.99 per cent per annum, the facility will
be available to the bank’s customers as well as users of digital wealth
platforms integrated through its Lending Service Provider ecosystem.
(Business Line)
CD ratio at 82.5%, banks
step up short-term borrowings: Banks are lending a higher
proportion of their deposits, further thinning liquidity buffers and increasing
the reliance on short-term financing instruments, the latest central bank data
showed. The credit-deposit (CD) ratio rose to a record 82.5% in the fortnight
ended February 15, as credit growth outpaced deposit growth by 281 basis
points.
(Economic Times)
IIFL Finance looks at
options to exit microfin arm Samasta: IIFL Finance is exploring
options to exit its microfinance subsidiary IIFL Samasta Finance, and has
started discussions with multiple interested suitors, two people aware of the
development said. Piramal Finance is one of the
interested parties and negotiations with it have progressed a bit, they said,
adding that the discussions are at a preliminary stage.
(Economic Times)
Life insurers sharpen focus
on annuity and pension products: Life insurers
are sharpening their focus on annuity and pension products, betting on an
ageing population to drive long-term growth. Aditya Birla Sun Life Insurance is
launching index-guaranteed annuity plan, while SBI Life Insurance and HDFC Life
Insurance are planning deferred and variable annuity offerings. The change comes with rising longevity, limited
social security coverage and growing awareness around the need for stable
post-retirement income. Pension and annuity segments together consist of 18.87%
of the total life insurance industry, as of March 2025. This segment is growing
faster than the industry for most insurance companies.
(Economic Times)
Women startup founders get
just ?4 for every ?100 raised by men: Report: India has seen a 1.7x increase in girls
enrolled in high school STEM between 2013 and 2024, a 2x increase in women
registering for JEE between 2015 and 20225, and women today account for a
significant share of STEM graduates. But when it comes to raising funds, women
entrepreneurs receive a disproportionately small share. A new report released
by Kalaari CXXO initiative, titled 'The ?4 Problem: Women Founders and the
Market Gap Hiding in Plain Sight', said that for every ?100 raised by founders
coming from India's powerful startup networks, only ?4 goes to women. The findings
of the report highlight that even as women enter STEM (science, technology,
engineering, mathematics) and competitive exams in historic numbers, they
remain just 0.6 times as likely to emerge as founders.
(Business Standard)
Additional war-risk
insurance lifts Gulf airfares three to four times: Additional war-risk insurance premiums of
around ?30-40 lakh for a narrow-body flight and ?90 lakh-?1 crore for a
wide-body flight on legs such as Delhi-Dubai-Delhi are a key reason why spot
airfares between India and the Middle East have shot up three to four times
their usual levels. They are likely to remain elevated as long as the regional
conflict continues, aviation industry executives told Business Standard. Besides
the steep insurance costs, airlines are also grappling with rising aviation
turbine fuel (ATF) prices and operational disruptions that are pushing up
fares. Executives said ATF prices have already increased significantly and are
expected to rise by about 30 per cent as fuel shipments from the Middle East
have been disrupted due to the conflict. ATF accounts for roughly 40 per cent
of an Indian carrier’s total operating expenses.
(Business Standard)
RBI data suggest end of
repo rate cut transmission into lending rates: The transmission of repo rate cuts into
lending and deposit rates may be over, as interest rates on fresh loans went up
even as interest rates on fresh deposits barely came down, going by RBI data
for January 2026. This development comes amid deposit growth (at 12.42 per cent
year-on-year) lagging credit growth (14.40 per cent) as on January 31, 2026. That
transmission of the repo rate cuts into lending rates may have concluded can be
gauged from the fact that the weighted average lending rate (WALR) on fresh
rupee loans of scheduled commercial banks (SCBs) rose 39 bps to 8.67 per cent
in January 2026 from 8.28 per cent in December 2025. WALR in December 2025 had
declined by 43 bps from 8.71 per cent in November 2025.
(Business Line)
SWIFT: Global banks to roll
out new norms to speed up cross-border payments: SWIFT, on Thursday said banks
across the world, including major Indian banks like SBI, HDFC Bank, ICICI Bank
and Axis Bank, will begin rolling out a new framework aimed at making
cross-border retail payments faster, more predictable and cheaper for consumers
and small businesses. India will be amongst the first countries to benefit, as
one of the top remittance-receiving nations globally. “Consumers and small
businesses receiving payments in a range of countries, including five of the
world’s largest remittance markets, will be among the first to benefit as Swift
and banks globally roll out a pioneering new framework to bring next-generation
speed and new levels of affordability and predictability to cross-border retail
payments,”
(Business Standard)
NPCI signals identity
reboot: Looks to build brand recall beyond platforms: The National Payments
Corporation of India (NPCI), the organisation that runs India’s key digital
payment rails, is planning a major branding exercise as it seeks to reposition
itself as a technology-led infrastructure provider and strengthen its profile
in India and overseas. According to people familiar with the development, the
apex payments body is reviewing its brand architecture across the NPCI Group,
including its subsidiaries, to bring greater harmonisation to its identity.
(Business Standard)
TRICK WORDING
·
Deliberate
use of confusing or vague language like confusing
wording, double negatives, or other similar tricks, in order to misguide or misdirect a user from taking desired action
or leading consumer to take a specific response or action..
· For example; Using confusing double negatives to trick
users into opting for promotional emails or additional services, e.g., a
checkbox that says, “Uncheck this box if you do not want to receive offers”
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 : 91.6275
INR
/ 1 GBP : 122.0460
INR
/ 1 EUR : 106.2635
INR
/100 JPY: 58.3100
EQUITY INDEX
Sensex: 80015.90 (+899.71)
NIFTY: 24765.90 (+285.40)
Bnk NIFTY: 59055.85 (+300.60)
Historical events: March 6th marks
significant historical events, including the birth of Mughal Emperor Humayun
(1508), the Treaty of Surat (1775), and the first meeting between Mahatma
Gandhi and Rabindranath Tagore (1915). Globally, it marks Ghana's independence
(1957) and the renaming of boxer Cassius Clay to Muhammad Ali (1964).
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