Issue: 1316
·
GST Council meeting postponed to 7 October due to BRICS
summit.
·
India extends e-bus, e-truck motor localisation deadline amid
China’s REPM restrictions.
·
India’s BRICS Chairship to host $1 trillion Global Sovereign
Capital summit.
·
Private lenders corner nearly half of $130-bn FCNR(B) kitty.
·
Big corporate loans put banks’ underwriting, monitoring under
lens.
·
Flipkart pulls ahead of Amazon in quick commerce.
·
LIC gets RBI nod to raise stake in ICICI Bank to 9.99%.
Govt considering FDI
liberalisation in plantation sector: Official: The government is considering liberalising foreign
direct investment (FDI) norms in the plantation sector by bringing more
commercial crops under the ambit, an official said. The Commerce and Industry
Ministry is holding stakeholder consultations on the issue, the official said. "We
are looking for more FDI liberalisation in the plantation sector like
banana," the official added. At present, 100 per cent FDI under automatic
route is permitted in the tea sector, including tea plantations, coffee,
rubber, cardamom, palm and olive oil tree plantations.
(Business Line)
Excess Banking-System
Liquidity Becomes a Challenge for RBI: Surplus liquidity in India’s
banking system reportedly touched a four-year high of around Rs.10.3 lakh crore
on 3 September, mainly because of FCNR(B) inflows and RBI forex operations. The
excess liquidity is putting downward pressure on overnight rates and may
require continued absorption measures.
(Indian Express)
$136-Billion Inflow
Strengthens RBI’s Position in Forex Market: Foreign-currency deposits and
overseas borrowings under RBI-supported swap arrangements brought approximately
$136.38 billion into India by the end of August. These inflows have boosted
forex reserves, supported the rupee and enhanced the RBI’s capacity to manage
exchange-rate volatility.
(Financial Express)
SBI plans to hire 12,000
employees, up to 250 more branches in FY27: State Bank of India (SBI)
plans to hire around 11,000 to 12,000 employees and add up to 250 branches
during the current financial year, chairman CS Setty said in an interview with
news agency PTI. The hiring will cover both clerical and officer-level
positions. Setty said the final number could change depending on retirements
and the bank’s emerging requirements. "In terms of recruitment,
I think we would be looking at around 11,000 to 12,000 appointments across both
clerical and officer cadres this year. This number may vary depending on
retirements and emerging requirements, but I expect we should close the year
with around 12,000 recruitments," the chairman said.
(Business Today)
FCNR(B) deluge softens CD
rates; large banks stay away: Certificate of deposit (CD)
rates have slipped below 6 per cent from the 7-7.25 per cent levels seen about
three months ago, primarily due to the flood of liquidity generated by banks
swapping Foreign Currency Non-Resident (Bank) or FCNR(B) deposits with the
Reserve Bank of India under its special concessional forex swap scheme. The
sharp decline in funding costs highlights the impact of the RBI’s FCNR(B)
window. By swapping $127.23 billion of FCNR(B) deposits with the RBI, banks
drew substantial rupee liquidity, curbing their need for CD funding.
(Business Line)
Difficult time for
microfinance business behind us, Q2 to see growth, says IndusInd Bank MD: The difficult phase for the
microfinance business is now behind us, with risks playing out favourably, and
growth in the segment is expected to return from the second quarter onwards,
IndusInd Bank MD and CEO Rajiv Anand has said. IndusInd Bank faced a severe
governance and accounting crisis in 2025 centred around its microfinance
subsidiary, Bharat Financial Inclusion Ltd (BFIL).
(Economic Times)
Every fourth Jan Dhan
account inoperative; 5.72 crore have zero balance: RTI: Nearly 5.72 crore Pradhan
Mantri Jan Dhan Yojana accounts currently hold zero balances. Over 15 crore
accounts under the scheme are classified as inoperative. Uttar Pradesh leads
with the highest number of zero-balance and inoperative accounts. The scheme
aims for universal financial inclusion across all households. More than 59
crore accounts hold over Rs 3.15 lakh crore.
(Economic Times)
SEBI clears NSE IPO, paving
way for market debut: SEBI on Friday gave its final approval to the National Stock Exchange’s
(NSE) long-awaited public offering, clearing the last hurdle for the exchange
to go public nearly a decade after it began pursuing a listing. Sources said
NSE may file an updated Red Herring Prospectus (RHP) and announce the price
band next week, with the initial public offering (IPO) likely to open for
subscription the following week and list before September 25.
(Business Line)
SAT to hear Jane Street
appeal against SEBI on October 5: US-based hedge fund Jane Street on Friday
reiterated its request in the Securities Appellate Tribunal (SAT) to access the
original complaint, initial correspondence between the Securities and Exchange
Board of India and the National Stock Exchange and other material relating to
the earlier investigations. The firm argued that a surveillance report prepared
by NSE and SEBI’s own Integrated Surveillance Department had earlier found no
evidence to establish market manipulation by the US-based trading firm.
(Business Line)
Govt's Rs.37,500-cr coal
gasification scheme fails to attract bids: The government's ambitious Rs.37,500-crore
financial incentive scheme for the promotion of coal gasification has found no
taker so far, according to sources. Despite the September 7 deadline, the
scheme has received no application from any private or public player to set up
projects under the programme, raising concerns over the viability of the Coal
Ministry's push to gasify 75 million tonnes of coal and lignite, sources said.
(Business Line)
New SEBI Rules for ETF
Trading Become Effective: SEBI’s revised framework covering base prices,
price bands, pre-open call auctions and close-out procedures for
Exchange-Traded Funds takes effect from 7 September. The implementation was
earlier deferred from 1 September to allow market infrastructure institutions
additional preparation time.
(Moneycontrol)
NSE Introduces Revised
Pre-Open Auction Framework: The NSE’s revised pre-open session rules
become operational from 7 September. The order-entry period will be divided
into two phases, with market orders prohibited during the second phase, to
improve price discovery and align the system with SEBI’s Closing Auction
Session framework.
(Mint)
NFRA Expands Hiring for
Audit, Technology and Enforcement Roles: The National Financial Reporting Authority has
initiated recruitment for 24 positions in audit, technology, management and
administration. The expansion is intended to strengthen audit-quality
inspections, financial-statement reviews, cybersecurity capabilities and
enforcement work.
(Financial Express)
CREDIT IMPULSE
·
Credit impulse refers to the
change in the flow of new credit relative to GDP, rather than merely the growth
rate of outstanding credit.
·
A positive credit impulse
indicates that fresh lending is accelerating and may support investment,
consumption and economic growth. A negative impulse may signal weakening demand
or tighter financial conditions even when total credit is still growing.
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 : 94.4914
INR
/ 1 GBP : 127.9703
INR
/ 1 EUR : 109.8822
INR
/100 JPY: 60.5200
EQUITY INDEX
Sensex:
76515.43 (+362.57)
NIFTY:
23897.70 (+24.25)
Bnk NIFTY: 57369.65 (-10.95)
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