Issue: 1263
· Govt to sell up to 5.04%
stake in Cochin Shipyard.
· Deposits win for private
banks, loans trophy for PSBs: Q1 throws up opposing trends; private growth seen
as healthier.
· Private banks write off
nearly half of NPAs in FY26, outpace PSBs.
· Tier-II cities become real
estate developers' next address for growth.
· 16th FC breaks with
precedent, leaves out statewise GSDP projections.
· NSE targets September launch
for Rs 30,000-crore IPO after Sebi nod.
· TPG partners ICICI Bank, GIC
to acquire Aseem Infra Finance from NIIF.
· HDFC Bank gains 2% on Q1
business update; brokerages decode fine print.
5 Indian states cross World
Bank’s upper middle-income threshold; three others narrowly miss the mark: Five Indian states have
reached the World Bank’s upper-middle-income threshold based on per capita
income, even though India as a whole remains a lower-middle-income economy,
according to a Moneycontrol analysis of World Bank classifications and state
income data. The World Bank this week
upgraded Sri Lanka, Vietnam, and the Philippines to higher-income categories
following sustained improvements in income levels. India, however, remains
classified as a lower-middle-income country with an Atlas-method per capita
income of $2,760, only marginally above the lower-middle-income average of
$2,488 and well below the upper-middle-income threshold of $4,636. Delhi
leads the country with a per capita income of $6,217, followed by Karnataka
($5,579), Telangana ($5,407), Tamil Nadu ($5,329) and Gujarat ($4,734). At the
other end of the spectrum, Bihar remained India’s poorest major state with per
capita income of $984, followed by Uttar Pradesh ($1,403) and Jharkhand
($1,470). Bihar, Uttar Pradesh and Jharkhand earn less than Nepal and
sub-Saharan African countries.
(Moneycontrol)
Tamil Nadu clocks highest
growth rate in FY26 exports at 13.7%: Tamil Nadu has emerged as the
state with the highest growth rate in merchandise exports in FY26 as the
state’s strength in smartphone and other electronics goods exports has helped
accelerate its overall tally. Tamil Nadu’s total exports for FY26 stood at
$59.3 billion, up 13.7 per cent YoY despite a year of trade tensions and
geopolitical instability, as per data of Ministry of Commerce.
(Business Line)
Rupee hits three-week low
as OMC dollar demand, NDF maturities weigh: The rupee fell to a three-week
low on Monday as persistent dollar buying by oil marketing companies (OMCs),
demand linked to maturing non-deliverable forward (NDF) contracts, and a rise
in the dollar index outweighed support from lower crude oil prices, dealers
said. The Indian unit depreciated in five of the last six trading sessions. The
domestic currency settled at 95.40 per dollar against the previous close of
95.22 per dollar, the lowest level since June 11 this year, after touching an
intraday low of 95.48 per dollar. The dollar index strengthened to around 101,
while most Asian currencies also traded lower.
(Business Standard)
Gold Monetisation Scheme
reboot: Winning household trust remains the real challenge: Since its launch in 2015, the
Gold Monetisation Scheme mobilised around 39 tonnes of gold by November 2025,
according to official data, negligible compared to India’s estimated
25,000–30,000 tonnes of household holdings. The Indian government's latest
attempt to revive the Gold Monetisation Scheme (GMS) is built around a simple
premise: make it easier for households to deposit gold. But sources acknowledge
that the scheme's biggest hurdle has never been convenience. it has been trust. The
Centre is expected to unveil a revamped Gold Monetisation Scheme, allowing
jewellers to act as collection partners for the first time.
(Moneycontrol)
Private insurers’
commission payouts on the rise, mis-selling risk grows: RBI: The commissions being paid by
the private insurers in the life and general insurance sector have shown a
sharp rise and pose an increasing risk of mis-selling in insurance, according
to RBI. While the public insurers had
shown restraint in hiking the commissions from time to time, private insurers
were ‘aggressive’ in offering hikes and a ‘distinct divergence’ in cost
structure is evident between public and private insurers, the RBI said in its
latest Financial Stability Report (FSR). The private life insurers had
registered commission ratio surge of almost two times in 2025-26 from 2021-22,
alongside a stable operating expense ratio.
(Business Line)
Gold overtakes vehicle
loans as top securitised asset class in Q1FY'27: CRISIL: Gold loans emerged as the largest
securitised asset class in the April-June quarter of the current fiscal,
overtaking vehicle loans in the country's securitisation market, a report said
on Monday. The report said more than 98
per cent of the issuances during the quarter were originated by NBFCs, unlike
previous peak periods when banks had also contributed significantly. Gold
loans accounted for around 31 per cent of the overall securitisation volume in
the first quarter, overtaking vehicle loans, whose share moderated to around 26
per cent because of fewer issuances by a large originator.
(Economic Times)
LIC highlights stronger
profitability, higher margins and digital push ahead of investor meetings: India's Life Insurance
Corporation (LIC) has reported robust financial performance, with net profit
soaring to $6.07 billion and margins improving significantly to 21.2%. The
state-owned giant continues its market dominance, holding a 56.7% share in new business
premiums. A strategic shift towards higher-margin non-participating products is
driving this growth, alongside a strong focus on digital transformation and
expanding its vast distribution network.
(Economic Times)
Indian banks slash
short-term debt sales on cheaper forex funding: Indian banks are significantly
reducing their reliance on short-term debt sales, known as certificates of
deposit (CDs). This shift is driven by the Reserve Bank of India's initiative
to attract foreign-currency deposits, offering a cheaper and more stable
funding alternative. Lenders anticipate this trend to continue, impacting CD
rates and strengthening their balance sheets with more durable capital.
(Economic Times)
Bank of Maharashtra reports
27% loan growth, 13% deposit growth: State-owned lender Bank of
Maharashtra posted 27 per cent year-on-year (YoY) growth in overall advances to
Rs 3.06 trillion, supported by 25 per cent growth in RAM (retail, agriculture
and MSME) loans to Rs 1.87 trillion. Deposits grew 13 per cent
year-on-year to Rs 3.44 trillion, while the share of low-cost current account
and savings account (CASA) deposits fell to 49 per cent from 50 per cent in the
same period last year, the bank said in a filing to the stock exchanges.
(Business Standard)
Govt to launch cooperative
life insurance company, expand Bharat Taxi to 500 cities: Amit Shah: Union Minister Amit Shah announced a new
cooperative life insurance company to bolster the sector's growth, marking the
Ministry of Cooperation's 5th Foundation Day. He highlighted the ministry's
role in revitalizing the cooperative movement. Initiatives like expanding
'Bharat Taxi' and establishing a Sahkari University were also discussed, aiming
for a developed and self-reliant India by 2047. Speaking at an event in New Delhi to mark the fifth
Foundation Day of the Ministry of Cooperation, Shah said the proposed life
insurance company would deepen the cooperative sector's presence in insurance
and create new growth opportunities.
(Economic Times)
Reliance Industries gets
Sebi warning over employee trades during UPSI period: Sebi issued an administrative warning to
Reliance Industries after finding two employees and a relative traded while
possessing unpublished price-sensitive information. The regulator flagged
compliance lapses, but imposed no financial or operational restrictions, with
Reliance promising corrective measures to strengthen monitoring.
(Economic Times)
Bhubaneswar to
get two more data centres with over Rs.1K cr investment: With the high-security data centre of RBI
nearing completion on the outskirts of Bhubaneswar, the Odisha capital is
poised for another major leap in digital infrastructure, as two more data
centres are slated to come up at a combined investment of over Rs.1,000 crore. Sources
said, Adani Group has proposed to set up an advanced data centre with an
investment of Rs.800 crore, while the Odisha government has decided to
establish another data centre at a cost of Rs.266.48 crore. The twin projects
signal the state’s growing ambition to position Bhubaneswar as a key data
infrastructure destination in eastern India, leveraging its improving digital
connectivity, reliable power availability, disaster-resilient geography.
(Business Standard)
Govt's collateral-free
export credit scheme finds limited takers: The government has seen
limited interest among eligible beneficiaries in collateral-free export credit
under the Export Promotion Mission (EPM), with only 140 exporters registering
for the scheme since its rollout in January. Under the scheme, micro and small
enterprises can avail export credit of up to Rs.10 crore with guarantee
coverage of 85 per cent, while medium enterprises are eligible for the same
loan amount with guarantee coverage of 65 per cent. CGTMSE, which manages the
intervention for the government, has facilitated the generation of 159 Udyam
Registration Numbers (UIN) in the last six months, the document showed. UIN is a 16-digit code mandatory for eligible
enterprises to secure collateral-free loans. Banks use the UIN to apply for CGTMSE
guarantee.
(Business Standard)
Atal Innovation Mission
Strengthens Eastern India Innovation Ecosystem at Regional AIM SUMVAAD-East
Chapter 2026: As
Eastern India continues to emerge as a vibrant hub for innovation and
entrepreneurship, Regional AIM SUMVAAD-East Chapter 2026, organised by Atal
Innovation Mission (AIM), NITI Aayog as part of its ongoing regional Sumvaad
series, brought together key stakeholders from government, industry, academia,
and the startup ecosystem to chart a collaborative roadmap for the region's
next phase of innovation-led growth. The conclave held at O-Hub, Bhubaneswar
also witnessed the launch of the AIM- Odisha Chapter- a collaborative platform
bringing together Atal Incubation Centres (AICs) and Atal Community Innovation
Centres (ACICs) across Odisha. The initiative is designed to strengthen
inter-incubator collaboration through shared access to programmes,
infrastructure, mentors, investors, strategic partners, and ecosystem
resources, creating greater opportunities for startups while further enriching
Odisha's innovation ecosystem.
(PiB)
PARETO EFFICIENCY
§
Pareto
efficiency, also known as Pareto optimality, describes a situation in which
resources are distributed in such a way that improving one person's well-being
would inevitably reduce someone else's.
§ Pareto efficiency implies that resources are
allocated in the most economically efficient manner, but does not imply
equality or fairness. An economy is said to be in a Pareto optimum state when
no economic changes can make one individual better off without making at least
one other individual worse off.
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 : 95.4346
INR
/ 1 GBP : 127.2630
INR
/ 1 EUR : 109.0130
INR
/100 JPY: 58.8400
EQUITY INDEX
Sensex:
78285.07 (+521.16)
NIFTY:
24430.35 (+159.50)
Bnk NIFTY: 58291.50 (+353.00)
Historical events: July 7 is a pivotal date in history, marked by the birth of Indian scholar and politician Syama Prasad Mookerjee in 1901 and the 1999 martyrdom of Captain Vikram Batra during the Kargil War. Globally, it is the day Joan of Arc's heresy conviction was overturned in 1456 and Sandra Day O'Connor was appointed to the U.S. Supreme Court in 1981.
****Have a nice
Day****
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