Issue: 1211
· Indian rupee is expected to
remain broadly stable near 95 per US dollar despite continued foreign fund
outflows, according to a Reuters poll.
· India is likely to issue its
new 10-year government bond at a coupon above 7% for the first time in two
years.
· RBI’s large-scale currency
market intervention has reportedly pushed its short-dollar forward position
above $100 billion.
· India and Vietnam elevated
bilateral ties and set a trade target of $25 billion by 2030.
· RBI continues to balance
inflation risks and growth concerns amid global geopolitical uncertainty.
India's growth to moderate
to 6.6% in FY27; reforms key to achieve Viksit Bharat goal: S&P: India's GDP growth is
projected to moderate to 6.6 percent in the current fiscal from the earlier
estimated 7.1 percent, and energy and food security reforms would be essential
to achieve the Viksit Bharat goal by 2047, S&P Global said on Wednesday. S&P
Global and Crisil's joint report, titled 'India Forward', said India is facing
external economic shock from energy supply disruptions, rising oil and gas
prices and currency volatility, and India should devise a comprehensive energy
storage policy to create strategic buffers.
(Moneycontrol)
S&P Global cuts India
FY27 growth outlook to 6.6%: India’s economic growth is
expected to moderate in 2026-27 amid the ongoing West Asia conflict, with GDP
projected at 6.6% compared with 7.1% projected earlier. Retail inflation is
projected to rise to an average of 5.1% from 2% in FY26, according to S&P Global’s
“India Forward” report. The report highlights that the conflict is exerting
broad-based pressure on key macroeconomic indicators, including growth,
inflation, current account balance and bond yields. Elevated crude oil
prices—expected to stabilise around $90-95 per barrel—are seen as a key
transmission channel affecting the economy.
(Financial Express)
Services sector growth
accelerates in April; e-commerce surge lifts PMI to 5-month high: India’s services activity
accelerated in April, recording the strongest expansion in five months, driven
by robust domestic demand, a surge in e-commerce, and greater reliance on local
suppliers amid global supply chain challenges caused by the conflict in Middle
East, S&P Global said on Wednesday. The HSBC India Services Purchasing
Managers’ Index (PMI) climbed to 58.8 in April from 57.5 in March. A PMI above
the 50-mark signals month-on-month growth in the sector. “Consumer Services led
April’s expansion in new orders and output, followed by Transport, Information
& Communication,” the report noted.
(Financial Express)
Review cyber risks in 2
months: RBI to banks: RBI has asked banks to conduct
an internal review of their cybersecurity preparedness and place a detailed assessment
before their respective boards within the next two months. The exercise is part
of an advisory issued by the central bank on April 27 directing lenders to
further strengthen their cyber defence frameworks amid rising digital and AI-linked
risks. The move comes at a time when concerns over vulnerabilities in financial
systems have intensified globally, particularly after reports surrounding
Anthropic’s advanced AI model, Mythos, and its potential ability to identify
weaknesses in software systems.
(Financial Express)
Paytm reports first full
year net profit at Rs 552 crore, revenue rises 22% to Rs 8,437 crore: One97 Communications, the
parent firm of Paytm, swung to a net profit of Rs 183 crore in the quarter
ended March 31, a stock filing said on May 6. The Noida-based payments firm
has reported its first annual net profit of Rs 552 crore, compared to a Rs 663
crore loss in the previous fiscal. The company had registered a net loss of Rs
545 crore in the corresponding period of the previous financial year. However,
Paytm’s net profit has fallen on a sequential basis as it had reported a net
profit of Rs 225 crore in the December quarter.
(Financial Express)
EAC-PM calls for changes in
priority sector lending to enhance efficiency; greater flexibility to banks: A working paper by the
Economic Advisory Council to the PM (EAC-PM) has proposed changes in the focus
of priority sector advances (PSAs), saying they are economically less efficient
when compared to public funds. This, it said, will give banks more flexibility
in allocating capital. A working paper by the
Economic Advisory Council to the PM (EAC-PM) has proposed changes in the focus
of priority sector advances (PSAs), saying they are economically less efficient
when compared to public funds. This, it said, will give banks more flexibility
in allocating capital.
(Economic Times)
Star Health to
launch affordable health insurance plans targeting tier 2, 3 markets: As healthcare expenses soar, Star Health
is bracing for premium increases in the next fiscal year. In a proactive move,
the insurer is rolling out a series of affordable health insurance options
tailored for smaller urban areas. These plans will incorporate a curated list
of hospitals to not only streamline costs but also enhance accessibility for
policyholders in these communities.
(Economic Times)
J&K Bank
posts highest ever annual profit of Rs Rs 2363 crore in FY26: Jammu and Kashmir Bank achieved its
highest-ever annual profit of Rs 2,326.47 crore for the financial year 2025-26.
This marks a significant year-on-year growth of over 13 percent. The bank also
reported a strong quarterly net profit of nearly Rs 800 crore. Despite
challenges, the bank demonstrated resilience and sustained improvement in asset
quality.
(Economic Times)
Andhra Pradesh’s SIPB
clears Rs.1.5 lakh crore investment for Reliance data centre: Reliance will set up a new data centre in
Visakhapatnam with an investment of Rs.1.08 lakh crore. A proposal in this
regard was approved by the Andhra Pradesh State Investment Promotion Board
(SIPB) chaired by Chief Minister N Chandrababu Naidu in Amaravati on Wednesday.
Reliance first announced its intention to invest in the state at the CII
Partnership Summit held last year. The
SIPB also approved other investment proposals including Adani Energy Hydro
Energy Pumped Storage Project (Rs.12,000 crore) and Motorcycle manufacturing
plant in Tirupati by Royal Enfield (Rs.2,500 crore).
(Business Line)
Air India cuts over 500
international flights: Air India has reduced more than 500 international
flights a month from its schedule this summer as rising jet fuel prices and
airspace restrictions weigh on the profitability of long-haul operations. According
to data from aviation analytics firm Official Airline Guide (OAG), the airline’s
international operations fell sharply year-on-year in April and May, with the
steepest reductions seen on routes to North America and parts of Europe. In
April, Air India operated 1,987 international flights, down from 2,549 a year
earlier, while May schedules show 2,072 flights compared with 2,588 in the same
month last year..
(Financial Express)
India’s FY26 exports hit
$863.11 billion after upward revision led by services surge: Overall exports from India in
the just concluded financial year 2025-26 climbed to $ 863.11 billion in
2025-26, up 4.59% from $ 825.26 in the previous year, Commerce Ministry data
showed. Earlier the FY 26 total exports were reported to be $ 860.09 billion as
the data for services exports for the month of March was not available. The
updation of services exports numbers by the Reserve Bank of India (RBI) has
resulted in the revision of the figures. “This marks the highest level of
overall exports so far, sustained by steady performance across sectors despite
ongoing global challenges. Moreover, the highest ever total exports were
recorded in each quarter of 2025-26,” the ministry officials said.
(Financial Express)
Cabinet approves Emergency
Credit Line Guarantee Scheme 5.0: In view of the financial
stress faced by airlines due to the sharp increase in ATF prices, compounded by
airspace closures and reduced operations, particularly on international routes,
leading to lower aircraft utilisation and liquidity constraints, the Union
Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the ECLGS
5.0 scheme to provide targeted credit support to Indian airlines. The scheme
aims to provide credit guarantee coverage of 100% for MSMEs and 90% for
non-MSMEs as well as airline sector, to Member Lending Institutions (MLIs) by
National Credit Guarantee Trustee Company Limited (NCGTC) for the amount in
default under the additional credit facility extended to the eligible borrowers
to tide over any short-term liquidity mismatches, against the backdrop of
ongoing West Asia situation. For the aviation sector, the scheme has
specifically earmarked Rs.5,000 crore for airlines. The scheme provides
structured financial relief with a maximum loan limit of Rs.1,000 crore per
borrower, and an additional Rs.500 crore subject to equivalent equity infusion
by the borrower. The loans will have a tenure of up to 7 years, including a
2-year moratorium on repayment, thereby easing short-term liquidity pressures.
(PiB)
Sebi asks
'significant indices' providers to register within six months: The Securities and Exchange Board of
India (Sebi) has directed index providers of ‘significant indices’ to register
with the market regulator within the next six months under the Index Provider
Regulations. However, index providers whose indices are notified by the Reserve
Bank of India (RBI) as ‘significant benchmarks’ or ‘authorised benchmarks’ are
exempt. As per the definition, benchmarks or indices will be considered
‘significant indices’ if the daily average cumulative assets under management
(AUM) tracking them across mutual fund schemes exceeds Rs.20,000 crore for each
of the previous six months ending June 30 and December 31 each year..
(Business Line)
Centre appoints Shashi Shekhar Vempati as new chairperson of
CBFC:
Shashi
Shekhar Vempati, former CEO of the Prasar Bharati, was on Wednesday appointed
as the chairperson of the Central Board of Film Certification (CBFC) by the
government. Official sources said that Vempati will succeed Prasoon Joshi, who
has been appointed as the chairman of the Prasar Bharati recently. An alumnus
of the IIT Bombay, Vempati is an author and also the co-founder of the AI4India
Org, which works towards democratising access to Artificial Intelligence
technology..
(Business Standard)
OUTPUT GAP
§ The
term output gap refers to the difference between the actual output of an
economy and the maximum potential output of an economy expressed as a
percentage of gross domestic product (GDP). A country's output gap may be
either positive or negative.
§ A
negative output gap suggests that actual economic output is below the economy's
full capacity for output while a positive output suggests an economy that is
outperforming expectations because its actual output is higher than the
economy's recognized maximum capacity output.
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 : 95.1643
INR
/ 1 GBP : 129.2744
INR
/ 1 EUR : 111.6474
INR
/100 JPY: 60.8400
EQUITY INDEX
Sensex:
77958.52 (+940.73)
NIFTY:
24330.95 (+298.15)
Bnk NIFTY: 55981.05 (+1434.00)
Rabindra Jayanti: May 7th is
primarily celebrated as Rabindra Jayanti (or Rabindranath Tagore Jayanti) in
India and Bangladesh to mark the birth anniversary of the Nobel laureate poet
and polymath. It is also widely observed as World Athletics Day, aimed at
promoting sports, fitness, and youth participation in athletics.
Historical
events: May 7th marks
significant milestones, most notably the birth of poet-philosopher Rabindranath
Tagore (1861), the first Asian Nobel laureate, and the 1945 unconditional
surrender of German forces, ending WWII in Europe. Other key events include the
1960 formation of India’s Border Roads Organisation (BRO), the 1907
introduction of electric trams in Mumbai, and the 1946 founding of Sony
Corporation in Japan.
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