Issue: 1212
· Reuters poll showed currency
analysts expect the rupee to remain broadly stable around 95 per US dollar
despite ongoing volatility.
· SEBI said banking and
insurance regulators are reluctant to allow banks and insurers to invest in
commodity derivatives markets.
· Benchmark bond yields
remained elevated amid inflation and currency concerns linked to higher crude
oil prices.
· RBI Governor stated India’s
forex reserves remain sufficient to cover nearly 11 months of imports.
· SEBI indicated it may soon
issue advisory guidelines on emerging AI-related cyber and market risks for
intermediaries.
· Currency in circulation in
India touched a record Rs.42.3 lakh crore, the fastest rise since the
post-demonetisation period.
Rupee gains sharply to end
at 94.25/$ as oil slides, NDF dollar selling gathers pace: Rupee turned sharply higher on
Thursday afternoon, boosted ?by a slump in crude oil prices, with stop-losses
on short ?rupee wagers and dollar sales in the non-deliverable forward ?market
also lifting the currency, traders said. Brent crude ?fell below $100 per barrel,
down nearly 3% and reversing course after touching a peak of $102.5 on the day,
as the United States ?and Iran edge toward a temporary agreement to halt their
war, sources and officials said. The retreat ?in oil prices
lifted Asian currencies broadly, including the ?rupee, ?which strengthened by as much
as 0.5% before ending ?the session at 94.25, sharply
stronger than its intra-day low of 94.9025.
(Business Line)
NSO resets GSVA base year
to 2022-23, seeks all-state and UTs adoption: The National Statistics Office
(NSO) on Thursday notified uniform guidelines for compiling gross state value
added (GSVA), with 2022–23 as the new base year, in a move aimed at making
state-level economic estimates more accurate, comparable, and better aligned
with the current structure of the economy. At present, 34 states and Union
Territories (UTs) compile gross state domestic product (GSDP) estimates using
2011–12 as the base year, except Lakshadweep and Dadra and Nagar Haveli and
Daman and Diu. Under the new series with 2022–23 as the base year, the
statistics ministry is seeking to onboard all states and UTs. Among the major
changes, the new series moves away from single-deflation methods in several
areas and recommends revaluation, double deflation, and volume extrapolation
for constant-price estimates. The document says this will improve the
measurement of real output by reducing distortions caused by mismatched price
movements in inputs and outputs. The revised framework also standardises
treatment across sectors such as agriculture, mining, manufacturing,
construction, electricity, transport, financial services, and public
administration.
(Business Standard)
Trump gives EU until July 4
to ratify trade deal or face higher tariffs: US President Donald Trump has
urged the European Union to approve its trade agreement with the United States
by July 4, warning that failure to do so could trigger significantly higher
tariffs on EU exports. In a post on his Truth Social
platform, Trump said he conveyed the ultimatum during a call with European
Commission President Ursula von der Leyen, describing the conversation as a
“great call.”
(Moneycontrol)
SBI sees Rs 70,000–80,000
crore eligible under ECLGS 5.0: State Bank of India has an
eligible credit facility of Rs 70,000-80,000 crore under the emergency credit
guarantee scheme 5.0 for the micro, small and medium enterprises, Chairman CS
Setty said. “Eligible customer base will (have) around 70,000-80,000 crore
worth credit facility is available to our customers under the ECLGS scheme,”
Setty said. “But how many of them will really utilise, we don’t know,” he
added. According to the investor presentation, the public sector bank has an
SME book of Rs 6 lakh crore as on December 31, which forms 15.05% of the
domestic advances. In terms of asset quality, the SME book saw non-performing
assets worth Rs 18,077 crore, forming 3.01% of the total NPA.
(Financial Express)
Muthoot Microfin plans to
cut risk by bringing down group micro loan share to 60% by 2030: Muthoot Microfin is shifting
focus from unsecured loans to business diversification. The company aims to
reduce its microfinance asset share to 60% by 2023. It plans to enter
two-wheeler financing this festive season. Muthoot Microfin targets growing its
assets under management to Rs 30000 crore by 2030. This strategy aims to
mitigate risks in the microfinance sector.
(Economic Times)
Axis Bank raises $500 million
in offshore loan from MUFG: Axis Bank, India's
third-largest private lender, has secured a $500 million offshore loan from
Mitsubishi UFJ Financial Group. This three-year facility will support the
bank's lending and general business needs. The loan comes as Indian banks face
challenges with loan growth outpacing deposit growth. Axis Bank's loans grew
19% while deposits rose 14% in the year ended March.
(Economic Times)
RBI clears Kotak
Bank to raise stake up to 9.99% in AU Small Finance, Federal Bank: The Reserve Bank of India (RBI) has
cleared Kotak Mahindra Bank’s proposal to raise its stake in both AU Small
Finance Bank and Federal Bank, allowing it to hold up to 9.99 per cent in each
lender. The approval, confirmed through separate
regulatory filings by AU Small Finance Bank and Federal Bank on Thursday,
follows an RBI communication dated May 6.
(Economic Times)
Indian banks well-placed
to transition to expected credit loss provisioning, Fitch says: Indian banks are sufficiently capitalised
to transition to the expected credit loss (ECL) framework, which has now been
finalised by ?the ?Reserve Bank ?of India, Fitch Ratings said on Thursday. The
new framework will come ?into force starting April 1, 2027. The
ratings ?agency expects the ?banking system's ?average common equity
?tier ?1 (CET1) to decrease ?by 30 basis points in the ?financial year
2027-28. The ?decline will gradually extend to about 80 basis points by 2022-23
if banks use the RBI's ?four-year transition period, Fitch says.
(Economic Times)
Midcap index scales
all-time high despite flat close for benchmarks: The Nifty Midcap 100 on Thursday rose 1.1 per
cent to hit an all-time high of 62,003, even as benchmark indices Sensex and
Nifty ended the session flat. The Nifty Midcap 100 has been rising continuously
for the last four sessions. The Sensex ended the session at 77,845, down 114
points, or 0.2 per cent. The Nifty, meanwhile, ended at 24,327, down 4 points,
or 0.02 per cent. In the ongoing financial year 2026-27 (FY27), the Nifty
Midcap 100 has gained 17.8 per cent after rising a mere 1.89 per cent in FY26.
Though the midcap index hit an all-time high, the Nifty Smallcap 100 remains
4.9 per cent away from its record high, while the Nifty is 7.6 per cent below
its all-time high.
(Business Standard)
Trai proposes penalties for
telecom firms over complaint redressal lapses: India’s telecom regulator Trai wants mobile
phone users to have a more efficient and consumer-centric process of filing and
tracking complaints. On Thursday, Telecom Regulatory Authority of India (Trai)
issued a draft amendment to the consumer complaint redressal rules, that were
last amended nearly a decade ago. It has proposed penalties going up to Rs.50
lakh per quarter per service area on telecom service providers (telcos) for
failure to comply with the amended rules or if deficiencies in dealing with complaints
or appeals are found during reviews or audits. Trai would levy penalties of Rs.1,000
per improper dismissal of a complaint and Rs.5,000 per appeal on service
providers, which would be capped at Rs.50 lakh per quarter per service area or
circle.
(Business Standard)
Department of Financial
Services’ Insurance Division Tops Grievance Redressal Assessment and Index
(GRAI) Rankings in Group A Category for March 2026: The Department of Financial
Services (Banking and Insurance Division) has been receiving more than 2.50
lakh grievances in a financial year. It has been consistently figuring in the
top 10 Grievance Redressal Assessment and Index (GRAI) rankings amongst various
Ministries/Departments since November 2025. For the month of March 2026, the
Insurance division has topped the Group A Category (registering more than or
equal to 500 grievances) in the GRAI ranking, released by Department of
Administrative Reforms and Public Grievance. On the other hand, Banking
Division has retained its 5th position for second month in a row. The GRAI
framework, developed by the Department of Administrative Reforms and Public
Grievances (DARPG), evaluates ministries and departments on the effectiveness
and timeliness of grievance resolution through the Centralized Public Grievance
Redress and Monitoring System (CPGRAMS)..
(PiB)
Union Health
Ministry Launches JANANI Platform to Strengthen Maternal and Child Healthcare: Ministry of Health and Family Welfare
launched JANANI (Journey of Antenatal, Natal and Neonatal Integrated Care) at
the recently concluded National Summit on Innovation and Inclusivity – Best
Practices Shaping India’s Health Future. JANANI is a service-oriented digital
platform designed to comprehensively monitor and maintain digital health
records of women during their reproductive age. Developed as an upgraded
version of the existing RCH portal, the platform creates a longitudinal health
record by capturing key service delivery events across the continuum of care. The
platform aims to ensure seamless tracking of maternal and child health
services, covering antenatal care, delivery preparedness, delivery, postnatal
care, newborn care, home-based newborn and young child care, and family
planning.
(PiB)
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 : 94.7759
INR
/ 1 GBP : 128.8529
INR
/ 1 EUR : 111.3522
INR
/100 JPY: 60.6100
EQUITY INDEX
Sensex:
77844.52 (-114.00)
NIFTY:
24326.65 (-4.30)
Bnk NIFTY: 56047.40 (+66.35)
World Red Cross
and Red Crescent Day: May 8 is
primarily celebrated worldwide as World Red Cross and Red Crescent Day. This
date marks the anniversary of the birth of Henry Dunant, the founder of the
International Committee of the Red Cross (ICRC) and the first recipient of the
Nobel Peace Prize, celebrating humanitarian action and volunteering.
Historical
events: May 8th is historically
significant for the end of WWII in Europe (VE Day), the founding of the Red
Cross, and Mahatma Gandhi beginning a 21-day fast in 1933. Globally, it marks
the birth of Coca-Cola (1886) and Red Cross Day, while in India, it highlights
anti-untouchability campaigns and Rabindranath Tagore's birth anniversary.
****Have a nice Day****
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