Issue: 1265
· RBI approves Mahesh M Pai as MD
at South Indian Bank.
· FCNR-B flows taper as higher
costs trip math for double-digit returns.
· Axis Bank loses three senior
executives amid leadership reshuffle.
· India may allow agentic
AI-led UPI transactions under new NPCI protocol.
· RBI reiterates call for
crypto curbs; tax department warns of evasion risks.
· UST ties up with Anthropic to
deploy Claude for clients across sectors.
IMF cuts India FY27 growth
forecast to 6.4%; sees rebound to 6.7% in FY28: India’s economy is expected to
grow slower than earlier anticipated in FY27, with the International Monetary
Fund cutting its growth forecast to 6.4 percent from 6.5 percent projected in
April, as the West Asia conflict weighs on global activity and keeps energy
prices elevated. “India remains among the
fastest-growing major economies, with growth projected at 6.4 percent,
supported by strong momentum in private consumption and services activity,” the
IMF said in its July World Economic Outlook update. The Fund, however, expects
growth to recover in FY28. It raised India’s FY28 growth projection to 6.7
percent from 6.5 percent estimated earlier, suggesting that the economy could
regain some momentum once the external shock from higher energy prices begins
to ease. Global growth is projected at
3 percent in 2026 and 3.4 percent in 2027.
(Moneycontrol)
Sensex logs biggest
single-day fall in four months as Iran tensions trigger late sell-off: The Indian equities witnessed
their sharpest single-day decline in four months on Wednesday after a sharp
deterioration in global risk sentiment triggered by US President Donald Trump’s
remarks suggesting the ceasefire with Iran had effectively collapsed, raising
fears of a fresh escalation in West Asia. The BSE Sensex index plunged 1,677
points, or 2.15 per cent, to close at 76,504, while the broader Nifty 50 index
fell 517 points, or 2.12 per cent, to end at 23,882. The last steeper decline
was recorded on March 30, when the benchmark index had dropped 2.22 per cent.
(Business Line)
Rupee hits one-month low as
oil soars after Trump says Iran deal is 'over': The Indian rupee dropped to
its weakest level in nearly ?a month on Wednesday after U.S. President Donald Trump
said the interim accord with Iran to end the war was "over," sending
oil prices soaring and hurting Asian currencies. Traders said the Reserve Bank
of India had likely intervened in the foreign exchange market to limit the
rupee's fall ?via dollar sales from state-run banks. The currency closed ?at
95.5550 per dollar, down 0.6% ?on the day. It had touched a low of 95.60, its
weakest since ?June 11.
(Business Standard)
State Bank of India draws
over $1.5 billion in offshore deposits: State Bank of India has so far
raised more than $1.5 billion from foreign-currency deposits under a special
program launched last month for overseas citizens, people familiar with the
matter said. The country’s largest lender
will also provide leverage of nine times to depositors, the people said, asking
not to be identified as the details are private. The facility will allow
customers to scale up the amount of money they would deposit under the plan. In
June, the Reserve Bank of India offered full hedging-cost support for banks raising
three- to five-year foreign currency deposits, as part of broader efforts to
shore up reserves amid the US-Iran war. The move gives lenders more room to
offer attractive rates on such deposits.
(Moneycontrol)
Mutual fund assets surpass
FPIs for the first time, driven by strong SIP inflows: The assets under control (AUC)
of mutual funds across debt, equity, and ETFs have surpassed those of Foreign
Portfolio Investors (FPIs) for the first time ever, driven by steady inflows of
over Rs.30,000 crore into mutual funds through SIPs. The AUC of mutual funds
stood at Rs.76.41 lakh crore, while that of FPIs was marginally lower at Rs.76.22
lakh crore, according to NSDL data. Despite foreign investors selling heavily
in the equity markets, FPI holdings remained higher at Rs.68.65 lakh crore,
while mutual funds’ holdings stood at Rs.54.50 lakh crore.
(Business Line)
Credit cards lose sheen:
Cibil: Credit
cards are losing ground to personal loans and other consumption-credit products
as banks are no longer playing on the volumes and are preferring customers with
higher balances, according to a new research report by TransUnion CIBIL, Beyond
the Swipe. The share of credit cards in the unsecured loan market has fallen to
38% in 2026 from 56% in 2016. The space is now taken over by small-ticket
personal loans of Rs 50,000 or less.
(Financial Express)
Aviva set to become first
foreign insurer to fully own India life business: UK insurer Aviva Plc is set to
fully own its Indian life insurance venture. This move follows New Delhi's
recent policy allowing total foreign ownership in the sector. Aviva will buy
the remaining 26% stake from its partner, Dabur Invest Corp. Full ownership
offers greater strategic flexibility and faster decision-making for business
expansion. The transaction marks the first deal under the government's liberalized
foreign ownership policy.
(Economic Times)
Private banks may lead PSU
peers in Q1 PAT show amid macro pressures: Private banks are expected to
show stronger profit growth than public sector banks this quarter. Analysts
predict private lenders' profits will climb ten percent year-on-year. Balance
sheet growth also favors private banks, with higher deposit expansion. However,
public sector banks led in loan book expansion during the June quarter.
Investor focus will remain on individual bank performance and execution.
(Economic Times)
SBI Mutual Fund to launch
IPO on July 14: State Bank of India has
announced that the initial public offering (IPO) of its subsidiary SBI Mutual
Fund will open for retail investors’ subscription on July 14 and close on July
16. Allotment to investors after bidding is expected to be made on July 18. The
anchor investor bidding will open on Monday (July 13). The fund house will
announce the price band on Thursday (July 9).
(Business Line)
Private life insurers outpace LIC in new business premium growth: Life insurers saw a 16.6% rise in new business premium during the April-June quarter. Private sector firms expanded faster than LIC, driven by regular premium products. Regular premium collections grew nearly twenty percent year-on-year, while single premium business increased. SBI Life Insurance emerged as the fastest-growing player among listed companies. Private insurers continue gaining market share while LIC retains its dominant position.
(Economic Times)
India considers
Rs 40,000 crore undersea power cable to UAE: Power minister: India is considering the construction of
a 1,600-km undersea power transmission cable between the UAE and India at an
estimated cost of around Rs 40,000 crore, Power Minister Manohar Lal Khattar
said on Wednesday. Speaking at India Energy Storage Week, he said the proposed
transmission link is part of India's broader vision of "One Sun, One
World, One Grid". Lal added that India is also pursuing similar power
connectivity projects with Sri Lanka and Singapore, with the objective of
creating an east-to-west electricity grid that could eventually facilitate
power trade with Europe. "We are going to Sri Lanka and Singapore, and we
are moving ahead for supply even beyond Singapore through maritime
routes," he said.
(Business Standard)
SEBI replaces
dollar-denominated registration fee to rupee for FPIs: The Securities and Exchange
Board of India (SEBI) has amended it's rules replacing the existing US
dollar-denominated registration fee for Foreign Portfolio Investors (FPIs) with
a rupee-based fee structure. As per the notification, the regulator has revised
the registration fee for Category-I FPIs from $2,500 to Rs.2.3 lakh. Similarly,
registration fee for FPIs belonging to Category II has been revised from $250
to Rs.23,000. The regulator has also revised the application fee for seeking
general relaxations or exemptions from strict enforcement of regulations from
$1,000 to Rs.90,000 in eligible foreign exchange equivalent.
(Business Line)
SEBI mulls easing FPI
disclosure norms with higher exemption cap: SEBI is examining a proposal
to raise the existing 3 per cent cap on composite holdings of foreign portfolio
investors (FPIs) that are eligible for exemption from making additional
disclosures under the regulator's beneficial ownership framework, according to
people familiar with the matter. The proposal is aimed at providing further
ease of doing business for global investors by relaxing one of the conditions
for availing exemption from the additional disclosure requirements introduced
in August 2023, the people said. FPIs with over Rs.50,000 crore
of equity assets under management (AUM) in Indian markets, or those with more
than 50 per cent of their Indian equity AUM concentrated in a single corporate
group, are required to furnish additional granular disclosures.
(Business Line)
EPFO shifts to national
database; 8.25% PF interest to reflect online by July 15: With the Employees’ Provident
Fund Organisation (EPFO) digitising entire scattered country-wide provident
fund data into a single national database, members will now be able to verify
their 8.25 per cent interest credit for FY26 online by July 15, Labour Minister
Mansukh Mandaviya said on Wednesday. Migrating to a national database, which
happened over the last few days, to make PF access easier is a key step toward
broader reform, allowing users to withdraw up to 75 per cent of their
accumulated PF funds directly through a UPI interface, the Minister stated. Annual
interest for FY26 at the rate of 8.25 per cent to 34 crore member accounts,
estimated at over Rs 1.44 lakh crore, will be auto-processed.
(Business Line)
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 : 95.2236
INR
/ 1 GBP : 127.2524
INR
/ 1 EUR : 108.7660
INR
/100 JPY: 58.7300
EQUITY INDEX
Sensex:
76503.60 (-1677.12)
NIFTY:
23882.05 (-516.65)
Bnk NIFTY: 56742.60 (-1458.10)
Historical events: July 9th marks
several monumental milestones in Indian and world history. In India, it is
recognized for the establishment of the Bombay Stock Exchange in 1875 and the
publication of the nation's First Five Year Plan in 1951. Globally, it
witnessed the birth of the first Wimbledon Championship in 1877 and the formal
independence of Argentina from Spain in 1816, alongside the creation of the
world's youngest sovereign state, South Sudan, in 2011.
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