Issue: 1239
· Citi leverages AI to
transform payments, boost efficiency and enhance cross-border transactions.
· India to operationalise US
trade deal only if tariff edge is secured.
· India records $7.1 bn current
account surplus in Q4 FY26.
· MSME delayed payment
complaints fall, disposal rate falls faster.
· Organic manure purchases by
farmers jumped 3.5 times this kharif season.
· Rupee defence lifts RBI's net
short dollar book past $110 billion mark.
India, US likely to
finalise trade deal after clarity on post-July tariffs: India and the United States
are likely to finalise the first tranche of the proposed bilateral trade deal
once there is clarity on the tariff rate that will apply to Indian exports
after July, a government source involved with the negotiations said. "The
current 10 percent tariff will lapse in July and only MFN tariffs can apply
after that unless the USTR finalises new tariffs under Section 301. Once we
have that tariff, we can finalise a trade deal with the US. But obviously the
rate has to be competitive with direct competitors," the source said. According
to the source, the tariff rate eventually imposed by the US under the Section
301 process would also be the rate applicable to India under the proposed trade
agreement.
(Moneycontrol)
India’s current account
surplus narrows to $7.1 billion in March quarter: India reported ?a surprise
current account surplus ?in the January-March quarter ?of fiscal ?2025/26 on the back of strong
earnings from the services ?sectorand an increase in worker remittances, the ?central
bank said ?on ?Monday. The current account ?surplus stood at $7.1 billion,
or 0.7% of GDP, in the ?final quarter ?of fiscal year 2025-26, compared with
$13.7 billion, or 1.4% of GDP, a year ?earlier. In the October-December
?period, India had reported a current account ?deficit of $13.2 billion or
1.3% of GDP. For the ?full financial year 2025-26, the current account deficit
stood at $25.2 billion or 0.6% of GDP. India’s balance of ?payments recorded a
surplus of $7.2 billion ?in the fourth quarter of the ?financial year. For the full
year, ?the balance of payments was in
?a deficit of $23.6 billion.
(Business Line)
India's bond inflows hit
one-year high after RBI's steps to support rupee: India’s index-eligible bonds
recorded their largest inflow in almost a year after authorities announced
measures aimed at boosting foreign purchases of the nation’s debt and
supporting the rupee. Global funds bought Rs.4,490 crore ($469 million) worth
of index-eligible bonds on Friday, the most since June 30, 2025, when the
government scrapped taxes on overseas investment in government securities and
added new long-tenor bonds to the fully accessible route, under which
securities are eligible for inclusion in global bond indexes.
(Business Standard)
SBI transfers Rs 8,813
crore dividend to government after record FY26 profit: State Bank of India (SBI) on
Monday presented a dividend cheque of Rs 8,813 crore for FY2025-26 to Union
Finance Minister Nirmala Sitharaman, reflecting the public sector lender's
strong financial performance during the year. The payout comes after SBI
reported robust earnings and business growth for FY26. Earlier, the bank's
Central Board declared a dividend of Rs 17.35 per equity share for the financial
year ended March 31, 2026. The Government of India is SBI's largest
shareholder, holding around 55 per cent stake in the bank. SBI
reported a net profit of Rs 80,032 crore for FY26, marking a year-on-year
growth of 12.88 per cent.
(Moneycontrol)
HDFC Bank’s legal review
report likely in a week: An independent legal review
commissioned by HDFC Bank following the abrupt resignation of former Chairman
Atanu Chakraborty is expected to be submitted in a week, according to sources
familiar with the matter. The report could remove a key uncertainty surrounding
the reappointment of Managing Director and Chief Executive Officer Sashidhar
Jagdishan whose second tenure ends in October. The findings, prepared by law
firms Trilegal and Wadia Ghandy & Co, along with an international law firm,
are expected to be submitted to the board after nearly three months of review
into concerns flagged by Chakraborty in his resignation letter. The report has
been delayed beyond the bank’s internal expectations, the sources said.
(Financial Express)
Central Bank of India
partners Dynacons for Rs 125.88 cr cloud contract; Order spans 5 years: IT service firm, Dynacons
Systems and Solutions has secured an order of over Rs 125 crore from the
Central Bank of India for a project aimed at the expansion of private cloud.
The order will also focus on building advanced AI infrastructure. The
project which is domestic in nature aims at building larger and more advanced
cloud and AI. It also includes the establishment of a containerization platform
and servers based on the NVIDIA H200 Blackwells GPU. The total order value
exclusive of GST stands at Rs 125.88 crore, and will be executed within a
period of five years.
(Financial Express)
India banks could raise
$35-$40 billion via RBI's foreign currency deposit scheme, PNB CEO Ashok
Chandra says: India's
Punjab National Bank expects the banking sector to raise $35 billion to $40
billion via foreign currency deposits under a scheme announced by the central
bank on Friday, a top executive told Reuters. The Reserve Bank of India will
bear the full hedging cost for three-year to five-year foreign currency non
resident (FCNR) deposits, it said on Friday, as part of a broader set of
measures to ?encourage dollar flows ?and ?stem the depreciation pressure
on the rupee.
(Economic Times)
Banks to be told to step up
FCNR (B) deposits: Banks will now encourage more
foreign currency deposits. The Reserve Bank of India will cover all hedging
costs for these deposits. This move aims to attract significant foreign
currency inflows. Industry estimates suggest up to $40 billion could be raised.
These measures will strengthen India's foreign exchange reserves. This will help
manage rupee depreciation pressures.
(Economic Times)
India's EV penetration
crosses 11% for first time as auto retail sales hit record in May: India's automobile retail sales grew 9.55 per
cent to a record 25,31,067 units in May, while EV penetration crossed 11 per
cent for the first time, as dealers saw a surge in enquiries for fuel-efficient
and green vehicles after last month's fuel price hikes amid the West Asia
crisis, Federation of Automobile Dealers Associations (FADA) said on Monday. The
cumulative automobile retail sales in India stood at 23,10,451 units in the
same month last year. A notable feature of the month was the consumer
response to May fuel-price revisions: dealers reported a visible rise in
enquiries for fuel-efficient and alternative-powertrain options, reflected in
the two-wheeler EV share climbing to 9.25 per cent from 6.11 per cent a year
ago," FADA stated.
(Business Line)
Adani Ports wins $70
million 10-year contract for Argentina’s first LNG export project: Adani Ports and Special Economic Zone (APSEZ)
has secured a 10-year marine services contract tied to Argentina’s first
liquefied natural gas export project, the company said on Monday, extending its
international marine operations to South America for the first time. The
contract was awarded to The Adani Harbour International FZCO, a step-down
subsidiary of APSEZ, in consortium with Argentina-based Meridian Group. It
follows a global competitive tender by Southern Energy S.A. (SESA), the project
developer.
(Financial Express)
Nvidia to
partner with LG on humanoid robots, next-gen data centres: Nvidia on Monday announced a series of
deals in South Korea with tech giants including SK Hynix and Naver, as it looks
to secure crucial memory chips to power its AI ambitions and entice new
customers. The agreements come during a high-profile trip by Nvidia CEO Jensen
Huang to South Korea that began on Friday and has seen him dine on grilled pork
belly and local spirit soju with the country's top corporate bosses, throw a
baseball pitch and meet with a well-known gamer. Nvidia and its partners, which
also included SK Telecom and conglomerate Doosan Group, did not disclose the
value of the deals.
(Business Standard)
Govt cuts subsidised LPG
refills under Ujjwala scheme to four per year: The government has reduced the
number of subsidised LPG refills from nine to four annually for beneficiaries
under the Pradhan Mantri Ujjwala Yojana (PMUY) as the international prices for LPG
continue to increase amid ongoing West Asia crisis. According to the oil ministry,
the cost of a domestic LPG cylinder has risen to over Rs 1,600 with state-run
oil marketing companies incurring under recovery of Rs 700 per cylinder. For
Ujjwala customers, the subsidy is capped at Rs 300 per cylinder for the first
four cylinders annually, Praveen Khanooja, additional secretary at the
petroleum ministry said on June 8. The official noted that even
after the Rs 29 hike in domestic LPG cylinder, consumers continue to get
indirect subsidies with subsidies amounting to Rs 700 per cylinder for
non-Ujjwala consumers and Rs 1,000 for Ujjwala beneficiaries.
(Moneycontrol)
Sebi, RBI jointly work on
corporate bond derivatives framework: The Securities and Exchange Board
of India (Sebi), in coordination with the Reserve Bank of India (RBI), is
working on introducing derivatives linked to corporate bond indices as part of
efforts to deepen the domestic debt market. “A working group is sorting out
operational details to introduce a market-making framework to improve liquidity
in the corporate bond market,” Sebi Chairman Tuhin Kanta Pandey said on Monday
at the ICICI Securities India Investor Conference. Pandey said the domestic
debt market is likely to attract higher capital inflows, aided by recent policy
measures including the exemption of capital gains tax for foreign portfolio
investors (FPIs) on government securities (G-Secs) and the removal of certain
investment restrictions in corporate debt.
(Financial Express)
RBI launches FCNR(B) swap
facility, allows banks flexibility on rates: RBI on Monday launched a US
dollar-rupee forex swap facility for fresh FCNR(B) deposits with maturities of
three to five years and said banks would be free to price such deposits
according to their internal policies, subject to existing regulatory ceilings. The
facility will be available to authorised dealer category-I banks for eligible
FCNR(B) deposits mobilised in any freely convertible currency, with swaps to be
undertaken in US dollars. According to a circular issued by the RBI, the swap
facility will be available for fresh FCNR(B) deposits mobilised in any freely
convertible currency, including deposits renewed upon maturity, for a minimum
tenor of three years and a maximum tenor of five years. However, the swap
facility with the RBI will be available only in US dollars.
(Business Standard)
INDIAN CURRENCY (Historical facts)
§ Emperor
Sher Shah Suri introduces a 178-grain silver coin called the Rupiya, which
remains the standard currency.
§ 1770
CE: The first paper currency is issued by private entities like the Bank of
Hindostan.
§ 1935:
The Reserve Bank of India (RBI) is formally established, taking over the
centralized regulation and issuance of Indian banknotes.
§ 1957:
The Rupee is no longer divided into 16 Annas or 64 Pice, but into 100 Paise.
§ 2010:
The official symbol for the Indian Rupee (?) is adopted, blending the
Devanagari script with the Roman "R".
§ 2016:
The government demonetizes ?500 and ?1000 notes to combat counterfeiting,
simultaneously launching redesigned notes under the Mahatma Gandhi New Series.
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 : 95.6198
INR
/ 1 GBP : 127.4102
INR
/ 1 EUR : 110.1444
INR
/100 JPY: 59.6600
EQUITY INDEX
Sensex:
73524.26 (-719.08)
NIFTY:
23123.00 (-243.70)
Bnk NIFTY: 54063.75 (-432.50)
Historical
events: June 9 is a
pivotal date in history, marked by major political transitions and cultural
milestones. Notable events include tribal leader Birsa Munda passing away in
1900, Lal Bahadur Shastri becoming India's second Prime Minister in 1964, and
Yugoslavia and NATO signing a landmark peace treaty in 1999.
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