Issue: 1213
· Bank credit growth rises to
nearly 16% year-on-year, while deposit growth remains lower at 12.3%, according
to RBI data.
· RBI eases capital adequacy
norms, allows banks to include quarterly profits in CET1 capital calculations
with simplified conditions.
· RBI successfully completes
auction of new 10-year government security worth Rs.34,000 crore at 6.94%
cut-off yield.
· India’s credit card base
crosses 119 million cards; PSU banks gain share in transaction spends.
US court ruling on Trump
tariffs adds uncertainty to India-US trade talks: The United States Court of
International Trade on Wednesday struck down President Donald Trump’s 10 per
cent global tariffs imposed under Section 122 of the Trade Act of 1974, less
than 50 days after they were introduced on February 20. This may create further
uncertainty around US tariffs, thus affecting the conclusion of the Bilateral
Trade Agreement (BTA) between India and the US. After the Trump administration
lost the reciprocal tariff battle in the Supreme Court, it turned to Section
122, which allows the president to impose import tariffs of up to 15 per cent
for a maximum of 150 days without congressional approval to deal with serious
balance-of-payments difficulties. However, on Wednesday, the divided
three-judge panel, in a 2-1 decision, granted a request by a group of small
businesses and two dozen mostly Democrat-led states to vacate the tariffs.
(Business Standard)
India's forex reserves fall
$7.79 billion amid decline in gold reserves: India’s foreign exchange
reserves decreased by $7.79 billion to $690 billion during the week ended May 1
on the back of a fall in gold reserves, the latest data from the Reserve Bank
of India showed. Gold reserves fell by $5.02 billion during the reported week.
Gold prices fell by 2 per cent to $4,614/oz during the reported week. Foreign
currency assets decreased by $2.8 billion during the same period. The Special
Drawing Rights were up by $15 million at $18.8 billion during the reported
week. India’s reserve position with the International Monetary Fund was also up
by $8 million to $4.86 billion.
(Business Standard)
Economist Ashok Lahiri
takes charge as NITI Aayog vice-chairperson: Economist and former Bharatiya
Janata Party (BJP) member of the legislative assembly Ashok Lahiri on Friday
took charge as the vice-chairperson of India’s apex policy think tank NITI
Aayog, taking over from incumbent Suman Bery. Prime Minister Narendra Modi is
the chairperson of NITI Aayog.
(Business Standard)
Bank of Baroda Q4 Results:
PAT rises 11% YoY to Rs 5,616 crore; lender declares Rs 8.5 dividend: Public sector lender Bank of
Baroda on Friday, 8 May, reported an 11.25% year-on-year (YoY) rise in its
standalone net profit at Rs 5,615.68 crore for the January-March quarter of the
financial year 2026 (Q4FY26). In the same quarter of the previous financial
year, BoB's profit stood at Rs 5,047.73 crore. Sequentially, or on a
quarter-on-quarter basis, BoB's profit rose 11% from Rs 5,054.63 crore in
Q3FY26. For the entire financial year 2026, the PSU bank’s standalone profit
increased 2.25% to Rs 20,021.06 crore from Rs 19,581.15 crore in FY25. The
Bank reported a decline in NPA for the March quarter. Gross NPA eased to 1.89%
from 2.26% YoY, while net NPA dropped to 0.45% from 0.58% YoY.
(Moneycontrol)
SBI Q4FY26: Net profit
rises 6%, declares Rs 17.35 dividend; full-year profit tops Rs 80,000 crore: State Bank of India reported a
6 percent increase in standalone net profit at Rs 19,684 crore for the fourth
quarter ended March 2026. The country’s biggest lender had earned a profit of
Rs 18,643 crore in the January-March period of the 2024-25 fiscal year. SBI’s
Net Interest Income (NII) for FY26 increased by 4.08% YoY. The bank’s NII grew
to Rs 44,380 crore in Q4 FY26, from Rs 42,618 crore. However, Q4 total income
declined to Rs 1,40,412 crore in the March quarter from Rs 1,43,876 crore in
the same period a year ago, SBI said in a regulatory filing. During the
quarter, the bank earned an interest income of Rs 1,23,098 crore as against Rs
1,19,666 crore a year ago. For the entire financial year 2025-26, the bank
reported a 13% increase in profit on a standalone basis at Rs 80,032 crore as
against Rs 70,901 crore in the previous year. SBI saw an improvement in
asset quality, with gross NPAs declining to 1.49 percent of the total advances
in the fourth quarter from 1.82 percent as at March-end 2025. Similarly, net
NPAs eased to 0.39 percent from 0.47 percent.
(Financial Express)
RBI imposes penalties on YES
Bank, Hinduja Housing Finance: A penalty of Rs 31.80 lakh has
been imposed on YES Bank for non-compliance with certain provisions on 'Know
Your Customer', RBI said on Friday. The RBI said the bank failed
to put in place a system of using KYC Identifier assigned by Central KYC
Records Registry for the purpose of establishing an account-based relationship
with customers. In another statement, it said
a penalty of Rs 1.8 lakh has been imposed on Hinduja Housing Finance Ltd for
non-compliance with certain directions issued by RBI, relating to 'governance'.
(Economic Times)
SBI to seek
board approval for funds; Axis Bank raises $500 mn: State Bank of India’s board will meet on
May 12 to consider raising up to $2 billion through long-term foreign currency
bonds in FY27 via public offers or private placements. Meanwhile, Axis Bank has
secured a $500 million three-year loan from Japan’s MUFG at SOFR plus 85 basis
points, with the funds aimed at lending and general business needs.
(Economic Times)
Bank of India Q4
net profit rises 15% on higher interest income growth: State-owned Bank of India on Friday
reported a 15 per cent YoY rise in net profit to Rs 3,016 crore for the fourth
quarter ended March 2026, aided by higher interest income and improved asset
quality. Net interest income (NII) rose 11 per cent YoY to Rs 6,730 crore in
the January-March quarter from Rs 6,063 crore a year earlier. The
Gross NPA ratio improved to 1.98 per cent from 3.27 per cent a year ago, while
the net NPA ratio declined to 0.56 per cent from 0.82 per cent.
(Business Standard)
ATM
cassette-swap rollout delayed again as banks go big on cash recyclers: The proposed shift to cassette-swap mode
for loading cash into ATMs (automated teller machines) is slowing down due to banks
deploying more cash recycling machines (CRMs) in which a customer can both
withdraw and deposit cash. Cassette-swap is a mechanism where cash is loaded
into ATM through lockable trays instead of the earlier practice of personnel
loading cash into ATMs. These cassettes have smart chips that store information
on the number of notes and denominations, as well as security codes. Industry
sources said that nearly 30 per cent of the current installed 265,00 ATMs are
now recyclers, while as many as 80 per cent of new ATMs are also recyclers. In
2024, the Reserve Bank of India (RBI) had said that CRMs need not adhere to the
cassette swap method. Banks' onsite ATMs were also put outside the purview of
cassettes as cash can be loaded from within the branch.
(Business Standard)
Non-life insurance premiums
rise 8% in April on segment-wide growth: Gross direct premium underwritten by non-life
insurers rose 8.28 per cent year-on-year (YoY) to Rs 36,417.67 crore in April
2026, led by growth across segments. According to data from the General
Insurance Council, general insurers reported a 5.70 per cent YoY rise in
premium to Rs 32,349.2 crore. Standalone health insurance companies recorded a
34.53 per cent YoY increase in premium to Rs 3,945.52 crore, while specialised
insurers saw premium growth of 31.58 per cent to Rs 122.95 crore during the
month.The country’s largest general insurer, New India Assurance, reported a
0.97 per cent YoY increase in premiums to Rs 6,084.96 crore.
(Business Standard)
Sensex slumps 516 pts;
Nifty ends at 24,176 on renewed US-Iran tension: It was a choppy week for the benchmark
indices, as prices lacked strong traction on either side and largely remained
range-bound throughout the week. Eventually, Nifty ended the week with marginal
gains of around 0.74 per cent, closing at 24,176. Nifty has now gained for the
second consecutive week; however, technically, not much has changed, as prices
over the past two weeks have continued to gyrate within a narrow range, forming
a series of small-bodied candles on the daily chart.
(Business Standard)
India advances BRICS MSME
cooperation under its 2026 chairship: As Chair of BRICS in 2026,
India is spearheading a renewed agenda for MSME cooperation under the BRICS
Partnership on the New Industrial Revolution (PartNIR). During India’s
Chairship, the Ministry of MSME is mandated to convene three SME Working Group
Meetings and the inaugural BRICS MSME Forum. The 1st SME Working Group
Meeting (webinar) was successfully convened on 24th April 2026 with a
specialized focus on “Access to Finance for MSMEs”. The deliberations among
BRICS Member Countries centered on the themes of “Bridging the MSME Credit Gap
through Financial Inclusion, Literacy and Credit Readiness” and “Fintech-Driven
Ecosystems: Expanding SME Credit and Seamless Global Trade Payments”.
(PiB)
Jan Suraksha
revamp: PMJJBY, PMSBY, APY may see increase in sum insured: The Times of India reported on May 8 that
the government is studying the financial implications of increasing the
insurance cover under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and
the Pradhan Mantri Suraksha Bima Yojana (PMSBY) to as much as Rs 5 lakh from
the current Rs 2 lakh. The move comes as policymakers seek to
strengthen the safety net for millions of beneficiaries amid rising healthcare costs,
inflation and increasing awareness about financial protection.
(Economic Times)
Sebi allows
30-day lag for use of market data in educational content: Sebi on Friday revised rules to allow a
uniform time lag of 30 days for sharing and using stock price data for
educational and investor awareness activities to strike a balance between
preventing misuse of market data and keeping educational content relevant. The
new framework will be applicable from July 1, Sebi said in its circular. The
markets regulator, in May 2024, had restricted the sharing of live market data
by stock exchanges exclusively for trading and allied activities, allowing
educational and awareness programmes to use such data only with a one-day lag
to curb misuse. The framework was further tightened in January 2025, when the
regulator stipulated that entities engaged solely in education could use market
data only with a three-month lag.
(Business Standard)
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 : 94.4365
INR
/ 1 GBP : 128.3096
INR
/ 1 EUR : 110.9213
INR
/100 JPY: 60.2400
EQUITY INDEX
Sensex:
77328.19 (-516.33)
NIFTY:
24176.15 (-150.50)
Bnk NIFTY: 55310.55 (-736.85)
Historical
events: May 9th marks
significant milestones, including the births of Maharana Pratap (1540) and
Gopal Krishna Gokhale (1866), Rabindra Jayanti celebrations, and the 1874
introduction of Mumbai's first horse-drawn trams. Globally, it commemorates
Victory Day in Russia, the 1788 British move to abolish slavery, and the 1944
opening of the first eye bank.
****Have a nice Day****
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