Issue: 1343
· US bars Microsoft, Infosys,
TCS, Wipro, Cognizant from green card programme over 'H-1B abuse'.
· FIIs net sell Rs 12,944-crore
equities, DIIs net buy shares worth Rs 10,703 crore on Oct 8.
· Canadian author Anne Carson
wins Nobel Prize for Literature 2026.
· GST Council to consider rate
changes only once a year, says FM Sitharaman.
· India may delay 0.4% UPI fee
rollout for large payments.
· RBI may deliver 50 bps
‘jumbo’ hike in December, repo rate seen at 6%: SBI Research.
Rupee slides to a
five-month low of 96.7/$, yields rise: The rupee closed at a five-month low of 96.7
against the greenback on Wednesday, after the Reserve Bank of India (RBI)
shifted its monetary policy stance to “calibrated tightening”. The currency
opened at 96.4 against the dollar and weakened to 96.8 after RBI Governor
Sanjay Malhotra indicated that easing was no longer under consideration amid a
higher inflation outlook, before recovering some ground by the close of trade. The surprise change in
stance also pushed the benchmark 10-year government bond yield higher by 5
basis points to 7.24 per cent. Equity markets, too, reflected the cautious
sentiment. The Nifty50 ended a tad lower at 22,603.05, while the BSE Sensex
shed about 0.6 per cent to close at 72,638.70, despite the rate hike being widely
anticipated.
(Business Line)
GST reforms 2026: Govt
plans faceless, centralised CGST system for 2 lakh multi-jurisdiction taxpayers:
The
government plans to move the central GST (CGST) administration towards a
faceless, centralised model, creating a unified window for businesses that
currently deal with multiple CGST jurisdictions, finance minister Nirmala
Sitharaman said on Thursday. Going forward, we intend to
bring a centralised tax administration for these multiple CGST jurisdiction
taxpayers," Sitharaman said at a press conference after the 57th GST
Council meeting. "A framework will be
finalised and put up for public consultation before the budget next year and
will be implemented during the next financial year 27-28," Sitharaman
said.
(Economic Times)
September inflation
expected to rise to 5.40%: Reuters poll: A Reuters poll forecasts
India’s September consumer inflation at 5.40%, compared with 4.82% in August.
Higher food and energy prices are expected to be the main drivers, with
expensive crude and a weaker rupee adding pressure. This is an economists’
forecast; the official inflation figure is still awaited.
(Reuters)
Two yrs on in GIFT City,
CareEdge Global to expand ratings coverage to 100 countries: CareEdge Global plans to add
more than 55 sovereigns to its coverage, taking the number of countries it
rates to around 100, as the two-year-old agency in GIFT City looks to expand
beyond emerging markets and into developed economies, MD and Group CEO Mehul
Pandya said. The expansion would significantly widen the footprint of the
international ratings arm of CareEdge Ratings, which began its global-scale sovereign
ratings business in October 2024 with coverage of 39 countries. The agency now
rates “45 sovereigns covering roughly 85 per cent of the world’s economy”, V
Chandrasekaran, Chairman of CareEdge Ratings, said at an event marking CareEdge
Global’s second anniversary at GIFT City on Wednesday evening.
(Business Line)
RBI rate hike: Major banks
raise lending rates, making loans costlier: Hours after RBI raised its
benchmark policy rate, large banks such as Punjab National Bank, Indian Bank
and Bank of Baroda announced an increase in their lending rates, making loans
expensive for borrowers. PNB has revised Repo Linked
Lending Rate (RLLR) from 8.10 per cent (including BSP of 0.35 per cent) to 8.35
per cent (including BSP of 0.35 per cent) with effect from October 8. Indian
Bank also increased its Repo Linked Benchmark Lending Rates (RBLR) to 8.20 per
cent against the existing 7.95 per cent. Bank of Baroda (BoB),
increased its Repo Based Lending Rate to 8.15 per cent from the existing 7.90
per cent, an increase of 25 basis points.
(Business Line)
Depositors unlikely to see
immediate benefit from rate hike: CS Setty: State Bank of India, Chairman,
CS Setty expects the recent rate hike to support banks’ margins over the next
two to three quarters, with deposit rates unlikely to rise immediately due to
ample liquidity. In an interaction with businessline, he said credit growth is
likely to moderate to sustainable levels and ruled out any risk of excessive
lending driven by FCNR(B) inflows. The overall banking industry
is expected to remain positive on the NIM front over the next two to three
quarters.
(Business Line)
HDFC Bank’s Anup Bagchi set
to become highest-paid CEO among private peers: HDFC Bank‘s incoming Managing
Director and Chief Executive Officer Anup Bagchi is set to become the
highest-paid chief executive among major private sector banks, with a proposed
annual compensation package of Rs 35.9 crore (including ESOPs), more than
double the remuneration reported by several of his peers in FY26. According to
the bank’s postal ballot notice issued on Wednesday, Bagchi’s proposed annual
compensation comprises fixed pay of Rs 8.97 crore and performance-linked
variable pay of up to Rs 26.92 crore. The package, which has received approval
from the Reserve Bank of India (RBI), is subject to shareholder approval. Even
excluding ESOPs of Rs 18.04 crore, Bagchi’s salary would still be higher than
peers at Rs 17.85 crore.
(Financial Express)
Surging bond yields likely to
slash banks' treasury income: Banks are expected to report a
nearly 60% decline in treasury income for the July-September quarter. Analysts
predict treasury gains to decrease from Rs.13,100 crore last year to Rs.5,500
crore this year. Rising government bond yields have negatively impacted
investment portfolios, leading to lower gains. Public sector banks will feel a
more pronounced effect due to their larger government securities portfolios.
(Economic Times)
TCS Q2 results: Net profit
rises 4% to Rs 13,884 crore; AI revenue crosses $3 billion: Tata Consultancy Services (TCS), India's largest IT
services company, on Thursday reported a 4 percent sequential increase in
consolidated net profit to Rs 13,884 crore for the second quarter of FY27, from
Rs 13,349 crore in the preceding quarter. Excluding an exceptional loss related
to a legal claim settlement in Q1, net profit rose marginally from Rs 13,849
crore. The latest profit exceeded the CNBC-TV18 poll estimate of Rs 13,673
crore.
(Moneycontrol)
Oil prices surge before
easing on US–Iran signals: Oil prices rose more than 5% during Thursday’s
trading before giving back part of the gains. Prices eased after President
Donald Trump indicated that the US would not attack Iran before November’s
midterm elections. Concerns over Gulf shipping and hurricane-related production
shutdowns continued to support prices.
(The Business Times)
Govt counters Musk, says
satellite clearance process non-discriminatory: Even as India’s communications ministry on
Thursday said it was following a “fair and non-discriminatory” authorisation
framework for all telecommunications services, including those related to
satellite communication (satcom), Elon Musk, the founder of SpaceX and Tesla,
questioned the absence of a licence to Starlink through a post on X. Earlier in the day, the
Indian government had reiterated that preferential clearance for any single
operator would be inconsistent with India’s regulatory environment. “At
present, all the three entities are at broadly the same regulatory stage. As
such, the suggestion that the framework or its application is unfair or
discriminatory is baseless and misconceived,” the communications ministry said.
(Business Standard)
GST Council proposes 5%
levy on e-commerce delivery services, with no input tax credit: The GST Council on October 8 has proposed
bringing certain delivery services supplied through electronic commerce
operators (ECOs) under a 5% GST rate without input tax credit, in a move that
could alter the tax treatment of deliveries made through e-commerce platforms. The proposal covers
delivery services, other than courier and postal services, supplied through an
ECO under Section 9(5) of the CGST Act, where the person providing the service
is not liable for GST registration under Section 22(1) of the CGST Act. A
separate 5 percent GST rate without input tax credit has also been proposed for
delivery services relating to goods that are supplied or ordered through an
ECO.
(Moneycontrol)
GST Council: No more arrest
powers, no rate rejig: The GST Council on Thursday recommended significant
tax administration reforms, recommending the complete elimination of arrest
powers for GST officers, an increase in the threshold for criminal prosecution,
and a reduction in general penalties. The Council also approved accelerated
refund processing and simplified procedures for taxpayer registration and
cancellation. According to the Finance Ministry, the threshold
for prosecution has been raised from Rs.1 crore to Rs.5 crore. The minimum
punishment has been removed, while the punishment, whether a fine, imprisonment
or both, will be left to judicial discretion in every case. The general
penalty, which applies where no specific penalty is provided, has been reduced
from Rs.25,000 to Rs.10,000.
(Business Line)
GST Council proposes 5% tax
option for EV transport and rentals: The GST Council has
recommended an optional 5% GST rate for passenger transport and vehicle rental
services using electric vehicles. The option would carry restrictions on input
tax credit. It covers qualifying services with operators where battery charging
costs are included in the fare or rental charge.
(Financial Express)
SOCIAL LOAFING
§ Social
loafing is the psychological tendency for individuals to put forth less effort
when working in a group compared to working alone.
§ It
often occurs due to a diffusion of responsibility, lack of motivation, or the
belief that others will pick up the slack. This phenomenon reduces team
efficiency, often leading to lower productivity and frustration among
harder-working members.
RBI KEY RATES
Repo
Rate: 5.50%
SDF:
5.25%
MSF
/Bank Rate: 5.75%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 96.7733
INR
/ 1 GBP : 127.7414
INR
/ 1 EUR : 108.3774
INR
/100 JPY: 61.1900
EQUITY INDEX
Sensex:
71593.24 (-1045.46)
NIFTY:
22231.80 (-371.25)
Bnk NIFTY: 54515.05 (-540.54)
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