Issue: 1266
· Bank credit growth to ease as
corporates tap bond markets, overseas funding.
· Rich states pull ahead in tax
self-reliance; Haryana tops, Bihar trails.
· Subsidy burden rises to ?4.4
trn but moderating as states curb spending.
· 16th Finance Commission urges
states to boost revenues, cut spending.
· Sikkim tops per capita income
rankings, Bihar remains poorest state.
· Sebi bars 19 from trading in
Osiajee Texfab for alleged market fraud.
· SBI Funds Management prices
?11,693 crore IPO at ?545-574 per share.
· Federal Bank gets inaugural
BBB- investment-grade issuer rating from S&P.
End of Iran sanctions
reprieve unlikely to impact India’s crude oil imports: The rollback of the 60-day
sanctions reprieve for Iran is unlikely to impact India’s crude oil imports in
August and September, with Russia, the US, West Africa and South America
already providing alternatives to the lost barrels from the Gulf. However,
trade sources and refiners indicated that liquefied petroleum gas (LPG) could
again become a pain point if renewed hostilities continue for long, which would
extend the closure of the Strait of Hormuz (SoH), impacting supplies of the key
cooking medium for more than 33.50 crore Indian households.
(Business Line)
Government exempts customs
duty on key electronics components until March, 2029: In a move to deepen the
electronics component ecosystem, the Finance Ministry has waived basic customs
duty on a range of goods used to manufacture lithium-ion cells, display
assemblies and inductor coil modules until March 31, 2029.Three separate
notifications, issued by the Department of Revenue, extend the exemption on
machinery, equipment and inputs across these three manufacturing chains. The
key change here includes the expansion of the list to include the concessional
customs duty for lithium-ion battery manufacturing.
(Financial Express)
16th Finance Commission's
balance and tilt in Centre-state fiscal ties: There are four important
economic reasons for fiscal transfers from the Centre to states in federal
systems. First, the mismatch between functional assignment and revenue
sources, according to the principle of comparative advantage, necessarily
results in vertical imbalance. The mismatch needs to be rebalanced to avoid
states being left with unfunded mandates. Second, “equal treatment of equals”
in a country requires enabling all states to provide comparable levels of
public services at comparable tax effort, and this requires providing transfers
to offset revenue and cost disabilities. Third, when there are spillovers in
public services’ provision, it is necessary to subsidise them by giving grants
to states with matching requirements to avoid under-provision. Finally, the
Central government may take the services of states as agencies to implement its
mandated functions by giving grants.
(PiB)
Shriram Finance taps
foreign banks for cheaper debt: Non-banking finance company
Shriram Finance is raising $1.3 billion through half a dozen foreign banks to
reduce its borrowing costs as it takes advantage of a rating upgrade after a
sizeable stake purchase by the Japanese banking major, Mitsubishi UFJ Financial
Group (MUFG). DBS Bank, HSBC, Standard
Chartered and MUFG are among the banks which have lined up to provide this
loan. ET could not ascertain the names of all lenders. "The loan has been
launched with half a dozen banks already lining up for the first underwriting.
(Economic Times)
India's private credit
industry can become $100 billion by 2050: NPS Trust chief Dinesh Kumar Khara: India's private credit
industry has the potential to expand to USD 100 billion by 2050 from the
current USD 25-30 billion, National Pension System (NPS) Trust Chairperson
Dinesh Kumar Khara said on Thursday. This growth will be driven by
the growing maturity of the ecosystem and expanding domestic capital pools, the
former SBI chairman said at an event by IVCA here. Perhaps it can become a USD
100 billion industry at least by the year 2050. That is what my expectation
is," Khara said at the IVCA Private Credit Summit 2026.
(Economic Times)
India's private credit
turning mainstream, experts project massive headroom for alternative debt in
India: The
Indian private credit market is rapidly becoming a mainstream asset class. This
market is expanding at a robust thirty percent compound annual growth rate. It
offers customized capital and strategic mentorship to growing companies.
Traditional banks and alternative debt funds will complement each other under
new frameworks. The market is projected to safely scale past thirty billion dollars
by 2030.
(Economic Times)
DBS Bank India profit jumps
49% on lower costs, better asset quality: DBS Bank India reported a
significant 49% net profit increase. Advances grew fifteen percent while
expenses and provisions saw a decrease. Total income fell seven percent to Rs
10,591 crore for the year. Gross NPAs dropped to 1.34 percent, reflecting
improved asset quality. The bank's capital adequacy stood at 19.7 percent.
(Economic Times)
Italian corporate bank
lending in May posts fastest growth since September 2022: Italian bank loans to companies
increased at their fastest pace since September 2022. Deposits held by
residents at Italian banks grew annually, showing a slight decrease from April.
Bond fundraising also saw a yearly increase, though it was down from the
previous month. These figures reflect the financial activities of Italian banks
during the specified period. The data provides insight into recent lending and
deposit trends within Italy.
(Economic Times)
Govt clears Vivo-Dixon
joint venture under Press Note 3 norms: The Centre has approved Vivo Mobile India’s
proposal to invest in a smartphone manufacturing joint venture with Dixon
Technologies under Press Note 3 norms, allowing the two companies to move ahead
with a majority-owned contract manufacturing venture in India. The approval marks a
significant step in Vivo’s manufacturing strategy in India and is expected to
strengthen Dixon’s position as one of the country’s largest electronics
contract manufacturers while enabling Vivo to localise part of its smartphone
production through an Indian partner.
(Moneycontrol)
TCS Q1 results: Net profit
rises 4.7% to ?13,420 crore, AI revenue tops $2.6 billion: Tata Consultancy Services (TCS) net profit
grew 4.7 per cent to ?13,420 crore for the first quarter of the financial year
2026-27, led by positive annual growth across most verticals and
AI-transformation-focused deals. Net profit declined 2.6 per cent on a
sequential basis, owing to exceptional costs like the settlement of a legal claim.
Excluding exceptional items, profit came in at ?13,849 crore. Q1 FY27 reflects
continued growth momentum and the strength of our strategic positioning,
despite geopolitical and macro-economic headwinds. We delivered a strong order
book of $9.5 billion, including a marquee AI-led transformation deal with SKF,
while continuing to add clients across key revenue bands and scaling our AI
business to a $2.6 billion annualised revenue run rate.
(Business Line)
OpenAI launches
ChatGPT Work for workplace automation and complex tasks: OpenAI ?on Thursday unveiled ChatGPT
?Work, an agent ?in its popular chatbot designed to ?execute
tasks across different applications and ?files, marking ?the ?startup's latest push into ?workplace automation. The new tool,
powered by GPT-5.6, ?can ?operate continuously for hours on complex projects
and translate broad ?user goals into completed ?work, the IPO-bound company
said. ChatGPT ?Work can gather context from ?the apps,
files, and workflows and create finished materials such as documents,
spreadsheets, presentations, and ?web apps.
(Business Line)
Dinesh Khara to head panel
to attract global pension funds into India: The pension fund regulator has
set up a high-level committee chaired by former State Bank of India chairman
Dinesh Khara to chart a roadmap for attracting long-term investments from
global pension funds, as part of efforts to boost infrastructure financing and
deepen the domestic pension ecosystem. The Pension Fund Regulatory and
Development Authority (PFRDA) has constituted the ASCEND (Accelerated Scaling
of Global Capital Ecosystem and NPS Development) Committee to strengthen
collaboration between global pension funds and Indian pension funds under the
National Pension System (NPS). The panel will recommend measures to facilitate
co-investment platforms, strategic partnerships and innovative investment
structures.
(Financial Express)
Insurance Division, DFS
Secures 2nd Rank in Group A Category Grievance Redressal Assessment & Index
(GRAI) for May 2026: The Department of Financial
Services (Banking and Insurance Divisions) has been receiving more than 2.50
lakh grievances annually. It has consistently figured among the top 10
Ministries/Departments in the Grievance Redressal Assessment & Index (GRAI)
rankings since November 2025. For the month of May 2026, the Insurance Division
secured the 2nd position in the Group A category (registering more than or
equal to 500 grievances) in the GRAI rankings released by the Department of Administrative
Reforms and Public Grievances. The Banking Division stood at the 6th position
in the same category.
(PiB)
PERFECT
COMPETITION
§ Perfect
competition, also known as pure competition, is an idealized market condition
in which many sellers compete to offer the best prices, and large sellers have
no advantages over smaller ones. Perfect competition rarely occurs in
real-world markets, but it provides a useful framework for understanding how
supply and demand influence prices and behavior in a market economy.
§ There
are many buyers and sellers in a perfectly competitive market, and prices are
determined purely by supply and demand. Companies earn just enough profit to
stay in business and no more. Other companies would enter the market and drive
profits down if they were to earn excess profits.
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 : 95.3746
INR
/ 1 GBP : 128.0337
INR
/ 1 EUR : 109.1372
INR
/100 JPY: 58.7700
EQUITY INDEX
Sensex:
76741.82 (+238.22)
NIFTY:
23962.80 (+80.75)
Bnk NIFTY: 57252.45 (+509.85)
Global Energy Independence Day: July 10th is
globally recognized as Global Energy Independence Day, a date dedicated to
advocating for renewable energy sources and reducing reliance on non-renewable
fossil fuels.
Historical events: July 10 is a
monumental date globally: in 1940, the pivotal Battle of Britain began, while
in 1962, the world's first active communication satellite, Telstar, was
launched. Historically for India, the British established Fort William College
in 1800, and India successfully launched the indigenous INSAT-2A satellite on
this exact day in 1992.
****Have a nice
Day****
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