Issue: 1240
· Fino Payments Bank says SFB
transition on track; loan referral disbursals nearly triple in May.
· Life insurers report weakest
growth in over 8 months in May.
· Shri Narendra Modi becomes
India’s longest continuously serving democratically elected Prime Minister.
· HDFC Bank hikes lending rates
by up to 10 bps across tenors.
· Fitch cuts India's FY27 GDP
forecast to 6.4%, warns of US-Iran war impact.
· RBI asks banks to assess AI
risk gaps, draw action plan by June-end.
Wall Street slumps as
Nasdaq tumbles 3.9%, S&P 500 drops 2.1%: A rotation that has seen
investors bail from richly priced technology names in favor of more
economically sensitive industries resumed, dragging down the S&P 500 while
lifting the majority of its companies. Wall Street came under broad
selling pressure on Tuesday, with technology stocks leading the decline. As of
12:42 p.m. in New York, the S&P 500 had fallen 2.1%, while the tech-heavy
Nasdaq-100 slumped 3.9%. The Dow Jones Industrial Average was down 1%,
reflecting weakness across major sectors. The broader MSCI World Index also
declined 1.7%, indicating a widespread selloff in global equities.
(Moneycontrol)
Govt hopeful for India’s
inclusion in Bloomberg Global Aggregate Bond Index: The government is hopeful that
measures announced last week to improve foreign investor access to government
securities (G-secs) will help India secure inclusion in the Bloomberg Global
Aggregate Bond Index, government sources said on June 9. The
push comes months after Bloomberg Index Services deferred a decision in January
to include Indian government bonds in its flagship global bond benchmark,
citing operational and market infrastructure issues that required further
assessment. Bloomberg had then said it would revisit the matter in mid-2026. Government
sources said India had expected inclusion earlier this year and had been
working to improve market access for foreign investors while broadening the
domestic bond market.
(Moneycontrol)
Govt flags fuel,
fertiliser, gold as three key stress areas hurting foreign exchange: The government has identified
fuel, fertiliser and gold as the three key areas putting pressure on India’s
foreign exchange position, with elevated global prices and uncertainty around
shipments through the Strait of Hormuz emerging as major concerns, government
sources said on June 9. “Fertiliser imports, crude oil
purchases and gold imports cannot be paid for in rupees. There is continuous
stress on foreign exchange because prices of all three — fuel, fertiliser and
gold — remain elevated. That is why we need to be cautious and conserve foreign
exchange,” government sources said on June 9.
(Moneycontrol)
SBI General Insurance to
list after AMC’s IPO: SBI chairman CS Setty: If State Bank of India is the
country’s largest bank, so is almost every subsidiary of the bank. With plans
afoot for the listing of SBI Asset Management Company, work should soon
commence to take SBI General Insurance public, SBI chairman CS Setty has told
Moneycontrol. When asked about SBI General
Insurance — which lags top-three market leaders like SBI Life, SBI Cards and
& Payments and SBI Mutual Fund—Setty said the performance of the bank’s
general insurance arm is more than satisfactory. “Many bank-owned card
businesses probably will not know what's happening in the true sense. A lot of
times, SBI Cards is seen as a bellwether of the credit-card industry because we
are the only stand-alone credit-card company in the country,” Setty said.
(Moneycontrol)
HDFC Bank, SBI, ICICI Bank
seen as biggest beneficiaries of RBI's FCNR-B Deposits push: The large banks, such as HDFC
Bank, State Bank of India, and ICICI Bank, are expected to be among the biggest
beneficiaries of the Reserve Bank of India’s (RBI) recent push towards the
foreign currency non-resident bank (FCNR-B) deposits, as they have extensive
overseas exposure, according to market participants. In aggregate, the FCNR-B swap
window and the external commercial borrowings (ECB) programme brought in $34
billion, out of which $26 billion were from these overseas deposits. Now,
market participants expect nearly $40 billion - $50 billion worth of inflows in
the near to medium term, and experts believe that the same old dogs will
capture the maximum inflows via these avenues.
(Moneycontrol)
Banks expect $40–50 billion
via FCNR(B) deposits: The banking sector expects to
attract around $40–50 billion through Foreign Currency Non-Resident (Bank)
[FCNR(B)] deposits after the Reserve Bank of India’s measures announced last
week to boost foreign currency inflows. According to an SBI Research Ecowrap
report, fresh FCNR(B) inflows could reach $40–45 billion under the scheme. “In
2013, when the RBI introduced the FCNR(B) facility, fresh inflows of $24.5
billion were mobilised within three months. This time, the facility window is
open for four months, and we believe fresh FCNR(B) deposits could amount to $40–45
billion,” the report said. Outstanding FCNR(B) deposits stood at $33.8 billion
at the end of March 2026, compared with $32.8 billion a year earlier.
(Financial Express)
RBI opens a dollar swap
window to help hedge foreign borrowings: The Reserve Bank of India
(RBI) said on Monday it will offer banks a dollar-rupee swap facility at a
fixed cost of 1.5% per annum, with maturities of up to five years, to help
hedge foreign currency borrowings by state-run firms and lenders. Under
the arrangement, banks can sell US dollars to the RBI and simultaneously agree
to buy back the same amount at the end of the swap period. “The swap will be undertaken
at a fixed rate of 1.5% per annum compounded semi-annually,” the central bank
said.
(Economic Times)
Rajiv Bajaj to step down
from Bajaj Finserv board, cites growing responsibilities at Bajaj Auto: Rajiv Bajaj will step down as
a non-executive director of Bajaj Finserv after deciding not to seek
re-election at the company's annual general meeting scheduled for July 31,
2026, according to a filing on the exchanges by the financial services company
on Tuesday. Bajaj informed the company
that increasing responsibilities at Bajaj Auto, including oversight of newly
established businesses and the group's recent acquisition of KTM, have prompted
him to reduce his external commitments.
(Economic Times)
Bombay High Court rejects
Lilavati Trust's plea against HDFC Bank, dismisses Rs 1,000-crore defamation
plea: The Bombay High Court on
Tuesday dismissed an interim application filed by the Lilavati Kirtilal Mehta
Medical Trust, which sought to restrain HDFC Bank, its Managing Director and
CEO Sashidhar Jagdishan, and others from making allegedly defamatory remarks
against the trust and its members, according to a PTI report. The interim plea was
filed as part of a Rs 1,000-crore defamation suit in which the trust alleged
that statements made by the bank and its senior executives through media
interactions and social media platforms had damaged its reputation.
(Moneycontrol)
China condemns US
blacklisting of Alibaba and Baidu, warns of countermeasures: China said on Tuesday that it "firmly
opposed" the United States' decision to blacklist several Chinese
companies after Washington added technology giants Alibaba and Baidu to a list
of firms it alleges are supporting the Chinese military. The Pentagon's latest
update, released on Monday, came months after it had published and then
abruptly withdrawn an earlier version of the list without providing an
explanation. Speaking at a regular press briefing, Chinese foreign ministry
spokesman Lin Jian criticised Washington's approach.
(Moneycontrol)
India-UAE trade
deal: Gold imports under preferential quota route remain virtually closed: India’s gold imports from the United Arab
Emirates through the free trade agreement have not seen much uptake following
court cases around the process of allocation of quotas by the Director General
of Foreign Trade. According to government and industry sources, the CEPA door
for gold imports remains virtually closed although the precious metal continues
to be imported from the UAE through normal channels.
(Business Standard)
Can't trace old vehicles,
need help: Automakers tell NITI Aayog: Automobile manufacturers told
NITI Aayog on Tuesday that they often have no idea where many 20-25-year-old
vehicles are because ownership changes multiple times over their lifecycle.
They sought government support — including access to updated Vahan registration
records — to trace such vehicles, Business Standard has learnt. During a
meeting organised by NITI Aayog, auto industry executives said the lack of
traceability of old vehicles could make it difficult to meet obligations under
the Centre's recycling rules for end-of-life vehicles (ELVs), which were issued
last year. During the meeting, executives of certain automakers alleged that
Automated Testing Stations (ATSs) are not effectively identifying ELVs. They
also said pending traffic challans and other liabilities discourage owners from
taking old vehicles to authorised scrapping centres.
(Business Standard)
Fertiliser subsidy bill
likely to double to ?3.4 trillion in FY27: A surge in global fertiliser
prices amid the West Asia conflict is likely to double the central government’s
fertiliser subsidy bill from the Budget estimate of Rs 1.7 trillion for FY27, a
senior government official said on Tuesday. “Fertiliser is a sensitive issue, and
we don’t see prices coming down soon. Officials from the Department of
Fertilisers have already met Finance Minister thrice to seek a 100 per cent
increase in subsidy this year. They have highlighted that the fertiliser pool
is narrowing and supplies are lower,” the official said, requesting anonymity.A
100 per cent hike would take the fertiliser subsidy to a record high of Rs 3.4
trillion in FY27. The previous high was Rs 2.5 trillion in FY23 after the
Russia-Ukraine conflict broke out.
(Business Standard)
Centre announces ?95,692
crore interim allocation under VB-G RAM G: With El Nino looming on the
horizon, the Centre released an interim sum of ?95,692 crore under the newly
introduced Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Grameen) scheme
on Tuesday for a seamless transition from MGNREGA. This includes ?8,508 crore
for West Bengal. The interim allocation also comes ahead of the formal launch
of VB G RAM G from July 1, 2026 across the country. The interim allocations were made based on
60 per cent of financial year 2026 (FY26) allocations for MGNREGA, as the
government awaits the final version of draft rules for VB G RAM G that mandate
a ‘normative’ annual allocation based on the 16th finance commission devolution
formula.
(Business Standard)
SORTINO RATIO
§ The
Sortino ratio is a variation of the Sharpe ratio. It differentiates harmful
volatility from total overall volatility by using the asset's standard
deviation of negative portfolio returns or downside deviation instead of the
total standard deviation of portfolio returns.
§ The
Sortino ratio takes an asset's or portfolio's return and subtracts the
risk-free rate. It then divides that amount by the asset's downside deviation.
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 : 95.6359
INR
/ 1 GBP : 127.8856
INR
/ 1 EUR : 110.4716
INR
/100 JPY: 59.7400
EQUITY INDEX
Sensex:
73918.76 (+394.50)
NIFTY:
23242.10 (+119.10)
Bnk NIFTY: 55194.50 (+1130.75)
Historical
events: In Indian
history, June 10 marks the culmination of the Indian Armed Forces' Operation
Blue Star at the Golden Temple in Amritsar in 1984. In 1986, the Indian cricket
team secured a historic 5-wicket victory against England at Lord's Cricket
Ground under Kapil Dev's captaincy. Additionally, in 1966, India began
designing MIG fighter aircraft in Nashik.
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