Issue: 1293
·
TCS says no evidence of breach after threat alerts over
employee data exposure.
·
ICICI Prudential AMC set to acquire ICICI Securities’ PMS
business.
·
e-way bill generation surged to over 13.98 cr in July.
·
India’s kharif sowing deficit dips below 2% as overall
coverage rises to 88% of normal.
·
Govt says youth unemployment rate declined to 9.9% in 2025
from 10.9% in 2022.
·
Equitas Small Finance Bank aims to nearly triple advances to Rs.1.2
trillion in five years, while preparing for a possible universal banking
licence application within a year.
·
BlackRock signs a deal with labour unions for AI construction
jobs.
·
Non-life insurance premium growth slowed to 5.7% in July,
shows data.
'Managing West Asia crisis
top priority': Govt expects FY27 GDP growth to touch 7%: The Central government is expecting GDP growth
for the full year FY27 to touch 7 percent – as the key high-frequency
indicators are showing a better-than-expected performance despite the ongoing
West Asia conflict, a senior government source told Moneycontrol. The person
added the government’s main focus right now is to "manage the West Asia
crisis' impact" on the Indian economy. "The Q1FY27 growth could be higher than the
Reserve Bank of India’s (RBI) projection of 7 percent," the official said.
Meanwhile, the Reserve Bank of India in its August policy review kept the repo
rate steady at 5.25 percent. " It is prudent to wait and watch the
changing circumstances and the evolving growth-inflation outlook," RBI
Governor Sanjay Malhotra said while announcing the policy decision.
(Moneycontrol)
Disinvestment, asset
monetisation fetch govt Rs.45,306 cr in FY26; exceeds RE target: The government's combined
mop-up from disinvestment and asset monetisation stood at Rs 45,306 crore in
FY26, exceeding the Revised Estimates, Minister of State for Finance Pankaj
Chaudhary said on Monday. The government had pegged Miscellaneous Capital
Receipts, which includes PSU disinvestment and public asset monetisation, at Rs.33,837
crore in the Revised Estimates (RE) for 2025-26. "Government of India
realised an amount of Rs.45,306.05 crore in FY 2025-26, which included Rs.16,885.56
crore from disinvestment and Rs.28,420.49 crore from Asset Monetisation,"
Chaudhary said in a written reply to the Lok Sabha.
(Business Line)
Govt's debt-to-GDP ratio at
58.2% in FY26, 210 bps above target of 56.1%: The government’s debt-to-gross
domestic product (GDP) ratio for 2025-26 (FY26) stood at 58.2 per cent,
Minister of State for Finance Pankaj Chaudhary informed Parliament on Monday.
The ratio was 210 basis points (bps) higher than the government’s aim to
maintain it at 56.1 per cent for the year. “The fiscal deficit of the
central government has declined from 9.2 per cent of GDP in 2020-21 to 4.4 per
cent in 2025-26 (provisional actuals), while the union government's total
outstanding liabilities have moderated from 61.5 per cent of GDP in 2020-21 to
58.2 per cent in 2025-26,” Chaudhary said in a written response to a question
in the Lok Sabha.
(Business Standard)
Jefferies says FCNR-B
inflows may hit $100 bn, 18% credit growth may shield Indian economy: Rising US fiscal pressures and
higher global bond yields could create volatility in global markets. However,
global brokerage firm Jefferies remains positive on India, saying strong
domestic credit growth and capital inflows could act as important buffers against
external volatility. India has seen a sharp improvement in bank credit growth
at around 17-18% year-on-year, the fastest pace in more than a decade. Corporate
lending has grown even faster at around 20%, while agricultural and retail
loans have increased by 17% and 16%, respectively. Meanwhile, auto and property
demand also remain healthy, Jefferies noted.
(Financial Express)
FCNR window may close early
as inflows surge, may touch $50 bn this week: The Reserve Bank of India’s
(RBI) special window, which offers high tax-free returns on dollar bank
deposits of non-resident Indians may close well before the scheduled deadline
of September 30, as robust inflows have started raising concerns about
“reversal risks,” official sources told FE “Nobody expected this volume
of inflows in such a short time,” one of the sources said, adding that inflows
under the special Foreign Currency Non-Resident (Bank) window might touch $50
billion this week. The sources indicated that the government and the RBI may
discuss closing the window once inflows reach around $50 billion..
(Financial Express)
Govt taps inputs from
public sector banks to lure foreign capital: Government will meet
state-owned lenders to attract foreign investment. This aims to stabilize the
rupee and bridge the current-account gap. The meeting will also focus on
deposit mobilization and supporting small businesses. Fresh foreign capital
inflows will boost reserves and domestic manufacturing. Durable foreign direct
investment is preferred over short-term deposits.
(Economic Times)
Purchase of bad loans by
ARCs rises 56% in Q1: Asset reconstruction companies
bought twenty-six thousand three hundred four crore rupees of bad loans. This
acquisition saw a fifty-six percent increase from the previous year's figures.
The overall non-performing asset ratio in the banking system continued its
downward trend. Banks have been resolving legacy stressed assets for several
years now. Transactions are increasingly being settled in cash and through
security receipts.
(Economic Times)
PSB Confluence
on 17-18 August to Bring Together Leadership of Public Sector Banks and
Financial Institutions for Action-Oriented Dialogue: The Department of Financial Services
(DFS), Ministry of Finance, is set to host PSB Confluence, a two-day ideation
conclave scheduled to be held on 17-18 August, in New Delhi, bringing together
the leadership of Public Sector Banks (PSBs) and Public Financial Institutions
(PFIs). The event aims to foster collaborative dialogue, exchange best practices,
and chart out actionable, time-bound strategies with a strong focus on
people-centric outcomes. The PSB Confluence will serve as a
platform for participating institutions to brainstorm on identified themes ,
share proven practices, and discuss practical initiatives that can be adopted
across the banking ecosystem. The PSB Confluence will bring together
approximately 125 participants,including Chairmen, Managing Directors and
Executive Directors of PSBs, and PFIs such as NABARD, EXIM Bank, SIDBI, NHB,
IIFCL, IFCI, and NaBFID, alongside senior officials from the Indian Banks
Association and the Department of
Financial Services.
(PiB)
Exporters can now skip
physical duty challans for key schemes: The Directorate General of Foreign Trade has
removed the requirement for exporters to submit physical duty payment challans
while applying for Export Obligation Discharge Certificates under the Advance
Authorisation and Export Promotion Capital Goods schemes. The change applies to
voluntary duty payments made on or after August 1, 2026, and is aimed at
reducing paperwork and speeding up the process of closing export
authorisations. Under the new system, duty payment details received
electronically from Customs through the Indian Customs Electronic Gateway will
be integrated with the Directorate General of Foreign Trade's online systems.
(Moneycontrol)
RBI officers seek HR policy
review, time-bound promotions up to Grade E: The Reserve Bank of India Officers’
Association has demanded an immediate review of the central bank’s human
resources policies, including the introduction of a time-bound promotion policy
up to Grade E. In a letter to RBI Governor Sanjay Malhotra last
week, the staff body said, citing a survey conducted by the association, that
the cadre has lost confidence in the organisation’s ability to provide
equitable opportunities for career progression. “A significant majority do not
expect reasonable promotion opportunities in the remainder of their careers; a
comparable majority believe that their careers lag peers in similar
institutions,” the letter said.
(Business Standard)
Sebi proposes easing debt
listing norms, raising ISIN maturity limits: The Securities and Exchange Board of India
(Sebi) has proposed several changes to ease funding constraints and improve
liquidity management for debt issuers. These changes include scrapping an
earlier mandate related to listing past debt securities and relaxing the
framework governing International Securities Identification Numbers (ISINs). To ease listing
requirements, Sebi suggested removing the requirement for issuers to
mandatorily list all outstanding unlisted non-convertible debt securities
issued after January 1, 2024, at the time of first listing. Instead, listing
past issuances would be left to the issuer's discretion, while the requirement
to list all subsequent issuances would continue.
(Business Standard)
States can’t tax minerals
under new Bill: The
Centre has proposed to bar state governments from levying taxes and cesses of
any form on mineral leasing rights or land bearing minerals, and bring
regulation of such land exclusively under it. The proposals in the Mines and
Minerals (Development and Regulation) Amendment Bill, 2026 tabled in the Lok
Sabha on Monday, aim to practically restrict states’ taxes on these natural
resources to the royalties charged on mineral value, and may help reduce the
crippling tax incidence in the sector. The Bill also specifically mentions that
mineral quantity, value or royalty itself cannot be the basis for states to
impose taxes, effectively depriving them of all options to impose any tax on
the sector other than royalty.
(Financial Express)
Parliament clears taxation
bill, Sitharaman says UPI transactions to remain free: Parliament has passed the Taxation and other
Laws (Amendment) Bill. Finance Minister Nirmala Sitharaman confirmed UPI will
remain free for consumers. The legislation removes the linkage between payment
systems and income tax. It also provides legal backing to modify zero-MDR
frameworks for digital transactions. The bill aims to attract foreign capital
and promote domestic manufacturing.
(Economic Times)
Parliament passes Bill to
recognise digital bank records as evidence: The Indian Parliament passed the Bankers’ Book
Evidence Bill after the Rajya Sabha cleared it on Monday with a voice vote. The
Lok Sabha had last week passed the Bill, which substitutes colonial-era
legislation of 1891 and seeks explicit legal recognition of digital bank
records. With the advent of digital and electronic
record-keeping in the banking sector, the government deemed it necessary to
repeal the Bankers’ Book Evidence Act of 1891, which allowed only paper-based
bank records as evidence in legal proceedings, Finance Minister Nirmala
Sitharaman said while replying to a debate on the Bill in the Rajya Sabha. The finance minister said
the Bill permits authentication through manual, digital and electronic
signatures. “It also, therefore, strengthens the statutory protection available
to the bank officers where the bank is not a party to the proceedings by
requiring the court to record the existence of a special clause which is a
feature in this new bill,” she added.
(Business Standard)
ACTIVIST INVESTOR
·
An
activist investor, typically a specialized hedge fund, buys a significant
minority stake in a publicly traded company in order to change how it is run.
·
The
activist investor's goals may be as modest as advising company management or as
ambitious as forcing the sale of the company, divestitures or restructuring, or
replacing the board of directors.
·
Unlike
private equity firms that buy and restructure companies in order to profit when
they are resold, activist investors seldom acquire full or majority stakes.
Instead, they use public communications and private discussions to win over
other shareholders and company insiders. When such efforts fail, an activist
investor may pursue a proxy contest to elect new directors in order to force
the company to meet their demands.
·
Activist
investors are sometimes called shareholder activists, a term also used to
describe those lobbying companies to improve working conditions for the
overseas employees of their contractors, or backers of a dissident board slate
elected to fight climate change.
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 : 95.2560
INR
/ 1 GBP : 128.5321
INR
/ 1 EUR : 110.0600
INR
/100 JPY: 60.1400
EQUITY INDEX
Sensex:
78542.44 (+43.27)
NIFTY:
24583.80 (+13.15)
Bnk NIFTY: 57686.95 (-59.50)
Historical events: the execution of
young Indian freedom fighter Khudiram Bose in 1908, the integration of Dadra
and Nagar Haveli into India in 1961, the signing of Germany's Weimar
Constitution in 1919, and a rare total solar eclipse crossing Europe and Asia
in 1999.
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