Issue: 1267
· Kotak Mahindra Bank to pursue
acquisitions alongside organic growth.
· Policybazaar ropes in Amitabh
Bachchan for insurance awareness movement.
· Indian Bank sees fresh FCNR
(B) deposits worth $140 million since new RBI rule; optimistic of clocking $2 b
till Sept.
· Nifty reclaims 24,200; Midcap
index hits record high.
· FIU-IND case regarding
large-scale cyber fraud recognised as runner-up at Best Egmont Case Award
(BECA) 2026 during the Egmont Group Plenary in Baku, Azerbaijan.
· Government Mandates TReDS for
Settlement of All MSME Invoices by Central Public Sector Enterprises.
· Odisha gets first in-house
genomics lab to advance precision cancer care.
· Corporate bond issuances rise
28% in June on lower borrowing costs.
World Bank approves $890
million for India’s rooftop solar programme: The World Bank’s Board of
Executive Directors has approved a financing package of $890 million for
India’s rooftop solar programme, comprising an $820 million loan from the
International Bank for Reconstruction and Development (IBRD), a $60 million
concessional loan from the Clean Technology Fund and a $10 million grant from
the IBRD’s Livable Planet Fund. The multilateral lender will also mobilise an
estimated $4.2 billion in private financing through commercial loans to help
households install rooftop solar systems. The financing will support the
Centre’s PM Surya Ghar: Muft Bijli Yojana, which aims to install rooftop solar
systems in 10 million rural and urban households, reducing electricity bills
while boosting domestic manufacturing of rooftop solar equipment.
(Business Line)
Bank credit growth at
two-year high at 18.6% as debt market turns costlier: Bank credit expanded the
fastest in two years in the fortnight to June 30, rising 18.6% year-on-year
despite the geopolitical headwinds, while the deposit growth print recorded at
13.3%, data released by Reserve Bank of India on Friday showed. Deposit
growth also showed a healthy increase during the same period. This credit
demand stems from both consumer and corporate sectors. Corporate entities are
increasingly favoring banks over debt markets for funding. The gap between
credit and deposit growth widened to 570 basis points.
(Economic Times)
India's foreign exchange
reserves rise by $7.26 billion to $674.19 billion: India’s foreign exchange
reserves rose by $7.26 billion to $674.19 billion in the week ended July 3,
driven by an increase in foreign currency assets (FCAs) and gold reserves,
according to data released by the Reserve Bank of India (RBI) on Friday. FCAs,
the largest component of the reserves, increased by $4.51 billion to $545.58
billion during the week. Expressed in dollar terms, FCAs reflect the impact of
appreciation or depreciation of non-US currencies such as the euro, pound and
yen held in the reserves. “RBI foreign currency reserves increased by $4.4
billion during the fortnight, indicating the desire of the RBI to also recoup
foreign exchange reserves,” the State Bank of India said in a report..
(Business Standard)
US Fed Chair names three
Indians on new monetary policy task forces: US Federal Reserve Chairman
Kevin Warsh on Friday announced the names of leaders of five task forces
constituted to examine the central bank’s approach to monetary policy, and
propose transformational changes. Among the leaders named by Warsh, academics,
former central bankers and corporate executives, are three people of Indian
origin, namely, former RBI governor Raghuram Rajan, Harvard University
economics professor Raj Chetty and
Microsoft XBOX Chief Executive Officer Asha Sharma. While announcing the
leadership, Warsh said “the goal is straightforward: To ensure the Fed is best
positioned to achieve our objectives in this consequential time”.
(Business Standard)
Mutual fund SIP inflows
rise to record Rs 31,781 crore in June; stoppage ratio moderates to 91%: Monthly systematic investment
plan (SIP) contributions climbed to a record Rs 31,781 crore in June, rising
2.7 percent from Rs 30,954 crore in May 2026 and 16.5 percent from Rs 27,269
crore in June 2025. The month also saw a further
improvement in the SIP stoppage ratio, with fresh registrations outpacing
discontinued SIPs for the second consecutive month. According to data released
by the Association of Mutual Funds in India (AMFI), the industry registered
55.51 lakh new SIPs during June, while 50.64 lakh SIPs were discontinued owing
to maturity or closure. Based on these figures, the SIP stoppage ratio stood at
around 91 percent, a three month low.
(Moneycontrol)
Indian Bank Q1FY27 profit
up 10% at ?3,273 crore: Public sector lender Indian
Bank on Friday reported a 10 per cent rise in net profit to ?3,273 crore in the
first quarter of FY2027 (Q1FY27) on growth of business. The
Chennai-headquartered lender also saw an improvement in asset quality. Indian
Bank reported a total income of ?20,724 crore during the quarter, up from
?18,721 crore in the same quarter of FY26. Net Interest Income increased by
16.9 per cent YoY to ?7,435 crore in the quarter ended June 2026. Domestic Net
Interest Margin (NIM) improved to 3.41 per cent in June 2026 from 3.35 per cent
in June 2025. Total business increased by 13.7 per cent, reflecting broad-based
momentum across operations.
(Business Line)
Bank of Maharashtra profit
rise 27% to Rs 2,020 crore: Bank of Maharashtra (BoM) on
Friday reported a 26.84% year-on-year (y-o-y) jump in net profit to Rs 2,020
crore for the June quarter, driven by healthy growth in net interest income,
improved asset quality and a sustained push towards low-cost deposits.
Operating profit for the quarter rose 21.29% to Rs 3,117crore. On
the asset quality front, the bank’s gross NPA stood at 1.45%, and net NPA was
at 0.13%, both flat sequentially.
(Financial Express)
FM Nirmala Sitharaman to
meets heads of PSU banks on Mon, review foreign currency deposit mobilisation: Finance Minister Nirmala
Sitharaman will meet public sector bank heads on Monday. The meeting will
review progress on attracting foreign currency deposits from NRIs. RBI withdrew
interest rate ceilings on certain foreign currency deposits until September 30.
Concessional forex swap facilities are offered to banks for FCNR(B) deposits.
This initiative aims to boost foreign currency inflows and credit flow to
productive sectors.
(Economic Times)
Life insurance new business
premiums rise 16.6% in Q1 on private insurers' growth: Report: India's life insurance sector
began FY27 with robust new business premiums, growing 16.6 percent. Private
insurers significantly outpaced the market, increasing their share to nearly
forty percent. This growth stemmed from steady retail product demand and a
recovery in group business. Monthly premiums also saw a thirteen percent rise
in June, reversing last year's contraction.
(Economic Times)
NSE launches Nifty500
Ahimsa Index for values-based investing, paving way for ethical ETFs: NSE Indices, a subsidiary of the National Stock
Exchange (NSE), has launched the Nifty500 Ahimsa Index, a thematic benchmark
that tracks companies whose business practices align with the principle of
Ahimsa, or non-violence, marking a step towards values-based investing in
India's capital markets. Developed in collaboration with the Ahimsagain
Foundation, the index is aimed at investors seeking exposure to companies that
do not engage in activities involving harm to animals. Unlike conventional
environmental, social and governance (ESG) indices, the benchmark applies a
dedicated ethical screening framework based on the foundation's Ahimsa Investment
Movement (AIM) methodology. Companies are classified into Green, Orange and Red
categories, with firms falling in the Orange and Red categories excluded from
the index.
(Moneycontrol)
Ethanol blending to shield
consumers from oil price shocks: Govt: The government on Friday argued that India’s
ethanol blending programme is primarily aimed at shielding consumers from
global crude oil price shocks rather than reducing petrol prices at the pump,
even as it acknowledged that E20 petrol is costlier to produce than
conventional petrol when international crude prices are around $70 a barrel. In
a detailed FAQ, the Ministry of Petroleum & Natural Gas (MoPNG) said the
real objective of ethanol blending is to reduce India’s dependence on imported
crude by ensuring that nearly one-fifth of every litre of petrol sold is
domestically produced ethanol, the price of which remains insulated from daily
swings in global oil markets.
(Business Line)
Regulatory
changes, valuation pressures pull down life insurers' returns: India's listed life insurance companies
have largely failed to reward shareholders over the past five years, with three
of the four listed firms delivering negative stock returns, reflecting a sharp
de-rating of the sector amid regulatory changes, slowing growth in profitable
product segments and persistent pressure on valuations. Data for the five years
ended July 10, 2026, show that while SBI Life Insurance generated positive
returns, shares of Life Insurance Corporation of India (LIC), HDFC Life
Insurance, and ICICI Prudential Life Insurance declined.
(Business Standard)
Trai says no app can block
phone calls from 1600 number series, DND app can block promotional calls from
140 series: No
app can block phone calls originating from 1600 number series that are meant
for communications by regulated entities and the government to citizens, Trai
said on Friday, asserting its stance amid an ongoing tussle with caller
identification app Truecaller over the labelling and identification of calls
from the dedicated number series. The Telecom Regulatory
Authority of India (Trai) has also clarified that promotional calls originating
from 140 number series cannot be tagged or filtered by an app and can only be
blocked by DND registry which is managed by the regulator. TRAI has also clarified
that promotional calls originating from 140 number series cannot be tagged or
filtered by an app and can only be blocked by the DND registry. "Under
the Telecom Commercial Communications Customer Preference Regulation (TCCCPR),
any tagging, blocking or filtering of the calls originating from 1600 series
numbers is not permitted," Trai said.
(Moneycontrol)
India exempts GIFT City
units from foreign vessel licensing: The government on Friday exempted entities
operating in Gujarat International Finance Tec-City (GIFT City) from obtaining
licences to charter foreign vessels for export-import cargo movement and
international trade operations. The Ministry of Ports, Shipping and Waterways said
the move is aimed at simplifying the regulatory framework for chartering
foreign vessels and is expected to boost maritime leasing, ship financing and
ship ownership activities through GIFT City.
(Moneycontrol)
Coming soon: KYC from home
for NRIs, foreigners looking to invest in India: The Finance Ministry and SEBI are working towards
simplifying the onboarding process for NRIs and foreign nationals looking to
invest in the Indian market, and could scrap the mandate that they be
physically present or visit a bank branch to complete their KYC paperwork. The
reform measures on the anvil are likely to include a video-based KYC process,
Aadhaar-based authentication for NRIs holding a UID number, the recognition of
digital signatures from other countries, and the possible introduction of a digital
notarisation process, senior officials involved in the deliberations told
Business Standard. “Right now, for NRIs or foreign investors coming in, there
are lots of challenges in terms of due diligence, and they take almost a month
to be onboarded into our financial system. NRIs have to, in fact, be physically
present to open a bank account in India,” a finance ministry official said on
Friday.
(Business Standard)
HYSTERESIS IN
ECONOMICS
§ Hysteresis
describes the phenomenon where temporary economic shocks leave permanent
effects on an economy's long-term productive capacity. For instance, a
prolonged recession can result in workers losing skills, businesses reducing
investment, and lower labour force participation, causing potential output to
remain below its pre-crisis trend even after recovery begins.
§ Modern
macroeconomic research recognizes hysteresis as an important challenge because
conventional stabilization policies may not be sufficient to restore lost
productive capacity. Consequently, governments often complement monetary easing
with structural reforms, skill development, and targeted fiscal interventions
to minimize long-term economic scarring.
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 : 95.3129
INR
/ 1 GBP : 128.0252
INR
/ 1 EUR : 109.0815
INR
/100 JPY: 59.0200
EQUITY INDEX
Sensex:
77569.39 (+827.57)
NIFTY:
24206.90 (+244.10)
Bnk NIFTY: 58045.90 (+793.45)
World Population Day: July 11 is
universally observed as World Population Day, an international awareness event
established by the United Nations Development Programme to highlight global
demographic issues, maternal health, and sustainable development.
Historical events: July 11th marks
World Population Day, established in 1987 when the global population hit 5
billion. In Indian history, it is remembered for the tragic 2006 Mumbai serial
train bombings, and globally for the 1799 discovery of the Rosetta Stone and
the 1979 crash of the Skylab space station.
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