Issue: 1214
· Global overnight interbank
interest rates fall below 6% as liquidity conditions ease in major financial
hubs.
· Credit Growth Milestone:
Aggregate credit at 27 major international banks increased by 3.6% in the first
quarter of 2026.
· Over 20 prominent securities
companies report Q1/2026 losses amid high market volatility and regulatory
shifts.
· IMF Revises Growth Forecast:
Global growth projected at 3.3% for 2026, slightly up from previous estimates
due to private sector adaptability.
· New forex arbitrage
restrictions contribute to a dip in non-interest income for major Indian
lenders.
· IMF’s "Fiscal
Monitor" report flags rising risks associated with high sovereign debt
levels in the "Shadow of War."
'Restart work-from-home':
PM Modi urges revival of Covid-era work culture as West Asia conflict hits
global economy: Prime
Minister Narendra Modi on Sunday called for the revival of Covid-era work
practices such as work-from-home, online conferences and virtual meetings,
saying the ongoing global crisis and rising fuel prices required collective
public participation and responsible consumption. Addressing a public gathering
in Hyderabad, Modi said international conflicts, particularly the prolonged
hostilities in West Asia, had disrupted global supply chains and put pressure
on oil prices and India’s foreign exchange reserves.
(Moneycontrol)
India, Iran to talk safe
passage through Hormuz at BRICS meet: India and Iran will discuss
safe passage for Indian ships carrying energy through the Strait of Hormuz.
Talks will occur during the BRICS Sherpa and foreign ministers' meetings in New
Delhi. India faces challenges navigating the strait, impacting energy security.
Diplomatic engagement has already facilitated the exit of eleven Indian ships.
Thirteen ships remain in the Persian Gulf.
(Economic Times)
Govt working on FTA
utilisation plan to maximise benefits for businesses: With India signing a series of
free trade agreements with developed countries, the government is working on an
FTA utilisation plan to help maximise benefits from these pacts, an official
said. Since 2021, India has finalised free trade agreements (FTAs) with
Mauritius, Australia, the UAE, Oman, New Zealand, the EFTA (European Free Trade
Association), the European Union (EU), the UK and US. These pacts cover 38
countries whose combined global imports stand at about USD 12 trillion. The
main Indian sectors that have received duty-free market access in these FTA
partner countries include agriculture, textiles and apparel, gems and
jewellery, leather and leather goods, engineering, electronics, chemicals, and
pharmaceuticals..
(Business Standard)
Ujjivan SFB Q4 profit jumps
over three-fold on record disbursements, lower provisions: Ujjivan Small Finance Bank
(SFB) reported a more than three-fold jump in net profit for the fourth quarter
at Rs.282 crore, driven by strong growth in interest income on the back of
record disbursements, lower provisions and higher other income. The
Bengaluru-based lender had posted a net profit of Rs.83 crore in the year-ago
period. The bank reported its highest-ever quarterly disbursements at Rs.9,811
crore in the fourth quarter, up 32.1% year-on-year.
(Financial Express)
Indian banks avoid fresh Gulf
bets as Iran crisis drags on: Indian banks are pausing new
business in Gulf countries amid the Iran crisis. Lenders are closely watching
existing ties to avoid financial trouble. State Bank of India and Punjab
National Bank are among those taking a cautious approach. This move aims to
manage risks and ensure stability in international operations. Indian
banks have stopped fresh exposure in the Gulf countries in the aftermath of the
prolonged Iran crisis, bankers told ET, with the focus shifting instead to
careful monitoring of existing relationships to prevent balance-sheet pain.
(Economic Times)
Gold loans power Small
Finance Banks' growth as microfinance asset quality weakens: Small Finance Banks are
shifting focus to secured loans like gold loans. This move aims to stabilize
their financial health and earnings. The unsecured microfinance sector
continues to face high bad loan ratios. This strategic pivot is happening as
regulators encourage diversification. Some larger banks are also growing their
microfinance business. This change is crucial for long-term stability and
growth.
(Economic Times)
Health insurance
share rises to 41% of non-life industry in FY26: Health insurance continued to strengthen
its lead within India’s non-life insurance sector in FY26, with its market
share rising to 40.8% from 38.6% in the previous year, as per a report by The
Times of India. Premium collections in the health segment increased 15.4% to
around Rs 1.4 lakh crore, surpassing the overall non-life industry growth of
9.3%. Total gross direct premium income for the industry stood at nearly Rs 3.4
lakh crore during the year.
(Economic Times)
J&K Bank
aims for Rs.5 trn biz, near-zero net NPA in 2-3 years: MD & CEO: Jammu and Kashmir (J&K) Bank intends
to become a national bank over the next five years, with retail as its main
focus. It sees almost 50 per cent of its business coming from outside J&K. Amitava
Chatterjee, managing director (MD) and chief executive officer (CEO), in an
telephonic interview with Subrata Panda, highlighted initiatives taken by the
bank a few years ago that are now showing results, especially in governance and
non-performing assets (NPAs).
(Business Standard)
RBI employee
protest over new promotion policy to continue this week: The Reserve Bank of India Officers’
Association (RBIOA) will continue protests this week in various central bank
office premises across the country against RBI’s new promotion policy that came
into effect last week, a note from the staff union said. On Friday, protests
occurred in several RBI offices across the country, including Mumbai, Jaipur
and Hyderabad, on the issue. Employee associations of different regional RBI
offices has submitted memorandum to the heads of such region for submission of
their demands to RBI Governor Sanjay Malhorta.
(Business Standard)
CMS bags Rs 400 cr contract
to manage 6,000 HDFC Bank ATMs: CMS Info Systems has secured a significant Rs
400 crore order from HDFC Bank. The deal involves managing 6,000 ATMs for the
next five years. This partnership will also include advanced solutions like
currency forecasting and AI technology. The company expects this to boost its
revenue from private sector banks. This follows recent large contracts with
ICICI Bank and SBI.
(Economic Times)
India got EU market opened
for seafood through active talks: Goyal: India actively negotiated with the European
Union to open its market for seafood exports, helping the country overcome
challenges arising from steep US tariffs, Union Commerce and Industry Minister
Piyush Goyal said on Sunday. Addressing reporters here, he said the government
anticipated disruptions and acted swiftly to secure alternative markets for
Indian exporters. "Our government works 24 hours. Often, even before a
problem arises, we begin planning and action," he said. Goyal said the US
decision to impose 50 per cent tariff on Indian seafood had dealt a major blow
to exports and caused distress among fishermen.
(Business Standard)
IT Dept likely to profile
districts for revenue performance, improvement of compliance: To improve direct tax
collection, Income Tax Department is likely to profile districts for net
positive or negative revenues and for better compliance. It also plans to
further tighten crypto net by reporting of new specified financial transaction
(SFT). These are part of Central Action Plan for current fiscal, details of
which were shared by senior officials with businessline. These measures are
critical, when direct tax collection in FY26 fell short by Rs.81000 crore.
Because of this, required growth rate for FY 27 collection of Rs.26.97 lakh
crore has surged to 15.25 per cent as against budget projection of 11.4 per
cent.
(Business Line)
RBI, European
Central Bank sign revised agreement on information exchange, central banking
ties:
The
Reserve Bank of India and the European Central Bank have signed a Memorandum of
Understanding. This agreement aims to boost cooperation in central banking. The
MoU updates a previous pact from 2015. It will facilitate information exchange
and policy dialogue. Both banks will collaborate on mutual interests. This
strengthens their engagement on banking practices and financial sector growth.
(Economic Times)
Govt appoints
new CDS, Navy chief amid theatre command restructuring push: The government on Saturday appointed
Lieutenant General N S Raja Subramani (Retd.) as the new Chief of Defence Staff
(CDS) and Secretary of the Department of Military Affairs in the Ministry of
Defence (MoD), a role in which he is likely to carry forward the process of
reorganising the country’s armed forces under an integrated theatre command
structure, bringing with him more than four decades of military experience. Alongside
the announcement of the new CDS’ appointment, the government on the same day
appointed Vice Admiral Krishna Swaminathan as the next Chief of the Naval
Staff. He will succeed the incumbent, Admiral Dinesh Kumar Tripathi, who is set
to retire on May 31, 2026.
(Business Standard)
PARTICIPATORY NOTES
·
Participatory
notes, known as P-notes or PNs, enable investors or hedge funds not registered
with the Securities and Exchange Board of India (SEBI) to invest in Indian
securities.
·
These Offshore Derivative
Instruments allow foreign investors to bypass direct registration, facilitating
quick and anonymous market access. Despite their popularity, P-notes are
controversial due to regulatory concerns about anonymity and unaccounted funds
entering India.
·
Investors receive dividends or
capital gains from securities, but Indian regulators worry that hedge funds
using participatory notes might create market volatility.
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 : 94.4365
INR
/ 1 GBP : 128.3096
INR
/ 1 EUR : 110.9213
INR
/100 JPY: 60.2400
EQUITY INDEX
Sensex:
77328.19 (-516.33)
NIFTY:
24176.15 (-150.50)
Bnk NIFTY: 55310.55 (-736.85)
National
Technology Day: May 11 is
primarily recognized in India as National Technology Day, marking the 1998
Pokhran nuclear tests. Globally, it is also celebrated as National Eat What You
Want Day. In 2026, it also falls on the second Sunday of May, making it
Mother's Day in the United States and several other countries.
Historical
events: May 11 is a
significant date in Indian history, primarily marked by the 1998 Pokhran-II
nuclear tests (Operation Shakti), celebrated annually as National Technology
Day. Globally, it commemorates milestones like the 1812 assassination of a
British PM, the 1981 debut of the musical Cats, and the 1997 victory of IBM's
Deep Blue over Garry Kasparov.
****Have a nice Day****
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