Issue: 1294
·
PSU bond issuances decline 37% in FY26 as more funding
options emerge.
·
Fitch retains India’s sovereign rating at BBB- for 20 years
in row.
·
SBI Capital Markets to sell up to 8.78 million NSE shares in
IPO.
·
‘Microfinance portfolio to grow 15% in FY27’: Alok Misra,
CEO, MFIN.
·
RBI curbs on NBFC flexi credit may push lenders towards
bullet loans, raise costs: Kotak.
·
Tax liability of ITR-7 filers triples in 5 years to Rs 1,043
crore.
·
Ministry of MSME and DPIIT sign MoU to accelerate
commercialisation and global market access of India's Geographical Indication
(GI) products.
·
Rs.86,917 cr in unclaimed deposits with RBI fund, FinMin
tells Parliament.
·
Govt extends PM E-DRIVE subsidy for e2Ws till FY28, allocates
Rs.1K cr more.
·
Govt approves introduction of one billion polymer banknotes
of Rs.10 and Rs.20.
RBI governor Sanjay
Malhotra says inflation in check, bolstering rate hold bets: India’s inflation remains manageable, the
country’s central bank chief said, reinforcing expectations that interest rates
will stay on hold. “Inflation is more or less under check,” Governor
Sanjay Malhotra said at a banking industry event in Mumbai on Tuesday. Economic
growth remains resilient and the country’s foreign exchange reserves are sufficient
to absorb shocks, he said. His comments came a day before India is due to release
inflation data for July, with economists surveyed by Bloomberg expecting price
growth of about 4.4%. In June, inflation breached the RBI’s 4% target
for the first time in nearly a year and a half.
(Moneycontrol)
SBI Research sees Q1 FY27
GDP growth at 8%, beats RBI’s 7% forecast; 86% indicators accelerate: India’s economic growth could
remain stronger than expected in the first quarter of FY27, with SBI Research
projecting real GDP growth at around 8%, one percentage point above the RBI’s
7% projection. The estimate comes ahead of the official GDP data and is based
on a broad assessment of high-frequency indicators covering consumption and
demand, agriculture, industry, services, finance and other parts of the
economy. SBI Research said almost all major leading indicators corroborate its
8% growth estimate.
(Business Today)
India growth seen slowing
to 6.6% in FY27, says Fitch Group company BMI: Fitch Group company BMI on
Tuesday projected India's growth to slow to 6.6 per cent in the current fiscal
as the boost to the economy from last year's GST reforms wanes and elevated
inflation erodes household income. The Indian economy grew 7.7 per cent in
financial year 2025-26. India remains Asia-Pacific's fastest-growing large
economy, but the risks lie to the downside, mainly from a re-escalation in the
Middle East or a weaker monsoon, BMI said..
(Business Line)
AI & AI alone can help
limit AI frauds: RBI Governor: Reserve Bank of India Governor
Sanjay Malhotra on Tuesday called for increased use of artificial intelligence
(AI) in the banking system to stay ahead of fraudsters . “It is AI and AI alone
that can help limit AI frauds,” Malhotra said at the FIBAC 2026 conference in
Mumbai. “Fraud today moves at a speed of an (application programming interface)
API call. Rules-based fraud engines, however well-designed, are perpetually one
step behind the fraudsters, who adapt more frequently. It is only AI and
machine learning models, which continuously learn from these transaction
patterns, that can identify anomalies in real time, rather than after the loss
has occurred.” According to the governor, not just fraud detection but if used
intelligently, AI will save costs for the banking system, democratise credit,
give access formal credit to all sections of the society at reasonable rates.
(Financial Express)
IBA mulls regulatory
sandbox to counter Mythos threats: The Indian Banks’ Association
(IBA) has constituted a sub-committee to examine the need for and modalities of
setting up a regulatory sandbox that would allow banks to test their models
against Mythos, a senior official said. The sub-committee has been
formed under the IBA’s working committee, headed by State Bank of India
Chairman CS Setty. The industry body is also in discussions with the Institute
for Development and Research in Banking Technology, established by the Reserve
Bank of India, on the proposed framework.
(Financial Express)
Gold loans steal a march on
SBI Xpress Credit: The exponential rate of growth
for State Bank of India’s (SBI) gold loans is seriously denting its personal
loan business, with many customers opting for the former because of interest
rate arbitrage of almost 3%. Gold-backed loans have hit Rs 3.10 lakh crore in
quick time while Xpress Credit (the personal loan product of the bank), which
was once the lender’s fast-growing segment, has fallen behind. Among SBI’s loan
verticals, auto and Xpress Credit are showing below double-digit growth over
the last several quarters and the bank is working out a strategy to ensure
their turnaround.
(Financial Express)
CKYC 2.0 trial begins;
adoption holds the key: A trial run of the revamped Central KYC Records
Registry (CKYCRR 2.0) began on Monday, potentially paving the way for customers
to reuse verified identity records across banks, insurers and other financial
institutions without repeatedly submitting documents. The Central Registry of
Securitisation Asset Reconstruction and Security Interest of India (CERSAI),
which manages the registry, has started onboarding reporting entities onto the
new platform, with a production mock run underway till Friday this week.
Financial institutions will use the exercise to test their systems and prepare
for the transition from CKYCRR 1.0.
(Financial Express)
State Bank of
India set to raise funds through 5-year dollar bond: State Bank of India, India’s largest
lender, is in the market to raise funds through a five-year US
dollar-denominated bond, sources said, adding that the final amount that the
bank will raise will depend on how much it is able to compress the initial
price guidance of 120 basis points over the benchmark US Treasury yield. Funds
will be raised in one or more tranches of $250 million. ICICI Bank, the
country’s second-largest private sector lender, which raised $1 billion through
five-year senior unsecured dollar bonds late last month, was able to compress
its initial price guidance by 30 bps to finally raise $1 billion at a spread of
100 basis points over US Treasuries.
(Business Standard)
Sugar industry seeks 100%
exemption from mandatory jute packaging: Millers have asked the government for a total
exemption of sugar from compulsory jute packaging during Jute Year 2026–27,
claiming serious public health risks, quality incompatibility, and a mounting
economic burden on the industry and over 50 million sugarcane farmers. Sugar
mill owners have also demanded suspension of the mandatory jute packaging for
sugar until an independent expert study is completed.
(Business Line)
DPIIT, MSME Ministry sign
MoU to propel India's GI products into global markets: The Ministry of Micro, Small and Medium
Enterprises (MSME) and the Department for Promotion of Industry and Internal
Trade (DPIIT) signed a Memorandum of Understanding (MoU) on August 5 at Vanijya
Bhawan in New Delhi to accelerate the commercialisation, quality
standardisation, and market penetration of India's Geographical Indication
products. The collaborative framework aims to enhance the livelihoods of
indigenous artisans, weavers, and producers, while simultaneously strengthening
the country's One District One Product (ODOP) ecosystem.
(Business Line)
Apex cooperative body to
get more lending powers — All about the NCDC (Amendment) Bill, 2026: The government plans to broaden the mandate of
the National Cooperative Development Corporation (NCDC) by allowing it to
extend loans and grants directly to cooperative societies engaged in diverse
activities beyond the conventional ones. The National Co-operative Development
Corporation (Amendment) Bill, 2026, introduced in the Lok Sabha on Monday, also
allows the corporation to participate in the share capital of any co-operatives
or any entity engaged in co-operative development, with the central
government’s approval. The legislation proposes to expand the definition
of ‘foodstuffs’ to include any other food items notified by the Centre. The
geographical restriction applicable to industrial goods is proposed to be
removed. This will enable assistance for such activities irrespective of their
location.
(Financial Express)
SEBI proposes wider FPI
access to commodity derivatives: The Securities and Exchange
Board of India (SEBI) on Tuesday proposed widening the participation of foreign
portfolio investors (FPIs) in exchange-traded commodity derivatives. This
includes permitting them to trade physically settled non-agricultural commodity
contracts. FPIs are currently allowed to participate only in cash-settled
non-agricultural commodity derivatives and indices comprising such commodities.
SEBI has proposed allowing FPIs to trade non-agricultural index derivatives
irrespective of whether their underlying contracts are cash-settled and
permitting them to participate in non-cash-settled non-agricultural commodity
derivatives.
(Business Line)
Centre's net direct tax
collection surges 23% to Rs.8.11 trillion till Aug 10: Central government’s net direct tax collection
rose 23.09 per cent annually to Rs.8.11 trillion as of August 10, driven
particularly by strong growth in non-corporate tax and Securities Transaction
Tax (STT) receipts, even as refunds rose at a slower pace, provisional data
released by the income-tax department on Tuesday showed. This represents close to
a third of the full year direct tax collection target of Rs 26.97 trillion. Direct
tax revenue collection so far this year has grown faster than the 15.25 per
cent growth needed to achieve the full year target this year, compared to last
fiscal’s actual collection.
(Business Standard)
One-year cooling-off time for
SEBI brass may stay: The government will likely retain the one-year
cooling-off period for the SEBI chairperson and whole time members before they
can take up positions with market participants, instead of extending it to two
years as suggested by a Parliamentary panel. The government is also unlikely to
act on the recommendations of the Standing Committee on Finance to examine the
need for an appropriate statutory and regulatory framework for virtual digital
assets (VDAs), or crypto assets. The panel, which recommended several changes
to the securities markets code in its report tabled in Parliament on July 23,
proposed extending the cooling-off period for the Sebi top brass from the
extant one year to two years before they can take up positions with market
participants.
(Financial Express)
ADP NATIONAL EMPLOYMENT REPORT
· The ADP National Employment Report is a monthly report of
economic data that tracks trends in the level of nonfarm private employment in
the U.S. It is published by Automatic Data Processing and provides a breakdown
of data by industry, region, and establishment size.
·
This report is published two
days before the Bureau of Labor Statistics (BLS) employment report and is used
by investors as a preview of the official BLS report.
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 : 95.4321
INR
/ 1 GBP : 128.8839
INR
/ 1 EUR : 110.0882
INR
/100 JPY: 59.9400
EQUITY INDEX
Sensex:
78154.25 (-388.19)
NIFTY:
24471.70 (-112.10)
Bnk NIFTY: 57446.25 (-240.70)
International Youth Day: 12th
August is observed annually on August 12. Established by the United Nations in
1999, it celebrates young people's contributions to society, raises awareness
of cultural and legal issues affecting youth, and highlights the importance of
youth participation in global development.
Historical events: August 12 marks
major historical milestones, including the start of East India Company rule via
the Treaty of Allahabad (1765), the birth of space pioneer Vikram Sarabhai
(1919), IBM's launch of the personal computer (1981), and the global observance
of International Youth Day.
****Have a nice Day****
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