Issue: 1215
· Reserve Bank of India may
hike policy rates twice in FY27 amid inflation concerns and slowing growth
forecasts.
· Indian banks paused fresh
Gulf exposure amid prolonged geopolitical tensions linked to the Iran crisis.
· India’s GDP growth for Q4
FY26 is projected at 7.2%, while FY27 growth is estimated at 6.6%, according to
an SBI research report.
· The Finance Ministry reviewed
a proposal to enhance insurance cover under PMJJBY and PMSBY schemes from Rs.2
lakh to Rs.5 lakh.
· Public sector and private
banks accelerated focus on retail and SME credit segments to support
profitability and growth.
· Economists observed that
deposit growth continued lagging behind credit growth, creating pressure on
banks’ liquidity coverage ratios.
One of the biggest crises
of this decade': PM Modi asks Indians to cut imports, embrace WFH: Prime Minister Narendra Modi,
on Monday, described the ongoing West Asia conflict as “one of the biggest
crises of the decade” after the Covid-19 pandemic, and said India would
overcome the challenge through collective public participation and responsible
economic behaviour. He urged citizens to reduce
fuel consumption, avoid unnecessary foreign exchange spending and adopt more
sustainable practices to help the country navigate global economic disruptions.
(Moneycontrol)
VB-G RAM G replacing
MGNREGA to come into force across India from July 1: The Centre, on Monday,
formally notified the implementation of Viksit Bharat – Guarantee for
Employment and Livelihood Mission (Rural) (VB–G RAM G Act) that would replace
the MGNREGA across the country from July 1. The existing e-KYC verified MGNREGA
job cards will remain valid until the new “Gramin Rozgar Guarantee Cards” are
issued, it said. The notification added that workers without job cards can
continue to register at the gram panchayat level. Under VB-G RAM G Act, every
rural household whose adult members volunteer to undertake unskilled manual
work will be entitled to 125 days of guaranteed wage employment in a financial
year. This is an increase from the existing 100-day guarantee under MGNREGA. Employment
will have to be provided within the prescribed timeframe, failing which workers
will remain eligible for unemployment allowance in accordance with the
provisions of the Act.
(Business Standard)
Rupee weakens to fresh low
of 95.31 per dollar amid West Asia conflict: The Indian rupee closed at a
fresh low of 95.31 against the US dollar on Monday, as rising geopolitical
tensions in West Asia and Prime Minister Narendra Modi’s austerity remark
weighed on sentiment. The domestic currency depreciated nearly 0.9 per cent
during the day, making it the worst-performing Asian currency. The rupee had
closed at 94.48 in the previous session. In 2026 so far, the Indian unit has
fallen 5.7 per cent against the dollar.The sharp decline came after US
President Donald Trump termed Iran’s peace proposals “unacceptable”, keeping
fears of further escalation alive. Brent crude prices rose to around $105 per
barrel, while the dollar index moved above the 98 mark, keeping the greenback
well bid.
(Business Standard)
Canara Bank: Q4FY26 profit
fell by 10%: Canara
Bank posted a 9.94% Year-on-Year (YoY) decline in its Q4FY26 net profit at Rs
4,505.57 crore, down from Rs 5,002.66 crore. The bank’s FY26 profit increased
to Rs 19,186.67 crore, up 12.69% YoY from Rs 17,026.67 crore reported in FY26. The
public sector lender’s gross NPA ratio stood at 1.84% in the March quarter. Canara
Bank’s interest earned during the quarter came in at Rs 318.38 billion.
Meanwhile, provisions and contingencies stood at Rs 9.92 billion during the
reporting period.
(Financial Express)
Bank of Baroda aims 10 per
cent corporate growth in FY27, Rs 50,000 cr loans in pipeline: Bank of Baroda plans a 10
percent expansion of its corporate lending by FY27. A Rs 50,000 crore pipeline
is in place, with significant demand for investment loans. The bank will focus
on external benchmark lending rates to improve margins. Deposit costs remain a
challenge, but overall funding is sufficient. Asset quality is strong,
particularly in the MSME sector.
(Economic Times)
Big banks urge RBI to rethink
uniform forex exposure cap: Large banks have sent feelers
to the regulator to rethink the blanket rule on their uncovered foreign
currency exposure. As rupee came under attack, the Reserve Bank of India (RBI)
had imposed a $100 million uniform limit on all banks' net open position (NOP),
which is the difference between a bank's foreign currency assets and
liabilities at the end of each business day. In recent interactions with
RBI, officials of big state-owned and private sector banks have suggested a dynamic
regulation on the unhedged forex exposure, by linking an institution's NOP to
its size and flows, two bankers told ET.
(Economic Times)
RBI to conduct Rs.50,000
crore VRR auction as overnight rates rise: The Reserve Bank of India plans to
conduct a three-day Variable Rate Repo (VRR) auction worth Rs.50,000 crore on
Tuesday to address evolving liquidity conditions in the banking system, the
central bank said in a release on Wednesday. Net liquidity in the banking
system was in surplus of Rs.2.2 trillion on Sunday, latest RBI data showed. Market
participants said the decision came after the weighted average call rate (WACR)
surged beyond the repo rate to 5.31 per cent on Monday, against the previous
close of 5.18 per cent. The policy repo rate currently stands at 5.25 per cent.
(Business Standard)
Fintech firms
form SRO to boost trust in digital precious metals market: At a time when regulatory uncertainty
exists around the digital gold space, members of the fintech ecosystem have
established a self-regulatory organisation called the Digital Precious Metals
Assurance Council of India (DPMACI) to enforce governance and transparency
among companies. Members include sellers and distributors of digital gold and
silver in the country such as MMTC-PAMP, SafeGold, Augmont, PhonePe, BharatPe,
MobiKwik, Gullak, Lenden Club and CRED. The SRO will be led by Nirupama
Soundararajan, who has joined the association as an independent chairperson.
(Business Standard)
India’s manufacturing push:
Govt identifies 100 products for Made-In-India boost: The government is in the process of
identifying 100 products that are not being manufactured in India for special
focus like addressing technology gaps so their capacities are created locally
for domestic and export markets, a senior official said Monday. “We have
identified a set of products. Some very interesting products have come up in
the auto sector and motorcycles. We came to know that there are a lot of things
that are not getting manufactured in India. We have the capability, perhaps
some gaps in technology exist,” secretary in the Department for Promotion of
Industry and Internal Trade Amardeep Singh Bhatia said at CII’s Annual Business
Summit. Another effort of the government is to push for manufacturing of
intermediate goods.
(Financial Express)
Govt plans to plugs EV
charging gaps with unified platform: The Centre set to release the unified national
platform to integrate electric vehicle (EV) charging networks operated by
automakers, oil marketing companies and private charge point operators, in a
move aimed at removing fragmentation in the country’s fast-growing EV
ecosystem. Under the Ministry of Heavy Industries’ Unified Bharat e-Charge
(UBC) initiative, charging networks run by companies. Modelled on the lines of
a central digital repository, the platform will allow EV users to seamlessly
locate, book, access and pay for charging stations across networks through a
single interface, irrespective of the operator, while also offering real-time
information on charger availability, uptime, charging speed and tariffs.
(Financial Express)
Ashok Kumar Panda takes
charge as SAIL chief, targets 35 MTPA capacity: Ashok Kumar Panda has assumed charge as
chairman and managing director (CMD) of Steel Authority of India Limited (SAIL)
from May 9, the steel ministry said on Monday. Prior to this, Panda served as
Director (Finance) and also held additional charge of Director (Commercial) for
around nine months.
(Business Standard)
Finance Ministry approves
higher fertiliser subsidy, builds buffer stock amid global crisis: The Finance Ministry has
approved additional fertiliser subsidy for the June quarter as the West Asia
crisis pushes up global prices and raises concerns over supplies ahead of the
kharif sowing season, a government official said. At the same time, the government
has stepped up procurement to avoid shortages. Fertiliser availability has
increased by nearly 21 lakh tonnes, while an additional 7 lakh tonnes of NPK
(Nitrogen, Phosphorus, and potassium) fertilisers are expected to arrive at
Indian ports in May and June, the official said.
(Moneycontrol)
SEBI proposes
‘GARUDA’ green-channel for faster AIF scheme launches: SEBI on Monday proposed a new
green-channel mechanism — GARUDA — for alternative investment funds (AIFs) to
launch schemes to 10 working days of filing their placement memorandums from
the current 30 days, in a bid to speed up the deployment of capital by them. GARUDA,
or Green-Channel: AIF Rollout Upon Document Acknowledgement, aims to streamline
the Processing of Placement Memorandums (PPMs) filed with SEBI and further ease
fundraising by AIFs. Under the proposal, regular AIF schemes would be allowed
to launch within 10 working days of filing the PPM with SEBI through a merchant
banker, unless the regulator raises objections. At present, AIFs can launch
schemes only after 30 days from filing, SEBI said in its consultation paper..
(Business Line)
Centre notifies
rules for four labour codes: Overtime at double rate, mandatory health checks
kick in:
The
Central government on Friday notified final rules under the four labour codes,
bringing into force a unified framework aimed at modernising labour
regulations, ensuring minimum wages, and extending universal social security to
all workers. The four codes, the Code on Wages, 2019; the Industrial Relations
Code, 2020; the Code on Social Security, 2020; and the Occupational Safety,
Health and Working Conditions Code, 2020, came into effect on November 21. The
new framework introduces several worker-friendly measures, including mandatory
issuance of appointment letters, free annual health check-ups for workers aged
40 and above, and equal pay, work, and opportunity for women including
provisions for working different shifts. It also caps weekly working hours at 48,
with at least one weekend off or rest day and overtime payment for additional
hours. The Code on Industrial Relations provide
for establishing a National Reskilling Fund to support workers who lose jobs
due to technological or economic changes. According to rule 37 of the
Industrial Relations (Central) Rules, 2026, every employer who has laid off a
worker in an industrial establishment must contribute 15 days’ salary of the
employee within ten days of the date of the layoff to the reskilling fund. The
new rules mandate that workers are entitled to overtime wages at twice the
normal rate (double wages) for work exceeding 8 hours in a day (for daily-rated
workers) or 48 hours in a week (for others). Overtime must be paid at the end of each
wage period, with fractions of an hour calculated as 30 minutes or a full hour.
Employers are prohibited from allowing any worker to perform more than 144
hours of overtime in any quarter of the year.
(Financial Express)
OUTPUT GAP
§ The
term output gap refers to the difference between the actual output of an
economy and the maximum potential output of an economy expressed as a
percentage of gross domestic product (GDP). A country's output gap may be
either positive or negative.
§ A
negative output gap suggests that actual economic output is below the economy's
full capacity for output while a positive output suggests an economy that is
outperforming expectations because its actual output is higher than the
economy's recognized maximum capacity output.
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 : 95.2029
INR
/ 1 GBP : 129.3826
INR
/ 1 EUR : 111.9262
INR
/100 JPY: 60.6000
EQUITY INDEX
Sensex:
76015.28 (-1312.91)
NIFTY:
23815.85 (-360.30)
Bnk NIFTY: 54439.90 (-870.65)
International
Nurses Day: May 12, 2026, is
primarily celebrated as International Nurses Day, honoring the birth
anniversary of Florence Nightingale and the contributions of nurses worldwide.
It is also recognized as International ME/CFS and Fibromyalgia Awareness Day,
and falls on a Tuesday in 2026.
Historical
events: May 12 marks
significant historical milestones, most notably the birth of modern nursing
founder Florence Nightingale (celebrated as International Nurses Day), the 1459
founding of Jodhpur by Rao Jodha, and the 1949 end of the Berlin Blockade. Key
events include Vijaya Lakshmi Pandit becoming India’s first female ambassador
to the U.S. (1949), the 2008 Sichuan earthquake in China, and the 2026 Somnath
Swabhiman Parv.
****Have a nice Day****
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