Issue: 1270
· Rupee falls 57 paise to 96.20
against dollar; further weakness likely, say analysts.
· IDBI Bank sale back on track
as Fairfax, Emirates NBD up bids.
· Tata Group remains India’s
most valuable brand for 18th consecutive year according to a report by Brand
Finance.
· Banks put up Rs 15K-crore
fresh NPAs for sale in Q1.
· Rupee breaches 96/$; 10-year
bond yield rises 6 bps on oil price surge.
· Insurance distribution lifts
fee income at most public sector banks in FY26.
Trump announces full
blockade on Iranian shipping, drops 20% Hormuz toll plan: US President Donald Trump on
Tuesday announced a full blockade on ships linked to Iran while abandoning his
proposal to impose a 20% reimbursement fee on cargo transiting the Strait of
Hormuz. Instead, he said Gulf nations would deepen trade and investment ties
with the United States, replacing the controversial toll proposal. The
announcement came just a day after Trump unveiled the 20% fee, which he had
described as compensation for the US military's role in securing one of the
world's most important oil shipping routes. In a post on Truth Social ahead of
a meeting with Iraq's Prime Minister at the White House, Trump said the Strait
of Hormuz would remain open to all international shipping except vessels
connected to Iran.
(Business Today)
Govt releases new monthly
Services Production Index; Here's what the first data shows: With the services sector the
most dominant part of the Indian economy, the government on Tuesday released a
new index to measure monthly production of about 19 services.The data from the
Index of Services Production for April revealed that 14 of the 19 sub-sectors
reported double-digit growth as compared to April 2025.
Top
sub–sectors reporting strong growth in the April 2026 quarter are accommodation
and food (37.2%), retail trade (30.8%), administrative and support services
(28.7%) and real estate (27.7%). Air
transport was the only sub-sector reporting negative growth of -13.9% in April
2026.
(Business Today)
WPI inflation hits a series-high at 9.9% in June: The wholesale price inflation
(WPI) rate based on the 2022-23 series rose to its highest at 9.87 per cent in
June from 9.68 per cent in May, as a broadbased pickup in prices of food and
primary articles more than offset a moderation in energy costs, according to
the data released by the Ministry of Commerce and Industry on Tuesday. The
all-commodities index increased to 110.2 in June from 109.9 in May. The
ministry also released India’s goods output producer price index (PPI), where
the inflation rate rose to 9.57 per cent in June from 9.38 per cent in May,
broadly tracking wholesale prices.
(Business Standard)
RBI Governor meets MD &
CEOs of Public Sector Banks and select Private Sector Banks: Reserve Bank of India held its
half-yearly meetings with the Managing Directors and Chief Executive Officers
of Public Sector Banks and select Private Sector Banks in Mumbai on July 14,
2026, chaired by the Governor. The Governor acknowledged that the banking
sector has witnessed broad-based growth and he urged the banks to continue to
meet the needs of all segments and sections of the economy with renewed vigour
and prudence. He suggested banks to leverage advanced technologies, including
AI, to expand their reach, improve operational efficiency, reduce costs and
enhance customer experience, while ensuring robust cybersecurity, strong
internal controls and safeguards against fraud and data misuse. He also
stressed the need to cultivate a passion for excellence in customer service by
placing customers at the heart of banking operations.
(RBI Press Release)
RBI proposes easier bank
share acquisition rules for MFs, insurers, pension funds: RBI has proposed easing the
approval process for institutional investors looking to acquire shares in
commercial banks, a move aimed at reducing regulatory friction for mutual
funds, insurance companies and pension funds while maintaining oversight over
significant shareholdings. In a draft amendment to its Reserve Bank of India
(Commercial Banks – Acquisition and Holding of Shares or Voting Rights)
Directions, 2025, the central bank has proposed introducing a one-time approval
mechanism for eligible institutional investors making subsequent acquisitions
of major shareholding in the same banking company.
(Business Today)
Government, LIC evaluate
revised bids for IDBI Bank stake sale: The Government of India and
state-run Life Insurance Corporation of India (LIC) are moving ahead with the
strategic sale of their combined 60.7 per cent stake in IDBI Bank, with revised
financial bids from Canada’s Fairfax Financial Holdings and Dubai-based
Emirates NBD currently under evaluation. The disinvestment process is likely to
be concluded within a month, government sources told ANI on Tuesday. According
to the sources, the revised bids are being examined, and a senior panel of
bureaucrats reviewed the progress of the transaction during a meeting held on
Monday.
(Business Line)
RBI’s deposit mobilisation
drive attracts $10-11 billion: The Reserve Bank of India’s
(RBI) dollar mobilisation measures announced in the June monetary policy have
attracted inflows of $10-11 billion so far, according to sources. The response
from banks to raise foreign currency funds through the FCNR(B), external
commercial borrowing (ECB) and overseas foreign currency borrowing (OFCB)
routes has been encouraging, a person aware of the discussions between the
government and the RBI noted. The authorities expect inflows of around $80
billion through these channels. In its June 5 monetary policy, the RBI
announced a comprehensive package that included a par dollar-rupee swap
facility for fresh Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits and
a concessional swap facility for eligible ECBs and OFCBs..
(Financial Express)
FCNR(B) offers overtake
domestic rates at many banks: The foreign currency
non-resident (bank), or FCNR(B), deposit scheme, launched to support the rupee
and bridge the balance of payments deficit, is also expected to ease banks’
funding pressures amid sluggish deposit growth. Many lenders have, therefore,
aggressively priced these deposits, with some offering rates higher than those
on comparable domestic deposits. Punjab National Bank for instance, is offering
6.5 % on five-year FCNR(B) deposits, compared with 6.35 % on domestic deposits.
Union Bank of India offers 6.2-6.6 % on dollar deposits with tenures of three
to five years, versus 6.0-6.1% on domestic deposits. Similarly, Canara Bank pays
6.5 % on FCNR(B) deposits for three to five years, compared with 6.25 % on
domestic deposits.
(Financial Express)
Gautam Adani tops Hurun
real estate rich list, overtaking DLF's Rajiv Singh: Adani Properties emerged as the biggest value
creator in India's real estate sector in 2026, adding Rs.38,000 crore in
valuation and propelling Gautam Adani and family to the top of the Grohe-Hurun
India Real Estate Rich List. Despite the surge, DLF retained its position as
India's most valuable real estate company. Adani Properties recorded the highest absolute gain
in valuation among Indian real estate companies this year, rising 72.5%
year-on-year to Rs.90,400 crore, according to the 2026 Grohe-Hurun India Real
Estate 150 report. The sharp increase in valuation also propelled
Gautam Adani and family to the No. 1 position on the Grohe-Hurun India Real
Estate Rich List for the first time, with a real estate wealth of Rs.90,400
crore, up 73% over the previous year. The ranking reflects the family's full
ownership of Adani Properties.
(Business Today)
Amid US probe, India set to
prohibit import of goods manufactured using forced labour: Amid an ongoing investigation by the US on
imports of goods using forced labour by nearly 60 countries, India, too, has
now issued guidelines prohibiting such imports. New Delhi has inserted a new
paragraph in its Foreign Trade Policy. To this effect, the Directorate General
of Foreign Trade has notified guidelines prohibiting the import of goods
produced or manufactured wholly or in part using forced labour. The Central government
may from time to time specify the goods whose imports shall be prohibited under
this provision following findings of any inquiry or any material that may come
up, it said.
(Business Today)
Zepto bets on
premium grocery with launch of Select: Quick commerce platform Zepto is set to
launch Select, a dedicated premium grocery service within its app, marking its
entry into the fast-growing premium grocery segment as competition intensifies
among quick commerce players. The service, expected to go live in the coming
weeks, will offer a curated assortment of imported food, gourmet groceries and
premium consumer products through a separate tab on the Zepto app, according to
people familiar with the matter. The offering will compete with category
pioneer FirstClub and Blinkit Gourmet, which have built businesses around
premium and imported products.
(Business Standard)
Direct tax collection jumps
16% to Rs.6.5 lakh crore: Driven by a robust surge in
corporate tax, India's net direct tax collections grew by more than 16 per cent
between April 1 and July 16, the Income Tax Department announced on Tuesday.
The strong momentum has raised expectations that the government will meet or
exceed its fiscal targets as outlined in the budget estimates. For the current
fiscal year (FY27), the government has set a direct tax collection target of Rs.26.97
lakh crore, representing a 15 per cent growth projection over the Rs.23.40 lakh
crore collected in FY26.
(Business Line)
RBI amends bank board
governance norms, new rules to kick in from Oct 1: The Reserve Bank on Tuesday came up with the
final amendments to the 'matters to be placed before bank boards' aimed at
enhancing ease of doing business at lenders. The new rules will be applicable
from October 1 this year, the central bank said in a notification. RBI said the new set of
rules adopts a principles-based approach that focuses on giving bank boards the
freedom to formulate their agendas based on each bank's specific priorities. However, it was quick to
add that board oversight on critical areas like risk, compliance, financial
performance, and customer protection continues. As per the amended rules, a bank board may decide
on a mechanism for implementing decisions taken at meetings and did not accept
the suggestions seeking a continuation of the 'action taken report' mechanism.
(Economic Times)
IFSCA proposes direct
listing at Gift City without a public offer: The International Financial Services Centres
Authority (IFSCA) has proposed allowing companies to directly list their equity
shares on stock exchanges in GIFT City without making a public offer. However,
this would be subject to eligibility thresholds, disclosure requirements, and
price discovery mechanisms, according to a consultation paper. Under the draft
framework, issuers that are not listed in India or overseas can list directly
if they meet at least one of the three financial criteria. They must have
minimum operating revenue of $20 million, pre-tax profit of $1 million, or a
post-listing market capitalisation (mcap) of $50 million. Globally, direct
listings without a public offer are already permitted on major exchanges such
as the NYSE and Nasdaq in the US, the London Stock Exchange, and the Tokyo
Stock Exchange.
(Business Standard)
FINANCIAL
ACCELERATOR MECHANISM
§ The
Financial Accelerator is an economic theory explaining how imperfections in
credit markets amplify business cycles. During periods of economic expansion,
rising asset prices improve borrowers' net worth, enabling easier access to
credit and encouraging further investment and consumption. Conversely, during downturns,
falling asset values weaken collateral, restrict lending, reduce investment,
and deepen the recession, thereby reinforcing the economic slowdown.
§ This
mechanism highlights the interconnectedness of financial markets and the real
economy and underscores the importance of macroprudential regulations, capital
buffers, and timely central bank interventions to prevent financial shocks from
escalating into systemic crises.
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 : 96.1138
INR
/ 1 GBP : 128.3750
INR
/ 1 EUR : 109.4557
INR
/100 JPY: 59.2000
EQUITY INDEX
Sensex:
77054.94 (-561.46)
NIFTY:
24052.05 (-158.95)
Bnk NIFTY: 57462.30 (-669.15)
World Youth Skills Day: July 15 is
globally recognized as World Youth Skills Day by the United Nations, a day
dedicated to highlighting the strategic importance of equipping young people
with technical and vocational skills for employment and entrepreneurship.
Historical events: July 15 marks
several milestones globally, including the Christian seizure of Jerusalem
during the First Crusade (1099) and the 1916 founding of the Boeing Company. In
India, it is remembered as the birth anniversary of the visionary leader and
freedom fighter K. Kamaraj (1903) and the day (1955) the Bharat Ratna was
announced for Jawaharlal Nehru.
****Have a nice
Day****
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