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The Banking Frontline 17 August 2026

Issue: 1298


·    PM GatiShakti: 396 infra projects worth Rs 18.66 lakh crore recommended for approval.

·    Oppo, OnePlus, Realme phones to be made by Amber Enterprises in India from FY28.

·    India’s chemicals industry targets up to $81 billion in exports by 2030: NITI Aayog.

·    FinMin asks govt entities against setting high turnover, payroll criteria in GeM consultancy tenders.

·    India records Rs.7.73 lakh crore exports in FY26, up 21.56% from FY24 under STP scheme.

·    Wholesale inflation moderates to 9.78% in July 2026.

·    PM announces AI skilling of 1 crore youth in one year.

·    PM Targets for Six Crore Lakhpati Didis.

·    WhatsApp Pay's UPI volumes doubled to 168 million in July.


India Inc hails PM's growth vision, backs self-reliance push: India Inc on Saturday welcomed Prime Minister Narendra Modi's Independence Day address, saying it looks forward to working with the government to translate his announcements into actionable programmes to boost investment, jobs, innovation and manufacturing. Chandrajit Banerjee, Director General, CII, said, "As we mark 80 years of Independence, Prime Minister Narendra Modi's address puts people, sustainability and India's global strengths at the centre of our development journey. "His call for Atmanirbhar Bharat, Make in India and Vocal for Local reflects our growing confidence to build a self-reliant, future-ready nation, one that has moved from being among the 'Fragile Five' to the world's fastest-growing major economy in just over a decade".

(Business Line)

FinMin nudges ministries to switch to producer price index for rate adjustments in govt contracts:  The finance ministry has nudged all ministries and departments to move to Producer Price Index (PPI), from the current Wholesale Price Index (WPI), for rate escalation and adjustment clauses in future government procurement contracts. The Department of Expenditure, in a communication to all ministries and departments, said that PPI is a more internationally accepted index compared to WPI used in government contracts to define price escalation. For the first time, the commerce ministry has started issuing monthly PPI data for both goods and services since June to better reflect price movement at the producer's level, thus paving the way for phasing out wholesale price inflation numbers in the next five years. "Ministries/Departments are encouraged to adopt Producer Price Index (PPI) in place of Wholesale Price Index (WPI) in all price escalation clauses of future contracts, once PPI becomes available," the expenditure department said in an office memorandum dated July 13, which was sent to all ministries.

(Business Line)

PM Modi invokes ‘Shakti ki Saptdharas’ to boost Viksit Bharat vision:  Prime Minister Narendra Modi on Saturday invoked “Shakti ki Saptdharas” or “Seven Streams of Strength” — manufacturing, agriculture and food processing, technology and innovation, Gati Shakti, defence, the green and blue economy, and soft power — as pillars to propel India towards greater heights. He also urged political parties to help implement 33 per cent reservation for women in Parliament and state Assemblies. Addressing the nation from the ramparts of the Red Fort on the 80th Independence Day, he said: “Our dream is that when India celebrates 100 years of independence, it touches new heights.” The government has long set 2047 as the target for achieving developed-economy status.

(Business Line)


Indian Bank plans to garner $400 million via ECB this week: MD Binod Kumar: Indian Bank plans to raise $400 million via External Commercial Borrowings this week. The bank may raise an additional $600 million through ECB before December 2026. It also aims to gather USD 2 billion from FCNR(B) deposits, seeing good demand. The Reserve Bank of India has already closed its concessional swap facility early. These efforts support the bank's business growth and digital initiatives.

(Economic Times)

Indians opt for higher life insurance cover as average premium rises 43%: Average life insurance premiums rose significantly between FY2021 and FY2025. Policyholders are increasingly choosing higher sum assured amounts for their policies. The proportion of policies with low cover levels has notably declined. Higher value sum assured categories have gained considerable market share. This trend indicates a growing commitment to financial security among policyholders.

(Economic Times)

Banks race for dollar deposits as RBI curtails FCNR (B) swap window: After the Reserve Bank of India’s (RBI’s) surprise decision on Friday to close a concessional dollar-rupee swap facility earlier than originally announced, banks are preparing to intensify mobilisation of foreign currency non-resident (bank), or FCNR (B), deposits for the next two weeks, urging non-resident Indian customers to make the most of the available time, bankers said. The swap facility, announced on June 8 to boost stable dollar inflows, was originally available till the end of September but the central bank last week cut short the window to August-end in view of the “encouraging response” to the facility and the “resultant forex inflows.” Bankers said lenders will advance the staggered mobilisation they originally planned over six weeks by proactively engaging with NRI customers to speed up the process.

(Business Standard)

DFS to hold PSB, PFI confluence on sector's road map for Viksit Bharat: The finance ministry’s Department of Financial Services (DFS) will hold a two-day confluence of public sector banks (PSBs) and public financial institutions (PFIs) in New Delhi from Monday to discuss next-generation reforms for the banking sector. Charting the course for banking in a “Viksit Bharat” will be at the centre of the ‘PSB Confluence’, according to people aware of the matter. The conclave will provide a platform to share ideas and best practices on deposit mobilisation, supporting the investment cycle and expanding credit. Deposit mobilisation is expected to be a key focus as PSBs continue to lag private peers in deposit growth. Participants are expected to discuss ways to attract a larger share of household savings into the banking system, one of the persons said. The discussions come as PSBs expand beyond traditional banking into wealth and asset management to deepen retail relationships and capture a larger share of financial savings.

(Business Standard)

Punjab & Sind Bank eyes QIP option to raise funds, cut govt stake: MD Saha: Public sector lender Punjab & Sind Bank is exploring raising funds through various means, including the QIP route to dilute the government's stake to meet Sebi's minimum public shareholding (MPS) norms. As per the Securities and Exchange Board of India (Sebi), all listed companies must maintain an MPS of 25 per cent. "We have got board approval for fundraise through qualified institutional placement (QIP) and others means as part of effort to bring down the government holding in a phased manner," Punjab & Sind Bank MD and CEO Swarup Kumar Saha told PTI in an interview.

(Business Standard)


PM Modi sets a target of featuring 50 Indian companies in Fortune 500: Prime Minister Narendra Modi on Saturday changed the scale of India’s ambition by setting a target of bringing 50 companies among Fortune 500 companies and an Indian bank among top global banks. As on date, there are nine Indian companies in the list of Fortune 500 and they are - Reliance Industries, LIC, Indian Oil, State Bank of India, ONGC, BPCL, Tata Motors, HDFC Bank and ICICI Bank

(Business Line)

Govt mandates alternative fuel facilities at every third fuel outlet: The government has mandated that at least every third retail outlet (RO) of fuel marketing entities must offer a “new generation alternative fuel”, including CNG, LNG, biofuels or electric vehicle (EV) charging and battery-swapping facilities, within three years of their commissioning.The move, notified in the Gazette on August 10, seeks to accelerate the adoption of cleaner fuels, reduce dependence on imported crude, curb pollution and promote energy security and farmers’ income while attracting private investment into fuel retailing.

(Business Line)

PM announces more Semiconductor Plants to Strengthen Self-Reliance: The Prime Minister highlighted the critical role of semiconductor chips in the digital and technological world and said India was moving towards self-reliance in this sector. He said three semiconductor plants had already started and production from these facilities had begun to be exported. The Prime Minister further said that another five-seven or eight semiconductor plants would come up in the coming seven-eight years, and described self-reliance in semiconductors as a pathway towards Viksit Bharat.

(PiB)


Income Tax Department notifies rules for foreign assets disclosure scheme; window opens August 16: The Income Tax Department has notified detailed rules for the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026, a day before the one-time window opens on August 16. The scheme allows eligible taxpayers to declare undisclosed foreign assets or income of up to Rs 1 crore, or foreign holdings of up to Rs 5 crore that were taxed but never reported in their returns, by paying a specified tax or fee. “It enables eligible taxpayers to declare certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets, on payment of a specified tax or fee,” the Central Board of Direct Taxes said in a set of FAQs. The department will process all declarations online through the Principal Director General or Director General of Income-tax (Systems).

(Moneycontrol)

PM Modi urges youth to dream big, highlights Rs.1 lakh crore Innovation Fund: Prime Minister Narendra Modi on Saturday exhorted India’s youth to dream big, assuring them of resources and support, as he highlighted the growth of India’s startup ecosystem and the government’s Rs 1 lakh crore Innovation Fund to support ideas and capabilities. Addressing the nation on the 80th Independence Day, Modi placed young Indians at the centre of the country’s journey towards becoming a developed nation, saying they would not only play a major role in achieving the goal but would also be its biggest beneficiaries. Modi said more than 2.5 lakh registered startups have been created under the Startup India campaign, with young entrepreneurs not only creating work for themselves but also providing employment to others.

(Business Line)

Project Insight to be implemented from January 27, 2028; likely to curb delay in Income tax refunds: Wait for income tax refund may be reduced significantly as the Finance Ministry is planning to go live with Project Insight 2.0 from January 27, 2028. According to the Ministry, this AI based mechanism can separate genuine filings from suspicious ones. This implementation of this mechanism is critical as average delay in getting refund has surged to 35 days in FY 26 (as on January 31, 2026) from 24 days in FY24. During the same period, number of refunds issued after 90 days jumped to around 27 lakhs in FY26 (as on January 31, 2026) from around 12.73 lakhs in FY24.

(Business Line)


WEAK SISTER

·        A "weak sister" describes the least dependable component in a process or group that can undermine the whole. The term is often used in finance to describe an underperforming investment, business, or even an economy that creates problems for stakeholders.

·        Spotting a weak sister helps investors and advisors manage risk and improve portfolio results. For example, one lagging asset in a diversified portfolio can drag down overall returns.

·        Weak sisters are what hold someone or something back. It could be a malfunctioning part of a team-oriented task, such as the slowest member of an assembly line or a sluggish marketing team. Alternatively, it may describe a security, economy, or business unit that performs worse than others.


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 : 95.4263

INR / 1 GBP : 128.8344

INR / 1 EUR : 110.1305

INR /100 JPY: 59.3900

EQUITY INDEX

Sensex: 78009.25 (-70.71)

NIFTY: 24366.00 (-29.85)

Bnk NIFTY: 57491.10 (-144.15)


Historical events: August 17 marks significant milestones in history, notably the public release of the Radcliffe Line boundary award in 1947 that finalized the borders between India and Pakistan, the execution of Indian revolutionary Madan Lal Dhingra in London in 1909, and Indonesia's declaration of independence from Dutch rule in 1945.


****WISHING A NICE DAY****


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