Issue: 1350
· US Budget deficit surges 12%
to nearly $2 trillion in 2026 as debt interest, Trump tariff refunds bite.
· Federal Bank evaluating
acquisition opportunities, but no immediate deals: MD and CEO KVS Manian.
· After Rs 52,878-crore IDBI
Bank bid, Fairfax eyes more investments in India: Canada minister.
· HDFC Mutual Fund lists FTSE
India Equity ETF on NSE.
· Canara HSBC Life launches
Dollar-denominated ULIP for NRIs via GIFT City on Policybazaar.
· Federal Bank logs highest ever
net profit at Rs.1,386 crore in Q2FY27.
Brent crude hits $110 for
first time since May as Middle East conflict, Russia supply risks fuel rally: Brent oil hit $110 a barrel for the first time
since May as prospects for imminent supply relief dwindle, prompting traders to
ramp up bets on higher prices ahead of the weekend. Brent rose 3.7% as bullish sentiment crystallized
in the course of a session punctuated by reports of ongoing conflict in major
export centers. Iran-backed Houthi rebels continue to pummel Saudi Arabia with
missile and drone strikes, while Russia and Ukraine exchange tit-for-tat
attacks on energy infrastructure. US lawmakers introduced a bill Friday to block US
President Donald Trump’s deal with Moscow to release several hundred million
barrels of diesel.
(Moneycontrol)
India joins US, UK among
leading sources of private capital mobilised by World Bank Group: Ajay Banga: India, the United States and
the United Kingdom led the sources of private capital mobilised by the World
Bank Group last year, President Ajay Banga said in prepared remarks for the
institution’s annual meeting in Bangkok on October 16. The World Bank Group mobilised
$112 billion in private capital last year, compared with roughly $35 billion in
FY22, Banga said. Investors from 110 countries participated, reflecting a
widening pool of capital for development projects.
(Moneycontrol)
India frontloads exports to
US amid tariff threat; September shipments up 48%: Indian exporters frontloaded
shipments to the US in September amid the threat of tariffs of up to 100% under
the Sanctioning Russia and Iran Act, pushing exports to the country up 48%
year-on-year to $8.02 billion. The pickup in shipments, which began in July,
helped lift India’s exports to the US by 11.11% to $50.81 billion in
April-September, following a muted first quarter when shipments declined 0.06%
to $25.4 billion. However, part of September’s sharp growth reflected a
favourable base effect. Exports to the US had fallen 12.58% year-on-year to
$5.42 billion in September 2025, after Washington’s 50% duties on Indian goods
came into force by late August that year.
(Business Line)
RBI approves amalgamation
of Indian branches of Emirates NBD Bank P.J.S.C. with RBL Bank Limited: The Reserve Bank of India has
sanctioned the Scheme of Amalgamation of Indian branches of Emirates NBD Bank
P.J.S.C. (Transferor Bank) with RBL Bank Limited (Transferee Bank). The Scheme
has been sanctioned in exercise of the powers contained in sub-section (4) of
Section 44A of the Banking Regulation Act, 1949. The effective date of the
amalgamation shall be December 01, 2026. All the Indian branches of Emirates
NBD Bank P.J.S.C. will function as branches of RBL Bank Limited with effect
from December 01, 2026.
(RBI Press Release)
SBI Research urges tax
clarity on G-Secs, ECB rules to deepen domestic borrowing markets: SBI Research has called for
greater tax clarity on government securities (G-secs) and clearer rules for
external commercial borrowings (ECBs), saying further policy measures could
deepen domestic borrowing avenues and help support capital flows amid
persistent pressure on India’s balance of payments. In its Ecowrap report dated
October 15, the research arm of State Bank of India said the rupee could remain
in appreciating territory, but global financial turbulence and continuing
capital-account deficits leave little room for complacency. It said the RBI had
taken steps to stabilise market conditions, while the government now needs to
address structural frictions that may affect investment and funding decisions.
(Business Today)
Punjab National Bank Q2
results: Net profit rises 13% to Rs.5,532 crore: The country's second-largest
public sector lender had logged a profit of Rs 4,904 crore in the year-ago
period. The bank's total income increased to Rs 38,185 crore in the second
quarter from Rs 36,214 crore a year ago, PNB said in a regulatory filing. On
the asset quality front, its gross non-performing assets (NPAs) moderated to
2.55 per cent of gross advances at the end of September 2026 compared to 3.45
per cent a year ago. Similarly, net NPAs or bad loans came down to 0.25 per
cent at the end of September 2026 against 0.36 per cent at the end of September
2025.
(Business Standard)
SBI ups marginal cost of
funds-based lending rates by 15 basis points across five tenors: State Bank of India has upped
its marginal cost of funds-based lending rates (MCLRs) by 15 basis points
across five tenors from three months through three years. The bank left term
deposit rates unchanged. The hike in MCLRs, effective from October 15, comes in
the wake of the RBI’s rate setting panel increasing the repo rate by 25 basis
points from 5.25 per cent to 5.50 per cent on October 7. The
new MCLRs are : three months (8.40 per cent against 8.25 per cent earlier); six
months (8.75 per cent; earlier: 8.60 per cent); one-year (8.85 per cent;
earlier: 8.70 per cent); two-years (8.90 per cent; earlier: 8.75 per cent); and
three years (8.95 per cent; earlier: 8.80 per cent). Overnight and one-month
MCLRs remain unchanged at 7.85 per cent each.
(Business Line)
Fairfax to appoint Deepak
Parekh, Paresh Sukthankar as advisers to IDBI: Fairfax Financial Holdings is
set to appoint banking industry veterans Deepak Parekh and Paresh Sukthankar as
advisers to IDBI Bank, said Chairman & Chief Executive Officer V Prem Watsa
in an analyst call. “We benefit greatly
from having Deepak Parekh, former Chairman of HDFC Limited and the founder of
HDFC, and Paresh Sukthankar, former Deputy Managing Director of HDFC Bank, as
our advisors,” Watsa said. In addition,
they also plan to bring in CVR Rajendran, former CEO of CSB Bank, as another
advisor.
(Financial Express)
India invested just $15
billion in AI against $757 billion in US: India's artificial intelligence (AI) ambitions face
a significant funding challenge, with private investment in its AI economy
exceeding $15 billion between 2013 and 2025, compared with $757 billion in the
US and nearly $132 billion in China, according to Stanford University's AI
Index Report cited by Bloomberg News. The gap highlights the scale of investment required
for India to build a globally competitive AI ecosystem, even as the government
steps up spending on computing infrastructure, datasets and domestic AI models.
Private investors, including billionaire family offices, venture capital funds
and large conglomerates, are expected to play a crucial role in financing the
sector's expansion.
(Business Today)
HSBC has used over half of
$1-billion startup fund within a year: HSBC has deployed more than half of its $1
billion loan commitment to Indian startups within a year of launching its
innovation banking platform. The British lender has reported strong demand
across consumer technology, e-commerce and enterprise software, and is open to
increasing its funding allocation. HSBC Global Head of Innovation Banking David
Sabow said the bank expects to add at least 500 clients in India over the next
year.
(Economic Times)
Centre sets sugar diversion
for ethanol at zero in 2026-27 tender: India has directed oil
marketing companies to cut sugar diversion for ethanol ?production to zero in
2026/27, excluding ethanol made from sugarcane juice, sugar syrup and B-heavy
molasses from their latest tender, according to a tender issued on Friday. India
has relied for years on surplus sugar to meet its ethanol-blending targets, but
the exclusion of sugar-based feedstocks ?underscores the growing tension
between cutting ?oil imports and protecting domestic sugar ?supplies, as poor
rainfall threatens output and pushes prices to record highs. "The
Government ?of India has issued directions that sugar diversion for ethanol be
reduced to zero for ethanol supply year 2026-27," the tender document
said.
(Business Standard)
Motor insurers seek
third-party premium deregulation, end to knock-for-knock pacts: In responses to the regulator's consultation
paper on insurance distribution reforms, some industry participants said
automobile manufacturers and dealers influence commissions, discounting and
repair costs, which could blunt the impact of the proposed curbs on
intermediary remuneration, according to people aware of the matter. Motor insurance industry
representatives urged the Insurance Regulatory and Development Authority of India
(IRDAI) to deregulate third-party premiums, scrap knock-for-knock agreements
between insurers and introduce named-driver policies, arguing that commission
caps alone may not bring down distribution costs.
(Economic Times)
Mutual funds halt new gold
FoF investments, ETF channel kept open: Mutual Fund houses have stopped accepting
fresh investments in their gold fund of funds (FoFs) and this comes at a time
when inflows into gold MF offerings have rebounded, adding to India's import
bill amid current account deficit worries. Gold ETFs attracted net inflows of
Rs 4,451 crore in September, the highest in six months. The inflow figures
include investments routed through gold FoFs, as these funds ultimately invest
in gold ETFs. The restrictions, according to mutual fund (MF) officials, were
imposed on the instructions of SEBI. Investments in gold ETFs can contribute to
demand for physical gold, as these funds are required to hold gold corresponding
to their assets under management. This demand can, in turn, add to India's gold
import bill.
(Business Standard)
Centre amends rules,
permits deployment of private teachers for Census duty: The Centre on Friday amended the Census Rules,
1990, allowing states and Union territories to appoint teachers of "aided
or unaided private bodies" as enumerators during the Census, in the
backdrop of various high courts staying the orders of government officials requisitioning
services of such staff. A gazette notification issued by Registrar General
of India (RGI) Mrityunjay Kumar Narayan said "teachers, clerks, or any
official or any person" can be appointed as census officers by state
governments and Union territories as enumerators.
(Business Standard)
ORDER-TO-TRADE RATIO (OTR)
§ The
Order-to-Trade Ratio (OTR) measures the number of orders placed, including
modifications and cancellations, relative to trades executed by a trading
member.
§ A
high OTR indicates excessive order placement with low execution or creating
‘noise’, often linked to algorithmic or high-frequency trading. Exchanges
impose penalties on high OTR to curb market manipulation, reduce system
congestion, and ensure fair trading.
RBI KEY RATES
Repo
Rate: 5.50%
SDF:
5.25%
MSF
/Bank Rate: 5.75%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 95.0194
INR
/ 1 GBP : 126.4081
INR
/ 1 EUR : 106.6995
INR
/100 JPY: 60.1800
EQUITY INDEX
Sensex:
74729.27 (+413.66)
NIFTY:
23146.15 (+148.80)
Bnk NIFTY: 55844.00 (+33.50)
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