Issue: 1248
· RBI extends Keki Mistry's
tenure as part-time chair of HDFC Bank till September 18.
· Indian money in Swiss banks
falls 8% to Rs 36,793 crore.
· Banks seek RBI nod to let
NRIs break & rebook existing deposits.
· RBI cancels licence of
Karnataka-based Shree Mahalaxmi Urban Co-operative Credit Bank.
· Financial Intelligence Unit
puts large crypto OTC deals under scanner, asks exchanges for trade data.
· Gold imports slump after duty
increase, May volumes at 25-30 tonnes.
Net direct tax collections
till June 17 at Rs 5.2 lakh crore, up 14.6% YoY: The central government’s
direct tax collections, after refunds, stood at Rs 5.21 lakh crore between
April 1 to June 17 of FY27, data released by the Income Tax Department showed
on Thursday. As compared to the
corresponding period of last fiscal year, the net direct tax collections were
up 14.64 percent on year. According to the I-T data, net corporate tax
collections till March 17 stood at Rs 2.08 lakh crore, up 22.4 percent on year.
And net non-corporate tax collections (includes personal income tax) stood at
Rs 2.93 lakh crore, 8.4 percent higher on year.
(Moneycontrol)
Rupee posts longest winning
run in a year on exporter flows, bank dollar sales: The Indian rupee ended higher
against the US ?dollar for a fifth consecutive session on Thursday, logging its
?longest winning streak in a year, as lenders ?and exports cut dollar positions
aggressively. The rupee ?ended at 94.3325, up 0.2 per
cent from its previous close. The currency has gained about 1.5 per cent in the
last five sessions. The ?rupee had opened weaker, after a hawkish shift in the
Federal Reserve’s latest policy ?projections, and immediately hit day’s low of
94.7025 to ?the ?US dollar. However, it soon
changed its ?direction, climbing all the
way to 94.19, its highest level in six weeks.
(Business Line)
RBI steps up dollar buying
to rebuild reserves, manage forward book: The rupee’s trajectory
indicates a reversal amid a decline in crude oil prices with the United States
(US) and Iran having reached an initial agreement to end the war, before
finalising a peace deal in 60 days. The Reserve Bank of India (RBI) seems to be
seizing this opportunity to bolster its forex reserves and manage its large
short dollar forward position, dealers said. Market participants estimated
RBI’s dollar purchases at around $1 billion-2 billion on Thursday, after the
central bank is believed to have absorbed $2 billion-3 billion from the market
on Wednesday.
(Business Standard)
SEBI clears SBI Funds
Management IPO, RHP likely in early July: Sources: India's largest asset
management company SBI Funds Management has received approval for its
draft red herring prospectus (DRHP) from the market regulator. As per the
SEBI website, the approval was granted last week on June 12, 2026. The AMC is
likely to file its red herring prospectus and announce its price band in the
first week of July, according to industry sources.
SBI
Funds Management had filed its Draft Red Herring Prospectus (DRHP) with the
regulator on March 19, 2026. The IPO will comprise of solely an
offer-for-sale of 20.37 crore equity shares, i.e. 10 percent stake, with no
fresh issue component.
(Moneycontrol)
HDFC Bank awaits legal
review report: The HDFC Bank board on
Thursday did not discuss the independent legal review commissioned following
former Chairman Atanu Chakraborty’s abrupt resignation, as the report is yet to
be submitted by the law firms conducting the exercise. The delay extends
uncertainty around a review that is being closely watched ahead of the
reappointment of Sashidhar Jagdishan, managing director and chief executive
officer, whose current term ends in October. Sources said the report,
commissioned nearly three months ago, has taken longer than the bank had
anticipated. HDFC Bank did not comment on the reasons for the delay. Separately,
the Reserve Bank of India approved a three-month extension for Keki Mistry as
part-time chairman until September 18, or until a regular chairman is
appointed, whichever is earlier.
(Business Line)
Banks fear losing NRI
customers as competition heats up: Intense competition for FCNR
(B) deposits has left some lenders apprehensive they could lose overseas
customers as their offerings may not be as attractive as those of others. With RBI
having lifted the cap on these deposits, a clutch of banks has raised their
interest rates making their offers more attractive. In fact, a couple of banks,
that had announced new interest rates on FCNR (B) deposits, are understood to
be reconsidering their products after the removal of the cap.“We were early to
announce rates but will revisit them in the light of the new rules,”. Some
smaller banks, previously limited by the cap, may raise rates now, while larger
banks will likely remain near the 6% level, said bankers and analysts.
(Financial Express)
Emirates NBD completes
acquisition of RBL Bank: Emirates NBD has successfully
completed acquisition of a majority stake in RBL Bank Limited through a primary
infusion of about $2.75 billion (Rs 26,000 crore), the two entities announced
on Thursday. The investment was completed
through a preferential allotment of 929.1 million fully paid-up equity shares
of RBL Bank at Rs 280 per share, aggregating to about Rs 26,016 crore. As a
result of the allotment, RBL Bank's total share count has more than doubled -to
1.5485 billion from about 619.4 million.
(Economic Times)
Govt announces key leadership
changes in insurance sector: The government on Wednesday
announced a series of key appointments in the insurance sector. Dinesh
Pant, managing director at Life Insurance Corporation of India, has been
appointed whole-time member (actuary) at IRDAI, while Girija Subramanian,
chairman-cum-managing director of The New India Assurance Company Limited, has
been appointed whole-time member (distribution). Both appointments are for five
years. The government has also reappointed Deepak Sood as whole-time member
(non-life), extending his term by two years until 2028, and Rajay Kumar Sinha
as whole-time member (finance and investment) for another two years until 2029,
or until they attain the age of 65 years, whichever is earlier.
(Business Standard)
Maruti Suzuki races past
BMW in market cap as German carmaker revises guidance for 2026: Maruti Suzuki India Ltd, the maker of small cars
such as the Alto and SPresso, has overtaken German luxury car manufacturer BMW
AG in market capitalisation. As of June 18, the market cap of Maruti Suzuki
stood at Rs 4.25 lakh crore compared with Rs 3.9 lakh crore m-cap of BMW. Maruti
Suzuki is the world’s 12th largest carmaker in terms of market valuation, ahead
of Japan’s Honda and South Korea’s Kia. Maruti Suzuki raced ahead of BMW this week after
shares of the German premium car giant tanked 7% to hit their lowest level in
six years. BMW adjusted its full-year guidance for the 2026 financial year
owing to weak demand forecast in China and the impact of West Asia conflict on
consumer sentiments across several markets.
(Business Today)
Cyberattacks, AI threats
risks to business: NSE: Amid the artificial intelligence (AI) boom, the
National Stock Exchange (NSE) has flagged that AI threats could adversely
impact its business and financial condition. In its draft red herring
prospectus (DRHP) filed with market regulator Sebi on Wednesday, the country’s
largest stock exchange said its risk management framework and insurance policies
“may not be effective or adequate” and that its plans on disaster recovery “may
not be sufficient” for all risk scenarios. The exchange also warned that
regulatory changes as well as its significant dependence on derivatives trading
revenues could materially affect its financial performance and business
operations. It said the evolving regulatory framework around AI
could also increase compliance requirements, with regulators potentially
introducing new norms on governance, transparency, explainability and
auditability of AI systems used in financial markets.
(Financial Express)
Gold jewellery
exports slip 15% as supply crunch, high prices bite, yet local demand soars: India’s gems and jewellery exports fell
2.49% in May to $2,047.89 million, with plain gold jewellery shipments down
nearly 15% as record-high gold prices and a shortage of gold for factories hurt
export production. Despite this, a Nuvama report added that the same price rise
helped jewellery shops at home report some of their best sales in yearsThe
biggest drag was plain gold jewellery, where exports dropped 14.75% to $758.44
million..
(Financial Express)
EPFO to allow PF
withdrawals via UPI and ATMs by month-end; 3-day server blackout planned: The Employees' Provident Fund
Organisation (EPFO) is likely to roll out its feature of allowing the
subscribers to withdraw funds from their PF accounts through UPI and ATM by end
of the current month. According to government
sources, the EPFO will undertake a "blackout" of its servers in the
coming days. "All operations of EPFO will be on halt 3 days, for the
servers to update the features, which would allow withdrawal of funds through
UPI and ATM," a senior official told Moneycontrol. Currently, EPFO
withdrawals can be done online through the UAN portal, but there is no facility
for withdrawing funds via UPI. The provident fund body will
be launching a new app -- which will be linked to the subscriber’s bank
account. It will also be linked to the BHIM app and other UPI apps.
(Moneycontrol)
SEBI proposes allowing NCDs
for MTF funding, expands broker funding limits; retains higher margin for
cash-funded trades: SEBI has proposed allowing
stock brokers to raise funds through listed non-convertible debentures (NCDs)
and include such borrowings while computing permissible Margin Trading Facility
(MTF) exposure, in a move aimed at expanding funding avenues and increasing
financing capacity. A key proposal is to broaden
the sources of funding available for the margin trading facility. Currently,
brokers can finance MTF primarily through their own capital and bank
borrowings. SEBI has proposed permitting funds raised through listed NCDs and
other approved debt instruments to be used for MTF financing, though it will be
subject to safeguards. The regulator said this would diversify funding sources,
improve liquidity for brokers and reduce dependence on traditional bank credit
facilities.
(Moneycontrol)
Govt ratifies
8.25% EPF interest rate for FY26: The finance ministry has ratified the
8.25% interest rate on Employees’ Provident Fund (EPF) deposits for 2025-26.
The interest will be credited into the accounts of over 70 million contributing
members this month. The Central Board of Trustees (CBT), the apex
decision-making body of the Employees’ Provident Fund Organisation (EPFO),
fixed the 8.25% interest rate for 2025-26 in March this year. In FY24, the EPFO
raised the interest rate to 8.25% from 8.15% in the previous year. The interest
rate had fallen to a four-decade low of 8.1% in FY22. The retirement fund body
invests 67.5% of its corpus in government securities, 20.34% in debt
instruments, 1.92% in short-term debt, and nearly 10.23% in equities.
(Financial Express)
FOREIGN TRADE
ZONE
·
A Foreign Trade Zone (FTZ),
also known as a free trade zone, is a designated area within a country where
goods can be imported, stored, processed, or manufactured, and then re-exported,
without being subject to customs duties or other regulations until they enter
the country's domestic market.
·
FTZs are geographically
defined areas within a country that are treated as if they are outside the
country's customs territory for the purpose of trade.
·
The primary goal of FTZs is to
encourage international trade and investment by providing businesses with a
duty-free environment for certain activities.
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 : 94.2795
INR
/ 1 GBP : 125.5841
INR
/ 1 EUR : 108.6534
INR
/100 JPY: 58.6900
EQUITY INDEX
Sensex:
77409.98 (+254.36)
NIFTY:
24168.00 (+82.30)
Bnk NIFTY: 57963.80 (+378.75)
Juneteenth: June 19th is
globally recognized as Juneteenth, which commemorates the emancipation of enslaved
Black Americans. Also known as Freedom Day, Jubilee Day, or Emancipation Day,
it specifically marks the date in 1865 when enslaved people in Galveston,
Texas, finally received word that they were free, more than two years after the
Emancipation Proclamation.
Historical
events: June 19 holds
immense historical significance globally, marking events like Juneteenth in the
United States, which celebrates the end of slavery in 1865. In India, it is
remembered for the successful launch of the country's first experimental communication
satellite, APPLE, in 1981.
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