Issue: 1222
· RBI proposes stricter Basel
Pillar 3 disclosure norms for banks on capital and risk exposure.
· Chief Economic Adviser V.
Anantha Nageswaran says India is undergoing a “live balance of payments stress
test.”
· India and Italy likely to
upgrade bilateral ties to a Special Strategic Partnership during PM Modi’s Rome
visit.
· ICRA projects India’s Q4 GDP
growth to slow to a three-quarter low of 7%.
· Insolvency creditors recover
over Rs.4.11 lakh crore under IBC till December 2025.
· Tata Steel UK secures
exemption from certain US steel tariff provisions.
· Private sector deals seen as
key driver for stronger India-UAE economic partnership.
India’s FY27 GDP growth may
slip to 6.2% as high oil prices, contracting exports hurt outlook: ICRA: India’s GDP is likely to grow
at 6.2 percent in FY27, down from the earlier estimate of 6.5 percent amid
elevated crude oil prices triggered by the West Asia crisis, according to rating
agency ICRA. For FY26, ICRA estimates GDP growth at 7.5 percent, marginally
lower than the National Statistical Office’s (NSO) Second Advance Estimate
(SAE) of 7.6 percent for the fiscal. “ICRA now assumes crude oil prices to
average at $95/bbl in FY27, against our prior estimate of $85/bbl, given the
ongoing stickiness in prices amid the stalemate in West Asia. Consequently, we
have pared our baseline forecast for the FY27 GDP growth (at constant 2022-23
prices) to 6.2 percent from the 6.5 percent expected earlier,” ICRA Chief
Economist Aditi Nayar said.
(Financial Express)
India, Nordic nations agree
to elevate ties to Green Tech and Innovation: India and the Nordic countries
on Tuesday decided to elevate their relationship to a Green Technology and
Innovation Strategic Partnership to bolster cooperation in areas such as clean
and green transition, trade and investments and blue economy, as Prime Minister
Narendra Modi held talks with his Nordic counterparts here. In a joint press
statement after the 3rd India-Nordic Summit, Prime Minister Modi said that they
will continue to work together to strengthen the rules-based global order. "Our
shared commitment to democracy, rule of law, and multilateralism makes us
natural partners," said Modi, who was joined by his counterparts from
Norway, Denmark, Finland, Iceland and Sweden.
(Business Standard)
Standard Chartered to cut
over 15% corporate function roles globally: Standard Chartered (StanChart)
on Tuesday said it would cut around 15 per cent of its corporate function roles
globally by 2030. In an internal email sent to employees titled “Our Next Phase
of Growth,” the global bank said that the transformation is ongoing and the
process of change will impact over 15 per cent of corporate functions by 2030. “Some
roles will reduce, others will grow, and new ones will emerge.
(Business Line)
RBI cancels licence of
Maharashtra-based The Yashwant Co-op Bank: The Reserve Bank on Tuesday
said it has cancelled the licence of The Yashwant Co-operative Bank, Phaltan,
Maharashtra, as the lender does not have adequate capital and earning
prospects. The Commissioner for Cooperation and Registrar of Cooperative
Societies, Maharashtra, has also been requested to issue an order for winding
up the bank and appoint a liquidator for the bank, the RBI said in a statement. On
liquidation, every depositor would be entitled to receiving deposit insurance
claim amount of his/her deposits up to Rs 5 lakh from Deposit Insurance and
Credit Guarantee Corporation (DICGC).
(Economic Times)
Star Health and Allied
Insurance rolls out 20% cheaper health cover for tier-2, tier-3 cities: Star Health and Allied
Insurance is launching an affordable health insurance product for tier-2 and
tier-3 cities, with premiums 20% lower than existing plans. This move aims to
increase insurance penetration in smaller towns where affordability is a key
barrier. The insurer is also developing a preferred hospital network called
Pratham to enhance customer experience.
(Economic Times)
IRDAI may tighten CEO KPIs
on claims, expenses and customer service: The IRDAI is developing a more
detailed framework for performance-linked key performance indicators (KPIs) for
insurance company executives. This initiative aims to enhance oversight on
claims settlement, customer complaints, and expense management, pushing for
sharper accountability standards and measurable parameters in senior management
evaluations.
(Economic Times)
RBI proposes revised
capital adequacy disclosure norms for banks: RBI released draft norms on
commercial banks’ capital adequacy with the aim of reducing information
asymmetry and promoting comparability of banks’ risk profiles. “Pillar 3 of the
Basel Framework aims to promote market discipline through regulatory disclosure
requirements,” RBI said while emphasising that these requirements enable market
participants to access key information relating to a bank’s regulatory capital
and risk exposures in order to increase transparency and confidence about a
bank’s exposure to risk and the overall adequacy of its regulatory capital. The
proposed norms said Pillar 3 should apply at the top consolidated level of the
banking group to which the capital adequacy framework applies. If a bank is not
the top consolidated entity in the banking group, Pillar 3 disclosures shall be
required to be made by the bank on a standalone basis. This will apply to
unlisted entities as well, even if they are not required to publish financial
results. The norms said banks should have a formal disclosure policy for Pillar
3 data approved by the board of directors that sets out the internal controls
and procedures for disclosure of such information.
(Business Standard)
FTAs must drive exports,
not just imports: Commerce Minister Piyush Goyal: Commerce Minister Piyush Goyal urged Indian
industry to ensure it leverages the new opportunities arising out of India’s
free trade agreements to boost exports rather than allowing only imports to
rise. “Unless Indian industries strengthen global engagements, invite
investments, and promote exports, we can jolly well end up in a situation where
more imports come in,” Goyal said on Tuesday. The comment comes ahead of the
expected rollout of India’s free trade agreement with Oman on June 1. Trade
deals with the United Kingdom, the European Union, and New Zealand are also
likely to become operational later this year.
(Business Standard)
Overlaps in labour codes,
state laws create compliance grey zone for firms: Overlaps between the Labour Codes and
state-level Shops and Establishments Acts (S&E Acts) on key provisions such
as working hours, overtime, leave and leave encashment are expected to create
continued compliance uncertainty for companies, experts said. This arises from
the parallel applicability of Central and state laws, with states continuing to
frame rules on key aspects of employment. While the Labour Codes lay down a
broad framework, variations across state laws have resulted in differing
thresholds and conditions. This requires companies, especially those operating
across multiple states, to navigate multiple standards simultaneously. The
S&E Acts govern working conditions in commercial establishments such as
offices, shops, and restaurants, covering areas like working hours, overtime,
leave, and holidays. Since they are state-specific, there can be variations
between jurisdictions.
(Business Standard)
India Inc's Q4FY26 profit
margins scaled highest level in 5 years: The profit margin of companies in the fourth
quarter of 2025-26 (Q4FY26) reached its highest level in at last 21 quarters on
account of lower employee costs and a fall in interest payments. Savings from
these more than offset the rise in the costs of raw materials owing to higher
prices of commodities. As a result, the adjusted margin of profit after tax in
the quarter reached 11.3 per cent, up 60 basis points year-on-year (Y-o-Y). The
margin of net profit was also up 70 basis points on a quarter-on-quarter basis
from 10.6 per cent in Q3FY26. With this, the net-profit margin was up nearly a
third in the last five years from 8.6 per cent (of revenues) during the
January-March quarter of 2021. In Q4FY26, the combined net profits (adjusted
for exceptional gains and losses) of 837 companies in the Business Standard
sample — the ones that have declared their results so far — were up 15.5 per
cent as against 9.5 per cent Y-o-Y growth in their revenues (including other
income). The data is as on May 15, and represents roughly over 70 per cent of
listed companies’ financials.
(Business Standard)
India moves closer to higher Ethanol blends as BIS notifies
E22-E30 fuel standards: The Bureau of Indian Standards
(BIS) has notified fuel specifications for higher ethanol blends, including
E22, E25, E27 and E30 petrol, marking a significant step in India’s push
towards deeper ethanol blending and alternative fuel adoption. According to a
government notification dated May 15, 2026, BIS established standard IS
19850:2026 for “E22, E25, E27 and E30 Fuel, Admixture of Anhydrous Ethanol and
Motor Gasoline for Usage in Positive Ignition Engine Powered Vehicles.” The
move provides formal specifications for the use of higher ethanol-blended fuels
in the country.
(Business Today)
IBBI sets out
new appointment rules for insolvency professionals: To avoid delays in the appointment of
insolvency professionals (IPs) during the bankruptcy process, the government
has come out with a fresh set of guidelines that mandate Insolvency and
Bankruptcy Board of India (IBBI) to define the eligibility criteria for the IPs
besides preparing a panel of IPs that can be appointed as resolution
professionals, liquidators or bankruptcy trustees. The norms said that IPs will
have to submit expression of interest to include their names in the panel. Once
the consent is submitted, the IPs will not be allowed to refuse an assignment
unless otherwise permitted by the National Company Law Tribunal (NCLT) or Debt
Recovery Tribunal (DRT) or the IBBI.
(Financial Express)
FinMin, states in talks for
simpler GST norms for qcom dark stores: The finance ministry is in
discussions with state governments to ease the requirement for update of goods
and services tax (GST) registrations to include each dark store and warehouse
operated by ecommerce (ecom) and quick-commerce (qcom) companies, amid rapid
expansion of such facilities across smaller cities. Under the GST law, any
location where goods are stored or from where they are supplied, including
warehouses and dark stores, qualifies as a “place of business”. These must be
declared under appropriate state-wise GST identification number (GSTIN). A
business needs only one GSTIN per state/Union territory (UT). Multiple dark
stores or warehouses within the same state are added as “additional places of
business” to the existing GSTIN via a simple amendment. However, the frequent
addition or deletion of locations requires repeated amendments on the portal,
which is cumbersome, especially for platform sellers who must update details
individually.
(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: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 96.3450
INR
/ 1 GBP : 129.2263
INR
/ 1 EUR : 112.1758
INR
/100 JPY: 60.5800
EQUITY INDEX
Sensex:
75200.85 (-114.19)
NIFTY:
23618.00 (-31.95)
Bnk NIFTY: 53409.15 (-127.85)
Historical
events: On May 20, 1498,
Portuguese explorer Vasco da Gama reached Kozhikode (Calicut) in Kerala,
establishing the first direct sea route from Europe to India and initiating an
era of European colonialism. In world history, this date also marks the 1873
patenting of blue jeans by Levi Strauss and the 1927 Treaty of Jeddah.
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