Issue: 1275
· HDFC Bank CEO reappointment
delayed by board review: Report.
· Non-vegetarian food inflation
outpaces headline prices as eggs, meat see sharpest rise in five months.
· Andy Burnham takes charge as
UK PM, vows stability with 10-year Britain plan.
· HDFC Bank ADRs drop over 9%
on weak Q1 margins.
· India's crude oil import bill
soars 48% in June amid supply shock.
· India's outward FDI falls
47.9% to $3 billion in June: RBI data.
· People living within 20 km of
toll plazas can buy local passes digitally.
· HCLTech CEO C Vijayakumar’s
FY26 salary grew nearly 67% to Rs 176.47 crores.
· 55.49 crore UPI users
onboarded by June 2026.
Government likely to
broaden SEZ services definition to ease payment hurdles: The Centre is preparing an amendment to the
special economic zones (SEZ) act to widen the definition of services under the
law, a move aimed at easing operational constraints faced by service-sector
units, including issues around transactions involving Indian rupee payments, a
senior government official said. The proposed change is part of a broader effort to
modernise the SEZ framework after announcing measures for manufacturing units
in the Budget 2026-27. "The definition of services in the SEZ Act is very
limited. It says services must earn foreign exchange. We are trying to fix
that. We are trying to get a small amendment in the SEZ Act," the official
said on condition anonymity. Enacted in 2005, the SEZ Act was designed to
promote export-oriented businesses by allowing companies operating from these
zones to avail certain benefits, provided they meet some conditions, including
foreign exchange earnings.
(Moneycontrol)
India rakes in $17.4
billion in FCNR(B) deposits under RBI swap window: The Reserve Bank of India's
(RBI) special measures to encourage overseas deposits from non-resident Indians
(NRIs) have attracted $17.4 billion in foreign currency non-resident (FCNR(B))
deposits until last Friday, reflecting strong investor interest in the scheme. In
a statement, the RBI said companies also raised $1.34 billion through external
commercial borrowings (ECBs), while overseas foreign currency borrowings
(OFCBs) brought in another $1.97 billion. "In all, the RBI said the forex
deposit program, which was being subsidized by the central bank since it was
bearing the entire hedging costs, was witnessing avid interest and has
attracted steady inflows."
(Moneycontrol)
India’s core sector growth
rises to five-month high of 5% in June: Production growth of nine core
infrastructure sectors rose to a five-month high of 5 per cent in June due to
an increase in output of cement, electricity and iron ore, official data
released on Monday showed. The core sectors' growth was 1.1 per cent in June
2025 and 3.2 per cent in May 2026. The data has been released with a new base
year, 2022-23, replacing the earlier base year of 2011-12. The government has
also added iron ore to the index, increasing the number of core sectors to
nine.
(Business Line)
1 in 5 gold loans given to
a borrower with an NPA on other trade lines: Bhavesh Jain, MD & CEO,
TransUnion CIBIL: The credit landscape in the
country is transforming with the profile of borrowers, the loans that they
prefer and the lenders catering to them undergoing a shift in recent years. In
this chat with businessline, Bhavesh Jain, MD & CEO, TransUnion CIBIL, gives
us insights into the evolving trends in various loan products. New-to-credit
borrowers now opting for personal loans, especially the phone financing
category, says the TransUnion CIBIL head.
(Business Line)
Indian Overseas Bank net
rises 49% in Q1FY27 on higher NII, recoveries: Net profit of Indian Overseas
Bank (IOB) grew 49 per cent YoY and stood at Rs.1,659 crore for the quarter
ended June 2026 (Q1FY27) driven by growth of net interest income, higher
recoveries, and lower tax expense. Asset quality of the public sector bank also
improved. Net interest income (NII) increased by 34.3 per cent YoY to Rs.3,688
crore in Q1FY27. Domestic NIM (net interest margin) increased to 3.5 per cent
while Global NIM increased to 3.37 per cent. The bank’s total business
increased by 17.7 per cent to Rs.6,98,325 crore. Asset quality of the bank
improved with Gross NPA reduced to 1.33 per cent from 1.97 per cent in Q1FY26.
Net NPA reduced to 0.18 per cent from 0.32 per cent in Q1FY26.
(Business Line)
Top banks earn over Rs
20,000 crore from insurance sales in FY26: India’s leading private and
public sector banks earned more than Rs.20,000 crore in brokerage and
commission from selling insurance policies in FY26. An analysis by FE of the
country’s top 8 banks’ annual reports shows that nearly 80%, or close to Rs.16,000
crore, of this income was generated by the four largest private sector lenders.
Insurance distribution has emerged as one of the biggest sources of fee income
for large private banks, contributing nearly a fifth of non-interest income for
some of them.
(Financial Express)
Indian banks mobilise $20.7
billion under RBI's special incentive window: In a remarkable financial
boost, India's central bank recorded significant foreign exchange inflows of
$20.72 billion, primarily through a swap facility provided by the Reserve Bank
of India. Out of this amount, Foreign Currency Non-Resident Deposits accounted
for $17.41 billion. Meanwhile, External Commercial Borrowings contributed $1.34
billion, and Overseas Foreign Currency Borrowings brought in an additional
$1.97 billion, enhancing the country’s economic standing.
(Economic Times)
Credit-deposit gap to
persist as loan demand dynamics have changed, says SBI Research: A noticeable gap between
credit and deposit growth is troubling the banking landscape. Consumers are
shifting their savings from traditional deposits to diverse financial options.
Amid geopolitical uncertainties and rising oil costs, companies are requesting
more working capital loans. To alleviate this funding pressure, newly
introduced FCNR(B) deposits could provide a short-term remedy. It is projected
that savings will increasingly gravitate towards the five-year maturity
category.
(Economic Times)
India joins WTO fisheries
subsidies agreement after years of negotiations: India has formally become a party to the World
Trade Organization’s (WTO) Agreement on Fisheries Subsidies after depositing
its Instrument of Acceptance on 20 July 2026, becoming the 123rd WTO member to
do so. The Instrument of Acceptance was handed over by the
Commerce Secretary, Government of India, to WTO Director-General Ngozi
Okonjo-Iweala. The WTO Agreement on Fisheries Subsidies, adopted
by consensus at the 12th WTO Ministerial Conference (MC12) in Geneva in June
2022, is the first multilateral WTO agreement focused on environmental
sustainability. The agreement prohibits subsidies linked to illegal, unreported
and unregulated (IUU) fishing, fishing of overfished stocks, and certain
fishing activities on the unregulated high seas. It entered into force on 15
September 2025 after acceptance by two-thirds of WTO members.
(Moneycontrol)
Restaurants can’t force you
to pay service charge: CCPA acts against 41 eateries: Hotels and restaurants cannot add a service
charge to your bill without telling you, and they also cannot force you to pay
it. The Central Consumer Protection Authority (CCPA) has now taken action
against 41 restaurants across India for allegedly violating consumer rights by
automatically adding a service charge to customers’ bills. In a press release
issued by the Ministry of Consumer Affairs, Food and Public Distribution on July
19, the government said the CCPA started the action on its own after receiving
several complaints through the National Consumer Helpline (NCH).
(Financial Express)
Singapore
Airlines to carefully consider fund infusion in loss-making Air India: Singapore Airlines (SIA), which owns a
quarter of Air India, said it would “carefully consider any requests for
additional capital” from the Tata Group airline, marking its first public
indication of a willingness to infuse fresh funds into the loss-making carrier.
The Singapore flag carrier also reaffirmed its long-term commitment to its
25.1% stake in Air India. "The Board will carefully consider any requests
for additional capital from Air India, taking into consideration the Group's
other capital requirements and Air India's business strategy," SIA said in
a regulatory filing on Monday.
(Mint)
Govt says no proposal under
consideration to remove LTCG tax on equities: The government on Monday
clarified that there is currently no proposal under consideration to scrap the
long-term capital gains (LTCG) tax, according to a response by Pankaj
Chaudhary, Minister of State for Finance, in the Lok Sabha. The tax rate of
12.5 per cent on equity LTCG is the same for domestic retail investors and
foreign portfolio investors (FPIs), Chaudhary said in a written response to a
parliamentary question by Lok Sabha member Anand Bhadauria on July 20. The
response comes amid demands from certain market participants to cut the LTCG
tax.
(Business Standard)
Sebi imposes Rs.1 crore
penalty on CDSL for alleged cybersecurity lapses: The Securities and Exchange Board of India
(Sebi) has imposed a total penalty of Rs 1 crore on Central Depository Services
(CDSL) for alleged failures in cybersecurity measures identified after a
malware attack in November 2022. The market regulator noted that critical
systems, including the settlement process and inter-depository transfer, were
disrupted for 46 hours and 54.5 hours, respectively, making it evident that the
disruption had a major spillover impact on the entire securities market.
(Business Standard)
Empower Internal Ombudsmen,
use feedback to strengthen institutions: RBI DG: Reserve Bank of India (RBI) Deputy Governor
Swaminathan J has urged the boards, senior management and principal nodal
officers of regulated entities to empower their internal ombudsmen, respect
their independence and use the feedback to strengthen institutional processes.
Swaminathan was addressing the annual conference of internal ombudsmen on July
13. He said the effectiveness of the internal ombudsman framework depends not
only on the capability and independence of the ombudsman but also on the
commitment of an institution's leadership to implement the framework “in both
letter and spirit.”
(Business Standard)
JUST-IN-TIME (JIT)
Ø The just-in-time (JIT) inventory system is a
management strategy that aligns raw-material orders from suppliers directly
with production schedules. Companies employ this inventory strategy to increase
efficiency and decrease waste by receiving goods only as they need them for the
production process, which reduces inventory costs. This method requires
producers to forecast demand accurately.
Ø
The
just-in-time (JIT) inventory system minimizes inventory and increases
efficiency. JIT production systems cut inventory costs because manufacturers
receive materials and parts as needed for production and do not have to pay
storage costs. Manufacturers are also not left with unwanted inventory if an
order is canceled or not fulfilled.
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 : 96.5120
INR
/ 1 GBP : 129.9431
INR
/ 1 EUR : 110.3888
INR
/100 JPY: 59.4300
EQUITY INDEX
Sensex:
77708.52 (-442.93)
NIFTY:
24238.50 (-95.80)
Bnk NIFTY: 57945.00 (-576.40)
Historical events: On July 21 in
history, the Indian Constituent Assembly formally adopted the tricolour as the
independent nation's National Flag of India in 1947. In world history, the date
marks two monumental milestones: in 1969, Neil Armstrong and Buzz Aldrin made
history as the first humans to walk on the Moon during the Apollo 11 mission,
and in 1954, the Geneva Accords divided Vietnam at the 17th parallel.
****Have a nice
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