Issue: 1276
· SBI Funds Management shares
end with 6% listing gains.
· Bandhan Bank Q1 net up 35% at
Rs. 501.67 crore as provisions fall 40.5%.
· PLI schemes attract Rs.2.4 lakh
crore investments, generate over 14 lakh jobs till March.
· Investors pour $17.4 bn into
FCNR(B) drive, RBI’s swap facility hits $20 bn mark since June.
· Punjab & Sind Bank eyes
Rs 4 lakh cr business by FY29: Lender bets big on technology transformation.
· Tighten norms on repeat
violations, protect MSMEs: House panel to CCI.
Houthi’s Saudi blockade
threaten to inflate India’s oil bill again: India’s crude supplies and import bill may
face a fresh shock after a Houthi threat to blockade Saudi Arabia put the
kingdom’s oil moving through Bab el-Mandeb at risk. The threat comes just as
Saudi Arabian crude sharply regained share in India’s import basket over the
last two weeks. Kpler data showed Saudi supplies to India rebounded to 586,000
barrels per day (bpd) through July 19, doubling from 293,000 bpd for the whole
of June, Kpler data showed. The kingdom ranked third after Russia at 2.45
million bpd and the UAE at 617,000 bpd. Saudi Arabia supplied India an average
700,000 bpd between July 2025 and April 2026, accounting for 14.5% of imports.
Its share slipped to 7% in May-June before recovering to around 10% in July,
increasing India’s exposure to Riyadh’s Red Sea route.
(Financial Express)
India targets 10% share in
goods exports by 2047: India has set a target to
increase its share of world merchandise exports to 10% by 2047 from 1.8% in
2024, the government informed the World Trade Organisation (WTO) as part of the
review of its trade policy by the global trade body. The review covers trade
policy from 1 January 2021 to 31 December 2025. Under the Viksit Bharat 2047
mission, India aims to grow its economy to $30-35 trillion with overall exports
reaching $10 trillion. On WTO reform, India reiterated its stated position that
it must be development-centred, consensus-based, and member-driven. It also
sought restoration of a standing, independent, and binding two-tier dispute
settlement system with immediate restoration of the Appellate Body, which has
been non-functional since December 2019.
(Financial Express)
WTO says India must tackle structural gaps to realise Viksit Bharat by 2047: India will need to address structural challenges, including high trade costs, regulatory complexity, infrastructure gaps and barriers to deeper global integration, to sustain strong economic growth and achieve the Viksit Bharat vision of becoming a developed country by 2047, the World Trade Organisation (WTO) said on Tuesday. In its quinquennial and eighth Trade Policy Review of India, the WTO secretariat said real gross domestic product (GDP) growth is forecast to range between 6.8 per cent and 7.2 per cent in FY2027-28, continuing the trend of strong growth posted during the review period, in which India was the fastest-growing G20 economy.
(Business Line)
Foreign banks account for
lion's share of FCNR(B) inflows under RBI's concessional swap facility: Foreign banks have helped
facilitate a lion's share of the over $17 billion in Foreign Currency
Non-Resident (Bank) [FCNR(B)] deposits mobilised under the Reserve Bank of
India's concessional swap facility, bankers said on Tuesday. Some
large state-owned and private sector banks also hold a significant share of
inflows received so far, at least three bankers told PTI. The RBI on Monday
said its concessional swap facility, introduced to encourage foreign currency
inflows, has attracted $20.72 billion till July 17, which included $17.406
billion, followed by OFCBs at $1.970 billion and ECBs at $1.342 billion.
(Moneycontrol)
FCNR(B): Data show banks
have raised $20.7 bn under scheme; $10 bn more may flow in: The optimism follows RBI's
disclosure that banks have collectively garnered $20.7 billion under its
special incentive window, a pace that has already eased earlier concerns the
scheme was struggling for traction. Of the total, FCNR(B) deposits accounted
for the largest share at $17.4 billion, mobilised within six weeks of the
scheme becoming operational. This was followed by overseas foreign currency
borrowings (OFCBs) at $2 billion and external commercial borrowings (ECBs) at
$1.3 billion.
(Economic Times)
Banks lure NRIs with
high-return FCNR(B) deposits, warn of leverage risks: Banks are attracting NRI
dollar deposits through RBI's FCNR(B) window. These deposits offer projected
returns of thirteen to sixteen percent. Customers can borrow multiple times
their capital to amplify these dollar yields. However, early redemption carries
substantial penalties and lender control over pledged funds. Investors face
liquidity constraints and regulatory risks with these leveraged products.
(Economic Times)
SC quashes case against
Standard Chartered Bank over violations of FERA provisions: The Supreme Court quashed a
23-year-old criminal complaint against Standard Chartered Bank. This decision
provided relief to the bank after a lengthy legal process. The court cited a
lack of documentary evidence supporting the complaint. It also noted the trial
had not progressed beyond serving summons. The Supreme Court's inherent powers
were exercised to end these proceedings.
(Economic Times)
Banks, financial
institutions reported fraud of Rs 1.42 lakh crore in last 5 years: MoS Finance: Banks and financial
institutions reported Rs 1.42 lakh crore in fraud over five years. Recovery of
Rs 6,389 crore was made during this five-year period. Public sector banks filed
recovery suits against 15,577 wilful defaulters by March 2026. These banks also
recovered Rs 52,360 crore from wilful defaulters. The Reserve Bank of India has
directed banks to avoid borrower harassment.
(Economic Times)
Gold, silver smuggling
surges after Indian govt more than doubles import duty: The Indian government’s decision to increase the
import duty on gold and silver has probably led to increased smuggling, with
data showing a manifold jump in seizures of smuggled consignments of the
precious metals. On May 13, the Government more than doubled the Customs duty
on gold and silver to 15 per cent from 6 per cent, including 5 per cent
Agriculture and Infrastructure Development Cess. The seizure of silver
consignments increased by more than 10 times between May 13 and June 30
compared with the April 1-May 12 period. On the other hand, gold consignment
seizures jumped 186 per cent during the period, data provided by the Government
in the Lok Sabha showed.
(Moneycontrol)
India’s manufacturing to
rise 2.8x to $1.5 trn by 2035: Morgan Stanley: India’s manufacturing sector is likely to see
sharp growth in the coming years, supported by industrial policy and reforms,
Morgan Stanley said in a report. With India seen entering a multi-year capex
super-cycle, the manufacturing sector is projected to expand to $1.5 trillion
by 2035, 2.8x its current size, the report said. “Success in expanding
manufacturing is imperative to India’s medium-term growth trajectory,” said
Morgan Stanley economists, led by Upasana Chachra. Morgan Stanley expects
manufacturing’s share of GDP to rise to around 20% by 2035, from the near 15%
currently, implying an incremental manufacturing base of about $930 billion.
(Financial Express)
India's
fertiliser exports rise 52% in three years from FY24 to FY26: Even as the focus is on India’s rising
fertiliser imports and the burden they are placing on the national exchequer
amid the West Asia crisis, the latest data sourced from Parliament replies and
other official sources show that the country’s fertiliser exports have quietly
risen by almost 52 per cent over the three years from 2023–24 (FY24) to 2025–26
(FY26). Though the export volume is minuscule compared with the quantity of
fertilisers India imports every year, the trend is noteworthy given the broader
discourse surrounding the sector. India exported about 317,515 tonnes of
fertilisers in FY24, with shipments steadily rising to 479,737 tonnes in FY26.
A major share of these exports was other superphosphates shipped to Brazil,
official data showed.
(Business Standard)
SEBI weighs overhauling
safety capital norms for clearing corporations, proposes uniform risk cover
approach: Market
regulator Securities and Exchange Board of India (SEBI) is evaluating a
proposal to introduce a uniform framework for the key minimum safety fund
applicable to all clearing corporations. Clearing corporations guarantee every
trade by ensuring securities are delivered and payments are settled,
eliminating counterparty default risk. According to sources aware of the
initial discussions, the regulator has discussed with all key stakeholders
implementing the Cover 3 risk standard approach, which requires the Core
Settlement Guarantee Fund (Core SGF) to be sufficient to cover the simultaneous
default of at least the top three clearing members. Sources said the proposal,
though in its initial stage, if implemented, will remove the mandatory Rs
10,500-crore minimum corpus requirement for systemically important clearing
corporations with a market share of more than 40 per cent of clearing volumes,
while making the stringent Cover 3 risk standard uniformly applicable across
all clearing corporations.
(Moneycontrol)
SEBI operationalises
promoter share freeze mechanism for buybacks: The Securities and Exchange Board of India
(SEBI) on Tuesday issued the operational framework for freezing promoter and
promoter group shareholdings at the ISIN level during buybacks, paving the way
for implementation of the amended buyback regulations from August 1. The circular follows
SEBI's July 1 amendment to its buyback regulations, which requires promoter and
promoter group holdings, including those of their associates, to remain frozen
from the date the board or shareholders approve a buyback until the offer
closes.
(Business Line)
RBI proposes
easier FDI compliance regime, seeks public comments: RBI proposed a principle-based regulatory
framework by rationalising provisions, harmonising definitions and simplifying
the regulatory architecture to improve clarity and reduce the compliance burden
for foreign investors. The central bank released the draft Foreign Exchange
Management (Foreign Investment) Rules, 2026 for public consultation on Tuesday,
seeking to replace the existing Foreign Exchange Management (Non-Debt
Instruments) Rules, 2019. Comments on the draft have been invited until August
31. RBI said the proposed norms are aimed at enhancing ease of doing business.
“Streamlined procedures, reduced compliance burden and greater operational
flexibility through a transparent and investor-friendly regulatory framework,”
is among the salient features of the proposed draft rules, the RBI statement
noted. The review of the Non-Debt Instruments (NDI) Rules was announced in the
Union Budget for 2026-27 as part of the government’s plan to create a more
contemporary and user-friendly framework for foreign investment. Following the
announcement, the Centre constituted a committee to review the existing
regulations, and based on the committee's recommendations, the RBI prepared the
draft rules in consultation with the government and other stakeholders.
(Business Standard)
BLUE OCEAN STRATEGY
Ø Blue Ocean Strategy is a strategic framework
developed by W. Chan Kim and Renée Mauborgne that encourages firms to create
uncontested market space rather than competing in saturated markets.
Ø Instead of fighting competitors in "Red
Oceans" characterized by intense rivalry, firms following a Blue Ocean
Strategy pursue value innovation by simultaneously reducing costs and
increasing customer value. The strategy focuses on creating new demand through
differentiation and innovation. Examples include Cirque du Soleil, which
combined theatre and circus, and Nintendo Wii, which targeted casual gamers
rather than competing solely on hardware specifications. The framework
emphasizes the ERRC Grid—Eliminate, Reduce, Raise, and Create—to redesign
industry boundaries.
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 : 96.2537
INR
/ 1 GBP : 129.4417
INR
/ 1 EUR : 109.9147
INR
/100 JPY: 59.2300
EQUITY INDEX
Sensex:
77470.11 (-238.41)
NIFTY:
24187.70 (-50.80)
Bnk NIFTY: 57835.35 (-109.65)
National Flag Adoption Day: July 22 is
primarily celebrated as National Flag Adoption Day in India to commemorate the
historic day in 1947 when the Constituent Assembly adopted the Tiranga (the
tricolor) as the official national flag.
Historical events: July 22 holds
profound significance for both India and the world. In India, it is celebrated
as National Flag Day, commemorating the day in 1947 when the Constituent
Assembly officially adopted the tricolor \(Tiranga\) as the national flag. Globally,
it marks World Brain Day and the 2001 installment of the first operational day
for India's indigenous APPLE satellite.
****Have a nice
Day****
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