Issue: 1250
·
iPhones fuelled 47.24% surge in smartphone exports to US in
April.
·
India to host BRICS energy ministers' meeting in Gurugram on
June 25-26.
·
India-EU FTA to be signed by Dec, implemented from Feb-Mar
next year: Goyal.
·
Exports rise 15% during Apr-Jun 14 despite global
uncertainties: Goyal.
·
Iran resumes crude exports from Kharg Island after US lifts
blockade.
Indian banks turn cautious
on MSME lending as stress signals emerge: Report: Indian banks are becoming more
cautious about lending to MSMEs as early signs of stress emerge in the sector.
According to a 360 ONE Capital report citing CRIF High Mark data, MSME loan
growth slowed to 12.7% year-on-year in April 2026 from around 18%-20% in
previous quarters, while growth in active loans decelerated sharply to 2.5%.
(Economic Times)
Liquidity view fuels CRR
hike possibility as RBI moves lift inflow outlook: Market participants have
started discussing the possibility of a cash reserve ratio (CRR) hike, as
expectations grow inflows linked to recent Reserve Bank of India (RBI) measures
could add significant liquidity to the banking system. They said the impact on
liquidity is likely to become clearer by August, making it a potential window
for policy action if surplus liquidity rises materially. While no firm
expectations have emerged on the quantum of any increase, some participants
said a CRR hike of 25-50 basis points (bps) could be considered if the central
bank seeks to absorb a portion of excess liquidity. CRR is the amount of cash,
as a percentage of deposits, that banks are required to keep with the RBI.
(Business Standard)
India remains ADB's largest
pvt sector market; eyes Rs.1 bn in direct support: India continues to be the
largest market for the Asian Development Bank's private sector operations, with
the multilateral lender expecting to provide about USD 1 billion in direct
financing this year to support projects aligned with the country's development
objectives. "Last year, we did more than USD 4 billion for sovereign and
more than USD 1 billion for the private sector from our own capital,"
Asian Development Bank (ADB) Vice-President (Market Solutions) Bhargav Dasgupta
told PTI in an interaction. Besides, he said, "We mobilised an equal
amount for them from other sources. In effect, the flow was USD 2 billion to
private sectors through the ADB in 2025".
(Business Standard)
Bandhan Bank pivots towards
secured lending: Bandhan
Bank’s corporate loan book has overtaken its microfinance portfolio, marking a
strategic shift by the private lender to reduce dependence on its unsecured
lending segment. The bank’s wholesale loans have grown to Rs 56,000 crore,
surpassing its microfinance loans, which stood at Rs 55,000 crore. The shift
comes as the lender accelerates its efforts to de-risk its loan portfolio
following stress in the microfinance sector. Bandhan Bank plans to increase the
share of secured assets to 60% of its overall loan book, up from 56% as of
March 31, 2026, with corporate lending emerging as a key growth driver.
(Financial Express)
RBI seeks daily reporting
of FCNR (B) deposits, ECB data: The Reserve Bank of India
(RBI) has asked banks to report data on FCNR (B) deposits, external commercial
borrowings and overseas foreign currency borrowings daily, it said in a
notification on Friday. On June 8, the RBI launched the swap facility for FCNR
(B) deposits and ECBs. It would absorb the full hedging cost on incremental
FCNR(B) deposits and partial hedging cost for ECBs, as part of a broader
package of measures aimed at attracting foreign currency inflows and supporting
the rupee. The data from June 8 till issuance of these directions, shall be
submitted along with the first reporting due on June 22, the RBI said.
(Financial Express)
Banks seek RBI clarity on
leveraged NRI FCNR deposit structures: Indian banks are seeking
clarity from the RBI on allowing overseas branches to lend to non-residents for
FCNR(B) deposits. Some lenders, like SBI, have already launched structured
products enabling this, with deposits as collateral. Bankers hope for explicit
regulatory comfort to boost NRI deposits before a special RBI window closes in
September, potentially offering significant leveraged yields.
(Economic Times)
SBI's improving performance
warrants better valuation, chairman Setty says: State Bank of India's chairman
believes the bank is undervalued, citing improvements in financial strength,
customer base, and earnings. He highlighted the success of the Yono digital
platform, strengthened capital position, and the significant growth in value
from its subsidiaries. SBI is also focusing on technology adoption, including
AI, and sees opportunities in power, MSME, and retail lending, positioning
itself for future growth despite evolving funding landscapes.
(Economic Times)
PhonePe wallet inactivity
fees do not affect bank accounts or UPI transactions: PhonePe clarifies inactivity
fees apply solely to its prepaid wallet, not linked bank accounts or UPI
transactions. Users receiving notifications despite app usage are reminded
wallet and UPI activities are tracked separately. The company assures no
deductions from bank accounts or negative wallet balances, offering 15 days'
notice for users to reactivate, withdraw, or close their wallets.
(Economic Times)
Centre plans to create 7
State clusters backed by IITs to boost indigenous defence manufacturing: For the first time, the Centre is working towards
creating clusters of States and Union Territories, each backed by dedicated
IITs and other centres of excellence, to build a federal architecture for
defence manufacturing aimed at reducing import dependence and boosting economic
growth. The seven proposed clusters are independent of the existing defence
industrial corridors in Uttar Pradesh and Tamil Nadu.
(Business Line)
NHB probing Aavas
Financiers over loan classification lapses: The National Housing Bank (NHB) has begun a
formal probe into CVC Capital Partners-backed mortgage lender Aavas Financiers
after preliminary inquiries uncovered loan classification irregularities. The
sector regulator has recalled refinancing support worth nearly Rs 500 crore —a
punitive action that has set off a sweeping leadership overhaul at the company.
ET was the first to report on April 13 that managing director and CEO Sachinder
Bhinder was being asked to step down, with Manu Singh — former home loans head
at Kotak Mahindra Bank — set to take over. A week later, on April 20, the
company confirmed Bhinder's resignation and Singh's appointment as the new CEO.
(Economic Times)
World Bank
clears ?4,000-crore loan for Haryana water security project: Haryana Chief Minister Nayab Singh Saini
on Saturday said the World Bank has approved a loan of ?4,000 crore for the
state's ambitious 'Jal Sanrakshit Haryana' project aimed at making Haryana
water-secure and self-reliant. The total cost of the project is ?5,714 crore
and it will be implemented in phases between 2026 and 2032. The programme will
cover 15 clusters spread across 48.94 lakh acres across the state. Chairing a
review meeting of senior officials here, Saini directed departments to prepare
a comprehensive water management plan and ensure its effective implementation
at the grassroots level.
(Business Standard)
RBI overhauls Lead Bank
Scheme after review, issues new guidelines: The Reserve Bank of India has
revamped the Lead Bank Scheme to boost district-level credit planning and
financial inclusion. New guidelines, released on June 19, aim to enhance credit
flow to priority sectors and improve access to financial services. A three-tier
committee structure has been introduced to strengthen coordination between
banks and government agencies, with Lead Banks now appointing dedicated
managers to oversee scheme implementation across all districts.
(Economic Times)
APEDA Facilitates
First-Ever Export of Dried Whole Egg Powder from Odisha to Austria: The Agricultural and Processed
Food Products Export Development Authority (APEDA), under the Ministry of
Commerce & Industry, Government of India, facilitated the first-ever
commercial export shipment of dried whole egg powder from Balangir, Odisha, to
Austria, marking a significant milestone in promoting value-added agricultural
and processed food exports from India. To strengthen the regional egg
value chain and promote export-led growth, the exporter established a
state-of-the-art egg processing facility in Balangir in 2025. The facility
manufactures dried egg products that comply with national and international
food safety and quality standards, including EIC standards, European Union
hygiene requirements and other globally recognised regulations. The unit is
certified under FSSC 22000 Version 6 and also holds HALAL and KOSHER
certifications.
(PiB)
Sebi mulls
easing deep disclosures for foreign portfolio investors: In a bid to stem the ebbing tide of
foreign portfolio investment (FPI) flows on Dalal Street, SEBI is reviewing the
granular disclosure framework pertaining to ultimate beneficial ownership for
FPIs, originally introduced in August 2023, including the mandate that they
must invest in at least three Indian stocks. According to sources aware of the
development, Sebi may consider allowing FPIs to invest in a single stock, as
against the existing requirement of holding at least three stocks in India, a
condition that has raised concerns among some overseas investors. The regulator
is also holding parleys for a possible change in the ownership threshold for
stipulating the identification of ultimate beneficiary owners (UBOs). Sebi had
also mandated that FPIs holding more than 50 per cent of their Indian equity
assets under management (AUM) in a single corporate group would have to share
additional granular disclosure requirements.
(PiB)
NEOLIBERALISM
§ Neoliberalism
refers to a policy model that emphasizes private enterprise and shifts economic
control from government to the private sector. Influenced by leaders like
Margaret Thatcher and Ronald Reagan, it advocates for lesser government
intervention, focusing on free-market capitalism and fiscal austerity.
§ Understanding
neoliberalism involves looking at its policies, such as privatization and
deregulation, which impact economies and societies worldwide.
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 : 94.4735
INR
/ 1 GBP : 124.6036
INR
/ 1 EUR : 108.0273
INR
/100 JPY: 58.5500
EQUITY INDEX
Sensex:
76802.90 (-607.08)
NIFTY:
24013.10 (-154.90)
Bnk NIFTY: 57685.75 (-278.05)
World Rainforest
Day: June 22 is
globally recognized as World Rainforest Day. It is dedicated to raising
awareness about the critical importance of tropical rainforests and mobilizing
efforts to protect them from destruction.
Historical
events: June 22 marks
major global and Indian milestones, including the 1939 founding of the All
India Forward Bloc by Netaji Subhash Chandra Bose. Globally, it witnessed the
launch of Operation Barbarossa in 1941 and Diego Maradona’s historic "Hand
of God" goal in the 1986 FIFA World Cup.
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