Issue: 1277
· Centre appoints Madhya
Pradesh cadre IAS officer Anurag Jain as NITI Aayog CEO.
· Godrej Capital enters gold
loan business with Kanakadurga Finance acquisition.
· Purple Finance to acquire
Saksham Gram Credit for rural expansion.
· InsuranceDekho enters cricket
sponsorship with India's Zimbabwe, Sri Lanka tours.
· S&P raises Pakistan's
sovereign rating to 'B'.
· Govt aims to double food
processing to 25% over 5 years.
· RBI net sells $6 billion in
spot forex market in May amid volatility.
· Bandhan Bank shares plunge
nearly 17% after lender cuts RoA guidance.
India holds growth momentum
as global economy grapples with uncertainty: RBI Bulletin: India has remained one of the world's
fastest-growing major economies, despite an uncertain global economic
environment, and has sustained momentum in economic activity through June,
according to the Reserve Bank of India's (RBI) latest Bulletin. The central bank said the
global economy continues to face challenges from supply chain disruptions,
fragmented trading relationships and geopolitical uncertainties. Even so,
India's industrial and services sectors have remained resilient. "Amidst
these uncertainties, India remains among the fastest growing major economies
across the globe and has been able to sustain the momentum in economic
activities through June," the RBI said in the Bulletin.
(Moneycontrol)
Borrowing costs in bond
market may rise as upside risks to India's 10-year bond yield persist: BoB
Report: Expect an uptick in borrowing
costs within India's bond market as uncertainties loom large. The 10-year
government bond yield remains under pressure from upside risks. Non-Banking
Financial Companies are facing steepest borrowing premiums, outpacing corporate
borrowers, who are themselves grappling with increased spreads over public
sector counterparts. This environment of macroeconomic unpredictability, along
with higher bond yields, could lead to even steeper borrowing rates.
(Economic Times)
RBI sold $6.1 bn in May as
oil weighed on the rupee: The Reserve Bank of India
(RBI) was a net seller of $6.1 billion in the foreign exchange market in May,
data released on Wednesday showed, as heightened volatility in global energy
markets and geopolitical tensions weighed on emerging-market currencies,
including the rupee. The central bank purchased
$22.2 billion and sold $28.3 billion during the month, resulting in a net sale
of $6.104 billion, according to the RBI's July Bulletin. In April, the RBI had
sold a net $8.944 billion in the forex market.
(Economic Times)
IndusInd Bank Q1 results:
Net profit rises 47% to Rs 1,003 crore, asset quality improves: IndusInd Bank on July 22
reported 47% jump in standalone net profit at Rs 1,003 crore for the quarter
ended June 30, 2026, helped by a drop in funds set aside for potential bad
loans. It reported standalone net profit of Rs 684 crore in the year-ago
period. Gross NPA and Net NPA ratios
were at 3.25% and 0.95% in Q1FY27 as compared to 3.64% and 1.12%, respectively,
in Q1FY26. Net Interest Income (NII) in Q1 FY27 is at Rs 4,685 crore as
compared to Rs 4,640 crore in Q1FY26, a rise of 1%. Net interest margin was at
3.57% for Q1FY27 as compared to 3.46% for Q1FY26.
(Moneycontrol)
New norms lift banks’
liquidity coverage ratio in Q1: The new liquidity coverage
ratio (LCR) norms that took effect in April have helped banks improve their
ratio as well as freed up liquidity to support credit growth at a time when
deposit growth is lagging. Under the revised norms, deposits from non-financial
entities such as trusts (educational, charitable and religious), partnerships
and limited liability partnerships (LLPs) now carry a lower run-off factor of
40%, compared with 100% earlier. The run-off factor indicates the likelihood of
deposits being withdrawn from a bank. A higher run-off factor requires banks to
hold more high-quality liquid assets (HQLA), mainly government securities, that
can be quickly liquidated during periods of financial stress.
(Financial Express)
Foreign banks show
strongest rate transmission in current RBI easing cycle: Bulletin: Foreign banks have exhibited
the strongest transmission of the Reserve Bank of India's policy easing during
the current rate-cut cycle, lowering both lending and deposit rates more
sharply than their public and private sector peers, according to the RBI's
bulletin. In its monthly bulletin
released on Wednesday, the RBI said that during the easing cycle between February
2025 and May 2026, scheduled commercial banks (SCBs) reduced repo-linked
external benchmark-based lending rates (EBLR) and marginal cost of funds-based
lending rates (MCLR), with pass-through to fresh lending rates remaining
particularly strong in infrastructure and other EBLR-mandated sectors. The
bulletin showed that foreign banks cut weighted average lending rates (WALR) on
fresh rupee loans by 1.24 percentage point, compared with 1.08 percentage point
by private banks and 0.66 per cent by public sector banks.
(Economic Times)
Punjab National Bank eyes
ambitious target to break into world's top 100: Punjab National Bank is
setting its sights on breaking into the elite group of the world's top 100
lenders in the near future. With a significant surge in net profit reported
last quarter, the bank is optimistic about accelerating credit growth and
diversifying its business interests. Plans include launching wealth management
and acquisition finance services, as well as pursuing foreign-currency deposits
through a central bank facility.
(Economic Times)
No proposal to utilise
unclaimed LIC, EPFO funds for other purposes: Govt: Unclaimed insurance funds over
ten years go to the Senior Citizen Welfare Fund. Life Insurance Corporation of
India holds unclaimed amounts totaling over seven thousand crore rupees.
Inoperative Employees Provident Fund accounts contained over nine thousand
crore rupees as of March 2026. Both LIC and EPFO are actively working to locate
beneficiaries and settle pending claims. Pilot projects are underway for
automatic settlement of smaller inoperative EPF accounts.
(Economic Times)
EAM Jaishankar, Rubio
discuss India-US trade deal, tariffs in Manila: External Affairs Minister S Jaishankar on Wednesday
met US Secretary of State Marco Rubio in Manila to discuss the proposed
India-US trade deal, tariffs and other key bilateral issues. The meeting, held
on the sidelines of the Association of Southeast Asian Nations (Asean) and Quad
foreign ministers’ meetings, came hours after US President Donald Trump
threatened steep tariffs on generic medicines, raising concerns among Indian
drugmakers. After the meeting, Jaishankar said in a social media post that
their discussion “focused on areas which are priority” for the India-US
comprehensive global strategic partnership, “including trade and tariffs,
energy, defence and security, critical minerals and artificial intelligence.”.
(Business Standard)
Markets fall for third day
as crude surge dents investor sentiment: Benchmark equity indices fell for the third
consecutive session on Wednesday as higher crude oil prices triggered broad-based
selling in the market. The indices recorded their biggest single-day decline in
two weeks, pushing the Nifty 50 below the 24,000 mark. The BSE Sensex fell 715.06 points, or 0.92
per cent, to close at 76,755.05, while the NSE Nifty 50 dropped 191.45 points,
or 0.79 per cent, to end at 23,996.25. Brent crude climbed above $94 a barrel
during the day as the US-Iran conflict intensified and attacks by Yemen's
Houthi rebels disrupted key shipping routes, raising concerns over global oil
supplies.
(Business Standard)
HCLTech likely
to build its first India data centre in Odisha's Bhubaneswar: Leading IT services company HCL
Technologies Ltd (HCLTech) has proposed to establish an artificial intelligence
(AI)-optimised data centre along with a global development centre (GDC) in
Bhubaneswar with an investment of around Rs.730 crore. The proposed facility
assumes significance as it could become HCLTech's first owned data centre in
India. While the company has long offered data centre-related services,
including infrastructure management, Cloud transformation and managed services
for global clients, it did not have its own data centre business.
(Business Standard)
SEBI, IFSCA-recognised
Category I and II AIFs exempted from PAN requirement: For expeditious onboarding of
foreign investors, the Central Board of Direct Taxes has amended the Income Tax
rules to exempt various categories of Alternative Investment Funds (AIFs),
including those located in International Financial Services Centres, from the
requirement of a PAN. Experts say this move will also ensure continuity of
reforms for foreign investors. Category I AIFs invest in
start-up or early-stage ventures, social ventures or SMEs, infrastructure or
other sectors or areas which the government or regulators consider as socially
or economically desirable. These include venture capital funds, SME Funds,
social venture funds, and infrastructure funds. AIFs which do not fall in
Category I and III and which do not undertake leverage or borrow other than to
meet day-to-day operational requirements. Category III AIFs are those
that employ diverse or complex trading strategies and may use leverage,
including through investments in listed or unlisted derivatives.
(Business Line)
Unified digital platform
for insolvency on the anvil: The insolvency framework is all set for its
biggest tech overhaul since inception with the Ministry of Corporate Affairs
(MCA) releasing a blueprint for the Integrated Platform for Insolvency
Ecosystem (iPIE). This will be a single digital platform connecting various
authorities like NCLT, NCLAT, Insolvency and Bankruptcy Board of India (IBBI),
MCA, and stakeholders such as information utility (IU), insolvency
professionals (IPs), lenders, valuers and bidders. This platform will replace
the current fragmented workflow with an end-to-end digital process that will
reduce duplication, speed up decision-making and provide a common source of
truth across the insolvency ecosystem.
(Financial Express)
NRI deposit
inflows fall 29% to $1.33 billion in April-May 2026: RBI: The flow of money from overseas Indians
into NRI deposit schemes dropped 29.25 per cent to $1.33 billion in the
April-May period of FY27, from $1.88 billion in the corresponding period of
FY26, according to RBI data. The total outstanding NRI deposits stood at
$165.96 billion as of the end of May 2026. Outstanding NRI deposits were
$166.72 billion in May 2025 and $165.59 billion in April 2026. During
the April-May period of FY27, inflows into FCNR(B) deposits dropped to $282
million, compared with $442 million in the corresponding period a year ago.
(Business Standard)
Economic Value Added (EVA)
Ø Economic Value Added (EVA) is a financial
performance metric that measures the true economic profit generated by a
business after accounting for the cost of all capital employed, including
equity and debt. Unlike traditional profit measures, EVA assesses whether a
company has created value beyond the returns expected by its investors.
Ø
It
is calculated as Net Operating Profit After Tax (NOPAT) minus the Capital
Charge (Capital Employed × Weighted Average Cost of Capital). A positive EVA
indicates that the company is generating returns above its cost of capital,
while a negative EVA suggests value destruction. Many organizations use EVA for
strategic decision-making, capital allocation, performance evaluation, and
executive compensation because it aligns managerial actions with shareholder
wealth maximization.
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 : 96.4745
INR
/ 1 GBP : 129.1250
INR
/ 1 EUR : 110.0867
INR
/100 JPY: 59.1500
EQUITY INDEX
Sensex:
76755.05 (-715.06)
NIFTY:
23996.25 (-191.45)
Bnk NIFTY: 57126.80 (-708.55)
National Broadcasting Day: July 23 is widely
celebrated in India as National Broadcasting Day, commemorating the first-ever
radio broadcast in the country made by the Indian Broadcasting Company in 1927.
Historical events: July 23 is a
pivotal date in history, marked by the births of legendary Indian freedom
fighters Bal Gangadhar Tilak in 1856 and Chandra Shekhar Azad in 1906.
Globally, it is celebrated as National Broadcasting Day in India and is also
the day in 1829 when the typographer—a precursor to the typewriter—was patented
in the United States.
****Have a nice Day****
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