Issue: 1172
· Bank of Baroda launches
UPI-based overdraft credit line for women self-help groups.
· RBI Board reviews impact of
global geopolitical tensions on Indian financial markets and currency.
· ICICI Bank receives GST
demand notice of about ?769 crore from tax authorities.
· Gold prices fall sharply
during the week due to strong US dollar and profit booking.
· Global central banks remain
cautious as war risks may trigger inflation and interest rate hikes.
· US Federal Reserve holds
interest rates but raises inflation outlook for 2026.
· Oil price volatility
continues to influence global inflation outlook and monetary policy decisions.
RBI injects ?25,101 crore
in banking system via 3-day VRR auction: RBI on Friday injected ?25,101
crore transient liquidity in the banking system through a three-day variable
rate repo (VRR) auction. The RBI injected the funds at cut-off and weighted
average rates of 5.26 per cent, the central bank said in a release. The liquidity
injected was much lower than the notified amount of ?75,000 crore, despite a
sharp drop in surplus liquidity in the banking system due to advance tax
payments.
(Business Line)
Banking liquidity surplus
shrinks to ?16,875 crore, lowest since Jan 22: The net liquidity surplus in
the banking system fell to ?16,875 crore on Thursday, the latest data by RBI
showed, the lowest since January 22. Even as there was tepid demand in Friday’s
three-day variable rate repo auction, the central bank announced another such
overnight auction on Monday (March 23) for a notified amount of ?1 trillion.
The weighted average call rate settled at 5.34 per cent on Friday, against the
previous close of 5.29 per cent. Market participants said that due to scheduled
outflows from the banking system on account of advance tax payments and goods
and services tax, the surplus in system liquidity narrowed.
(Business Standard)
Govt hikes commercial LPG
allocation to 50% as domestic output improves: The government has approved an
additional 20 per cent allocation of commercial LPG to states and Union
Territories, taking the total allocation to 50 per cent, as increased domestic
output is helping the situation crawl back to normalcy. The three-week-long war
in West Asia disrupted energy supplies to India, leading to initial curtailment
in LPG supplies to commercial establishments like hotels to prioritize supplies
to household kitchens. Later, a fifth of their supplies were restored, and the
government offered an additional 10 per cent, subject to states expediting
piped gas projects.
(Business Line)
SBI gets Rs 6,337.5 crore
tax demand notice, says no impact on operations: SBI, said on Friday that it
has received an income tax demand notice amounting to Rs 6,337.5 crore with interest.
The PSU bank said it plans to challenge the order before appellate authorities.
It also said that the tax order will have no impact on its operations or
business activities. The demand, it noted, has been
raised pursuant to the scrutiny assessment proceedings conducted for AY24, and
the bank is already in litigation on similar grounds for earlier years. The PSU
bank made the disclosure as the amount exceeds materiality threshold under SEBI
Listing Obligations and Disclosure Requirements (LODR) norms. These are core
rules that require listed companies to ensure transparency, governance and
timely disclosure to stock exchanges.
(Zee Business)
Indian lenders pay steepest
premium for short-term funds in 6 years: Indian lenders are shelling
out premiums for short-term funds last ?seen during the Covid-19 crisis, with
?sluggish deposit growth driving dependence on certificates of deposit (CDs)
and pushing ?borrowings to a record high. Outstanding CDs skyrocketed to a
record high of 6.64 trillion rupees ($71.04 billion) as of February 28,
registering a staggering jump of 75% over the last two years. "Some banks
have raised fixed ?deposit rates, ?but the ?credit growth is so strong
that lenders have to rely on CDs, and some pressure should persist till the end
of the year,"
(Economic Times)
RBI imposes penalty on HSBC: The Reserve Bank on Friday
said it has imposed a Rs 31.8 lakh penalty on Hongkong and Shanghai Banking
Corporation for non-compliance with certain directions on inoperative accounts
and unclaimed deposits. In a statement, the Reserve Bank said a statutory
inspection for supervisory evaluation of the bank was conducted with reference
to its financial position as of March 31, 2025. Based on supervisory findings
of non-compliance with the provisions of RBI directions and related
correspondence, a notice was issued to the bank.
(Economic Times)
Axis Bank
becomes official banking partner of DP World PGTI: Private sector lender Axis Bank has
announced a partnership with the DP World Professional Golf Tour of India (DP
World PGTI) as its official banking partner. This collaboration marks a significant
step toward strengthening the growth of professional golf in India while
reinforcing Axis Bank's commitment to supporting sporting excellence and
community engagement, the bank said in a statement on Friday.
(Economic Times)
HDFC Bank leads Rs 1 lakh
crore wipeout as five top firms lose market value: While HDFC Bank, ICICI Bank,
Tata Consultancy Services (TCS), Bajaj Finance and Hindustan Unilever were the
laggards, Reliance Industries, Bharti Airtel, State Bank of India, Infosys, and
Life Insurance Corporation of India (LIC) emerged as the winners. Reliance
Industries remained the most-valued firm, followed by HDFC Bank, Bharti Airtel,
State Bank of India, ICICI Bank, TCS, Bajaj Finance, Infosys, LIC and Hindustan
Unilever Ltd.
(Moneycontrol)
Govt may use OFS route to
boost public shareholding in IDBI Bank: The government may consider
selling a stake in IDBI Bank through the Offer-for-Sale (OFS) route to increase
public shareholding, after the unsuccessful attempt to divest stake in the Life
Insurance Corporation of India-controlled lender, news agency PTI reported,
citing sources. Currently, the public float in
IDBI Bank is only 5.29%, limiting the scope of fair valuation. The remaining
shares are with insurance behemoth Life Insurance Corporation of India (LIC),
with a controlling stake at 49.24%, while the Government of India (GoI) holding
stood at 45.48 %.
(Moneycontrol)
Index of eight core
industries rises 2.3% in February 2026: The combined Index of Eight Core Industries
increased by 2.3 per cent (provisional) in February 2026 as compared to February
2025. The production of Cement, Steel, Fertilisers, Coal and Electricity
recorded positive growth in February 2026. The ICI measures the combined and
individual performance of production of eight core industries, viz. coal, crude
oil, natural gas, refinery products, fertilizers, steel, cement and electricity.
The Eight Core Industries comprise 40.27 per cent of the weight of items
included in the Index of Industrial Production (IIP).
(Business Line)
'India will buy as much
Iranian oil as it can in 30 days': Former Indian diplomat: Former Indian diplomat Veena Sikri on Saturday
said India is likely to maximise oil purchases from Iran during the temporary
sanctions waiver period while continuing to diversify its energy imports to
safeguard long-term energy security. In an interview with ANI, Sikri said the
recent lifting of sanctions appears temporary, given the evolving conflict
between Iran and the US and Israel. "Well, I think it's good that, you
know, we are again able to buy oil from Iran. I think the lifting of the
sanctions seems to be very temporary because there's no idea how the conflict
between Iran on one hand and the US-Israel on the other hand how it's
developing,"
(Moneycontrol)
MF equity cash holdings up
by ?4,000 cr amid volatile market: Odisha is likely on the cusp of adding
precious minerals to its rich mining portfolio. Known for its vast reserves of
iron ore, bauxite and chromite, the state has now reported the presence of
diamonds, rubies and gold-bearing formations across several districts. Replying
to questions in the Assembly on Thursday, Steel and Mines Minister Bibhuti
Bhushan Jena said diamond-bearing stones have been identified in the Kalmidadar
area of Nuapada district. He said detailed technical and economic assessments
are underway to determine the volume and viability of the discovery.
(Business Standard)
Government launches ?20,000
crore credit guarantee scheme for microfinance institutions: The government has rolled out a ?20,000-crore
Credit Guarantee Scheme for Microfinance Institutions 2.0, a move that industry
body Microfinance Industry Network (MFIN) said would help revive credit flow to
underserved segments and ease funding constraints in the sector. The scheme
comes amid a sharp decline in bank funding to microfinance institutions (MFIs),
particularly smaller players. According to MFIN, bank lending to the sector
dropped by nearly 70% between the fourth quarter of FY24 and the third quarter
of FY26, severely impacting liquidity.
(Business Line)
Finmin makes changes to Mutual
Credit Guarantee Scheme to support MSMEs: Finance Ministry on Saturday
said that loans up to ?100 crore for the purchase of plant, machinery and
equipment by MSME will be eligible for guarantee coverage. This will be
possible due to changes made in Mutual Credit Guarantee Scheme to Support MSME
Manufacturers and Exporters (MCGS-MSME). According to a Finance Ministry
statement, modifications to the existing scheme will make 5 per cent upfront
contribution refundable. It will be 1 per cent each from the 4th year onwards,
subject to satisfactory performance of loan account. Service Sector MSMEs are
also included in the scheme. Cost of equipment/ machinery will be reduced up to
60 per cent of project cost, down from the earlier 75 per cent. Tenure of guarantee
will be 10 years. Furthermore, special
provisions have been incorporated into the scheme for exporters. Accordingly,
profitable units that have exported at least 25 per cent of their sales
turnover in each of the previous 3 financial years and satisfyi certain export
realisation conditions will be eligible under the scheme. Guaranteed loan
amount will be ?20 crore. Upfront contribution will be 2 per cent of loan
amount (Max ?40 Lacs). 1 per cent each will be refundable in 4th and 5th year
of the guarantee period. 75 per cent of the amount in default will be
guaranteed. Guarantee fee will be NIL in the first year, while it will be 0.50
per cent of loan outstanding.
(PiB)
Union Minister for Finance
and Corporate Affairs launches ‘PRARAMBH 2026’ — Income Tax Department’s
nationwide awareness campaign on Income Tax Act, 2025: Union Minister for Finance and
Corporate Affairs Smt. Nirmala Sitharaman launched ‘PRARAMBH 2026’ — Income Tax
Department’s nationwide awareness campaign on Income Tax Act, 2025, in New
Delhi, today. This multimedia initiative, spanning print, radio, television,
outdoor, digital and social media, has been designed to build awareness about
the key features of the new Act, which is set to come into effect from
01.04.2026. The campaign includes creative
communication initiatives, taxpayer guidance material such as guidance notes,
tutorial videos and brochures, and extensive public engagement through digital
and on-ground platforms, including the MyGov Quiz initiative.
(Business Standard)
YIELD CURVE INVERSION
A Yield Curve shows interest rates of bonds
across different maturities.
Meaning:
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 : 93.3483
INR
/ 1 GBP : 125.1564
INR
/ 1 EUR : 107.9436
INR
/100 JPY: 58.9400
EQUITY INDEX
Sensex:
74532.96 (+325.72)
NIFTY:
23114.50 (+112.35)
Bnk NIFTY: 53427.05 (-23.95)
Martyrs' Day
(Shaheed Diwas): March 23 is
celebrated as Martyrs' Day (Shaheed Diwas) in India to honor the sacrifices of
freedom fighters Bhagat Singh, Sukhdev Thapar, and Shivaram Rajguru, who were
hanged by British authorities on this day in 1931. It is a day of national tribute
marking their courage in the struggle for Indian independence.
Historical
events: March 23 is a
significant date in Indian history, observed as Shaheed Diwas (Martyr's Day) to
honor the 1931 execution of freedom fighters Bhagat Singh, Sukhdev Thapar, and
Shivaram Rajguru in Lahore Jail. Globally, this date is known for Pakistan
becoming the first Islamic Republic in 1956 and several historical milestones.
****Have a nice Day****
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