Issue: 1252
·
SREI Finance withdraws plea against Nirmal Lifestyle Mulund’s
revival plan at appellate tribunal.
·
Infosys eyes $300-400 bn AI-first services opportunity by
2030: Nilekani.
·
RBI clarified that commercial banks, are allowed to extend
loans to non-residents, against FCNR(B) deposits mobilised under the swap
facility announced earlier this month.
·
Govt revises FCRA penalties, tightens rules for
foreign-funded NGOs.
·
Govt to sell 2% stake in IRFC at Rs 91 per share; OFS may
fetch over Rs 2,300 crore.
·
Banks raise Rs.1 trillion through CDs in June as deposit
growth lags.
·
Banking liquidity turns deficit after 3 months on tax
outflows, cash drain.
KOSPI meltdown drags Indian
indices into red; Nifty falls 279 points: South Korea's KOSPI plunged
more than 10 per cent on Tuesday, briefly triggering a circuit breaker, and the
shockwaves were felt acutely in Mumbai — dragging the Nifty 50 down 278.80
points, or 1.16 per cent, to close at 23,824.10, while the Sensex shed 893.39
points to settle at 76,200.68. Both benchmark indices closed near their day's
lows after a session that began on a flat note before selling intensified
sharply in the second half. The broader market followed suit, with the Nifty
Midcap 100 falling 1.05 per cent to 62,070 and the Nifty Smallcap 100 declining
a comparatively modest 0.48 per cent to 18,805, suggesting selective buying at
lower levels in smaller stocks.
(Business Line)
India-US trade talks begin
amid farmers’ concerns over agriculture market: US Trade Representative
Jamieson Greer and Commerce Minister Piyush Goyal on Tuesday began two days of
talks to advance negotiations on an interim trade deal, amid concerns from some
farmer groups over Washington’s demands, which they fear could undermine India’s
agricultural interests. “The US remains focussed on securing a fair, reciprocal
trade deal that opens markets for American exporters and delivers benefits to
both nations,” the US Embassy to India posted on social media platform X
reinforcing Washington’s long-standing push for lower tariffs and greater
market access for American goods, including agricultural products, in India.
(Business Line)
Private sector growth slips
to 3-month low in June as demand, confidence cool, PMI shows: India’s private sector
expanded at its slowest pace in three months ?in June as weaker demand growth
weighed on both ?factory and services activity, while business confidence
?slipped to its lowest level since January, ?a survey showed. HSBC’s flash
India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global,
fell ?to 57.4 this month from May’s 59.3. A PMI reading above 50.0 indicates ?expansion
in activity. Overall new orders, a ?key ?gauge of demand, rose at their
slowest ?pace since March, with firms
citing competitive pressures and gas shortages as obstacles to securing
business.
(Business Line)
RBI allows Indian banks to
lend against overseas foreign currency deposits: India's central bank has
allowed domestic lenders to extend ?loans to non-residents against foreign
currency deposits, including ?via their offshore branches, the Reserve Bank ?of
India said in a ?notice on Tuesday. The move is
expected to boost the overall amount of FX deposits garnered via ?the route,
which was announced earlier this month as part of a ?broader measures to
bolster dollar inflows into ?the ?country. Under the scheme to
raise FX deposits, Indian banks will be allowed to extend loans ?to non-residents
from ?their overseas branches, including via those in India's tax-neutral GIFT
City, using deposits garnered as collateral. Domestic lenders will also be ?allowed
to issue a standby letter of ?credit against such FX deposits.
(Business Line)
RBI allows banks to route
FCNR(B) deposits through GIFT City branches: RBI has allowed Indian banks
to use their branches in GIFT city to mobilise Foreign Currency Non-Resident
(Bank) [FCNR(B)] deposits and offer leverage for such deposits. According to sources,
State Bank of India (SBI) is expected to be among the first lenders to launch
the offering through its GIFT City branch in Ahmedabad. “We are launching our
FCNR(B) deposits from the GIFT City branch. We are offering leverage of up to
nine times the deposit amount held by NRIs and high-net-worth individuals (HNIs),”
a senior SBI official said. India’s largest lender, SBI, has a network of 244
international offices across 29 countries. Currently, it offers loans against
FCNR(B) deposits maintained at its India branches through its GIFT City unit.
(Financial Express)
Gold loans surge in Retail
Mix; NBFCs outpace banks in market share gains: Experian report: A report by credit bureau
Experian shows that gold loans have become a major driver of India’s retail
credit growth, with their share in the retail loan portfolio rising from 18% in
FY23 to 41% in FY26. The shift comes alongside a sharp rise in global gold
prices, which have increased about 130% over the past five years.
(Economic Times)
RBI says UPI-linked credit
lines must follow same rules as traditional loans; Closes regulatory arbitrage:
The
Reserve Bank of India has mandated uniform prudential treatment for all credit
facilities, including those disbursed via UPI. This move closes a regulatory loophole
allowing banks to offer lighter treatment to UPI-linked credit. Now, the nature
of the credit, not the technology, dictates capital adequacy and provisioning,
ensuring consistent regulation across all credit products.
(Economic Times)
PSU banks lose gold loan
sourcing share as private banks, NBFCs gain traction: Report: ublic sector banks' dominance
in gold loan sourcing is gradually facing pressure as private banks and NBFCs
gain traction, according to the report. This is supported by stronger distribution
reach, faster turnaround times and changing customer preferences, according to
an Experian report titled 'Gold Loans in Transition: Market Evolution &
Consumer Patterns'. "The market structure is gradually shifting toward
private and NBFC-led sourcing, highlighting stronger distribution reach, faster
turnaround times, and growing customer preference for non-bank lenders in the
gold loan segment," the report said. According to the report, the
gold loan market share of public sector banks based on sourcing value stood at
37 per cent in Q4FY26, as against 45 per cent in Q4FY25, and 53 per cent in
Q2FY26.
(Economic Times)
Calcutta Stock Exchange
board meeting set for this month after revival proposal: After the West Bengal government proposed to support
the revival of the 118-year-old Calcutta Stock Exchange, a board meeting of the
bourse is expected to take place this month. In his Budget speech, Finance
Minister Swapan Dasgupta said the Calcutta Stock Exchange (CSE) is on the verge
of closure due to several hurdles, and the State government proposed to support
its revival to reclaim Kolkata’s place as a financial capital. Trading at CSE, one of
India’s oldest bourses, was suspended by SEBI in April, 2013, following
regulatory non-compliance. CSE members continued to trade directly on the NSE
platform through the local bourse. However, this service stopped in 2024. The
Calcutta Stock Exchange applied for a voluntary exit from stock exchange
operations in February, 2025. It is still pending with SEBI and final orders
have not yet been passed.
(Business Line)
Adani Group to invest about
Rs.1 lakh crore across airports in next 5 years: India emerged as the global leader in ship
recycling in 2025, growing its market share to 35.4% from 30.1% in 2024, according
to a United Nations Conference on Trade and Development (UNCTAD) report cited
by the shipping ministry. The country processed 2.99 million gross tons (GT)
during the year, marking a nearly 60% increase from 1.86 million GT in 2024.
With this, the ministry said, India has achieved its Maritime India Vision
(MIV) 2030 goal of becoming the top global ship recycling nation well ahead of
schedule. The achievement reflects the impact of maritime policy reforms and
the government’s ease-of-doing-business initiatives, it added.
(Mint)
Bajaj Capital
appoints Jai Bajaj as MD & CEO: Bajaj Capital has appointed Jai Bajaj as
its new Managing Director and CEO, marking a pivotal moment for the 60-year-old
firm. The company is embracing a technology-driven approach to financial
advisory, aiming to become a lifelong partner for customers. Future plans
include digital initiatives for financial readiness, retirement planning, and
enhanced customer experiences, reinforcing its commitment to building strong,
lasting relationships.
(Economic Times)
RBI eases TReDS norms;
simplifies onboarding process: The Reserve Bank of India on
Tuesday relaxed the onboarding rules for small businesses using trade
receivables discounting system (TReDS) platform. Under the new guidelines, the
central bank also plans to streamline capital requirements for authorised
entities with those for other non-bank payment system operators (PSOs), and
allow financiers to obtain credit guarantee cover for exposures taken on TReDS.
TReDS is an online platform that enables small businesses to sell their
invoices or trade receivables to banks and financial institutions to access
working capital. The RBI said that the platform must implement necessary
validation checks to confirm the seller is an MSME, and ensure funds owed to
the seller are credited only to the seller’s bank account.
(Financial Express)
Union Home Minister and
Minister of Cooperation launches NAFED’s e-auction portal NAFEX.in: Union Home Minister and
Minister of Cooperation Shri Amit Shah today launched the e-auction portal
NAFEX.in of the National Agricultural Cooperative Marketing Federation of India
Ltd. (NAFED) in New Delhi. NAFED is today serving more
than 74 lakh farmers of the country with a turnover of Rs.30,000 crore and a
profit of Rs.500 crore.
(PiB)
Sebi weighs
allowing celebrity endorsements for regulated entities: SEBI on Tuesday proposed allowing
celebrity endorsements for its regulated entities (REs) like asset management
companies (AMCs), stock brokers, investment advisors, and others in its overhaul
of advertisement codes. Such celebrity endorsements will require prior approval
from the regulatory body or exchanges. However, Sebi may allow celebrity
endorsements only at the brand or entity level and not for endorsing their
products or services.
(Business Standard)
LOSS DISTRIBUTION APPROACH (LDA)
§ The
Loss Distribution Approach (LDA) is a statistical modeling technique used in
banking, insurance, and enterprise risk management to estimate potential
financial losses from operational risk events.
§ It
independently models loss frequency and loss severity, then aggregates them to
determine total risk exposure and required capital reserves.
§ Total
risk and capital requirements are calculated based on the probability of
aggregated losses over a defined period (usually one year).
§ Firms
use LDA to calculate the Value at Risk (VaR), identifying the amount of
economic capital needed to survive severe "tail-risk" events.
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 : 94.7064
INR
/ 1 GBP : 125.3897
INR
/ 1 EUR : 108.2008
INR
/100 JPY: 58.5800
EQUITY INDEX
Sensex:
76200.68 (-893.39)
NIFTY:
23824.10 (-278.80)
Bnk NIFTY: 57183.75 (-751.85)
International Day
of Women in Diplomacy: This day
recognizes the contributions of women to peace, human rights, and development.
It serves as a call to action for governments and international organizations
to promote equal representation, remove structural barriers, and ensure women
have an equal voice in global decision-making.
Historical
events: June 24 holds
significant milestones in history. In India, it is marked by the martyrdom of
the Gondwana queen Rani against the Mughals in 1564 and the Indian cricket
team's lowest Test score of 42 against England in 1974. Globally, it is noted
for the longest Wimbledon match ever played (2010).
****Have a nice Day****
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