Issue: 1330
·
US 10-year Treasury yield hits 5.05%, highest since 2007.
·
NSE shares to trade on Metropolitan Stock Exchange of India
from 24 September.
·
Bangladesh turns to India for wheat as Black Sea disruption
pushes up prices.
·
Central govt employees to get salary in advance on Sept 25
ahead of 3-day bank strike.
·
PhonePe gets UAE central bank’s in-principle approval for
payments, wallet licences.
·
Trade bodies call for 'No UPI Day' on October 2 to protest
MDR levy.
S&P Global, Fitch, ADB,
OECD raise India’s GDP forecast to around 7% for FY27: With good growth during April-June quarter and
continued resilience amid West Asia crisis, S&P Global, Asian Development
Bank (ADB), Fitch and OECD (Organisation for Economic Co-operation and Development)
on Wednesday raised India’s growth forecast for current fiscal to around 7 per
cent. This is higher than Reserve Bank of India forecast of 6.7 per cent. Last
week Moody’s raised estimates to 7 per cent from 6 per cent. ADB upgraded its gross
domestic product (GDP) growth forecast for India to 7 per cent from 6.6 per
cent for current fiscal. OECD raised India’s GDP growth projection for
current fiscal by 80 basis points to 7.1 per cent.
(Business Line)
Private business activity
rebounds to 3-month high in Sep, PMI shows: India’s private sector
business activity rose to a three-month high in September as output improved
across manufacturing and services, according to a private survey released on
Wednesday. The HSBC Flash India
Manufacturing Purchasing Managers’ Index (PMI) rose to 55.7 in September from
52.8 in August. The Flash India Services PMI Business Activity Index rose to
55.8 from 54.1. The composite index was at 56.5, compared with 54.3 in August.
It remained above the 50 mark separating expansion from contraction for the
62nd consecutive month.
(Business Standard)
Retail sector logs 10%
growth in Aug on stable consumer demand: RAI survey: India's retail sector
maintained a steady trajectory in August, recording a 10 per cent year-on-year
(Y-o-Y) pan-India growth, according to a business survey by the Retail
Association of India. Building on July's strong
recovery, stable consumer demand across key regions and categories indicates
strong industry preparation for the upcoming festive peak, it said. For August
this year, regional sales growth remained consistent across the country at 10
per cent, led by an 11 per cent growth in West India, which outperformed other
zones. South India followed closely at 10 per cent, matching the national
average while East India and North India delivered stable growth trajectories
during the month, registering 8 per cent and 9 per cent growth, respectively,
RAI said.
(Business Standard)
Morgan Stanley staffer
accidentally emails internal list of over 100 investment-banking deals to
clients: A
Morgan Stanley staffer accidentally leaked an internal document listing more
than 100 investment-banking deals the firm is pitching and monitoring in Asia,
revealing details of the bank’s pipeline, according to people familiar with the
matter. The list contained candidates
for initial public offerings, spanning from China to South Korea and India,
according to a copy seen by Bloomberg News and verified by people familiar with
the matter. The list — which focused mostly on Asia, along with Europe, the
Middle East, and Africa — also included private equity and pension funds
backing those companies, and projects that were put on hold.
(Moneycontrol)
PSBs, RRBs to function
normally on a Sunday: Finance Ministry: The Government on Wednesday
said all Public Sector Banks and Regional Rural Banks will function normally on
September 27th (Sunday) so that genuine banking needs of the public are not
adversely affected for an extended period due to the proposed three-day nationwide
bank strike called by the UFBU from September 28 to 30, 2026. The proposed
strike, called by UFBU to press for implementation of its demand for 5-day
banking, by UFBU to demand
implementation of 5-day banking coincides with the preceding weekend holidays
of September 26 and 27 and the upcoming half-yearly closing for banks.The
Reserve Bank of India has granted approval for all bank branches, offices,
ATM-link branches and Currency Chests to remain fully operational on September
27th, the finance ministry said in a statement.
(Business Line)
MDR to help SBI recoup
costs, generate modest profits says senior official: State Bank of India (SBI)
expects the new merchant discount rate (MDR) framework for UPI transactions to
help it recover most of the costs associated with processing such payments and
also generate a modest surplus, a senior bank official said. “From the MDR
guidelines, we expect to recover most of it and also make some profits out of
it,” the official said. The development could provide
some relief to banks that have seen UPI transaction volumes surge even as the
zero-MDR regime limited their ability to recover the costs of processing
merchant payments.
(Financial Express)
Need stronger banks, deeper
capital markets to fund next growth phase: PK Mishra: India will need a deeper and
more diversified financial system to finance the next phase of growth, with
stronger banks complemented by deeper corporate bond markets, foreign direct
investment and infrastructure funds for its development ambitions, Principal
Secretary to the Prime Minister PK Mishra said on Wednesday. “The financial
system must now increasingly move from accommodating growth to enabling
growth,” Mishra said virtually, addressing the SBI Banking & Economics
Conclave in Mumbai. He said India will need to mobilise very large volumes of
capital for infrastructure, manufacturing, urbanisation, energy transition,
enterprise and innovation.
(Financial Express)
Irdai proposes ban on
insurance website ‘dark patterns’, seeks lower distribution costs: Irdai proposes prohibiting
dark patterns on insurance websites that require personal details to access
information. The reforms aim to improve transparency and make insurance
distribution more customer-centric. A new framework categorizing distribution
entities is also suggested to simplify the existing structure. Proposed changes
include reducing Expense of Management limits for life and general insurers to
lower costs.
(Economic Times)
JPMorgan to double GIFT
City business as $1 billion book expands: JPMorgan Chase & Co. plans
to expand its operations at Gujarat's GIFT City in the next few years. The bank
aims to double its business in areas like trade finance and payments. After
establishing its branch in 2022, JPMorgan currently serves a few hundred
clients with a book of nearly $1 billion. GIFT City is attracting multinational
companies exploring treasury and cross-border financial operations.
(Economic Times)
Airtel Cloud targets banks,
insurers with sovereign push: Bharti Airtel‘s cloud arm is stepping up its push
into the enterprise and government market, with the company in active
discussions with some of the country’s largest banks, insurers and public
sector institutions to migrate critical workloads onto its sovereign cloud
platform. “The potential pipeline is very active, and conversations are
underway with leading banks, insurers, digital-native companies and key
government and public sector institutions in India,” Pradipt Kapoor, chief
digital and information officer at Bharti Airtel and CEO of Xtelify, told FE.
(Financial Express)
Gautam Adani edges past
Mukesh Ambani to reclaim title of India’s richest: Hurun Rich List: Gautam Adani has overtaken Mukesh Ambani to
reclaim the position of India’s wealthiest individual, according to the M3M
Hurun India Rich List 2026. The list, now in its fifteenth year, tracks 1,810
Indians with a net worth of at least Rs 1,000 crore. Adani and his family are
worth Rs 9.23 lakh crore, or roughly $96 billion, as per the list. That marks a
13% rise in his fortune over the year. He takes the top spot from Ambani, who
held it last year. Ambani and his family now sit second, with wealth of Rs 8.63
lakh crore. That is a 10% decline from a year ago. The list now counts 1,810 individuals, up 128 from
last year and 803 more than five years ago. Their combined wealth stands at Rs
187.5 lakh crore, or about $1.96 trillion, a rise of 12.8% over the year. That
is close to half of India’s GDP, the report noted. India now has 391 dollar billionaires, a fresh
record and an addition of 27 over last year.
(Financial Express)
Govt sets riders for funds
to three stressed PSU general insurers: The Centre has finalised a turnaround strategy
for National Insurance Company (NICL), The Oriental Insurance Company (OICL)
and United India Insurance Company (UICL), with the quantum and timing of any
fresh equity support to be linked to improvements in their performance,
according to two officials aware of the matter. The three state-owned general
insurers are loss-making and have negative solvency ratios. The Reserve Bank of
India, in its June 2026 edition of the Financial Stability Report, described the
deterioration at the three insurers as a “direct financial stability concern”.
New India Assurance, the fourth state-owned general insurer and the country’s
largest, remains profitable. The strategy pushes for an overhaul of
underwriting, product innovation and performance-linked talent management. The
government wants the insurers to demonstrate sustained operational improvement
before committing further capital.
(Business Standard)
IRDAI issues consultation
paper on distribution reforms: The Insurance Regulatory and Development
Authority of India (IRDAI) on September 23 released a comprehensive two-part
public consultation paper titled "Recalibrating Economics of Insurance
Distribution", proposing a series of measures to address rising
distribution costs and improve value for policyholders. In the draft paper, the
regulator noted that despite past regulatory changes, the cost of doing
business for insurers remains persistently high. Commissions and payouts to
distributors have outpaced premium growth, leaving the Indian insurance market
with a high-cost, commission-led business model that, according to IRDAI, hurts
policyholder value and weighs on long-term persistency.
(Moneycontrol)
FSSAI proposes to implement
front-of-the-pack labelling regulations in one phase: The Food Safety and Standards Authority of
India (FSSAI) has proposed to implement the front-of-the-pack warning labels
(FoPL) framework with a single-phase approach, according to sources. Under the
proposed framework, once implemented, food companies will be required to
display front-of-the pack warning labels if their products breach the
prescribed threshold for any one nutrient of concern, which are added sugar,
fat and salt. It has also proposed to give a period of one year to packaged
food companies for voluntary implementation for transition to the
front-of-the-pack labelling framework post its notification.
(Business Line)
Fair case for rupee to
appreciate from current levels: RBI's Poonam Gupta: The rupee’s 13 per cent
depreciation in the last one year and a half can be seen as a temporary
phenomenon and there is a fair case for the Indian currency to not only
stabilise but also appreciate from current levels, Reserve Bank of India (RBI)
Deputy Governor Poonam Gupta said on Wednesday. She expects the current
account deficit (CAD) to shrink further, helped by stabilisation in oil prices
once the West Asia conflict resolves. Gupta also expects the capital account to
turn more favourable later this financial year.
(Business Standard)
RISK AVERSE
§
Risk
averse refers to investors who avoid more risk than necessary in their
investments. They prefer conservative, less aggressive investments that are
less likely to lose value. So they focus on preservation of capital and some
growth in value, even if it means they receive a lower return.
§ Risk-averse investors prefer liquidity and favor
municipal and corporate bonds, CDs, and savings accounts. Risk aversion is the
opposite of risk seeking. Generally, the return on a low-risk investment will
match, or slightly exceed, the level of inflation over time. A high-risk
investment may gain or lose a bundle of money.
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 : 95.7310
INR
/ 1 GBP : 127.4853
INR
/ 1 EUR : 109.3870
INR
/100 JPY: 60.7100
EQUITY INDEX
Sensex:
74828.25 (+299.17)
NIFTY:
23446.80 (+117.80)
Bnk NIFTY: 56548.90 (+333.35)
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