Issue: 1226
· Finance Ministry directs PSU
banks and insurance firms to reduce operational expenses and shift gradually to
EV fleets.
· Indian lenders urge RBI to
introduce a hedging support framework to revive overseas borrowing activity.
· Bond market sentiment
improves after RBI announces liquidity-supportive forex swap measures.
· Economists say India’s forex
reserves remain adequate despite persistent RBI dollar sales.
· Midcaps post sharpest profit
jump in five quarters; smallcaps feel the squeeze
PMO tells Ministries to
find ways to save fuel, forex amid West Asia crisis: Amid concerns within the
government over a widening current account deficit (CAD) and rising pressure on
India’s oil import bill due to the West Asia crisis, the Prime Minister’s
Office (PMO) has asked four key Ministries to urgently draw up measures to cut
dependence on imported fuel and conserve foreign exchange, sources told
businessline. Among the proposals under discussion is a reduction in GST on
flex-fuel vehicles, currently taxed at 18-40 per cent depending on the segment,
closer to the 5 per cent rate applicable to electric vehicles, a long-pending
demand of the auto industry.
(Business Line)
US has emerged as strong
energy partner; India will continue to buy from multiple sources: Jaishankar: In a strong signal that India
will maintain its energy sovereignty, External Affairs Minister S Jaishankar
noted that while the US, along with some other nations, has emerged as a
significant and reliable energy partner, India will continue to source energy
from multiple suppliers to navigate current vulnerabilities in the Strait of
Hormuz and secure its future needs. Speaking at a joint media briefing during
their bilateral meeting on Sunday, US Secretary of State Marco Rubio stated
that the US and India are likely to conclude a bilateral trade agreement that
will be enduring and mutually beneficial and the US Trade Representative is
expected to visit India soon to advance the negotiations.
(Business Line)
India seeks advantage over
rivals as US trade pact nears finalisation: Indian trade officials will
seek comparative advantage over other countries during negotiations to advance
a trade deal with Washington this week. A team, led by chief negotiator Darpan
Jain, reached the US on Monday for a three-day trip to conclude the first phase
of a trade pact agreed in February. The two nations reached an agreement before
the US Supreme Court struck down President Donald Trump’s sweeping reciprocal
tariffs. His administration imposed a new 10 per cent tariff from Feb. 24 for
all nations. As part of the deal, US tariffs on Indian goods were to be cut to
18 per cent from 50 per cent , with New Delhi pledging to buy $500 billion of
American goods over five years. The Supreme Court’s decision, however, has
prompted countries including India to review the deal, as the agreed rates were
based on reciprocal tariffs.
(Business Standard)
Hiring more AI people and
fewer bankers’: JPMorgan’s Jamie Dimon indicates massive banking shake-up: Artificial intelligence is no
longer just a support tool for banks. It is starting to reshape the kind of
people banks hire and the jobs they keep. JPMorgan Chase chief executive Jamie
Dimon has now openly acknowledged that AI will eventually reduce headcount at
the bank as automation spreads across the financial sector. Speaking at
JPMorgan’s China Summit in Shanghai, Dimon said the bank would increasingly hire
AI specialists while reducing hiring in some traditional banking roles. “There
will be all different types of jobs, and I think we will be hiring more AI
people and fewer bankers in certain categories, and it will make them more
productive,” he said. Dimon also added, “I think it will reduce our jobs down
the road.”
(Financial Express)
LIC emerges as highest
profit-making financial company in March quarter: Life Insurance Corporation of
India has achieved the highest profit in the Indian financial sector for the
March quarter. The company reported a significant jump in net profit. State
Bank of India and HDFC Bank followed with substantial profits. LIC's assets
under management and premium income also saw growth. Vodafone Idea recorded a
record quarterly profit due to statutory relief. LIC has emerged as the highest
profit-making firm in the Indian financial sector in the March quarter, netting
a little over Rs 23,400 crore.
(Economic Times)
Sebi reviews PMS framework;
starts consultations on MF gifting, donations: SEBI whole-time member
Amarjeet Singh on Saturday said the regulator is undertaking a comprehensive
review of the Portfolio Management Services (PMS) framework in consultation
with industry body Association of Portfolio Managers in India (APMI) to
"re-ignite growth" in the segment. Addressing the Wealth and Capital
Market Summit organised by the Indian Chamber of Commerce, Singh said SEBI
would soon float a consultation paper on the proposed reforms. "We are
undertaking a comprehensive review of PMS and are engaged with APMI for
consultations to re-ignite growth in this space. A consultation paper will be
floated soon," Singh said.
(Business Standard)
ICICI Bank seeks at least Rs.100
crore recovery from fintech firms: Private-sector lender ICICI
Bank has sought recoveries of at least Rs.100 crore from fintech firms over the
alleged merchant misclassification of their business, according to multiple
sources. This is being done through disputes lodged with global card network
Visa. The action is one of the first in the industry, marking a growing
discomfort among banks over alleged merchant category misclassification by
fintech companies, eroding their interchange income over the past one year.
(Business Standard)
ATM interchange fee may be
indexed to WPI; NPCI likely to take up matter: The stage is set for linking
the ATM interchange fee to the wholesale price index (WPI), even as a fresh
hike to Rs.21-22 from the current Rs.19 is being considered. A relook at the
customer charge levied after the free transaction limit is exhausted may also
be in the works. The interchange fee is what one bank pays another when its
debit card is used at the latter’s ATM. The installed ATM base in the country
stands at around 265,000.
(Business Standard)
Four-month window for
states to apply for 50 industrial parks: The central government will support the
establishment of 50 industrial parks across states in the first phase of the Rs
33,660-crore BHAVYA (Bharat Audyogik Vikas Yojna) scheme, guidelines for which
were made public on Saturday. To get central support for the proposed
industrial parks, the states and Union territories will have to compete among
themselves by presenting high quality viable proposals which would then be
judged based on an objective criteria. In the first round of applications, 20
parks will be approved and the time period available for submitting
applications will be two months. The second window will open after the first
batch of applications have been received. In the next round, applications for
30 more parks would be accepted.
(Financial Express)
IRFC to raise ECB loan
worth $2 billion to finance large infra projects: State-owned Indian Railway Finance Corporation
is planning to mobilise USD 2 billion through external commercial borrowing,
primarily in Japanese yen, to fund business growth in the current financial
year. The external commercial borrowing (ECB) is part of
the Rs 70,000 crore resource mobilisation plan approved by the board of Indian
Railway Finance Corporation (IRFC) for the ongoing financial year.
(Economic Times)
Singapore, US, UK lead in
foreign cos entering India: Foreign companies are increasingly setting up
shop in India. Singapore, the US, the UK, South Korea, and Germany are leading
this trend. Registrations reached a nine-year peak in the last fiscal year.
This surge highlights growing international business interest in the Indian
market. New companies from South Africa, Ghana, and Uzbekistan also entered
India for the first time.
(Economic Times)
DPIIT Releases Guidelines
for Implementation of BHAVYA Scheme: The Department for Promotion
of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry,
Government of India, has released the detailed operational guidelines for the
implementation of the BHAVYA Scheme, a landmark Central Sector Scheme aimed at
developing investment-ready, world-class industrial parks across the country. BHAVYA
has been designed to strengthen India’s manufacturing ecosystem through
development of integrated industrial infrastructure aligned with the objectives
of Make in India, PM Gati Shakti, and the Government’s broader vision of
positioning India as a globally competitive manufacturing destination. The
Scheme provides for development of 100 industrial parks over a period of six
years from 2026-27 to 2031-32, with a total financial outlay of approximately Rs.33,660
crore. In the first phase, up to 50 industrial parks will be taken up through a
challenge-based competitive selection process.
(PiB)
ICAI to set up
advanced forensic lab for small, medium practitioners: Chartered accountants' institute ICAI
will be setting up an advanced forensic auditing lab in Hyderabad to help small
and medium practitioners, its President Prasanna Kumar D has said. The
Institute of Chartered Accountants of India (ICAI) has more than five lakh
members, including small and medium practitioners. In a recent interview to
PTI, Kumar said that forensic audit is a new area, and small and medium
chartered accountant firms are not able to participate in large auditing works
as they do not have the forensic audit capabilities.
(Business Standard)
ANNUAL REVENUE RUN RATE (ARR)
·
Annual
revenue run rate is a financial metric that estimates a company's future
revenue by projecting current revenue over a year. It's also known as sales run
rate or data annualization.
·
To
calculate the ARR; Divide the total revenue for a given period by the number of
days in that period and then multiply the result by 365.
·
It
helps companies forecast future revenue and plan budgets.
·
It
helps companies compare their performance to others in their industry.
·
It's
useful for companies that are growing rapidly, young, or trying to raise funds.
·
However,
some factors that can affect annual revenue run rate, such as; Month-to-month
sales can be volatile, which can affect the annual revenue run rate.
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 : 95.9588
INR
/ 1 GBP : 128.7901
INR
/ 1 EUR : 111.3903
INR
/100 JPY: 60.3100
EQUITY INDEX
Sensex:
75415.35 (+231.99)
NIFTY:
23719.30 (+64.60)
Bnk NIFTY: 54055.35 (+615.95)
frica Day: May 25 is
celebrated globally as Africa Day commemorating the founding of the
Organisation of African Unity, and World Thyroid Day dedicated to thyroid
health awareness. Additionally, it is observed as International Missing
Children's Day.
Historical events: May 25 is a
landmark date in history, highlighted by Mahatma Gandhi establishing the
Sabarmati Ashram in Ahmedabad (1915), the tragic assassination of 28 Congress
politicians in a Chhattisgarh Maoist attack (2013), and the declaration of
Jordan's independence from Britain (1946). Globally, it marks the 1961 U.S.
lunar mission announcement, the premiere of the first Star Wars film (1977),
and the 2020 murder of George Floyd, which sparked global Black Lives Matter
protests.
****Have a nice Day****
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