Issue: 1306
·
India’s US LPG imports surge to 73% as Gulf disruption raises
energy costs.
·
Vodafone Idea shares rally 8% on SBI loan progress, tariff
hopes.
·
RBI proposal to curb NBFCs' revolving credit may choke MSME
funding, says industry body FISME.
·
NRI deposit inflows fall 22% to $2.8 b in Q1 FY27.
·
India adds 1.26 million credit cards in July as spending
rises; HDFC, SBI lead the way.
·
RRBs post all-time high net profit of Rs 10,176 crore in
FY25-26; total business crosses Rs 13.5 lakh crore.
Overseas investments by
Indians push remittances up 20% y-o-y in June: Indians’ overseas investment appetite surged in
June, with remittances into foreign equity and debt more than doubling
year-on-year to hit a record high $0.46 billion. Travel remained the dominant
reason for sending money abroad and grew 11 per cent YoY. As per the RBI
bulletin released on Tuesday, the total outward remittances under Liberalised
Remittance Scheme (LRS) rose by about 20 per cent year-on-year (y-o-y) to $2.5
billion in June. This was up 6 per cent month-on-month from May. The overall
growth was driven by sharp increases in remittances towards ‘deposits’ and
towards ‘investment in equity and debt,’ which grew at 75 per cent and 119 per
cent YoY in June, respectively.
(Business Line)
Services exports help
current account balance in Q1 FY27: India’s current account
deficit (CAD) remained contained at $3.1 billion in the first quarter of FY27,
only marginally wider than the $2.9 billion recorded a year earlier, despite a
sharp expansion in the merchandise trade gap, caused by sustained high global
crude petroleum prices due to the effective closure of the Strait of Hormuz,
following the West Asia crisis. Analysis of the latest balance of payments data
from RBI shows that the goods deficit widened to $85.7 billion in Q1 of FY27
from $68.9 billion in Q1 of FY26. On the capital side, the account swung from a
$7.4 billion net inflow in Q1 of FY26 to a $5 billion outflow in Q1 of FY27,
led by a sharp reversal in foreign portfolio investment (FPI).
(Business Line)
Outward remittances under
LRS surge 20% to $2.5 billion in June: RBI data: Outward remittances under the
Liberalised Remittance Scheme (LRS) for resident individuals surged 19.9 per
cent year-on-year (Y-o-Y) in in the April-June period of FY27 to $2.5 billion,
owing to a rise in international travel and overseas investments, according to
the RBI dataDuring the month, deposit-related remittances rose 67.95 per cent
Y-o-Y to $70.74 million. Similarly, remittances for the purchase of equity and
debt investments more than doubled to $456.7 million. Remittances for the
purchase of immovable property also rose 31.5 per cent Y-o-Y to $49.66 million.
The largest component — travel —rose 10.7 per cent Y-o-Y to $1.37 billion
compared with last year.
(Business Standard)
SBI eyes $10 billion from
NRIs, foreign investors ahead of RBI swap window closure: As RBI's concessional swap
window draws to a close this month end, State Bank of India (SBI) Chairman C S
Setty has expressed confidence that the bank would garner about $10 billion
from non-resident Indians and foreign investors. "In aggregate, we must be
reaching the $10 billion mark, predominantly coming from the deposit side. But
there is visibility of ECBs. ECB, of course, will have a longer period
available to us, but by August 31, we should have mobilised around $9-10
billion on a consolidated basis," he told PTI in an interview.
(Business Line)
Public sector banks more
efficient than private sector banks, says EAC-PM paper: Contrary to popular
perception, a working paper by the Economic Advisory Council to the Prime
Minister (EAC-PM) has said that efficiency of public sector banks (PSBs) is
much better than private banks and foreign banks. The paper, authored by Soumya
Kanti Ghosh (Part-time member, EAC-PM and Group Chief Economic Advisor at State
Bank of India) and Tapas Kumar Parida (Economist at State Bank of India)
studied 47 banks for the period FY15 to FY26 and employed Data Envelopment
Analysis (DEA) to calculate efficiency and productivity of the banks. It
studied 12 public sector banks, 21 private sector banks and 14 foreign banks.
These banks cover more than 95 per cent of the assets of the banking system. Efficiency
has been measured between 0 and 1, and the range is expressed in percentage
terms
(Business Line)
Federal, Jana SFB merger
buzz grows: Speculation
over a merger between Federal Bank and Jana Small Finance Bank (Jana SFB)
intensified on Tuesday after a television channel reported that the
Kerala-based lender was in advanced talks to acquire a controlling stake in the
small finance bank. CNBC-TV18, citing sources, reported that Jana SFB’s
promoter, Jana Holdings, is likely to sell its entire 16.9% stake to Federal
Bank, a transaction that would trigger an open offer. Shares of Federal Bank
fell 3% on the BSE on Tuesday, while Jana SFB slipped 2%. Since regulations bar
one bank from owning another, investment bankers said any acquisition of a
controlling stake would eventually have to culminate in a merger.
(Financial Express)
Carlisle Investors to
approach PMO over alleged HDFC Bank mis-selling: A group of investors who bought Carlisle's
life settlement product through HDFC Bank's Dubai operations are set to write
to the Prime Minister's Office (PMO) this week, alleging mis-selling,
substantial losses and years long denial of redemption. Investors are planning to
write to the Prime Minister's Office this week. They allege mis-selling and
substantial losses from a Carlisle product. The group also intends to approach
the Reserve Bank of India. They are exploring legal action against HDFC Bank
for alleged client-suitability lapses.
(Economic Times)
EAC moots consolidation to
create a few large banks: India needs to consolidate banks into a few
large ones of comparable size, without harming competition, to meet rising
credit needs to achieve Viksit Bharat by 2047, suggested a paper by the
Economic Advisory Council to the prime minister (EAC-PM). Banks will increasingly
focus on data-driven customer experiences and AI automation. The banking sector
has seen significant positive changes since 2014. Future agendas include
mobilizing stable deposits and deepening productive lending.
(Economic Times)
US targets four Indian
firms in ‘Operation Economic Outcast’ against Iran: The US has sanctioned four India-based companies
for their alleged involvement in importing Iranian petroleum and petrochemical
products, as Washington expands its economic pressure on Tehran under a new
campaign – Operation Economic Outcast – aimed at choking Iran’s finances. The four Indian companies
named by the US State Department are Portease Partners LLP, Sadashiva Overseas
Ltd, PP Softtech Pvt Ltd and Prakrutees Infra Impex India Pvt Ltd. Operation Economic
Outcast’ is an “economic onslaught against Iran’s financial connections around
the globe”,
(Business Line)
Govt to ease BIS rules for
high-tech manufacturers: Goyal: The government will create a framework of
exemptions from compliance with standards mandated by the Bureau of Indian
Standards (BIS) for high-tech companies looking to set up manufacturing bases
in India, Commerce and Industry Minister Piyush Goyal said on Tuesday. “We have
already instructed BIS and the Ministry of Commerce and Industry to work on a
framework to support high-tech industry, not necessarily only Japanese
companies coming in to promote the Make in India programme,” the minister said
at a roundtable on semiconductors and artificial intelligence in Tokyo. The
framework for exemptions from BIS certification will cover equipment and
components that companies need to bring to India to support their manufacturing
operations.
(Financial Express)
Japanese financial
institutions seek greater access to India markets: Japanese financial institutions have sought
simplification of processes for profit repatriation, improving access to Indian
capital markets and ensuring greater regulatory predictability for long-term
investors in their meetings with Commerce and Industry Minister Piyush Goyal on
Tuesday. In Tokyo the talks between the minister and Japanese financial and
investment institutions focussed on strengthening long-term capital flows,
deepening investment partnerships and expanding Japanese participation in
India’s growth story. The discussions assume significance in the context of the
India-Japan objective of mobilising 10 trillion yen ($ 68 billion) of Japanese
private investment into India over the next decade.
(Financial Express)
Regional rural banks told
to speed up tech adoption: The finance ministry has asked regional rural
banks, or RRBs, to accelerate the adoption of modern banking technology and the
digital delivery of financial services to improve operational efficiency and
customer experience. Net profit of RRBs increased to an all-time high of
Rs.10,176 crore in FY26, as compared to a consolidated net profit of Rs.6,820
crore in FY25. In a statement, the finance ministry noted that
after a review meeting of RRBs, financial services secretary Sanjay Lohia urged
sponsor banks to handhold RRBs in their growth journey, particularly in strengthening
IT infrastructure.
(Economic Times)
PSBs turn 'Banking for
Youth' into an entry-level hiring pipeline: Public-sector banks (PSBs) are preparing to
use the Ministry of Youth Affairs and Sports’ ‘Mera Yuva Bharat’ (MY Bharat)
portal to offer internships and training to young people and build a pipeline
for entry-level recruitment, days after Finance Minister Nirmala Sitharaman
asked them to become more youth-friendly to attract the next generation of
customers. Under the month-long ‘Banking for Youth’ initiative
from October 2, PSBs plan to accelerate acquisition of young customers and
expand outreach through financial literacy and digital banking programmes,
while also offering internship opportunities and entry-level jobs to youth.The
banks plan to train young people registered on the MY Bharat portal through
internships under the Prime Minister Internship Scheme. The trained candidates
could subsequently be considered for entry-level positions at PSBs, a
government official said.
(Business Standard)
EQUATION OF
EXCHANGE
·
The equation of exchange is an economic identity
that shows the relationship between the money supply, the velocity of money,
the price level, and an index of expenditures.
·
It says that the total amount of money that changes
hands in the economy will always equal the total money value of the goods and
services that change hands in the economy.
·
In its basic form, the equation says that the total
amount of money that changes hands in an economy equals the total money value
of goods that change hands, or that nominal spending equals nominal income.
·
The equation of exchange has been used to argue that
inflation will be proportional to changes in the money supply and that total
demand for money can be broken down into demand for use in transactions and
demand to hold money for its liquidity.
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 : 95.7143
INR
/ 1 GBP : 130.4155
INR
/ 1 EUR : 111.5748
INR
/100 JPY: 60.0700
EQUITY INDEX
Sensex:
77656.09 (+286.98)
NIFTY:
24334.55 (+115.50)
Bnk NIFTY: 57514.20 (-11.75)
Women's Equality
Day 2026: Women's Equality Day 2026 is celebrated on
Wednesday, August 26, 2026, marking the anniversary of the 1920 adoption of the
19th Amendment which secured women's right to vote in the United States.
Historic events: August 26 holds
a significant place in history, marked by major milestones such as the birth of
Nobel laureate Mother Teresa in 1910, Delhi Sultan Alauddin Khilji's capture of
Chittorgarh in 1303, and the adoption of the Declaration of the Rights of Man
and of the Citizen during the French Revolution in 1789.
****WISHING A NCE DAY****
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