Issue: 1175
· Inflation targeting range to
be unchanged for 5-year period starting April 1.
· UK plans ban on
cryptocurrency donations to political parties.
· Government extended RBI’s 4%
retail inflation target framework till March 2031.
· RBI rejected all Treasury
Bill bids as investors demanded higher yields.
· Indian Bank and NaBFID to
raise ?80 billion through bonds for infrastructure financing.
· Kotak Mahindra Bank nearing
acquisition of Deutsche Bank’s India retail portfolio worth about ?4,500 crore.
· Lok Sabha passed Finance Bill
2026 with 32 amendments.
· Experts suggested bringing
household gold holdings into the financial system to reduce imports and improve
financialisation.
Govt retains inflation
target at 4% with 2–6% band for next five years: The central government has
retained India’s retail inflation target at 4%, with a tolerance band of 2% to
6%, for the next five years, according to an official notification issued on
Wednesday. The revised mandate will remain in force for the period from April
1, 2026 to March 31, 2031, continuing the inflation-targeting framework
followed since 2016. In the notification issued
under Section 45ZA of the Reserve Bank of India Act, 1934, the government, in consultation
with the RBI, confirmed that the inflation target will remain at 4%, with an
upper tolerance limit of 6% and a lower limit of 2%. The decision effectively
keeps the existing framework unchanged, giving the central bank continuity in
monetary policy. The Centre has adopted formal inflation targeting in 2016,
assigning the RBI the responsibility of maintaining consumer price inflation
within the band set by the government.
(Business Today)
Rupee closes at record low
of 94.05 against US dollar: The rupee slumped 29 paise to
close at record low of 94.05 (provisional) against the US dollar on Wednesday
as heavy FII outflows and simmering tensions in West Asia kept investors on the
edge. Even a drop in global crude oil prices, weaker greenback, and positive
sentiments in the domestic equity markets could not provide any respite to the
local unit, forex traders said..
(Business Line)
India ups climate pledge:
47% emissions intensity cut, 60% clean power by 2035: Sharpening its climate
commitments amid rising global pressure and evolving energy transition
dynamics, the Union Cabinet on Wednesday approved India’s updated Nationally
Determined Contribution (NDC), setting a target to cut emissions intensity by
47% by 2035 from 2005 levels and increase the share of non-fossil fuel-based
power capacity to 60%. Announcing the decision, Union minister for information
and broadcasting Ashwini Vaishnaw said India has already reduced emissions
intensity by 36% between 2005 and 2020, and is now stepping up ambition under
the Paris Agreement. The updated NDC for 2031–2035, approved under the
chairmanship of Prime Minister Narendra Modi, marks “a significant step towards
strengthening India’s action… while reinforcing its commitment to sustainable
development and climate justice,” the government said.
(Financial Express)
Emirates NBD gets UAE
central bank nod for majority stake in RBL Bank: Emirates NBD Bank has received
a letter of approval from the Central Bank of United Arab Emirates for its
proposed acquisition of majority stake in India’s RBL Bank, a stock exchange
filing said on March 25. The approval also covers the planned amalgamation of
the bank’s existing India operations with RBL Bank, the statement said. The
development marks a key step forward in the deal first disclosed in October
2025.
(Moneycontrol)
Haryana Govt finds ?150
crore discrepancy in FDs placed by Panchkula Municipal Corp at Kotak Mahindra
Bank: The
Haryana Government has come across yet another fraud relating to fixed deposits
at a Bank. This time the Government reportedly found discrepancy in the FDs
aggregating about ?150 crore placed by the Panchkula Municipal Corporation and
the records at Kotak Mahindra Bank. The Tribune, in a report
quoting sources, said the Panchkula MC had deposited the amount at the Kotak
Mahindra Bank branch in Sector 11, Panchkula. “Recently, when officials
approached the bank about the maturity of a FD worth ?58 crore, they were told
it did not exist. Upon checking all accounts, it was found that the
discrepancies exceeded over ?150 crore,” per the report.
(Business Line)
Bank employees, officers
demand immediate resolution of PLI impasse: The United Forum of Bank
Unions (UFBU), an umbrella organisation of nine unions, on Wednesday demanded
the immediate reversal of the unilateral implementation of the revised
performance-linked incentive (PLI) formula. The revised PLI formula sought to
be imposed by the Department of Financial Services (DFS) is viewed by the
workforce as an unilateral and divisive departure from the existing
settlement-based PLI scheme evolved through bilateral discussions and
incorporated in the bipartite settlement/joint note framework, UFBU said in a
statement.
(Economic Times)
RBI nod to
acquisition of Sammaan Capital by Avenir Investment RSC: The Reserve Bank has approved the
proposed acquisition of a controlling stake in Sammaan Capital Ltd by an
affiliate of Abu Dhabi-based International Holding Company. The acquisition by
Avenir Investment RSC Ltd also includes the indirect change in control of the
wholly-owned subsidiary, Sammaan Finserve Ltd. As part of the transaction,
Avenir Investment will infuse Rs 8,850 crore through a preferential equity
issue, for an initial stake of 41.23 per cent, which could increase to 63.36
per cent upon completion of the open offer, Sammaan Capital said in a
regulatory filing.
(Economic Times)
Dream11 parent to enter stockbroking with Dream Street: Dream Sports, the parent company of sports
entertainment platform Dream11, is set to enter India’s competitive stock
broking industry with Dream Street, as it looks to tap into the country’s
rapidly expanding retail investor base. Dream Street aims to target consumers in tier-2 and
tier-3 cities with personalised AI-powered investing tools.
(Moneycontrol)
Sunil Bharti Mittal to step
down as Airtel Africa chairman in July, Gopal Vittal to take charge: Airtel Africa on Wednesday announced that
Sunil Bharti Mittal will retire as the chairman of the board at the conclusion
of the company’s Annual General Meeting (AGM) scheduled for July 2026, marking
a key leadership transition at the telecom and mobile money services provider
operating across 14 African countries. The company said Gopal Vittal will take over as
Non-Executive Chairman from the same date, while Shravin Bharti Mittal will
assume the role of Deputy Chair, ensuring continuity of leadership from the
founding family, which remains a significant shareholder in Airtel Africa.
(Business Today)
Infosys to acquire Optimum
Healthcare IT for $465 million: Infosys has announced a definitive agreement
to acquire Optimum Healthcare IT, a healthcare digital transformation and
consulting firm, for $465 million, including upfront and earn-out payments,
excluding management incentives and retention bonuses. Founded in 2012,
headquartered in Florida, US, Optimum Healthcare IT specialises in
technology-driven consulting, implementation, and managed services for
hospitals, health systems, and payers.
(Business Line)
Cabinet clears 'Modified
UDAN' scheme with Rs 28,840 crore outlay, 100 new airports planned: The Union Cabinet on Wednesday approved the
modified UDAN 2.0 scheme with an outlay of Rs 28,840 crore, aimed at
strengthening regional air connectivity and expanding aviation infrastructure
across the nation. The new scheme will be in operation for the next ten years. Under
the revamped scheme, 100 new airports will be developed in challenge mode, with
an average cost of Rs 100 crore per airport and budgetary support of Rs 12,159
crore. "The UDAN scheme will run for 10 years, and existing airstrips will
be converted into airports to expand regional connectivity," said Union
Cabinet Minister Ashwini Vaishnaw addressing the press. In addition, the scheme
includes the acquisition of Made-in-India aircraft with a budgetary support of
Rs 400 crore, in line with the government’s push to boost domestic
manufacturing.
(Moneycontrol)
Finance Bill amendments
propose flat 12% surcharge on capital gains from buybacks: The Lok Sabha on Wednesday
passed the Finance Bill, 2026, with 32 amendments including a 12% surcharge on
capital gains from buybacks for individual and corporate shareholders that
could make buybacks more expensive. The amendments to the Finance Bill will now
be passed by the Rajya Sabha. The flat 12% surcharge is expected to
substantially increase the tax outgo for taxpayers as at present there is
either nil surcharge on taxable income up to Rs 50 lakh and a 10% surcharge on
taxable income between Rs 50 lakh and Rs 1 crore.
(Business Today)
RBI rejects all treasury
bill bids for the second time in 13 months as tight liquidity pushes yields
higher: The
Reserve Bank of India rejected all bids for treasury bills offered at auction,
as investors demanded yields that were 0.05-0.10 percentage points higher than
those seen in previous auctions amid tight liquidity conditions in the banking
system. This is the second time in over
13 months that the RBI has rejected bids. The last time it had rejected bids
for 91-day and 182-day treasury bills during an auction on February 21, 2025.
(Financial Express)
CREDIT DEFAULT SWAP
·
Credit
default swaps (CDS) are a type of insurance against default risk by a
particular company. The company is called the reference entity and the default
is called credit event. It is a contract between two parties, called protection
buyer and protection seller. Under the contract, the protection buyer is
compensated for any loss emanating from a credit event in a reference
instrument. In return, the protection buyer makes periodic payments to the
protection seller.
·
In the
event of a default, the buyer receives the face value of the bond or loan from
the protection seller. From the seller’s perspective, CDS provides a source of
easy money if there is no credit event. CDS was introduced by JP Morgan.
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 : 93.9657
INR
/ 1 GBP : 125.7631
INR
/ 1 EUR : 108.9488
INR
/100 JPY: 59.1000
EQUITY INDEX
Sensex:
75273.45 (+1205.00)
NIFTY:
23306.45 (+394.05)
Bnk NIFTY: 53708.10 (+1102.45)
Independence Day
of Bangladesh: This national
holiday commemorates the country's declaration of independence from Pakistan in
the early hours of March 26, 1971. It is a day marked by ceremonies, parades,
and honoring the sacrifices of the Liberation War.
Historical
events: March 26 holds
significant milestones in both Indian and world history, marking moments of
political, environmental, and diplomatic importance. In India, this day is
remembered for the start of the iconic Chipko Movement in 1973 in Uttarakhand,
where locals hugged trees to prevent deforestation, as well as the 1931
decision making New Delhi the official capital of British India. Furthermore,
Guru Amar Das became the third Sikh Guru in 1552, and in 1907, the renowned
Hindi poet Mahadevi Varma was born.
****Have a nice Day****
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