Issue: 1255
· Indian Embassy in Iceland and
APEDA Organise First-Ever Indian Mango Promotion Events in Iceland.
· PNB to focus on Retail,
Agriculture, MSME advances, CASA deposits to boost profitability: MD Ashok
Chandra.
· India's active credit cards
cross 120 million in May.
· Legal review reveals
ex-chairman's charges 'not substantiated': HDFC Bank.
· SBI Card leads May credit
card additions as industry adds nearly 1 mn cards.
· Goldman Sachs lifts FY27
India growth forecast to 6.5% as oil price easing.
Trump threatens 100% tariff
on countries imposing digital services tax on US firms: US President Donald Trump on
Friday threatened to impose a 100% tariff on imports from any country that
introduces a digital services tax targeting American companies, escalating
trade tensions with several European nations considering such measures. "Numerous
European countries have been discussing the imminent implementation of a
Digital Services Tax on American companies. Some of these countries are close
to actually doing this," Trump wrote.
(Moneycontrol)
Piyush Goyal urges exporters
to aim beyond 5–10% growth, push for bigger global share: Commerce and Industry Minister
Piyush Goyal has urged Indian exporters to raise their ambitions, cautioning
businesses against treating modest export growth as a measure of success at a
time when India is seeking a larger role in global trade. Speaking
at a Business Plenary Session in London on June 26, the minister said India’s
export strategy must focus on transformational growth rather than incremental
gains, particularly as the country expands its network of free trade agreements
and targets new international markets.
(Financial Express)
India's forex reserves
increase by $963 mn on back of rise in gold reserves: India’s foreign exchange
reserves increased by $963 million to $672.59 billion during the week ended
June 19 on the back of a rise in gold reserves, latest Reserve Bank of India
(RBI) data showed. Gold reserves rose $4.11 billion during the reported week.
Foreign currency assets fell by $3.07 billion during the same period. The Special Drawing Rights were down $52
million at $18.65 billion during the reported week. India’s reserve position
with the International Monetary Fund was also down by $22 million to $4.79
billion.
(Business Standard)
Business cycle funds
outperform benchmarks amid market volatility: The thematic funds focused on
the business cycle of mutual funds have come in handy during the current
volatile times, delivering benchmark-beating returns. In the last year,
business cycle funds have delivered an average return of 3.15 per cent,
compared with Nifty-500’s 0.85 per cent. Similarly, over two years, this
‘category’s average return was 3.29 per cent, against 2.42 per cent for the
benchmark index.
(Business Line)
HDFC Bank gets clean chit
from legal review: HDFC Bank on Friday said an
external legal review by two law firms - Wilson Sonsini Goodrich & Rosati
and Wadia Ghandy & Co - into concerns raised by former chairman Atanu
Chakraborty’s resignation letter found “no contemporaneous support” for his
allegations in board or committee records, meeting materials or related
communications. It paves the way for the process to decide on whether to
propose extension of the tenure of the bank’s MD & CEO Sashidhar Jagdishan
whose second term ends in October. Jagdishan has indicated in earlier media
interviews that he has made himself available for another term if approved by
the board.
(Financial Express)
Smaller banks tap Indian
lenders’ GIFT City branches for FCNR(B) leverage: Smaller and mid-sized banks
are approaching the GIFT City branches of Indian lenders to access the
leverage-backed FCNR(B) deposit mobilisation opportunity opened up by the
Reserve Bank of India (RBI), as they lack the overseas presence and operational
capabilities needed to directly navigate stringent foreign compliance
requirements, bankers said. “Since we do not have foreign branches, we would
have to connect with foreign branches of Indian banks or with foreign banks for
leverage,” said a treasury official at a small finance bank, adding that they
are reaching out to banks with whom they already have an existing
relationships.
(Financial Express)
Banks' credit steady at
17.7%, deposits ease to 12%: RBI: Banks' credit grew 17.7% at
the end of the fortnight to June 15, unchanged from the print seen in the
preceding two-week period, while deposits growth print slowed to 12% as
compared with 12.2% for the same period, Reserve Bank of India data showed. The
current growth rates for both credit and deposits are faster as compared to the
prints seen a year back. At the same time last year,
credit growth was recorded at 9.6% while deposits grew at 10.4% clip.
(Economic Times)
10 more jurisdictions come
under RBI's State Development Loans framework: The Reserve Bank of India
(RBI) on Friday extended its pilot Benchmark Issuance Strategy (BIS) for state
government securities to 10 more jurisdictions, including nine states and the
Union Territory of Delhi, while indicating that states and UTs are expected to
raise Rs.3.19 trillion through market borrowings during the July-September
quarter of the current financial year, lower than market expectations of Rs.3.4
trillion-Rs 3.5 trillion. The BIS framework, introduced
on a pilot basis in the first quarter of FY27 with nine states, involves
issuing state development loans (SDLs) in pre-announced benchmark maturity
buckets to improve transparency and provide greater clarity to investors. From
the second quarter, the framework will also cover Delhi, Himachal Pradesh,
Jharkhand, Manipur, Meghalaya, Odisha, Punjab, Sikkim, Uttarakhand and West
Bengal, taking the total number of participating jurisdictions to 19.
(Business Standard)
Uber's Prabhjeet Singh to
join OpenAI as India MD: OpenAI has appointed former Uber India & South
Asia President Prabhjeet Singh as its Managing Director for India,
strengthening its leadership team as the artificial intelligence company
expands its presence in one of its top priority markets. Singh will join OpenAI in
September and report to Kiran Mani, Managing Director for Asia Pacific, the
company said on June 26. As OpenAI's most senior executive in India, Singh will
oversee the company's performance across consumer growth, enterprise adoption,
strategic partnerships, regulatory engagement and operations.
(Moneycontrol)
SEBI rejects Reliance
Infra, Anil Ambani plea to settle Rs.6,526-cr case: The Securities and Exchange Board of India
(SEBI) has rejected settlement applications filed by Reliance Infrastructure and
Anil Ambani in a case relating to the company’s exposure of Rs.6,526 crore to
engineering contractor CLE Pvt Ltd, according to people aware of the
development. The settlement applications were rejected last Friday, with SEBI
citing parallel investigations by other enforcement agencies into the matter,
the people said. The rejection means the matter will now proceed through the
normal enforcement process, with hearings expected before the markets’
regulator passes a final order.
(Business Line)
Adani Airports
to invest Rs 20,000 crore in airport cities: Adani Airport Holdings (AAHL) will invest
more than Rs 20,000 crore in the first phase of developing airport cities
across six airports as it looks to turn its aviation assets into integrated
commercial and urban hubs, diversifying revenues beyond the core airport
business. The development programme, spread over 655 acres in Mumbai, Navi
Mumbai, Ahmedabad, Lucknow, Jaipur and Guwahati, will be executed through its
wholly-owned subsidiary Adani Airport City (AACL).
(Financial Express)
RBI proposes to allow NBFCs
in money market in liquidity push: The Reserve Bank of India
(RBI) on Thursday proposed expanding the term money market to include non-bank
entities such as NBFCs and corporates, in a move aimed at improving liquidity. Under
the proposed guidelines, the RBI has allowed all Indian financial institutions
and non-banking financing companies, including housing finance companies, to
participate in the term money market both as borrowers and lenders. Meanwhile,
the RBI has allowed companies to participate in the term money market just as
lenders. These participants are not allowed in the call and notice money
market. Stakeholders can submit their feedback by July 17, the RBI said. Currently,
banks and standalone primary dealers can only participate in the term money
market, with certain prudential limits. In the term money market, participants
can borrow for periods longer than 14 days, up to one year.
(Financial Express)
Gifts from abroad over the
years via diplomatic channels up for auction: Souvenirs and mementos that
Indian diplomats have received over the years during their international visits
have gone under the hammer in an auction that is the first of its kind. The
Ministry of External Affairs’ (MEA’s) Toshakhana has put up for bidding around
300 such souvenirs. These range from a Kuwaiti jewellery set made by the Al
Arbash brand, with its base price at almost Rs.10 lakh, to a Rolex Yacht Master
II watch designed specifically for competitive sailing, which is being bid for Rs.20
lakh. Other items on auction include porcelain crockery; jewellery; shawls;
watches; silver daggers, one of which is being bid for Rs.1,80,000; and a 20
gram “fine gold biscuit” inside a box from Switzerland’s Argor Heraeus brand.
(Business Standard)
CBDT readies
plan to meet Rs.26.9 trillion direct tax target in FY27: The Central Board of Direct Taxes (CBDT)
has identified a set of measures to collect Rs.26.97 trillion in direct taxes
in the current financial year (FY27), which include better management of
recovery of dues, detecting wrongful claims of tax exemptions, and outreach
programmes to get tax returns updated where there is short payment of taxes,
an official said. The official said tax collection so far has been encouraging,
with net direct tax receipts reaching Rs.5.21 trillion by June 17, nearly a 15 per cent increase compared to the
same period last year. This strong start has raised hopes that the annual
target will be met comfortably.
(Business Standard)
TWIN DEFICIT
SCENARIO
§ The
twin deficit hypothesis suggests that a country simultaneously runs a high
fiscal deficit and a high current account deficit. Large government borrowing
increases domestic demand, leading to higher imports and a widening trade gap.
§ Persistent
twin deficits can increase dependence on foreign capital and expose the economy
to external shocks. Interviewers often ask candidates to analyze the
implications for exchange rates, inflation, sovereign ratings, and financial
stability.
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 : 94.4804
INR
/ 1 GBP : 124.4987
INR
/ 1 EUR : 107.3637
INR
/100 JPY: 58.3800
EQUITY INDEX
Sensex:
77100.47 (+109.25)
NIFTY:
24056.00 (+34.35)
Bnk NIFTY: 58177.05 (+26.70)
Micro-, Small and
Medium-sized Enterprises (MSME) Day: The Micro-, Small
and Medium-sized Enterprises (MSME) Day is observed every year on 27 June. It
was designated by the United Nations General Assembly in 2017 to recognize the
vital role played by MSMEs in achieving sustainable development, economic
growth, innovation, and employment generation worldwide.
Historical
events: 27 June holds
significance in both Indian and world history. On this day in 1839, the fierce
Sikh ruler Maharaja Ranjit Singh passed away, marking the beginning of
political instability in the Sikh Empire. In 1950, the United Nations Security
Council adopted a resolution recommending military assistance to South Korea
following the outbreak of the Korean War. The day is also notable as the birth
anniversary of Helen Keller (1880), in whose honor the world observes the
International Day of Deafblindness.
****Have a nice Day****
Visit our website www.thebankingupdates.com
For Regular updates, Monthly e-magazines &
Promotion Study materials
CLICK HERE TO
JOIN OUR COMMUNITY/GROUP FOR DAILY UPDATES
CLICK HERE TO JOIN OUR CHANNEL FOR DAILY UPDATES
& QUIZ
Contact us: # 8261802533
Email: bankingupdates2020@gmail.com