Issue: 1176
· Indian banks are facing a
"funding squeeze" as credit growth (14.5%) continues to outpace
deposit growth (11.9%). Lenders are increasingly relying on high-cost
Certificates of Deposit (CDs) to bridge the gap.
· Brent crude jumped nearly 4%
to $106.20 per barrel following reports of energy infrastructure attacks in the
Middle East.
· US 30-year fixed mortgage
rates have reached 6.25%, influenced by the Federal Reserve's recent decision
to pause interest rate cut.
· S&P Global raises India
GDP growth forecast to 7.1% for FY27.
· Goldman Sachs cuts India GDP
forecast for 2026 to 5.9% due to oil price surge and global tensions.
· Global fintech company
Revolut to base 40% of global workforce in India by 2026.
· France to host G7 Summit
including India, South Korea, Brazil and Kenya.
Energy price pressures to
drive CPI inflation to 4.5% in FY27: ICICI Bank report: Rising energy costs are set to
push India's retail inflation to 4.5 per cent in FY27 fiscal year, marking a
shift in the domestic price landscape as the economy adapts to new weightage
measures, as per an ICICI Bank report. The Bank has revised the CPI
upward from an earlier projection of 3.9 per cent. This adjustment comes as
higher prices for petrol and diesel exert more pressure on the consumer basket
than in previous years, despite recent stability in other sectors. The
report noted that India sees "credible success in managing inflation in
FY26 with CPI inflation at 2.1% in the year," a figure that sits at the
lower end of the official inflation band. However, changes in the structural
composition of the revised series increase the economy's sensitivity to global
oil fluctuations.
(Economic Times)
OECD projects India's GDP
to grow at 7.6% in FY26, 6.1% in FY27: The Organisation for Economic
Cooperation and Development (OECD) on Thursday projected India's GDP to grow at
7.6 per cent in the current fiscal and 6.1 per cent in 2026-27. The OECD in its
interim Economic Outlook report said the evolving conflict in the West Asia has
"human and economic costs" for the countries directly involved, and
will test the resilience of the global economy. A halt in shipments through the
Strait of Hormuz and the closure or damage of energy infrastructure has
generated a surge in energy prices and disrupted the global supply of energy
and other important commodities, such as fertilisers.
(Business Standard)
India's GDP growth above 7%
in FY27 despite global headwinds: Assocham: India’s economy is expected to
maintain growth of above 7 per cent in 2026-27 (FY27), supported by strong
domestic consumption and investment, even as global growth could slip below 3
per cent amid geopolitical tensions, industry body the Associated Chambers of
Commerce and Industry of India (Assocham) said on Thursday. India’s gross
domestic product (GDP) is projected to expand by about 7.6 per cent in FY26 and
remain above 7 per cent in the following financial year, despite rising global
uncertainties, the industry body said in a statement.
(Business Standard)
SEBI reviews HDFC Bank
disclosures after Chakraborty’s exit: SEBI’s has begun a review of
the HDFC Bank episode, with the focus initially on disclosure hygiene and could
widen into a broader governance probe if the resignation of former chairman
Atanu Chakraborty points to deeper concerns, sources said. “The examination is
to verify the claims made in the resignation letter and check if anything
material has been left out or misreported,” a person familiar with the
discussions said, adding that further action would be taken if required. Under
SEBI’s Listing Obligations and Disclosure Requirements (LODR) rules, listed
entities are required to disclose such independent director resignations within
prescribed timelines, along with detailed reasons and the resignation letter.
(Business Line)
Banks seek extension of the
trade relief measures amid West Asia war: With the ongoing West Asia
crisis disrupting trade, banks have approached the Reserve Bank of India (RBI)
through the Indian Banks’ Association (IBA) seeking an extension of the trade
relief measures, announced in November, for an additional two quarters, people
aware of the development told FE. On November 14, the RBI announced measures
for exporters such as moratorium or deferment of payment of all term loans and
recovery of interest on working capital loans to ease working capital
facilities falling due between September and December 2025 due to US President
Donald Trump’s tariff measures.
(Financial Express)
India’s banks face funding
crunch as deposit growth falls behind credit: Indian banks are experiencing
a funding squeeze. Loan growth is outpacing deposit growth, forcing lenders to use
certificates of deposit more. This trend is pushing banks to tap wholesale
funding markets. Investments in government securities are also being reduced to
support lending. Household savings are shifting towards market-linked
instruments, impacting traditional deposit mobilization. As
of February 28, credit growth stood at 14.5%, significantly higher than deposit
growth at 11.9%. This widening mismatch has driven banks to tap wholesale
funding markets more aggressively, with CDs now accounting for 2.6% of total
deposits - the highest share in a decade.
(Economic Times)
Allianz Jio
Reinsurance begins operations: Allianz Jio Reinsurance Ltd, a new
venture by Jio Financial Services and Allianz Group, has begun operations in
India. This partnership aims to strengthen the country's insurance sector. It
will offer insurers enhanced risk management capabilities. The joint venture
combines local reach with global expertise. This move supports India's
'Insurance for All' mission.
(Economic Times)
Health insurance sector
records Strong growth momentum with premiums exceeding ?1.2 lakh crore in
2024-25:
India’s
health insurance sector continues to witness robust growth, growing at a rate
of around 9%, with total health insurance premiums volume exceeding ?1.2 lakh
crore in 2024–25. This growth reflects increasing awareness, improved access to
healthcare financing, and a rising demand for financial protection against
medical expenses. In order to enhance efficiency and ensure timely support to
policyholders, IRDAI has prescribed specific timelines for the processing of
cashless health insurance claims. Cashless pre-authorization - Within one hour andFinal
authorization - Within three hours.
(PiB)
Andhra Pradesh set for
India's first 'KGF moment' since Independence: By mid-April, India is set to witness its
first “KGF moment” since Independence. Nearly eight decades after the country’s
last large-scale gold mine — Hutti in Karnataka — began operations in 1947,
commercial production is set to begin at the Jonnagiri gold mine in Andhra
Pradesh. Notably, the mine that began before Hutti was the now-famous Kolar
Gold Fields, or KGF, which started in 1880 and was later immortalised by the
blockbuster film of the same name. More significantly, the mine will be
operated by private-sector company Geomysore Services, which also plans to
process the gold and sell it directly to jewellers under the Geomysore brand.
(Business Standard)
Chip selloff deepens after
Google touts memory breakthrough: Memory chip stocks extended their losses on
Thursday after Alphabet Inc.’s Google publicized research that could allow more
efficient use of the storage needed for artificial intelligence development. Memory chip companies
have been on a tear in recent months as the rapid development of AI
infrastructure triggered a spike in chip prices, driving up profit and stocks.
Four hyperscalers, led by Amazon.com Inc. and Google, plan to spend about $650
billion this year to build data centers, scooping up Nvidia Corp.’s AI
accelerators and related memory chips. But Google’s new technology could alleviate some of
the shortages, potentially pushing down prices. Google said the TurboQuant technology can cut the
amount of memory required to run large language models by at least a factor of
six, reducing the overall cost of training artificial intelligence.
(Moneycontrol)
DPIIT signs MoU with a
digital entertainment company to support startups and strengthen innovation
ecosystem: In a significant step towards strengthening
India’s startup and innovation ecosystem, the Department for Promotion of
Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, has
signed a Memorandum of Understanding (MoU) with a digital entertainment company
to support startups, innovators, and entrepreneurs across the country. The
collaboration aims to foster the growth of product startups working in areas
such as digital entertainment, online gaming, esports, interactive media, and
artificial intelligence-driven technologies. It seeks to enable startups to
develop scalable and industry-relevant solutions through structured industry engagement.
As part of the initiative, startups will be provided access to mentorship,
industry insights, knowledge exchange platforms, and curated engagement
opportunities. The partnership will also facilitate startups in achieving key
milestones such as Proof-of-Concept (PoC) development, market access, and
integration into industry ecosystems, wherever feasible.
(PiB)
National Housing Bank
launches Gruh Sugam Portal focusing on Defence, Paramilitary & Government
Personnel: The
National Housing Bank (NHB), the apex agency established by Government of India
to promote cost effective housing finance system, has launched the Gruh Sugam
Portal. The portal enables Defence / Government personnel to avail home loans
with ease from the location of their posting. This portal will accelerate
digital lending adoption and financial inclusion. It will facilitate increased
home ownership through improved access to housing loans, strengthening the
mission of promoting affordable and sustainable housing finance
(PiB)
TDS certificate issuance
deadline extended by Income Tax dept due to technical glitches on the e-filing
ITR portal: Technical
issues plaguing the income tax e-filing portal have prompted the CBDT to extend
the deadline for issuing TDS certificates. Employers, banks, and other
deductors now have until March 31, 2026, to provide these crucial documents for
the quarter ending December 2025. This move aims to alleviate genuine hardship
faced by those responsible for tax deductions. Section 203 of the Income-tax
Act, 1961 provides for issuance of TDS certificates and the time limits for
issuance of TDS certificate is prescribed under Rule 31 of the Income-tax
Rules, 1962.
(Economic Times)
WEAK SISTER
·
A "weak sister" describes the least
dependable component in a process or group that can undermine the whole. The
term is often used in finance to describe an underperforming investment,
business, or even an economy that creates problems for stakeholders.
·
Spotting a weak sister helps investors and advisors
manage risk and improve portfolio results. For example, one lagging asset in a
diversified portfolio can drag down overall returns.
·
Weak sisters are what hold someone or something
back. It could be a malfunctioning part of a team-oriented task, such as the
slowest member of an assembly line or a sluggish marketing team. Alternatively,
it may describe a security, economy, or business unit that performs worse than
others.
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)
World Theatre Day: Initiated in 1961
by the International Theatre Institute (ITI), this day is celebrated annually
to promote the art form of theatre in all its forms across the world.
Historical
events: March 27th holds
significant milestones in both Indian and world history, perhaps most notably
highlighted by India’s 2019 success in "Mission Shakti," where it
demonstrated its capability as a space power by shooting down a live satellite
in low Earth orbit.
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