Issue: 1229
· India-Canada trade deal has
full potential to be concluded by end-2026; services to be key pillar, says
Piyush Goyal.
· PRAGATI meet: PM reviews
infra projects worth Rs 30,000 crore; urges rapid urban rooftop solar push.
· Swiggy CEO Sriharsha Majety
vows to stay out of Amazon-Flipkart spending war.
· SC upholds retrospective 28%
GST on online gaming cos
· Govt to take action against
diversion of cheap diesel earmarked for common man to industrial users.
· HDFC Bank may face regulatory
scrutiny for alleged violation of RBI directions on deposits rates.
New series IIP from June 1
to give better estimates on factory output: India’s macroeconomic data is
set to get one more revamp that will help in more accurate estimation of
factory output. An updated series of the Index of Industrial Production with a
base year of 2022-23 and a wider coverage with several new products is set to
be released on June 1. This follows the updation of the GDP estimates and Consumer
Price Index earlier this year. The new IIP will continue to
cover the three broad industry sectors of mining, manufacturing and industry.
But besides the existing sectoral coverage, it will also cover minor minerals,
rare earth minerals, gas supply, water supply, sewerage and waste management.
Further, it will release indices at greater granularity by providing separate
indices for generation of electricity through renewable and non-renewable, gas
supply, fuel minerals, metallic minerals and non-metallic minerals, water
supply, sewerage and waste management.
(Business Today)
Iran deal may ease oil
stress, but won't plug India's capital or AI gaps: A US-Iran peace deal will be
cheered by governments around the world. But in India, critically dependent on
the Strait of Hormuz for everything from cooking fuel to fertilisers, an end to
the energy squeeze of the last three months will only bring short-term relief.
That’s because the West Asia crisis has exacerbated a different kind of
shortage in the world’s most populous nation — of capital and ideas. Neither
gap will get plugged any time soon. The
two flows are interlinked. Having failed to emulate East Asia’s success with
manufacturing exports, India pays for its chronic trade shortfall by writing
IOUs to global investors. As Kotak Institutional Equities in Mumbai noted in a
recent report, a combination of high current deficits and large capital
surpluses has historically sustained India’s external accounts. But that model
of financing was weakening long before the effective closure of the Strait of
Hormuz.
(Business Standard)
Govt prepares Rs.10,000
crore LIC stake sale next month: India is likely to begin
formal marketing next month for a planned share sale in Life Insurance
Corporation of India that could raise as much as Rs.10,000 crore, according to
people familiar with the matter. The government plans to sell a stake of about
2% in the state-run insurer in late June or early July to institutional
investors, the people said, asking not to be identified because the information
is private.
(Business Line)
HDFC Bank, under scanner
over Rs 45 cr MSRDC deal: An Indian Express
investigation has revealed a Rs 45 crore ‘shadow deal’ involving the country’s
largest private sector lender and the Maharashtra State Road Development
Corporation (MSRDC). The report states that the Audit Committee of the Board
(ACB) had ordered a formal internal vigilance investigation into payments
totalling Rs 45 crore made to MSRDC, a state government agency, during FY2024
and FY2025. The investigation reveals,
“these payments, based on internal records, were meant for MSRDC as
“differential interest” i.e., interest over and above the specified rate, on
its deposits. But instead of being credited directly to MSRDC’s account as
interest earned, they were routed through the bank’s marketing department,
disguised as contributions to a road safety awareness campaign through four
local vendors.”
(Financial Express)
Indian banks more exposed
to West Asia crisis among APAC region: Moody's: Moody's Ratings on Wednesday
said Indian banks are among the more exposed in the Asia-Pacific region, given
the economy's high dependence on energy imports from West Asia and the
consequent pressure on inflation, interest rates and borrower cash flows. Moody's
said higher fuel costs will strain consumers' budgets and raise debt-servicing
burdens for households and SMEs, translating into increased, though gradual,
credit stress in these loan portfolios.
(Economic Times)
FinMin to meet chiefs of
PSU banks on Fri to review credit flow to agri, MSME sectors: The finance ministry has
called a meeting of heads of public sector banks (PSBs) on Friday to review
financial performance, progress of credit flow to the agriculture sector and
MSMEs amid the West Asia crisis. Public sector banks posted
record profits of Rs 1.98 lakh crore in the financial year ended March 2026.
The finance ministry will meet bank chiefs to review performance and credit
flow to agriculture and MSMEs. Discussions will also cover regional rural
banks, digital frauds, and recovery mechanisms. This meeting follows a period
of strong profitability and business growth for PSBs.
(Economic Times)
Banking sector key to
realising Viksit Bharat vision: SBI Chairman C S Setty: As India advances towards its
Viksit Bharat vision, the banking sector will play a transformative role in
mobilising capital, fostering entrepreneurship, supporting infrastructure
development, and accelerating financial inclusion, SBI Chairman C S Setty said.
"As the country's largest bank, we recognise both the opportunity and
responsibility that comes with this role and remain committed to supporting
India's growth aspirations," he said in his address to shareholders in the
annual report. Sharing the vision for the
bank, Setty said, "Our strategic priorities will remain firmly centred
around strengthening our 'Digital First, Customer First' approach."
(Economic Times)
Banks need to act fast as
customers turn to AI for stock picks and savings yields: McKinsey & Company: Customers are embracing generative AI at an
unprecedented pace. This rapid adoption is outpacing traditional technologies,
leaving banks with limited time to adapt. Consumers are already using AI for
sophisticated financial tasks, even outperforming professional stock pickers.
Banks must quickly evolve their products and services to meet this growing
demand.
(Economic Times)
Allahabad HC quashes labour
law case against Wipro chairman Azim Premji: The Lucknow bench of the Allahabad High Court
on Wednesday quashed criminal proceedings against Wipro chairman Azim Premji
and other senior company officials, initiated in connection with alleged
violations of labour laws. The court also set aside the summons issued by a
magistrate's court in the matter. The order was passed by Justice Jafeer Ahmad
on a petition filed by Premji and others.
(Business Standard)
TCS inks multi-year AI
transformation deal with SKF: TCS on Wednesday announced that it has bagged
a multi-year deal from Swedish bearings maker SKF. The financial details were
not shared, but people in the know called it a multi-year, multi-million-dollar
engagement. The deal, which comes at a time when concerns are being raised
about the IT sector story following the advent of AI, involves modernisation of
SKF's existing IT landscape. TCS will enable SKF to build a future-ready
digital enterprise, leveraging AI to reimagine industrial manufacturing
business, a statement said. The Indian IT major will provide end-to-end managed
services across applications, infrastructure, data, end-user services,
security, and connectivity for SKF across the globe.
(Business Standard)
Supreme Court upholds 28%
GST on online gaming; Rs.1 lakh cr tax burden looms: In what is being seen as a
setback to gaming companies, the Supreme Court on Wednesday upheld the
constitutional validity of the 28% goods and services tax on online gaming
companies on a retrospective basis, backing the tax demands of over Rs 1 lakh
crore on these firms. The decision by the court is seen to settle the position
of law on this issue and is expected to lead to significant tax payments by
online gaming companies although many have since then shut shop.
(Business Today)
Cabinet extends
SARTHAK-PDS scheme for 5 yrs with Rs.25,530-crore outlay: The Union Cabinet on Wednesday approved
the extension of the 'SARTHAK-PDS' scheme for five years till March 2031, with
an outlay of Rs.25,530 crore, by merging two existing programmes. It also
revised the norms governing Central assistance to states and union territories
for intra-state movement and handling of food grains, along with fair price
shop (FPS) dealers' margins, while retaining the existing funding pattern.
(Business Standard)
MFI portfolio
drops 9% YoY to Rs 3.34 trillion as of April 2026: Equifax: The total microfinance portfolio
outstanding stood at Rs.3.34 trillion as of April 30, 2026, reflecting a 9 per
cent year-on-year (Y-o-Y) decline, while active loans moderated to 10.28 crore,
according to an Equifax report. Disbursement activity also remained measured,
with industry-wide disbursement volumes declining 18 per cent year-on-year and
disbursement value reducing 4 per cent during the period from May 2025 to April
2026. However, there was a notable improvement in asset quality across the
industry, with the 30+ days past due (DPD) delinquency rate declining sharply to
2.5 per cent in April 2026 from 6.4 per cent in April 2025.
(Business Standard)
ANGEL CAPITAL
§ Angel capital is capital invested in a start-up
venture or small business expansion by an angel investor. Angel investors are
typically individuals, partnerships or investment groups who consciously seek
higher rates of return than is available in more traditional investments. An
angel investor typically seeks returns on investment of 20-25 percent or more
per year.
§ Angel capital is an equity investment where the
angel investor provides funding in exchange for taking an equity position in
the company. Equity financing is normally used by non-established businesses that
do not have sufficient cash flow or collateral with which to secure business
loans from financial institutions.
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 : 95.7883
INR
/ 1 GBP : 128.8021
INR
/ 1 EUR : 111.4937
INR
/100 JPY: 60.1100
EQUITY INDEX
Sensex:
75867.80 (-141.90)
NIFTY:
23907.15 (-6.55)
Bnk NIFTY: 54853.85 (-239.05)
Historical
events: May 28 is a
monumental date in history, marked by major milestones in both India and the world. In India, it is widely observed as the birth
anniversary of the prominent freedom fighter and nationalist Vinayak Damodar
Savarkar (born 1883), while globally, it marks the day in 2008 when the
Constituent Assembly officially abolished the 240-year-old Shah dynasty to
declare Nepal a republic Indiatoday. Furthermore, on this day in 1998, Pakistan
conducted its first series of underground nuclear tests.
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