Issue: 1204
· Banking stocks came under
pressure due to stricter RBI credit-loss provisioning norms impacting
profitability expectations.
· RBI announced auction of
?14,500 crore State Government Securities (SGS) to manage liquidity.
· Financial sector remains
resilient with strong forex reserves (~$697 billion) and stable external
indicators.
· India’s GDP outlook remains
stable (~6.9% FY27) but geopolitical tensions pose downside risks.
· Brent crude crossed
$110/barrel, increasing inflation and fiscal risks for oil-importing countries
like India.
India’s industrial output
growth slows to a five-month low of 4.1% in March: India’s industrial output growth
slowed to a five-month low of 4.1 percent in March 2026, easing from 5.1
percent in February, as a sharp moderation in electricity generation and softer
manufacturing momentum offset continued strength in capital goods production. The
latest Index of Industrial Production (IIP) print marks the weakest expansion
since October 2025, when factory output had risen just 0.5 percent. Industrial
growth had remained above 5 percent in both January and February this year before
losing momentum in March. The slowdown in momentum could also be a result of
Iran-Israel-US conflict, which hampered energy supplies from the region and led
to the government curtailing supply of piped gas to industrial establishments. Manufacturing,
which carries the highest weight in the index, expanded 4.3 percent in March,
down from 5.9 percent in February. Electricity output growth decelerated
sharply to 0.8 percent from 2.3 percent, while mining improved to 5.5 percent
from 3.1 percent a month earlier.
(Moneycontrol)
UAE leaves OPEC and OPEC+
in huge blow to global oil producers' group: The United Arab Emirates said
on Tuesday it quit OPEC and OPEC+, dealing a heavy blow to the oil exporting
groups and their de facto leader, Saudi Arabia, at a time when the Iran war has
caused a historic energy shock and unsettled the global economy. The
stunning loss of the UAE, a longstanding OPEC member, could create disarray and
weaken the group, which has usually sought to show a united front despite
internal disagreements over a range of issues from geopolitics to production
quotas. UAE exit from OPEC represents
a big win for U.S. President Donald Trump, who has accused the organisation of
"ripping off the rest of the world" by inflating oil prices. The
move came after the UAE, a regional business hub and one of Washington's most
important allies, criticised fellow Arab states for not doing enough to protect
it from numerous Iranian attacks during the war.
(Moneycontrol)
India’s GDP Outlook: Nomura
sees growth picking up H2; FY27 GDP target seen higher to 6.8%: The Iran-US war is impacting
India’s economy across multiple fronts – from LPG gas availability to spike in
food prices, the crude supply disruption due to the Middle East conflict and
the prices continuing above the $100/bbl mark continue to be a key concern. The
key question is how would all this impact growth. Nomura expects India’s growth
to ease 7.3% in Q1FY27 compared to the previous quarter. For the full year,
though, the international brokerage house sees growth picking up to 6.8%,
higher than the consensus estimate of 6.4%. According to Nomura, the GDP growth
for India is expected to ease further to around 6.3–6.7% in H1FY27. However,
growth is likely to pick up in the second half of FY27 to around 7.1–7.2%.
(Financial Express)
RBI to track offshore rupee
trades; new reporting rules start in July: The Reserve Bank of India
(RBI) on Monday asked banks to report offshore rupee-linked derivative
contracts executed by their group entities.The directive, which comes into
force from July 2027 in a phased manner, signals a decisive shift in the
regulator’s approach—from monitoring domestic transactions to tracking the full
global footprint of rupee trades. The RBI said that the move aims to improve
transparency and enable efficient price discovery in the forex market.
(Financial Express)
RBI rolls out UCB training
programme: The
Reserve Bank of India has launched Mission SAKSHAM. This initiative aims to
build capacity across all urban cooperative banks nationwide. Approximately
1.40 lakh participants will undergo training. The program will enhance
managerial and operational skills. It also focuses on improving compliance and
strengthening institutional resilience. Board members, senior management, and
employees in critical functions will benefit.
(Economic Times)
AU Small Finance Bank files
final application for universal banking licence: AU Small Finance Bank has
submitted its final application for a universal banking license. This follows
the Reserve Bank of India relaxing a key requirement regarding a non-operative
holding company. The bank is fully prepared for this transition. AU Bank
received its in-principle license last year and has been working towards this
conversion.
(Economic Times)
PhonePe crosses
50 million merchants, expands digital payments and financial services footprint
across India:
PhonePe
has achieved a major milestone with 50 million registered merchants. This
growth signifies a significant step in bringing financial services to more
Indians. The platform now offers a wide range of solutions beyond just
payments. This includes loans and business tools for small enterprises.
PhonePe's focus on accessibility, especially in smaller towns, has been key to
this success.
(Economic Times)
SBI leads policy
push to solve India’s change crunch: For those who have faced a shortage of
small-value notes and coins in their wallets, the next three months could bring
a change. SBI, is looking to install dozens of cash and coin dispensers by the
end of June, as it leads an initiative by the government and the RBI to ease
access to low-denomination paper money and coins. The state-owned lender plans
to install 60 such machines in markets and other high-traffic areas where
demand for change is high, according to four people familiar with the development.
The rollout will cover branches with currency chests in cities such as
Bengaluru, Pune, Amravati, Chandigarh, Vellore, and Shimla, among others. The
idea is to cover 13-14 states, the person said.
(Mint)
Bank of Baroda
launches Indian Sign Language support through video calls: Bank of Baroda (BoB) has launched Indian
Sign Language (ISL) support through video calls at its Contact Centre, whereby
customers with hearing or speech impairments can access banking assistance
through specially trained ISL interpreters, who will assist customers via video
interaction. The public sector bank said the ISL service is available across
five key customer touch points: website, mobile banking app, WhatsApp Banking,
Phygital Branches, and ADI (GenAI-powered chatbot). Customers opting for the
video call feature can choose between ‘Video Call with Voice’ and ‘Video Call
with Sign Language.’ Upon selecting the Sign Language option, the call is
routed to a trained customer service associate for real-time assistance.
(Business Line)
Air India, IndiGo, SpiceJet
warn of ‘stopping operations’ amid fuel cost surge, seek govt relief: India’s leading carriers Air India, IndiGo and
SpiceJet have warned the government that the aviation sector is under “extreme
stress” and could be pushed to the brink of “stopping operations”, PTI
reported, as they pressed for relief on Aviation Turbine Fuel (ATF) pricing and
financial support. The concerns come amid rising global oil prices
triggered by tensions in West Asia and airspace restrictions that have driven
up operating costs, particularly for long-haul flights. ATF makes up nearly 40
percent of an airline’s operational expenses, intensifying the financial
strain. In a letter dated April 26 to the civil aviation ministry, the
Federation of Indian Airlines (FIA), which represents the three carriers,
flagged the “unprecedented rise in jet fuel prices” and the widening crack, or
differential, between crude oil and ATF.
(Moneycontrol)
Elon Musk’s X Money eyes
‘everything app’ push: Elon Musk is taking another step towards turning X
into more than just a social media platform. The company is preparing to roll
out X Money, a payments and banking layer that could bring transfers, savings
and basic financial tools into the app itself. An early version of the service
is expected to go live soon, based on Musk’s recent comments. If it scales,
this could be X’s biggest move yet towards becoming an “everything app,”
something Musk has long said he wants to build, inspired by China’s WeChat. Instead of switching
between apps to message, pay, shop or track expenses, users could do all of
that within X. Early testers suggest the platform may offer cashback on
purchases, relatively high returns on balances, and free peer-to-peer
transfers.
(Business Today)
Flipkart, Axis Bank and
PayU launch biometric card payments, ditching OTPs: Flipkart, Axis Bank and PayU on Tuesday
announced the launch of biometric authentication for card payments on the
e-commerce platform, allowing Axis Bank cardholders to approve transactions
using their fingerprint or Face ID instead of a OTP. The feature is currently
live for Axis Bank cardholders on supporting Android and iOS devices. PayU
handles the merchant-side infrastructure and authentication flows, while Axis
Bank uses Wibmo — a PayU subsidiary — to power verification on the issuer side.
Flipkart said it is among the first major Indian e-commerce platforms to offer
this capability.
(Business Line)
Goods for re-export to be
treated as imports. CBIC explains why: The Central Board of Indirect
Taxes and Customs (CBIC) has clarified that goods that are cleared into the
domestic tariff area (DTA) from special economic zones and are then re-exported
would be treated as imports for duty drawback. The new circular from CBIC is
expected to provide clarity to its field officers as well as exporters on the
treatment of such goods for the disbursement of drawback. "…it has been
observed by the Audit that divergent practices are being followed in the
processing of duty drawback claims filed by DTA units under Section 74 of the
Customs Act, 1962. It has been stated that some field formations have not
treated clearance from SEZ to DTA as import and have denied the disbursement of
drawback under Section 74 of the Customs Act, 1962,” the CBIC said. The
CBIC noted that, as per Section 74 of the Customs Act, drawback is admissible
on the re-export of duty-paid goods, provided the goods are capable of being
easily identified and were previously imported into India.
(Business Today)
CBDT conducts
mega outreach with theme ‘Bridging Borders, Building Trust’: The Chief Commissioner of Income Tax
(International Taxation) North Zone organised a Mega Outreach Programme titled
‘Bridging Borders, Building Trust’ at New Delhi. The outreach aimed to raise
awareness among stakeholders of the provisions of the new Income-tax Act, 2025,
the Income-tax Rules, 2026, and the new forms, with an emphasis on
International Taxation, Transfer Pricing, and Advance Pricing Agreements.
(PiB)
Odisha unveils
new policy to reuse treated water, targets 50% by 2036: The Odisha government on Tuesday notified
a new policy on the reuse of treated used water in the urban areas of the state
to strengthen water security and promote sustainable resource management. It
laid down an ambitious roadmap to convert urban wastewater into a productive
economic resource. The 'Policy on Reuse of Treated Used Water of Urban Odisha,
2026' — one of the most comprehensive water reuse frameworks introduced by any
state — seeks to address rising seasonal and spatial water stress in urban
areas while advancing the principles of circular economy and climate
resilience.
(Business Standard)
REAL & NOMINAL GDP
· Nominal
GDP measures the total value of goods and services produced in a country using
current prices, while real GDP measures the same value adjusted for inflation.
Real GDP is considered a more accurate measure of a country's economic
performance.
·
Real GDP is calculated by
adjusting nominal GDP for inflation using a statistical tool called the price
deflator.
·
Real GDP is more accurate
because it removes the effects of inflation. This allows economists to see if
the value of output has increased due to more production or higher prices.
·
Real GDP = (Nominal GDP/Price
Index) × 100
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 : 94.5210
INR
/ 1 GBP : 127.7483
INR
/ 1 EUR : 110.6179
INR
/100 JPY: 59.3600
EQUITY INDEX
Sensex:
76886.91 (-416.72)
NIFTY:
23995.70 (-97.00)
Bnk NIFTY: 55400.35 (-863.95)
International
Dance Day: April 29 is
primarily celebrated globally as International Dance Day, established in 1982
by the International Theatre Institute (ITI) to commemorate the birthday of
modern ballet creator Jean-Georges Noverre. It is a day to promote dance,
cultural diversity, and participation in the arts.
Historical
events: April 29th marks
significant historical milestones, including the 1429 arrival of Joan of Arc at
Orléans, the 1770 landing of James Cook in Australia, and the 2011 wedding of
Prince William and Catherine Middleton. In India, it is recognized for the
birth of painter Raja Ravi Varma (1848) and the 1993 opening of the Red Fort to
the public.
****Have a nice Day****
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