Issue: 1309
· SEBI clears Jio Platforms
IPO, set to be India’s biggest public issue at Rs 37,000 cr.
· Gold prices fall 2% after Fed
Chair Kevin Warsh’s hawkish inflation stance.
· Kevin Warsh warns inflation
isn’t slowing, vows to hit Fed’s 2% target.
· India's forex reserves jump
$12.42 billion to record high of $729.33 billion.
· Meta's Sandhya Devanathan to
lead OpenAI's Southeast Asia and Australia operations.
· India, Canada to reach $50
billion trade target by 2030: FM.
IIP growth eases to 6.7% in July: Growth in India’s industrial output, as measured by
the Index of Industrial Production (IIP), slowed to 6.7% in July from a
27-month high in June, mainly because of a contraction in the mining output,
data released by the Ministry of Statistics and Programme Implementation on
Friday showed. A slowdown in manufacturing and electricity growth also weighed
on the headline print. IIP growth last month eased from an upwardly revised
8.8% in June, which is the highest growth since March 2024. Industrial output
had grown 5.4% in July 2025. Sequentially, the general index was unchanged from
June.
(Financial Express)
Govt achieves 78% of FY27 divestment, asset monetisation Budget
target in Apr-Aug: The government has achieved
about 78 per cent of the FY27 budgeted disinvestment and asset monetisation
target of Rs.80,000 crore within 5 months of the financial year. The government
has raised Rs.55,757 crore so far this fiscal through minority stake sale in 9
PSUs, including the big ticket ones like LIC and Coal India, as well as
strategic sale of Indian Medicines Pharmaceuticals Corporation Ltd and
remittances from SUUTI. More than half of the disinvestment proceeds came from
the 6.5 per cent stake sale in Life Insurance Corp (LIC) which garnered Rs.31,515
crore. Further, a 2 per cent share sale in Coal India fetched about Rs.5,542
crore, while a 6.01 per cent stake dilution in NHPC fetched Rs.4,357 crore to
the exchequer.
(Business Line)
FinMin urges ministries to give realistic projections for FY28
Budget: The Ministry of Finance has
started the Union Budget exercise for the next financial year by asking all
line ministries and departments to give realistic projections for FY27 revised
estimates and FY28 estimates, a person privy to the development said. Ministries
have also been told to include proper expenditure estimation in their proposals
to obviate the need for routine, frequent mid-year re-appropriations, said the
person. Ministries and departments have also been explicitly told to ensure
that all allocations sought are in line with the approval of the competent
authority, the person said.
(Business Standard)
Bankers question role of RP in the Subhash Chandra case and how
net worth was computed: The settlement offered by Zee
Group founder Subhash Chandra in the Rs.22,000-crore borrowing case has put the
spotlight on the personal guarantee process, particularly with regard to
personal net worth, creditor qualification and the role of resolution
professionals, bankers told ET. Dissenting banks say
unresolved pleas for a forensic audit and asset trailing to be conducted on
Subhash Chandra's financials to probe how his networth fell from more than Rs
40,562 crore when he issued the guarantees to Rs 32 crore in 2025, the crowding
out of lenders by related party entities in the committee of creditors (CoC),
and the role of resolution professional (RP) Shiv Nandan Sharma in admitting
questionable entities as creditors highlights the difficulties in recovery in
high-profile cases.
(Economic Times)
Bank credit, deposits decline in fortnight ended August 15: RBI
data: The
banking sector saw contraction in both credit and deposits outstanding in the
fortnight ended August 15, Reserve Bank of India's latest weekly data showed. A
net Rs 6534 crore of deposits were withdrawn from the banking system in the
fortnight ending August 15 even as banks continued to amass foreign currency
denominated funds from non-residents, Reserve Bank of India data showed. This
slowed the pace of year-on-year deposit growth to 14.7% at the end of August 15
from the decade-hgh print of 15.4% recorded in the preceding fortnight. The
outstanding bank deposits at the end of the latest reporting cycle stood lower
at Rs 269.31 lakh crore. Banks' credit outstanding also
came down by Rs 70639 crore during the fortnight under review to Rs 220.08 lakh
crore. The credit growth print also contracted to 18.3% against 19.3% in the
preceding 15-day period, data showed.
(Economic Times)
Indian Bank’s Rs.1,500 crore treasury bet comes with a gold
push: CEO Binod Kumar: Indian Bank anticipates
treasury income between Rs 1,000 and Rs 1,500 crore this fiscal year. The
lender expects its gold loan book to surpass Rs 1.5 lakh crore during this
period. Gross non-performing assets are targeted to decrease to 1.5-1.6 percent
by year-end. The bank plans to sell Rs 200 crore in bad loans to an asset
reconstruction company. During the first quarter, the
bank anticipated an overall treasury income of Rs 300 crore, but actually
earned Rs 500 crore, much better than expected, Indian Bank MD and CEO Binod
Kumar told PTI in an interaction.
(Economic Times)
NBFCs enter new cyclical recovery, PAT seen rising 24% in FY27: Non-banking financial companies are entering a
new cyclical recovery phase. Loan growth and asset quality improvements are
expected to drive earnings higher. Profit after tax for NBFCs is projected to
grow significantly in upcoming fiscal years. However, geopolitical risks and
monsoon conditions pose potential challenges to this recovery. Interest rates
may also rise, impacting funding costs and profit margins for some firms.
(Economic Times)
REIT fundraising nearly doubled to Rs.9,300 crore in FY26, InvIT
collections fell 21%: Fundraising through Real Estate Investment Trusts (REITs) nearly
doubled to Rs.9,300 crore in FY26, even as the number of issues remained low at
three, indicating larger capital mobilisation through individual offerings. In
contrast, Infrastructure Investment Trusts (InvITs), despite seeing an increase
in the number of issues, saw fundraising decline by 21 per cent to Rs.21,026
crore.In FY25, REITs had raised Rs.4,728 crore through two issues.
Consequently, the average amount raised per issue in the year ended March 2026
rose 31 per cent to Rs.3,100 crore from Rs.2,364 crore a year ago.
(Business Line)
Fitch Ratings upgrades RIL’s Long-Term Local-Currency Issuer
Default Rating to ‘A-?’: Fitch Ratings has upgraded Reliance Industries
Ltd’s (RIL) Long-Term Local-Currency Issuer Default Rating (IDR) to ‘A-?’ from
‘BBB+’. The Outlook is Stable. The rating upgrade is driven by the rating
agency’s expectation that RIL will sustain positive free cash flow (FCF)
generation on higher EBITDA and lower capex intensity. At the same time, the
agency has affirmed RIL’s Long-Term Foreign-Currency IDR at ‘BBB?’, which is
one notch above India’s Country Ceiling of ‘BBB-?’, with a Stable Outlook.
(Business Standard)
CII taskforce seeks new green finance institution for
sustainability goals: A high-powered taskforce set up by the
Confederation of Indian Industry (CII) has recommended to the government a new
green finance institution to create a transparent pathway for investments in
climate, streamlining and strengthening the Securities and Exchange Board of
India (Sebi)-mandated Business Responsibility and Sustainability Reporting
Framework (BRSR) and broadening sustainability reporting.
(Business Standard)
NBFC body urges RBI to ease proposed curbs on revolving credit
products:
The Finance
Industry Development Council (FIDC), the representative body of non-banking
finance companies (NBFCs), has urged the Reserve Bank of India (RBI) to
reconsider its proposed restrictions on revolving credit products, according to
a letter seen by Business Standard. The industry body has asked the RBI to
allow NBFCs to restore or replenish the principal amount repaid by a borrower
ahead of schedule, subject to safeguards. FIDC said a blanket restriction could
affect several loan products used by micro, small and medium enterprises
(MSMEs) and individuals, including supply chain finance, working capital loans,
and loans against securities. Under the
RBI’s proposed framework, once a term loan is disbursed, the sanctioned limit
cannot be restored or replenished after the borrower repays the whole or part
of the principal. FIDC said this could increase the interest burden for small
businesses, whose funding needs often change based on their cash flows.
(Business Standard)
MCA likely to ease three-year cooling-off period for auditors: The Ministry of Corporate Affairs (MCA) is
likely to tone down its plan for mandating a three-year cooling off period for
statutory auditors after an audit engagement, which was proposed in the
Corporate Laws (Amendment) Bill, 2026 tabled in Parliament in March, two
persons aware of the development said. Instead of a blanket ban on all
non-audit services during the cooling off period as originally proposed, the
ministry is considering limiting the ban to a list of prohibited services
already listed in the Companies Act, the persons said. That means, during the
cooling off period between statutory audits, the auditor can offer permissible
non-audit services to the same client.
(Business Standard)
Govt to buy back Rs.30,000 cr securities on Sep 3 amid surplus
liquidity:
The Reserve
Bank of India (RBI) on Friday announced the buyback of government securities
worth Rs 30,000 crore on September 3. The auction will take place on September 3, between
10:30 AM and 11:30 AM on the Reserve Bank of India Core Banking Solution
(E-Kuber), the RBI said in a notification. The government will buy back
securities such as 7.33 per cent GS 2026, 5.74 per cent GS 2026, 8.15 per cent
GS 2026, and 8.24 per cent GS 2027, the notification said.
(Business Standard)
VARIABLE RATE
REVERSE REPO RATE (VRRR)
· The Variable Rate Reverse Repo
Rate (VRRR) is a liquidity-absorption mechanism used by the Reserve Bank of
India to withdraw surplus funds from the banking system. Under VRRR auctions,
banks and other eligible participants place their excess funds with the RBI for
a specified period and quote the interest rate at which they are willing to
lend.
· Unlike the fixed-rate Standing
Deposit Facility (SDF), the interest rate under VRRR is determined by market
bids. The auction may be conducted for different tenors, such as overnight,
7-day or 14-day periods, depending on liquidity conditions. VRRR is part of
RBI’s liquidity-management framework and helps absorb surplus liquidity,
improve monetary-policy transmission and keep the weighted average call rate
close to the policy repo rate.
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 : 95.5614
INR /
1 GBP : 129.8867
INR /
1 EUR : 111.2956
INR
/100 JPY: 59.9200
EQUITY INDEX
Sensex:
77264.51 (+330.92)
NIFTY:
24175.65 (+84.80)
Bnk
NIFTY: 57496.30 (-13.65)
National Sports Day: National Sports
Day is celebrated in India every year on August 29 to mark the birth
anniversary of the legendary hockey player Major Dhyan Chand, known as the
"Wizard of Hockey," who won three Olympic gold medals for India.
Historic events: Globally, this
date witnessed major historical milestones, including the signing of the Treaty
of Nanking in 1842 which ended the First Opium War, Michael Faraday's discovery
of electromagnetic induction in 1831, and the Soviet Union conducting its first
successful atomic bomb test in 1949.
****WISHING A NICE DAY****
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