Issue: 1205
· RBI approves reappointment of
Subrat Mohanty as Executive Director of Axis Bank for 3 years.
· Global banks remain cautious
amid geopolitical risks from Middle East conflict impacting credit outlook.
· US Federal Reserve keeps
interest rates unchanged at 3.5%–3.75% amid inflation concerns.
· Senate panel advances Kevin
Warsh nomination as next Federal Reserve Chair.
· Oil prices surge near
$120/barrel due to Iran conflict, raising global inflation concerns.
· IMF lowers global growth
outlook amid energy shocks and geopolitical tensions.
· Global markets face
volatility as energy prices and supply disruptions intensify.
US Fed holds interest rates
unchanged at 3.5-3.75% in rare 8-4 split; flags ‘elevated’ inflation amid oil
surge: The
Federal Reserve kept its benchmark interest rate unchanged at 3.5-3.75 percent
on Wednesday, but the decision came in a sharply divided 8-4 vote. The highest
number of dissents since 1992 highlights the deepening differences among
policymakers at what is likely Jerome Powell’s final meeting as chair. The
policy-setting Federal Open Market Committee (FOMC) said inflation remains
“elevated”, revising its earlier description of “somewhat elevated”, and cited
a recent rise in global energy prices as a key factor. The central bank also
flagged that the ongoing US-Iran conflict is contributing to a “high level of
uncertainty” around the economic outlook.
(Moneycontrol)
External commercial
borrowings fall 25% in FY26 amid currency risks, shift to domestic funding: External commercial borrowings
(ECBs) declined in FY26 after peaking in the previous fiscal, reflecting a
shift in borrowing patterns and weakening of the rupee. ECB registrations in
FY26 (April-February) fell to $37.5 billion from $50.1 billion in the same
11-months period in FY25, even as the number of such borrowings inched up to
1,250 from 1,220. The moderation comes after a steady rise from $22.8 billion
in FY23 to $41.5 billion in FY24 and a peak in FY25.
(Business Line)
Centre proposes E100
testing framework to accelerate flex fuel vehicles: The Ministry of Road Transport
and Highways (MoRTH) plans to widen emission testing standards for flexible
(flex)-fuel vehicles that can run on 100 per cent ethanol (E100), in a bid to
boost production of such vehicles. In a draft notification issued on Tuesday
night, the ministry proposed including E100 in testing and certification
standards, replacing the current provision that only covers E85, a fuel blend
containing 85 per cent ethanol and 15 per cent gasoline. The West Asia crisis
has spurred the push for faster adoption of flex-fuel vehicles, as critical
energy supplies, including crude oil, remain vulnerable in the Strait of Hormuz
off the Iranian coast.
(Business Standard)
RBI allows banks to extend
relief measures to borrowers without their requests in disaster-hit areas: Banks are allowed to extend
relief measures to all borrowers without waiting for their requests, according
to the Reserve Bank's revised guidelines for calamity-affected areas, which
take effect from July 1. "Lenders are permitted to
extend the relief measures to all borrowers without waiting for a request from
them, with an opt-out clause for such borrowers who desire to opt out at any
point till the end of 135 days from the date of declaration of natural
calamity," the RBI said while issuing the directions. One of the
directions said that a bank may operate its calamity-affected branches from
temporary premises under advice to the concerned regional office of the RBI. Borrowers
will be eligible for resolution whose accounts are classified as 'Standard',
but which are not in default for more than 30 days with the bank as on the date
of occurrence of the calamity.
(Moneycontrol)
Govt bars Mythos testing in
banks: India
has taken a pre-emptive stance on Anthropic’s unreleased frontier AI model
Mythos, indicating that banks and insurance companies will not be allowed to
test or deploy it until its safety is established, even as authorities step up
preparedness against potential cyber risks, sources told Fe. The
guidance does not amount to a ban on an existing deployment, as Mythos has not
yet been made available outside a limited sandbox environment in the United
States. Instead, it signals that any future access to the model will be subject
to regulatory clearance.
(Financial Express)
IOB Q4 net jumps 43% to Rs
1,505 crore; FY26 profit crosses Rs 5,000 crore mark: Indian Overseas Bank (IOB)
reported a 43% year-on-year rise in net profit to Rs. 1,505 crore in the fourth
quarter, aided by higher interest income and lower provisions and tax expenses.
For FY26, net profit rose 56% to Rs. 5,419 crore, crossing the Rs. 5,000 crore
mark for the first time. The public sector lender also crossed a key milestone,
with annual operating profit exceeding Rs. 10,000 crore for the first time at Rs.
10,026 crore. Credit growth continued to
outpace deposits. Total advances rose 24% year-on-year to Rs. 3.10 lakh crore
in Q4FY26, while deposits grew 18% to Rs. 3.68 lakh crore. Total business stood
at Rs. 6.78 lakh crore, up 21% year-on-year. Asset quality improved during
the quarter. Gross NPAs declined to 1.42% from 2.14% a year earlier, while net
NPAs fell to 0.21% from 0.37%.
(Financial Express)
India’s credit
card market expands to 119 million, PSU banks gain in spends: India's credit card market has surpassed
119 million cards. HDFC Bank, SBI Cards, ICICI Bank, and Axis Bank dominate
this sector. HDFC Bank is expanding its lead in both card numbers and spending
value. Public sector banks are showing strong growth, especially in tier-2 and
tier-3 markets. This expansion is driven by wider networks and partnerships.
(Economic Times)
FinMin asks
banks to take measures for welfare of persons with disabilities: Public sector banks and financial institutions
are now required to offer reservations for individuals with benchmark
disabilities in direct recruitment and promotions. The Department of Financial
Services has issued clear instructions for this implementation. Furthermore,
these institutions must hold regular meetings with PwD Employees Welfare
Associations to address concerns and ensure their voices are heard.
(Economic Times)
No paperwork for
NPS retirees' medical allowance: The government has moved to a fully
automated system for paying fixed medical allowance (FMA) to National Pension
System (NPS) beneficiaries, eliminating the need to submit medical bills and
reducing delays. For NPS retirees, especially those
dependent on fixed incomes, predictability and ease of access are critical. The
new system addresses several long-standing issues.
(Business Line)
Corporate boardrooms now
have more than 10 lakh women, less than half of men: Number of women in India’s corporate
boardrooms crossed 10 lakhs at the end of 2025, still it is lower than half of
numbers for men, a report by Statistics Ministry, released on Wednesday showed.
Meanwhile, share of women among judges, police and army are not very
encouraging. The 27th edition of annual publication ‘Women and Men in India,’
by Statistics Ministry termed the decision-making as fundamental to the
exercise of agency and the ability of individuals to shape social, economic,
and political outcomes. Women, who are equally affected by contemporary
challenges in development, peace, and security, must therefore be engaged in
decision-making processes across all spheres and at all levels, it said.
(Moneycontrol)
Finance Secretary reviews
PSU insurance strategy: Financial services secretary M Nagaraju reviewed
strategy documents for four public sector insurance companies. He directed them
to boost investment opportunities and cut loss ratios. The companies must also
maintain market share. Strengthening retail portfolios and expanding presence
in rural and semi-urban areas are key priorities. These steps aim to enhance
their overall performance and reach.
(Economic Times)
iPhone exports hit record Rs.
2 trillion in final year of smartphone PLI: India’s iPhone exports hit a record high in
FY26, reaching Rs. 2 trillion in the final year of the production-linked
incentive (PLI) scheme for large-scale electronics manufacturing, according to
data submitted by vendors to the government. With that, the Apple Inc-owned
smartphone brand has emerged as India’s single largest branded export across
all major export categories classified under the Harmonised System (HS) code
framework, which covers more than 5,000 product groups used in global trade.
(Business Standard)
SEBI operationalises PaRRVA
to verify performance claims of market intermediaries: The market regulator has
operationalised the Past Risk and Return Verification Agency (PaRRVA) framework
to enhance transparency in performance claims made by market intermediaries. Care
Ratings has been granted recognition as the PaRRVA, while National Stock
Exchange of India Limited (NSE) will function as the PaRRVA Data Centre (PDC),
in line with the regulatory framework issued on April 4, 2025, SEBI said in a
statement. The regulator said a pilot phase of the system was launched on
December 8, 2025. Following the successful completion of the pilot, PaRRVA will
commence full-scale operations from May 4, 2026. The initiative is designed to
allow regulated entities to present verified performance metrics, while
enabling investors to access reliable and standardised data for informed
decision-making.
(Business Line)
RBI notifies
final lending rules for UCBs: The Reserve Bank of India on Wednesday
issued the final norms governing lending by urban co-operative banks (UCBs). In
a relief to Tier 1 and Tier 2 UCBs, the regulator has increased the moratorium
cap on housing loans to 24 months from 18 months earlier. The guidelines will
be in effect from October 1. However, the overall tenor of housing
loans for these banks will continue to be capped at 20 years, including the
moratorium period. Tier 3 and Tier 4 UCBs can determine the
tenor and moratorium for housing loans according to their Board-approved
policies. The aggregate unsecured loans and
advances of a UCB cannot exceed 20% of its total loans and advances, as per the
audited balance sheet of the previous financial year, the guidelines said. However,
unsecured loans up to Rs 50,000 per borrower that are eligible for priority
sector classification would be excluded from this prudential ceiling. The
RBI also has retained revised caps on individual unsecured advances within the
overall limit, which was Rs 5 lakh for Tier 1 UCBs, Rs 7.5 lakh for Tier 2 and
Rs 10 lakh for Tier 3 and Tier 4 banks.
(Financial Express)
Social justice
ministry spends Rs 2,042 crore on educational schemes in FY-26: Union Ministry of Social Justice and
Empowerment has disbursed over Rs 2,000 crore on various educational schemes
for OBCs, EBCs, and DNTs students in the Financial Year 2025-26, an official
statement said on Wednesday. Union Minister Virendra Kumar said these
interventions seek to improve access to quality education and support academic
progression among students from these communities.
(Economic Times)
UNDERCAST
· Undercast
is a type of forecasting error that occurs when estimates turn out to be below
realized values. These estimates could apply to sales, an expense line item,
net income, cash flow, or any other financial account.
·
Undercast estimates can occur
because of a conservative management team or a volatile or unpredictable market.
·
Dishonest undercast estimates
can occur because management purposefully lowered estimates to ensure that the
actual performance would outperform the lower numbers.
·
? Continuous undercasting indicates that a company is ineffectively
deploying its resources based on poor estimates.
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 : 94.7870
INR
/ 1 GBP : 127.9454
INR
/ 1 EUR : 110.8844
INR
/100 JPY: 59.3400
EQUITY INDEX
Sensex:
77496.36 (+609.45)
NIFTY:
24177.65 (+181.95)
Bnk NIFTY: 55403.60 (+3.25)
International
Jazz Day: April 30 is celebrated
primarily as International Jazz Day, recognized by UNESCO to promote peace and
dialogue through music. Other notable observances include National Honesty Day,
National Hairstylist Appreciation Day, and National Oatmeal Cookie Day. In
India, it is observed as Ayushman Bharat Diwas.
Historical
events: April 30 holds
major historical significance, marking the 1945 suicide of Adolf Hitler, the
1789 inauguration of George Washington, and the 1975 fall of Saigon ending the
Vietnam War. In India, it is celebrated as the birth anniversary of Dadasaheb
Phalke (1870), the father of Indian cinema.
****Have a nice Day****
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