Issue: 1257
· Puneet Sharma in fray for
HDFC Bank CFO role after Axis Bank exit.
· Yes Bank to raise up to $1.7
billion via equity, debt issue.
· June set to end with around
40% rainfall deficit as hopes of monsoon revival fade.
· India’s kharif acreage down
23%, as deficient monsoon begins to impact sowing.
· May IIP surges to 5.1% –
Power output jumps 9%, manufacturing growth strong at 5.5%.
· Axis Bank FY26 attrition rate
down to 22.4%; employee count drops 3%.
India’s external debt hits
$762.8 billion, debt-to-GDP ratio rises to 20.8%: India’s total external debt
stood at $762.8 billion at the end of March 2026, registering an increase of
$26.3 billion over the year-ago period, according to the RBI data released on
Monday. Valuation effect due to the
appreciation of the US dollar vis-à-vis the Indian rupee and other major
currencies amounted to USD 24.6 billion, according to the data on 'India’s
External Debt as at the end of March 2026'. "Excluding the valuation
effect, external debt would have increased by $51 billion instead of $26.3
billion at end-March 2026 over end-March 2025," the Reserve Bank of India
said. The central bank also said
that the external debt to GDP ratio increased to 20.8 per cent at end-March
2026 from 19.8 per cent during the corresponding period a year ago.
(Moneycontrol)
India’s industrial
production for May jumped 5.1%: Industrial output in India
jumped 5.1 per cent in May compared with 4.9 per cent in April (both based on
the new series), mainly on the back of improved manufacturing sector
performance, according to Index of Industrial Production (IIP) data released
Monday. In May 2026, the Index of Industrial Production recorded a 5.1 per cent
year-on-year growth, supported by strong growth of 9.9 per cent in the
electricity and gas supply sector and 5.5 per cent growth each in
manufacturing, and water supply, sewerage and waste management, Ministry of
Statistics and Programme Implementation (MoSPI) said. But, the growth rate in
mining and quarrying slipped 1.6 per cent.
(Business Line)
Housing sales in metros
fall 6% in April-June amid West Asia conflict: Housing sales in India’s
Tier-I markets recorded a 6 per cent YoY decline amid persistent uncertainty
caused by the war in West Asia, which led to supply chain disruptions for
developers across the board. Residential sales fell to 90,715 units in the
April-June period (Q2) of calendar year (CY) 2026, from 96,285 units sold in
the same period last year, according to data from real estate consultancy firm
Anarock. This was a sequential drop of 11 per cent from the 101,675 housing
units sold in the January-March (Q1) period of this year.Among the seven Tier-I
markets, only Kolkata (10 per cent Y-o-Y), Hyderabad (2 per cent Y-o-Y), and
Bengaluru (1 per cent Y-o-Y) saw a rise in residential sales..
(Business Standard)
HDFC Bank appoints former
Finance Secretary Rajiv Kumar as part-time chairman for three years: HDFC Bank on Monday appointed
former Chief Election Commissioner and former Finance Secretary Rajiv Kumar as
its new part-time chairman, subject to the approval of the RBI. The
bank's board approved Kumar's appointment as part-time chairman for a period of
three years, effective from the date of RBI approval. The board also appointed
him as an Additional Independent Director for a four-year term beginning June
30, 2026, subject to shareholders' approval. Kumar succeeds as chairman after
the board cleared the appointment on the recommendation of its Governance,
Nomination and Remuneration Committee.
(Moneycontrol)
SBI raises $300 million via
3-year bond after RBI’s ECB push: State Bank of India (SBI) has
raised $300 million by issuing three-year senior unsecured floating-rate notes
through its London branch, becoming one of the first large state-owned lenders
to tap overseas debt markets after the Reserve Bank of India (RBI) announced
measures to make external commercial borrowings (ECBs) more attractive. In an
exchange filing on Monday, the country’s largest lender said it had concluded
the issuance of $300 million in senior unsecured floating-rate notes with a
three-year maturity at a coupon of the secured overnight financing rate (SOFR)
plus 100 basis points, payable quarterly in arrears.
(Mint)
Axis Bank and Bandhan Bank
announce finance chief exits: Axis Bank's CFO Puneet Sharma
and Bandhan Bank's CFO Rajeev Mantri both resigned within a day of each other,
each citing career growth reasons. Sharma exits on 31 August after over six
years at Axis, while Mantri will continue till 25 September.
(Mint)
Only one in four rural
households aware of credit scores: Nabard survey: Barely one in four rural
households in India understands what a credit score is and how it influences
access to loans, exposing a major financial literacy gap, despite efforts to
deepen formal credit penetration. A June 2026 survey by NABARD also found that
high borrowing costs remain the biggest concern in the rural credit market,
with around half of all households surveyed saying credit was too expensive.
Many respondents said lower borrowing costs, including through interest
subvention, could improve access to finance.
(Mint)
Canara Bank, Bank of
Baroda, Indian Bank pay Rs 7,023 cr dividend to govt for FY26: Three public sector banks,
Canara Bank, Bank of Baroda, and Indian Bank, collectively disbursed Rs 7,023
crore in dividends to the government for the 2025-26 fiscal year. Canara Bank
contributed Rs 2,397 crore, BoB Rs 2,811 crore, and Indian Bank Rs 1,815.05
crore. These payouts underscore the banks' robust financial performance and
their dedication to national development goals.
(Economic Times)
BSE announces change in
licensing requirements for mkt data products: BSE Ltd on Monday said it will
directly manage the licensing of its market data products for international
clients starting January 1, 2027, a function currently handled by Deutsche
Borse AG. International clients will continue to receive BSE Market Data
Products from BSE starting January 1, 2027, with no interruption in service,
the exchange said in a statement. BSE and Deutsche Borse AG are working
together to ensure a smooth transition throughout the migration process. There
will be no change for clients based out of India, who will continue to access
market data products directly from BSE.
(Business Standard)
NHAI cuts debt by 43% but
highway project awards hit seven-year low: The National Highways Authority of India (NHAI) has
reduced its debt by 43 per cent from its FY22 peak to below Rs.2 lakh crore,
marking a major milestone in its balance-sheet clean-up. However, this
financial turnaround has coincided with a sharp slowdown in highway project
awards, with recent brokerage reports pointing to virtually no new NHAI project
awards in April, after the pace of contract awards fell to a seven-year low in
FY26.
(Business Line)
Govt approves additional Rs.30,000
crore allocation to NIIF, taking total commitment to Rs.60,000 crore: In a move aimed at scaling up investments in
infrastructure and attracting larger pools of global institutional capital, the
Centre on Monday approved an additional Rs.30,000 crore allocation to the
National Investment and Infrastructure Fund (NIIF), taking its total capital
commitment to Rs.60,000 crore. The approval, based on a proposal by the
Department of Economic Affairs under the finance ministry, will support NIIF's
continued growth and enable it to raise larger funds, attract investors across
geographies, and deepen investments in key sectors of the economy, according to
a statement issued by NIIF on Monday.
(Mint)
Future growth
will depend on governance quality in public, private institutions: HDFC's
Parekh:
India's
future prosperity hinges on robust governance across public and private
sectors, emphasized HDFC Bank Chairman Deepak Parekh. He highlighted that
ongoing reforms are building a strong foundation for growth, with a call for
further banking sector consolidation. Parekh also stressed the immense funding
needs for domestic capacity building and the crucial role of self-reliance in a
shifting global landscape.
(Economic Times)
India to lift petrol,
diesel sale curbs for commercial buyers from July 1: India will lift restrictions
on the retail sale of petrol and diesel to commercial buyers from July 1,
ending temporary curbs imposed earlier this month to protect domestic fuel
availability during disruptions in global energy trade, according to a
government order issued on June 29. The curbs had barred
industrial, institutional and commercial consumers from buying petrol and
diesel from retail outlets. Diesel sales at fuel stations were also capped at
200 litres per customer or vehicle per day.
(Moneycontrol)
Brokers hold out relief
hope ahead of Reserve Bank of India's credit norms: With just a day left for the
Reserve Bank of India’s (RBI) new framework on bank credit to capital market
intermediaries to come into effect, brokers are hopeful of some relaxations.
According to sources, a four-member delegation from the broking community met
Union Finance Minister Nirmala Sitharaman and Secretary of the Department of
Economic Affairs (DEA) Anuradha Thakur on June 24, seeking relief. Brokers,
sources further said, have also met officials of SEBI, on the issue. The RBI’s
new framework, which was deferred from April 1, is scheduled to take effect
from July 1.
(Business Standard)
IFSCA proposes
unique KYC ID for seamless use of GIFT City entities: The International Financial Services
Centres Authority (IFSCA) has proposed measures to streamline know your
customer (KYC) processes, including assigning a unique identification number to
each client that can be used across regulated entities in GIFT-IFSC. According
to a consultation paper issued on June 26, KYC Registration Agencies (KRAs)
will generate this unique code for every client in their database. The
identifier will allow clients to use their verified KYC credentials for
onboarding and availing services with multiple regulated entities, removing
duplication in the process.
(Business Standard)
KISAN SARATHI PLATFORM
§ Kisan
Sarathi, launched in July 2021, is India’s largest integrated digital
agro-advisory platform. It provides timely, authentic, and multilingual
advisories to farmers. Farmers also get access to schemes, weather updates, and
expert consultations. It is a joint initiative of the Ministry of Electronics
& Information Technology and the Ministry of Agriculture and Farmers
Welfare. The Indian Agricultural Statistics Research Institute and the Digital
India Corporation implement the platform.
§ The
platform uses the Interactive Information Dissemination System (IIDS). IIDS
enables two-way communication between farmers and experts. It supports
lab-to-land transfer of agricultural knowledge.
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 : 94.3519
INR
/ 1 GBP : 124.7533
INR
/ 1 EUR : 107.5964
INR
/100 JPY: 58.3100
EQUITY INDEX
Sensex:
76728.37 (-372.10)
NIFTY:
23946.25 (-109.75)
Bnk NIFTY: 57727.35 (-449.70)
Historical
events: June 30 marks
monumental milestones in Indian and world history. In India, it is commemorated
as Hul Diwas, honoring the start of the 1855 Santhal rebellion against British
rule, and it is the 1917 passing anniversary of the "Grand Old Man of
India," Dadabhai Naoroji. Globally, it is known for the 1934 "Night
of the Long Knives" political purge in Germany and the 1908 mysterious
Tunguska meteorite explosion in Siberia.
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