Issue: 1130
Donald Trump picks Kevin Warsh as new Federal Reserve chair: US President Donald Trump on Friday said he had chosen
former Federal Reserve Governor Kevin Warsh to head the U.S. central bank. A
New York native and former mergers and acquisitions banker at Morgan Stanley,
Warsh has recently sharpened his criticism of the Fed, aligning with several
policy positions advocated by Trump and his administration. Warsh
is seen as a comparatively moderate figure, as one of the less radical choices
and notably more cautious about deploying heavy monetary stimulus despite his
preference for lower rates.
(Moneycontrol)
India, World Bank Group unveil $50 billion plan to power jobs
and private investment for Viksit Bharat: India and the World Bank Group (WBG) on
January 30 launched a new Country Partnership Framework (CPF) to steer the
country’s growth ambitions toward its Viksit Bharat vision — India’s goal of
becoming a developed economy by 2047. The five-year roadmap focuses squarely on
generating jobs and crowding in private investment, with $8-10 billion in
annual support from the Bank Group. With over 12 million young Indians entering
the labor market annually, the CPF puts private sector-led job creation at the
center. The World Bank Group’s global jobs strategy — built on investing in
infrastructure, enabling a business-friendly environment, and scaling
risk-mitigation tools — will be tailored to India’s context across five
priority sectors: infrastructure and energy, agribusiness, healthcare, tourism,
and value-added manufacturing.
(Business Today)
Fiscal deficit hits 54.5% of full-year target in April–December: India’s ?fiscal deficit in April-December was ??8.6
lakh crore or 54.5% of the estimate for the financial year ending March 31,
government data ?showed on Friday. Net tax receipts at 19.4 trillion rupees, ?up ?from 18.4 trillion rupees collected in the same
period a year ?ago. Non-tax ?revenue at 5.4 trillion rupees compared ?with 4.5
trillion rupees a year ago. Total government expenditure at 33.8 trillion
rupees compared with 32.3 trillion rupees a year earlier. Capital expenditure,
or ?spending on building physical infrastructure, at
?7.9 trillion rupees against ?6.9 trillion rupees a year ago.
(Business Line)
NSE gets key approval for its IPO, settlement to follow in due
course: NSE’s plans for filing of Initial Public
Offer (IPO) has got the green signal from market regulator Securities and
Exchange Board of India (SEBI). SEBI’s department regulating stock
exchanges and other market infrastructure institutions (MIIs) has issued a No
Objection Certificate (NOC) to apply for IPO. As per the norms, the sectoral
regulator’s approval is required for companies to apply before IPOs, in this
case the approval of Market Regulation Department (MRD) was required.
(Moneycontrol)
Government sets February 5 deadline for financial bids for IDBI: India's government has set a
February 5 deadline for financial bids to divest a majority stake in IDBI Bank,
marking a significant step in the privatization process. Eligible bidders,
including Fairfax Financial Holdings and Emirates NBD, are now in the final
phase. The government and LIC aim to sell 60.7% of the lender, with the
successful bidder gaining naming rights.
(Economic Times)
Citigroup taps Ankur Khurana to lead India commercial banking
business: Citigroup
Inc.’s India operations have appointed Ankur Khurana as head of commercial
banking, strengthening the Wall Street lender’s focus on India’s fast-growing mid-market
corporate segment, Bloomberg reported citing people familiar with the
development. Khurana joins Citigroup after a stint at Standard Chartered Plc,
where she served as co-head of coverage for India and South Asia. Khurana
brings more than 20 years of experience across corporate and commercial
banking.
(Economic Times)
India's foreign exchange reserves hit record high of $709
billion: India’s foreign exchange reserves rose to a
record high of $709.41 billion in the week ended January 23, latest data from
the Reserve Bank of India (RBI) showed. The total reserves increased by $8
billion during the week on the back of a rise in gold reserves and foreign
currency assets. It took nearly 17 months for foreign exchange reserves to
scale a new peak, as the previous high of $705 billion was recorded in the week
ended September 27, 2024. The central bank has intervened aggressively in the
foreign exchange market over the past one-and-a-half years as the rupee has
come under pressure due to global factors.
(Business Standard)
Bank of Baroda Q3 net profit up 4.5% on lower provisioning, margin pressure: Bank of Baroda’s net profit rose 4.5 per cent YoY to ?5,055 crore in the third quarter of financial year 2026 (Q3 FY26), aided by lower provisioning and a marginal rise in non-interest income. Net interest income (NII) was flat at ?11,800 crore in the quarter ended December 2025, compared with ?11,786 crore a year ago. Asset quality improved during the quarter, with gross NPAs declining to 2.04 per cent in December 2025 from 2.43 per cent a year earlier. Net NPAs fell to 0.57 per cent from 0.59 per cent in December 2024.
(Business Standard)
Govt finalises PLI 2.0 for self-sustaining drone ecosystem: The Centre has finalised a
Production-Linked Incentive (PLI) 2.0 scheme aimed at developing a
self-sustaining drone ecosystem in the country. The proposed scheme is expected
to incentivise domestic manufacturing of drones and their key components. The
basic proposal for the PLI for drones has moved from the Civil Aviation
Ministry to the Finance Ministry and the expectation is that it would be
announced in the Union Budget for FY27, sources said.
(Business Line)
Bank credit growth moderates to 13%; deposit growth eases to
10.6%:
Bank credit
growth in the first fortnight of calendar year 2026 (January 15) slowed down to
13.1 per cent Y-o-Y and deposit growth during the same period also slowed down
to 10.6 per cent Y-o-Y, latest data from the Reserve Bank of India showed. In
the fortnight, credit contracted by ?1.88 trillion, while deposits contracted
by ?3.57 trillion. This comes after the last fortnight of calendar year 2025
(December 31) reported credit growth of 14.5 per cent Y-o-Y and deposit growth
of 12.7 per cent Y-o-Y.
(Business Standard)
Gold, silver ETFs log biggest single-day fall as prices crash
10-20%: Gold
and silver exchange traded funds (ETFs) in India witnessed their biggest
single-day decline on Friday as precious metal prices eased after a steep rally
in recent months. Nippon India gold ETF, the largest in the category, tumbled
10.1 per cent on the National Stock Exchange (NSE). This is the highest
single-day decline for the scheme which was launched in 2007. The HDFC and
ICICI Prudential gold ETFs, the other popular offerings, were down 8.8 per cent
and 9.5 per cent on the NSE, respectively. The fall in domestic ETFs followed
the selloff in precious metals globally on Friday.
(Business Standard)
World Bank to boost private jobs in India with $8-10 bn annual
lending: The
World Bank Group (WBG) on Friday announced a new Country Partnership Framework
(CPF) with India to help accelerate the country’s next phase of growth, with a
focus on private sector-led job creation and annual financing of $8-10 billion
over the next five years (FY26-FY31). This follows an earlier CPF implemented
between FY18 and FY25, under which the World Bank committed annual lending of
$6-7 billion. With around 12 million young people entering India’s labour
market each year, unlocking private investment in job-rich sectors is a central
priority for the country’s next phase of growth, the World Bank said in a
statement.
(Business Standard)
States utilise less than half of FY26 capex budget in Apr-Dec
period: After the first three quarters of 2025-26
(April-December), states have managed to spend just 45.8 per cent, or ?3.8
trillion, of their combined annual budgeted capital expenditure (capex) of
?8.35 trillion, according to an analysis of monthly accounts for 20 states
released by the Comptroller and Auditor General (CAG) of India. The subdued
pace of capital spending by states contrasts sharply with the Centre’s
performance during the same period. Central government capex reached 70.3 per
cent of its Budget Estimates (BE) in the first nine months of FY26, from April
to December, according to the latest data from the Controller General of
Accounts (CGA).
(Business Standard)
FOREIGN TRADE ZONE
·
A Foreign
Trade Zone (FTZ), also known as a free trade zone, is a designated area within
a country where goods can be imported, stored, processed, or manufactured, and
then re-exported, without being subject to customs duties or other regulations
until they enter the country's domestic market.
·
FTZs are geographically
defined areas within a country that are treated as if they are outside the
country's customs territory for the purpose of trade.
·
The primary goal of FTZs is to
encourage international trade and investment by providing businesses with a
duty-free environment for certain activities.
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 : 91.8983
INR /
1 GBP : 126.3834
INR /
1 EUR : 109.5661
INR
/100 JPY: 59.7200
EQUITY INDEX
Sensex: 82269.78 (-296.59)
NIFTY: 25320.65 (-98.25)
Bnk
NIFTY: 59610.45 (-347.40)
National Backward Day: January 31 is primarily recognized as National Backward Day, encouraging
fun, reversed routines, and is also celebrated as International Zebra Day to
raise awareness for the species.
Historical events: January 31 marks
significant milestones, including the 1948 funeral procession of Mahatma Gandhi
in India, the 1958 launch of the first US satellite Explorer 1, and the 2020 UK
departure from the EU. It is also known for the 1943 surrender of German forces
at Stalingrad, turning the tide of WWII, and the 1990 opening of the first
McDonald's in Moscow.
****Have a nice
Day****
Visit our website www.thebankingupdates.com
For Regular updates, Monthly e-magazines & Promotion
Study materials
CLICK HERE TO
JOIN OUR COMMUNITY TO GET DAILY UPDATES
Contact us: # 8261802533
Email: bankingupdates2020@gmail.com