Issue: 1284
·
Over 5 crore ITRs filed for AY 2026-27 ahead of July 31
deadline.
·
SEBI agrees to settle NSE co-location, dark fibre cases for
Rs 1,491 crore.
·
HDFC Bank spends Rs 1,316 crore on CSR in FY26, expands rural
footprint.
·
RBI allows banks to link bulk deposit rates to liquidity
profile under LCR.
·
US GDP grows less-than-expected at 1.5% despite strong
consumer spending.
·
US grants Amazon's Zoox first approval for
steering-wheel-free robotaxis.
·
RBI allows banks to link bulk deposit rates to liquidity
profile.
·
Flipkart pushes deeper into consumer lending with Pay Later
service.
Dividend windfall,
disinvestment receipts give fiscal cushion: Higher-than-expected dividend and surplus
payouts from the Reserve Bank of India and state-run financial institutions
have provided the much-needed fiscal leeway to the Centre. Total collections
under this head have outpaced the full-year Budget Estimate of Rs.3.19 lakh
crore, possibly blunting the impact of an anticipated moderation in direct tax
buoyancy. Budget Estimates (BE) for ‘dividend/surplus of the
Reserve Bank of India, nationalised banks and financial institutions have been
pegged at Rs.3.16 lakh crore, which is nearly 47 per cent of non-tax revenue of
over Rs.6.66 lakh crore. As of July 30, total collections under the said head
crossed over Rs.3.24 lakh crore after Life Insurance Corporation of India (LIC)
gave a dividend of over Rs.12,000 crore for FY26.
(Business Line)
India’s gold demand falls
6% as volatile prices turn away consumers: With jewellery demand dropping
to the second lowest in the second quarter since 2000, India’s gold demand in
the June quarter declined by 6 per cent to 131 tonnes. This was because
volatile prices forced consumers to postpone their jewellery purchases. However,
demand for in terms of value was up 50 per cent to Rs.1.98 lakh crore against Rs.1.32
lakh crore logged in the same period last year, according to the Gold Demand
Trend report released by World Gold Council on Thursday. Jewellery demand
plunged 15 per cent to 75 tonnes against 89 tonnes.
(Business Line)
Gold climbs as weaker
dollar, easing inflation lift bullion prices: Gold rose on Thursday as the
U.S. dollar weakened and inflation eased, with traders dialing back bets on
interest rate hikes a ?day after Federal Reserve Chair Kevin Warsh offered
little clarity on ?policy. Spot gold was up 1% at $4,104.59 per ounce by 1:40
p.m. EDT (1740 GMT). ?U.S. gold futures for August delivery gained 1.6% to
settle at $4,160.60. The dollar fell 0.8% as the yen strengthened, while
traders remained on alert for possible intervention by Japanese authorities to
prop up the battered currency. A weaker dollar makes greenback-priced bullion
more affordable for buyers overseas.
(Business Standard)
SFBs post healthy Q1 on
robust NIM, better asset quality: Small finance banks (SFBs)
reported a healthy set of June quarter earnings, with strong loan growth and
lower credit costs driving a broad-based recovery in profitability. Asset quality
also improved as stress in the microfinance portfolio eased. The improvement in
earnings was broad-based. According to data from Capitaline, AU Small Finance
Bank remained the largest profit contributor, reporting a 37% year-on-year
(YoY) rise in net profit to Rs 796 crore. Ujjivan Small Finance Bank posted the
strongest growth, with profit more than tripling to Rs 317 crore, while
Suryoday SFB’s net profit more than doubled to Rs 75 crore. Equitas Small
Finance Bank returned to profit after reporting a loss a year earlier, while
Jana SFB and Capital Small Finance Bank also posted double-digit growth in net
profit.
(Financial Express)
Mid-tier private banks rake
in more low-cost deposits: Select mid-sized private banks
outperformed their larger rivals in mobilising low-cost deposits during the
June quarter, with IDFC First Bank, Bandhan Bank and Federal Bank reporting a
sharp year-on-year improvement in their current and savings account (Casa)
ratios. "Our Casa was only 10%
initially. For the first three or four years of taking over management of this
bank, we slowed down the loan book and focused on building the Casa ratio to
50%," V Vaidyanathan, MD and CEO, IDFC First Bank, told ET in an
interview. "If we had kept growing the loan book, we could never have
addressed structural issues like this. I believe in playing the long game in
every format."
(Economic Times)
RBI gives banks more time
to implement bulk deposit rate norms, deadline now Oct 1: Banks now have until October 1
to implement new differential interest rate rules. These norms allow varied
rates on bulk deposits considering liquidity coverage ratios. The Reserve Bank
of India has extended the implementation deadline after bank feedback. Rates
for deposits under Rs 3 crore remain outside these new stipulations. Banks must
now disclose bulk deposit rates online by 10:00 am daily.
(Economic Times)
Govt tweaks MFI credit
guarantee rules to boost scheme utilisation: In a bid to increase
utilisation of the credit guarantee scheme for microfinance institutions
(MFIs), the National Credit Guarantee Trustee Company Ltd (NCGTC) has decided
to club a minimum percentage of loans that needs to be extended to small and
medium size MFIs. According to the new norms, banks need to lend at least 15
per cent of their total corpus of Rs.20,000 crore to small- and mid-size MFIs,
as compared with 5 per cent and 10 per cent earlier. The maximum amount of loan
which can be sanctioned by banks is capped at 20 per cent of Assets under
Management (AUM) of NBFC-MFIs and MFIs, subject to maximum of Rs.100 crore to
small-size, Rs.200 crore to medium-size and Rs.1,000 crore to large-size micro
lenders.
(Business Standard)
RBI allows banks to link
bulk deposit rates to liquidity profile: The Reserve Bank of India
(RBI) has given banks greater flexibility in pricing bulk deposits, allowing
them to offer differential interest rates based on the liquidity
characteristics of such deposits under the LCR framework. The central bank,
however, has retained the broader principle of uniformity in deposit pricing. Interest
rates offered on deposits, including bulk deposits, must be uniform across all
branches and customers, and banks cannot discriminate between deposits of a
similar amount accepted on the same date at any of their offices, the central
bank said. “A bank shall have the freedom to offer differential interest rate
on bulk deposits, by considering the differential run-off rate applicable to
deposits or unsecured wholesale funding under the LCR framework,” it said.
(Economic Times)
Zepto pauses IPO, seeks Rs
1,000 crore pre-IPO funding: Quick commerce firm Zepto has put its initial
public offering (IPO) plans on hold after domestic institutional investors
balked at the valuation it was seeking, prompting the company to instead pursue
a pre-IPO fund raise of more than Rs 1,000 crore ($105 million) from existing
investors, sources said. The company is in discussions to raise the capital at
a valuation of around $4-4.2 billion, well above the $2.5-3 billion that
domestic mutual funds were willing to ascribe to the company for the IPO,
sources said. Zepto was last valued at about $7 billion in a private funding
round around nine months ago.
(Financial Express)
Adani rules out airline
plans, says June letter backed regional aviation: Adani Group has clarified that its June
representation to the government was intended to strengthen India’s regional
aviation ecosystem and should not be interpreted as a precursor to launching an
airline, dismissing recent media reports that suggested the conglomerate was
exploring an aviation venture. Speaking to analysts after Adani Enterprises’ Q1
FY27 earnings on Tuesday, Group CFO Jugeshinder Singh said the company’s
interest in regional aviation stems from its position as one of India’s largest
airport operators and its belief that stronger regional connectivity is essential
for the long-term growth of the country’s airport network.
(Financial Express)
Microsoft’s $450
billion jump is biggest in stock market history: Microsoft Corp. made market history on
Thursday, adding nearly half a trillion dollars to its value, the most by any
stock in a single day. Shares of the Redmond, Washington-based
company soared 16%, their biggest gain since October 2008, to add roughly $450
billion to its market capitalization. The move eclipses Nvidia Corp.’s $440
billion addition, following President Donald Trump’s announcement of a 90-day
tariff pause last year, as the biggest ever, according to data compiled by
Bloomberg.
(Moneycontrol)
India rises from 82nd to
57th in global rankings, in structural and pro-competitive reforms: India has advanced 25 places
in the global rankings, from 82nd to 57th, reflecting significant progress in
structural and pro-competitive reforms between 2010 and 2023, according to the
report India's Next Growth Frontier: Reducing Anti-Competitive Market
Distortions to Build on India's 2010–2023 Reform Progress, released by the
Competere Foundation. The report assesses India's performance under its Market
Distortions Performance Index, examining the country's reform trajectory
between 2010 and 2023, and attributes the improvement to sustained efforts in
reducing market distortions and strengthening competitiveness. The report was
launched during a discussion on "India's Reform Trajectory, Market
Distortions and the Next Frontier for Growth and Competitiveness",
organised by the Centre for Trade and Investment Law (CTIL), Indian Institute
of Foreign Trade (IIFT), New Delhi, in collaboration with the Competere
Foundation for Trade and Competition Policy, at the India Habitat Centre, New
Delhi.
(PiB)
DFS Launches Protection
& Indemnity Insurance Product under Bharat Maritime Insurance Pool (BMIP): he Department of Financial Services, Ministry
of Finance held an event chaired by Secretary, DFS today in New Delhi to launch
India’s first sovereign-backed Protection & Indemnity insurance product under
Bharat Maritime Insurance Pool (BMIP), designed by the New India Assurance
Company Limited. The Secretary, DFS handed over the first P&I
policy document to Shipping Corporation of India Limited issued by the New
India Assurance Company Limited under BMIP, providing financial protection
against third party liabilities including Crew & Cargo liability, pollution
liability, wreck removal, 24x7 port correspondent network with indemnity limit
upto USD 1.5 billion, through the combined capacity of the pool.
(PiB)
State insurers quote low
premiums to win NPCIL nuke insurance cover: Oriental Insurance and United India, both with
solvency ratios significantly below the regulatory minimum, have undercut each
other to win a nuclear insurance contract where bids to cover the unusual risks
dropped to nearly a third of the budgeted premium, people familiar with the offers
told ET. Nuclear Power Corp of India (NPCIL) had budgeted Rs
30.13 crore, including taxes, for insuring Tarapur units 3 and 4 under a
one-year property damage programme, said sources. The reverse auction for
covering the risk, however, saw bids fall dramatically, with Oriental Insurance
quoting Rs 10 crore, United India Insurance Rs 10.98 crore, and New India
Assurance Rs 28.9 crore, they added.
(Economic Times)
YEARLY RENEWABLE TERM (YRT)
§ Yearly
renewable term is a one-year temporary life insurance policy that automatically
continues each year at the same death benefit. When someone buys a YRT
insurance policy, the premium quoted is for one year of coverage based on the
insured's current age. Premiums then increase annually to cover the increased
risk of death as the insured ages while keeping their policy in-force.
§ Yearly
renewable term life insurance, or YRT, provides one year of insurance that pays
a tax-free death benefit to the policy's beneficiaries if the insured dies
during that 12-month period. Each year (unless the policy owner cancels the
coverage or stops paying premiums), the YRT renews at the same death benefit
but charges a higher premium that reflects the insured's higher age. This type
of life insurance is also called increasing premium term insurance or annual
renewal term insurance.
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 : 95.7327
INR
/ 1 GBP : 127.7116
INR
/ 1 EUR : 109.5817
INR
/100 JPY: 58.5200
EQUITY INDEX
Sensex:
77928.15 (+273.55)
NIFTY:
24317.15 (+66.95)
Bnk NIFTY: 57147.50 (+58.40)
Historical events: July 31 has
witnessed several significant events in both Indian and world history. In 1940,
Indian revolutionary Shaheed Udham Singh was executed in London for avenging
the Jallianwala Bagh massacre by assassinating Michael O'Dwyer, and the day is
observed as his martyrdom day in India. Internationally, Christopher Columbus
discovered the island of Trinidad in 1498, the Third Battle of Ypres
(Passchendaele) began during World War I in 1917, the Apollo 15 mission made
history in 1971 by using the first Lunar Roving Vehicle on the Moon.
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