deposit mobilisation

The Indian rupee has fallen nearly 6% against the US dollar due to Middle East tensions, prompting the Reserve Bank of India to consider measures like interest rate hikes and attracting dollar inflows. Officials are exploring a foreign currency deposit scheme for NRIs and a potential sovereign dollar bond to stabilize the currency.

Despite global economic headwinds from Middle East turmoil, India's economy is projected for stable growth through FY26 and FY27, with SBI forecasting around 7.5% for FY26. Resilient domestic demand, strong credit expansion, and broad-based improvements in high-frequency indicators support this optimistic outlook, though external vulnerabilities like oil prices and currency movements remain key concerns.

The Indian rupee is facing significant pressure, weakening against the US dollar due to soaring crude oil prices driven by Middle East geopolitical tensions and persistent foreign fund outflows. Despite India's robust economic growth, the currency's slide continues as the Reserve Bank of India intervenes to curb volatility rather than target a specific exchange rate.

RBI is not alone in repatriating its gold reserves. Several central banks like France’s Banque de France, Germany’s Deutsche Bundesbank, Serbia’s National Bank have done the same - buy why?

Around 1.25 lakh Indian Haj pilgrims face a last-minute Rs 10,000 airfare hike due to rising jet fuel costs amid Middle East instability. Airlines initially sought a larger increase, but the government capped it, shifting the burden to pilgrims despite years of careful financial planning.

Record number of voters is cause for cheer, but concerns over why many of them voted linger

Bankers anticipate a slowdown in credit growth for FY27, following a robust FY26. Deposit mobilization is becoming a challenge, impacting bank margins. While credit demand is expected from retail, services, and SMEs, industrial lending is set for a gradual recovery. A funding gap is projected, potentially eased by relaxed liquidity norms.

West Bengal's Phase 2 assembly election campaign concluded with intense polarization, marked by high-decibel rallies and sharp political attacks. Prime Minister Modi's symbolic outreach and Mamata Banerjee's street-level campaigning defined competing narratives, while record Phase 1 turnout intensified voter mobilization efforts.

Credit growth outpaced deposit mobilisation through the current financial year, with incremental credit at Rs 25.3 lakh crore exceeding incremental deposits of Rs 24.3 lakh crore. As a result, the incremental credit-deposit ratio stood at 103.9%. Historically, an 80% credit-deposit ratio is seen as healthy as it factors in the 3% of bank deposits that have to be maintained as cash reserves (CRR) and 18% in liquid govt bonds (statutory liquidity ratio)

The anticipated consolidation of Thevar votes in southern districts has fragmented, with key leaders aligning with different parties. This political realignment occurs as AIADMK seeks to regain ground, while DMK strengthens its position by inducting expelled AIADMK leaders. The presence of new political entities and community votes further complicates the electoral landscape.

Indian banks face a growing funding gap as credit expansion outpaces deposit growth. Lenders are turning to certificates of deposit, a wholesale funding source, to meet loan demand. This shift reflects changing household savings patterns and strong credit appetite across various sectors. Banks are also reallocating capital from government securities to support lending activities.

Faced with deposit growth challenges, Canara Bank launched an internal campaign, tasking its 82,000 employees to mobilize deposits. This initiative, started in January 2024, resulted in the collection of Rs 16,700 crore in just ten weeks. The employee-led drive lowered the bank's credit-deposit ratio and reduced reliance on high-cost bulk deposits.

In a decisive move, Delhi Police are cracking down on social media accounts that have propagated falsehoods regarding a murder case in Uttam Nagar, amassing over Rs 35 lakh through deceitful narratives. They are targeting posts that incite outrage and dubious fundraising efforts, which even included QR codes for donations.