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.