17 July 2026
Bankopedia Banking Digest — 2026-07-17 #111
- #1economic_timesneutral
RBI Seals Stressed Asset Sale Loophole
The Reserve Bank of India has amended its Resolution of Stressed Assets Directions, 2025, barring banks and non-banking financial companies from selling stress-acquired immovable assets back to defaulting borrowers or their related parties. The new rules, effective October 1, 2026, apply to commercial banks, small finance banks, and NBFCs, and restrict such acquisitions to exposures already classified as non-performing assets.
RBI prohibits lenders from reselling stress-acquired assets to defaulting borrowers, effective October 2026.
npa_resolutionregulationbanking_supervision - #2economic_timesneutral
GIFT Fund Tax Disclosure Leaves Investors Confused
Conflicting guidance from fund houses Parag Parikh and DSP has left investors uncertain whether holdings in GIFT City global funds must be declared as foreign assets in income tax returns. Tax professionals remain divided, citing a regulatory ambiguity since GIFT City funds are Indian tax residents yet invest in foreign securities.
No regulatory clarity exists on whether GIFT City fund investments require foreign asset disclosure in ITR.
capital_marketsfinancial_inclusion - #3economic_timesneutral
HPSCB Undergoes Five-Day Core Banking Migration
Himachal Pradesh State Cooperative Bank will suspend all digital and branch banking services from July 17 to July 22 to migrate to the Finacle Core Banking Solution version 10.2.25. The upgrade is part of the National Bank for Agriculture and Rural Development's Umbrella Project for cooperative bank core banking implementation.
HPSCB suspends all banking services for five days to migrate to Finacle CBS under NABARD's umbrella project.
digital_bankingbanking_supervision - #4hindu_businesslineneutral
IDBI Bank: Six Decades Toward Privatisation
IDBI Bank, created in 1964 as an apex development finance institution under RBI, has endured a decades-long identity crisis — transitioning from industrial lender to commercial bank before nearly collapsing and being rescued by insurer LIC. Six decades on, the bank's ownership remains contested as privatisation efforts inch toward a potential foreign acquirer.
IDBI Bank's six-decade journey from development lender to privatisation candidate reflects India's shifting financial architecture.
banking_supervisionregulation - #5economic_timesneutral
Moody's Flags 2.5% Global Growth Slowdown
Moody's Analytics warns global growth will slow to 2.5%, weighed down by geopolitical conflicts, trade disruptions, and persistent inflation, while noting India will also lose economic momentum despite remaining among the fastest-growing major economies. The report identifies artificial intelligence investment as the primary buffer against a steeper global downturn.
Global growth slows to 2.5%; AI investment is the key cushion preventing a sharper downturn.
economy_macro - #6economic_timesneutral
India Shifts Procurement Indexation from WPI to PPI
The Indian government has directed ministries to replace the Wholesale Price Index (WPI) with the Producer Price Index (PPI) in price escalation clauses of all future public procurement contracts. The change, communicated by the Department of Expenditure on July 10, applies prospectively and covers sectors such as roads, railways, defence, and power.
India mandates PPI over WPI for future government procurement price escalation clauses, effective immediately.
economy_macro - #7financial_expressneutral
SEBI Unified Ad Code Reshapes Financial Services Marketing
SEBI's proposed Common Advertisement Code (CAC) aims to consolidate six separate advertising frameworks covering brokers, mutual funds, investment advisors, and other intermediaries into a single unified regime. Key changes include restricting celebrity endorsements to brand-level use with prior approval, replacing pre-clearance of routine ads with 24-hour post-issuance reporting, and explicitly banning dark patterns and misleading testimonials.
SEBI's unified ad code consolidates six frameworks, banning dark patterns and restricting celebrity endorsements across financial services.
regulationcapital_markets - #8economic_timespositive
Insurers Push IRDAI to Broaden Unlisted Investment Capacity
Private insurers are urging the Insurance Regulatory and Development Authority of India (IRDAI) to calculate the proposed 5% unlisted investment limit on total shareholders' funds rather than only surplus above solvency requirements, which would dramatically expand deployment capacity. Industry estimates suggest the change could raise the sector's investable capacity in private companies to nearly ₹10,000 crore from under ₹1,500 crore under current rules.
Recalculating IRDAI's 5% limit on total funds could expand insurer investment in unlisted firms to ₹10,000 crore.
insurancecapital_markets - #9reserve_bank_of_indianeutral
RBI Money Markets Signal Sustained Liquidity Surplus
The Reserve Bank of India's money market data for July 15, 2026 shows overnight segment volumes of ₹6,63,371 crore at a weighted average rate of 5.14%, with the bulk transacted through Triparty Repo. Net liquidity was absorbed at ₹1,40,768 crore, reflecting surplus conditions, with the Standing Deposit Facility (SDF) drawing ₹1,46,366 crore overnight at 5.00%.
RBI absorbed net ₹1,40,768 crore liquidity on July 15, signalling persistent surplus in the banking system.
monetary_policycredit_markets - #10hindu_businesslinepositive
South Indian Bank Delivers Steady Q1 FY27 Profit Growth
South Indian Bank reported a 17% year-on-year rise in net profit to ₹378 crore for Q1 FY27, driven by quality asset acquisition across corporate lending, auto loans, and gold loans. Retail deposits grew 14% to ₹1,24,306 crore, while CASA expanded 14.61%, underpinned by a 16.51% surge in savings bank balances.
South Indian Bank posts ₹378 crore net profit in Q1 FY27, up 17% year-on-year on quality credit growth.
corporate_financecredit_markets - #11hindu_businesslinepositive
Exim Bank Posts Record Profit, Pays Dividend
Exim Bank of India handed a ₹428 crore dividend cheque to Finance Minister Nirmala Sitharaman, representing 10% of its FY26 net profit of ₹4,273 crore. The state-owned trade finance lender posted 32% net profit growth for the year, reflecting strong momentum in supporting India's international trade objectives.
Exim Bank delivers ₹428 crore dividend to government after 32% net profit surge in FY26.
corporate_financebanking_supervision - #12hindu_businesslineneutral
Indian Corporates Rethink Forex Strategy Amid Rupee Slide
Citigroup reports that Indian corporate clients, anticipating sustained rupee depreciation in line with interest-rate differentials, are shifting toward exotic, non-leveraged option structures to hedge currency risk. The strategic pivot comes as the rupee has weakened approximately 11% against the dollar over the past year, making it the worst-performing Asian currency in the period.
Indian corporates pivot to exotic forex hedging structures as rupee weakens 11% against the dollar.
forexcapital_markets - #13financial_expresspositive
Digital Fund Houses Lead Indian Shareholder Activism Surge
Mutual fund dissent on Indian corporate resolutions reached a record 13.1% in FY26, up sharply from 2.5% five years ago, with smaller digital-first fund houses such as Groww and Angel One leading shareholder activism. Larger fund houses including SBI Mutual Fund and ICICI Prudential Mutual Fund maintained dissent rates well below 3.3%, highlighting a clear divide in governance assertiveness.
Mutual fund votes against corporate resolutions hit a record 13.1% in FY26, led by digital-first managers.
capital_marketscorporate_finance - #14financial_expresspositive
India's EV Market Transitions From Niche to Mainstream
Global electric vehicle sales exceeded 20 million units in 2025, accounting for more than one in five cars sold worldwide, as decarbonisation policies accelerate mainstream adoption. India's electric vehicle market, while nascent, is gaining traction across two-wheelers, passenger vehicles and commercial fleets, supported by favourable policy and declining battery costs.
Global EV sales surpassed 20 million units in 2025, with India emerging as a key growth market.
capital_markets - #15hindu_businesslineneutral
Cost Inflation Index Raised, Narrowing Capital Gains Relief
The Central Board of Direct Taxes has raised the Cost Inflation Index for FY27 to 384 from 376 in FY26, a 2.12% increase that will marginally reduce long-term capital gains tax liability on eligible assets. The index retains relevance primarily for land or buildings acquired before July 23, 2024, following the withdrawal of broader indexation benefits under the Finance Act, 2024.
Cost Inflation Index rises to 384 for FY27, offering limited capital gains tax relief on pre-July 2024 property.
capital_marketseconomy_macro