BANKING REFORMS INDIA
Displeased by spotty obedience, Xi Jinping continues culling party leaders
A record number of officials have been expelled from the Chinese Communist Party during the recent plenum. Among those removed were senior military officials and party secretaries, indicating a significant ongoing purge. Xi Jinping's anti-corruption campaign remains aggressive as he attempts to assert control over the party. The plenum's focus highlights the challenges Xi faces in maintaining party governance amidst internal dissent.
Uncertainty is certain: India is resilient and will emerge stronger
Despite global uncertainty, India remains well placed to weather economic and market disruptions, supported by resilient growth, deeper domestic capital markets and rising private investment. Stronger institutions, infrastructure spending and emerging industries could further reinforce the country’s long-term prospects.
LTCG abolition may cost just Rs 40,000–50,000 crore, SBI estimates show
SBI Research estimates that abolishing long-term capital gains (LTCG) tax would cost the government just Rs 40,000–50,000 crore in FY27, far below the Rs 1.3 lakh crore collected in FY25. Weaker stock market returns and sustained foreign investor outflows have significantly reduced expected collections, suggesting the move may not derail the government's fiscal consolidation plans.
With G-sec yields rising, countries have no alternative but to increase their bullion holdings
In India yield on T-year G secs has increased by 0.4 percentage points over the same period. Unfortunately, governments are confronting these higher borrowing costs precisely at a time when debt is elevated, with global public debt expected to exceed 100% of GDP by 2030, a level last reached in the immediate aftermath of WW2.
GST collections jump 22.9% to Rs 2.31 lakh crore in October as festive demand beats high inflation and interest rates
India's GST collections in October reached ₹2.31 lakh crore, reflecting a 22.9% year-on-year increase. Strong consumption trends are indicated by rising passenger car sales and record digital payments. Power consumption also surged nearly 22% compared to last year, further emphasizing economic strength. Despite a high inflation rate of 5.5%, demand has remained robust, supporting growth forecasts. Analysts suggest this growth aligns with leading indicators of a consumption-driven economy.
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Banks seek microloan guarantee extension
IDFC First Bank and small finance banks such as AU, Jana and Suryoday were among the biggest users of the scheme to reduce credit risk. They have set aside the guarantee fee for the current fiscal year, expecting the government to reopen the window soon, people aware of the matter said.
Sitharaman says NDA revived IDBI Bank after UPA-era bad loan crisis
In response to Rahul Gandhi's opposition to IDBI Bank's privatisation, Nirmala Sitharaman stressed the successful recovery of the bank thanks to the NDA government's strategies. She pointed to the previous UPA government's fiscal mismanagement, which caused notable losses. Sitharaman also discussed the reviewed valuation process for the stake sale, criticising Gandhi for his attempts to politicize banking matters and the undue stress placed on bank staff during earlier administrations.
See data centres less as energy-sucking private warehouses, and more as quasi-public utilities
We need data centres. They run far more than ChatGPT. Search, banking, streaming, social networks, cloud software, government services, hospitals and almost every company's digital operations depend on them. AI simply raises the requirement dramatically. Google says its Vizag hub will provide new subsea connectivity for India. IEA says electricity use by AI-focused data centres jumped 50% in 2025. A country without serious compute infrastructure risks becoming a consumer, rather than a producer, of the AI revolution.
Govt sets up banking committee under Suresh N Patel to chart reforms for Viksit Bharat
The government on Friday constituted a High Level Committee on Banking for Viksit Bharat, appointing former Central Vigilance Commissioner Suresh N Patel as its chairman. RBI Deputy Governor Shirish Chandra Murmu, former Indian Bank MD and CEO Padmaja Chunduru and former RBI Deputy Governor N S Vishwanathan are among its members.
From Patna to Kanpur, can an emerging market fix dirty, broken cities?
Patna is set to become the first municipality in Bihar to issue municipal bonds, raising Rs 200 crore for urban infrastructure. This move highlights the ongoing need for investment in India's urban infrastructure amid challenges like urban flooding and sanitation. Other cities like Kanpur are also expected to follow with their own bond issues soon. However, many municipalities still struggle with reliable revenue sources needed for debt repayment.
Government should support both job-creating and frontier industries: EAC-PM chairman Dev
S Mahendra Dev highlighted the importance of supporting job-creating and frontier industries for future economic growth. He mentioned that sectors like textiles and technology can significantly enhance India's industrial landscape. The need for improved competitiveness and product quality in various firms was also emphasised. Furthermore, land availability and global supply chain shifts present unique opportunities for India. Overall, addressing these challenges is crucial for the country's industrial transformation ahead.
IIP growth eases to 4-month low in September as mining output contracts
September witnessed a decline in India's factory output growth, falling to 6.7%, the lowest rate observed in four months. The drop is largely linked to a high base effect and decreased mining activity. Despite this, manufacturing output surged by 7.6% compared to the previous year, while electricity generation also grew, spurred by robust demand even with insufficient rainfall. Economists anticipate GDP growth to surpass 7% for the July-September period.
These 7 private and public banking stocks have an upside of up to 27% in one year, according to analysts
If interest rates stay high, and there are signs of a slowdown, banks that depend on retail deposits are the ones to watch carefully. That is where the strain of a slowing economy and the high cost of money are likely to show up first. Check out Stock Reports Plus, powered by Refinitiv, for price targets of over 4,000 listed stocks along with detailed company analysis focusing on five key components, earnings, fundamentals, relative valuation, risk, and price momentum, to generate standardised scores. SR+ Reports is a complimentary offering to ETPrime members.
India in striking distance of 8% growth as reforms boost economy: Shaktikanta Das
Das said the BFSI sector has a crucial role to play in India's journey from a lower-middle-income economy to a high-income economy, through its intermediation in allocation of financial resources. He said the sector would be required to support India's next-gen Digital Public Infrastructure (DPI), be the frontline of green and transition finance and become the catalyst for democratising financial inclusion to support this journey.
Regional rural banks to set up cybersecurity centres, develop threat intel
Regional rural banks are set to improve their cyber security through the establishment of cyber security operations centres. They will also develop capabilities for vulnerability assessments and incident response as part of the reform agenda. The Financial Stability and Development Council plans to enhance cyber security measures following previous ransomware attacks. New initiatives will include implementing enterprise data warehouse solutions for better data management and reporting.
Reinventing the pond: How this Bengal start-up is helping fish farmers battle climate and credit crisis
At a time when climate change is impacting world resources, including the aquatic system, Jalpaiguri’s Essential Aquatech is working to empower smallholder fish farmers by turning data into actionable insights and measures.
India hosts CIML meet for first time; Khare pushes for globally harmonised measurement norms
India is hosting the 61st meeting of the International Committee of Legal Metrology, which focuses on global measurement standards. Consumer Affairs Secretary Nidhi Khare highlighted the importance of accurate measurements for fair trade and consumer confidence.
FCNR(B) scheme has bought India 3-5 years, but $170 billion repayment cliff looms: Uday Kotak
Uday Kotak has described India’s $130-billion-plus FCNR(B) mobilisation as a “strong insurance policy” against global shocks, but warned that repayments including interest could reach $160-170 billion over the next three to five years. He said the buffer gives India time to strengthen its economy, but should not substitute for structural reforms, investment in technology and efforts to improve domestic competitiveness.
Insurance commission: IRDAI extends time for feedback to October 31
The regulator is engaging with different stakeholder groups and has not reached a conclusion on the proposals, IRDAI chairman Ajay Seth had said recently. The objective is to move towards a more efficient regime without disrupting existing businesses or livelihoods. Some stakeholders have sought a longer transition period, while others have raised concerns about low-ticket policies, Seth had said. Larger insurers, smaller companies and new entrants have different concerns, as do various categories of insurance distributors.
AI driven cyberattacks pose growing threat to capital markets, warns NSE's Ashish Chauhan
During the ANMI convention in Mumbai, Ashish Kumar Chauhan stressed the urgent need to address AI-driven cyber risks threatening the financial sector. He urged collaboration among market players to build a strong defense against such advanced threats. Chauhan also highlighted the necessity of regulatory reforms to safeguard market integrity and investor confidence, noting the impressive growth of India's capital markets, which now boast a market capitalization that surpasses banking credit.
Target reached, but asset monetisation to continue: DIPAM secretary Arunish Chawla
"We have already identified a cluster of 10 national highways, which will provide the underlying capital asset. So, the second public InvITs is in the works and hopefully before the close of this financial year, it will also come to fruition," Chawla said. "We are also bringing down the equity (stake) in nationalised banks gradually to the minimum public shareholding norm of 75%, that is part of the mandate that we have to share the wealth with the people and also in line with regulations...we are moving ahead on that path."
The age-old business of liberation & salvation
Moksa, or spiritual investment, mirrors historical practices like indulgences sold by the Church five centuries ago. Islamic finance offers similar concepts, rebranding interest-based transactions while still capitalizing on profit. In India, wealth managers curate portfolios aligned with moral principles while sidelining ethical considerations about labor. Temple towns, including Tirupati, create systems where money enhances access to religious experiences for the wealthy.
FSDC stresses on vigilance, reforms amid global uncertainty & AI boom
Finance minister Nirmala Sitharaman led an important session of the Financial Stability and Development Council, focusing on maintaining financial stability amidst looming geopolitical tensions and fluctuating global bond yields. Key topics included fostering a robust domestic investment climate, ensuring effective capital movement for reform, and addressing cybersecurity needs within the financial sector.
From Dhirubhai to Akash Ambani, Reliance made stocks popular with Indians
Jio Platforms’ IPO is putting the Ambani family’s relationship with India’s retail investors on a new footing, almost five decades after Dhirubhai Ambani took Reliance Textile Industries public in 1977. The Rs 30,213-crore issue was fully subscribed within two hours of opening, but Jio’s long-term success as a listed company will depend on whether it can turn its massive telecom and digital reach into sustained earnings growth and investor returns.
Ex-IMF Director KV Subramanian dismisses Pakistan's global financial leadership claim
Krishnamurthy V Subramanian has criticized Pakistan's claim of returning to global financial leadership. He clarified that the IMF and World Bank chair is ceremonial and rotates annually among member countries. Pakistan is set to assume this position for the first time since 1953 in 2027. The country's economy has been dependent on loans from the IMF to address financial challenges.
Nirmala Sitharaman pitches for public, private capital to build financially sustainable cities
Finance Minister Nirmala Sitharaman highlighted the importance of creating sustainably investable cities in India. She proposed a combination of public investment alongside private capital to achieve these goals. Various urban development initiatives have been established to support this approach effectively. The Urban Challenge Fund aims to improve municipal finances and is pivotal for project preparation. Overall, the strategies discussed will enhance urban planning and infrastructure development throughout the country.
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