- Today is:
ET NEWS
Nykaa takes its beauty game global with UK launch
Banks seek to put Q1 heartbreak behind
Indian banks are cautiously optimistic about a recovery in their net interest margins (NIMs) in the latter half of the financial year, following a challenging start in the April-June quarter, news agency ANI reported on August 28 based on a recent report by S&P Global.India's banking sector, as a whole, had a mixed performance during the first quarter of FY26, with earnings dragged down by a sharp reduction in interest rates. The first quarter saw a notable decline in net income for four of the six major Indian banks, largely attributed to the fall in interest rates.It may be noted here that the RBI has implemented a total cut of 100 basis points to the benchmark interest rates since the beginning of 2025, aimed at fostering economic growth. This move has put pressure on banks' earnings, as they navigate a landscape of lower interest income.Among the major banks, State Bank of India (SBI) managed to report a net profit of Rs 21,201 crore, a year-on-year increase of 9.7%. ICICI Bank showed resilience with a 15.9% rise in profit after tax, reaching Rs 13,558 crore.In a marked contrast, other significant banks such as Bank of Baroda and Punjab National Bank, as well as private sector biggies like HDFC Bank and Axis Bank, saw declines in their net income during this period.The decline in margins was evident across the sector. SBI reported a NIM of 2.77%, down from 2.99% the previous year, while HDFC Bank's NIM fell to 3.94% from 4.06%. Punjab National Bank also faced challenges, with its NIM decreasing from 2.76% to 2.43%.These figures indicate a tightening environment for banks as they adjust to the new interest rate landscape.In a bid to bolster liquidity in the banking system, the RBI made a significant adjustment on June 6 by lowering the cash reserve ratio (CRR) by 100 basis points to 3.0%. This adjustment is expected to inject approximately Rs 2.5 lakh crore into the system by December, providing banks with additional resources to manage their operations and support lending activities.While some banks reported a slight deterioration in asset quality and increased provisioning for potential loan losses, analysts from S&P Global remain optimistic. They do not foresee a sharp rise in non-performing loans, which currently sit at multiyear lows, suggesting that the overall health of the banking sector may remain stable despite the pressures faced in the first quarter.
Hope to fine-tune India tax treaty: Mauritius min
CCTAX: Extend ITR deadline & fix AIS errors
India has a big beautiful bill too, but not about taxes
Vodafone Idea shares dive 11% in 2 sessions after govt rules out further relief on AGR dues
Vodafone Idea shares extended losses for the second straight session, falling 11.3% over two days to touch an intraday low of Rs 6.56 on Thursday. The decline comes after the government clarified that no additional relief will be considered for the financially stressed telecom operator with respect to its adjusted gross revenue (AGR) dues.The Department of Telecommunications (DoT) confirmed that, beyond the relief measures already extended, no fresh concessions are planned.Minister of State for Communications Chandra Sekhar Pemmasani said the government has already converted a significant portion of Vodafone Idea’s dues into equity, making it the single-largest shareholder, and there are no ongoing discussions for further changes.In March, the government converted dues worth Rs 36,950 crore into equity, following a similar step in 2023 when around a 33% stake was taken against dues worth Rs 16,000 crore.Despite these measures, Vodafone Idea has indicated in court filings that survival without government support remains uncertain.As of the end of the June 2025 quarter, Vodafone Idea’s AGR liability stood at approximately Rs 75,000 crore. The company is required to begin repayments in six equal installments after the moratorium ends on March 31, 2026.The looming repayment burden has heightened concerns among investors about the telco’s cash flow and ability to raise funds.Investor sentiment on Thursday was further weighed down by the absence of any fresh relief measures, with the investors taking a note of the significant liabilities that remain.Also read: IndiGo shares slide 5% as Gangwal family likely pares 3.1% stake via block deal(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
How Trump-Modi ties came undone, in 5 episodes
Def min on why India must prepare for conflicts
Export-oriented shrimp, textiles stocks slide up to 12% after Trump's 50% tariff takes effect
Shares of shrimp and textile exporters sank as much as 12% on Thursday after U.S. President Donald Trump’s 50% tariff on Indian imports came into force, eroding competitiveness and triggering a broad selloff in some of India’s most export-dependent companies.Shares of India’s leading shrimp exporters fell, with Avanti Feeds down 4% to Rs 614.05, Apex Frozen Foods plunging 11.6% to Rs 202.90, while Waterbase Ltd dropped 3.8% to Rs 47.Textile exporters were also hit. Gokaldas Exports lost 2.4%, Pearl Global fell 5.3%, and Kitex Garments, which derives 70% of sales from the U.S., slumped 5%, while KPR Mill shed 2.5%. Raymond Lifestyle, Welspun Living, and Trident posted smaller losses of 1–3%.Tariff shockTrump’s additional 25% levy took effect Wednesday, August 27, effectively raising import duties on Indian goods to as high as 50%. With markets shut for Ganesh Chaturthi, the full impact surfaced only in Thursday’s session. The rate is far higher than those imposed on Asian peers, as Bangladesh and Vietnam exporters face only 20%, undercutting India’s competitiveness in key categories such as apparel and seafood.Shrimp exporters are particularly exposed. The U.S. was India’s top seafood buyer in 2024–25, importing $2.7 billion worth, with frozen shrimp accounting for 92.5% of the basket, according to the Marine Products Export Development Authority. Avanti Feeds generated 77% of its quarterly revenue from North America, while Apex Frozen derived 53%.Analysts weigh inDr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, said the levies are likely to weigh on equities in the short run but may not spark panic.“The 50% tariff imposed on India which has already come into effect will weigh on market sentiments in the near-term. But the market is unlikely to panic since the market will view this high tariffs as a short-term aberration which will be resolved soon,” Vijayakumar said, pointing to U.S. Treasury Secretary Scott Bessant’s assurance that “at the end of the day India and U.S. will come together.”Beyond tariffs, Vijayakumar highlighted stretched valuations and weak earnings growth as more persistent concerns. In his view, export-oriented sectors may face near-term headwinds, while investors are likely to rotate into “fairly valued domestic consumption themes.” He suggested that shifting exposure from overheated small-caps to safer large-cap consumption plays could offer better protection.Wider economic falloutThe tariffs could shave up to 40 basis points off India’s FY26 growth, said Sakshi Gupta, Principal Economist at HDFC Bank. “The U.S. accounts for about 20–25% of India’s goods exports, and nearly half of that basket is now subject to a 50% tariff. This is a significant blow to export competitiveness,” Gupta told ET Now, warning of spillovers into jobs, investment, and sentiment.Gupta said labour-intensive sectors such as leather, footwear, and gems & jewellery are likely to be hit hardest, though pharmaceuticals, electronics, semiconductors, and petroleum products remain outside the tariff net.Also read | Why stock market is down today? Key factors behind the 600-point Sensex crash, Nifty50 below 24,550(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
India may halt shadow banks from duplicating biz
Rajan says India should reconsider Russian oil buys
Festive ecomm shopping to deliver ₹1L cr milestone
India’s online money gaming ban faces first challenge
How Trump’s team is lobbying against PM Modi
HDFC Bank shares dip 2% after 1.56 million shares change hands in block deal after bonus adjustment
Shares of HDFC Bank slipped 1.8% to their intraday low of Rs 955 on the BSE on Thursday after a large block deal saw 1.56 million shares change hands. The transaction came just a day after the bank’s stock price adjusted to reflect its recent 1:1 bonus share issuance, which had already taken effect on Tuesday.Block deals are typically high-value transactions involving a minimum quantity of shares executed between institutional investors or large stakeholders, often carried out through a separate trading window to reduce volatility in the open market.While details of the buyer and seller were not immediately available, such transactions can influence near-term stock movement given the large volumes involved.The decline in the stock follows a significant technical adjustment earlier this week, when HDFC Bank began trading ex-bonus after issuing one additional share for every share held. The move doubled the number of outstanding shares and reduced the stock price in proportion, without altering the bank’s overall market capitalisation or shareholder value.On Tuesday, the stock opened about 62% lower than the pre-bonus closing price, in line with the bonus ratio, and traded in the range of Rs 982.20–Rs 986.30. The adjustment reflected the mechanical dilution from the bonus issue rather than any change in the bank’s fundamentals.Bonus share issuances are often viewed as a signal of confidence in a company’s long-term earnings potential. For HDFC Bank, the exercise was part of its broader strategy to improve liquidity in the counter and widen retail participation.Thursday’s block deal, coming immediately after the bonus adjustment, added to trading activity in the counter, pushing shares lower in early dealsAlso read: IndiGo shares slide 5% as Gangwal family likely pares 3.1% stake via block deal(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
RCB announces new initiative following stampede
Ramdev Baba urges complete boycott of US brands
Family Power: Adani Group adds women leaders
70% exports 'under threat' from tariffs: Barclays
Pagination

The Economic Times: Breaking news, views, reviews, cricket from across India
Subscribe to ET NEWS feed
Recent comments