Ashok Chandra, Managing Director and CEO of Punjab National Bank (PNB), stated that the bank intends to commence acquisition financing activities in the third quarter of the current fiscal year. This is contingent upon the Reserve Bank of India (RBI) opening up relevant avenues for lenders.
Earlier this year, the Reserve Bank of India published final directives regarding bank financing of acquisitions, increasing the maximum lending limit to 75 percent of the transaction value, up from the 70 percent proposed in the draft rules. Ashok Chandra noted that the acquisition financing market is very large and offers significant opportunities.
He added that after the policy was approved at the last board meeting, the bank will seek a suitable partner to begin working in the acquisition financing sector, possibly starting from the third quarter. Initially, the bank will focus on domestic companies, which will help diversify the bank's asset portfolio.
By allowing this activity from July 1, the RBI established several conditions for banks conducting such financing. These include a corporate guarantee from the acquiring company and a requirement that the debt-to-equity ratio does not exceed 3:1 permanently after the acquisition. Furthermore, the shares or convertible bonds acquired by the company must be free of encumbrances. The RBI also stipulated that the borrower must have net worth of at least 500 crore rupees and demonstrate net profit for three years, while unlisted companies must possess an investment rating.
In response to the question about the foreign currency deposit mobilization campaign launched last month, Chandra reported that the bank had collected $425 million as of July 17. He stated the goal is to attract up to $2.5 billion in FCNR (B) deposits by September 30. Currently, PNB offers interest rates on FCNR (B) deposits ranging from 4.9 to 6.5 percent, depending on the tenure and amount.
To encourage the attraction of foreign currency deposits from Non-Resident Indians (NRI), Overseas Citizens of India (OCI), and Persons of Indian Origin (PIO), the Reserve Bank of India lifted the cap on the interest rate for new 3–5 year FCNR (B) deposits until September 30 last month. This step was taken against the backdrop of a sharp decline in FCNR (B) deposit inflows, where the net inflow amounted to only $946 million in the 2026 fiscal year compared to $7.1 billion in the 2025 fiscal year. Previously, in 2023, the RBI implemented similar schemes during periods of high dollar outflow caused by a 'tantrum.'
Last week, PNB announced more than a threefold increase in net profit in certain metrics, amounting to ₹5,253 crore for the quarter ending June 30, 2026. This growth was primarily driven by lower tax payments. In the comparable period last year, the public sector bank recorded a net profit of ₹1,675 crore. Total income in the reporting quarter remained unchanged at ₹37,231 crore. Meanwhile, the lender's interest income slightly increased to ₹32,897 crore compared to ₹31,964 crore in the same quarter last year. Net interest income also improved slightly by 2 percent, reaching ₹10,798 crore versus ₹10,578 crore in the previous fiscal year.
Bharat Coking Coal Ltd (BCCL), a subsidiary of Coal India, announced on Wednesday a net loss of 68.09 crore rupees for the June quarter. This result was attributed to a decrease in revenue and an increase in expenses.
Operating revenue in the first quarter of the current fiscal year amounted to 3,587.27 crore rupees, which is lower than the 3,719.59 crore rupees recorded in the same period last year. The company noted that the decline in sales is linked to a reduction in external supplies from 8.83 million tonnes to 7.81 million tonnes. Furthermore, the decrease in other income is explained by reduced reserves and write-offs of liabilities.
The company's total expenses rose to 3,826.31 crore rupees compared to 3,654.39 crore rupees in the previous year. It should be noted that in the corresponding period last year, BCCL reported a profit of 176.87 crore rupees, according to filings with BSE.
Bharat Coking Coal Ltd manages an extensive network of open-pit and underground mines in Jharkhand and West Bengal, with a particular focus on the Jharia coalfield. The company's operations encompass various strategic projects that contribute to the mission of producing coking coal for the country, as well as addressing critical fire control issues.
Consumers in South Africa faced a sharper increase in the cost of living in June than economists had predicted. Annual inflation accelerated to 5%, up from 4.5% in May. This figure reached the level observed in June 2024, which was caused by increased transport costs.
According to Statistics South Africa data, consumer prices rose by 0.7% month-on-month. The transport, housing, and utility sectors, as well as insurance and financial services, contributed most significantly to annual inflation. Transport became the main driver, accelerating by 12.7%. Housing and utility price increases amounted to 5.5%, while insurance and financial services saw a rise of 5.9%.
Meanwhile, inflation in the food segment remained relatively moderate. Annual inflation for food and non-alcoholic beverages was 1.6%. Specifically, the price of cereals continued to fall (deflation) by 1.5%, and fruit prices dropped by 10% compared to the previous year. However, meat prices rose by 5.1% year-on-year, and the cost of electricity, gas, and other fuels increased by 9.9%, with fuel prices being 34.3% higher than in June 2025.
Despite expectations of growth, economists predicted that annual inflation in June would be slightly higher, in the range of 4.7%–4.8%, attributed to rising fuel prices. These forecasts suggested that inflation would remain within the target range set by the South African Reserve Bank, which is 3% with an allowable deviation of one percentage point in either direction. Many experts viewed the recent rise as a temporary phenomenon rather than the start of a sustained acceleration in price growth.
Johann Els, Chief Economist at PSG, expected annual inflation to reach around 4.8% in June, mainly due to the rise in petrol prices. Nevertheless, he noted that this increase would be short-lived, as the expected reduction in fuel prices introduced in July should allow inflation to fall back to a level between 4.2% and 4.3%.
Els also mentioned that inflation expectations rose in the second quarter after oil prices climbed to approximately $100 per barrel. However, since then, oil prices have fallen to $74 per barrel, and lower prices for petrol and diesel in July should ease the financial situation of households in the coming months. These comments from Els preceded the resumption of hostilities in the Middle East, which led to a renewed rise in oil prices above $85 per barrel.
Samuel Seeff, Chairman of Seeff Property Group, forecasted that inflation in June would be around 4.7%. Acknowledging the expected increase, he noted that the projected average annual inflation remained below the central bank's upper target limit of 4%, indicating that inflation should remain generally controlled. Seeff argued that the expected rise in June reflects a temporary spike, whereas the impact of interest rate hikes on consumers and the economy is felt much longer. He added that prolonged restrictive monetary policy has contributed to weak economic growth and continues to put pressure on the property market.
Vishal Rama, Portfolio Manager at Prescient Investment Management, also predicted annual inflation to rise to 4.7%–4.8%, primarily linked to increased transport costs following the rise in fuel prices in June. Rama believed that food inflation would continue to slow down due to favorable base effects and falling fresh produce prices, helping to offset some of the pressure created by transport costs. In his view, despite transport becoming the largest factor in headline inflation recently, easing food price pressures should limit broader inflationary pressure, suggesting that June may mark the peak of the current inflation cycle.
Meanwhile, Investec revised its forecast for average inflation in 2026 upwards, setting it at 3.7% instead of the previous 3.3%, reflecting the impact of higher international oil prices on inflation outlooks.
SBI Funds Management has now been included in the list of public asset management companies (AMCs) in the Indian stock market, offering investors a new tool to participate in the significant growth of the Indian equity market.
Previously, on July 21, shares of the country's largest asset manager debuted at ₹613.30 per share, representing a 7 percent premium over the offer price of ₹574. This result was below the expectations of analysts and the 'grey market,' who had predicted a growth of nearly 16 percent. The Initial Public Offering (IPO), valued at ₹9,812.91 crore, attracted applications for more than 5.189 million shares against 124.56 million offered, making it one of the most sought-after offerings of the year. However, this complicated the allocation process, preventing many investors from acquiring SBI Funds Management shares.
Nevertheless, investors can now choose between investing funds in SBI Funds or considering other reputable companies such as ICICI Prudential AMC and HDFC AMC.
Kranti Batini from Wealthmills Securities noted that as financial asset liberalization continues in India, further growth in Assets Under Management (AUM) by asset managers is expected in the coming quarters. He emphasized that the three leading AMCs possess strong distribution networks and established brands built over decades, which should contribute to their stable future success. SBI AMC, ICICI Pru AMC, and HDFC AMC collectively hold a 40 percent share of the overall market. Since all three asset management companies have demonstrated a consistent double-digit average annual growth rate in profit and revenue over the last three years, the valuation factor has become decisive for analysts, and based on this, SBI Funds appears to be the preferred choice.
Vineet Bolinder, Head of Research at Ventura Securities, stated the strong growth potential of SBI Funds. In his opinion, achieving a double-digit average annual growth rate in profit is not a difficult task, and with such growth, 'there is still a lot of opportunity, and buying can be considered.' He prioritized them in the following order: SBI Funds, followed by ICICI Prudential AMC and HDFC AMC. His view is shared by Batini, who considers SBI Funds Management 'reasonably valued, offering a favorable opportunity for long-term investors.'
On the other hand, Ravi Singh, Director of Research at Mastertrust, continues to favor HDFC AMC, followed by ICICI Prudential AMC, while believing that SBI Funds Management has the potential to become a strong wealth creator over time. Singh noted that HDFC AMC is renowned for its ability to ensure stable profitability, maintain a high-quality equity portfolio, and generate healthy cash flows. He added that 'although stocks are usually traded at a premium, investors are willing to pay for its stable business model and strong execution.'
