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- RBI injects Rs 1 lakh crore as liquidity tightens before festive season
- RBI conducts ₹1 lakh cr Variable Rate Repo auction to push liquidity into banking system
The Reserve Bank of India (RBI) on Monday conducted a seven-day Variable Rate Repo (VRR) auction for ₹1 lakh crore, as surplus liquidity in the banking system fell substantially. Since August 6, the central bank had been absorbing liquidity through VRRR auctions to drain surplus generated by banks' FCNR(B) deposit mobilisation under a limited swap window (June 8 to August 31). Monday's seven-day VRRR auction drew bids of ₹1,50,735 crore against the notified ₹1 lakh crore and accepted ₹1,00,014 crore at a weighted average rate of 5.52%. As surplus shrinks towards a small deficit, the recent 25 basis-point repo rate hike is expected to transmit more effectively to deposit and lending rates. Average daily net absorption under the liquidity adjustment facility rose from ₹1.2 lakh crore in July to ₹7.8 lakh crore in September, and surplus stood at ₹1,85,873 crore as of October 18, 2026.
- Deposits In Indian Banks Reach Record$3 Trillion In September - Trak . in - Indian Business of Tech , Mobile & Startups
India's bank deposits hit a record of about Rs 284 trillion (around $2.99 trillion) in the second half of September 2026, driven largely by an RBI discounted foreign exchange swap scheme to attract foreign currency deposits. The scheme reportedly drew around $133 billion in inflows, and its window closed on August 31, a month earlier than planned; deposits rose about Rs 20 trillion between June 16 and August 31. Over the first six months of FY2026-27, deposits rose Rs 21.67 trillion, or 8.4% since end-March, with a further Rs 7.73 trillion added in the period ending September 30 as banks shored up funding before quarter-end. However, the liquidity surplus is narrowing and lending is growing faster than deposits, which could intensify competition for deposits and raise funding costs.
- Philip R. Lane: Euro liquidity lines and the international monetary system
ECB Executive Board member Philip R. Lane said international liquidity lines, both repo and swap, are needed because the ECB deals only with domestic counterparties, and they help curb financial pressure on euro funding markets during shocks. The ECB has enhanced its repo facility for non-euro area central banks (EUREP), which now offers standing access in principle with a maximum line of €50 billion per central bank, priced at the main refinancing operations rate plus a spread. More than thirty central banks have shown interest in the past six months, the first foreign onboardings were completed in early October, and drawdowns are possible from the fourth quarter of 2026. Lane expects EUREP to boost demand for euro-denominated bonds from foreign central banks and improve liquidity across euro area sovereign bonds, particularly less liquid ones.
- China central bank says will introduce a number of policy measures - Xinhua
Pan Gongsheng, governor of the People's Bank of China, said the central bank will work with other financial authorities to introduce several policy measures. These include a liquidity support facility for large-scale redemptions by non-bank institutions, expanding institutions eligible for the Standing Lending Facility, and promoting connectivity between the interbank and exchange bond markets. Other measures include pilot programs for foreign financial institutions' RMB business in the onshore foreign exchange market and guidelines on financial support for international science and technology innovation centers in Beijing, Shanghai and the Greater Bay Area. He spoke at the opening of the Financial Street Forum 2026 in Beijing, running from Oct. 19 to 22.
- China central bank studies making overnight rate its main policy rate
China's central bank is considering switching its main policy rate from the seven-day reverse repo rate to the overnight reverse repo rate to improve monetary policy transmission. PBOC Governor Pan Gongsheng said the interbank overnight repo rate has effectively become the bank's target rate, and the change does not amount to a rate cut. The overnight repo rate averaged around 1.25%, near a five-month low and below the 1.4% seven-day reverse repo rate. The PBOC also plans to reform loan pricing so that some strong firms can use the overnight repo rate or the LPR as the floating-rate benchmark, while widening access to its Standing Lending Facility and creating a liquidity tool for non-bank financial institutions.
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- Bank Profits Surge
The 9-month 2026 results show many banks continued to grow profits, with some posting record quarterly earnings. VPBank's pre-tax profit reached nearly VND 30,000 billion, up nearly 47%, equal to its full-year 2025 result and about 72.4% of its 2026 plan; Q3 pre-tax profit topped VND 11,000 billion. Techcombank posted VND 28,900 billion (up 23.7%), while LPBank reported VND 10,421 billion (up nearly 9%). SSI forecasts pre-tax profit of its monitored banks to rise 19.5% in 2026 before slowing to 15.4% in 2027, pressured by narrowing net interest margins and rising credit risk provisions. It also expects system-wide credit growth of 16-17% in 2027 and 17.9% for the monitored banks.
- World's Largest Gold Fund Dumps Over 10 Tonnes of Gold as Prices Slide
SPDR Gold Trust, the world's largest gold fund, continued net selling of nearly 12 tonnes of gold in the 22/10 session, bringing total sales over 2 sessions to nearly 15 tonnes and cutting its holdings to about 1,046 tonnes. Spot gold fell more than 2.8% to around USD 4,025 per ounce at the close of 22/10, and briefly dipped below USD 4,000 per ounce in the morning session of 23/10. Tensions in the Middle East pushed crude oil prices higher, raising concerns about inflation and further Fed tightening, and gold has still not attracted sustained safe-haven demand even as US Treasury yields fell. US September CPI rose 0.6% month on month and 3.7% year on year, while PPI rose 1.3% and 6.3%. Markets price about an 84% chance the Fed holds rates steady at its 27-28/10 meeting and a 16% chance of a 25 basis-point increase; September PCE data due on 29/10 is the next key factor to watch.
- Gold Prices Continue to Fall
On the morning of 23/10, domestic gold prices kept falling, with SJC bar prices varying by seller and the premium over world gold widening. Công ty TNHH Vàng bạc đá quý Sài Gòn listed SJC bars at VND 139-142 million per tael (buy-sell), down VND 300,000; Phú Quý was at VND 138-141.8 million, down VND 500,000; and Mi Hồng at VND 140-141.5 million, down VND 800,000. Gold rings also fell by varying amounts, with DOJI at VND 138-142 million and Phú Quý at VND 138-141 million per tael. World gold dropped USD 129 to around USD 3,992 per ounce, equal to about VND 125.3 million per tael, leaving SJC bars about VND 16.7 million per tael above the world price. The State Bank's central rate was set at 25,627 VND/USD, down 5 dong, while Vietcombank quoted 25,660-26,040 VND/USD (buy-sell).
- Company Linked to Billionaire Pham Nhat Vuong Announces Major Good News
VEFAC (ticker VEF), a Vingroup subsidiary, posted Q3 net revenue of nearly VND 77 billion, up 67% year on year, but a gross loss of about VND 27 billion as cost of sales from its exhibition business exceeded revenue. Q3 profit rose mainly thanks to a gross gain of about VND 65 billion from transferring some schools in a project to a partner, while financial income reached over VND 388 billion, mostly from loan and investment income. For the first nine months of 2026, after-tax profit was nearly VND 865 billion, down about 94% from VND 15,418 billion in the same period of 2025, as the prior year included large gains from transferring part of the Vinhomes Global Gate project. As of 30/9/2026, total assets stood at over VND 31,905 billion, up 36% from the start of the year, while total liabilities exceeded VND 24,364 billion, with short-term customer advances rising from VND 411 billion to over VND 8,373 billion.
- Lotte and Phat Dat Officially Break Ground on VND 60,000 Billion Mega Project in Thu Thiem 'Golden Land'
A joint venture between Lotte Group (South Korea) and Phát Đạt (HoSE: PDR) officially broke ground on 23/10 on Lotte Eco Smart City Thu Thiem in the Thu Thiem New Urban Area, HCMC, with total investment of about VND 60,000 billion. The project covers nearly 7.5 ha and will combine Grade A offices, retail, services, accommodation and housing, adjoining the central plaza and central lake of Thu Thiem. Phát Đạt holds 35% of Lotte Properties HCMC, the project developer, and will develop the housing blocks along with two towers (2-1 and 2-3) with about 219,722 m2 of floor area, while Lotte handles block 2-5. Lotte Properties HCMC paid VND 17,569 billion in land-use fees on 31/7/2026, and Phát Đạt completed its VND 7,666 billion payment to take its 35% stake. MB is funding all of Phát Đạt's capital contribution, while VietinBank and BIDV also support the project.
- International Business : Global stocks nosedive as Meta dents AI optimism
Global stocks retreated as tech earnings failed to ease concerns about the AI outlook, with MSCI's All-World index set for its largest daily fall in two weeks, down 0.4 per cent. Meta beat third-quarter revenue expectations, but its plan to issue non-voting stock revived worries about its mounting capital commitments, and a New Mexico judge ordered it to pay a $25 billion penalty in a data privacy case. Brent crude rose nearly 3% to $112 a barrel, near a five-month high, after more Houthi attacks in Saudi Arabia raised supply risks. Investors moved into government bonds, pushing the US 10-year yield down to 5.05%, below France's for the first time in 13 years, while French yields have climbed above 5% amid concerns over social unrest and debt. The France-Germany 10-year spread reached 177.7 basis points, its widest since 2011, while gold fell 1.8% to $4,070 an ounce.
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