BEST IN CLASS | PAGE 24 NEWS POINT | PAGE 4 INTERNATIONAL | PAGE 10 Groww rides the retail wave; Moneyview banks on Bharat Antibiotic bet has paid off for Wockhardt founder Iran’s support for Hezbollah; wider peace deal in doubt MUMBAI, SATURDAY, JUNE 6, 2026 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LXVI NO. 133, 24 PAGES, `12 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 74,243.34 ▼ 116.67 NIFTY: 23,366.70 ▼ 49.85 NIKKEI 225: 66,588.12 ▼ 882.57 HANG SENG: 24,961.95 ▼ 291.45 `/$: 94.94 ▲ 0.85 `/€: 110.50 ▲ 0.86 BRENT: $93.86 ▼ $1.17 GOLD: `1,53,959 ▲▼ `1,433 IN THE NEWS ECONOMY PAGE 11 PRICES OF PETROL, DIESELMAYGO UP BYADDITIONAL`5 PRICES OF PETROL and diesel may need to be raised by another `5 per litre despite multiple hikes over the past three weeks, as state-run oil marketers continue to incur losses of `610 crore every day amid elevated crude oil prices and fuel losses triggered by the West Asia crisis, reports Saurav Anand. ECONOMY PAGE 11 PURI: E85 FUELTO COST `20/L LESS THAN PETROL INDIA ON THURSDAY launched E85 petrol, a high-ethanol fuel for flexfuel vehicles, with Union Minister Hardeep Singh Puri announcing that the fuel will be sold at a discount of around `20 per litre to regular petrol, as the government moves to absorb surplus ethanol production, report Saurav Anand & Nitin Kumar. DRY RUN–III PAGE 2 Fridaydelivered a trifecta of majoreconomic news: the govt and RBI unveiled a sweeping ` defence package that could attract $50–60 bn inflows; GDPgrowth accelerated to 7.7% in FY26; and RBI held rates while trimming its growth forecast and flagging rising inflation India mounts ` defence PRASANTA SAHU & JOYDEEP GHOSH New Delhi/Mumbai, June 5 IN A SWEEPING and coordinated response to the mounting pressure on the rupee, the Centre and the Reserve Bank of India (RBI) on Friday unveiled a package of measures designed to attract dollar inflows, arrest the currency's slide and finance a current account deficit that could nearly double to 2% of GDP this fiscal year if crude oil prices remain elevated around $95 per barrel. RBI Governor Sanjay Malhotra left little doubt about the central bank’s resolve. “We shall remain vigilant, and we are fully prepared to do whateverit takes to preserve orderly market conditions,” he told reporters.He also ruled out any restrictions on capital outflows,saying no such measures were under consideration. The backdrop is stark.Since the outbreak of the Iran waron February 28, foreign portfolio investors have pulled out $26.6 billion from Indian equities and another $836 million from bond markets till June 4. ZEPTO HAS STARTED linking its free-delivery threshold to demand levels, raising the minimum order value for free delivery to as high as `299 in some locations and during peak hours, marking a further shift away from the aggressive fee waivers that defined the quick commerce sector last year, reports Anees Hussain. ■ PAGE 5 ■ FPIs exempted from tax on ■ Concessional forex swap facility introduced for PSU banks to encourage external commercial borrowings interest income and capital gains from G-Secs; relief applies retrospectively ■ Similar facility has also been extended to authorised dealer banks for mobilising FCNR(B) deposits ■ Tax incentives extended to Bank for International Settlement for any investment in G-Secs Fully Accessible Route (FAR) expanded to include all new 15-year, 30-year and 40-year government securities, along with Sovereign Green Bonds across eligible maturities ■ ■ Investment cap for individual overseas residents (PROIs) in listed Indian firms raised from 5% to 10%; aggregate limit for all such investors raised to 24% Biggest gain for rupee in two months CHRISTINATITUS Mumbai, June 5 REFLECTING BUOYANT SENTIMENT after a slew of measures announced by the government and the Reserve Bank of India (RBI) to attract foreign capital, the rupee on Fridayrecorded its biggest single-day gain in two months. The domestic currency strengthened by 85 paise to close at 94.94 against the US dollar,aftertouching an intraday high of 94.88.The rupee emerged as Asia’s best-performing currencyon the day. The rally came after foreign portfolio investors (FPIs) bought bonds worth $575 million on Friday. However, they remained net sellers in equities, offloading shares worth about `8,000 crore. RELIEF RALLY Continued on Page 7 RBI sees lowergrowth,higherinflation at 5.25%,neutral stance retained Zepto free-delivery threshold linked to demand levels RBI MEASURES Continued on Page 7 ● Repo rate static WATER RESERVOIR LEVELS OFFER RELIEF AMID MONSOON ANXIETY GOVT MEASURES KSHIPRA PETKAR Mumbai, June 5 THE RESERVE BANK of India’s (RBI) MonetaryPolicyCommittee (MPC) on Fridaykept the policy repo rate unchanged at 5.25%,while retaining its neutral stance, signalling a waitand-watch approach amid heightened global uncertainty. Explaining the decision,RBI GovernorSanjayMalhotra said the MPC believed significant risks to both inflation and growth remained. “The MPC was of the opinion that there are considerable risks to the baseline assessment of inflation and growth arising from uncertaintyoverthe duration and intensityof the conflict, the magnitude of spillover effects,and the pace of supplychain normalisation,” he said. Malhotra also flagged uncer- SANJAY MALHOTRA, GOVERNOR, RBI The case for a rate hike is more adverse than it was previously Although risks to inflation have increased, the MPC felt it would be prudent to wait for greater clarity to emerge »INSIDE« EDIT: INFLATION’S LONG SHADOW PAGE 8 A COORDINATED POLICYACTION PAGE 8 tainty over the food inflation outlook due to forecasts of a sub-normal southwest monsoon and the possibility of El Niño conditions.“Although risks to inflation have increased,the MPC felt it would be prudent to ECONOMISTS BET ON RATE HIKES IN H2 PAGE 6 wait for greater clarity to emerge,”he said.At the post-policy press conference, however, the governor acknowledged that the probabilityof a rate hike had risen. “The case for a rate hike is more adverse than it was FE BEST BANKS AWARDS TOMORROW BANKER OF THE YEAR K S RAJU Stitched with grit ● INSPIRED BYAMOTHERWHO EARNED `60 AMONTH, K SATYANARAYANARAJU ROSE FROM VILLAGE HARDSHIP TO LEAD ONE OFINDIA’S LARGESTBANKS NARAYANAN V ATHREAD CONNECTS the different chapters of K Satyanarayana Raju's life,spun by a woman who earned Rs 60 a month stitching clothes in a small village in Andhra Pradesh’s West Godavari district.Ramaseetha had little formal education and great determination—a combination more powerful than most balance sheets.She was resolved that her three children would receive the edu- cation she never had,and she stitched that conviction into everything she did. Heryoungest son was paying attention. Raju grew up in circumstances that left little room for comfort.The family survived on coarse grain,the children collected leftover paddy from harvested fields to keep the kitchen going, and young Raju travelled nearly 20 kms every day to attend school — long before the age of Ola or even a reli- able bus. At 21,faced with a choice between academics and employment,he picked the latter to support his family. His first posting,in an Accountant General's office, lasted less than a year.He had once dreamed of becoming a police inspector,but banking kept pulling at him. “In those days,if someone got a banking job,people considered it a great achievement,”he recalls."That atmosphere attracted me.” He started as a clerk.He would retire as Managing Director and CEO of Canara Bank — one of the country's largest lenders — nearly four decades later. Continued on Page 24 previously,” he said. The MPC noted that domestic demand remains resilient and activity in both manufacturing and services continues to expand,though some indicators suggest a slowdown in parts of the economy. Reflecting the evolving macroeconomic landscape,the RBI lowered its real GDPgrowth forecast for 2026-27 to 6.6% from 6.9% projected in theApril policy review, citing elevated energyprices and supply-chain disruptions. It raised its CPI inflation forecast for the fiscal yearto 5.1% from 4.6%,factoring in the pass-through of higheroil prices and input costs. “The fourth-quarter GDP growth came in higher than expected, supported by robust private consumption and investment.Going ahead,however,we remain wary of geopolitical risks and El Niño-led supply-side shocks,” said Upasna Bhardwaj, chief economist at Kotak Mahindra Bank. Continued on Page 7 Economysprints to 7.8% growth in fourth quarter ● Investments, DEFYING ODDS services keydrivers KULDEEP SINGH New Delhi, June 5 INDIA’S ECONOMY EXPANDED at a stronger-thanexpected rate of 7.8% in the fourth quarter of FY26, riding on the momentum of service and construction sectors, and defying the late-quarter external headwinds from the West Asia conflict,according to provisional data released by the National Statistics Office (NSO) on Friday. With this and marginal revisions of growth figures for first three quarters,the gross domestic product (GDP) clocked a creditable 7.7% growth in FY26,the highest in the new series using 2022-23 as the base year.The NSO’s second advance estimates had put FY26 growth at 7.6%, just ahead of the release of the Union Budget forFY27. The latest set of data signals that economic activity was gathering some steam, before the West Asia warbegan to stifle it in multiple ways. Citing elevated energyprices,below-normal monsoon and supply disruptions, the Reserve Bank of India on Friday revised its GDP growth forecast for the current fiscal to 6.6% from 6.9% earlier. Continued on Page 10 NIRMALA SITHARAMAN, FINANCE MINISTER Our government is committed to further drive the ‘Reform Express’ with decisive policy measures »INSIDE« WAR POSES SUPPLY-SIDE RISK: CEA PAGE 2 Tata row: Fresh allegations over share transfer ● Tata Trusts says charges baseless, to seek legal help TRUST DEFICIT FE BUREAU Mumbai, June 5 matelyinherited the shares following Naval Tata’s death. In a statement,Tata Trusts categorically denied any wrongdoing. “This statement is being issued in respect of the baseless,unsubstantiated and malafide allegations regarding a share transfer made bythe NRTTto the late Mr Naval H.Tata in the year 1989,” the Trusts said. BLACKSTONE-BACKED HYPERSCALE DATA centre operator AirTrunk plans to invest about `3 lakh crore ($30 billion) in India by 2030 as it scales up its capacity in the countryto 5 GW,a move Prime Minister Narendra Modi described as among the largest proposed investments in India's digital infrastructure ecosystem. “India's digital infrastructure journey is gathering remarkable momentum. AirTrunk has announced plans to invest around `3 lakh crore ($30 billion) in India and develop 5 GW of data centre capacity. This is among the largest proposed investments in the country's digital infrastructure ecosystem,” Modi said in a post on X. Modi said such investments would strengthen India's position as a global hub for cloud computing and artificial intelligence (AI), while generating employment opportunities, supporting local supply chains and accelerating innovation-led growth. “It is clearthat the future of the world’s digital economy is increasingly being shaped in India,”he added. Continued on Page 5 Continued on Page 7 URVI MALVANIA Mumbai, June 5 A FRESH COMPLAINT has been filed before the Maharashtra Charity Commissioner alleging irregularities in the transfer of Tata Sons shares nearlyfourdecades ago,even as Tata Trusts on Friday strongly rejected the charges as “baseless”,“malafide” and aimed at damaging its reputation. The complaint,filed ahead of the June 8 meeting of trustees of the Sir Dorabji Tata Trust (SDTT),seeks an inquiryinto the transferof 833 Tata Sons shares from the Navajbai Ratan Tata Trust (NRTT) to the late Naval H. Tata in January1989. NRTT, which forms part of the Sir Ratan Tata Trust and Allied Trusts,has fourtrustees — Noel Tata, Jimmy Tata, Venu Srinivasan and VijaySingh. The petitioner, Suresh Tulsiram Patilkhede, represented by advocate Katyayani Agrawal of Delhi-based lawfirm SV&Co, has argued that the transfer lacked legal necessity.The complaint has also raised objections to Noel Tata’s participation in the upcoming SDTT meeting, contending that he is among the successors-in-interest who ulti- AirTrunk plans $30 bn investment in India ■ Fresh complaint seeks probe into 1989 share transfer ■ Noel Tata's participation challenged in petition ■ Trusts question petitioner's standing in matter ■ Trusts allege coordinated bid to damage reputation AUTO ZONE New Hyundai compact EV Maruti's green Vingroup EV energy bet fleet for India HYUNDAI MOTOR INDIA is developing an all-new compact electric SUV for the domestic market, as the company sharpens its focus on the mass-market EV segment and deepens localisation of its manufacturing and supply chain operations, reports Akbar Merchant. ■ PAGE 4 MARUTI SUZUKI INDIA on Friday announced two new biogas projects and said it plans to invest `925 crore in green energy initiatives by FY31, as the carmaker steps up efforts to reduce dependence on conventional fuels and lower carbon emissions, reports Nitin Kumar. ■ PAGE 4 GREEN SM, THE electric mobility arm of VinFast parent Vingroup, on Thursday entered the Indian market with the launch of its electric ride-hailing service, Green SM Limo, in Delhi NCR, marking its first expansion into South Asia, reports ■ PAGE 4 Nitin Kumar.