Nifty Bank tumbled 2.5%, with private lenders Axis Bank, Kotak, and IndusInd leading the rout with 3% losses, while ICICI Bank, HDFC Bank and SBI fell around 2% each. The selloff came even as the rupee surged nearly 1% to 93.85 per dollar, recovering from Friday’s record low of 94.84, after the RBI tightened limits on banks’ foreign exchange positions.

The central bank’s directive, effective April 10, caps banks’ net open positions in the rupee at $100 million at the end of each business day, forcing lenders to dismantle massive arbitrage trades estimated at $25-50 billion.

“Every Rs 1/USD dual movement in INR on $30-40 billion of book can lead to a one-time loss of Rs 30-40 billion for the banking sector,” warned Prakhar Sharma and Vinayak Agarwal of Jefferies, who estimate gross onshore positions at $30-40 billion, dominated by major lenders including SBI, ICICI, HDFC, Axis, and leading foreign banks.

The analysts flagged that unwinding positions by April 10 may lead to MTM losses in the fourth quarter. “This may have an impact on banks’ profit in 4QFY26 as they may need to take MTM hit on March 31, 2026,” they wrote, adding that the sector has sought leniency from the RBI.

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Traders said if the gap between rupee-dollar rates in the offshore non-deliverable forwards market and the onshore market widens to Re 1 during unwinding, banks could face losses of up to Rs 4,000 crore. These losses could be reflected in banks’ books for the current fiscal year, as they had earlier calculated open positions after netting off hedged trades in the NDF market.
The potential hit stems from how banks structured their forex operations. “The normal trade is for banks to buy US$ in the onshore market (at a lower premium) and sell or square off in the offshore market (at a higher premium) to generate a spread and build depth in the market,” the Jefferies analysts explained. The spread had widened significantly amid volatility and the rupee’s fall on heightened risk aversion and oil-driven pressures linked to the Iran war.Banks are lobbying for relief. “Our conversations with banks indicate that RBI is considering some leniency that may include grandfathering of existing contracts and applying limits on new contracts,” the Jefferies analysts wrote. “It may also consider extending the time limit from April 10 to a further date to smoothen forex movement and MTM impact on banks.”

Most large and mid-sized banks with net open positions exceeding $100 million are expected to sell dollars to comply with the directive, triggering a wave of onshore dollar selling as they rush to cut arbitrage positions.

But prominent fund manager Samir Arora dismissed the panic. “Just relax about this supposed Rs 4,000 crore loss on FX unwinding,” he tweeted. “Just in the past month the INR has depreciated by over 4%. All these positions would not have been set up for the first time at the Friday, March 27 close. These banks would be in the money big time till now (which equity markets did not know or account for), and now they will give up some of those profits. Big deal.”

Arora suggested foreign banks may bear much of the impact: “Some of the bigger positions may have been taken by more aggressive foreign banks (like Citi etc), who knows, but we do not care beyond a point for them as far as our market is concerned.”

The Jefferies analysts noted that appreciation of the rupee in the NDF market may lead to profits for hedge funds and foreign banks in the forex derivative markets, a reversal that could benefit offshore players even as Indian banks take losses.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

It may be very thrilling and can be very difficult to start and maintain a small business in the Philippines. As opportunities are expanding in different sectors, availability of funds is one of the greatest issues to businesspersons. Even the best business ideas may fail to develop without the appropriate financial aid. That is why the knowledge of alternative sources of funds has become a mandatory matter among small business owners.

Conventional Financing: It Is Still Relevant, but Difficult

The first source of thought when financing his or her business is with banks. They provide structured loans that have a comparatively low interest rate and have a long repayment period. Nevertheless, it is not always a simple process. Some of the challenges that plague many small business owners include:

• Repressive documentation demands
• Requirement of good credit history
• Collateral demands
• Long approval timelines

Due to this fact, bank loans are not always applicable to start-ups or businesses with urgent financing needs.

Researching Alternative Financing

In order to beat these hurdles, most entrepreneurs in the Philippines are currently looking into alternative financing approaches that are more lenient and available.

1. Fintech Lending Platforms

DLP offers speedy and easy access to finance. The process of applications is normally done online and approvals can take a matter of time. Nevertheless, the interest rates can be different in accordance with the platform.

2. Partnerships and Private Investors

There are those businesses that opt to use investors as a means of raising funds. This is capable of introducing more capital but it is commonly associated with sharing ownership or a share of decision making.

3. Licensed Moneylenders

The practice of licensed moneylenders has become a viable source of financing to a good number of small businesses. These lenders are licensed and authorized and therefore there is transparency and legal security of the borrowers.

They are known for:

• Faster approval processes
• Minimal documentation
• Flexible repayment terms
• Small and medium enterprise accessibility.

Reputable Licensed Moneylenders in the Philippines

When choosing this option, it is important to select a reliable and licensed provider. One such option is Supreme Money Lending Corp, which offers financing solutions designed to support small businesses with quicker and more accessible funding compared to traditional banks.

Other financial service providers in the Philippines also offer alternative lending options, including Home Credit Philippines and Maya Bank both of which provide accessible loan services for individuals and small business owners.

Selection of the Right Financing Choice

The choice of the appropriate means of financing is determined by the needs of your business and finances. It is important to evaluate:

• Interest rates and overall repayment of the cost.
• Speed of loan processing
• Repayment flexibility of terms.
• Lender credibility/ transparency.

All the options have their pros and what has worked in one business may not work in another.

Conclusion

Alternative financing has taken a significant role in the Philippine business environment. Although banks remain an important factor, there are alternative mechanisms that can offer all the necessary flexibility, including fintech sites, investors, and licensed moneylenders. Access to various sources of funds can be a huge difference to the owners of the small business. It would be easy to control cash flow and deal with unforeseen costs, as well as concentrate on consistent development of the business without undue delays with the appropriate financial partner.

Business News Philippines was launched in October 2015 as a portal for readers to learn more about operating a business in the Philippines.

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Foreign companies in Singapore can choose between a subsidiary, which is a separate legal entity, or a branch, legally part of the parent, affecting liability, governance, and operational independence.

Entry Options for Foreign Companies in Singapore

Foreign companies planning to operate in Singapore must decide between establishing a locally incorporated subsidiary or registering a branch office. A subsidiary functions as a separate legal entity under the Singapore Companies Act, owning its assets, signing contracts, and maintaining financial records independently. This structure provides greater autonomy while still being owned by the foreign parent company.

Legal Differences Between a Subsidiary and a Branch

A branch office is not a separate legal entity; it is an extension of the foreign parent company registered with Singapore’s authorities. Since it is legally part of the parent, liabilities incurred in Singapore can directly affect the parent company. This removes the legal separation that a subsidiary offers, which can impact risk exposure and liability management.

Governance and Regulatory Requirements

The choice of structure also influences governance obligations. A subsidiary must appoint at least one resident director, maintain a company secretary, and fulfill annual filing requirements with the Accounting and Corporate Regulatory Authority (ACRA). Conversely, a branch office faces different compliance obligations, reflecting its integrated status with the parent company.

Accountancy body ACCA Wales is calling on the next Welsh Government to reform business rates and create a world class skills and career system. Ahead of the Senedd Election in May ACCA (Association of Chartered Certified Accountants) Wales says political parties should commit to four priorities that will underpin Wales’ future prosperity.

The global professional accountancy body, has 6,400 members and students in Wales working in all sectors of the economy.

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It says the next Cardiff Bay administration should:

• Build a world-class skills and careers system by expanding higher-level apprenticeships, accelerating short-course provision and embedding employer voice across regional and national skills planning, particularly for in demand competencies like digital and green skills
• Create the conditions for sustainable business growth through investment in infrastructure and connectivity, business support and stronger engagement between government and key sectors
• Strengthen public finance, productivity and tax certainty with greater funding certainty through multi-year budgets, a simpler tax environment and reform of the business rates system.
• Enable a practical and just transition to net zero by providing targeted support for small businesses and strengthening climate reporting across public bodies.

On business rate reform it said there needs to rebalance of rates across all businesses, and not penalising firms who invest in their premises.

The prospectus also exemplifies how finance professionals can support these asks and work with policymakers to drive change within businesses and organisations of all sizes.

Lloyd Powell, head of ACCA Cymru/Wales, said: “Accountancy is a cornerstone profession of society; it is vital to help economies, organisations and individuals grow and prosper. In Wales, finance professionals sit at the heart of the economy, public services and transition to net zero. They enable growth, stability and innovation across every sector.

“We stand ready to work in partnership with the Senedd and Welsh Government to deliver the ambitions set out in our prospectus, ensuring Wales has the skills, institutions, and financial leadership required to thrive. Our calls are clear. This is not about party politics, but about practical actions that can support businesses, public finances and long-term prosperity.”

Franchise business launched by personal trainer James Calderbank wants to reach 100 sites

A North West fitness brand that targets over 35s who want to get healthy is planning to roll out another 11 locations across the UK this year.

Transform Hub focuses on group-based personal training classes. It was founded in Preston by personal trainer James Calderbank and is now headquartered in Knutsford, Cheshire.

The franchise business already has 27 gyms across the UK but is now planning to roll out new venues in Worcester, Cheltenham, Southampton, Altrincham, Hull, Cambridge, Northampton, Nottingham South, Winchester and Gosforth. It aims to reach 100 gym sites by 2028.

Meanwhile, the franchise has secured IP trademarks in the US and Europe as bosses plan for gradual expansion overseas.

In 2023, Transform Hub secured £1m in backing from investors Andy Bell and Fergus Lyon. The business says that last year its gym memberships rose 28.4%, from 2,878 to 3,695 active members, helping revenues rise 61% to £1.7m. It says around 80% of its members are aged 30-60.

Founder and CEO of Transform Hub, James Calederbank said: “When I first created Transform Hub, I saw a huge gap in the market for people to access personal training in a different way. Online coaching delivers incredible accountability and lifestyle change, while in-person training creates energy, community, and real momentum. But most people were forced to choose one or the other. Transform Hub connects the two.”

He added: “What’s also exciting is the opportunity this creates for franchise partners: people looking to open gyms under the Transform Hub name.”