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The reported move, if confirmed, would mark a significant shift in the composition of India’s external buffers at a time when oil prices, foreign portfolio outflows and import demand are combining to test the country’s balance of payments position. The RBI has not publicly confirmed any gold sale of that scale, and the latest available reserve data show a fall in the value of gold holdings rather than a definitive disclosure of physical bullion sales.

India’s foreign exchange reserves fell to $681.4 billion for the week ended May 22, down $7.5 billion from the previous week. Foreign currency assets declined by about $3 billion to $543 billion, while the value of gold reserves dropped by roughly $4.5 billion. The fall came as the rupee traded near record lows, having weakened by more than 4 per cent since the outbreak of the US-Iran conflict and the accompanying rise in energy prices.

The rupee has been under sustained pressure from higher crude oil and liquefied natural gas costs, wider hedging by importers and withdrawals by overseas investors from domestic equities. Brent crude has traded in the mid-$90 range, raising concern over India’s import bill because the country depends heavily on overseas energy supplies. Any prolonged disruption in Gulf shipping routes would add to inflation risks and intensify demand for dollars from refiners and importers.

The RBI has intervened through state-run banks to slow the currency’s decline, with traders indicating that the central bank has been uncomfortable with disorderly depreciation. The rupee was around 95 to the dollar this week after briefly sliding close to 97 in May. The central bank’s policy decision due this week is being watched for signals on whether it will rely mainly on liquidity tools, dollar sales and administrative measures, or consider a firmer monetary response.

The reported $12 billion gold-related action has drawn attention because India’s gold holdings have expanded in importance within the reserve portfolio. The central bank held about 880.5 tonnes of gold at the end of March, with gold accounting for nearly 17 per cent of total foreign exchange reserves. The physical stock has been broadly steady around 880 tonnes since mid-2025, suggesting that changes in the dollar value of gold reserves can reflect price movements, accounting effects and reserve operations as well as outright sales.

Gold has become a larger part of central bank reserves worldwide as monetary authorities seek diversification away from dollar assets and protection against geopolitical shocks. India has also moved more of its bullion to domestic vaults, reducing custody risks linked to overseas storage. That strategy had been seen as a long-term strengthening of sovereign reserve control, making any suggestion of sizeable gold liquidation politically and financially sensitive.

The government has moved separately to curb foreign exchange outflows. Import duties on gold and silver have been lifted sharply to about 15 per cent from 6 per cent, reversing earlier tariff relief and increasing the landed cost of precious metals. Rules around some bullion imports have also been tightened, while appeals have been made to households to reduce discretionary gold purchases.

Fuel prices have also been raised as state-run retailers pass through part of the increase in international crude costs. Petrol and diesel prices have risen after several years of limited retail adjustments, adding to household costs but reducing the burden on public-sector oil marketing companies. The step is intended to limit under-recoveries at fuel retailers and reduce the fiscal strain that would otherwise build if global prices stay elevated.

The combined policy response reflects the strain of a classic external shock: a weaker currency lifts import costs, higher oil prices widen the trade deficit, and investors demand higher compensation for risk. India enters this phase with substantial reserves, moderate inflation by past crisis standards and a financial system that remains broadly stable, but the speed of the rupee’s decline has revived comparisons with earlier episodes of currency stress.

For markets, the key question is whether the central bank can preserve confidence without exhausting liquid dollar assets or signalling panic. A calibrated use of reserves can smooth volatility, but heavy intervention may raise doubts if investors see it as a defence of a particular exchange-rate level. The RBI’s challenge is to keep currency markets orderly while allowing enough flexibility for the rupee to adjust to the oil shock and global risk aversion.

By Nantoo Banerjee Bangladesh’s involvement of China in the country’s US$ 1.5-billion Teesta River Comprehensive Management and Restoration Project (TRCMRP) seems to have posed a significant geopolitical tension for India and its defence concerns. Dhaka made a formal request to China for the project during Foreign Minister Khalilur Rahman’s recent visit to Beijing, reflecting a […]

The article Chinese Part In Bangladesh Teesta Project Alarms India appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

The May figure, based on provisional operational data for the month ended 31 May, came against a monthly target of 66.28 million tonnes. Coal offtake, the volume supplied to power utilities and other customers, rose 2.26 per cent to 66.18 million tonnes, showing that dispatches continued to outpace production as the company worked down inventories rather than pushing output at full pace.

The fall marks the second straight month of reduced production after April output dropped 9.7 per cent to 56.1 million tonnes. The pattern points to a deliberate balancing act by Coal India, which remains central to electricity security but is also facing the consequences of heavy stock accumulation at mines and the growing role of solar, wind, hydro and nuclear generation in meeting demand.

Coal India, through its subsidiaries, accounts for about four-fifths of domestic coal output. Its production in the first two months of the 2026-27 financial year stood at 112.19 million tonnes, below the target of 127.85 million tonnes. The company’s annual production target for the year is 815 million tonnes, a demanding goal at a time when the power market is becoming more seasonal and less dependent on continuous coal expansion.

Demand for coal has not collapsed. Peak electricity demand touched a record level of about 270.8 gigawatts in May as a severe heatwave lifted cooling needs across several regions. Coal-fired plants remain the backbone of the grid, generating more than 70 per cent of electricity despite the rapid expansion of non-fossil capacity. Yet the pressure on Coal India is no longer simply to mine more. It is to supply coal to the right locations at the right time while avoiding excessive stock build-up at pitheads.

Inventories have become a key concern. Coal stocks across the system stood at about 168 million tonnes in late May, including 47.6 million tonnes at power plants and 113.5 million tonnes at Coal India mine-heads. The company has said those reserves are enough for 19 days of consumption. Mine-head stocks were about 10 per cent higher than a year earlier, creating operational and financial incentives to moderate production while dispatches catch up.

The May subsidiary-wise data showed a mixed picture. Mahanadi Coalfields produced 14.26 million tonnes, about 20.1 per cent lower than a year earlier, while Northern Coalfields fell 23.69 per cent to 9.47 million tonnes. Bharat Coking Coal declined 25.51 per cent to 2.28 million tonnes. Western Coalfields dropped 8.4 per cent and Eastern Coalfields was down 3.63 per cent. South Eastern Coalfields was the exception, increasing output 4.53 per cent to 14.42 million tonnes, while Central Coalfields edged up 0.44 per cent to 6.2 million tonnes.

The company’s offtake profile was more resilient. Mahanadi Coalfields dispatched 18.34 million tonnes in May, up 5.77 per cent, while Central Coalfields rose 17.45 per cent and Eastern Coalfields gained 6.48 per cent. South Eastern Coalfields increased dispatches by 3.18 per cent. The weaker areas included Bharat Coking Coal, where offtake fell 16.16 per cent, and Northern Coalfields, down 8.44 per cent.

The wider power sector is changing quickly. Non-fossil fuel capacity reached 283.46 gigawatts by the end of March, including 150.26 gigawatts of solar, 56.09 gigawatts of wind, 51.41 gigawatts of large hydro and 8.78 gigawatts of nuclear power. Renewable energy additions in 2025-26 were driven mainly by solar, which has become a significant contributor during daylight peaks. Even so, the grid still leans heavily on coal after sunset and during periods when renewable output weakens.

That split has created a more complex operating environment. Coal India is being asked to ensure reliability during heatwaves, support power plants with low stocks and maintain supplies to non-power consumers, while policymakers are also pushing cleaner energy, storage and transmission upgrades. The result is a coal market where peak demand can be exceptionally strong even as average growth in coal consumption becomes less predictable.

Alongside the credit facility, the two parties also implemented digital account management and payment systems for Green GSM’s driver network. Through PNB’s corporate banking platform and digitized onboarding processes, account opening and activation times are significantly reduced, helping Green GSM strengthen operational management as it expands driver network.

As cities continue to seek lower-emission transport solutions, financial systems, digital payments, driver management and operating standards are becoming increasingly important to supporting mobility platforms at scale.

In the Philippines, Green GSM is building mobility model through the integration of technology, an all-electric fleet, and standardized operating systems. Following its strategic partnership with Xentro Group in 2025 and the launch of the Green Xentro fleet in Rizal earlier this year, the company continues to expand its presence through long-term collaborations with local partners and domestic financial institutions.

“We appreciate Green GSM’s long-term development direction in the Philippines, not only in advancing low-emission mobility, but also in the way the company is building an operating model with scalability and clear governance foundations,” said Mr. Edwin R. Bautista, President and Chief Executive Officer of PNB. “The transition toward sustainable transport will require ecosystems capable of supporting stable long-term growth, together with the financial and operational foundations needed to enable that expansion.”

Ms. Le Thi Thu Trang, Chief Executive Officer of Green GSM Philippines, said: “For Green GSM, developing an all-electric mobility model is not only about expanding the fleet, but also about building an operating system that is stable, standardized, and capable of sustainable long-term growth. Our partnership with PNB will help strengthen the financial and operational foundations needed to enhance service quality and support Green GSM’s continued expansion in the Philippines.”

Green GSM develops its all-electric mobility model through the combination of technology, standardized operating systems, and professionally trained drivers. The platform is supported by real-time monitoring and operational systems designed to maintain service consistency across major urban areas.

The partnership with PNB further reinforces Green GSM’s long-term direction in the Philippines, where the company continues to strengthen its operating foundations, service standards, and driver support systems in order to maintain service quality as operations scale further.

Hashtag: #GreenSM

The issuer is solely responsible for the content of this announcement.

About GSM & Green SM

GSM (Green Smart Mobility) is a pioneering multi-platform company operating all-electric ride-hailing services. With a focus on sustainable transport development, GSM operates a mobility model powered entirely by VinFast electric vehicles, combining technology, service standards, and operational ecosystems to support the future of low-emission urban mobility.

Green GSM is GSM’s official brand in the Philippines and is part of the broader Green SM global ecosystem, alongside Xanh SM in Vietnam and Laos, and Green SM in Indonesia. Across all markets, the brand focuses on delivering modern mobility experiences through VinFast electric vehicles, professional drivers, and operating systems built around safety, consistency, and service quality.

About Philippine National Bank (PNB)

Philippine National Bank (PNB) is one of the Philippines’ largest private commercial banks in terms of assets and deposits. The bank provides a full range of financial and banking services to individual customers, businesses, institutions, and overseas Filipino communities. With a history spanning more than a century, PNB continues to focus on growth strategies driven by digital transformation, operational efficiency, and sustainable development in the financial sector.

Shares in Masayoshi Son’s technology investment group surged in Tokyo trading, lifting its market value to about ¥47.2 trillion, or roughly $296 billion, ahead of Toyota’s ¥45.7 trillion after the carmaker’s stock fell nearly 5 per cent. The move placed SoftBank at the top of Japan’s corporate valuation table for the first time in more than two decades and added momentum to a Nikkei 225 rally that pushed the index above 67,000.

The change is more than a stock-market milestone. It reflects how the AI boom has reshaped capital allocation in Japan, where investors are assigning higher value to companies with exposure to semiconductors, data centres, power infrastructure and generative AI platforms. Toyota remains one of the world’s largest and most profitable carmakers, but its valuation is now being weighed against a slower earnings outlook, tariff pressure, currency swings and the heavy cost of electrification.

SoftBank’s advance has been driven by a powerful combination of portfolio gains and expectations that its AI-linked holdings could generate fresh liquidity. The group’s exposure to Arm, the British chip-design company it took public in 2023, has become a key pillar of its market value. Arm’s technology is used widely across smartphones, cloud computing and increasingly AI-related chips, giving SoftBank a central position in the semiconductor supply chain.

OpenAI has become the second major driver of investor attention. SoftBank has committed tens of billions of dollars to the ChatGPT developer and is positioning itself as a core financier of AI infrastructure. Expectations that OpenAI could move towards a public listing have intensified interest in SoftBank’s asset base, even as analysts continue to debate how much of the group’s valuation depends on private-market pricing and future monetisation.

The latest surge followed SoftBank’s plan to invest up to €75 billion in AI infrastructure in France, including data centres and power-intensive computing capacity. The first phase is expected to involve about €45 billion of investment to build 3.1 gigawatts of capacity by 2031, with further expansion potentially taking the total to 5 gigawatts. The project places France at the centre of Europe’s push to develop sovereign AI infrastructure, helped by its nuclear-heavy power system and available industrial sites.

SoftBank is also moving to create public-market vehicles around AI infrastructure. SB Energy, its power and data-centre platform, is preparing for a potential US listing and has been linked to a valuation above $50 billion. The company is involved in large-scale power projects designed to support AI workloads, including a 1.2-gigawatt data-centre development in Texas. A separate robotics venture, Roze, is also being prepared for a possible listing, highlighting SoftBank’s attempt to build an ecosystem around energy, construction automation and computing capacity.

Toyota’s fall in ranking does not signal operational weakness. The carmaker reported operating income of ¥3.8 trillion for the financial year ended March 2026, supported by vehicle sales and pricing power despite tariff costs and rising expenses. It remains a global force in hybrid technology, production efficiency and supply-chain management. However, investors have become more cautious about its growth outlook as the auto sector faces higher regulatory costs, slower battery-electric vehicle adoption in some markets, and intensifying competition from China-based manufacturers.

The contrast between SoftBank and Toyota captures a broader reordering of Japan’s equity market. AI-linked names, chip suppliers and infrastructure companies are drawing strong inflows, while parts of the auto sector and older industrial groups face questions over margin durability. Kioxia, the memory-chip maker, has also climbed sharply this year, showing how investor enthusiasm has spread beyond SoftBank into companies tied to storage and high-performance computing.

The rally has strengthened the profile of Son, whose investment record has swung between spectacular gains and painful losses. SoftBank’s Vision Fund suffered heavy write-downs after the collapse in technology valuations in 2021 and 2022, while earlier bets such as WeWork damaged confidence in the group’s risk controls. Its comeback has been powered by a more concentrated AI narrative, but that also leaves the shares vulnerable if expectations around OpenAI, Arm or infrastructure listings are revised lower.

Defence Minister Mohamed Khaled Nordin said Oslo’s decision had moved beyond a procurement setback and raised wider questions about trust in global relations. He argued that rules and agreements lose credibility when advanced economies can withdraw from signed deals after payments, integration work and delivery schedules have already been set.

Kuala Lumpur is seeking more than RM1 billion in compensation after Norway revoked approvals linked to the Kongsberg Defence & Aerospace missile system intended for Royal Malaysian Navy littoral combat ships. Malaysia says it had paid about 95 per cent of the contract value before the reversal, which disrupted plans for weapons installation on ships already designed around the Norwegian system.

The dispute centres on the Naval Strike Missile, an anti-ship weapon produced by Kongsberg and selected under Malaysia’s long-delayed littoral combat ship programme. The original 2018 contract was valued at about €124 million and covered missiles for six vessels, while Malaysia has also referred to a second arrangement involving two additional naval platforms.

Norway has defended the decision as part of tightened export controls over sensitive defence technology. Its foreign ministry has said exports of some Norwegian-developed systems will be limited to allies and closest partners because of changes in the European and global security environment. Oslo has also said it values relations with Malaysia and wants continued dialogue, while Kongsberg has maintained that licensing decisions rest with Norwegian authorities.

Kuala Lumpur’s anger has deepened because the decision came after years of planning around the missile system. Officials say the financial claim includes direct payments and indirect costs, including work needed to remove or modify equipment already fitted to accommodate the system, integration of replacement weapons and retraining of personnel.

Prime Minister Anwar Ibrahim has called Norway’s action unilateral and unacceptable, warning that signed contracts cannot be treated as disposable commitments. He has said the move could damage confidence in European defence suppliers if commercial and strategic agreements can be reversed without adequate safeguards for the buyer.

Khaled’s remarks have widened the argument from a bilateral dispute to a broader critique of defence procurement norms. He said smaller countries must ask whether powerful states can invoke shifting policy considerations after contracts have been finalised, leaving customers to absorb operational, financial and strategic consequences.

Malaysia’s immediate concern is the impact on the littoral combat ship programme, one of the country’s most politically sensitive defence projects. The programme began in 2011 with an initial plan for six vessels at RM6 billion but became mired in delays, cost escalation and allegations of mismanagement. The government later revived the project after a review, reducing the number of vessels to five.

The first ship, originally expected earlier, is now due for delivery in December 2026. The absence of the missile system adds another layer of difficulty to a programme already under scrutiny, though the defence ministry has said construction will continue while alternative missile options are assessed.

Replacing the Naval Strike Missile is not a simple procurement switch. Any substitute must be compatible with the combat management system, launch architecture, ship design, maintenance regime and training pipeline. Defence analysts have warned that retrofitting could raise costs and extend integration timelines, especially when warship systems have been configured around a specific weapon package.

Malaysia is also weighing the diplomatic cost of the dispute. Norway is not among Malaysia’s largest defence partners, but the controversy could influence how Kuala Lumpur assesses future purchases from Europe and NATO-aligned suppliers. Khaled has indicated that trust, technology transfer and support for Malaysia’s self-reliance goals will carry greater weight in future procurement decisions.

The episode comes as Southeast Asian states are modernising naval capabilities amid busier sea lanes, contested maritime zones and growing demand for precision strike systems. Malaysia has sought to strengthen its maritime posture while avoiding alignment with any major bloc, making reliability of suppliers a central issue in long-term planning.