Page 24 - Banking Finance June 2025
P. 24
PRESS RELEASE
HDFC Bank Launches 'Biz+ Current Accounts' to Empower Indias
Growing MSME Enterprises
HDFC Bank, Indias leading private sector bank in Current Account deposits announced the launch of its new Biz+ Current
Accounts, a reimagined suite of Current Account offerings designed to meet the evolving needs of Indian businesses. The
range of accounts aims to empower businesses by bringing the entire Bank to the customer from day one.
Each Biz+ Current Account comes equipped with core benefits including cash handling services, seamless digital banking
platforms and dedicated Bank/Relationship Manager support along with bundled solutions that address the full spectrum of
banking needs for businesses.
A standout highlight of the new offering for new to bank current account customers is the inclusion of comprehensive business
and payment protection insurance coverage from day one for the first year. This helps business owners safeguard their
enterprises against unforeseen risks.
The Bank has introduced a tiered structure under the Biz+ Current Accounts, offering four distinct variants designed to
cater to different stages of a business journey.
A 1% Increase in REER Could Boost Indias Exports by 1.07% in the
Long Run: Exim Bank Study
Exim Banks study indicates that a 1% increase in REER (indicating appreciation of the Indian Rupee) translates into a
1.07% increase in Indias real exports to the world. While conventional wisdom suggests that currency depreciation boosts
exports by making goods more competitively priced in global markets, the counterintuitive finding of the study suggests
that a weaker rupee may not necessarily deliver the anticipated boost to Indian export growth. This is because of the
high import dependence of India's manufacturing, particularly in export-oriented sectors.
The study finds that the import intensity of raw materials used in Indias manufacturing sector was estimated at nearly
33.4% in FY23, while export orientation was lower at only 6.5%. Nearly 56.2% of India's merchandise exports are from
industries where the import intensity of raw material is greater than the overall manufacturing average of 33.4%. Rupee
depreciation tends to increase the cost of import of inputs in these industries, leading to higher production costs and
reduction in export price competitiveness. Thus, a stronger rupee can enhance export competitiveness and improve the
trade balance, by lowering the cost of imported inputs.
The study further highlights the strong sensitivity of Indias exports to change in global demand, with a 1% rise in real
GDP of the world estimated to boost Indias real exports by 4.15% in the long term. Notably, moderate exchange rate
volatility is found to support export performance, with a 1% increase in volatility linked to a 0.20% rise in exports, indicating
the sectors resilience and ability to secure risk-adjusted premium pricing.
The study also indicates that different sectors are affected by currency fluctuations in varying ways. In sectors with both
high exports and high import dependence like electronics, chemicals, and petroleum products, a depreciation in nominal
exchange rate may generally boost the value of exports. However, high import dependence in these sectors often leads
to an increase in import costs, thereby offsetting gains from exports and resulting in larger trade deficits. In gems and
jewellery sector as well, trade deficit may widen due to depreciation in nominal exchange rate, due to the high import
dependence in the sector. Food and agro-based products is one sector where depreciation could lead to both increase in
exports and improvement in the trade balance, plausibly on account of the low import dependence in this sector.
The study titled Impact of Exchange Rate Movements on Indias Exports was released by Shri M. Nagaraju, Secretary,
Department of Financial Services, Government of India during an event jointly organised by Exim Bank and the Asian
Development Bank (ADB), titled Seminar on Business Opportunities with the Asian Development Bank, on April 30,
2025, in New Delhi.
22 | 2025 | JUNE | BANKING FINANCE
