Investors returned to gold ETFs in 2nd week after booking profits in 1st week

by Hansraj Agrawal | Feb 20, 2026 | Business

Exchange traded fund concept. A bull and bear besides the golden text ETF. istock photo for BL
| Photo Credit:
aprott

Inflows into physically-backed gold exchange-traded funds retumed in the second week of February, after investors booked profits in the first week. However, inflows were lower than outflows.

According to data from the World Gold Council (WGC), assets under management (AUM) decreased to $655 billion in the week ending February 6, compared with $668.7 billion. However, it increased to $664.2 billion in the week ending February 13. While investors encashed $3.87 billion in the first week, they investors $2.34 billion in the second week.

Investments in gold ETFs matched were in line with the movement of precious metals in the global market. Gold soared to a record high of $5,608 in the fourth week of January before paring its gains. Investors began to switch from gold to other assets such as bonds after US Donald Trump nominated Kevin Warsh as the next US Fed chief.

Hawkish Warsh impact

Gold is currently ruling at $5,030.77 an ounce, gaining nearly a per cent on Friday following geopolitical tensions over the US-Iran standoff.

Warsh is perceived by the market as hawkish in his stance on interest rates, leading to traders moving out of precious metals, which were seen as the best investment bet till then in view of a falling dollar, tariff wars and geopolitical tensions.

Europe, which began to witness outflows from ETFs in January last week (encashing $942 million), continued to book profits in the first week of this month. The outflow in Europe was $3.08 billion, but inflows increased to $914 million in the second week.

Outflows and inflows in North America were almost similar, with investors encashing $692.6 million in the first week and returning to invest $625 million in the second week.

Indian trend

Gold holdings fell by about 30 tonnes in the first week compared with the week ending January 30 to 4,114.2 tonnes before rising 15 tonnes in the second week. Europe witnessed the biggest fall of 21.2 tonnes, followed by North America at 5.8 tonnes.

Though details of the gold ETFs trend in India is limited, provisional data show that AUM dropped from $19.8 billion in the last week of January to $18.5 billion. In the second week, there was a marginal rise to $18.6 billion.

Investors in the UK topped encashment in ETFs, taking away $1.91 billion in the first week, following a $363 million outflow in the last week of January. In the second week, inflows in the UK were $272 million.

Cautious Japanese

Outflows in the US were the second highest at $655 million in the first week, followed by Germany ($522 million), France ($474.3 million) and China ($413 million). In the second week, investors in South Africa and Turkey chose to book profits, but other countries saw investments resuming.

In the second week of this month, investors in the US and China led the return, investing $567. 9 million and $405.7 million, respectively. Japanese, whose encashment was minimal when bullion prices crashed in the first week, were the third-highest investors, chipping in with $345.3 million.

Inflows in the UK, Germany and Switzerland were $272.1 million, $245.2 million and $217.9 million, respectively. France also saw an investment of $186 million. Details on Indian ETF flows are awaited.

Published on February 20, 2026

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Tamil Nadu revenue for FY23 at ₹2.5 lakh crore: CAG report

by Hansraj Agrawal | Feb 20, 2026 | Business

Tamil Nadu’s total revenue the financial year 2022-23 stood at ₹2,43,749 crore, according to a report from the Comptroller and Auditor General (CAG) on State Revenues, Government of Tamil Nadu

Out of this, tax revenue accounted for ₹1,50,223 crore and non-tax revenue of ₹17,061 crore.

The report was placed before the Legislature on 20 February 2026.

The revenue raised by the State Government in 2022-23 was 69 per cent of the total revenue receipts as compared to 65 per cent in 2021-22.

₹38,731 crore was received from the Government of India as State’s share of divisible Union taxes and ₹37,734.40 crore as grants-in-aid. Taxes on sales and trade and Goods and Services Tax (₹1,12,966.24 crore) formed 75 per cent of the tax revenue of the State.

Published on February 20, 2026

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As trade clarity boosts orders, Sri Lanka to drive growth for SP Apparels Ltd

by Hansraj Agrawal | Feb 20, 2026 | Business

SPAL said it is actively allocating UK and EU orders to Sri Lanka to optimise landed costs and lead times
| Photo Credit:
SIVA SARAVANAN S

Avinashi-based garment exporter SP Apparels Ltd (SPAL) is positioning its Sri Lanka operations as a major growth driver from FY27, leveraging duty-free access to the UK and European Union and rising customer interest amid global sourcing realignment.

The company’s management said that its Sri Lanka platform, expanded through the acquisition and integration of four factories, has reached an installed capacity of about 1,650 machines and is on track to achieve normalised operations from the first quarter of FY27. Meaningful revenue contribution is expected to begin from the second quarter of the next financial year, once utilisation stabilises.

“Customers increasingly view India and Sri Lanka as a single, integrated sourcing base for SPAL,” Chairman and Managing Director P Sundararajan said during the company’s post-results conference call. “Sri Lanka offers duty-free access to the UK and EU, skilled labour, and flexibility across product categories, making it a natural extension of our India operations.”

The renewed momentum follows recent trade developments, including the India–EU free trade agreement and progress on India–UK negotiations, which have improved visibility for global apparel buyers. While India continues to face tariffs in the US market, Sri Lanka’s duty-free status for UK and EU exports has strengthened its attractiveness for European programmes.

SPAL said it is actively allocating UK and EU orders to Sri Lanka to optimise landed costs and lead times, while retaining flexibility to route production between India and Sri Lanka depending on customer requirements, he said.

The company has also added new customers through its Sri Lanka operations, with initial orders expected to commence in Q1 FY27 and scale up from Q2. Three of the four factories are expected to reach near-full utilisation by Q3 FY27, while the fourth unit may take an additional six months to stabilise.

Material and man power

Beyond basic knitwear, SPAL is using Sri Lanka to expand into higher-value and more complex categories. The management highlighted the country’s capability in woven garments, fashion wear, and specialised products, supported by a multi-skilled workforce familiar with diverse fabrics such as polyester, modal and blends.

“Sri Lanka factories are versatile and can handle everything, from babywear to women’s fashion and specialised garments,” Sundararajan said. The recent policy changes now allow duty-free re-export to the UK even when fabrics are sourced from outside the region, including China, he added.

In January 2025, SPAL entered Sri Lanka, which now provided revenue of ₹37 crore in the first nine months of FY26 and is expected to close the year at about ₹50 crore, he said.

SPAL has reiterated its consolidated revenue target of ₹2,000 crore by FY27, with Sri Lanka playing a central role in servicing incremental EU and UK demand as global buyers diversify sourcing away from higher-risk geographies.

“Our diversified footprint across India and Sri Lanka positions us well to capture market share as sourcing strategies recalibrate,” said Sundararajan. Sri Lanka expansion does not require significant fresh capital expenditure, as additional machines can be added within existing facilities, he added.

On the location advantage that Sri Lanka provides, the company in the investor presentation said it has efficient raw material transfer with overnight shipments from Tuticorin Port to Colombo Duty free trade to Europe and UK markets. There is abundant labour availability with easy access to skilled labour and is historically acclaimed for its skilled craftsmanship and quality in knitted and woven products.

Published on February 20, 2026

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SBI can provide acquisition financing support of up to ₹94,000 crore to India Inc, says Chairman Setty

by Hansraj Agrawal | Feb 20, 2026 | Business

State Bank of India Chairperson Challa Sreenivasulu Setty
| Photo Credit:
SHASHANK PARADE

State Bank of India (SBI) can provide acquisition financing support of up to ₹94,000 crore to India Inc, going by the Reserve Bank of India’s Amendment Directions for Commercial Banks on Credit Facilities, according to Chairman Challa Sreenivasulu Setty.

As per the directions, banks can provide acquisition financing to Indian companies, listed as well as unlisted, of up to 20 per cent of their tier-1 capital. Total bank financing cannot exceed 75 per cent of the acquisition value.

Speaking to reporters on the sidelines of the Indian Banks’ Association’s 78^th annual general meeting, Setty said initially, SBI will tread the acquisition financing space in a calibrated manner, beginning with listed companies. The bank will be taking up the standard operating procedures to the Board for its approval.

Further, India’s largest bank is in talks with Japanese banks to jointly bankroll acquisition financing.

As per the amendment directions, banks have put in place a Board approved policy on acquisition finance, suitably incorporating the underwriting benchmarks that address the structural complexities of such transactions, in particular relating to exposure limits, equity contribution, leverage multiples, and cash-flow certainty.

A few months back, Setty observed that SBI has experience in acquisition financing in the overseas markets. So, it will leverage on this experience to build an acquisition financing portfolio in India.

According to SBI’s Economic Research Department, M&A deals in FY24 were valued at over $120 billion (₹10 lakh crore). Assuming debt component of 40 per cent of M&A and 30 per cent of this could be financed by banks, this translates into a potential credit growth of ₹1.2 lakh crore.

Published on February 20, 2026

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Banks should give loans to small businesses at cheaper interest rates: DFS Secretary

by Hansraj Agrawal | Feb 20, 2026 | Business

M Nagaraju, Secretary, Department of Financial Services
| Photo Credit:
ANI

Department of Financial Services Secretary Nagaraju M on Friday exhorted banks to give loans to small businesses and the self-employed at cheaper interest rates as they are backed by credit guarantees from government institutions

He noted that banks chase corporates, offering loans at 7-8 per cent. But the loan offers are declined.

“We keep asking whether they (corporates) require any money. They are declining. But those who want, we lend at maybe around 7 per cent,” Nagaraju said in his speech at IBA’s 78^th AGM.

“Let’s say, a maid-servant, a rickshaw-puller, driver…they are the people who require loans. And we lend at between 9 and 11 per cent….And NBFCs, they lend to them at a little more than 20 per cent.

“Can we do something? For small business loans, we have institutions that guarantee (the loans). So, can we reduce the borrowing cost for these borrowers?” he said.

Nagaraju observed that India’s financial system is still largely bank dominated. But, bank credit-to-GDP ratio stands at just 57 per cent. This is significantly lower than economies such as China, which has 199 per cent credit-to-GDP ratio; the US at 147 per cent and Japan at 153 per cent.

“Clearly, there is a vast gap that we must bridge as we look ahead to Viksit Bharat 2047, as we aim for a nominal GDP to grow to $30 trillion from $3.7 trillion now. We envisage a per capita income of $18,000-20,000 compared to $2,800….To meet aspirations of 2047, total credit to private non-financial sector must be expanded to at least 130 per cent,” he said.

Published on February 20, 2026

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Gold, silver firm up on West Asia tension

by Hansraj Agrawal | Feb 20, 2026 | Business

Gold and silver bullion. Finance 3d illustrtration
| Photo Credit:
Inok

The precious metal complex gained on Friday with gold topping the key $5,000 an ounce market and silver crossing $80 an ounce.

In India, gold prices jumped by Rs 496 to Rs 155,066 per 10 grams against Rs 154,570 on Thursday on the back of prices firming up trend in the global markets, according to the Indian Bullion and Jewellers Association of India.

Silver prices increased by Rs 5,552 to Rs 250,314 per kg against Rs 244,772 as the tension between the US and Iran ntensified.

Haven demand

Kaynat Chainwala, AVP Commodity Research, Kotak Securities said spot gold extended gains on Friday as escalating geopolitical tensions in the West Asia revived -haven demand.

Gold prices surged briefly, testing $5,020 an ounce, then pared gains to drop below $5,000-mark (and later rebounding to $5,030), as dollar index climbed to a three-and-a-half-week high of 98.1 after weekly jobless claims fell to 206K and the Philadelphia Fed Business Outlook jumped to 16.3, both reinforcing signs of economic resilience, said Chainwala.Markets continue to weigh geopolitical risks against evolving Federal Reserve policy expectations.

Investors remain cautious ahead of key economic releases, including PCE inflation, Q4 GDP, and flash PMI data. A softer-than-expected inflation reading could boost expectations for additional rate cuts later this year, supporting bullion prices. Conversely, a hotter inflation print may reinforce higher-for-longer rate expectations, potentially capping further upside in precious metals.

10-day window

Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities said gold futures are edging higher as the US-Iran standoff keeps risk sentiment elevated.

However, with the US President Trump reportedly giving Iran a 10-day window for a deal, price action could swing sharply either way over the weekend. Any diplomatic breakthrough may trigger profit booking, while escalation could push bullion into another spike, he said.

Published on February 20, 2026

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