BANKING AWARENESS JUNE 2017 2nd WEEK
BANKING AWARENESS JUNE 2nd WEEK 2017 BY B.K SHARMA
1.One million dollar fund established to bolster BRICS media
- The Brazil-Russia-India-China-South Africa (BRICS) grouping has signaled its intent to expand its footprint in the global media space, with the injection of a one million dollars fund.
- During an inaugural session of the BRICS Media Forum, president of Xinhua News Agency and executive president of the Forum, announced that the news agency will invest 1million U.S. dollars for boosting media cooperation in the five-nation grouping.
- The BRICS media forum is the result of a joint initiative by Xinhua News Agency, Brazil's CMA Group, Russia’s Sputnik News Agency and Radio, The Hindu group of publications from India, and South Africa's Independent Media.
2.IDBI Bank only PSB to get ‘high’ rating for code compliance
- According to the Code Compliance Rating of banks done by the Banking Codes and Standards Board of India (BCSBI) 2017, only one (unchanged from the previous survey conducted in 2015) out of 26 public sector banks and eight (nine in the previous survey) out of 17 private sector banks got ‘high’ rating for their adherence to code compliance.
- IDBI Bank was the only public sector bank that got ‘high (H)’(85 and above score out of 100) rating in two successive surveys.
- The eight private sector banks that got ‘high’ rating are — Axis Bank, DCB Bank, HDFC Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, RBL Bank and YES Bank.
- The three foreign banks — Citibank, HSBC and Standard Chartered Bank — that were surveyed got ‘high’ ranking.
- The code compliance rating, may be considered an indicator of the level of implementation of important code provisions at the grassroot level of a bank.
3. RBI Issues New Rs500 banknotes with inset letter ‘A’
- The Reserve Bank of India (RBI) announced that it has issued Rs 500 denomination notes with inset letter A.
- They will be bearing the signature of Urjit R Patel.
- However, the old notes with inset letter E, which were introduced after Prime Narendra Modi’s demonetisation drive in November 2016 will continue to remain the legal tender.
4. Central Bank of India under RBI's corrective action lens
- Public sector Central Bank of India has been placed under the RBI's watchlist on Prompt Corrective Action (PCA) owing to high bad loans and negative return on assets.
- IDBI Bank, Indian Overseas Bank, UCO Bank and Dena Bank have already come under the PCA initiated by the Reserve Bank of India, which is a noose-tightening on fresh loan disbursal as well as dividend distribution.
- PCA is a framework devised by RBI that monitors key areas like capital, asset quality and profitability of banks.
5. Yes Bank partners with TerraPay for faster international remittance
- Private sector lender Yes Bank has partnered with mobile payments switch TerraPay to enable real-time money transfer to bank accounts in India.
- Powered by TerraPay’s global clearing and settlement service, the partnership will make it faster and convenient for consumers to send money to any bank account.
- This means that Indian migrants worldwide can walk into TerraPay’s partner outlet anytime and send money to their family and friends back home, instantly in their bank account.
- India is the world’s largest recipient of remittances.
6. IRDAI takes over management of Sahara Life Insurance
- The Insurance Regulatory and Development Authority of India (IRDAI) has taken over the administration of Sahara India Life Insurance, a first of its kind move in the insurance sector.
- It has named RK Sharma, General Manager, IRDAI, as administrator to manage the affairs of the insurer.
- The current board of Sahara India Life is headed by Chairman OP Srivastava. Sanjay Agarwal is whole-time director and CEO.
- Lucknow-based Sahara India Life Insurance was the first wholly Indian owned life insurance company in the private sector which launched its operations in 2004 with an initial paid-up capital of Rs 157 crore
7.India provides $318m credit to develop Sri Lanka railway sector
- The Government of Sri Lanka's Ministry of Finance has signed an agreement to receive $318m credit from the Government of India for rail development works.
- Indian Prime Minister Narendr Modi initially declared the fresh line of credit (LoC) during his official visit to Sri Lanka in March 2015.
- The new credit line will used to implement various developments under the supervision of Ministry of Transport and Civil Aviation of Sri Lanka, which has prioritised the improvement of passenger transportation facilities in order to attract more passengers to use rail services.
BANKING AWARENESS JUNE 2nd WEEK 2017 BY B.K SHARMA
8.RBI Announces Second Bi-Monthly Monetary Policy
- The Reserve Bank (RBI) of India in its Second Bi-monthly Monetary Policy kept its repo rate unchanged at 6.25 percent and reverse repo rate unchanged at six percent respectively.
- The monetary policy committee (MPC), which is headed by RBI governor Urjit Patel kept the rates unchanged amid most analysts expectation of maintaining a status quo on the policy rate, which stands at 6.25 per cent.
- However, the central bank lowered economic growth projection to 7.3 percent from 7.4 percent for FY18.
- The apex bank cut the statutory liquidity ratio (SLR) by 50 bps to 20%.
9.Axis Bank issues biodegradable prepaid gift cards
- Axis Bank Ltd has announced biodegradable prepaid gift cards on the occasion of World Environment Day.
- The cards will be acceptable at all domestic merchant outlets and online portals.
- Biodegradable plastics can break down safely into their raw materials and do not release harmful substances. They can also be recycled.
NOTE--
10.Wal-Mart Tops Fortune 500 List
- For the fifth year in a row, Wal-Mart Stores, Inc. (WMT) has taken the top spot in Fortune magazine's ranking of the top 500 companies.
- The Arkansas-based company, which is also the world's largest retailer, reported revenue of $485.8 billion last year.
- That figure is more than double the $223.6 billion revenue of second-place company on the list, Warren Buffett's Berkshire Hathaway Inc.
11.Consumer price based inflation falls to all time low
- Consumer price based inflation (Retail inflation) fell to an all-time low of 2.18 % in May this year.
- This number is the lowest inflation rate that the country has witnessed ever since it started publishing an economy-wide consumer price index (CPI) in the year 2012.
- The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services.
- CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.
12.Stressed assets of Indian banks will increase through 2019: Moody's
- According to the rating agency Moody's report, Stressed assets of Indian banks will increase through 2019 and capitalization will remain a key credit weakness for state-owned lenders.
- Infusion by the government remains the only viable source for shoring up the capital base and the asset quality outlook for the banking sector will remain weak.
- Gross Non-Performing Assets will increase to between 8.2 and 8.5 lakh crore rupees, or to between 9.9 and 10.3% of total advances by 2017-18-end, from 7.7 lakh crore rupees at the end of March 2017.
- It estimates that the 11 Moody’s rated public-sector banks will require external equity capital of between 70,000 and 95,000 crore rupees.
13.K G Karmakar, Gauri Shankar appointed directors of IPPB
- K G Karmakar and Gauri Shankar were appointed as Independent Directors of India Post Payments Bank (IPPB).
- The Appointments Committee of the Cabinet has approved their appointment to the post on the board of directors of the bank for a period of three years.
- The IPPB has been incorporated as a public sector bank under the Department of Posts with 100 per cent equity of the government of India
NOTE-
- IPPB was launched on January 30th, 2017 in Ranchi and Raipur
- For now, IPPB is offering Savings account up to a balance of Rs 1 Lakh, along with digitally enabled payments and remittance services of all kinds between individuals
- IPPB offers 3 distinct accounts- 1. Regular Account – Safal, 2. Basic Savings Bank Deposit Account (BSBDA) - Sugam, and 3. BSBDA Small - Saral.
- The Tagline of IPPB is Aapka bank, aapke dwaar.
- IPPB incorporated as a public limited company under the Department of Posts, Govt. of India on 17th August 2016.
14.Canara bank ties up with New India Assurance
- Canara Bank has inked pact with the state-owned general insurer The New India Assurance Co to sell policies through its branches.
- The Bengaluru headquartered public sector lender said this corporate agency distribution tie-up will make available general insurance products from over 6,000 Canara Bank branches in the country.
- The tie-up will offer personal products such as motor insurance, home insurance, health insurance, travel insurance besides commercial policy coverages like fire insurance, marine insurance and engineering insurance.
- New India Assurance Co Ltd is a 100 % Govt owned multinational general insurance company operating in 28 countries and headquartered at Mumbai.
- Mr. G. Srinivasan is the present Chairman cum Managing Director of New India Assurance Company.
- Canara Bank was founded as 'Canara Bank Hindu Permanent Fund' in 1906.
- Headquarter of Canara bank is in Bengaluru.
- Shri. T.N. Manoharan is the Chairman of Canara Bank.
BANKING AWARENESS JUNE 2nd WEEK 2017 BY B.K SHARMA
15.World Bank approves $500 million for Afghanistan
- The World Bank has approved financing worth more than 500 million dollars for Afghanistan to support a string of projects to boost the economy.
- The package will help Afghanistan with refugees, expand private-sector opportunities for the poor, boost the development of five cities, expand electrification, improve food security and build rural roads etc.
- The World Bank is an international financial institution that provides loans to countries of the world for capital programs and its headquarters located in Washington, D.C.
16.K G Karmakar & Gauri Shankar appointed directors of IPPB
- K G Karmakar and Gauri Shankar have been appointed as the new Independent Directors of India Post Payments Bank (IPPB) for a period of three years.
- The Appointments Committee of the Cabinet has approved their appointment to the post on the board of directors of the bank.
- The IPPB has been incorporated as a public-sector bank under the Department of Posts with 100% equity of the government of India.
17. LVB appoints BK Manjunath as part-time chairman
- Private sector lender Lakshmi Vilas Bank has appointed B K Manjunath as a part-time chairman for three years.
- Subsequent to Reserve Bank of India approval, the Bank board "co-opted" Manjunath as additional director in the category of non-executive and independent director.
- A practising chartered accountant for the last 25 years, Manjunath's expertise is in project financing, business administration and management.
NOTE--
- LVB is Headquartered in Chennai, Tamil Nadu.
- LVB was founded in 1926.
18. QIP credit positive for SBI: Moody’s
- State Bank of India’s Rs. 15,000 crore capital raise via qualified institutional placement is credit positive for the bank as it strengthens its capitalisation and supports credit growth, particularly given the increasing requirements for equity under Basel III.
- Using State Bank of India’s capital position as of March 2017, Moody’s estimated that the capital raise will increase the bank’s common equity Tier 1 (CET1) ratio by about 100 basis points to about 10.8 per cent.
- The additional capital will support the bank’s solvency as its balance sheet expands.
19. YES Bank to fund start-ups at EDII
- Entrepreneurship education and incubator, Entrepreneurship Development Institute of India (EDII), announced tying up with the private sector lender, YES Bank, to finance start-ups supported by the institution.
- Under the tie-up, YES Bank will provide a loan of Rs. 50 lakh to EDII supported start-up, Green Ideology, under the CGTMSE programme (Credit Guarantee Fund Trust for Micro and Small Enterprises).
20. SEBI permits options trading in commodity futures
- Securities and Exchange Board of India, SEBI, permitted options trading in commodities to deepen the market but will permit each exchange to launch options on futures of only one commodity initially.
- Options could be launched on futures contract of only those commodities that are among the top five in terms of total trading turnover value of previous 12 months.
- On 28 September 2015 the Forward Markets Commission (FMC) as merged with the Securities and Exchange Board of India (SEBI).
BANKING AWARENESS JUNE 2nd WEEK 2017 BY B.K SHARMA
21. SEBI gets nod for MoU with Iran, EU counterparts
- The Union Cabinet recently gave its nod for Securities and Exchange Board of India (SEBI) to enter into two separate memoranda of understanding (MoU) with securities market regulators of the European Union and Iran.
- These MoUs are expected to strengthen cooperation between India and the respective countries on matters pertaining to securities market.
NOTE-
- The Securities and Exchange Board of India was established on April 12, 1992, in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
- Ajay Tyagi has been appointed as the chairman of SEBI in February 2017.
22. RBI identifies 12 loan accounts constituting 25% of gross NPAs for immediate resolution under bankruptcy law
- The RBI’s Internal Advisory Committee has identified 12 accounts each having more than 5,000 crore rupees of outstanding loans.
- It accounts for 25 % of the current gross Non Performing Assets for immediate referral and resolution under the bankruptcy law.
- The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy.
Note-
- Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors.
23.Vikram Limaye appointed as the new MD & CEO of National Stock Exchange
- Now, Vikram Limaye has to resign from the Supreme Court-appointed Committee of Administrators (CoA) to oversee the Board of Control for Cricket in India.
- He will approach the Supreme Court in July when it reopens from vacation to relieve him from his duties at the committee of administrators(CoA) of BCCI.
Note:
- Chitra Ramkrishna quit as MD & CEO in December 2016.
- Vikram Limaye, a finance veteran started his career with Arthur Andersen in Mumbai in 1987 while pursuing his chartered accountancy.
- He has also worked with Ernst & Young and Citibank
24. Vijaya Bank set to develop 100 digital villages
- Vijaya Bank is going to develop one hundred digital villages across various states of the country initiative to promote digital banking among the rural population.
- The Bank is the only public sector financial institution to develop digital villages with the focus on rural areas.
- The digital villages will give the services like the internet Wi-Fi connectivity, mobile payment facilities, ATM cards and online banking among others.
25. CSO to change GDP base year to 2017-18 from 2011-12: Gowda
- The Statistics Ministry is set to change the base year of national accounts to 2017-18 from 2011-12 after completion of the household consumer expenditure survey and labour force data by the end of 2018.
- Earlier in 2015, the Central Statistics Office (CSO) under the Statistics Ministry had changed the base year for tabulating the Gross Domestic Product or size of economy to 2011-12 from 2004-05.
- Last month, the CSO has changed the base of Index of Industrial Production (IIP), which measures factory output, to 2011-12 from 2004-05. Besides, the base year of Wholesale Price Index (WPI) has also been changed to 2011-12 from 2004-05.
BANKING AWARENESS JUNE 2nd WEEK 2017 BY B.K SHARMA
- According to RBI, India’s foreign exchange (Forex) reserves have increased by $2.404 billion to touch a lifetime high of $381.167 billion in the week that ended on June 2.
- In the previous week, the reserves had declined by $547 million to $378.763 billion. The increase was due to increase in foreign currency assets (FCAs).
- Indian Overseas Bank (IOB), the Lead Bank for Thiruvananthapuram district, has launched the Retail Mart, a retail lending concept, in Kerala's capital city.
- The exclusive facility that handles retail products has started functioning at the main branch of the bank at Statue Junction in Thiruvananthapuram.
- The Retail Mart has been designed with an aim to complete all the pre-release formailities at the customer’s door step and sanction quality retail loans at a competitive rate of interest with a minimum turnaround time.
28.RBI Governor to appear before House panel on July 6 
29. IRDAI takes over management of Sahara Life Insurance
- RBI Governor Urjit Patel will appear before a Parliamentary panel on July 6 during which he is expected to be questioned about total deposits made in banks post government’s demonetisation move.
- This is the fourth time Patel has been summoned by the Parliamentary Standing Committee (PSC) on Finance, headed by Congress MP and former Union Minister Veerappa Moily.
29. IRDAI takes over management of Sahara Life Insurance
- The Insurance Regulatory and Development Authority of India (IRDAI) has taken over the administration of Sahara India Life Insurance, a first of its kind move in the insurance sector.
- R.K. Sharma, general manager, IRDA has been appointed as the administrator with “immediate effect” to manage Sahara India Life Insurance Company.
- The current board of Sahara India Life is headed by Chairman OP Srivastava. Sanjay Agarwal is whole-time director and CEO.
NOTE--
- Lucknow-based Sahara India Life Insurance was the first wholly Indian owned life insurance company in the private sector.
- It is promoted by Sahara Pariwar Group headed by Subrata Roy.
BANKING AWARENESS JUNE 2nd WEEK 2017 BY B.K SHARMA
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