BANKING - 2018 NOVEMBER

November 1

6th Tranche Of Electoral Bonds Sale Kicked Off announced by the finance ministry

Electoral bonds are being pitched as an alternative to cash donations made to political parties as part of efforts to bring transparency in political funding. 
State Bank of India (SBI), in the sixth phase of sale, has been authorised to issue and encash electoral bonds through its 29 authorised branches.

 RBI Clears Re-Appointment of AdityaPuri as HDFC Bank CEO 

HDFC Bank had announced that the RBI had approved the re-appointment of AdityaPuri as MD and CEO of the bank for another two years.
Puri has been with HDFC Bank since 1994, making him the longest-serving head of any private bank in the country. 

Kirloskar group gets RBI nod for NBFC biz; to invest Rs. 1,000 crore.
It has received licence from the Reserve Bank to launch a non-banking finance company (NBFC), Kirloskar Capital, which will be headed by industry veteran VimalBhandari.
It will invest Rs 1,000 crore in the proposed NBFC, which will be a fully-owned subsidiary of Kirloskar Oil Engines, and will focus on providing growth capital to industry with an initial focus on small and medium enterprises (SMEs).

ICICI Bank announced partnership with ‘Amazon Pay’ to launch a co-branded credit card, ‘Amazon Pay ICICI Bank Credit Card’.
This co-branded card is available on Visa platform.
ICICI Bank:
 Headquarters: Mumbai.
 MD & CEO: Mr. SandeepBakshi.
 Chairman: Mr. Girish Chandra Chaturvedi.
 Tagline: Hum Hain Na!

November 2

Fitch ratings affirmed IDBI Bank’s long-term issuer default rating (IDR) at ‘BB+’ and its viability rating (VR) at ‘ccc’.

The government is diluting its 79 per cent stake in IDBI Bank to below 51 per cent, while LIC plans to raise its shareholding in IDBI Bank to 51 per cent from 14.9 per cent.
Fitch:
 Headquarters: New York City, US.
 CEO: Paul Taylor.
IDBI Bank:
 Headquarters: Mumbai.
 Founded: 1964.
 MD & CEO: Mr. Rakesh Sharma.

RBI allowed banks to support bonds sold by non-banking finance/housing companies.
 This shall be done by maintaining the exposure limit of the bank within the aggregate PCE exposure limit of 20 percent.
The bonds by the NBFCs shall have maturities not less than 3 years.
RBI:
Founded: 1st April 1935.
 Headquarters: Mumbai.
24th Governor: Dr. Urjit Patel.

November 4

The Securities & Exchange Board of India (SEBI) cut listing time for an IPO to 3 days from 6 at present.

The Securities and Exchange Board of India (SEBI) has initiated the process to reduce the timeline for public issues from the current six days to three days in a phased manner by making it mandatory for intermediaries to provide retail investors the option of bidding through the Unified Payments Interface (UPI).
In the first phase starting January 1st, 2019 market intermediaries have been directed to make available the UPI mechanism for retail investors along with the existing framework and processes to complete the initial public offer (IPO) process in T+6 days.
Securities and Exchange Board of India (SEBI):
Chairman: Ajay Tyagi.
Headquarters: Mumbai.

November 5

Reserve Bank initiated steps to set up a wide-based digital Public Credit Registry (PCR). To capture details of all borrowers, wilful defaulters and also the pending legal suits.
This will enable the banks and financial institutions to get 360 degree profile of existing and prospective borrowers on a real-time basis.
RBI:
 Founded: 1st April 1935.
 Headquarters: Mumbai.
 24th Governor: Dr. Urjit Patel.

November 6

The Central and Andhra Pradesh governments and the World Bank have signed the loan agreement for $172.20 million.
To enhance agricultural productivity, profitability, and climate resilience of poor and marginalised farmers in Andhra Pradesh.

The agreement for the project was signed by:

Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance,
PS Raghavaiah, State Project Director, APIIATP on behalf of the Government of Andhra Pradeshand
Junaid Ahmad, Country Director, World Bank India.

Andhra Pradesh:
Chief Minister: N. Chandrababu Naidu.
Governor: E.S.L. Narasimhan.
Capital: Amravati.
Parks: Sri Venkateswara National Park, Rajiv Gandhi National Park, Papikonda National Park.

World Bank:
Membership: 189 countries.
Headquarters: Washington D.C., USA.
Secretary-General: Jim Yong Kim.
CEO: KristalinaGeorgieva.

Paytm ties up with 2 government departments in Karnataka
Paytm, one of the largest digital payments company has tied up with two government departments for seamless payment experience.
One97 Communications Limited, which owns Paytm, in a press release that it has partnered with theDirectorate of Electronic Delivery of Citizen Services (EDCS) and DPAR (Department of Personnel and Administrative Service) to facilitate seamless payment experience.

November 7

RBI relaxes ECB norms for infra companies
Reserve Bank of India (RBI) has liberalised norms governing external commercial borrowings (ECBs)for infrastructure creation.The provisions have been reviewed and decision has been taken in consultation with Central Government.
RBI has reduced minimum average maturity required for the ECBs in the infrastructure space raised by eligible borrowers to3 years from earlier 5 years.
Additionally, it also has reduced average maturity requirement for mandatory hedging to 5 years from earlier10 years.
The move comes amid concerns surrounding availability of funds following liquidity squeeze and the difficulties being faced by non-bank lenders, especially those facing asset liability issues due to heavy reliance on short-term funding for long-term assets.
Reserve Bank of India plans payments ombudsman
The Reserve Bank of India is likely to establish an ombudsman for digital payments by March to take the load off the increasing number of complaints currently being handled by the banking ombudsman.
Given the rapid adoption of digital payments across the country, RBI in its Annual Report for 2017-18 had said it was considering a plan to establish a separate ombudsman to handle consumer complaints related to digital transactions. The central bank is presently in the process of creating a scheme for establishing offices across the country for the digital payments ombudsman.

November 8

Centre to infuse Rs 3,054 crore into Allahabad Bank as investment
The Centre will infuse Rs 3054 crore as capital into state-run Allahabad Bank.
According to a notification to the National Stock Exchange, the bank says that it has received a communication from Finance Ministry regarding a fresh capital infusion of Rs 3054 crore.
The infusion will be made through the preferential allotment of equity shares (Special Securities/ Bonds) of the Bank during the financial year 2018-19.

November 11

Enforcement Directorate (ED) flagged the RBI about the activities of a Karnataka-based firm charging it with running a ponzi scheme “in the name of Islamic banking or halal investment”.
The name of the firm is Ms Ambidant Marketing Private Limited, which is run by one S Fareed Ahmed and S Afaq Ahmed.
Islamic banking or halal investment is illegal in India.
Halal Investments are financial products which are deemed adherent to Shariah. Interest is strictly forbidden in Islam. This refers to investing funds or doing transactions that are compliant with the Islamic Sharia law.

Reserve Bank of India cancelled the certificate of registrations of as many as 31 non-banking finance companies (NBFCs) for unspecified reasons.
A majority 27 of the 31 companies which lost their licences and a majority of voluntary application for licence cancellation are also from Bengal.
Bengal is followed by Uttar Pradesh, which has seen four NBFC licence cancellations.
There are more than 12,000 registered NBFCs in the country under the regulation of the RBI.

November 13

UCO Bank seeks Rs 7000 crore capital from the government.
State-run lender UCO Bank has requested the government to inject Rs 7000 crore to prop up capital, which has gone below the regulatory minimum. 
The bank's capital adequacy ratio slipped to 7.57% against the stipulated 9% while its net loss widened to Rs 1136 crore in the September quarter owing to fresh slippages worth Rs 2000 crore. Net loss was Rs 623 crore in the year ago period. 
About UCO Bank:
CEO: Atul Kumar Goel
Headquarters: Kolkata
Founded: 6 January 1943
Tagline: Honors Your Trust

November 14

Karnataka Bank has opened its first-ever digital branch in the country in Bangalore.
This happens to be the 821st branch of the bank
About Karnataka Bank:
CEO: Mahabaleshwara MS
Headquarters: Mangalore
Founded: 1924
Tagline:Your Family Bank, Across India.

Union Bank of India on 11 Nov 2018 celebrated its 100th Foundation Day in Mumbai.
Established on November 11, 1919, the bank’s corporate office in Mumbai was inaugurated by Mahatma Gandhi.
About Union Bank Of India:
CEO: Rajkiran Rai G.
Headquarters: Mumbai
Founded: November 11, 1919
Tagline: Good people to bank with.

IDFC First Bank, the new entity formed after the amalgamation of Capital First with IDFC Bank, is set to launch operations from the New Year.
Post-merger, Rajiv Lall, Managing Director, and CEO of IDFC Bank, will take over as the non-executive Chairman of the new entity.
V. Vaidyanathan, Chairman and Managing Director, Capital First who is also a veteran banker, will become MD and CEO of the new entity.

November 16

Reserve Bank of India pumped in Rs 12,000 crore into the system through purchase of government securities.
This was done via conduction of an Open Market Operations for an aggregate amount of Rs 120 billion through multi-security auction using the multiple price method.
In the announcement it stated that RBI would purchase government dated securities maturing in 2021, 2022, 2024, 2027 and 2033 bearing various interest rates.
The eligible participants submitted their offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.
About RBI:
Founded: 1st April 1935.
Headquarters: Mumbai.
24th Governor: Dr. Urjit Patel.

Sunil Mehta the chairman of a bankers' panel incorporates Sashakt India Asset Management Company (AMC) for large NPAs.
Under the project, the committee had to float an AMC and an AIF to resolve non-performing assets (NPAs) over Rs 500 crore.
The Mehta committee comprises representatives of all major banks, including State Bank of India (SBI).
There are about 200 bad loan accounts which owe more than Rs 500 crore each to banks at present, with a total exposure of about Rs 3.1 lakh crore.

The Reserve Bank of India has imposed a Rs. 3 crore fine each on two lenders Deutsche Bank and Jammu and Kashmir Bank.
For non-compliance of various norms, including asset classification and know your customer norms.
The RBI states that the penalties on these two banks have been imposed taking into account the failure of the banks to adhere to the directions issued by it.

Karnataka Bank has introduced a new savings bank (SB) scheme ‘KBL SB-TASC’.
Under the nationalwide CASA campaign the bank intends to open more than 4.18 lakhs current and savings accounts with the active involvement of its 8000 plus workforce in all the 823 branches across the country.

November 17

Union Government has inked $300 million Loan Agreement with Asian Development Bank (ADB) to support lending by India Infrastructure Finance Company Limited (IIFCL).
The loan will enhance availability of long-term finance for PPP projects, improve operational capacity of IIFCL.
ADB funding is expected to fund at least 13 sub-projects through IIFCL, involving roads and renewable power generation, under the last tranche.

Union Government has inked $169 Million Loan agreement with Asian Development Bank (ADB) for Tamil Nadu Urban Flagship Investment Program.
It is first tranche of $500 million multi-tranche financing to provide water and sanitation services in Tamil Nadu.
About Asian Development Bank (ADB):
Headquarters: Mandaluyong, Philippines
President: Takehiko Nakao
Founded: 19 December 1966

IndusInd Bank has launched a credit card Named Nexxt Credit Card which is India’s first Interactive card with buttons.
The main feature of this card is that it provides customer the choice of payment options at the point of sale (POS) such as Credit, EMI with four tenure options which are 6, 12, 18, 24 Months and Using Accumulated Reward Points.
About IndudInd Bank:
CEO MD of IndusInd Bank – Mr. Romesh Sobti
Headquarter of IndusInd Bank – Mumbai

November 19

Sunil Mehta committee incorporated ‘Sashakt India AMC’ for large NPAs over 500 crore rupees.
Sunil Mehta committee released the statement for formation of an asset management company (AMC) for resolving large bad loans.
The name of the AMC is: Sashakt India Asset Management.
It was announced by Sunil Mehta, the chairman of a bankers’ panel working on faster resolution of stressed assets in public sector banks on the sidelines of a CII-CFO summit held in Mumbai.

November 20

The Reserve Bank of India’s decision to extend the timeline for the full implementation of Basel 3 guidelines by a year is a credit negative for Indian public sector banks (PSBs), according to Moody’s Investors Service.
The RBI’s board decided to ease capital pressure on banks by allowing them one more year to meet the Capital Conservation Buffer (CCB).
The transition period to implement the last tranche of 0.625 per cent under CCB has been extended by one year - up to March 31, 2020. Now, banks can achieve CCB of 2.5 per cent of their risk-weighted assets by March-end 2020.
RBI: Headquarters - Mumbai, Governor - Urjit Patel, Deputy Governors - BP Kanungo, NS Vishwanathan, Viral Acharya, Mahesh Kumar Jain

Ujjivan Small Finance Bank, a wholly owned subsidiary of Ujjivan Financial Services Limited, launched personal loan facility for salaried professionals making.
It the first small finance bank in India to offer this.
The facility is a new product to the existing loans offered by the bank – Home Loan (for purchase of property and construction) and Business loans.
Ujjivan Small Finance Bank:
Headquarters: Bangalore, Karnataka
Tagline: We believe in your belief
MD and CEO: Ittira Davis

November 22

RBI decided to set up an expert committee to examine the central bank’s Economic Capital Framework (ECF) to enable transfer of reserve worth Rs 3.6 lakh crore to Government of India.
The membership and terms of reference of the committee will be jointly determined by the government and the RBI.
This decision was made after a key demand of the government on the same for transfer of a surplus of Rs 3.6 lakh crore, more than a third of the total Rs 9.6 lakh crore reserves of the central bank to the government.
About RBI:
Headquarters: Mumbai
24th Governor: Urjit Patel

November 24

As per the Chief Vigilance Commissioner (CVC) guidelines and the State Legislature, the Jammu and Kashmir bank was brought under the purview of the Right to Information (RTI) act.
The decision was taken by the State Administrative Council (SAC) chaired by Governor Satya Pal Malik.
As per the proposal, hereafter, the J&K Bank Limited will be treated as a Public Sector Undertaking (PSU).
It is the only state government promoted bank in the country, with the Jammu and Kashmir government currently holding 59.3% of the shares.

1st offshore wind investment conference held in New Delhi, During which the European Investment Bank (EIB) and State Bank of India (SBI) agreed to cooperate on financing renewable energy and wind energy projects across India.
This collaboration will be under the dedicated EUR 600 million renewable energy financing programme which supports large-scale solar investment across the country.
EIB also approved a new line of credit worth USD 100 million to Yes Bank to boost private investment in clean energy projects.
European Investment Bank (EIB):
Headquarters: Luxembourg
President: Werner Hoyer

HDFC ERGO General Insurance set up a remote sensing lab for crop insurance.
This will help in early detection of information and will be used to alert the farmers.
The lab will work accurately for assessing the risks of the insurers and will also be able to give early warnings about the losses.
HDFC ERGO General Insurance:
Headquarters: Mumbai.

November 25

The government will infuse INR 42,000 crore in the state-owned banks by March-end and the next tranche would be released as early as December 2018, according to a senior finance ministry official.
The government earlier pumped INR 11,336 crore in five PSBs - PNB, Allahabad Bank, Indian Overseas Bank, Andhra Bank and Corporation Bank - to improve their financial health.
The government had announced the INR 2.11-lakh crore capital infusion programme in October 2017.

November 26

Non Banking Financial Company (NBFC) sanctioned Mudra loans under PMMY, grew faster than banks in FY 2018: reported by MUDRA
This is the first time that the bad loan data has been released by Micro Units Development & Refinance Agency (Mudra).
NBFCs sanctioned approximately Rs 27,000 crore of Mudra loans during the fiscal 2018 as against Rs 92,492.68 crore sanctioned by public sector banks.
AU Small Finance Bank was the top lender among Small Finance Banks (SFBs) and the State Bank of India (SBI) was the top lender among state-run banks followed by Canara Bank and Punjab National Bank.
About Micro Units Development and Refinance Agency Bank (MUDRA):
Headquarters: Mumbai
Founded: 8 April 2015

November 27

The Reserve Bank relaxed norms for external commercial borrowings (ECBs) by reducing the mandatory hedging provision to 70 per cent from the current 100 per cent.
The relaxed norms will apply to the ECBs with a maturity period between three and five years.
On a further review of the extant provisions, it has been decided, in consultation with the Government of India, to reduce the mandatory hedge coverage from 100 per cent to 70 per cent for ECBs raised under Track I of the ECB framework.
External commercial borrowing (ECBs): ECBs are loans in India made by non-resident lenders in foreign currency to Indian borrowers. They are used widely in India to facilitate access to foreign money by Indian corporations and PSUs (public sector undertakings).

November 28

RBI launches survey to create a profile Of India’s Startup Sector.
The RBI launched a Survey on India’s Startup Sector (SISS) with an aim to capture profiles of these businesses and get firsthand information on their profitability, among other factors.
The survey comes amid calls to the RBI to do more for easing access to credit for the country’s small and medium enterprises.
According to the RBI, the survey forms have been mailed to all startup entities registered with the Department of Industrial Policy and Promotion.
Department of Industrial Policy and Promotion (DIPP):
Department of Industrial Policy & Promotion was established in the year 1995, and was reconstituted in the year 2000 with the merger of Department of Industrial Development.
The department functions under the Ministry of Commerce and Industry, Government of India.

Country’s largest bank State Bank of India (SBI) has increased fixed deposit (FD) rates for some select maturity period.
The FD below Rs 1 crore with maturity period of one to two years SBI is offering 6.8% interest rate, as compared to 6.7% earlier. The interest rate for senior citizens also goes up to 7.30% from 7.2% earlier.
Similarly, SBI has hiked interest rate on FDs with maturity period between two years and three years. SBI is now offering 6.80% as compared to 6.75% earlier. The interest rate for senior citizens also goes up to 7.30% from 7.25% earlier.
About State Bank of India (SBI):
Chairperson: Rajnish Kumar
Headquarters: Mumbai
Founded: 1 July 1955

November 29

Second quarter GDP growth likely to slow to 7.5-7.6 per cent: SBI Ecowrap
SBI Ecowrap’ report released by the State Bank of India, the GDP growth in the September quarter (which is the 2nd quarter) is expected to decelerate to 7.5-7.6 per cent over the previous three-month period.
The reasons for this declining trend is due to slowdown in rural demand.
In the previous quarter of April - June quarter of 2018-19, the GDP was 8.2 per cent at constant prices (2011-12).
State Bank Of India (SBI):
Chairperson: Rajnish Kumar
Headquarters: Mumbai
Founded: 1 July 1955

November 30

Non-food bank credit grows at 15.6%: RBI
Reserve Bank of India data, total credit growth from banks to the commercial sector grew at 15.6 per cent to Rs 97.32 lakh crore from previous Rs 84.22 lakh crore
It is the highest growth since demonetisation of Rs 500 and Rs 1000 notes in November 2016.


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