BANKING - 2018 MAY

May 1

UPI money transactions cross 100-crore mark within two years
The number of transactions on the National Payment Corporation of India’s (NPCI) Unified Payment Interface (UPI), which is a mobile-only digital payment ecosystem, has crossed the 100-crore mark within two years of its launch.
The latest figures released by the NPCI show that the UPI ecosystem handled 19 crore transactions amounting to Rs. 27,021.85 crore in April alone.
Launched in August 2016, the cumulative number of UPI transactions since the beginning stood at 112 crore at the end of April.

May 2

High NPA ratio proves PSBs did not make enough provisions: RBI
Public sector banks did not make enough provisions as seen from their high net non-performing asset (NPA) ratio of 6.9 per cent (against 2.2 per cent and 0.6 per cent for private sector and foreign banks, respectively) at the end of March 2017.
The gross NPA ratio of public sector banks increased from 3.8 per cent at March-end 2013 to 5.4 per cent at March-end 2015 and further to 12.5 per cent at March-end 2017, while that of private sector banks increased from 1.9 per cent to 2.2 per cent to 3.5 per cent over the same period.

May 3

SBI consolidates advertising account with Rediffusion-Y&R
State Bank of India (SBI) has consolidated its advertising account for the first time, with the entire business going to WPP’s Rediffusion-Y&R.
The largest public sector bank earlier had a panel of seven agencies, including heavyweights like Adfactors Advertising, Interpub, DDB Mudra, RK Swamy, AdSyndicate, Crayons and Mode, handling its creative business.
Industry insiders estimate that SBI will spend around Rs 100 crore across print, television and digital advertising in 2018.

May 4

RBI allows FPIs to invest in treasury bills
Easing foreign investment rules, the Reserve Bank permitted FPIs to invest in treasury bills issued by the central government.
However, the foreign portfolio investors (FPIs) will have to ensure that their exposure in government securities as well as corporate bonds of less than one year maturity will remain below 20 per cent.
In a notification, the RBI also asked the FPIs to bring down their total exposure in debt instruments (G-secs, state development loans or, corporate bonds) with one-year maturity to below 20 per cent within six months.

May 6

RBI to banks: Share foreign exchange data with DRI
The Reserve Bank of India has asked banks authorised to deal in foreign exchange (Authorised Dealer-I Banks) to share data with the Directorate of Revenue Intelligence (DRI).
This directive comes in the wake of the government making rules (in December 2017) to exercise powers conferred by the relevant sections of the Customs Act, requiring a banking company to furnish, electronically, information relating to foreign exchange transactions made or received by any person to the receiving authority (DRI).

10-year bond rallies post RBI's Rs 10,000 crore debt purchase announcement
Reserve Bank of India (RBI) announced that, it will buy Rs 10,000 crore of government bonds through open market operation (OMO).
RBI made this decision after failing to sell all the debt it had offered to bidders. It was the third consecutive week when the RBI couldn’t sell everything on offer which lead to a spike in bond yields.
The decision is based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward.
This will infuse more liquidity into the system against the backdrop of persistently high bond yields.
The 10-year government bond yield increased to 7.75 percent from 7.74 percent before the auction result was announced. It had ended at 7.73 per cent on 3rd May 2018.
Eligible participants should submit their offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

Growth in bank deposits falls to five-decade low
Bank deposit growth fell to a five-decade low in fiscal year ended March 2018 but attractive of other savings methods such as mutual funds and insurance reduced banking competitiveness.
A total deposit of Rs. 114 lakh crore was reported in the last fiscal. The data showed that cumulative deposits in the banking system grew a mere 6.7% in 2017-18, the lowest since fiscal 1963.
During November-December 2016, banks received Rs. 15.28 lakh crore as people deposited high denomination currency notes that were withdrawn from circulation. As a result, aggregate deposits in the fiscal ended March 2017 grew 15.8% to Rs. 108 lakh crore. This pace of growth has now come down by 6.7% with deposits aggregating Rs. 114 lakh crore.
Total mutual fund assets under management have increased 22% to Rs. 21.36 lakh crore in March 2018 from Rs. 17.55 lakh crore in March 2017.

May 8

SBI General Insurance net rises to Rs. 396 crore
SBI General Insurance has registered a 159 per cent increase in net profit at Rs. 396 crore in 2017-18 against Rs. 153 crore in the previous year.
This also includes an extraordinary income of Rs. 131 crore. It also secured underwriting profit of Rs. 32 crore in 2017-18 compared to an underwriting loss of Rs. 197 crore in 2016-17.
Its gross written premium increased by 36 per cent to Rs. 3,553 crore in 2017-18, and its solvency ratio improved to 2.54 per cent in the last fiscal.
The assets under management for 2017-18 increased to Rs. 5,292 crore against Rs. 4,362 crore in the previous fiscal.

May 9

YES Bank to launch water-security programme
YES Bank is all set to roll out a capacity building project with farmers in Haryana and Rajasthan under its ‘Livelihood and Water Security’.
Agriculture productivity has come under pressure during the last couple of years because of climate change and water security.
This initiative is aimed at improving farmers’ access to finance, ensuring effective use of digital banking resources, and imparting good agricultural practices.

May 11

United Bank of India seeks to raise Rs. 1,500 crore to expand
United Bank of India plans to raise Rs. 1,500 crore in one or more tranches through a qualified institutional placement (QIP), public issue or rights issue, to fund its growth needs during this fiscal.
The bank’s board approved raising of equity capital, and the proposal will be subject to shareholders’ approval in the ensuing annual general meeting.
The bank expects to grow by 12-14 per cent during the current fiscal, and the capital would be used to fund its growth needs.

May 12

Fino Payments Bank launches digital suite
In a bid to expand its footprint in the digital banking and payments space, Fino Payments Bank has launched a digital services suite.
The suite includes BPay app, which was launched in September 2017 for digital transition of customers from assisted to self-service mode.
In addition to BPay, the suite includes Unified Payment Interface (UPI), BHIM app, which has proved to be a game changer in peer-to-peer and merchant payments.
The suit also includes net banking facility, a Digi Savings Account which can be opened online only by providing Aadhaar number and PAN card and FasTag to make digital payments at national highway toll plazas.


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