BANKING - 2017 AUGUST

August 1

Airtel Payment Bank ties up with HPCL for ATM services
Airtel Payments Bank has partnership with Hindustan Petroleum Corporation Limited (HPCL), to give further boost to digital payments in the country and to add to customer convenience.
All Airtel Payments Bank customers would be able to access a range of convenient banking services at these 14,000 fuel stations like opening new accounts, make cash deposits and withdrawals facility, and transfer money.
This will add to the depth and reach of Airtel Payments Bank’s retail based network that leverages over 300,000 Airtel retail outlets as banking points.
Airtel Payments Bank customers will also be able to make secure and convenient digital payments for fuel purchases across 14,000 HPCL fuel stations by using their mobile phones.

August 2

Reserve Bank announces its third bi-monthly policy review of current fiscal
RBI kept its key interest rate unchanged at 6.25 per cent, while lowering projections for inflation and striking a less hawkish tone in a policy statement.
Repo Rate reduced by 25 basis points to 6.00%. Earlier it was 6.25%.
Reverse Repo Rate reduced by 25 basis points to 5.75%. Earlier it was 6.00%
Marginal Standing Facility Rate reduced by 25 basis points to 6.25%. Earlier it was 6.50%
Bank Rate reduced by 25 basis points to 6.25%. Earlier it was 6.50%
Cash Reserve Ratio (CRR) unchanged at 4%.
Statutory Liquidity Ratio (SLR) unchanged at 20%.

SBI, Samsung collaborate to advance Digital India initiative
The State Bank of India (SBI) and Samsung India announced the availability of Samsung Pay for higher variants of SBI debit card, giving a major boost to government's 'Digital India' initiative.
Samsung Pay works on 2.5 million Point of Sale (PoS) Card machines across the country through its Magnetic Secure Transmission (MST) technology. Samsung Pay is currently available on a wide range of Samsung smartphones, enabling consumers to make offline payments without the need for a physical Card.
Bank aims to be the Banker to Digital India and has been at the fore-front of all digital initiatives in the banking space.
Samsung Pay consumers holding eligible SBI Debit Cards can avail a flat Rs. 100 cashback on minimum transaction amount of Rs. 500. The cardholder can avail maximum cashback of Rs. 500 per card, during the offer period from August 1 to 31.

August 3

RBI Widens Basel-III-Compliant Asset Base Of Banks
Ahead of the implementation of the stringent capital requirements under the Basel-III regime from 2019, the Reserve Bank amended a slew of previous regulations on the same, helping banks shore up their capital buffers and improves liquidity coverage ratios.
The new amendments widen the assets of banks such as the excess CRR; excess G-secs holdings in SLR; and also excess g-secs under marginal standing facility, which all would now be included in the stock of liquid assets without any limit as also without applying any haircut.
Liquid stock will also include marketable securities issued/guaranteed by foreign sovereigns which have only 0 per cent risk weight under the Basel II standardised approach for credit risk; actively traded repo or cash markets operations with zero risks, reserves held with foreign central banks in excess of the reserve requirement.

SBI to mobilise Rs 2,000 cr via Basel-III bonds
Indias largest lender State Bank of India plans to raise Rs 2,000 crore by allotting Basel-III compliant bonds to various investors.
The committee of directors for capital raising accorded its approval today to allot 20,000 AT1 Basel-III compliant non-convertible, perpetual, subordinated bonds in the nature of debentures... aggregating Rs 2,000 crore to various investors.
The bonds will carry a coupon rate of 8.15 per cent per annum with a call option after 5 years or the anniversary date thereafter.

August 4

Karnataka Bank to offer 5% for saving deposits over Rs 1 crore, 3% for deposits below Rs 1 lakh
Karnataka Bank has raised interest rates on savings bank account for large balance above Rs 1 crore to 5% while for small balances below Rs 1 lakh, the bank has reduced it to 3%. Earlier the private bank was charging 4% irrespective of the amount in the account.
The bank will offer 4% on deposits in savings account between Rs 50 lakhs and Rs 1 crore. For deposits between Rs 1 lakh and Rs 50 lakhs, the bank will offer 3.5%. The reduction in rate will be with immediate effect.
India signs loan agreement with the Asian Infrastructure Investment Bank (AIIB) for Financing of US$ 329 million for Gujarat Rural Roads Project
The Loan and Project Agreements for Asian Infrastructure Investment Bank (AIIB) lending of US$ 329 million for Gujarat Rural Roads Project have been signed between the Government of India/ Government of Gujarat and the AIIB.
The Loan Agreement was signed by Shri Sameer Kumar Khare, Joint Secretary (MI), Department of Economic Affairs (DEA), Ministry of Finance on behalf of the Government of India and Dr. D.J. Pandian, Vice President and Chief Investment Officer, AIIB, on behalf of the AIIB.
The objective of the project is to improve the rural road connectivity and accessibility (by providing all weather road connectivity) to 1,060 villages in all the 33 districts in Gujarat state benefiting about 8 million people. The project will also benefit the service providers such as public transport operators, educational institutions, hospitals, local markets and traders.
Lok Sabha passes bill to raise Nabard’s capital to Rs 30000 cr
A bill to enable exit of RBI from Nabard and increase authorised capital of the development institution six times to Rs 30,000 crore was passed by the Lok Sabha.
The National Bank for Agriculture and Rural Development (Amendment) Bill, 2017 also seeks to amend certain clauses in the light of reference of the Micro, Small and Medium Enterprises (MSMEs) Development Act, 2006 in the proposed legislation.
The law is one of the "major step" towards doubling farmers income by 2022. This law would benefit farmers.
Lok Sabha passes Banking Regulation Bill for non-performing assets
The Lok Sabha has passed the Banking Regulation (Amendment) Bill, 2017 introduced last month to replace the existing ordinance promulgated in May this year to empower the Reserve Bank of India to deal with stressed assets.
The ordinance had provided for more powers to the RBI to deal with stressed assets. No one can claim the right of equality in not paying banks back. RBI has taken up some difficult cases.

August 5

Kotak Bank’s new forex service Kotak Remit
Kotak Mahindra Bank has launched Kotak Remit — an Aadhaar-based integrated outward forex remittance solution for both customers and non-customers.
The 24x7 forex remittance service offers a completely paperless process that enables users to register online using Aadhaar and PAN numbers, and initiate remittances instantly.

Canara Bank hits overseas bond market with $400-mn issue
Canara Bank is in the international bond market with a $400 million issue as part of its $2 billion medium-term note programme.
Canara Bank is in the international debt market with a benchmark dollar bond issue that will have a tenor of 5 years. The lender is likely to raise $400 million through the bond sale issue, which will be drawn through its London branch and will be listed on the Singapore Stock Exchange.
The Bangalore-based bank has hit the Forex debt market after a long gap. Foregin rating agency Moody’s has assigned a Baa3 rating to the issue, which is on par with the sovereign rating since the bank is majority owned by the government.
The drawdown will be carried out from its London branch and the bonds will be listed on the Singapore Stock Exchange.

Companies to disclose bank defaults within one day: SEBI
The Securities and Exchange Board of India (SEBI) has made it mandatory for companies to disclose any instance of a default on the payment of interest or repayment of principal to banks or financial institutions within a day of the default.
The move by the Securities and Exchange Board of India (Sebi) comes against the backdrop of Rs10 trillion of stressed assets piling up in the banking system.
Corporates in India are even primarily reliant on loans from the banking sector. Many banks are presently under considerable stress on account of large loans to the corporate sector turning into stressed assets and non-performing assets (NPAs).

August 6

IndusInd Bank becomes sixth bank to cross Rs1 trillion market cap
IndusInd Bank Ltd became the sixth listed Indian bank to join the elite club of lenders that have seen their market capitalisation soar past the Rs1 trillion mark.
HDFC Bank Ltd is the country’s most valued bank with a market cap of Rs4.6 trillion, followed by State Bank of India (Rs 2.64 trillion), ICICI Bank Ltd, Kotak Mahindra Bank Ltd (Rs 1.90 trillion each) and Axis Bank Ltd (Rs1.22 trillion).
Shares of IndusInd Bank have surged over 50.36% so far this year with investors lapping up the stock on the hopes of continued strong core performance, higher credit growth margins and stable asset quality.

August 7

PNB customers to pay higher charges for non-credit services
PNB customers will have to pay charges for depositing cash above Rs. 5,000 in a non-base branch even if it is located in the same city. Currently, the customers of Punjab National Bank (PNB) are levied charges only for depositing cash over Rs. 25,000 at a non-base branch within the same city.
It has been decided to revise the non-credit related charges (exclusive of GST) with effect from September 1, 2017 for cash deposit above Rs. 5,000 at other than base branch within the same city.
A customer will have to pay Re 1 per Rs. 1,000 for above Rs. 5,000 cash deposit or part thereof with a minimum of Rs. 25 per transaction.
At an outstation branch, cash deposit up to Rs. 5,000 will be free of cost from September 1, which at present is limited for Rs. 25,000.

Mastercard, PayPal expand partnership into Asia Pacific
Mastercard and PayPal have extended their partnership into Asia Pacific to enhance the consumer experience and make Mastercard a clear payment option with PayPal.
The deal will expand PayPal's presence at the point of sale and enable Masterpass for Braintree merchants in the region.
Additionally, both companies will collaborate to create opportunities to leverage Mastercard's new payment flow technologies, providing increased value to Mastercard cardholders, financial institutions, and PayPal customers.
PayPal will also have the opportunity to give consumers and small businesses across Asia Pacific the ability to cash out funds held in their PayPal accounts to a Mastercard debit card.

August 8

PNB introduces biometric attendance register
Punjab National Bank (PNB) has introduced biometric attendance in the place of the existing system of signing attendance in the attendance register. The biometric attendance system has already been integrated with the in-house human resources management system.
The biometric attendance device will capture the attendance along with the time of marking the attendance. Every employee shall, immediately on arrival and also while leaving the branch/office, mark his/her attendance in the biometric attendance device.
The new system of marking attendance will be implemented in branches/offices with immediate effect.

Syndicate Bank to raise Rs. 4,500-crore capital this fiscal
Syndicate Bank is planning to raise Rs. 4,500 crore this financial year (2017-18) to bolster its share capital base. The bank this fiscal is planning to raise Rs. 2,500 crore under common equity (CET-1), Rs. 1,000 crore under AT-1, and Rs. 1,000 crore Basel-III compliant bonds.
Each raising will be determined by the market. Rs. 500 crore of Basel-III compliant tier-II bonds was raised on May 3 to strengthen the capital position of the bank.

August 9

IDFC Bank partners with Zeta for e-payments solution
For promoting an e – payments solution, private lender IDFC Bank has partnered with digital payments brand Zeta.
The venture was initiated to launch ‘IDFC Bank Benefits’-a payment solution for the corporates that digitally record their employee spends and claims, making the documentation convenient and paperless.
The digital solution comprises an IDFC Bank Benefits Card and Zeta app which puts together allowances and reimbursements ensured by an employer into one preloaded card.
As per the offering, the employees will be provided with an option to access the Benefits Card via the Zeta app on their mobile or via the web. This enables the employee to keep a track on spends, entitlement limits and submit claims, digitally, while on-the-move.

ICICI Bank launches instant credit card facility with limit up to Rs 4 lakh
ICICI Bank announced the launch of Instant Credit Card Service, which will enable its savings account customers to get a credit card instantly, in a completely digital and paperless manner. This is the first-of-its-kind offering in the Indian banking industry.
Using the Instant Credit Card Service, pre-qualified customers can apply and get credit card number and other important details online, using which, he/she can immediately start shopping online, without having to wait for the physical card to arrive.
Through the Instant Credit Card Service, which is available round-the-clock and on all days, a customer can get a credit card instantly with a credit limit of up to Rs. 4 lakh based on pre-checked bureau scores.

Vijaya Bank opens self-employment training institute in Indore
Vijaya Bank has disbursed loan sanction letters to beneficiaries who were trained at the Vijaya Bank Self Employment Training Institute (VIBSETI) in Bhenslay Village, Indore, Madhya Pradesh.
The bank has sponsored three VIBSETIs at Mandya and Haveri in Karnataka and Indore in Madhya Pradesh, where free residential training is provided to low-income groups/ rural youth. So far, more than 50,000 candidates have been trained, 70 per cent of whom have set up their own micro enterprises.
VIBSETI trains youth for starting their own enterprises. Kishore Sansi, Managing Director and CEO, Vijaya Bank, inaugurated the new premises recently.

August 10

SoftBank's Vision Fund invests USD 2.5 billion in Flipkart
A tech fund backed by Japan's SoftBank has invested close to $2.5 billion in leading Indian online marketplace Flipkart through primary and secondary share purchases.
Together with the $1.4 billion Flipkart raised earlier this year from China's Tencent, online marketplace eBay and software giant Microsoft, it will now have more than $4 billion of cash.
The SoftBank fund becomes one of Flipkart's biggest shareholders after this investment, which is part of the same funding round that had raised the $1.4 billion.

Axis Bank cuts savings account interest rate by 50 bps
Axis Bank has cut savings account interest rate by 50 bps to 3.5 per cent on balances of up to Rs. 50 lakh.
The bank will continue to offer 4 per cent interest per annum on Says will continue to offer 4 per cent interest per annum on savings account balance of Rs. 50 lakh and above.

Syndicate Bank cuts MCLR by 5-10 bps
Syndicate Bank has pared its marginal cost of funds based lending rate (MCLR) by 5-10 basis points in certain maturity buckets.
MCLR for six months and one year will be 8.3 per cent (8.35 per cent now) and 8.5 per cent (8.60 per cent), respectively, with effect from August 10.
MCLR for all other maturities have been left unchanged.


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