BANKING - 2017 June

June 1

India signs loan agreement of 36 million dollar with World Bank.
India signed a loan agreement of 36 million dollar with the World Bank for Himachal Pradesh Public Financial Management Capacity Building Programme.
The project aims to improve the efficiency of public expenditure management and tax administration in Himachal Pradesh.
The Program is expected to contribute to enhancing efficiency of key departments, improving budget credibility, strengthening systems and procedures to improve fiscal discipline, improving revenue administration to increase fiscal space, and targeted organizational reforms including human resource reforms.
The agreement was signed by Joint Secretary of Department of Economic Affairs Raj Kumar and the Bank’s Country Director Junaid Kamal Ahmad.

June 2

RBI initiates prompt corrective action against Dena Bank.
The Reserve Bank of India (RBI) had initiated prompt corrective action (PCA) at the Dena Bank because of high net non-performing assets (NPA) and negative return on assets.
The lender, which made the announcement in a statement to the stock exchange, is the third bank after IDBI Bank and UCO Bank where PCA has been initiated under a revised framework.
RBI has mandated a maximum net NPA ratio of 6 per cent under the PCA framework introduced in April, and breaching it could result in the central bank asking lenders to sell assets, cut unsecured exposure and so on.
Net NPA ratio at the end of the fourth quarter for the bank stood at 10.66 per cent from 9.52 per cent in the third quarter. Return on assets stood at -1.02 per cent and -0.67 per cent for financial year 2015-16 and 2016-17 respectively.

Bank of India to focus on one-time settlement to recover bad loans.
Weighed down by sticky loans and net losses, the state-run Bank of India has decided to go for one-time settlements (OTS) of loans with errant borrowers as one of the key recovery strategies.
The lender, with a pile of non-performing assets running to Rs. 52045 crores, is ready to take the OTS route for all borrower segments.
Banks are allowed to settle NPA accounts when recovery becomes difficult, and to avoid a lengthy and tedious legal process.

June 3

SBI, World Bank finance Rs. 400 crore solar projects.
State Bank of India and the World Bank announced that they had financed 100 MW of rooftop solar projects worth Rs. 400 crore in India.
The World Bank aid helped the public sector SBI lower the lending rate to project developers. ''The support from World Bank has helped lowering the interest rate by 3-3.5 per cent from the 11-12 per cent lending rate for a medium-sized solar roof top project''.
SBI has availed of a loan of $625 million from the World Bank for on-lending to viable Grid-Connected Rooftop Solar PV (GRPV) projects undertaken by developers, aggregators and end-users, for installation of rooftop solar systems.
These will be installed on the rooftops of commercial, institutional and industrial buildings.

BoI conducts 'Star Mahotsav'.
Bank of India conducted a mass-contact programme, 'Star Mahotsav', across its branch network.
The thrust was in contacting every customer at their doorstep for recovery of bad loans, disbursement of retail loan, including housing and vehicle loan, disbursement under MSME and agriculture, and promotion of its products including debit/ credit cards, PoS machines, internet banking, etc.
The response was good in this zone (Coimbatore). Bank disbursed about Rs. 46 crore under retail, MSME and agriculture advances, and could recover close to Rs. 3 crore from borrowers.

June 4

India GDP growth to remain flat at 7.1 per cent in 2017-18: HSBC.
According to HSBC report India's economic growth is expected to remain flat at 7.1 per cent in current fiscal as investment is still weak and government spending might not be as high given the fiscal consolidation.
HSBC's below-consensus view is that growth will remain flat at 7.1 per cent in 2017-18. India's growth rate slipped to 6.1 per cent in the January-March quarter and 7.1 per cent during 2016-17.
The slowing momentum in GDP growth rate is expected to continue as investment is still weak, while government spending may not remain as high given the fiscal consolidation path and the rise in exports over the last few months are showing some signs of moderation.
HSBC noted that a negative output gap is expected to keep inflation at low levels and the Reserve Bank is likely to acknowledge this in the upcoming policy review meet.

PSBs plan to mobilise Rs. 58,000 crore from capital markets this fiscal.
Public sector banks, including SBI, Bank of Baroda and IDBI Bank, plan to raise Rs. 58,000 crore through equity dilution during the current fiscal to meet Basel-III norms and clean up their balance sheets.
Leading the pack, country's largest lender SBI plans to raise Rs. 15,000 crore through share sale and expects this to complete by the year-end, probably through a qualified institutional placement (QIP).
Bank of Baroda and Central Bank of India plans to raise Rs. 6,000 crore and Rs. 65,000 crore from capital markets, respectively.

June 5

World Bank keeps 2017 global growth forecast at 2.7 per cent.
World Bank maintained its forecast for global growth in 2017 and 2018 unchanged at 2.7 per cent and 2.9 per cent, respectively, as manufacturing and trade are picking up and confidence is improving.
A bright spot in the outlook is a recovery in trade growth to 4 per cent (in 2017) after a post-financial crisis low of 2.5 per cent last year.
The recovery in trade growth in 2017 is supported by stronger demand from major advanced economies, increased trade flows to and from China, and a diminished drag from weak demand from commodity exporters.
However, it expected the advanced economic growth to slow to 1.8 per cent in 2018 and 1.7 per cent in 2019, in line with its forecasts in January.

ICICI Bank commissions 200 solar-powered ATMs.
ICICI Bank commissioned over 200 solar powered ATM sites in the last one year as part of its efforts to reduce carbon footprint and use more clean energy.
ICICI Bank has reduced its overall energy consumption in large offices and branches from 198 million units in 2013-14 to 164 million units in 2016-17, saving 34.2 million units in last three years.
This is equivalent to the amount of energy that can power 42,000 rural households for an entire year. Additionally, the bank has commissioned over 200 solar powered ATM sites.
There has been reduction in the bank's overall carbon emission by nearly 40,000 tonnes due to these efforts, which is equivalent to planting 1,94,000 trees to offset the volume of carbon di-oxide emissions.

June 6

Vijaya Bank Plans to develop 100 Digital Villages.
Vijaya Bank is going to develop as many as 100 digital villages in various States of the country as part of its initiative to promote digital banking among the rural population.
In less than a month, the project of 100 digital villages will be inaugurated. In those villages, Bank will provide Internet, free Wi-Fi connectivity, mobile payment facilities, ATM cards, online banking and others besides educating the villagers through door-to-door campaign.
Bank will also open bank accounts to all the eligible villagers including children and encourage them to make transactions digitally.

India signs $39 million pact with World Bank for Assam project.
India signed a USD 39.2 million (over Rs. 251 crore) loan agreement with the World Bank for the 'Citizen Centric Service Delivery' project in Assam.
The programme size is USD 49 million, of which USD 39.2 million will be financed by the Bank and the remaining amount will be funded out of the state budget.
The programme's duration is five years. The objective of the project is to improve access to the delivery of selected public services in Assam. The Project adopts an integrated approach to improving access and accountability.
The loan agreement was signed by Raj Kumar, Joint Secretary, Ministry of Finance, on behalf of the Government of India and Hisham Abdom, Manager, Operations (India) on behalf of the World Bank.

SBI to organise mega farmers meet on June 8.
Ahead of the kharif season, country's largest lender State Bank of India will meet nearly 10,000 farmers to understand their credit need and provide finance.
The meeting will be organised at the banks 15,500 rural and semi-urban branches across the country on June 8.
During the meet, branches will receive applications for fresh loans as well as for renewal or enhancement of existing loan.
For crop loans up to Rs. 3 lakh, the effective interest rate is only 4 per cent per annum, if the repayment is made on time.

June 7

RBI Second bi-monthly monetary policy for 2017-18.
The following are the highlights of the second bi-monthly monetary policy for 2017-18 as announced by the RBI:
Repo rate unchanged at 6.25 per cent
Reverse repo unchanged at 6 per cent
Marginal Standing Facility rate unchanged at 6.50 per cent
Bank rate unchanged at 6.50 per cent
Cash Reserve ratio (CRR) at 4.00 per cent
Statutory Liquidity Ratio cut by 0.5 per cent to 20 per cent
Growth forecast for 2017-18 lowered to 7.3 per cent from 7.4 per cent
Inflation projected at 2-3.5 per cent for H1, 3.5-4.5 per cent H2, FY18
Next meeting of Monetary Policy Committee on August 1 and 2.

Axis Bank introduces biodegradable prepaid gift cards.
Axis Bank has launched a bio-degradable plastic card, offering its customers a simple way of contributing towards environment-friendly payment solutions.
These cards will soon be available on select gift card products and will be acceptable at all domestic merchant outlets and online portals.
These cards offer customers an electronic option for gifting besides also being used as a reward tool for corporates.
The cards have been introduced under the gift card segment by the bank. Made of Polyethylene Terephthalate Glycol (PETG) that is derived from polyester, the cards do not release carbon, methane or any other harmful pollutants and can easily decompose without any extra work.

June 8

Government approves initial pact with South Korea for $9 billion export credit.
The Cabinet approved signing of an initial pact with South Korea for export credit facility of USD 9 billion for infrastructural development in India.
The MoU is proposed to be signed between the Export- Import Bank of India (EXIM Bank) and Export-Import Bank of Korea (KEXIM) during the forthcoming visit of Finance Minister Arun Jaitley to Korea during June 14-15, 2017 for the Annual Financial Bilateral Dialogue.
The decision is expected to promote the country's international exports, and deepen political and financial ties between India and Korea.
The export credit will be utilised through lending by EXIM Bank for promoting projects for priority sectors, including smart cities, railways, power generation and transmission etc in India, and for the supply of goods and services from India and Korea as part of projects in third countries.

HDFC Bank to start charging for UPI transactions from July 10.
HDFC Bank, one of the largest private sector banks in India, will soon start charging customers for money sent using Unified Payments Interface (UPI) platform. The bank communicated this by sending a mail to its customers. The new fees will be imposed starting July 10 2017.
Since demonetization, banks have not been charging for funds transfers via UPI, be it person-to-person (P2P) or person-to-merchant (P2M).
However, starting July 10, P2P transactions will cost Rs. 3 plus taxes for transactions between Re 1 to Rs. 25,000. Similarly, for transactions, ranging between Rs. 25,001 to Rs. 100,000, HDFC bank will be charging Rs. 5 plus taxes.
Now, while the charges will only be levied on P2P transfers, P2M transactions on UPI platform will remain free as per NPCI guidelines.

June 9

Canara Bank and The New India Assurance Co. Ltd enter into Corporate Agency Arrangement for distribution of Insurance Products.
Canara Bank, and The New India Assurance Co. Ltd, India's largest general insurance company signed corporate agency agreement for the distribution of The New India Assurance Co.'s general insurance products through Canara Bank's extensive network of 6000+ branches across the country.
Under this strategic agreement The New India Assurance Co. Ltd will offer its industry leading general insurance products to the customers of Canara Bank.
A bouquet of personal lines of products such as Motor Insurance, Home Insurance, Health Insurance, Travel Insurance and commercial line of products such as Fire Insurance, Marine Insurance and Engineering Insurance will be available through branches of Canara Bank.
The partnership aims to provide best-in-class general insurance products to Canara Bank Customers at highly competitive rates. The extensive branch network of the Bank and the Insurance Co. will facilitate insurance penetration and smooth post sales service of policies.

TCS launches BaNCS app development kit to help banks create apps.
Tata Consultancy Services (TCS) has announced the launch of the BaNCS app development kit that will help financial institutions develop their own apps and deploy it across devices.
The project was driven by the need for banks to have an App Development Environment where they can carry out business processes, products and services as a series of applications connected to its core functions.
Using the tool, financial institutions can deliver rich omni-channel experiences using pre-built widgets and components that have been based on a data model by Interactive Financial Exchange (IFX).
While the application comes with its own presets, it can also be modified by the user banks to launch their own designed widgets in the app and utilise them for publishing.

Banks need Rs. 95,000 crore capital, stressed assets to rise: Moody's.
According to Moody's, stressed assets of Indian banks will increase through 2019 and capitalisation will remain a key credit weakness for state-owned lenders which will need up to Rs. 95,000 crore additional capital over the next two years.
Public sector banks (PSBs) have limited ability to raise external capital and hence infusion by the government remains the only viable source for shoring up capital base.
According to Moody's Indian affiliate, ICRA, 'Indian banks' capitalisation profiles worsen; asset quality outlook remains weak’. The asset quality outlook for the banking sector will remain weak.
Gross Non Performing Assets (NPAs) or bad loans will increase to Rs. 8.2 - Rs. 8.5 lakh crore (9.9-10.3 per cent of total advances) by the end of 2017-18 as against Rs. 7.65 lakh crore (9.5 per cent) at the end of March 20 17.

June 10

SBI to cut rates on home loans above Rs. 75 lakh by 10 bps.
State Bank of India (SBI) will reduce the interest rate on home loans above Rs. 75 lakh by 10 basis points with effect from June 15 in the wake of Reserve Bank of India recently tweaking risk-weight and standard asset provisioning for home loans.
The revised interest rates will be 8.55 per cent (8.65 per cent now) for salaried women borrowers and 8.60 per cent (8.70 per cent) for others.
This is the second reduction in interest rates in the last two months; on April 9, it cut rates by 25 basis points. One basis point equals one-hundredth of a percentage point.
Taking a cue from the recent RBI reduction in risk-weightage on home loans, SBI is passing on the benefit to its customers by reducing its interest rates on home loans above Rs. 75 lakh.

IOB launches retail Mart in Thiruvananthapuram.
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 formalities at the customer’s door step and sanction quality retail loans at a competitive rate of interest with a minimum turnaround time.
It is planning to disburse an additional Rs. 100 crore in retail loans during the current financial year. The new facility will expeditiously entertain and process housing loans, vehicle loans and other mortgage loans.

RBI Governor Urjit Patel to appear before Par panel on July 6.
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.
Patel had appeared before the panel on January 18, but sought exemption from appearance on two subsequent occasions, saying he was busy with the monetary policy review.
The RBI's Monetary Policy Committee held its two-day policy meet on June 6-7. Patel has been asked to appear again before the panel on July 6 to brief the members of the PSC looking into the demonetisation decision.

June 11

Allahabad Bank cuts MCLR by up to 0.15 per cent from June 12.
Kolkata-based public sector lender Allahabad Bank announced reduction of its benchmark lending rate by 10 basis points at 8.50 per cent for one year and by 15 basis points at 8-8.40 per cent for a less than a year tenure.
With effect from June 12 this year, the marginal cost of funds based lending rate (MCLR) has been reduced implying that home, car and other types of loans linked to MCLR would become cheaper.
MCLR is a new methodology and benchmark introduced by the Reserve Bank of India for setting lending rate by banks. It has modified the existing methodology for setting lending rate i.e. base rate system from April 2016 onwards.

June 12

State Bank of India's paid up capital rises to Rs. 863 crore post Rs. 15,000 crore QIP.
State Bank of India (SBI) has increased its paid up capital to Rs. 863 crore following the Rs. 15,000 crore share sale through qualified institutional placement (QIP) route.
Pursuant to the allotment of equity shares in the issue, the paid up equity share capital of the bank stands increased from Rs. 810 crore to Rs. 863 crore.
The bank alloted 52.21 crore shares of face value of Re 1 at price of Rs. 287.25 per share aggregating to Rs. 14,999 crore to 61 eligible investors.
The total proceeds of the issue will be used to augment its capital adequacy ratio and for general corporate purposes, in accordance with applicable law.

June 13

RBI issues new Rs. 500 notes with inset letter A, old notes to remain valid.
The Reserve Bank of India (RBI) announced that it has issued Rs. 500 denomination notes with inset letter A. However, the old notes, which were introduced after Prime Narendra Modi's demonetisation drive in November 2016 will continue to remain the legal tender.
This was in continuation of the issue of Rs. 500 denomination banknotes in Mahatma Gandhi (new) series, which were notified on November 8, 2016. From time to time, the bank introduces new series of legal tender.
"In continuation of issuing of Rs. 500 denomination banknotes in Mahatma Gandhi (new) series from time to time which are currently legal tender, a new batch of banknotes with inset letter "A" in both the number panels, bearing the signature of Urjit R. Patel, Governor, Reserve Bank of India; with the year of printing '2017' on the reverse, are being issued''.

IDBI Bank to establish vertical for recovering Rs. 45,000 crore NPAs.
IDBI Bank has announced the formation of a separate vertical having around 100 dedicated staff to recover their mounting non-performing assets (NPAs), which now stand at around Rs. 45,500 crores.
Apart from creating this NPA recovery vertical, the bank management has formed a 'Credit Monitoring Group' to find out potential NPAs based on early warning signals.
This vertical will focus only on reducing our NPAs by way of cash recovery as well as the sale of NPAs.
Recently, the Reserve Bank of India has put IDBI Bank along with Dena Bank, Indian Overseas Bank and UCO Bank, under the PCA (prompt corrective action) in view of their mounting non-performing assets.

June 14

World Bank approves $500 million grant package for Afghanistan projects.
The World Bank approved financing worth more than $500 million for Afghanistan to support a string of projects to boost the economy, help improve service delivery in five cities and support Afghan refugees sent back from Pakistan.
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.
The largest chunk of the package, some $205.4 million, will go toward supporting communities affected by refugees returning from Pakistan.
$100 million will support reforms and business development for the poor; $20 million will go to improving services in five provincial capital cities; $29.4 million will help establish wheat reserves and improve grain storage; and $60 million will boost electricity in the western Herat province.

RBI selects 12 accounts, accounting for 25 per cent NPAs, for Insolvency and Bankruptcy code.
The Reserve Bank of India identified 12 non-performing accounts or assets (NPAs), totalling 25 per cent of India's gross NPAs, which can be immediately taken up under the Insolvency and Bankruptcy Code (IBC).
An Internal Advisory Committee (IAC) comprising majorly of central bank's independent board members held its first meeting to consider cases under the new IBC that was passed last year to resolve bad loans through the legal route.
Some of the large stressed accounts that could be a part of the 12 are Essar Steel with Rs. 44,000 crore stressed assets, Bhushan Power (Rs. 35,000 crore), Bhushan Steel (Rs. 35,000 crore), Alok Industries (Rs. 24,000 crore) and Electrosteel Steels (Rs. 10,000 crore).
On the committee's recommendations, RBI will accordingly issue directions to banks to file for insolvency proceedings under the IBC in respect of the identified accounts and such cases will be accorded priority by the National Company Law Tribunal (NCLT).

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 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, which is based on five parameters - information dissemination, transparency, grievance redressal, customer-centricity, and customer feedback - may be considered an indicator of the level of implementation of important code provisions at the grassroot level of a bank.

Emkay, DBS enter into agreement for distribution of equity research.
Emkay Global Financial Services has entered into an exclusive pact with DBS Bank arm DBS Vickers Securities (Singapore) for co-branding and distribution of equity research to the latter's global clients.
The agreement involves sharing of knowledge, co-branding of research and its distribution to the global clients of DBS Vickers.
The partnership involves Emkay and DBS Vickers to jointly organise, arrange and participate in events to showcase and market India Research Reports and India Equities. The move would help Emkay expand its presence globally.
Emkay's equity research which is highly appreciated by its clients would now find a much wider audience base. Emkay Research would be able to leverage off DBS Vickers' Asia Research to increase the depth of its offerings to its domestic clients.

June 15

Asian Infrastructure Investment Bank grants USD 150 million loan for India Infrastructure Fund.
China-led Asian Infrastructure Investment Bank (AIIB) has approved USD 150 million equity investment loan to the India Infrastructure Fund, the bank's first such loan to fund private projects.
The Infrastructure Fund aims to invest in mid-cap infrastructure companies in India, and to expand the bank's equity and loan deal sourcing pipelines in the private sector through its equity participation in this fund.
This initiative will benefit local infrastructure development by enhancing private capital inflows from global long-term investors, such as public pension funds, endowments and insurance companies.
The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) who met in Jeju in South Korea has approved USD 150 million equity investment to the India Infrastructure Fund.

TerraPay, Yes Bank collaborate to enable 24×7 international money transfer.
TerraPay, a mobile payments switch announced its collaboration with Yes Bank to enable real-time international money transfers to bank accounts in India.
This partnership with Yes Bank would help for the migrants by providing a real-time, 24×7 and seamless money transfer service experience.
TerraPay has partnered with Yes Bank in a Rupee Drawing Arrangement which enables TerraPay's network partners to make instant cross-border money transfer to bank accounts in India.
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.
For bank accounts other than Yes Bank accounts, the bank will disburse funds using the immediate payment service, popularly known as IMPS, which is available 24×7.

Central Bank of India comes under RBI's prompt corrective action.
After IDBI Bank, Dena Bank and UCO Bank, the Reserve Bank has invoked prompt corrective action (PCA) on Central Bank of India.
The Reserve Bank of India (RBI), has put the Bank under Prompt Corrective Action in view of high net NPA and negative RoA. Bank believes that corrective measures arising out of the PCA will help in improving overall performance of the Bank.
The public sector lender saw a rise in gross NPA (non-performing assets) at 17.81 percent of total loans as compared to 14.14 per cent in the previous quarter.
In absolute terms, this increased to Rs. 27,251 crore from Rs. 25,843 crore as on December 2016. Central Bank now looks to bring it down to 14 per cent by March end in FY18.

June 16

DCB bank launches Aadhaar based iris eye scan customer verification service.
DCB Bank, a new generation private sector bank has launched new services - India's first Aadhaar based iris eye scan customer verification and fingerprint operated ATM in Telangana.
These services utilise a customer's Aadhaar number, eye scan and fingerprint impression. The DCB ATM also can be used with the usual ATM/Debit Card. This launch coincides with the inauguration of 3 new branches in Mancherial, Mothe and Narsapur in the state.
DCB Bank branches in Telangana provide a range of banking products for farmers, agri-business, micro business, small business and individuals. The Bank provides loans for tractors, dairy, crop, land development, agri processing activities as well as for high-tech farming such as greenhouses.
It also offers warehouse construction loan, finance against warehouse receipts, loan against gold, loan to MSMEs, foreign exchange service and cash management service for individuals, farmers, entrepreneurs and businesses.

China, ADB launch green financing platform to fight pollution.
China and the Asia Development Bank (ADB) have launched a green financing platform to support efforts by small - and medium - sized enterprises to cut pollution in the smog-hit Beijing-Tianjin - Hebei region.
The area, home to six of China's 10 smoggiest cities in the first quarter of this year, has promised to upgrade or shut vast swathes of polluting industry as it tries to meet 2017 air quality targets.
But financing the transition to cleaner energy has proved one of its biggest challenges, especially in poorer rural regions of Hebei, where the switch from coal to natural gas is expected to cost at least 300 billion yuan ($44.04 billion) over the 2016 - 2020 period.
The financing platform was launched by the ADB and the China National Investment and Guaranty Corporation (I&G), the State Development and Investment Corporation (SDIC), as well as China's finance ministry and National Development and Reform Commission.

June 17

SBI, Tirumala Milk Products tie up for providing loans to dairy farmers.
State Bank of India has entered into a tie-up with Tirumala Milk Products, a South - based company which was acquired by Groupe Lactalis in 2014, to provide loans to dairy farmers who supply milk to the latter.
France-based Groupe Lactalis, which also acquired Indore-based Anik Dairy in 2016, wants to double the number of dairy farmers under its fold to three lakh and ramp up the amount of milk it procures daily to 25 lakh litres by 2020 from 14 lakh litres now.
Under its scheme for financing dairy units, SBI offers loans for, among others, construction of shed, and purchase of milch animals, milking machine, and chaff cutter.
Under another scheme, the bank provides loans to dairy societies for modernisation and creation of infrastructure such as purchase of automatic milk collection system, purchase of transport vehicles and bulk chilling unit.

IBBI notifies fast track Insolvency Resolution Process for Corporate Persons Regulations.
The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017.
The board announced the regulations in exercise of its powers conferred by sections 58, 196 and 208 read with section 240 of the Insolvency and Bankruptcy Code, 2016.
These regulations provide the process from initiation of insolvency resolution of eligible corporate debtors till its conclusion with approval of the resolution plan by the Adjudicating Authority.
The process in these cases shall be completed within a period of 90 days, as against 180 days in other cases. However, the Adjudicating Authority may, if satisfied, extend the period of 90 days by a further period up to 45 days for completion of the process.

June 18

RBI initiates Prompt Corrective Action against Bank of Maharashtra as NPA mounts.
The Reserve Bank has initiated Prompt Corrective Action (PCA) against Pune-based Bank of Maharashtra (BoM) in view of high level of bad loans and negative return on assets. BoM has become the sixth state-owned lender to be put under the PCA.
This action will not have any material impact on performance of the bank and will contribute to improve the internal controls of the bank and improvement of its asset quality, profitability and efficiency.
For the year ended March 2017, the net non-performing assets (NPAs) of the bank rose to 11.76 per cent, while return on assets declined to (-) 1.09 per cent.
At the same time, the bank reported a loss of Rs. 455.4 crore for the fourth quarter, while for entire fiscal 2016 - 2017 booked loss of Rs. 1,372 crore.

June 19

IDBI Bank starts insolvency proceedings against Lanco Infra.
IDBI Bank has started insolvency resolution process against Lanco Infratech Ltd following a directive from the Reserve Bank of India (RBI).
While this is the first resolution process initiated by the lenders against 12 large borrowers identified by the RBI last week, other cases are expected to be taken up by State Bank of India and other banks.
Meanwhile, shares of Lanco Infratech, Amtek Auto, Bhushan Steel, Monnet Ispat and Alok Industries tumbled up to 20 per cent amid reports that these companies figure among the list of troubled accounts named for bankruptcy action.
However, the central bank has not yet revealed the names of the 12 large defaulters. Lanco Infratech shares crashed by 20 per cent to Rs. 1.88 on the BSE.

June 20

IDBI Federal Life partners with SunTec for GST roll out.
IDBI Federal Life Insurance has partnered with SunTec, which will help facilitate in computing and invoicing of debit tax and credit tax that will be GST compliant.
Under the agreement, for the debit tax mandate SunTec will help in analysing data from various sources for computation and invoicing purposes.
Given the diverse business portfolios, it becomes crucial for us to ensure that all taxation-related data is computed and analysed with accuracy for smooth business operations and keep issues of double taxation in check.

Meghalaya Govt signs MoU with SBI for online payments.
As part of the state government's drive towards migrating government transactions to the digital mode, the Meghalaya state finance department signed two MoUs with the SBI for SBIePay and SBI CMP facilities at the main secretariat building.
The Government now would be escalating all its transactions for collection of tax and non-tax revenue through the online system known as Government Receipt Accounting System (GRAS) covering all the departments in a phased manner.
This facility would be available on a 24×7 basis through the gateway provided by SBIePay under the MoU. Any citizen can make government payments using credit card, debit card, online banking or mobile banking of any bank without visiting any bank.
The SBI CMP will help Government of Meghalaya for make its payment online and reduce paperwork and manual reconciliation of government transactions.

Hike partners with Yes bank to launch UPI-based wallet, rolls out Hike 5.0.
Hike Messenger has announced the launch of Hike 5.0 that offers new features like app themes, night mode and magic selfie. Hike also rolled out Hike Wallet, which allows users to transfer money instantly.
It supports Unified Payments Interface (UPI), which can be used to make bank-to-bank transactions with friends, irrespective of whether they use Hike or not. Hike Wallet enables user to send and receive money through their Wallet as well. Hike has partnered with Yes Bank to launch its UPI-based wallet.
Additionally, Hike is bringing back Timeline in its original form. Users can now post text, photos and videos on their Timeline, in addition to Stories that disappear in 24 hours. Further, Hike has reduced the size of its app to 25MB.


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