Banking, Financial and Economic Awareness of 07 December 2019

1. $25.6 billion raised by Saudi Aramco  

• $25.6 billion has been raised by Saudi Aramco through its world's biggest initial public offering (IPO).
• The firm had set the final price of its shares at 32 riyals, and it received total bids of $119 billion.
• The oil giant had offered only 1.5% of its shares.
• When Aramco starts trading, it will become the world’s most valuable publicly-traded company ousting Microsoft Corp and Apple Inc.
• Initial Public Offering (IPO): It is the process by which a private company sells its first stock to raise funds.

2. Consumer Confidence Index declines in November

• The Consumer Confidence Index (CCI) has fallen in November 2019, according to the Reserve Bank of India’s (RBI) November 2019 round of consumer confidence survey (CCS).
• CCI is based on the current perception and future expectations regarding the economic situation, price level, employment, income, and spending.
• Four out of five variables reflect negative sentiments with a sign of deterioration compared to last round, and only spending reflect positive sentiments.

3. Bank of America inaugurates its Global Business Services Centre at GIFT City

• Bank of America Corporation opened its Global Business Services Centre at International Final Services Centre (IFSC) at GIFT City, Gujarat.
• With this, Bank of America has become the first international bank to start its business in the only IFSC of India.
• This will help Indian corporates to raise funds in international currency.

• GIFT IFSC:
  • Gujarat International Finance Tec-City Co. Ltd (GIFT) is the country’s first and only international financial services center (IFSC).
  • IFSC is a jurisdiction that provides financial services in foreign currencies to both residents and non-residents Indians.
  • IFSC can be set up in a Special Economic Zone (SEZ) or as an SEZ.
  • Companies regulated by RBI, SEBI, and IRDAI can open their offices in IFSC.

4. CFO of Axis Bank Jairam Sridharan resigns

• The Chief Financial Officer of Axis Bank Jairam Sridharan has resigned.
• He will continue to serves as the Group Executive and CFO for three months under the notice period.
• Jairam Sridharan has earlier served as President, Retail Lending and Payments, and was promoted to the post of Group Executive and CFO in October 2015.
• Axis Bank:
  • It is the third largest private bank in India that is headquartered in Mumbai.
  • MD & CEO: Amitabh Chaudhry

5. RBI tightens norms for Asset Reconstruction Companies (ARCs)

• RBI stated that the ARCs could not take over financial assets on a bilateral basis from their sponsor bank/ financial institution.
• Also, the ARCs cannot take over financial assets on a bilateral basis from their lender bank or from a bank that is a subscriber to fund, raised for their operations.
• ARCs are also barred from taking over financial assets on a bilateral basis from an entity in the group to which ARC is related.
• ARCs can take part in auctions of financial assets, which is to be conducted transparently and market forces should decide the prices.
• Presently, 28 ARCs are registered with RBI.

• Asset Reconstruction Companies (ARCs):
  • It is a type of financial institution that purchases the debtors of a bank at a predetermined value and recover the debts by itself.
  • These are registered under RBI and regulated under the SARFAESI Act, 2002.