Banking, Financial and Economic Awareness of 07 December 2019

By PendulumEdu | Last Modified: 22 Apr 2020 13:36 PM IST
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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.
    • 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.



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