Banking Awareness of 1, 2 and 3 March 2023

Topic: Indian Economy/Financial Market

1. Index of Eight Core Industries (ICI) grew by 7.8% (provisional) in January 2023 in comparison to the Index of January 2022.

• The cumulative growth rate of Index of Eight Core Industries for the period April-January 2022-23 was 7.9% (provisional) in comparison to the same period of last year.
• For January 2023, seven of the eight core sectors have shown growth.
• Only crude oil has shown a contraction of 1.1%. Output growth in coal sector stood at 13.4%.
• Output growth in fertilizers and steel stood at 17.9% and 6.2%, respectively.
• Output growth in cement and electricity sectors stood at 4.6% and 12%, respectively.
• Natural gas sector has shown an output growth of 5.3% and refinery products output grew 4.5%.
• ICI for February 2023 will be released on 31st March 2023.

Topic: Indian Economy/Financial Market

2. India’s unemployment rate increased to 7.45% in February 2023 according to Centre for Monitoring Indian Economy (CMIE) data.

• India’s unemployment rate was recorded at 7.14% in January 2023.
• As per CMIE data, urban unemployment rate decreased to 7.93% in February 2023 from 8.55% in January 2023.
• CMIE data showed that rural unemployment rate increased sharply to 7.23% from 6.48%.
• In December 2022, overall unemployment rate in India was 8.30%.
• In December 2022, urban unemployment rate stood at 10.09%.
• Rural unemployment rate stood at 7.44% in December 2022.

Topic: Reports and Indices

3. Purchasing Managers’ Index (PMI) manufacturing declined to 55.3 in February 2023 from 55.4 of January 2023.

• This is the 12th successive month of expansion of PMI manufacturing. However, job situation was almost stagnant.
• PMI services increased to 59.4 in February 2023 as against 57.2 in January 2023. This is 12 years high level.
• Services sector contributes maximum (53%) in Gross Value Added (GVA).
• The share of services and manufacturing together in GVA is around 70%.
• As per PMI report, consumer services were the best-performing area in February.

Topic: Indian Economy/Financial Market

4. Moody’s has increased India’s growth forecast for 2023 to 5.5%.

• It has kept India’s GDP growth forecast for 2024 at 6.5%.
• Moody’s Investors Service has earlier kept growth forecast at 4.8% in November 2022.
• Moody’s has changed forecasts in the latest February update to Global Macro Outlook 2023-24.
• It has forecasted G20 global economic growth will decline to 2% in 2023 from 2.7% in 2022 and later improve to 2.4% in 2024.
• As per SBI’s economic research report “Ecowrap”, India’s FY24 GDP growth is expected to be more than 6% despite the reports of the drought likely to be triggered by an El Nino climate pattern.
• Since 1950, India faced 13 droughts. Out of these, 10 were in El Nino years and one was in a La Nina year.
• According to Ecowrap, India’s per capita GDP at current prices is estimated at ₹1,96,716. It stood at ₹71,609 in FY12. This means a compounded annual growth rate (CAGR) of 10.6%.
• As per the report, it is expected that private final consumption expenditure will increase to ₹164 lakh crore in FY23.
• Per capita private final consumption expenditure has shown improvement of more than 10 % year-on-year to ₹63,595 crore in FY22.

Topic: Reports and Indices

5. Contribution of Indian ultra-high net worth individual (UHNI) has contracted 5% in FY2022.

• This is despite increase in cumulative net wealth of UHNI by 9.2% in FY2022 as per the Bain & Company and Dasra’s ‘Indian Philanthropy Report 2023’.
• UHNI having greater than ₹50,000 crore wealth witnessed a 19% increase in cumulative net wealth in FY2022.
• As per the report, compound annual growth rate (CAGR) of contributions by top donors (excluding Azim Premji) has been 7% from FY2020-22.
• Indian UHNIs donate significantly less in comparison to the US, UK, and China.
• UHNI’s allocation in India has been imbalanced towards education.
• Healthcare and education made up 49% of UHNI contribution in FY2021.
• In FY2022, education and healthcare accounted for 58% of total contribution. 
• The report mentions that funds such as ACT Grants, GROW fund, Young India Philanthropic Pledge (YIPP), and Rebuild India Fund have been set up.

Topic: Banking System

6. The completion of $1 billion Syndicated Social Loan Facility has been announced by State Bank of India.

• It is the largest Environmental, Social, and Governance (ESG) loan by a commercial bank in the Asia Pacific.
• It is the second-largest social loan globally. It is the bank’s inaugural social loan.
• The facility was arranged through MLABs, MUFG Bank, and Taipei Fubon Commercial Bank Co. Ltd.
• MUFG and Taipei Fubon Commercial Bank are Joint Social Loan Coordinators. MUFG is the Lead Social Loan Coordinator.
• SBI raised $1 billion through a syndicated social loan from global banks.
• SBI will further lend this amount to socially impactful businesses in India.

Topic: Banking System

7. Axis Bank has completed acquisition of Citibank’s India Consumer Business and NBFC Consumer Business.

• The cash consideration for the acquisition stands at ₹11,603 cr.
• Axis Bank has acquired 18 lakh credit customers and wealth management business worth ₹94,700 crore.
• It has also acquired deposits worth about ₹40,000 crore of which 77% are Current Account and Savings Account (CASA) deposits.
• Further, it has acquired 1,600 Suvidha corporate salary accounts.
• After the Axis Bank-Citibank merger, Axis Bank’s market share has increased from 11.4% to 16.2%.
• All of Citibank’s co-branded credit cards will remain operative.
• New acquisitions will continue under the Axis brand.
• Citibank is the primary U.S. banking subsidiary of Citigroup.

Topic: Taxation

8. Changes in the GST system for jaggery, pencil sharpeners and examination institutions have been notified by Finance Ministry.

• These changes were recommended by GST Council in its meeting on February 18, 2023. The new rates are effective from March 1, 2023.
• GST rate on pencil sharpeners will be 12%. Earlier, it was 18%.
• Jaggery of all types, pre-packaged and labelled, will attract GST at the rate of 5%. However, if jaggery is sold loose, GST will be nil.
• Finance Ministry has clarified that any authority, board or body established by the centre or state government (including National Testing Agency) for taking entrance examinations for admission to educational institutions shall be treated as educational institution.
• Such authority, board or body will be treated as educational institution for the limited purpose of providing services by conducting entrance examination for admission to educational institutions.
• GST exemption available to boards and educational institutions for conducting entrance examination will be available to authority, board or body established by the centre or state government for taking entrance examinations for admission to educational institutions.

Topic: Committees/Commissions/Taskforces

9. An expert committee constituted by SC on Hindenburg Research report on Adani group companies.

• On 2 February, the Supreme Court has constituted an expert committee on issues emerging from the Hindenburg Research Report on Adani Group companies.
• The committee has been formed after a batch of PILs were filed on the recent stock crash of Adani Group due to allegations of fraud by US-based short-seller Hindenburg Research.
• There will be six members in this committee. The committee will be headed by Supreme Court judge Justice AM Sapre.
• Other members include former chairman of the State Bank of India O.P. Bhatt, retired Bombay High Court judge Justice J.P. Devadhar, former chief of the NDB of BRICS countries K.V. Kamath, co-founder of Infosys Nandan Nilekani and securities expert and lawyer Somasekhar Sundaresan.
• The Supreme Court has said that this committee will submit a sealed report in the court in two months.
• The Supreme Court has directed the market regulator SEBI to ensure that all information is given to the committee.
• The Supreme Court has also directed an inquiry into the violation of Section 19 of the SEBI Rules.
• The Supreme Court has also asked SEBI to examine issues related to any manipulation of share prices.

Topic: Indian Economy/Financial Market

10. A growth of 4.4% has been recorded in India’s Gross Domestic Production (GDP) in the October-December quarter of the current fiscal.

• In the third quarter of 2022-23, GDP at Constant (2011-12) Prices is estimated at Rs 40.19 lakh crore.
• In the third quarter of 2021-22, GDP was Rs 38.51 lakh crore.
• GDP at Current Prices in Q3 2022-23 is estimated at Rs 69.38 lakh crore as per NSO.
• In the third quarter of 2021-22, it stood at Rs 62.39 lakh crore. GDP at Current Prices has shown a growth of 11.2%.
• The real GDP is estimated to grow at 7% for the 2022-23 fiscal.
• The nominal GDP for 2022-23 fiscal is estimated to grow at 15.9%.
• GDP growth was 11.2% in October-December 2021 and 6.3% in July-September 2022 as per data released by National Statistical Office (NSO) on 28 February.
• The NSO has published the second advance estimate for the current fiscal.
• It maintained its growth projection of 7% as was estimated in the first advance estimate (released in January).
• GDP refers to the total value of all the goods and services that are produced in a country in a year.
• Real GDP is the GDP calculated at constant prices. Nominal GDP is the GDP calculated at current prices.

Topic: Appointments

11. Shailesh Pathak has been appointed as the new Secretary General of FICCI.

• Shailesh Pathak has taken the charge on March 1.
• Pathak held several positions in the government during his 37-year career.
• Abhishek Sankar Bagchi has been appointed as Chief Financial Officer (CFO) of Karnataka Bank with effect from 02 March.
• Muralidhar Krishna Rao has demitted the office of CFO of the bank on March 1 as his term was completed.
• Karnataka Bank is a Scheduled Commercial Bank based in Mangaluru, Karnataka. It is a private sector bank.
• Federation of Indian Chambers of Commerce & Industry (FICCI):
  • It was established in 1927. It is the largest, oldest and apex business non-governmental trade association in India.
  • It is headquartered in New Delhi. Shubhrakant Panda is the current President of FICCI.

Topic: Taxation

12. The government collected more than 1.49 lakh crore rupees in GST revenue in February 2023.

• GST revenue collection recorded 12% growth in February against the same period of the previous financial year.
• In February 2022, GST revenue collection stood at more than one lakh 33 thousand crore rupees.
• Monthly GST revenue collection is higher than one lakh 40 thousand crore rupees for 12 straight months in a row.
• According to the Finance Ministry, the highest GST revenue (22 thousand 349 crore rupees) was collected from Maharashtra in February 2023.
• Maharashtra was followed by Karnataka. In Karnataka, over ten thousand crore rupees were collected as GST revenue.
• The highest cess collection of over 11,931 crore rupees recorded in February 2023 since the implementation of GST in the country.
• Finance Ministry said the Centre had also released the balance GST compensation of 16,982 crore rupees for the month of June 2022.
• GST collection in February 2023 was 5.06% lower than 1,57,554 crore rupees revenue collected during January.
• Central GST (CGST) collections stood at ₹27,662 crore in February 2023.
• State GST (SGST) accounted for ₹34,915 crore. Integrated GST (IGST) collection stood at ₹75,069 crore.
• Meghalaya was the only State to report a contraction in revenues.
• Andhra Pradesh’s revenues jumped 39%. Andhra Pradesh was followed by erstwhile Jammu and Kashmir (33%), Bihar (24%), Haryana (23%), Tamil Nadu (19%) and Karnataka (18%).
• Revenue growth was behind the national average in Gujarat, Chhattisgarh and Telangana. All these states saw an 8% rise.

Read Banking Awareness PDF - 1, 2 and 3 March 2023