Topic: Indian Economy/Financial Market
1. India’s industrial production increased 3.1% in September.
- In September 2021, Index of Industrial Production (IIP) had grown 4.4%.
- A contraction of 0.8 percent was recorded in the previous month (August).
- According to the IIP data released by National Statistical Office, manufacturing sector’s output increased by 1.8% in September 2022.
- The mining output grew 4.6% and power generation increased 11.6% during September 2022.
- The rise in September industrial growth to 3.1% was led by better performance of mining and electricity sectors.
Topic: Indian Economy/Financial Market
2. Moody’s Investor Services has cut India’s economic growth forecast for the calendar year 2022 to 7%.
- In the report titled Global Macro Outlook 2023-24, the agency said the downward revision assumes higher inflation, high interest rate and slowing global growth.
- This is not the first downward revision of the Indian economy.
- International Monetary Fund (IMF) cut India’s GDP forecast for the current fiscal (FY 23) to 6.8% from 7.4% estimated earlier.
- Earlier, World Bank cut the forecast to 6.5%, Asian Development Bank (ADB) to 7%, Fitch to 7% and RBI cut the forecast by 20 basis points to 7%.
- About the global economy, Moody’s said that global growth will slow in 2023 and remain sluggish in 2024.
3. Gross direct tax collections till the 10th November 2022 remained at 10.54 lakh crore rupees.
- They were 30.69% higher than the gross collections of over ₹8 lakh crore for the corresponding period of last year.
- After adjusting refunds, the Direct Tax collection stands at 8.71 lakh crore rupees.
- This is 25.71% higher than the net collections for the corresponding period of last year.
- This collection is 61.31% of the total Budget Estimates of Direct Taxes for the current fiscal.
- As per the finance ministry, refunds amounting to one lakh 83 thousand crore rupees have been issued during 1st April to 10th November of this fiscal.
- It is nearly around 61% higher than refunds issued during the same period in the preceding year.
Topic: Banking System
4. HDFC Bank has entered into an agreement to sell 3.2% stake in Lentra AI for ₹54 crore.
- As per the agreement, the sale will be completed by the end of December.
- After the share sale, HDFC Bank will hold 6.6% stake in the company.
- Lentra AI is involved in designing, licensing and implementation of software products for the financial services sector.
- HDFC Bank is headquartered in Mumbai. Its CEO is Sashidhar Jagdishan.
5. RBI governor has called a meeting with the chiefs of public sector banks and select private sector banks on November 16.
- The meeting has been called to take stock of sustainability of the robust credit growth.
- RBI will also try to find out details on slow growth in deposits and asset quality of retail and MSME loans.
- As per RBI data, all scheduled banks have registered a double-digit credit growth of 17.68% year-on-year (yoy) as on October 21, 2022.
- However, deposit growth has not kept pace with credit growth.
- Banks’ have recorded single digit deposit growth of 9.22% year-on-year (yoy) as on October 21, 2022.
Topic: Banking System
6. Bank of Maharashtra has topped the list of public sector lenders in terms of loan growth in percentage terms during Q2 FY23.
- Bank of Maharashtra recorded 28.62% increase in gross advances at ₹1,48,216 crore at the end of September 2022.
- It was followed by Union Bank of India with 21.54% growth to ₹7,52,469 crore.
- State Bank of India is placed at third with 18.15% growth in gross advances.
- On the other hand, SBI’s total loans were about 17 times higher at ₹25,47,390 crore as compared to ₹1,48,216 crore of Bank of Maharashtra in absolute terms.
- Regarding Retail-Agriculture-MSME (RAM) loans, Bank of Maharashtra recorded the highest growth of 22.31%.
- It was followed by Bank of Baroda with 19.53% and SBI at 16.51% during Q2.
- In terms of Current Account Savings Account (CASA) deposits, Bank of Maharashtra topped the list. It was followed by Canara Bank.
- Net Interest Margin (NIM) is a key profitability parameter.
- Bank of Maharashtra and SBI with 3.55% NIM stood at the top among PSBs.
- It was followed by Bank of India at 3.49% and Central Bank of India at 3.44%.
- In terms of gross non-performing assets (NPAs) and net NPAs, Bank of Maharashtra and SBI were in the lowest quartile.
- They reported gross NPAs at 3.40% and 3.52% of their total advances, respectively, in second quarter.
- Their net NPAs came down to 0.68% and 0.80%, respectively, at the end of September 2022.
- Bank of Maharashtra has 16.71% Capital Adequacy Ratio, the highest among PSBs. It was followed by Canara Bank at 16.51% and Indian Bank at 16.15% at end of September 2022.
7. RBI has cancelled Certificate of Registration of two NBFCs.
- The names of NBFCs are Grihastha Finance Limited and Pawan Motor and General Finance Private Limited.
- Five Non-Banking Financial Companies (NBFCs) have surrendered the Certificate of Registration (CoR) granted to them by RBI.
- RBI, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has cancelled their CoR.
8. The licence of Yavatmal-based Babaji Date Mahila Sahakari Bank has been cancelled by RBI.
- The bank ceased to carry on banking business from the close of business on November 11.
- The bank did not have adequate capital and earning prospects.
- RBI has requested the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra to issue an order for winding up the bank and appoint a liquidator for the bank.
- On liquidation, every depositor would get deposit claim amount of his/her deposits up to a limit of Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC).
Topic: Infrastructure and Energy
9. Ministry of Road Transport and Highways (MoRTH) allocated work for the first Multi Modal Logistics Park in the country.
- The MoRTH along with 16 Union Ministries initiated work to improve multi-modal connectivity and last mile connectivity across the country.
- The MoRTH is setting up 35 Multi Modal Logistics Parks (MMLP) in the country, out of which 15 will be set up in the next three years.
- An MMLP is being set up in an area of 184.27 acres at Mappedu, Chennai.
- The work of this first MMLP has been allotted to M/s Reliance Industries Limited.
- The estimated cost of this project is Rs 1424 crore. The construction and maintenance period of this project will be 45 years.
- The Chennai-based MMLP will be built at a distance of 52 km from Chennai Port, 80 km from Ennore Port and 87 km from Katupally Airport and will be a vital logistics point in the southern region of the country.
- It is estimated to transport 7.17 Million Metric Tonnes (MMT) of goods over its 45-year period.
10. Pakistan will implement an interest-free banking system by 2027.
- Pakistan’s Finance Minister Ishaq Dhar announced this recently.
- Pakistan government has decided to withdraw appeals against the Federal Shariat Court’s April decision of eliminating interest from the country in five years.
- According to the Federal Shariat Court (FSC), the prevailing interest-based banking system in Pakistan is against the Sharia law.
- In its decision, the FSC specified 31 December 2027 as the day on which riba (interest) would be completely removed from Pakistan.