Banking Awareness of 12, 13 and 14 August 2023

Topic: Banking System

1. Bank of Maharashtra has topped the list of public sector lenders in loan and deposit growth in terms of percentage during Q1 of FY24.

• Its deposit and advances recorded about 25% increase. This is the highest increase by any public sector bank during the April-June quarter.
• The gross domestic advances of the Bank of Maharashtra has grown to ₹1,75,676 crore at the end of June 2023 with a growth rate of 24.98%.
• Bank of Maharashtra was followed by UCO Bank with 20.70% growth.
• Bank of Baroda and Indian Overseas Bank stood at 3rd and 4th spot with growth rate of 16.80% and 16.21%, respectively.
• SBI stood at 5th place with 15.08% increase in domestic advances growth.
• However, SBI’s total loans were about 16 times higher as compared to that of Bank of Maharashtra (BoM) in absolute terms.
• In terms of Retail-Agriculture-MSME (RAM) loans, Bank of Maharashtra has the highest growth of 25.44% on Y-o-Y basis.
• It was followed by Punjab & Sind Bank and Punjab National Bank.
• Regarding the deposit growth, Bank of Maharashtra has shown 24.73% growth at the end of June 2023.
• Bank of Baroda stood at 2nd place with a 15.50% growth in deposits. Punjab National Bank recorded a 13.66% increase.
• Bank of Maharashtra achieved top position in terms of low-cost Current Account and Savings Account (CASA) deposits with 50.97%.
• It was followed by Central Bank of India at 49.56%. 

Topic: Indian Economy/Financial Market

2. Wholesale inflation remained in the negative for the fourth continuous month in July 2023.

• In July 2023, wholesale price-based inflation stood at (-) 1.36% on easing prices of fuel.
• It has been in the negative since April. It was (-) 4.12% in June. In July 2022, it was 14.07%.
• According to the Commerce and Industry Ministry, primary contributors to the decline in the rate of inflation in July 2023 are fall in prices of mineral oils, basic metals, chemical and chemical products, textiles and food products.
• Fuel and power basket inflation stood at (-) 12.79% in July against (-) 12.63% in June. 
• In manufactured products, the inflation rate was (-) 2.51% in July against 2.71% in June.
• RBI takes into account retail or consumer price index (CPI) based inflation for formulating monetary policy.

Topic: Banking System

3. AU Small Finance Bank has claimed to be India’s first bank to provide 24X7 video banking facility for 365 days.

• 24X7 for 365 days video banking facility is being made available to all its customers.
• Pradhan Mantri Jan Dhan account holders of AU SFB can also avail this video banking service for free.
• Over 400 plus services are being made available through this 24X7 video banking feature.
• Some of these features are updating your address, loan enquiries, credit card KYC, FD and RD creation, FasTag recharge, cheque book request.
• One can also complete full KYC process using video banking from 8 am till 8 pm. One can also open a savings account.
• Video banking can be used to perform NEFT, IMPS and all other financial transactions from 8 am to 8 pm only.
• One should be minimum 18 years old and located within India while doing the video call.
• AU Small Finance Bank:
  • It was founded in 1996 as AU Financiers (India) Ltd.
  • In 2017, AU Financiers (India) Ltd became a small finance bank.
  • It is headquartered in Jaipur.
  • Its chairman is Raj Vikash Verma. Sanjay Agarwal is its MD & CEO.

Topic: Indian Economy/Financial Market

4. Factory output growth reached to 3-month low level of 3.7% in June 2023.

• Index of Industrial Production (IIP) grew by 3.7% in June 2023 from 5.3% in May 2023.
• Manufacturing sector’s output grew by 3.1% and mining output increased by 7.6%.
• Index of Manufacture of pharmaceuticals, medicinal chemical and botanical products gained the most. It climbed 16.8%.
• The Quick Estimates of IIP for June 2023 stand at 143.4.
• The IIP for the Mining, Manufacturing and Electricity sectors for June 2023 stand at 122.3, 141.0 and 205.2 respectively.
• As per Use-based classification, the indices were 146.6 for Primary Goods, 106.7 for Capital Goods, 153.2 for Intermediate Goods and 167.8 for Infrastructure/ Construction Goods for June 2023.
• The indices for Consumer durables and Consumer non-durables were 116.7 and 147.7 respectively for June 2023.

Topic: Indian Economy/Financial Market

5. Remittances to India increased from $89.1 billion in FY22 to $112.5 billion in FY23.

• Remittances to India by non-resident Indians increased 26% to $112.5 billion in FY23.
• This underscores the increase in demand for Indian professionals globally after the pandemic.
• India remains the top recipient of remittances globally for the last several years.
• FDI flow to India has slowed. India attracted $70.97 billion in FDI in FY23. FDI flow to India declined from $84.8 billion in FY22.
• According to a survey performed by the RBI for 2020-21, the United States was the leading source of inward remittances to India.
• Remittances from the USA accounted for 23.4% of total remittances. The USA was followed by UAE with 18%, the UK (6.8%), Singapore (5.7%) and Saudi Arabia (5.1%).

Topic: RBI

6. To use AI in improving regulatory supervision, RBI selected McKinsey and Accenture.

• To develop systems by using artificial intelligence and machine learning for supervisory functions, RBI has selected global consultancy firms McKinsey and Company India LLP and Accenture Solutions Pvt Ltd India.
• RBI is planning to use advanced analytics, artificial intelligence and machine learning for analyzing a huge database and improve regulatory supervision over banks and NBFCs.
• For this, the RBI is planning to hire external experts.
• In September 2022, RBI invited expressions of interest (EoI) for engaging consultants for using advanced analytics, artificial intelligence and machine learning for generating supervisory inputs.
• RBI had shortlisted seven applicants to participate in the request for proposal process (RFP) for the selection of consultant(s).
• Out of the seven applicants, McKinsey and Accenture have been awarded the contract. The value of the contract is about Rs 91 crore.
• RBI is currently using AI and ML in supervisory processes. Now, RBI is planning to upscale it.
• The Department of Supervision of RBI is using linear and a few machine-learnt models for supervisory examinations.
• RBI supervisory jurisdiction extends over urban cooperative banks, NBFCs, payment banks, small finance banks, local area banks, credit information companies and select all Indian financial institutions.

Topic: Taxation

7. Central Goods and Services Tax (Amendment) Bill, 2023 and Integrated Goods and Services Tax (Amendment) Bill, 2023 have been passed by Parliament.

• The Central Goods and Services Tax (Amendment) Bill, 2023 proposed to amend the Central Goods and Services Tax Act 2017.
• It defines the expressions of online gaming, online money gaming and virtual digital assets.
• As per the bill, online gaming means offering of a game on the internet or an electronic network and includes money gaming.
• The proposed changes involve introducing clauses into the Schedule III of the CGST Act, 2017.
• It also mentions that online money gaming means games in which players pay or deposit money including virtual digital assets for winning money.
• The Integrated Goods and Services Tax (Amendment) Bill, 2023 seeks to amend the Integrated Goods and Services Tax Act 2017.
• This bill has excluded online money gaming from the definition of online information and data access or retrieval services.
• In the 50th meeting of the GST Council, the government proposed to levy a 28 per cent tax on the full face value of bets in Casinos, Horse racing and online gaming.

Topic: Miscellaneous

8. India Startup Festival 2023 held in Bengaluru.

• The 2nd edition of India Startup Festival (ISF) 2023 organized from 10th to 12th August 2023 at Muddanahalli, Bengaluru.
• More than 10,000 startups from India, the UK, and Japan, and about 500 investors participated in the event.
• ‘Innovation at the Bottom of the Pyramid' was the theme of the India Startup Festival 2023.
• During this event, discussions on vital areas such as Rural Healthcare Education, Fintech, Rural Innovation, Agritech, and food tech were held.
• This festival is complementary to the other initiatives started by the government of India to foster a startup ecosystem.
• The first edition of the India Startup Festival was held in 2022.

Topic: Reports and Indices

9. Chhattisgarh has second best overall fiscal health scorecard after Maharashtra.

• Chhattisgarh, one of the poorest states in the country, is in the second spot in terms of the overall fiscal health scorecard.
• Maharashtra is in the first position in the fiscal health scorecard while Telangana is in the third spot.
• Bengal, Punjab and Kerala are in the bottom three positions.
• A report on the fiscal health of 17 states has been released by Kaushik Das, the chief economist at Deutsche Bank India.
• Bihar, Rajasthan and UP are among the bottom states of the list.
• Andhra Pradesh’s ranking has dropped to 11th in FY23 from eighth in FY22.
• Gujarat’s rank has fallen to the seventh position from fifth.
• This report on fiscal health is based on four parameters- fiscal deficit; own tax revenue, state debt levels, all as a percentage of their individual gross state domestic product; and the interest payment to revenue receipts.
• Between 2004 and 2016, the states repeatedly in the bottom quartile are Bengal, Bihar, UP, and Rajasthan.
• The fiscal deficit of these 17 states is estimated at around 3.3 per cent of Gross State Domestic Product (GSDP) in FY24.

Topic: Awards and Prizes

10. Lifetime Achievement Award presented to Subhash Runwal at the first-ever RICS South Asia Awards.

• Indian real estate entrepreneur Subhash Runwal is the Chairman of Runwal, a leading real estate developer with a legacy of over four decades.
• RICS hosted its first awards. It aims to recognize global and Indian industry-leading achievements.
• This recognition is a testimony to Runwal's exceptional contribution, outstanding achievements, and unwavering dedication towards the real estate sector.
• Runwal was established in 1978, and is one of the leading real estate developers in Mumbai, operating in residential, commercial, and organized retail sectors for over 4 decades.
• The Royal Institution of Chartered Surveyors (RICS) is a global professional body for those working in the Built environment, construction, land, property, and real estate. RICS was established in 1868 in London.

Read Banking Awareness PDF - 12, 13 and 14 August 2023