Banking Awareness of 12 and 13 June 2022

By Priyanka Chaudhary | Last Modified: 13 Jun 2022 17:24 PM IST
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Topic: Banking System

1. RBI has doubled housing loans limit in case of cooperative banks.

  • It has also allowed rural cooperative banks to finance residential real estate projects.
  • It has given urban cooperative banks permission to provide doorstep banking services to meet the needs of customers, particularly senior citizens and differently-abled persons.
  • RBI has changed the limit for tier-I Urban Cooperative Banks (UCBs) from Rs 30 lakh to Rs 60 lakh.
  • The limit for tier-II UCBs has been raised from Rs 70 lakh to Rs 1.40 crore.
  • RBI has changed the limit for Rural Cooperative Banks (RCBs) with an assessed net worth less than Rs 100 crore from Rs 20 lakh to Rs 50 lakh.
  • For other RCBs, the limit has been raised from Rs 30 lakh to Rs 75 lakh.

Topic: Appointments

2. RBI has given approval to the appointment of R Subramaniakumar as MD and CEO of RBL Bank.

  • RBI has given approval to his appointment for a tenure of three years with effect from date of his taking charge.
  • R Subramaniakumar was earlier appointed by RBI as administrator of Dewan Housing Finance Corporation Limited (DHFL).
  • RBL Bank is a Mumbai-based Indian private sector bank. It was earlier known as Ratnakar Bank.
  • Rajeev Ahuja, Executive Director is serving as Interim MD and CEO of RBL Bank.

Topic: Banking System

3. Equitas Small Finance Bank has received observation letters from stock exchanges.

  • The Small Finance Bank has received letters for the amalgamation of Equitas Holdings with itself.
  • Both BSE and NSE have given no objection to the proposed scheme.
  • The scheme involves an amalgamation between Equitas Holdings Limited, Equitas Small Finance Bank Limited and their respective shareholders.
  • Equitas Small Finance Bank is a small finance bank. It is headquartered in Chennai.

Topic: Indian Economy/Financial Market

4. Factory output increased to 7.1% in April 2022.

  • This is an eight month high level. High level of factory output is mainly driven by higher electricity and mining output.
  • On a sequential basis, industrial production has shown a decline of 9.2%.
  • On a sequential basis, manufacturing output has shown a contraction of 8.8% and mining output has shown 19.7% contraction. 
  • Index of Industrial Production (IIP) had shown a growth of 2.2% in March 2022.
  • In comparison to April 2019, industrial output has shown a growth of 6.8%.
  • In comparison to February 2020, it grew by just 0.7%. IIP values in absolute terms are given below.

Month

IIP

April 2022

135.1

March 2022

148.8

April 2021

126.1

  • Manufacturing output accounts for 77.6% of the weight of the IIP. It grew 6.3% in April. Mining and electricity increased 7.8% and 11.8%, respectively.
  • In absolute terms, the index for electricity output was at an all-time high (2012 series) of 194.5.

Topic: Indian Economy/Financial Market  

5. Fitch Ratings has changed India’s rating outlook from Stable to Negative after two years.

  • It has lowered the economic growth forecast to 7.8% for FY23. It has projected economic growth forecast at 8.5% in March. 
  • The change in outlook from negative to stable means that downside risks to medium-term growth have diminished due to India's rapid economic recovery.
  • In June 2020, Fitch Ratings changed India’s outlook from stable to negative. 
  • Fitch Ratings has kept the rating unchanged at BBB-. India’s rating has remained BBB- since August 2006.
  • It forecast growth of around 7 percent between FY24 and FY27.
  • It forecast the debt-to-GDP ratio to decline to 83% in the current fiscal from a peak of 87.6% in 2020-21.  

Topic: Infrastructure and Energy

6. Coal Ministry aims to produce 140 million tonnes of coking coal by FY30 to reduce imports.

  • It is also targeting to increase the supply of washed coking coal for the steel sector to 25.33 mt by FY30.
  • Coal Ministry has launched coking coal mission to increase coking coal production from 45 mt in FY21 to 140 mt in FY30.
  • Out of this 140 mt, 105 mt will come from Coal India Limited.
  • As of April 2021, India’s total coking coal resources stood at 35,100.17 mt.
  • Coal Ministry is also aiming to increase the supply of washed coking coal to steel sector from 4.42 mt in FY21 to 25.33 mt by FY30.

Topic: RBI

7. RBI has cancelled licence of Mudhol cooperative bank, Bagalkot, Karnataka.

  • RBI has prohibited it from conducting the business of banking including acceptance of deposits and repayment of deposits.
  • RBI announced cancellation of its licence and said that the bank does not have adequate capital and earning prospects.
  • Over 99% of depositors of the banks are eligible to receive full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC).

Topic: Appointments

8. Saraswat Co-operative Bank has appointed two managing directors.

  • It has created the position of two MDs after the retirement of Smita Sandhane as MD on March 31, 2022.
  • The bank has appointed Abhijit V Prabhu and Arti A Patil as MDs.
  • The appointment of Patil and Prabhu as MDs is with effect from April 1, 2022.
  • Saraswat Co-operative Bank is India’s biggest urban co-operative bank. It is headquartered in Mumbai.

 

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