Banking, Financial and Economic Awareness
1. Bank of Baroda's shares gain more than 4%
- Bank of Baroda's shares gain over 4% after a share purchase agreement was signed between Ansa Merchant Bank and Bank of Baroda.
- The agreement was signed to sell the Trinidad & Tobago businesses of Bank of Baroda.
- In October 2007, Bank of Baroda started its businesses in Trinidad & Tobago.
- Bank of Baroda:
- It is the third-largest public sector bank in India
- Chairman: Hasmukh Adhia
- Tagline: India's International Bank
2. Moody’s forecasts India’s GDP growth at 5.6%
- Moody's has lowered India’s GDP growth forecast to 5.6% for 2019 due to slow consumption demand and employment growth.
- It expects India’s GDP growth to increase to 6.6 % and 6.7 % in 2020 and 2021, respectively.
- On November 8, Moody's had changed India's outlook from stable to negative.
- Gross Domestic Product(GDP):
- GDP is the total value of final goods and services produced within a country over a period of one year.
- Currently, the base year for calculation of GDP is 2011-12.
3. Liquidity Support (LS) to NEFT member banks
- RBI will provide Liquidity Support (LS) to banks who are taking part in the NEFT payment system.
- LS will be an extra collateralized intra-day liquidity facility to help NEFT settlements on a 24x7 basis.
- LS can be availed by banks eligible for the Intra-Day Liquidity (IDL) facility.
- From December 16, National Electronic Funds Transfer (NEFT) will be available on a 24x7 basis.
- National Electronic Funds Transfer (NEFT):
- It allows the electronic transfer of funds from any branch of bank to account with any other NEFT-enabled branch.
- It was started in November 2005.
4. Strategic partnership between ZestMoney and Northern Arc Capital
- ZestMoney and Northern Arc Capital have entered into a strategic partnership.
- The partnership is a part of Northern Arc Capital's aim of addressing growing EMI financing demand in India.
- Northern Arc Capital will gradually fund ZestMoney’s various products.
- Northern Arc Capital is a financial services provider.
- ZestMoney is an AI-based EMI financing platform. It provides easy access to loans for improving access to credit in India.
5. Rs 350 crore raised by Magma Fincorp
- Magma Fincorp has raised Rs 350 crore through Non-Convertible Debentures (NCDs).
- FMO issued NCDs on a private placement basis under Voluntary Retention Route (VRR).
- Voluntary Retention Route (VRR) allows foreign portfolio investor (FPI) to invest in Indian debt.
- FMO is a Dutch Development Bank.
- Magma Fincorp is a non-banking financial company. It is based in Kolkata.
- Non-Convertible Debentures (NCDs):
- They are financial instruments that are not convertible into shares or equities.
- They are used for raising long-term funds.
- In comparison to convertible debentures, NCDs provide higher returns.
- In India, NCDs have a minimum maturity period of 90 days.