Banking, Financial and Economic Awareness
1. Michael Patra appointed as new RBI deputy governor
- Michael Debabrata Patra has been appointed as a new RBI deputy governor for three years.
- Currently, he is working as Executive Director in the Monetary Policy Department of RBI. He is also one of the six members of the Monetary Policy Committee (MPC).
- In June 2019, Viral V Acharya resigned from the post of Deputy Governor and Michael Patra will take his place. His name has been approved by the Appointments Committee of the Cabinet (ACC).
- RBI can have a maximum of four deputy governors. The other three deputy governors are N S Vishwanathan, B P Kanungo and M K Jain.
- Out of the four deputy governors, two are usually chosen from executive directors of RBI. One is nominated from chairpersons of PSBs. One is an economist.
- Appointments Committee of the Cabinet (ACC) consists of Prime Minister and Minister of Home Affairs. Prime Minister is its chairman.
2. 33 % increase in consolidated net profit of Induslnd Bank
- In October to December quarter of 2019, Induslnd Bank has reported a 33% increase in consolidated net profit at Rs 1,309 crore.
- Bank's consolidated net profit increased due to growth in retail and treasury revenue. The bank also reported a 72 % increase in provisioning.
- The bank's net profit decreased by 6% from Rs 1,383.37 crore net profit in the second quarter of FY20.
- The bank reported a 34% increase in net interest income for October to December quarter of 2019.
- Net interest income is the difference between income from interest bearing assets(loans, mortgages and securities) and expenses on interest bearing liabilities (customer deposits).
- Induslnd Bank:
- It is a Mumbai based private sector bank.
- It was started in 1994.
- CEO: Romesh Sobti
- Tagline: We Make You Feel Richer
3. WPI based inflation highest in last seven months
- In December 2019, WPI based inflation stood at a seven-month high level of 2.59 %.
- It stood at 0.58% in November 2019 and at 3.46 % in December 2018.
- In December 2019, inflation for food and non-food articles increased to 13.24% from 7.7 %.
- In November 2019, inflation for food and non-food articles was 11.1 % and 1.93 %.
- In the category of food articles, vegetable prices increased to 69.69% and caused an increase in WPI based inflation.
- In December 2019, inflation for primary articles was 11.46%. In November 2019, it was 7.7%.
- Currently, a total of 697 items are covered in the Wholesale Price Index. These include 117 primary articles with 22.26 % weightage, 16 fuel & power items with 13.15% weightage and 564 manufactured products with 64.23 % weightage.
4. Vedanta allowed to bid for surplus alumina from National Aluminium Company Ltd (NALCO)
- Supreme Court has allowed the Jharsuguda unit of Vedanta to bid for surplus alumina being sold by Nalco.
- Earlier, Odisha High Court has also allowed Vedanta. But, Nalco challenged the order in Supreme Court and said that Vedanta must participate in the bid through its UK unit.
- Vedanta said that as per the policy of the Central government, Special Economic Zone (SEZ) is considered as foreign territory. So, it should be permitted to take part in bid.
- Vedanta Limited is an India based mining company. UK based company Vedanta Resources owns Vedanta Limited. Jharsuguda unit of Vedanta is located in Orissa.
- National Aluminium Company Ltd (Nalco) is a Navratna Central Power Sector Enterprise (CPSE). It was started in 1981.
5. Trade between India and China decreases in 2019
- In 2019, trade between India and China decreased from $95.7 billion in 2018 to $ 92.68 billion in 2019.
- In 2019, trade deficit between India and China also decreased from $58.04 billion in 2018 to $56.77 billion in 2019.
- While India's imports to China decreased by 0.2 %, China's exports to India increased by 2.1 % in 2019.
Multiple Choice Questions (MCQs)
1. Who has been appointed as the new Deputy Governor of RBI?
- V V Acharya
- N S Vishwanathan
- M D Patra
- B P Kanungo
- M K Jain
2. In October to December quarter of 2019, Induslnd Bank has reported a 33% increase in consolidated net profit. Induslnd Bank is a
- Public Sector Bank
- Private Sector Bank
- Urban Cooperative Bank
- Small Finance Bank
- Non-Banking Financial Company
3. Which of the following carries maximum weightage in WPI?
- Primary articles
- Fuel items
- Power items
- Manufactured products
- Food articles
4. Supreme Court has allowed the Jharsuguda unit of Vedanta to bid for surplus alumina being sold by Nalco. Where is Jharsuguda located?
- Madhya Pradesh
5. Trade between India and China in 2019 decreased by