Banking, Financial and Economic Awareness of 16 and 17 June 2020

1. SBI will try to get shareholder's approval for collecting ₹20,000 crore

• During upcoming meeting of its shareholders on July 14, SBI will try to get shareholder's approval for collecting ₹20,000 crore.
• SBI may need additional capital in FY21 due to possible increase in Risk Weighted Assets (RWAs) and increase in the part of profit not given to shareholders and retained with the bank.
• As per RBI's suggestion, banks should have more capital to absorb losses during COVID-19.
• SBI will raise the capital through public issue and private placement. The bank has tried to raise capital during FY19 and FY20 also.
• The part of profit that is not given to shareholders and retained with the bank is called plough-back of profits.
• Risk Weighted Assets (RWAs) are assets of the bank weighed as per the risk.

2. MoU signed between GWM and Maharashtra government

• A Memorandum of Understanding (MoU) has been signed between Great Wall Motors (GWM) and Maharashtra government.
• GWM has also announced that it will invest in Maharashtra government's automotive manufacturing facility located in Talegaon, Maharashtra.
• The agreement for acquisition of Talegaon plant was signed by GWM in January 2020
• At the Auto Expo 2020, GWM had announced 1 billion dollars worth investment plan for India.
• GWM is a Chinese carmaker company. It is largest Sports Utility Vehicle (SUV) producer of China.

3. Supreme Court (SC) issues notice to centre and IRDAI

• Supreme Court (SC) has issued notice to centre and IRDAI and asked them to respond to a plea related with non-implementation of Section 21 (4) of Mental Health Act 2017.
• An advocate has filed plea before SC that government and IRDAI had done nothing to make insurance companies comply with Section 21 (4) of Mental Health Act 2017.
• Section 21 (4) of Mental Health Act 2017 says that mental illness should be included in insurance policies. But, it has not been implemented till now.

4. Important facts about credit disbursed and loans sanctioned by PSBs

• Finance Minister has said that the bank that disbursed maximum credit is SBI and the state receiving maximum credit disbursement is Tamil Nadu.
• Nearly 16 thousand 31 crore rupees were disbursed by PSBs to states and UTs.
• Nearly 32 thousand 49 crore rupees worth loans were sanctioned by PSBs under 100% Emergency Credit Line Guarantee Scheme.
• In the list of PSBs making maximum disbursements, Canara Bank follows SBI.
• In the list of states receiving maximum credit, Uttar Pradesh follows Tamil Nadu.

5. Indian Gas Exchange launched by Petroleum Minister

• Indian Gas Exchange (IGX), India's first nationwide online delivery-based gas trading platform has been launched by Petroleum Minister.
• IGX has been launched as wholly owned subsidiary of IEX.
• With the help of IGX, market participants will be able to trade in standardised gas contracts.
• IGX is fully automated and has web-based interface.
• Indian Energy Exchange (IEX):
  • It is a power trading exchange.
  • IEX was started in 2008.
  • Central Energy Regulatory Commission (CERC) regulates IEX.

Read Banking Awareness PDF - 16 and 17 June 2020