Banking Awareness of 2, 3 and 4 April 2024

Topic: Regulatory Bodies/Financial Institutions

1. The Competition Commission of India (CCI) has given approval to Axis Bank’s additional 6% stake acquisition in Max Life Insurance.

• The deal is valued at ₹1,612 crore. IRDAI had given its approval to the deal in February 2024.
• In August 2023, the board of Axis Bank had approved the proposal to infuse ₹1,612 crore in Max Life.
• This would result into direct increase in bank’s stake in Max Life to 16.22%. The collective stake of Axis entities would increase to 19.02%.
• After extra 6% acquisition by Axis Bank, Max Financial Services Ltd’s stake in Max Life would decrease from 87% to 81%.
• CCI has also approved InfoEdge India Fund-LVF Scheme’s acquisition of about 8% of the share capital of MG Motor India Private Ltd.
• The acquisition of Compulsorily Convertible Preference Shares (CCPS) in Northern Arc Capital Limited by the International Finance Corporation (IFC) has also been approved by CCI.
• International Finance Corporation (IFC) is part of the World Bank Group. Max Life Insurance is a private life insurer.
• Compulsorily Convertible Preference Shares are a kind of preference shares. They are issued by a company with a compulsory conversion feature.

Topic: Indian Economy/Financial Market

2. According to the World Bank’s projections, Indian economy will grow at 7.5% in 2024.

• World Bank has revised its earlier projections for the 2024 by 1.2%.
• In its recent South Asia Development Update, World Bank said growth in South Asia would remain at 6% in 2024.
• It would mainly be driven by recoveries in Sri Lanka and Pakistan and growth in India.
• As per the report, world’s fastest-growing region will be South Asia for the next two years.
• The growth in South Asia is projected to be 6.1% in 2025.
• In its report, World Bank said output growth will return to 6.6% over the medium terms in India.
• After the contraction in FY22/23, Pakistan’s economy will grow by 2.3% in FY24/25.
• In Sri Lanka, output growth will strengthen to 2.5% in 2025.

Topic: Taxation

3. Definitive anti-dumping duty has been recommended on import of flexible slabstock polyol from China and Thailand.

• The Directorate General of Trade Remedies (DGTR) in the Commerce and Industry Ministry has recommended the duty on this polymer.
• Manali Petrochemicals Ltd had appealed for an anti-dumping investigation.
• Manali Petrochemicals Ltd is the sole producer of flexible slabstock polyol in India.
• A definitive anti-dumping duty of $534 per tonne has been recommended on import of flexible slabstock polyol produced by Wanhua Chemical Group in China.
• The anti-dumping duty of $608 per tonne was recommended for other Chinese producers.
• Anti-dumping duty of $470 per tonne has been imposed on import from GC Polyols Company Ltd in Thailand.
• Anti-dumping duty of $480 per tonne has been recommended for other producers.
• A definitive anti-dumping duty is in effect for five years unless revoked earlier.

Topic: Reports and Indices

4. In March, India’s manufacturing PMI reached to 16-year high at 59.1.

• India's manufacturing industry expanded at a fast pace in the last 16 years due to accelerating demand.
• India’s manufacturing PMI jumped to 59.1 in March from 56.9 in February. In January, the PMI was 56.5.
• The production and sales expanded at their fastest rates since October 2020.
• Services’ Purchasing Managers Index (PMI) increased from 60.6 in February to 61.2 in March.
• PMI is based on responses from purchasing executives of 400 companies.
• The index above 50 means expansion. The index below 50 indicates contraction.

Topic: Taxation

5. Anti-dumping investigation has been started on insoluble sulphur imports from China and Japan.

• The Directorate General of Trade Remedies (DGTR) in the Commerce and Industry Ministry has started the investigation.
• The application for anti-dumping investigation was filed by Oriental Carbon & Chemicals Ltd.
• Insoluble Sulphur is a key rubber additive agent. It is chiefly used as vulcanization agent in rubber industry.
• It is used in the manufacture of Tyre, shoes, automobile rubber parts and other rubber products. 

Topic: Miscellaneous

6. Defence exports from India reached to Rs 21,083 crore in FY 2023-24.

• In FY 2023-24, defence exports from India registered a growth of 32.5%.
• Defence exports touched to a record Rs 21,083 crore (approx. US$ 2.63 Billion) in the Financial Year (FY) 2023-24.
• Private sector and Defence Public Sector Undertakings (DPSUs) made significant contributions in achieving the highest-ever defence exports.
• DPSUs and the Private sector contributed 60% and 40% respectively in the defence export.
• The number of export authorisations issued to the defence exporters during FY 2023-24 has also increased to 1507.
• Between 2004-05 to 2013-14 and 2014-15 to 2023-24, the defence export has grown by 21 times.
• The defence export in the period 2014-15 to 2023-24 has gone up to Rs 88, 319 crore.

Topic: Appointments

7. Sorin Investment Fund Chairman Sanjay Nair took over as President of ASSOCHAM for 2024-25.

• He replaced Ajay Singh, SpiceJet Chairman and Managing Director, who has completed his tenure.
• Nair has four decades of experience in the global financial and capital markets, including 25 years at Citi and nearly 14 years at KKR before retiring last year.
• Founded in 1920, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) is a non-governmental trade association and advocacy group.
• It is headquartered in New Delhi.

Topic: Regulatory Bodies/Financial Institutions

8. A new and more user-friendly version of the grievance redressal system, "SCORES 2.0" launched by SEBI.

• The new version of SCORES will make the process more efficient through auto-routing, auto-escalation, monitoring, and reduction in timelines.
• In SCORES 2.0, the time limit for the redressal of complaints has been reduced to 21 days. Moreover, there will be two levels of review.
• The first level review will be done by the ‘Designated Body’ and if the investor is dissatisfied, SEBI will conduct a second review.
• The market regulator has added a KYC registration agency database for easy registration of investors on SCORES.
• From today, investors will be able to lodge complaints only through the new version of SCORES.
• SEBI has informed that the old Scores app has been discontinued and a new app will be launched soon.

Topic: RBI

9. PM Modi addressed the opening ceremony of the 90th anniversary celebrations of RBI in Mumbai on 01 April.

• He recalled the RBI's 80th anniversary celebration in 2014.
• He said the gross NPA of the banks has reduced from 11.25% in 2018 to below 3% by September 2023.
• According to PM, banks have seen a 15% increase in credit growth.
• The Reserve Bank's balance sheet total as of March 31, 2023, is ₹63 lakh crore.
• India currently holds the fourth-largest foreign exchange reserves globally, behind China, Japan, and Switzerland.
• In addition, he unveiled a commemorative coin to honor the RBI's 90th anniversary.
• The RBI has held the repo rate at 6.5% since February 2023.
• The RBI was established on April 1st, 1935. The Reserve Bank of India Act, 1934 and the recommendations of the Hilton Young Commission govern it.
• Throughout its nine decades of existence, the RBI has had 26 governors.
• In October 2021, Shaktikanta Das became the governor of RBI.

Topic: Awards and Prizes

10. SKOCH ESG Award 2024 has been conferred to the REC Limited in Renewable Energy Financing Category.

• REC Limited has received the SKOCH ESG Award 2024 in the Renewable Energy Financing Category.
• REC has emerged as a significant player to India's clean energy transition and actively contributing in the sustainable future of India.
• REC has committed to numerous sustainable projects and signed various MOUs for green projects.
• The SKOCH ESG Awards recognize organizations that show outstanding performance in Environmental, Social, and Governance (ESG) practices.
• The SKOCH ESG Award and Assessment is an important benchmark for evaluating organizations' commitment to India 2047.
• REC Limited:
  • It was established in 1969 to focus on Power Sector Financing and Development across India.
  • It provides financial assistance to state electricity boards, state governments, and central and state power utilities.
  • It is involved in projects related to Generation, Transmission, Distribution and Renewable Energy.

Read Banking Awareness PDF - 2, 3 and 4 April 2024