Banking Awareness of 24 and 25 February 2023

Topic: Banking System

1. Karnataka Bank and Paisalo Digital have signed a co-lending agreement to offer financial support to the small income segment.

• The bank has also entered into co-lending agreement to give impetus to the micro and small enterprise segment of the country.
• The agreement will leverage bank’s low cost of funds and its end-to-end digital capabilities and Paisalo to help servicing of priority sector loans.
• The partnership will create synergy between Paisalo Digital Ltd and Karnataka Bank.
• Paisalo Digital Ltd is a non-deposit-taking NBFC registered with the RBI.
• Karnataka Bank is a Scheduled Commercial Bank based in Mangaluru, Karnataka. It is a private sector bank. Mahabaleshwara M. S is its MD and CEO.

Topic: Miscellaneous

2. A 100-KWp on-grid solar power plant has been installed by Federal Bank at its corporate office in Aluva, Kochi, Kerala.

• Federal Bank’s MD and CEO Shyam Srinivasan inaugurated the solar plant.
• The total capacity of the bank’s solar plant installations has increased to 300 KWp.
• The bank has installed solar plants at many branches and offices across the country.
• Federal Bank is an Indian private sector bank with headquarters in Aluva, Kochi.
• Shyam Srinivasan is CEO of Federal Bank. Its tagline is your perfect banking partner.

Topic: Banking System

3. Pine Labs and Thomas Cook (India) Limited have entered into partnership with National Payments Corporation of India (NPCI).

• The partnership is to enable payments via UPI for foreign nationals from G20 countries.
• The prepaid payment product is issued by Pine Labs under the PPI authorisation from RBI.
• Foreign nationals from G20 countries can access this facility on arrival in India at Thomas Cook’s airport counters.
• Instead of receiving rupees in cash when exchanging foreign currency at Thomas Cook's counter, the consumer can open a Pine Labs Fave Money prepaid account loaded with the rupee amount.
• They would need to download the Pine Labs Fave app. Then, they would need to sign in to use the preloaded money by scanning any UPI QR code at merchant outlets.
• On departure, the remaining amount can be encashed at Thomas Cook’s airport counters.
• Thomas Cook (India) Ltd. is an Indian travel agency. It is headquartered in Mumbai. It provides travel services.
• Pine Labs is an Indian company that provides financing technology.

Topic: Corporates/Companies

4. Niva Bupa Health Insurance Company has announced the launch of ‘ReAssure 2.0’.

• ReAssure 2.0 offers many industry first features. It offers lock in of entry age until customer makes first claim.
• It helps customers save on premium. ReAssure 2.0 also provides ReAssure Forever.
• In ReAssure Forever, the base sum insured will be triggered after the first claim.
• It also offers Booster+ benefit. As per Krishnan Ramachandran, MD and CEO, Niva Bupa Health Insurance, ReAssure 2.0 is a comprehensive plan with the potential to revolutionise the health insurance sector.
• ReAssure 2.0 is available as an individual, multi-individual and family floater. It starts from ₹5 lakh to₹1 crore for the age bracket of 18 years to 65 years.

Topic: Reports and Indices

5. It is expected that AUM of Asset Reconstruction Companies (ARCs) will grow almost 10% this fiscal as per Assocham-Crisil Ratings report.

• As per an Assocham-Crisil Ratings report, Assets Under Management (AUM) of ARCs is expected to grow to ₹1,19,000 crore after a period of relative stagnation.
• The growth in AUM, as measured by security receipts outstanding, dropped to single digit in past 4 years.
• The report said AUM had grown at a steady pace (from ₹42,000 crore to ₹95,000 crore) between fiscals 2014 and 2018.
• The report added stressed assets opportunity is shifting from corporate to retail and MSME loans.
• As per the report, about a fourth of the restructured MSME loans could slip into NPA category and absolute quantum of NPAs may rise in the retail segment.
• According to the report, asset quality of the financial sector is at its healthiest in recent times due to sharp reduction in NPAs in corporate loans.
• As per CRISIL Ratings’ estimates, it is expected gross NPAs for banks will decline 90 basis points (bps) year-on-year (y-o-y) to about 5% this fiscal. They will decline by another 100 bps to a decadal low of 4% by March 31, 2024.
• In the MSME segment, gross NPAs may rise to 10-11% by March 2024 from about 9.3% as on March 31, 2022.

Topic: Reports and Indices

6. India is ranked at 42^nd on the 2023 International IP Index.

• 2023 International IP Index shows that twenty-eight economies’ scores remained unchanged.
• India has generous R&D and IP-based tax incentives and strong awareness-raising efforts regarding the negative impact of piracy and counterfeiting.
• India is a global leader in targeted administrative incentives for the creation as well as use of IP assets for Small and Medium Enterprises.
• However, dissolution of the Intellectual Property Appellate Board in 2021 and under-resourced judiciary raises serious concerns about rights holders' ability to resolve IP-related disputes and enforce their IP rights in India.
• There is a limited framework for the protection of biopharmaceutical Intellectual Property (IP) rights in India.
• US Chamber of Commerce Global Innovation Policy Center publishes the annual International IP Index report.
• International IP Index:
  • It is released by the US Chambers of Commerce.
  • 2023 International IP Index is the eleventh edition of International IP Index.
  • International IP Index benchmarks IP framework in 55 global economies across 50 indicators.  

Topic: Banking System

7. Saraswat Bank has entered into agreement with Tagit to deploy omnichannel digital banking solutions for its retail and corporate customers.

• As part of the agreement, the bank will use Mobeix Digital Banking platform of Tagit to enhance customer experience.
• The Mobeix platform will offer the bank’s retail and corporate customers a comprehensive set of digital services across mobile and web.
• This will increase the market reach and enhance customer engagement.
• Gautam Thakur, chairman, Saraswat Bank said that partnership with Tagit is an initiative to provide an omnichannel facility to the bank’s customers through mobile banking and internet banking application.
• Tagit is an award-winning digital banking solutions provider. It is based out of Singapore.
• Saraswat Bank (Saraswat Co-operative Bank Ltd.) is an urban co-operative bank. It is headquartered in Mumbai.

Topic: Awards and Prizes

8. Sajjan Jindal has won the EY Entrepreneur of the Year Award 2022.

• On 23 February, Sajjan Jindal, Chairman and Managing Director, JSW Group, has been awarded the EY Entrepreneur of the Year 2022.
• He will now represent India at the EY World Entrepreneur of the Year Award (WEOY) in Monte Carlo in June 2023.
• The 7-member jury led by K V Kamath, former Chairman of ICICI Bank, selected Jindal as the EOY 2022 winner.
• He has been selected for his ‘exceptional entrepreneurial’ journey in scaling the global conglomerate.
• Sajjan Jindal, who earned the moniker "Man of Steel," was the first Indian to hold the position of chairman of the World Steel Association.
• KP Singh, Chairman Emeritus of DLF Group, has been awarded with the Lifetime Achievement Award by EY.
• Awards were also announced for other categories, with winners representing both startups to mature industries and young entrepreneurs.    
• Here is the list of winners:

Topic: Indian Economy/Financial Market

9. UK has surpassed India as the world's sixth-largest equities market.

• For the first time in over nine months, the UK has overtaken India as the sixth-largest equity market in the world.
• UK stock market is proving to be more attractive to investors due to the weakening of the British currency pound. Uncertainties due to the Adani group have pressured the Mumbai stocks market.
• According to data compiled by Bloomberg, the combined market capitalization of primary listings in the UK, excluding ETFs and ADRs, reached about $3.11 trillion as of February 21, about $5.1 billion higher than their Indian counterparts.
• After outperforming global equities last year, the UK's FTSE 350 index is up 5.9% so far this year, versus 4.7% in the MSCI all-country world index growth has been left behind.
• UK’s equity market capitalization remains behind from France.
• The MSCI India Index has fallen 6.1% this year, while Gautam Adani's group of firms has lost roughly $142 billion in market capitalization since the Hindenburg report was released on January 24.

Topic: Appointments

10. Former Mastercard chief executive Ajay Banga is likely to become next President of World Bank.

• US President Joe Biden has nominated former Mastercard chief executive Ajay Banga as president of World Bank.
• Recently, David Malpass announced to step down from his World Bank president post.
• Ajay Banga is currently serving as Vice Chairman at General Atlantic.
• He is an Honorary Chairman of the International Chamber of Commerce.
• He worked with US Vice President Kamala Harris as the Co-Chair of the Partnership for Central America.
• He received the Padma Shri Award in 2016 and Distinguished Friends of Singapore Public Service Star in 2021.
• United States America is the largest shareholder in the World Bank and traditionally the nominee of US gets approval from Bank’s board of executive directors.

Topic: Miscellaneous

11. G7 finance chiefs meeting was held on 23 February in Bengaluru.

• Financial chiefs of the Group of Seven (G7) meet to discuss measures against Russia so that it could end the Ukraine war.
• Japan chaired the meeting of finance ministers and central bank governors from the G7 nations.
• The main focus of the meeting was on the Ukraine war and the global economy.
• They discussed issues related to Inflation caused by Russia’s war and support for emerging market economies facing debt problems.
• Japan will host the G7 Hiroshima Summit from May 19–21 in 2023.
• G7:
  • It is an intergovernmental organization that was formed in 1975.
  • The G7 comprises Britain, Canada, France, Germany, Italy, Japan, and the United States.
  • India is not a member of the G7 group.
  • As of 2020, G7 accounts for more than half global net wealth.

Topic: Miscellaneous

12. Churchgate railway station in Mumbai will be renamed after CD Deshmukh, the first Indian RBI governor.

• In the first national executive meeting of the Eknath Shinde-led Shiv Sena faction, a resolution was passed to rename the Churchgate railway station after the name of former RBI governor and Union Finance Minister CD Deshmukh.
• It will be called Chintamanrao Deshmukh station. Chintaman Dwarkanath Deshmukh was the first Indian Governor of RBI.
• He joined RBI in 1939. He was appointed as Governor of the RBI in August 1943.
• He was one of the eight Deputy Governors of the Bank who have become its Governor.
• He was also an economist and a civil servant. He also served as secretary to the Secretary-General at the Second Round Table Conference of 1931.
• During his tenure, RBI began a Research and Statistics department.
• RBI’s role as the central banks of Burma and State Bank of Pakistan also ceased during his tenure.
• He was one of five members of the Planning Commission when it was constituted in 1950 by a cabinet resolution.
• In 1950, he was appointed as the Union Finance Minister. He used deficit financing as a key tool in bringing about planned investment.
• In first budget, he proposed an increase in taxes in 1951-52. He presented an interim budget for 1952-53 and a full-fledged budget in India’s first elected Parliament.
• He also worked as chairman of the University Grants Commission from 1956-1961.

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