Banking Awareness of 26, 27 and 28 July 2023

Topic: Banking System

1. Canara Bank has come at first place in the list of public sector banks with the highest lending to corporations and PSUs.

• Canara Bank has topped the list for the fifth year in a row. It led the lending to government-backed entities.
• It disbursed ₹187,813 crore in FY23 to government entities.
• Its lending to government-run public sector enterprises (PSEs) and corporations accounted for more than 45% of the total lending of all public sector banks. 
• Punjab National Bank (PNB) was the second highest lender in FY23. It disbursed ₹70,143 crore in FY23.
• State Bank of India (SBI), which is India’s largest public sector bank, lent ₹66,523 crore to State enterprises in FY23.
• Punjab & Sind Bank is the bank, which had the lowest exposure to State PSUs and corporations in FY23 at ₹88 crore.
• The total lending by all (12) public sector banks to government entities declined to ₹4.12-lakh crore in FY23.
• In the last five years, nationalized banks have not disbursed loans to State governments in the last 5 years according to the Union Finance Ministry.

Topic: RBI

2. RBI has clarified that a banknote with a Star (*) symbol is exactly the same as any other legal banknote.

• Only difference is that a Star (*) is added between the prefix and the serial number.
• RBI said this Star (*) symbol on the number panel of a banknote is an identifier that it is a replaced/reprinted banknote.
• RBI said such banknote are used as replacement for defectively printed banknotes in a packet of 100 pieces of serially numbered banknotes.

Topic: Banking System

3. NR savings account scheme has been launched by Federal Bank for NRI women.

• Federal Bank has launched the scheme on the occasion of the start of the FIFA Women’s World Cup.
• The scheme is named NRE Eve+. It will cater to the unique financial needs of NRI women.
• The scheme offers benefits, which include customised offers, airport lounge access, and insurance coverage.
• Complimentary insurance coverage is available up to ₹78 Lakh, including child education benefits, accidental death.
• Shalini Warrier, Executive Director of Federal Bank, unveiled and presented a prototype of the debit card to first NRE Eve+ customer.
• Beena Muraleedharan, and Danesa Thandassery Raghulal are first NRE Eve+ holders from Abu Dhabi.
• Jean Shahdadpuri is the first NRE Eve+ holder from Dubai.
• Federal Bank:
  • It is an Indian private sector bank with headquarters in Aluva, Kochi.
  • Shyam Srinivasan is the CEO of Federal Bank. Its tagline is your perfect banking partner.

Topic: Miscellaneous

4. SIDBI has taken part as an anchor investor in Promising Lenders Fund (PLF).

• This PLF is managed by Vivriti Asset Management. It is with an aggregate target corpus of ₹700 crore in two tranches.
• Small Industries Development Bank of India (SIDBI) and Vivriti conceptualized the fund to provide debt capital to microenterprises.
• It is envisaged that the Promising Lenders Fund will benefit over 8,000 microenterprises and 80,000 women entrepreneurs.
• The fund’s first phase (PLF-I) with a fund size of ₹300 crore went live in March 2022. It became fully invested by October 2022.
• The fund’s 2nd phase (PLF-II) with a fund size of ₹400 crore went live in March 2023. It is expected to close by December 2023.
• Small Industries Development Bank of India (SIDBI):
  • It is a development financial institution in India. It is the principal financial institution in the MSME sector.
  • It works under the Department of Financial Services. It is regulated and supervised by the Reserve Bank of India (RBI).
  • It was established in 1990. It is headquartered in Lucknow, UP. Sivasubramanian Ramann is Chairman and Managing Director of SIDBI.

Topic: Corporates/Companies

5. AMD, an American multinational semiconductor company, will invest $400 million in India over 5 years.

• It will build its new campus in Bengaluru. This will become the company’s biggest design centre.
• The announcement was made by AMD Executive Vice-President and Chief Technology Officer Mark Papermaster at the Semicon India 2023.
• Semicon India 2023 was inaugurated by PM Modi at Gandhinagar on 28 July 2023.
• AMD started its operations in India in 2001 by opening a centre in New Delhi.
• Advanced Micro Devices (AMD) is an American multinational semiconductor company based in Santa Clara, California.

Topic: Reports and Indices

6. As per SBI’s economic research report ‘Ecowrap’, India is likely to be 3^rd largest economy in 2027 (or FY28).

• This projection is based on actual GDP data as on March 2023.
• This is an upward movement of seven places since 2014 when India was ranked 10th.
• Maharashtra and Uttar Pradesh will break the $500-billion mark in 2027 (or FY28). UP will be the Indian ‘Land of Midnight Sun’.
• As per the report, India will surpass both Japan and Germany in 2027 at the current growth rate.
• The reports has been put together by SBI’s Economic Research Department (ERD).
• India is likely to add $0.75 trillion in every 2 years. India is likely to touch $20 trillion by 2047.
• India’s global share in GDP will reach beyond 4% by 2027.
• Economic Research Department highlighted India needs to grow at a CAGR (compounded annual growth rate) of 8.4% till 2027.

Topic: Regulatory Bodies/Financial Institutions

7. Securities Appellate Tribunal (SAT) fined SEBI with ₹10 lakh over investor complaint probe.

• SAT has fined SEBI for not registering and hearing the complaint of an investor despite its order in January 2021.
• Six appeals were filed with SAT against a SEBI communication.
• The appellants alleged they invested Rs 8.25 crore in a fixed income scheme with Ventura Securities (VSL).
• They filed complaints with SEBI, NSE and moved the Bombay High Court.
• The investors then moved SAT. SAT directed SEBI to register the complaints of the appellants.
• It directed SEBI to conduct a detailed investigation within three months after hearing the appellants.
• Securities Appellate Tribunal (SAT):
  • It is a statutory body. It was established under the provisions of Section 15K of the SEBI Act, 1992.
  • It was established to hear and dispose of appeals against orders passed by the SEBI.
  • SAT also hears and disposes of appeals against orders passed by the Insurance Regulatory Development Authority of India (IRDAI).
  • Justice Tarun Agarwala is its current Presiding officer. It has only one bench which sits at Mumbai.

Topic: Regulatory Bodies/Financial Institutions

8. Regulations for delisting of shares are being reviewed by SEBI.

• SEBI is reviewing regulations by considering a fixed price option.
• It is also reviewing trading plans for insiders and considering introducing a mechanism of instantaneous settlement in exchanges.
• Presently, 90% stake by the parent or promoter is the threshold for delisting. Price discovery is through a reverse book-building process.
• An advisory committee under Keki Mistry has been constituted to relook at the delisting regulations.
• The delisting regulations is likely to be ready by the end of the year.
• Having a fixed price for delisting of the shares is one of the options being discussed.
• With introduction of instantaneous settlement in exchanges, pay in and payout of shares and funds can take place in real time through UPI.

Topic: Indian Economy/Financial Market

9. India's FY24 GDP growth forecast has been raised by IMF by 20 basis points to 6.1%.

• International Monetary Fund (IMF) has also revised the upward growth forecast for the global economy by 20 basis points for 2023 to 3%.
• IMF raised India's FY24 GDP growth forecast citing its stronger-than-expected growth momentum in the March quarter of FY23.
• India’s economic growth increased by 6.1% in the March quarter of FY23.
• Last month, Organization for Economic Co-operation and Development (OECD) revised upward its forecast to 6% for FY24.
• RBI expects the Indian economy to expand at 6.5% in FY24.
• IMF has forecasted an inflation of 4.9% for FY24.
• IMF also revised upward its growth forecasts for the US by 20 basis points and for the UK by 70 basis points.
• IMF said world trade growth will decline from 5.2% in 2022 to 2% in 2023. It will then rise to 3.7% in 2024. It will remain below the 2000-19 average of 4.9%.
• Deloitte India has forecasted India’s GDP is likely to grow 6-6.3% in FY24.

Topic: Reports and Indices

10. National Coal Index has shown a decline of 33.8% in May 2023.

• The National Coal Index has shown a decline of 33.8% to 157.7 points in May, 2023 as against 238.3 points in May, 2022.
• This is indicative of a strong supply of coal in the market with sufficient availability to meet the growing demands.
• Similarly, for non-coking coal, the NCI for May 2023 stood at 147.5, a decline of 34.3% over May 2022.
• The Coking Coal index also declined by 32.6% in May 2023 to 187.1 points.
• In June 2022, the highest point of NCI was recorded, when it reached 238.8 points.
• However, it registered a decline in the subsequent months, indicating the availability of sufficient quantity of coal in the Indian market.
• National Coal Index (NCI) is a price-based index that incorporates coal prices from all modes of sale including notified prices, auction prices and import prices.
• NCI was established with the base year of 2017-18. It acts as a reliable indicator of market dynamics, providing valuable insight on the movement of coal prices.
• The decline in the National Coal Index signifies a more balanced market, aligning supply and demand.

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