Banking Awareness of 28 and 29 May 2023

Topic: Banking System

1. Bank of Maharashtra is ranked at number one in terms of management of bad loans.

• Its net non-performing assets (NPAs) have declined to the lowest level of 0.25% during FY23.
• This is lowest level among all banks having total business above ₹3 lakh crore and not just public sector banks (PSBs).
• Bank of Maharashtra was followed by HDFC Bank with net NPA declining to 0.27%.
• Kotak Mahindra Bank stood at the third place with NPAs at 0.37% of net advances.
• Among the PSBs, Bank of Maharashtra was followed by the State Bank of India with net NPAs declining to 0.67% at the end of March 2023.
• State Bank of India was followed by Bank of Baroda at 0.89%.
• Bank of Maharashtra has highest Provision Coverage Ratio at 98.28%.
• It was followed by UCO Bank at 94.50% and Indian Bank at 93.82%.
• Bank of Maharashtra has highest Capital Adequacy Ratio (CAR) of 18.14% among PSBs.
• It was followed by Punjab & Sind Bank at 17.10% and Canara Bank at 16.68% as on 31 March, 2023.

Topic: Indian Economy/Financial Market

2. India’s finished steel exports increased by nearly 13% in April 2023 to 0.9 million tonnes.

• Europe and Middle East emerged as main buyers in April. Shipments to the Middle East more than doubled in April.
• Non-alloyed offerings, alloyed ones, and stainless steel are included in finished steel.
• In value terms, steel exports were at $901.3 million in April. They were at $890 million (approximately) in April last year.
• Spain was the second-highest export market for Indian steel mills. 155% increase in shipments to Spain was recorded from 0.043 mt in April 2022 to 0.11 mt in April 2023.
• This is the first time Spain has found place among the top five in over 12 months.
• Italy maintained its position as one of the top buyers of Indian steel.
• Shipments to UAE increased 298% in volume and 144% in value during April, to 0.06 mt and $51.3 million, respectively.
• Vietnam, one of the key buyers of Indian steel, recorded decline in exports.
• Belgium dropped from the list of the top 5 export markets for Indian steel mills.
• Volume-wise, the most exported item was HR Coil/Strip. It accounted for 39% share in total finished steel.
• Flat product exports accounted for a 92% share. Flat products include products like steel plates, hot-rolled coils and sheets, cold-rolled coils and sheets, electrical sheets, and tin plates.

Topic: Indian Economy/Financial Market

3. India’s GDP is likely to grow in the 6-6.5% range in FY24, according to Bank of Baroda’s economic research department (ERD). 

• Bank of Baroda’s ERD has taken into account an expected slowdown in the global economy.
• It has also taken into the account the continued resilience of the domestic economy.
• Bank of Baroda’s GDP growth estimate for FY24 is slightly higher than IMF’s projection of 5.9%.
• BoB’s ERD team said foodgrain production is expected to increase 2-3% this year.
• ERD highlighted that industrial growth would recover. It is pessimistic on the prospects for textiles, machinery, engineering goods, gems and jewellery, ports and durables.
• As per BoB’s ERD, the fiscal deficit target of 5.9% of GDP for FY24 will be met.
• Government’s FY24 capital expenditure target of Rs 10 lakh would provide an impetus to industrial growth because of the multiplier effect.

Topic: Banking System

4. HDFC Bank has entered into partnership with Manipal Global Academy of BFSI.

• The partnership is to launch Future Banker 2.0 programme to groom young graduates into banking professionals within a year.
• The recruitment initiative seeks to set up a talent pipeline for the bank’s retail banking division.
• The one-year professional diploma will be offered in collaboration with Manipal Global Academy of BFSI.
• The programme has eight months of paid internship. It also has on-the-job training at HDFC Bank branches nationwide.
• When the students will completed the course, they will get a postgraduate diploma in sales and relationship banking from Manipal Academy of BFSI.
• On successful completion, students will also get an assured job placement as a personal banker at the Deputy Manager level within HDFC Bank.
• HDFC Bank:
  • HDFC Bank is India's largest private sector bank. It is India’s second largest lender after the State Bank of India.
  • It is headquartered in Mumbai. It was founded in 1994. The CEO of HDFC Bank is Sashidhar Jagdishan.

Topic: Summits/Conferences/Meetings

5. Eighth meeting of NITI Aayog Governing Council chaired by PM Modi.

• On 27 May 2023, the eighth meeting of the NITI Aayog Governing Council was held at New Delhi.
• The meeting focused on the theme “Viksit Bharat @ 2047: Role of Team India.”
• Seven more major topics were discussed in the meeting.
• These include Thrust on MSMEs, Infrastructure and Investments, Minimising Compliances, Women Empowerment, Health and Nutrition, Skill Development, and Gati Shakti for area development and social infrastructure.
• Chief Ministers and Lieutenant Governors of the States, Union Ministers and Vice Chairman and Members of NITI Aayog participated in the meeting.
• The meeting was boycotted by chief ministers of West Bengal, Punjab and Delhi.
• Governing Council of NITI Aayog and its meetings:
  • It is the apex body of NITI Aayog. It includes all chief ministers, lieutenant governors of Union Territories and several Union ministers.
  • Generally, the full council meeting is held every year. In 2022, it was held under the chairmanship of PM Modi on August 7.
  • The meeting was not held in 2020 due to the coronavirus pandemic. The council’s first meeting took place on February 8, 2015.

Topic: Banking/Financial Schemes

6. Textile Industry may get second tranche of the production-linked incentive (PLI) scheme worth ₹4,307 crore.

• PLI 2.0 scheme is likely to cover manufacture of garments, made-ups and textiles accessories of all materials, natural or man-made.
• Current edition of the PLI scheme for textiles was introduced on 08.09.2021 with an approved outlay of Rs.10,683 crore over a five year period.
• It is limited to production of man-made fibre fabrics and apparels and technical textiles.
• The second edition is likely to cover garments, made-ups and accessories of all materials including cotton.
• Under the PLI 2.0 scheme, minimum investment and turnover criteria is considerably lower.
• The qualifying investment under the proposed scheme may be in the ₹15-45 crore range.
• Minimum prescribed turnover is likely to be ₹30-90 crore to earn incentives ranging between 8% and 10%.

Topic: World Economy

7. World’s fourth-largest economy, Germany, entered into recession.

• The Gross Domestic Product (GDP) of Germany recorded its second quarterly contraction.
• As per the latest data, the output of Germany has dropped 0.3% in the first three months of the year, following a 0.5% contraction at the end of 2022.
• Household consumption and Government spending also decreased significantly.
• Investment in machinery and equipment increased by 3.2% as compared to the previous quarter. Investment in construction sector has also increased by 3.9%.
• Public spending has declined by 1.2 per cent in the first three months due to high inflation.
• The inflation rate of Germany is more than Europe’s average but below than UK's 8.7 per cent.
• Declined purchasing power, aggressive monetary policy tightening and the slowdown of the US economy have weakened economic activities.
• The European Central Bank (ECB) has raised its interest rate by 375 basis points since July.
• A recession is defined as two consecutive quarters of declining output.

Topic: Agriculture

8. Agriculture Insurance Company launched insurance products for the livestock, aquaculture and sericulture sectors.

• IRDAI has granted license to Agriculture Insurance Company to introduce products for the sericulture, aquaculture and livestock sectors.
• Agriculture Insurance Company has already occupied a 50 per cent market share in the crop insurance market under the Pradhan Mantri Fasal Bimal Yojana (PMFBY) scheme.
• Agriculture Insurance Company has a capital base of Rs 200 crores and was launched in the year 2002.
• Agriculture Insurance Company:
  • It is a government-owned-agricultural insurer headquartered in New Delhi.
  • It is under the administrative control of the Ministry of Finance.
  • It started its business operations on 1 April 2003.
  • Its main aim is to provide insurance coverage and financial support to the farmers.

Topic: Miscellaneous

9. A “SAMARTH” campaign launched to promote digital transactions at Gram Panchayat Level.

• On 25 May, 'Samarth campaign' has been launched by Shri Giriraj Singh to promote digital transactions in 50000 Gram Panchayats under Amrit Mahotsav in Lucknow.
• The Ministry of Rural Development is running this campaign, which was started on 1st February 2023 and will continue till 15 August 2023.
• The major thrust of the Samarth campaign is to promote digital transactions in rural areas, with a special focus on women.
• Shri Giriraj Singh said that the NPA of Self-Help Groups (SHGs) which was 9.58% in 2013, has come down to below 2% now.

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