Topic: Banking System
1. Tamilnad Mercantile Bank (TMB) has entered into bancassurance partnerships with Cholamandalam MS General Insurance and Max Life Insurance.
- As part of the partnership, TMB will provide general insurance products of MS General Insurance Company Ltd to its customers.
- TMB will also provide life insurance schemes of Max Life Insurance Company to its customers.
- The bank will also work with both the partners to offer tailor-made products for its customers in future.
- Tamilnad Mercantile Bank is a Thoothukudi (Tamil Nadu)-based bank. S Krishnan is its MD & CEO. It is a private bank. Its tagline is Be a step ahead of life.
Topic: Indian Economy/Financial Market
2. S&P Global Ratings lowered India’s economic growth forecast for FY23 to 7%.
- However, it said that domestic demand-led economies like India will be less impacted by the global slowdown.
- In September, S&P had projected the Indian economy to grow 7.3% in FY23 and 6.5%in FY24.
- It has now said that India’s output will expand 6% in the next fiscal year.
- It projected inflation (average) at 6.8% in FY23. It projected that RBI’s benchmark interest rate will rise to 6.25% by March 2023.
- RBI has already hiked the interest rate to a 3-year high of 5.9%.
- S&P has projected the exchange rate to remain at Rs 79.50 to a dollar by March-end, as against the current Rs 81.77 to a dollar.
- Earlier, World Bank has cut its growth estimate for India by 100 basis points to 6.5%. IMF has cut it to 6.8% from 7.4%.
- Asian Development Bank has cut its projection from 7.5% to 7%.
3. Adani Group is set to win Asia’s biggest slum redevelopment project – Dharavi redevelopment with a bid of ₹5,069 crore.
- Dharavi is one of the largest slum clusters in Asia. Three companies had submitted bids for its redevelopment.
- They were Adani Realty, DLF and Naman Group. Naman group did not qualify in the technical bidding for the Dharavi redevelopment project.
- Adani has bid ₹5,069 crores, DLF has filed a bid of ₹2,025 crores.
- Dharavi redevelopment authority will go to the State government for approvals and set up a Special Purpose Vehicle for the project.
- The 20,000 crore project is expected to be finished in 17 years, with the rehabilitation phase taking seven years to complete.
Topic: Regulatory Bodies/Financial Institutions
4. PFRDA allowed National Pension System (NPS) digital onboarding through Central KYC (CKYC).
- Through a circular, PFRDA has informed that prospective subscribers are provided with another option for opening NPS Account through CKYC through an online and paperless process.
- CKYC is a government initiative. It allows NPS subscribers/ financial investors to complete their KYC only once in order to interact with many service providers across financial sector under the ambit of various regulators.
- CKYC is managed by CERSAI. CERSAI is the government authorized entity to function as Central KYC Registry (CKYCR).
- CKYC Identification Number is a 14-digit number. It is allotted by CERSAI to an investor after completion of CKYC formalities.
- Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) is a central online security interest registry of India. It was founded in March 2011.
5. As per latest RBI data, personal loans’ proportion in overall credit of scheduled commercial banks has risen from 25.94% in 2021 to 27.29% in 2022.
- Southern region formed the largest proportion of personal loans at 35% in scheduled commercial banks’ overall personal loans portfolio in 2022.
- Southern region was followed by Western region (26%), Northern region (16%), Central region (12%), Eastern region (9%) and North-Eastern region (2%).
- Personal loans accounted for 51% of SCBs’ overall credit in North-Eastern region.
- It was followed by Central region and Southern region (32% each), Eastern region (30%), Western region (25%) and Northern region (20%) as per “Handbook of Statistics on Indian States 2021-22”.
- RBI’s latest sectoral deployment of credit data showed that personal loans segment has continuously grown for banks.
- It has grown to 19.6% in September 2022 from 13.2% a year ago. This growth was largely caused by housing and vehicle loans segments.
- Personal loans include loans given to individuals and consists of
- consumer credit,
- education loans,
- loans given for creation/ enhancement of immovable assets (e.g., housing, etc.), and
- loans given for investment in financial assets (shares, debentures, etc.).
Topic: Reports and Indices
6. Year-on-Year (y-o-y) growth in term deposits increased to 10.2% in September 2022.
- Current account (CA) and savings account (SA) growth moderated to 8.8% and 9.4% from 17.5% and 14.5%, respectively.
- The data is according to the RBI’s latest report on Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks (SCBs).
- The share of savings deposit in total deposits has grown from 32.4% in June 2019 to 35.2% in June 2022.
- In terms of deposit mobilisation, the private sector bank group has been leading over regional rural banks, foreign banks, and public sector banks.
- According to the report, bank credit growth improved further to 17.2% (y-o-y) in September 2022 from 14.2% a quarter ago and 7.0% a year ago.
- However, aggregate deposits growth (y-o-y) stood at 9.8% in September 2022.
- As per the report, all-India credit-deposit (CD) ratio increased to 74.8% in September 2022 from 73.5% a quarter ago and 70.0% a year ago.
- CD ratio for metropolitan bank branches stood at 87.6% in September 2022.
Topic: Reports and Indices
7. FMCG industry’s three-year sales compound annual growth rate (CAGR) increased to 12.5% as per a BNP Paribas consumer report.
- According to the report, most companies delivered pricing-led growth in the personal care segment.
- Godrej Consumer Products’ (GCP) personal care segment posted 18% y-o-y growth.
- HUL’s beauty and personal care division posted 11% y-o-y growth in Q2 FY23.
- Foods and beverage segment of Dabur posted 30% y-o-y sales growth.
- As per the report, Dabur has continuously outperformed Colgate-Palmolive India in the oral care category.
- According to a report, housing prices in 3 Indian cities (Mumbai, Bengaluru, and New Delhi) increased 3.1% in Q3 2022, compared to Q3 2021.
- As per the report, average annual growth across 45 cities was at 7.5% in Q3 2022.
- The report says that Mumbai climbed up from 39th rank in Q3 2021 to 22nd in Q3 2022.
- Bengaluru moved up from 41st rank in Q3 2021 to 27th in Q3 2022.
- New Delhi moved up from 38th rank in Q3 2021 to 36th in Q3 2022.
- Dubai recorded the fastest rise in prime prices. Wellington was the weakest-performing market.
- More than 45 locations throughout the world are included in Knight Frank's Prime Global Cities Index, which analyses changes in prime home values in local currency.
8. The launch of the 1st pilot for the retail digital Rupee on 1st December 2022 has been announced by RBI.
- The number of banks identified for phase-wise participation in this pilot is eight.
- The first phase will begin with four banks in four cities across the country.
- These four banks are State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank.
- Four more banks will join this pilot subsequently. These banks are Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank.
- Initially, the pilot would cover four cities. These cities are Mumbai, New Delhi, Bengaluru and Bhubaneswar.
- The pilot would later extend to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla.
- It would cover select locations in a closed user group (CUG). It would comprise of participating customers and merchants.
- The digital Rupee would be in the form of a digital token and will have legal validity.
- Users can transact with digital Rupee through a digital wallet made available by the participating banks and stored on mobile phones.
- Transactions can be both Person to Person and Person to Merchant.
- The digital Rupee would have features of physical cash like trust, safety and settlement finality.
- Like cash, it will not earn any interest and can be changed to other forms of money, like deposits with banks.
- The pilot will test the robustness of the complete process of digital rupee creation, distribution and retail usage in real time.
9. India’s first retail municipal bond for solar power projects will be issued by Indore Municipal Corporation.
- Indore Municipal Corporation will raise 2.6 billion rupees ($31.8 million) through a 10-year bond. It will be used to fund solar power projects.
- A.K. Capital Services Ltd. and SBI Capital Markets Ltd. are the lead managers of the offering.
- A 60-megawatt solar plant will be built near Indore at a cost of 3 billion rupees.
- India’s central bank has called on local authorities to consider issuing municipal bonds to meet funding requirements.
- For six years in a row, Indore has won India's cleanest city award.
Topic: Awards and Prizes
10. The pavilion of the Ministry of Health and Family Welfare has won the award for “Outstanding Contribution towards Public Communication and Outreach”.
- The pavilion of the Ministry of Health and Family Welfare won this award at the 41st India International Trade Fair 2022.
- The health pavilion was one of the most popular pavilions at the trade fair.
- It conducted as many as 37 thousand 889 screenings, investigations, counseling, and trainings.
- Nearly 5,530 visitors visited the National Health Authority (NHA) counter where 1,110 visitors got their Ayushman Bharat Health Account cards.