Banking, Financial and Economic Awareness of 30 November 2019

1. Harun Rashid Khan appointed as the first chairman of the steering committee of CRL in micro-credit industry

• He was the deputy governor of the Reserve Bank of India (RBI) between 2011 and 2016.
• Harsh Shrivastava of MFIN, P Satish of Sa-Dhan, Srinivas Bonam of IndusInd Bank and Sonia Krishnankutty of L&T Finance are some members of this committee.
• MFIN, Sa-Dhan and FIDC:
  • Micro-finance Institutions Network (MFIN) is a self-regulatory organization of the country’s main microfinance institutions.
  • Sa-Dhan is an RBI-recognised association of MFIs (Microfinance Institutions).
  • Finance Industry Development Council (FIDC) is an association of Non-Banking Financial Companies (NBFCs).
• Code for Responsible Lending (CRL) in micro-credit industry:
  • It is a self-regulatory initiative that aims at protecting customers by making banks, NBFC-MFIs and NBFCs adhere to certain standards.
  • It was introduced in September by MFIN, Sa-Dhan and FIDC.

2. Bhuwan Chandra to be new CFO of Indian Overseas Bank (IOB)

• He will be the Chief Financial Officer (CFO) of IOB from December 1.
• Presently, he is the General Manager of IOB.
• He was the Chief Representative of IOB for Gulf Cooperation Council (GCC) countries from 2013 to 2016.
• Radha Venkatakrishnan is the current CFO of IOB.
• Indian Overseas Bank (IOB):
  • Headquarters: Chennai
  • CEO: Shri Karnam Sekar
  • Tag line/ Slogan: Good People to Grow With

3. INR 3,200 crore loan for Patanjali Ayurved

• State Bank of India led consortium of banks will provide ₹3,200-cr loan to Patanjali Ayurved for acquiring debt-laden Ruchi Soya.
• Patanjali Ayurved's resolution plan for acquisition of Ruchi Soya was approved by National Company Law Tribunal (NCLT) in September 2019
• In December 2017, National Company Law Tribunal ordered initiation of Corporate Insolvency Resolution Process (CIRP) against Ruchi Soya under Insolvency and Bankruptcy Code (IBC), 2016.

• National Company Law Tribunal (NCLT):
  • NCLT was formed under the provisions of Companies Act, 2013.
  • NCLT adjudicates cases filed under IBC, 2016.
  • At present, NCLT is having 15 benches, 16 judicial members and 9 technical members.
  • Mahesh Mittal Kumar is its current chairman.

4. 4.5% GDP growth rate during July-September quarter lowest in six years

• The GDP growth rate for the July-September quarter is 4.5%, while during the July-September quarter of 2018-19, it was 7 %.
• During the January-March quarter of 2012-13, it was 4.3 %.
• According to experts, the decline in consumption expenditure and exports are the reasons for the slowdown in growth of GDP.
• Gross Domestic Product (GDP):
  • GDP is the total value of final goods and services produced within a country over a period of one year.
  • Currently, the base year for calculation of GDP is 2011-12.

5. Dewan Housing Finance Corporation Ltd. (DHFL) referred to NCLT for insolvency resolution

• DHFL is the first financial services provider, which has been referred by RBI to the National Company Law Tribunal (NCLT).
• DHFL will be under interim moratorium till the admission or rejection of the application by NCLT.
• Bankruptcy proceedings against DHFL for recovery of Rs 83,873 crore debt were started on November 20.
• RBI has earlier appointed R Subramaniakumar as an administrator to DHFL.
• Dewan Housing Finance Corporation Ltd. (DHFL):
  • CEO: Kapil Wadhawan
  • Headquarters: Mumbai