Banking Awareness of 5, 6 and 7 May 2024

By Priyanka Chaudhary | Last Modified: 07 May 2024 17:46 PM IST
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Topic: RBI

1. According to RBI's data on 'Sectoral Deployment of Bank Credit', credit outstanding to the housing sector increased by about ₹10 lakh crore in the previous two fiscals.

  • Credit outstanding to the housing sector reached a record ₹27.23 lakh crore in March 2024, according to RBI's data on 'Sectoral Deployment of Bank Credit'.
  • As per the RBI data on sectoral deployment of bank credit for March 2024, the credit outstanding to the housing including priority sector housing stood at ₹27,22,720 crore in March 2024.
  • This was an increase from ₹19,88,532 crore in March 2023, and ₹17,26,697 crore in March 2022.
  • As per the data, the credit outstanding towards commercial real estate stood at ₹4,48,145 crore in March 2024. It stood at ₹2,97,231 crore in March 2022.
  • Indian real estate sector supports over 200 ancillary industries which include cement and steel.
  • Indian real estate sector has been seeing a robust demand since 2022.
  • Indian real estate sector is expected to cross USD 1 trillion milestone by 2030.
  • Mortgage penetration level was around 12% as of March 2024. It is steadily increasing in India.

Topic: Banking System

2. The net profit of Indian Bank has increased by over 50% for the March 2024 quarter.

  • S L Jain, the MD and CEO of the Bank, credited the increase to growth in operating profit and increase in both interest and non-interest income.
  • The bank has shown a net profit of ₹2,247 crore for the quarter ended March 31, 2024.
  • Gross NPA was lower at 3.95 per cent in the March 2024. Provisions for NPA were lower at ₹3,653 crore.
  • Retail, Agriculture, and MSME (RAM) loans increased by 15%, 6% and 6%, respectively.
  • Indian Bank is an Indian public sector bank. It was setup in 1907. It is headquartered in Chennai. Shanti Lal Jain is its CEO.

Topic: Reports and Indices

3. In April, the services PMI (Purchasing Managers' Index) dropped to 60.8.

  • In March, it was 61.2. A little decrease in export orders caused it to moderate.
  • S&P Global reported that output and new business growth remained robust and at their best rate in 14 years.
  • According to the PMI survey, outstanding business has grown for 28 consecutive months.
  • With a share of over 53% of gross value added (GVA), services have the highest percentage.
  • The organisation that prepares the HSBC Services PMI is S&P Global.
  • Responses from 400 companies' purchasing executives are used to produce the PMI.
  • Consumer (apart from retail), transportation, technology and communication, banking, insurance, real estate, and business services are among the sectors covered.
  • A figure above 50 indicates expansion, but figure below 50 indicates contraction.

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Topic: Indian Economy/Financial Market

4. India has seen 43% year-on-year increase in successful insolvency resolutions in FY24.

  • Pendency has declined in FY24. The resolution of cases under the Insolvency & Bankruptcy Code (IBC) has increased to 270 in FY24 from 189 cases during the last financial year.
  • The number of outputs exceeded the number of inputs for the first time in the previous year.
  • As a result, there are fewer cases pending nationwide on the National Company Law Tribunal (NCLT) benches.
  • Speaking at the 7th Annual Conference on Insolvency & Bankruptcy Code (IBC), Sudhaker Shukla, a Whole Time Member of the Insolvency and Bankruptcy Board of India (IBBI), stated this.
  • To expedite the resolution process, he said, a pre-pack resolution structure for larges accounts was also being considered.
  • Pre-pack resolution is now limited to MSME cases only.

Topic: RBI

5. RBI grants NBFC licence to neobanking startup Fi.

  • Fi received an NBFC licence from RBI for independent lending.
  • Fi is backed by Peak XV and Temasek. Like Jupiter, Groww and Cred, it offers loans and other financial services.
  • NBFC licences enable fintechs to provide loans through their own lending platforms.
  • They can only serve as intermediaries connecting borrowers with banks and other NBFCs if they don't have this license.
  • Fi was established in 2019 by Narayanan and Sumit Gwalani, two former Google executives.
  • It offers its customers zero-balance savings accounts in addition to other services including payments, investments, and savings.
  • It has attracted approximately $160 million in equity from notable investors, including Temasek, Alpha Wave Global, and Ribbit Capital.
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Topic: MoUs/Agreements

6. CAG of India and the Auditor General of Nepal signed a pact to increase collaboration in auditing.

  • Girish Chandra Murmu, the Comptroller and Auditor General of India (CAG) and Toyam Raya, Auditor General of Nepal signed a MoU.
  • The agreement's main aim is to enhance collaboration and exchange of expertise in the field of auditing.
  • Through this MoU, a platform will be established for capacity development, knowledge exchange, and mutual assistance in conducting audits.
  • This MoU will help in developing and strengthening professional capacity.
  • The partnership between the Supreme Audit Institutions (SAIs) of India and Nepal will enhance collaboration in training programs.

Topic: Miscellaneous

7. There will be a USD 5 billion replenishment to the Asian Development Fund (ADF).

  • Donors and the Asian Development Bank (ADB) decided to replenish the ADF and Technical Assistance Special Fund (TASF) during the 57th Annual Meeting of the ADB.
  • The majority of ADB's funding for activities in its most underdeveloped and vulnerable member nations comes from the ADF.
  • Replenishment is done to the ADF every four years. ADF 14, the fund's thirteenth replenishment since its founding, will support grant activities during 2025–2028.
  • About 22% more is being replenished now than the USD 4.1 billion that is available in ADF 13.
  • Grants from the TASF 8 will be used to support project planning, capacity building, and the provision of technical or policy advice.
  • ADF was founded in 1974. It was founded with the goal of improving living conditions and ending poverty in the most vulnerable and impoverished nations in Asia and the Pacific.

Topic: Appointments

8. Retired Justice Sanjaya Kumar Mishra is appointed as president of the Goods & Services Tax Appellate Tribunal (GSTAT).

  • The tribunal aims to help businesses in resolving various disputes efficiently.
  • The Appointment Committee of the Cabinet has approved the appointment based on the recommendation of the SCSC (Search-cum-Selection Committee).
  • He has been appointed for four years with a salary of ₹2.50 lakh per month.
  • He will remain in office for four years or till attaining the age of 70 years, whichever is earlier.
  • In 2023, the Central government issued a notification to set up 31 GSTAT benches with one Principal Bench in Delhi.
  • GST Tribunals handle disputes related to GST, providing a timely and efficient resolution mechanism.
  • It plays a crucial role in ensuring fairness, accountability, and the rule of law in tax administration.
  • Union Finance Minister Nirmala Sitharaman administered Oath of Office to Justice (Retd.) Sanjaya Kumar Mishra as the 1st President of GST Appellate Tribunal.
  • GSTAT’s first President, Justice (Retd.) Mishra was a former Chief Justice of the Jharkhand High Court.
  • He was selected by a Search-cum-Selection Committee, which was headed by the Hon’ble Chief Justice of India.

Topic: Corporates/Companies

9. RBI approved setting up REC Limited subsidiary in Gift City, Gujarat.

  • The Reserve Bank of India (RBI) has provided a ‘No Objection Certificate' (NOC) to REC Ltd for setting up a subsidiary in Gujarat International Finance Tech-City (GIFT) city.
  • REC Limited subsidiary will be involved in various financial activities, including lending, investment, and other financial services.
  • The GIFT City will provide a conducive environment for international lending activities along with world-class infrastructure.
  • REC Limited:
    • It was established in 1969 and focuses on power sector financing and development across India.
    • It provides financial assistance to state electricity boards, state governments, and central and state power utilities.
    • It is engaged in projects related to generation, transmission, distribution, and renewable energy.

Topic: Appointments

10. Appointment of Sanjeev Nautiyal as MD & CEO of Ujjivan SFB has been approved by the RBI.

  • Sanjeev Nautiyal will be the new MD & CEO of Ujjivan SFB from July 1, 2024.
  • He has been appointed for a tenure of three years.
  • Currently, he is an independent director of Life Insurance Corporation of India (LIC) and acts as an advisor in various organisations.
  • He will take the place of Ittira Davis, who took charge in January 2022.
  • Sanjeev Nautiyal had retired as a deputy managing director of SBI.
  • He will be the third MD & CEO of the Ujjivan SFB bank in five years.
  • Ujjivan Small Finance Bank:
    • It was set up by Ujjivan Financial Services Limited (UFSL). It started banking operations on February 1, 2017.
    • It is a Scheduled Small Finance Bank. It is headquartered in Bengaluru.


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