Banking Awareness of 6, 7 and 8 November 2022

Topic: Banking System

1. SBI has become India’s most profitable corporate with ₹14,752 crore of consolidated net income in the Q2 of FY23.

• Its consolidated net income is better than Reliance Industries, which is having net income of ₹13,656 crore.
• However, Reliance continues to lead with total revenue of ₹253,497 crore as against SBI's ₹1,14,782 crore for Q2 of FY23.
• Reliance continues to be the most profitable firm on a first-half basis and on an income basis too.
• The asset quality of SBI improved with the gross non-performing assets declining from 4.90% a year-ago to 3.52%. Net NPAs nearly halved from 1.52% a year ago to 0.80%.
• SBI also reported highest ever quarterly net profit at ₹13,265 crore in Q2. It reported 74% year-on-year increase in net profit. 
• For the first time in many quarters, the bank’s corporate advances grew faster than its retail loans.
• Infrastructure sector, oil and marketing companies and services sector mainly NBFCs were the source of the demand for corporate loans.
• As per RBI mandate, all banks shall invest 19% of their total deposits in central government securities.

Topic: Taxation

2. Tamil Nadu has replaced Karnataka to become the third largest state in State’s Own Tax Revenue (SOTR) collections between April-September of the current fiscal.

• Maharashtra and Uttar Pradesh occupy the first two positions.
• As per provisional figures from the Comptroller and Auditor General of India, Tamil Nadu has raised ₹68,638 crore in SOTR collections between April-September.
• Karnataka raised ₹66,158 crore in SOTR collections. Maharashtra and Uttar Pradesh raised ₹1,15,211 crore and ₹1,02,687 crore respectively in SOTR in the April-September of the current fiscal.
• Maharashtra registered 42% growth in own tax revenue collections (year-on-year) in the first half of the year.
• This was followed by Kerala (41%), Tamil Nadu (36%), Gujarat (31%) and Uttar Pradesh (29%).
• Andhra Pradesh recorded the lowest growth in own tax collections among southern States during the April-September period.
• About State’s Own Tax Revenue (SOTR):
  • SOTR mainly includes revenues earned through State GST, Stamp & registration fees, Sales Tax, State Excise duty, and Land revenue.
  • Strong SOTR growth is an indicator of healthy state finances. Higher SOTR means lesser dependence on Centre for devolution and grants.

Topic: Reports and Indices

3. India Enterprise & Entrepreneurship report 2022 (E&E Report 2022) will be released on November 9.

• Institute of Small Enterprises and Development will release E&E Report 2022.
• November 9 is recognized as the National Entrepreneurship Day in India.
• The Ministry of Skill Development and Entrepreneurship was notified on 9th November, 2014.
• The relevant departments of all State governments and the Centre were consulted throughout the preparation of E&E Report 2022.

Topic: Indian Economy/Financial Market

4. Data compiled by Ministry of Commerce show that there were no exports of iron ore in September.

• In October, iron ore exports were barely 0.13 million tonnes (mt).
• September and October months of FY23 were the worst two months for Indian iron ore traders during the past four years between FY20 and FY23.
• Export for April to October period of FY23 stood at 7.1 mt, down 64% YoY.
• There were no export orders in September with the closing of China market during Covid.
• China is the largest buyer of iron ore (both low grade and high grade) from India.
• High export duty is also the reason for decline in exports. Low grade offerings, which is over 90 percent of iron ore export is the worst hit.
• In May, Central government raised the export tax on low-grade iron ore lumps and fines, which have iron content below 58% to 50% from zero.
• The duty on pellets was increased from zero percent to 45%.

Topic: Indian Economy/Financial Market

5. Revenue deficit grant of ₹7,183 crore to 14 states has been released by Finance Ministry.

• This is the 8th monthly instalment of post devolution revenue deficit (PDRD) grant.
• Total revenue deficit grant released till now in current fiscal has increased up to ₹57,467 crore.
• Fifteenth Finance Commission had recommended a total post devolution revenue deficit (PDRD) grant of ₹86,201 crore to 14 States for FY23.
• Department of Expenditure in Finance Ministry releases recommended grant in 12 equated monthly instalments.
• The PDRD grants are provided to the States under Article 275 of the Constitution. Article 275 provides for grants from the Union to certain States.
• Fifteenth Finance Commission had recommended PDRD grant during 2022-23 to the states given in the following table.

Topic: Reports and Indices

6. Elimination of tariffs and reduction in NTM on environmental goods could contribute to reducing carbon emissions said the ‘World Trade Report 2022: Climate Change and International Trade’.

• As per the report, elimination of tariffs and reduction in NTMs (non-tariff measures) on environmental goods will also be contributing to an increase in exports and GDP in all regions.
• The report notes that elimination of tariffs and reduction in NTMs on EREG (energy related environment goods) and EPP (environmentally preferred products) would raise global exports of the goods in 2030 by 5% and 14% above baseline, respectively.
• India and other developing countries have not been in favour of elimination of tariffs on environmental goods.
• The reports said WTO also offers trade-related technical assistance and capacity building to developing countries and LDCs. This can help to build climate resilient trade capacity.
• Aid for Trade, the Enhanced Integrated Framework (EIF), and the Standards and Trade Development Facility (STDF) are current initiatives.

Topic: Miscellaneous

7. Supreme Court has ruled Employees Pension (Amendment) Scheme of 2014 is legal and valid.

• It has ruled ₹15,000 salary limit is no longer legal. It extended deadline to join EPF pension scheme.
• It held the requirement of 1.16% additional contribution of their salary as invalid.
• The three-judge Bench led by Chief Justice U.U. Lalit gave the judgment while hearing an appeal filed by Employees Provident Fund Organisation (EPFO).
• EPFO appeal challenged decisions of the Kerala, Rajasthan and Delhi High Courts quashing the 2014 amendments on “determination of pensionable salary” under the Employees Pension Scheme (EPS) of 1995.
• In the EPS-1995, the maximum pensionable salary cap was ₹6,500. The 2014 amendments to the EPS had raised the cap from ₹6,500 to ₹15,000.
• The 2014 amendments to the EPS inserted a new paragraph 11 (4).
• As a result of amendment, members whose salaries exceeded the ₹15,000 ceiling had to contribute at the rate of 1.16 percent of the salary.

Topic: Indian Economy/Financial Market

8. Russia became largest oil supplier to India in October 2022.

• Russia now makes up for 22% of India’s total crude oil imports. This is more than Iraq's 20.5% and Saudi Arabia's 16%.
• In June, Iraq was India's top supplier with 1.04 million barrels per day (bpd) of oil. In that month, Russia became India's second biggest supplier.
• Russia supplied 9,35,556 barrels per day (bpd) of crude oil to India in October.
• For the April-Sept period of this fiscal year (FY23), Russia became the biggest exporter of pig iron to India.
• During this period, nearly 31,700 tonnes of pig iron was imported to India, of which nearly 84% was from Russia.
• Pig iron is crude iron and is the direct product of the blast furnace. It is refined to produce steel, wrought iron, or ingot iron. Pig Iron is the main steel making raw material.
• In 2020, the top exporters of Pig Iron were Russia, Brazil and Ukraine while the top importers of Pig Iron were China, United States and Turkey.

Topic: Appointments

9. KV Kamath has been appointed by Reliance Industries Limited (RIL) as an independent director on its board for five years.

• He has also been appointed non-executive chairman of Reliance Strategic Investments Limited.
• Reliance Strategic Investments Limited (RSIL) is a wholly-owned subsidiary of Reliance Industries Ltd. It is to be renamed as Jio Financial Services.
• Kamath is a veteran banker. He is presently the chairman of the National Bank for Financing Infrastructure and Development (NaBFID).
• Subhrakant Panda has been named by Federation of Indian Chambers of Commerce and Industry (FICCI) as its next president.
• He currently serves as the senior vice-president of FICCI. He is the Managing Director of Indian Metals & Ferro Alloys Ltd (IMFA).
• Panda would succeed Sanjiv Mehta as president of FICCI at the conclusion of its 95th AGM to be held on December 16-17.
• Panda is the first industrialist from Odisha to take up a leadership role in FICCI. 

Topic: Banking System

10. IPPB launched ‘Niveshak Didi’ initiative to promote Financial Literacy “By the women, for the women”.

• India Post Payments Bank (IPPB), in collaboration with Investor Education and Protection Fund Authority (IEPFA) under the aegis of the Ministry of Corporate Affairs (MCA), launched this initiative to take the Financial Literacy drive ahead.
• The initiative aims to promote Financial Literacy ‘By the women, for the women’, in Srinagar, J&K.
• On 2 November, IPPB organized India's first floating financial literacy camp to enhance financial literacy in Srinagar (J&K).
• The camp was organized among the local residents around the world-famous Dal Lake in Srinagar, Jammu and Kashmir.
• IPPB has taken this initiative to increase last-mile reach and bridge the financial inclusion gap with the help of the world's largest postal network.
• India Post Payments Bank (IPPB):
  • IPPB has been set up under the Department of Posts under the Ministry of Communications, which is 100% owned by the Government of India.
  • IPPB was launched by PM Narendra Modi on September 1, 2018.
  • The bank has been established with a vision to provide very easy, affordable, and reliable banking service to the common man of India.

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