Banking Awareness of 6, 7 and 8 February 2022

Topic: Indian Economy/Financial Market

1. SIDBI survey shows two-thirds of MSMEs were temporarily closed for 3 months or more.

• A survey by the Small Industries Development Bank of India (SIDBI) shows nearly two-thirds of MSMEs were temporarily closed for 3 months or more in FY21.
• According to the survey, more than half of MSMEs saw a decline of over 25% in revenues. SIDBI undertook a survey of 1,029 enterprises.
• The survey found that about 65 % of the MSMEs surveyed availed credit under the Emergency Credit Line Guarantee Scheme (ECLGS) of the government.
• As per the survey, about 36 % of MSMEs surveyed had also availed loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme during FY2021.
• The survey was assigned to SIDBI by MSME Ministry in September as part of its effort to assess economic impact of the pandemic on MSMEs and the effect change in classifications.
• The thresholds for the classification of MSMEs were revised by centre in June 2020 as part of its Covid relief package.

Topic: Corporates/Companies

2. Sonata Software and Microsoft partner for launch of ‘Microsoft Cloud for Retail’.

• Sonata Software and Microsoft have partnered for the launch of ‘Microsoft Cloud for Retail’.
• Sonata Connected Retail solution is available through Microsoft AppSource.
• Sonata Software is a global IT Services and Technology Solutions Company. It offers solutions for retailers worldwide.
• Microsoft is an American multinational technology company. It is headquartered in Redmond, Washington, United States. Its CEO is Satya Nadella.

Topic: Indian Economy/Financial Market 

3. Rs 3.40 lakh crore worth gold bought by Indians in 2021.

• India’s gold demand increased to 797.3 tonnes valued at Rs 340,860 crore during the calendar year 2021.
• This is an 81% increase in value terms as compared to the demand for 446.4 tonnes of gold worth Rs 188,280 crore in the year 2020.
• In the Union Budget for 2021-22, the government had cut customs duty on gold and silver to 7.5% from 12.5%.
• India imported 924.6 tonnes in 2021 valued at Rs 4.28 lakh crore. This is an increase of 165% as compared to 349.5 tonnes in 2020.

Topic: Banking System

4. Foreign branches of Indian banks declined from 137 in 2019-20 to 121 in 2020-21.

• As per RBI, the number of foreign branches of Indian banks declined from 137 in 2019-20 to 121 in 2020-21.
• The number of foreign subsidiaries declined from 381 to 377. Credit extended by foreign branches of Indian banks and deposits of subsidiaries of Indian banks also declined.
• As per RBI, total income of foreign branches of Indian banks decreased from Rs 48,891 crore in FY20 to Rs 29,494 crore in FY21.
• Banks’ fee income also declined during 2020-21. RBI said that branches of Indian banks in United Kingdom generated the highest fee income.

Topic: Banking System

5. Government infused Rs 3.10 lakh crore in Public Sector Banks (PSBs) in last five financial years.

• Government has infused Rs 3.10 lakh crore in Public Sector Banks (PSBs) from 2016-17 to 2020-21.
• Out of Rs 3,10,997 crore, Rs 34,997 crore were infused via budgetary allocation and Rs 2, 76,000 crore via issuance of recapitalisation bonds.
• As on December 31, 2021, 43 large corporate debtors were resolved through the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016.
• Each of these large corporate debtors were having total admitted claims of Rs 2,500 crore and above.
• As on 31.12.2021, CIRP has exceeded the timeline of 180 days in respect of 1,355 corporate debtors.
• As on September 30, 2021, asset reconstruction companies acquired assets valuing Rs 3.74 lakh crore from banks and financial institutions.

Topic: Indian Economy/Financial Market

6. India’s GDP estimated to grow at 9.2% to Rs 147.5 lakh crore in 2021-22.

• Minister of State for Finance Pankaj Chaudhary said that India’s GDP is estimated to grow at 9.2% to Rs 147.5 lakh crore in 2021-22.
• He said that the size of real GDP has been increased from Rs 105.3 lakh crore in 2014-15 to Rs 135.6 lakh core in 2020-21 as per the first advance and first revised estimates of GDP released by National Statistical Office (NSO).
• The Minister said that the government has implemented several reforms to increase investment and GDP growth.
• He said that in Union Budget 2022-23, a 35.4 % increase has been announced in the outlay of capital expenditure.
• He said that number of persons living below the poverty line in India has been estimated at 27 crores in 2011-12 through a Press Note issued on July 22, 2013. Government had not released estimates of poverty after that.

Topic: Banking System

7. Airtel Payments Bank enters into partnership with ICICI Lombard General Insurance.

• Airtel Payments Bank has entered into a partnership with ICICI Lombard General Insurance to offer Cyber Insurance Solutions to its customers.
• Customers of Airtel Payments Bank can purchase the cyber insurance policy through Airtel Thanks app.
• The policy will provide a 90-day discovery period followed by a seven-day reporting period.
• Airtel Payments Bank was granted scheduled bank status by RBI on 5 January 2022.

Topic: Miscellaneous

8. Axis Crisil SDL 2027 Debt Index Fund launched by Axis Mutual Fund.

• Axis Crisil SDL 2027 Debt Index Fund has been launched by Axis Mutual Fund.
• It is a target maturity scheme with benchmark maturity of 31 May 2027.
• It is designed to invest in state development loans (SDLs) maturing between 1 December 2026 and 31 May 2027.
• It will be managed by Crisil Indices Ltd. It will be rebalanced every quarter.
• It comprises SDLs issued by 12 states based on a minimum issue size of ₹1,000 crore. The minimum investment in the scheme is ₹5,000.
• SDLs are state government debt. They are issued to meet budgetary expenses and implement development projects.

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