SBI PO 2014

Banking and Financial News Capsule

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BI in News
The Reserve Bank of India permitted banks to give exporters, with a minimum of three years
satisfactory track record, long-term export advance up to a maximum period of 1 years! The
exporters can receive export advance from banks "authorised to deal in foreign exchange or
#uthorised $ealer Bank% only for execution of long-term supply contracts for export of goods,
sub&ect to conditions!
The Reserve Bank of India "RBI% tightened merger rules for non-bank finance companies
"'B()s% to ensure fit and proper character of the management of 'B()!
RBI Reserve Bank of India "RBI% directed all commercial banks that all new #T*s to be installed
from +uly 1, ,1- onwards would provide audible instructions and Braille keypads to
customers!
Bharatiya *ahila Bank "B*B%, the first all-women bank of India, was included in the second
schedule of the Reserve Bank of India "RBI% #ct, 1./-! The inclusion of the B*B in the second
schedule was announced by RBI in a notification! 0ith this inclusion, total scheduled banks in
India increases to .!
RBI, has decided that Indian companies will not be permitted to raise 1xternal )ommercial
Borrowings from overseas branches or subsidiaries of Indian banks for refinance or repayment
of the Rupee loans raised from domestic banking system!
Raghuram Ra&an, the 2overnor of the Reserve Bank of India "RBI% announced that plastic
currency notes will be launched in ,13 after field trials!
RBI panel headed by ex-)hairman of #xis Bank, 4! +! 'ayak recommend for diluting govt stake in
public sector banks to below 3 5! The government should cut its holding in public sector
banks to under 3 per cent, a Reserve Bank of India "RBI% panel report on Tuesday said,
criticising the way in which the lenders are now being governed!
Reserve Bank of India granted in-principle banking licences to infrastructure financing firm
I$() and micro-finance institution Bandhan from among ,3 applicants! The in-principle
approval will be valid for a period of 16 months during which the applicants have to comply
with the re7uirements under the guidelines and fulfil the other conditions as may be stipulated
by the RBI!
1! )handra 8hekhar 2hosh9 )*$ of Bandhan financial services
,! $r! Ra&iv B! :all9 )hairman of I$() ; Infrastructure (inance )ompany!
Reserve Bank of India "RBI% issued the guidelines to allow the minors of age above 1 years to
independently open and operate savings bank accounts and use other facilities like #T* and
che7ue books!
RBI extended the timeline for full implementation of Basel III norms /1 *arch ,1. instead of
/1 *arch ,16!
RBI in consultation with <nion 2overnment on 1 #pril ,1- capped the 0ays and *eans
#dvances "0*#% limits for the first half of the new financial year ,1--13 "#pril ,1--8ep
,1-% at /3 crore rupees!
'ote9 The interest rate on 0*#=overdraft will be based on9 a% 0*#9 Repo Rate! b%
>verdraft9 Two percent above the Repo Rate
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SBI PO 2014
Banking and Financial News Capsule
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RBI extends date of exchanging pre-,3 notes to +an 1, ,13! The RBI has further clarified that
the public can continue to freely use these notes for any transaction! RBI has said that people
can unhesitatingly receive these notes in payment, as all such notes continue to remain legal
tender!
Reserve Bank of India "RBI% hiked the trade related remittance limit from , lakh rupees to 3
lakh rupees per transaction with immediate effect! It also increased the number of transaction
handled by exchange houses!
?) )hakrabarty, $eputy 2overnor, Reserve Bank of India, has 7uit three months ahead of
completion of his term!
RBI pegged ,1--13 2$4 growth at a central estimate of 3!3 percent! 1conomic growth for
,1--13 expected at 3!3 pc! )#$ expected to come down to , pc of 2$4 in ,1--13! Retail
inflation expected to be under @ pc in ,1-!
RBI panel headed by RBI $eputy 2overnor #nand 8inha has recommended bringing a
benchmark floating interest rate, especially for home loans! 4anel also suggested Indian Banks
Base Rate "IBBR%!
The deadline for switching to new format bank che7ues under the )he7ue Truncation 8ystem
")T8% ended on / #pril ,1-!
RBI scraps ,@5 cap on interest rate for *(Is9 "RBI% removed ,@ per cent cap on the interest
rate that can be charged by a microfinance company to its borrowers! *(I is allowed to charge
interest rate e7ual to ,!A3 times the average of the base rates of the top five commercial banks!
RBI permits - non-bank entities to set up white label #T*s9 The Reserve Bank has issued
Bcertificate of authorisationC to four non-bank entities
"1% Tata )ommunications 4ayment 8olutions
",% *uthoot (inance,
"/% 4riDm 4ayment 8ervices and
"-% Eakrangee :td! , to set up 0hite :abel #T*s "0:#s% in the country!
'ote9 *ost of the #T*s belong to banks, but the cash dispensing machines which are
owned and operated by non-banking companies are called 0hite :abel #T*s!
RBI permits 8rei to roll out white label #T*s9 8rei Infrastructure (inance is planning to start
roll-out of its while label #T*s "0:#s% between +uly and 8eptember starting with a pilot of ,
Tier-III towns in <ttar 4radesh and Bihar!
The expert committee headed by <r&it R! 4atel, $eputy 2overnor of the Reserve Bank of India
examine the current monetary policy framework of the Reserve Bank of India "RBI% has
suggested that the apex bank should adopt the new )4I "consumer price index% as the measure
of the nominal anchor for policy communication! The nominal anchor or the target for inflation
should be set at - per cent with a band of F=- , per cent around it!
1x-)hairman of #xis Bank, 4! +! 'ayak is the head of the expert panel to review bank boardsC
governance! The panel will review the RBIGs regulatory guidelines on ownership of banks and
representation in their boards, among other things!
The Reserve Bank of India has raised the (oreign Institutional Investors, (IIs investment limit
in the 4ower 2rid )orporation to / per cent of its paid up capital, under the 4ortfolio
Investment 8cheme!
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SBI PO 2014
Banking and Financial News Capsule
www.bankingawareness.com
The Reserve Bank of India "RBI% has doubled the sub-limit for foreign investment in
government securities, to <8$ 1 billion by long-term investors! RBIGs move is aimed to attract
more foreign funds! Investors like sovereign wealth funds "80(s%, multilateral agencies,
insurance funds, pension funds and foreign central banks are considered as long term investors!
RBI relaxes gold loan norms9 The Reserve Bank of India has allowed 'on-Banking (inancial
)ompanies, 'B()s to lend up to A3 per cent of the value of gold! It was @ per cent earlier!
RBI panel "headed by banker 'achiket *or% has suggested setting up of specialised banks to
cater to low income households to ensure that all citiDens have bank accounts by ,1@!
The RBI-appointed committee on financial inclusion has recommended that the central bank
should set up specialised banks called 4ayments Bank to provide payment services and deposit
products to small businesses and low-income households!
The committee, headed by 'achiket *or, said that since the new bank will be dealing with poor
customers, such a bank must be allowed to accept a maximum deposit of not more than Rs
3,!
The Reserve Bank of India "RBI% had set up a panel under executive director $eepak *ohanty
to review the current system of data collection, dissemination and data management processes
in the central bank and improve the existing mechanism!
RBI tightens norms for credit card holders9 RBI advised banks to treat a credit card account as a
non-performing asset if the customer fails to pay the minimum due amount within a stipulated
.-day period!
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SBI PO 2014
Banking and Financial News Capsule
www.bankingawareness.com
SBI in News
8BI won the Bes! Bank award in !"e #$Si$%ON&' F( PO)) OF PO))S 2014* for best overall
performance as domestic provider of (orex services over the last 1 years!
8tate Bank of India chairperson #rundhati Bhattacharya said it would be endeavour of the
group to spend , 5 of the annual net profit on )8R activities in each financial year!
SBI $nnual epor!
Total business of the bank has increased by Rs /,36,,/- crores from Rs ,,,61,,.A crores
in (H1/ to Rs ,@,/.,3/1 crores in (H1-!
>perating 4rofit increased to Rs /,,1. cr from Rs /1,6, crores in (H1/, an increase of
/!/15!
'et Interest Income increased to Rs -.,,6, crores from Rs --,/,. crores in (H1/ an
increase of 11!1A5!
'on Interest Income increased to Rs 16,33/ crores from Rs 1@,/A crores in (H1/, an
increase of 13!@.5!
'et 4rofit declined to Rs 1,6.1 crores from Rs 1-,13 crores in (H1/!
)apital #de7uacy Ratio improved to 1,!--5 with Tier I at .!A,5 and Tier II at ,!A,5!
2ross '4# F Restructured 8tandard #ssets Ratio stands at 6!-15!
Total number of branches have increased to 13,6@. with 1,3/ branches opened during
the year!
Total number of #T*s for 8BI 2roup stands at 31,-.1 including -/,313 #T*s of 8BI
alone!
Total number of customers stands at ,1!., crores!
S!a!e Bank o+ India c"airperson $rund"a!i B"a!!ac"ar,a and ICICI Bank managing
direc!or C"anda -oc""ar are among the five women from India featured in Forbes# 100 mos!
power+ul women in !"e world.
Rank 1 - 2erman )hancellor #ngela *erkel!
Rank /@ - #rundhati Bhattacharya
Rank -/ - )handa ?ochhar
Rank ., - Biocon founder ?iran *aDumdar!
S!a!e Bank o+ India .SBI/0 on %a, 210 2014 o2er!ook !"e pri2a!e sec!or lender 34FC Bank
!o regain !"e !op spo! in !erms o+ m5cap0 a+!er !railing 34FC Bank +or more !"an a ,ear.
S!a!e Bank o+ India .SBI/, which has an exposure of Rs 1,@ crore to grounded airline
?ingfisher, on (riday said it is exploring ways to declare the carrierCs promoter 6i7a, %all,a as
a Bwil+ul de+aul!er*!
8BI $onates Rs!, )rore to Ramakrishna 8arada *ission!
The Reserve Bank of India "RBI% has approved the 8tate Bank of IndiaCs .SBI/ proposal !o issue
s"ares !o i!s 2.1 lak" emplo,ees !o raise o2er 800 crore, a move that is likely to prompt
other public sector banks "48B% to follow suit!
SBI launc"es 1 4igi!al banking +acili!ies +or i!s cus!omers9
1! Tab Banking for 8aving #=) - >pening 8avings a=c at )ustomerCs door step using tablet
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SBI PO 2014
Banking and Financial News Capsule
www.bankingawareness.com
4) provided to the BankCs 8ales 8taff "who visit the )ustomerCs home%!
,! T#B Banking for Iome :oan - In-principle approval for the home loan at customerCs door
step using tablet 4) provided to the BankCs Iome :oan 8ales Team which will capture on
the tablet ?H) details and details!
/! e-?H) - 2enerates e-?H) "?now Hour )ustomer% identity document!
To improve itGs social presence 8tate Bank of India launched (acebook page, Twitter handle and
HouTube channel!
8tate Bank of India "8BI% has announced plans to set up a holding company for raising funds! It
"setting up a holding company including all subsidiaries% is one of the possibilities "for raising
capital%!!currently, there is no clear view on this,J 8BI chairperson #rundhati Bhattacharya said
Following !"e eser2e Bank o+ India .BI/s mo2e !o allow minors aged more !"an 10 !o
open and opera!e sa2ings bank accoun!s independen!l,0!"e S!a!e Bank o+ India .SBI/ on
said i! would s!ar! a special sc"eme +or c"ildren soon.
:4 Indian cos in Forbes lis! o+ ;lobal 2000 +irms! Reliance Industries, ranked 1/3, with a
market value of K3!. billion "Rs /!3 lakh crore% is followed by S!a!e Bank o+ India0 w"ic" is
ranked 1:: with a market value of K,/!@ billion "Rs 1!-1 lakh crore%!
8tate Bank of India was awarded 8pecial Recognition #ward in 1mployer Branding under the
Banking 8ector category in India by Randstad, a global human resource consultant! SBI was
awarded !"e bes! &mplo,er Brand in !"e Banking Sec!or!
S!a!e Bank o+ India "as signed up eliance %one, In+ras!ruc!ure .%I)/0 an $nil $mbani
;roup compan,0 in a <business corresponden!* deal !o source a range o+ banking ser2ices.
="e S!a!e Bank o+ India .SBI/ launc"es own pa,men! aggrega!or ser2ice #SBI ePa,# and
plans to target government agencies and municipal corporations for its newly launched
payment gateway, which, it says, will bring down transaction costs! SBI ePa, provides
electronic connectivity with various banks and financial institutions, on the one hand, and
merchants, on the other!
News ela!ed !o Banking > Finance
The 4resident of India 8hri 4ranab *ukher&ee dedicated indigenous card payment network
GRu4ayG - developed by 'ational 4ayments )orporation of India - to the 'ation! Ru4ay cards are
accepted at all #T*s, more than . per cent of B4oint of 8aleC "4>8% terminals and more than
1, e-commerce merchants across the country!
India became third-largest economy in ,11 from 1th in ,39 0orld Bank!
'ote9 India emerged as the worldCs third-largest economy in ,11 from being the 1th largest
in ,3, moving ahead of +apan, while the <8 remained the largest economy closely followed by
)hina, latest figures have revealed!
2ovt accepts 8ahoo panel report on review of depository receipts scheme! The key
recommendations of the committee include allowing issuance of depository receipts against
any underlying securities L e7uity or debt, by any issuer - listed or unlisted!
'ote9 $epository receipts are receipts denominated in foreign currency created by a depository
in the country of listing! There are two popular types of depository receipts L global
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SBI PO 2014
Banking and Financial News Capsule
www.bankingawareness.com
depository receipts and #merican depository receipts!
I'2 Eysya :ife Insurance )ompany :td has become 1xide :ife Insurance )ompany! The
insurance company will continue to honour its commitments and obligations under the
insurance policies issued to customers in the name of I'2 Eysya Insurance )ompany :td!
8witDerland and 'orway are the worldGs most expensive economies, followed by Bermuda,
#ustralia and $enmark, according to a new ranking by the 0orld Bank
The Bombay 8tock 1xchange "B81% launched an Institutional Trading 4latform "IT4% to help
8mall and *edium 1nterprises "8*1s% and start-up companies to list on the bourses without
an Initial 4ublic >ffer "I4>%!
Basel )ommittee issued (inal standards to curb exposures of banks to customers! The Basel
)ommittee on Banking 8upervision on 13 #pril ,1- issued (inal standards for measuring and
controlling large exposures of banks to customers! These standards will take effect from 1
+anuary ,1.!
Bank of India "B>I% has become the first Indian bank to extend a bridge loan of K, million to
#ir India to finance the purchase of two Boeing A6A $reamliner aircraft!
India leads global remittances with <8$ A bn in ,1/! IndiaGs neighbour )hina follows second
with <8$ @ billion, said the 0orld Bank report
0orld Trade >rganisation "0T>% pro&ected that the world trade will grow by -!A percent in
,1-!
The 0orld Bank give loan 4akistan 1, billion dollars over the next five years to help lift its
economy,
Matar based $oha Bank announced itCs (irst branch in *umbai! The branch in *umbai will be
opened as a full-fledged bank in *ay ,1-!
'ote9 Bank of Bahrain N ?uwait, #bu $habi Bank are the two other banks from #rab countries
to have operations in India before $oha bank!
Bank of India "B>I% launched Instant *oney Transfer "I*T% scheme in *umbai!
'ote9 I*T scheme allows customers to withdraw cash without using either debt card or credit
card at BoIGs I*T-enabled #T*s! This is the first-of-its-kind initiative launched by a public
sector bank!
?otak *ahindra launches accounts integrated with (acebook, Twitter!
I)I)I 4rudential *utual (und has bagged *orningstar IndiaCs best fund house award in the
debt, e7uity and multi-asset category!
#$B pegs India 2$4 growth rate for ,1--13 at 3!3 pc
Inflation based on 0holesale 4rice Index "04I% reached a /-month high of 3!A5 in *arch ,1-!
0holesale Inflation falls to .-month low of -!@6 per cent in (eb
?otak *ahindra Bank announced the launch of +ifi, a first-of-its-kind fully integrated social
bank account that transcends normal digital banking by seamlessly incorporating social
networking platforms like Twitter and (acebook with mainstream banking!
1xport-Import Bank of India extended a :ine of )redit of K6.!. million to the 2overnment of
Republic of )ongo, for development of transportation system in the Republic of )ongo!
)entral Bank of India has sold its entire stake in credit information provider )IBI: to
Transunion International Inc! )entral Bank had a 3 per cent stake in )IBI: while Transunion is
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SBI PO 2014
Banking and Financial News Capsule
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the ma&ority shareholder in )IBI: at ,A!3 per cent!
)anara Bank names cricketer 8hikhar $hawan as its brand ambassador!
Iousing $evelopment (inance )orporation "I$()% Bank set 0orld record for Blood collection
in a single day! The blood donation camp organised by I$() Bank on @ $ecember ,1/ was
recorded in the 2uinness Book of Records!
The 0orld Bank has said it would provide up to K/ billion in aid for <kraine in ,1- to help the
country deliver much-needed economic reforms!
*ax :ife Insurance has tied up with Toyota (inancial 8ervices India :td to provide insurance
cover to car loan customers!
Bihar emerges as fastest growing state "13!3 per cent% in ,1,-1/9 )8> Report!
'ote9 #ccording to the )8> data, 2u&arat ranked @th with growth rate at A!.@ per cent, behind
Bihar and *adhya 4radesh with .!6. per cent, 2oa 6!-A per cent, ?erala 6!,- per cent and
>disha 6!. per cent! The all-India growth rate in ,1,-1/ was -!-A per cent!
Indian Bank has bagged national award for excellence in lending to micro enterprises for ,1,-
,1/, for the consecutive second year!
)orporation Bank has bagged the awards for lending to *81 "micro and small enterprises% and
to micro enterprises from the <nion *inistry of *icro, 8mall and *edium 1nterprises "*8*1%
for ,1,-1/!
The Bank of Bahrain and ?uwait, BB?, plans to expand its operations in India by opening its
fourth branch in the country in 'ew $elhi!
Interest rate on 4ost >ffice ($s increased by up to !, per cent from 6!, percent to 6!- percent!
IndiaCs 1st post office savings bank #T* inaugurated in Thyagaraya 'agar, )hennai!
81BI approved the new )orporate 2overnance norms! The new corporate governance norms
would become applicable for all listed companies with effect from 1 >ctober ,1-!
0holesale inflation eased to a seven-month low of 3!3 per cent in +anuary, on decline in the
rate of price rise in food articles, mainly vegetables!
Retirement fund body 14(> decided to increase the rate of interest on 4rovident (und deposits
to 6!A3 percent from 6!3 percent!
The 'ational Bank for #griculture and Rural $evelopment has sanctioned Rs /-6!@/ crore to
?arnataka under Rural Infrastructure $evelopment (und "RI$(%!
#sian $evelopment Bank "#$B% has provided K- million first tranche line of credit to India
Infrastructure (inance )ompany :td "II():% to help accelerate infrastructure growth through
increased private sector investment!
#sian $evelopment Bank will provide <8$ ,A3 million loan for improving rural road
connectivity in five states including #ssam, )hhattisgarh, *adhya 4radesh, >disha and 0est
Bengal in the country!
Bharatiya *ahila Bank "B*B% and 8BI )ards have &oined hands for roll-out of credit cards to
customers of IndiaCs first women focused commercial bank
Bharatiya *ahila Bank "B*B%, the first all-women bank, tied with 'ew India #ssurance to
launch health insurance products for women account holders of the bank!
The Bank of +apan "B>+% and RBI concluded an agreement that expands the maximum amount
of the bilateral swap arrangement "B8#% between the two countries to <8$ 3 billion!
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SBI PO 2014
Banking and Financial News Capsule
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'ote9 B>+ 2overnor is Iaruhiko ?uroda and RBI 2overnor Raghuram Ra&an
'ational Bank for #griculture and Rural $evelopment "'#B#R$% has reduced refinance rate for
banks and other lending agencies by !, per cent to promote rural credit and rural
infrastructure!
'ote9 The revised rate of interest on refinance for a period of five years for commercial, state
cooperative, regional rural and primary urban cooperative banks will be .!A per cent, down
from .!. per cent!
81BI grants new status to three clearing corporations to 'ational 8ecurities )learing
)orporation, Indian )learing )orporation and *)O-8O )learing )orporation!
I*( pro&ected 3!- percent economic growth for India in ,1--13
0orld Bank pro&ected economic growth rate of 3!A5 for India in ,1--13 fiscal
0orld Bank will provide K,3 million loan to construct disaster resilient houses and roads in
disaster-hit <ttarakhand!
0orld Bank will provide K3 million loan for water supply and sanitation pro&ects in the rural
areas of #ssam, Bihar, +harkhand and <ttar 4radesh!
0orld Bank will provide 3 million dollar assistance to #fghanistan to support the
governmentGs efforts to improve access to credit for micro, small and medium enterprises!
:I) has re-launched its P+eevan #nandJ plan, a participating non-linked plan which offers an
attractive combination of protection and savings!
2ovt launches inflation indexed saving bonds which offer protection to retail investors from
price rise! The minimum limit for investment is Rs 3, and the maximum is Rs 3 lakh per
applicant per annum! Interest rate would be linked to )onsumer 4rice Index ")4I%!
The worldCs first Bitcoin storage service that insures deposits of the digital currency against
hackers and accidental loss has opened in :ondon!
1conomic growth in India pro&ected at 3!/35 in ,1-, says <' report
<' pro&ected the global economy to grow at a pace of / per cent in ,1- and /!/ per cent in
,13!
Indian >verseas Bank launched B)onnect )ardC, a new #T* cum $ebit card in association with
EI8# that can be used for ecommerce across five lakh merchant outlets!
The )ompetition )ommission of India "))I% approved #merican retail giant 0almart 8tores
IncGs proposal to ac7uire Bharti 2roupGs nearly 3 per cent stake in their Indian wholesale
stores &oint venture!
The 'ational Bank for #griculture and Rural $evelopment "'#B#R$% pro&ected a credit
potential of Rs 1,A,@!6/ crore in the state focus paper "8(4% for the year ,1--13 in
<ttarakhand under the priority sector!
)as! ?pda!e@ Aune B0 2014.
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