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Banking Digest (8-14 JuLY)

Ø  Harideesh Kumar appointed as Director of IBPS
·B Harideesh Kumar has been appointed as director of Institute of Banking Personnel Selection for a period of three years. Earlier, he was the Executive Director of Canara Bank.


 RBI board finalises ‘Utkarsh 2022’
·  The Reserve Bank of India board has finalised a three-year roadmap ‘Utkarsh 2022’. It is a three-year road map for medium term objectives to be achieved for improvingregulation and supervision of the central bank.



SBI slashes lending rates by 5 bps 
·State Bank of India has reduced its benchmark lending rate by 5 bps across all loan tenures. The lender’s one-year marginal cost of funds based lending rate (MCLR) will be 8.4% compared with 8.45%.


 Deposits in Jan Dhan Yojana accounts crosses Rs 1 lakh crore
·Deposits in bank accounts opened under Jan Dhan scheme have crossed the Rs 1 lakh crore mark. As per the latest finance ministry data, the total balance in over 36.06 crore Pradhan Mantri Jan Dhan Yojana accounts was at Rs 1,00,495.94 crore as on July 3. 


· The PMJDY was launched on August 28, 2014, with an aim to provide universal access to banking facilities to the people in the country.


 RBI panel moots changes in timings for foreign exchange market
·Internal committee of the RBI has suggested that the foreign exchange market could function from 9 am to 9 pm. At present, the currency market works from 9 am to 5 pm. The panel suggested call money market timings could be extended till 6 pm instead of the 5 pm now.

·  The extension of market timings is expected to provide benefits such as better pricing of post market hours information/data, improved onshore price discovery and a possible shift of offshore volumes to onshore.


  India’s Anshula Kant is World Bank MD and CFO
·The World Bank Group announced that Anshula Kant, an Indian national, has been appointed Managing Director and Chief Financial Officer. Ms. Kant will be the first woman CFO of the Bank.


 Price for SGBs fixed at Rs 3,443 per gram
·The government fixed the price of the new series of Sovereign Gold Bonds (SGBs) at Rs 3,443 per gram opening July 8, 2019. In consultation with the Reserve Bank of India (RBI), the Centre decided to allow a discount of Rs 50 per gram from the issue price (Rs 3,393 per gram) to those investors who apply online and if the payment is made through digital mode. 


·Under SGB scheme, launched in November 2015, bonds are denominated in units of one gram of gold and multiples thereof.



 NHAI inks pact with NIIF to fund highway projects
· National Highways Authority of India (NHAI) signed an MoU(Memorandum of understanding) with National Investment and Infrastructure Fund (NIIF) to fund large scale projects, including highways in a bid to achieve Prime Minister’s vision to make India a $5-trillion economy in the next five years.


·The digital tool for the recovery of stressed assets will provide an end to end digital solution. It will enable easy and faster processing, real time information and immediate decision making in the recovery area.





Samsung joins hands with to offer financial products

· South Korean multinational conglomerate, Samsung partners with, India’s largest online marketplace to offer financial products.


Exim Bank signs Loan Pact worth  $124 Mn For Infra, Health Projects In Papua New Guinea, Senegal
· The Export-Import Bank of India (Exim Bank) has signed a loan agreement of providing $124 million (over Rs 850 crore) to Papua New Guinea and Senegal governments to finance infrastructure and health care projects.


·Exim bank has extended Line of Credit(LoC) of USD 100 million to the  Government of Independent State of Papua New Guinea for the purpose of financing infrastructure related projects($60 million is to go for Bayer-Madang road project and $40 million for Hoskins-Kimbe road project).

SBI waives off charges for NEFT, RTGS to boost e-transactions
· In a bid to move the country towards a less-cash economy, country’s largest bank, the State Bank of India(SBI) waived Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT)charges for its app YONO(You Only Need One), internet and mobile banking customers


·  It also waived off the charges for  Immediate Payment Service (IMPS) from 1 August 2019. The directive was issued under Section 10 (2) with Section 18 of the Payment and Settlement Systems Act 2007.



Wilful defaults exceed $21 billion in India for the year 2018-19, SBI holds the highest
·The state-owned banks in India stated that Rs.1.50 trillion ($21.76 billion) worth of loans as wilful defaults in 2018-19. the State Bank of India(SBI) holds the highest number of wilful defaults, worth around INR 461.58 billion, while Punjab National Bank(PNB) ranked second at  Rs.250.9  billion and Bank of India at Rs.98.9 billion.


Govt infused over Rs.3.15 lakh crore into PSBs in 11 Years between FY09 and FY19
· Anurag Singh Thakur, Minister of State for Finance stated that the government has infused over Rs 3.15 lakh crore into public sector banks(PSB) in the last 11 years up till 2018-19.


·Public sector banks source capital from internal capital generation, mobilization of capital from markets, and the government infusion. The capital infusion by the government complements PSU( Public sector Undertakings ) banks’ internal capital generation and mobilization of capital from markets.



AIIB provides $100 million to L&T Finance arm for wind and solar infrastructure projects
·The Asian Infrastructure Investment Bank (AIIB) will provide $100-million loan to L&T(Larsen & Toubro) Infrastructure Finance Company(LTIF) for wind and solar infrastructure projects. This is the first time AIIB is extending loan to a non-banking finance company(NBFC).


· LTIF, a subsidiary of L&T Finance Holdings collaborated with AIIB to explore the international market for green finance.

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