Banking and Financial News as per Today's Newspapers and Media 10.08.2017

S.K. Kakkar, Senior Advisor, HR and IR, IBA,  acknowledged receipt of UFBU's letter to the Chairman, IBA, informing him of the decision of member unions - AIBEA, AIBOC, NCBE,AIBOA, BEFI, INBEF, INBOC, NOBW and NOBO - to go on strike. The IBA has gone through the demands raised by the UFBU but observed that most of the issues are at the macro-level where the government has to take a decision. The IBA can facilitate taking up these issues in the appropriate forum. In addition, there are other issues which are under bipartite discussions, for which talks have been initiated. The IBA, therefore, requested the unions to reconsider their decision and refrain from undertaking the agitation programme. It extended an invitation to the UFBU to its office this afternoon along with a represen- tative each from the officers' association and workmen's union to discuss matters "with an open mind."

-Economic Times 

The Finance Ministry is expected to initiate the process of consolidation of PSBs once the first quarter results of the current fiscal have been announced, a senior official has said.

-Economic Times 

Bank of India swung into the black by registering a standalone net profit of ₹ 87.71 crore for the first quarter ended June as bad loans were brought down year-on-year. The bank had reported a net loss of ₹ 741.36 crore in the April-June quarter of the previous fiscal due to bad assets and higher provisioning to cover it.

-Business Line

Union Bank of India today said it will raise ₹ 2,000 crore through various instruments, including rights issue and private placement. The Bank's committee of directors at its meeting today approved the capital raising issue.

-Economic Times 

ICICI Bank, launched instant credit cards  enabling its SB account customers to get a credit card instantly, in a completely digital and paperless manner. The bank has opened up this offering to a few lakh of pre-qualified customers who can apply for the card online and generate card details and start shopping online instantly.

-Economic Times 

IDFC Bank has partnered with digital payments co Zeta, to launch ‘IDFC Bank Benefits’ - a payment solution for corporates that digitises employee spends and claims, making the process simple, real-time and paperless.

-Economic Times 

Kotak Mahindra Bank  said it will offer debit card at a special price of ₹ 99 for the first year for customers who will open account under its zero balance account scheme till Sep 15. The usual annual fee for debit card procured by 811 account holders (zero balance) is ₹ 299.

-Economic Times 

Bank of India said it plans to shore up ₹ 8000 crore capital to boost growth while declaring net profit of ₹ 87.7 crore in June quarter 2017 against ₹ 741 crore loss posted a year ago, said bank’s M D, Dinabandhu Mohapatra, said.

-Economic Times

City Union Bank has reported a net profit of ₹ 140.32 crore during the quarter ended June 30, 2017, as compared to ₹ 123.52 crore, a year ago, an increase of 14%. 

-Business Standard 

More Indians are now using a mobile banking app or going online rather than just talking to a banking adviser on phone to address complex issues, according to the survey, 'Customer Experience in Banking', by global tech co Avaya.

-Economic Times 

Mobile wallets are still not the preferred mode for online/mobile payments. Urban internet users prefer net banking, debit cards, credit cards and even cash on delivery to mobile wallets, according to an ET-RICS Retail Banking report.

-Economic Times 

Though demonetisation had some positives, former RBI Governor Bimal Jalan says he would not have approved it had he been at the helm of the country's central bank. There is need to tackle the problem of black money at the root and see whether taxes are high, he feels.

-Economic Times

India's agricultural exports have declined to $33.87 billion in 2016-17 from $43.23 billion in 2013-14, Parliament was informed today. The primary reasons for decline in export of agricultural commodities are low commodity prices in the international market, "which has made our exports uncompetitive," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha.

-Economic Times 

Citizens of 80 countries including India can now enter Qatar visa-free. The countries include India, the UK, the US, Canada, South Africa, Seychelles, Australia and New Zealand. "Citizens of these 80 countries wishing to visit  Qatar will not need to apply or pay for a visa," Qatari officials announced in a release said.

-Economic Times 

The Kerala Government today said it would ask the Centre to ban the online ‘BlueWhale’ game in the country, citing reports of a large number of children getting addicted to the game that was allegedly abetting their suicide worldwide. Chief Minister Pinarayi Vijayan said the state police had already issued necessary alerts to make parents vigilant about the game and to ensure that children do not get addicted.

-Business Line 

USD/INR 63.83

SENSEX 31797.84(-216.35) 

NIFTY50 9908.05(-70.50)

Banking and Financial News as per Today's Newspapers and Media 09.08.2017

The RBI has asked banks to ensure customers’ lockers remain safe and there is “no negligence” that could render banks liable to claims by locker holders, Parliament was informed today. Besides, banks are being probed by the fair trade regulator CCI for alleged cartelisation in providing locker services to their customers. In a written reply to the Rajya Sabha, Corporate Affairs Minister Arun Jaitley said there is no specific circular by the Department of Financial Services asking banks to compensate customers for theft of articles from bank lockers.  "... the banks have been advised by the RBI that it would be the responsibility of the banks to ensure the lockers remain safe and there is no negligence in the matter of safe-guarding the lockers that could render the banks concerned liable to claims by locker holders,” he said. 

-Business Line 

The Government today asserted that the new 500 and 2,000 rupee notes have single unique dimension.  "Bank notes in each denomination has a distinct dimension. The size of new design ₹ 500 bank note is 66mm x 150mm and the size of new design ₹ 2,000 bank note is 66mm x 166mm," Minister of State for Finance Arjun Ram Meghwal said in a written reply to a question in the Rajya Sabha.

-Times of India 

Cyber security preparedness is a continuous activity and the RBI has asked banks to periodically conduct vulnerability test, the finance ministry said today. In a written reply to the Rajya Sabha, Minister of State for Finance Santosh Kumar Gangwar said the RBI has issued Cyber Security Framework in Bank to help them deal with any future cyber attacks. 'WannaCry'  ransomware attacks  were reported from banks during May and June this year and a few computers in two bank branches and one ATM unit were impacted "though no data loss was reported", according to the RBI.

-Economic Times 

Axis Bank has cut SB account interest rate by 50 bps to 3.5% on balances of up to ₹ 50 lakh.The bank said it will continue to offer 4% interest per annum on Says will continue to offer 4% interest per annum on SB account balance of ₹ 50 lakh and above.

-Business Line 

Commonwealth Bank of Australia on Tuesday scrapped its CEO's bonus for damaging the bank's reputation amid allega- tions it broke money-laundering and counter-terrorism financing rules, but said he retained the board's confidence. Australia's financial intelligence agency last week accused the bank of roughly 53,700 breaches, launching a civil court action that could see the country's biggest lender fined several billion dollars.

-Business Line 

India may soon take a call on how to deal with virtual currencies including bitcoins on the regulatory front with a government-appointed panel submitting its report to Finance Minister Arun Jaitley here recently. “The inter-disciplinary committee chaired by Special Secretary in Department of Economic Affairs has submitted its report,” an official said.The contents of the report have not yet been made public.

-Business Line 

Leading bankers yesterday reviewed the progress on the 12 large stressed accounts named by the RBI resolution for action under the Insolvency and Bankruptcy Code (IBC).

-Economic Times 

India’s farm sector received FDI worth ₹ 354.77 crore during April-May this year, Parliament was informed today. The data in this regard was placed before the Lok Sabha by Minister of State for Agriculture SS Ahluwalia.

-Business Line 

Idea Cellular has filed an application before National Company Law Tribunal (NCLT), Ahmedabad Bench, seeking approval for its merger with Vodafone India and and Vodafone Mobile Services.

-Business Line 

The IRDAI has asked LIC to reduce its stakes in L&T and ITC to 15% by Dec 2018. However, in companies where LIC has strategic invest- ments, like Corporation Bank and LIC Housing Finance, it does not have to reduce its stakes to 15% or less.

-Business Standard 

The Department of Financial Services, Ministry of Finance, has set up a committee to resolve the pending issues of bank pensioners and retirees. Demands of the pensioners/retirees include 100% DA neutralisation for pre-2002 retirees; improvement in family pension, medical insurance and a medical benefit scheme; pension updation; second options to compulsorily retired officers and resignees who have put in a pensionable service. The UFBU had taken up the issues mentioned in the record note of the last bipartite settlement during the ongoing negotiations for the 11th settlement. During the meeting with the Chairman of the IBA sub-committee in charge of negotiations on Aug 1, the UFBU had taken up them and had received a favourable response.

-Business Line 

The benchmark Sensex plunged nearly 260 points at the closing trade on concerns over a broad government crack- down on suspected illegal offshore transfers and tax evasion after an unexpected regulatory order by the capital markets regulator.

-Business Line 

USD/INR 63.63

SENSEX 32014.19(-259.48) 

NIFTY 509978.55 (-78.85)

Today's GK

PRABHAT  KUMAR

√ Who has been appointed as the new Ambassador of India to the Republic of Kazakhstan?-Prabhat Kumar, the IFS officer of 1991 batch, presently, he is Ambassador of India to Colombia.

√ Microsoft has tied up with which Indian state to use its AI-based MINE platform to screen children for eye problems?--TELANGANA.  The Microsoft Intelligent Network for Eyecare (MINE) is an artificial intelligence platform to reduce avoidable blindness. With this tied up, Telangana has become the first Indian state to deploy artificial intelligence for eyecare screening.

√ Which country to host the 15th meeting of the Foreign Ministers of BIMSTEC countries? NEPAL. Foreign Ministers of BIMSTEC countries will be held in Kathmandu, Nepal from August 10-11, 2017. From India, the Union External Affairs Minister Sushma Swaraj will represent India.

BN SHRIKRISHNA

√ Which committee has recently submitted report on institutionalization of arbitration mechanism in India? BN Srikrishna committee. The committee has recommended for setting up an Autonomous Body, Arbitration Promotion Council of India (APCI) having representatives from all stakeholders for grading arbitral institutions in India. The APCI may recognize professional institutes providing for accreditation of arbitrators. The APCI may hold training workshops and interact with law firms and law schools to train advocates with interest in arbitration and with a goal to create a specialist arbitration bar comprising of advocates dedicated to the field. 

RAJIV KUMAR

√ Who has will be the new Vice-Chairman of NITI Aayog? Rajiv Kumar.  He will succeed Arvind Panagariya, who will leave the government think tank on August 31, 2017.

√ India has recently signed how much amount of loan pact with AIIB for Gujarat road project? $329 million.

√ India’s first private sector missile sub-systems manufacturing facility has set up in which city? Hyderabad on August 4, 2017.

√ The Union Government on 4 August 2017 made Aadhaar mandatory for registration of deaths so as to provide an effective method to prevent identity fraud. Mandatory Aadhaar registration for death will come into effect from which date? – 1 October 2017.

 

√ Union Government divested 5.5% of its stake in which public sector entity through the offer for sale (OFS) route on 2 and 3 August 2017? – Hindustan Copper Limited (HCL)

 

√  US stock exchange Dow Jones during August 2017 crossed which mark for the first time ever? – 22,000 points.

 

√  According to the information disclosed by the union government on 4 August 2017 it has set up a new exchange-traded fund (ETF) comprising 22 scrips including ONGC, IOC, SBI and Axis Bank. It is the second ETF from the government after CPSE ETF. What is the name given to this ETF? – Bharat-22. Bharat-22 is the name of the new exchange-traded fund (ETF) established by the Union Government that comprises of 22 blue-chip public sector units, state-owned banks and some holdings in SUUTI. It has a diversified portfolio of six sectors, including energy, FMCG, finance, basic material and industrial and utilities.

√ Which country is poised to be the first country in the Gulf region to grant permanent residency to some of the foreigners as a landmark legislation was approved by this country’s Parliament on 2 August 2017? – Qatar.

Banking and Financial News as per Today's newspapers and media 07.08.2017

Banking and Financial News as per Today's newspapers and media 07.08.2017

As many as 12 PSBs including  PNB,  Bank of India and Indian Bank have lined up plans for raising funds from markets to shore up their capital base to meet global risk norm, Basel III. About 6-7 lenders including Andhra Bank expect to close their capital raising plan by the end of the current fiscal, sources said. The remaining would raise funds through follow on public offer (FPO) or Qualified Institutional Placement (QIP) from the market during the course of the next fiscal, they added.
-Economic Times

There is no need for central government employees to visit banks to start  pension  as their copy of the PPO will be handed over to them at the time of retirement, the Personnel Ministry  has said. Citing existing rules in this regard, the ministry, in a recent order issued to all Central Govt departments has said, "The pensioner is no longer required to visit the  bank  to activate the first payment of pension."
-Economic Times

Come September, Punjab National Bank (PNB) customers will have to pay charges for depositing cash above ₹ 5,000 in a non-base branch even if it is located in the same city, PNB  said in a communication to customers. Currently, the customers are levied charges only for depositing cash over ₹ 25,000 at a non-base branch within the same city.
-Business Line

Indian Bank is looking to bring down its gross NPAs to below 5% by March from over 7% in the June quarter on the back of better recoveries, upgrades and write-offs, Kishor Kharat, MD and CEO told.
-NDTV Profit

Noted economist Rajiv Kumar will be the next Vice-Chairman of NITI Aayog, which is a think-tank that replaced the Planning Commission. He will succeed Arvind Panagariya, who had recently quit as Vice Chairman of Niti Aayog
-Business Line

Switzerland found India's data security and confidentiality laws "adequate" for entering into an automatic exchange of information pact, which will open a continuous access to details about alleged  black money hoarders in once-all-secret Swiss bank.
-Economic Times

The external value of the Indian  rupee currently supersedes its internal strength and the resulting mismatch is hurting exporters, whose competitive edge gets hit with the declining value of the dollar vis-a-vis the rupee, industry lobby Assocham said today.
-Economic Times

Tightening its disclosure norms for listed companies defaulting on loans taken from banks and other financial intuitions, regulator SEBI today asked firms to make such information public within one working day. This would come into force from Oct 1, the SEBI said in a circular.
-Business Line

About 400 senior executives of Cognizant have accepted the co’s voluntary separation package (VSP), a move that the US-based co said, will help it save about $60 million annually. In May, the co had initiated a VSP, offering up to 9 months of salary as part of it to some of its top-level executives in the US and India.
-Financial Express