Banking Current Affairs | May 2022

Banking Current Affairs

NARCL appoints Natarajan Sundar as CEO
 National Assets Reconstruction Company Ltd (NARCL) has informed that Natarajan Sundar has
assumed the charge of MD and CEO of the Rs 6,000-crore bad bank.
 Prior to this, Sundar was Deputy Managing Director and Chief Credit Officer of SBI.
 He retired on April 30, 2022.
 NARCL has also appointed Karnam Sekar as the independent director and non-executive
chairman of the board.
LIC launches Bima Ratna, a savings life insurance plan
 Life Insurance Corporation of India has launched a savings life insurance plan called Bima
Ratna.
 The non-linked, non-participating, individual scheme offers a range of protection and savings.
 Bima Ratna plan is aimed at providing financial support to the family in case of the unfortunate
death of the policyholder during the policy term.
Rs 100 currency notes, Rs 5 coin most preferred in India: RBI Survey
 People in India most prefer the Rs 100 denomination banknotes, while Rs 2,000 are least
preferred.
 This was revealed in a Reserve Bank of India survey of a diverse sample of 11,000 respondents
revealed.
 Among coins, Rs 5 is most preferred, whereas Re 1 is least preferred.
 The survey has been conducted to assess demand for cash as well as denomination preferences
at the consumer level.
Japan’s MUFG Bank to open branch in GIFT City
 MUFG Bank on 26 May 2022 became the first Japanese bank to obtain approval for opening a
branch at Gujarat International Financial Tec-City (GIFT City). This will be the bank’s sixth
branch in India.
 At present, the bank has a presence in Mumbai, Delhi, Bengaluru, Chennai and Neemrana.
 MUFG had opened its first branch in Mumbai in 1953.
BOB Financial and HPCL launch co-branded contactless RuPay Credit Card

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 In partnership with National Payments Corporation of India (NPCI), BOB Financial and
Hindustan Petroleum have launched the HPCL BoB co-branded contactless RuPay Credit Card.
 The card comes with various features including rewards for spending on utilities, grocery and
departmental stores.
 BOB Financial is a wholly-owned subsidiary of the Bank of Baroda.
 Bank of Baroda Chairman- Hasmukh Adhia
Fintech startup Mahagram partners with IndusInd Bank
 A rural fintech company Mahagram has partnered with IndusInd Bank.
 The aim is to create a new-generation Indian bank to digitize the country’s payment ecosystem.
 Founded in June 2015, Mahagram aims to build India's largest network of last-mile retail points
of sale.
 The partnership between the two aims to boost financial inclusion and encourage socio-
economic development.
Reliance General Insurance launches new health policy
 Reliance General Insurance Company has announced the launch of its new health insurance
policy Reliance Health Gain.
 Customers can customise health insurance policy by choosing features as per their needs and
paying only for what they choose.
 It comes loaded with 38 industry leading features like double cover that provides twice the
amount of sum-insured to be used during the same claim
A Gopalakrishnan wins VASVIK Industrial Research Award 2020
 Dr A Gopalakrishnan has won the prestigious VASVIK (Vividhlaxi Audyogik Samshodhan Vikas
Kendra) Industrial Research Award for the year 2020 in the category of Agricultural Sciences
and Technology.
 He is the Director of the ICAR-Central Marine Fisheries Research Institute (CMFRI).
 The award carries a cash prize of Rs. 1.51 lakh and citation.
Moody's lowers India's CY22 growth forecast to 8.8%
 In the May update of its Global Macro Outlook 2022-23, Moody's has lowered its calendar-year
2022 growth forecast for India to 8.8% from the earlier forecast of 9.1% made in March.
 It has maintained its 2023 growth forecasts at 5.4%.

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 Moody's expects the G-20 economies to grow 3.1% in 2022, down from 5.9% growth in 2021.
FY22 GDP growth seen at 8.2-8.5%: SBI Ecowrap report
 The State Bank of India research report Ecowrap, in its latest edition, projected India's GDP
growth for FY22 to be at 8.2-8.5 per cent.
 For Q4FY22, the report projected growth at 2.7 per cent.
 The report added that the Central Statistics Office had projected Q4 GDP at Rs 41.04 lakh crore
and FY22 real GDP growth at Rs 147.7 lakh crore.
HDFC Bank and Retailio launch co-branded credit cards
 India's largest private sector bank, HDFC Bank has partnered with Retailio to launch a new
range of co-branded credit cards.
 These credit cards are primarily targeted at chemists and pharmacies in the merchant segment.
 Retailio is the country's largest B2B pharma marketplace.
 HDFC Bank Headquarters - Mumbai, Maharashtra
 HDFC Bank Chairman - Atanu Chakraborty
 HDFC CEO - Sashidhar Jagdishan
SBI launches Xpress Credit on YONO platform
 State Bank of India (SBI) has launched personal loan product ‘Xpress Credit’ for salaried
customers on its YONO digital banking platform.
 Eligible customers will now be able to avail personal loans up to ₹35 lakh via YONO, without
any paperwork.
 SBI is the 43rd largest bank in the world headquartered in Mumbai, Maharashtra.
 SBI Chairman - Dinesh Kumar Khara
RBI sets up 6-member committee to review customer service standards
 The Reserve Bank of India has set up a six-member committee headed by former Deputy
Governor, B. P. Kanungo, to review customer service standards in entities regulated by it.
 The central bank said the committee will submit its report within three months from the date of
its first meeting.
 RBI Established - 1 April 1935
 RBI Governor - Shaktikanta Das

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 RBI Headquarters - Mumbai

PAN, Aadhaar mandatory for cash deposits or withdrawals above ₹20 lakh
 The government has made quoting of PAN or Aadhar mandatory from May 26 in case cash
deposits and withdrawals in a financial year exceed ₹20 lakh.
 There is also a requirement for quoting PAN on bank deposits of over ₹50,000 made in one day.
 The main objective of this is to put a check on unaccounted financial transactions through the
cash route.
IDBI Bank to exit insurance joint venture
 IDBI Bank is divesting its entire stake in Ageas Federal Life Insurance Company Ltd (AFLI) to
Ageas Insurance International NV (Ageas) for Rs 580.20 crore.
 AFLI, is a joint venture among IDBI Bank, Federal Bank and Ageas, which is one of Europe’s
largest insurance firms.
 IDBI Bank is an Indian private sector bank and a subsidiary of Life Insurance Corporation
Rakesh Sharma is the CEO & MD.
Vijay Shekhar Sharma reappointed MD and CEO of Paytm
 Paytm founder Vijay Shekhar Sharma has been re-appointed as the Managing Director and
Chief Executive Officer of Paytm.
 He has been reappointed to the post for a period of five years with effect from December 19,
2022.
 Madhur Deora, the Chief Financial Officer of the company, has been appointed as an
Additional Director with effect from May 20, 2022, for a period of five years.
RBI approves transfer of Rs 30,307 crore as surplus to central govt
 The Reserve Bank of India (RBI) will transfer Rs 30,307 crore as surplus to the government for
2021-22.
 The decision was taken after deciding to maintain the contingency risk buffer at 5.50 percent of
its balance sheet.
 According to the Bimal Jalan committee’s report, the RBI, at all times, has to maintain a
minimum contingency risk buffer of 5.5 per cent.
BRICS-led New Development bank to set up regional office in India

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 The New Development Bank (NDB), the Shanghai-based multilateral bank of the BRICS
countries, will open its first regional office in India at the Gujarat International Finance Tec-City
(GIFT City)
 The India office will focus on expanding its footprint in the country.
 The bank is headquartered in Shanghai, China and was formally opened in July 2015.
World Bank sanctions USD 350 billion to Gujarat
 The World Bank has sanctioned USD 350 billion to Gujarat to implement the Systems Reform
Endeavours for Transformed Health Achievement in Gujarat (SRESTHA-G).
 Under the SRESTHA-Gujarat project, the government will undertake the initiative to improve the
quality of the health system of the state by expanding the health services to the rural and urban
people.
Banking Frauds Dip 51% To Rs 40,295 Crore
 Public sector banks reported over 51 per cent dip in the amount involved in frauds to Rs
40,295.25 crore during the financial year ended March 2022, the Reserve Bank of India has said.
 The 12 PSBs (Public Sector Banks) had reported frauds worth Rs 81,921.54 crore in preceding
fiscal 2020-21.
 The country's largest lender State Bank of India reported frauds worth Rs 6,932.37 crore.
World bank sanctions USD 350 million to Gujarat's SRESTHA-G project
 The World Bank has approved USD 350 million as financial aid for the implementation of
Systems Reform Endeavours for Transformed Health Achievement in Gujarat (SHRESTHA-G).
 The aid has been sanctioned to the state under the project to improve the health facilities and
services.
 Gujarat Governor - Acharya Dev Vrat
 Gujarat Chief Minister - Bhupendrabhai Patel
RBI appoints two new executive directors
 The Reserve Bank of India has appointed Dr Rajiv Ranjan and Dr Sitikantha Pattanaik as
Executive Directors (EDs).
 As Executive Director, Dr Ranjan will look after the Monetary Policy Department (MPD).
 Dr Pattanaik will look after the Department of Economic and Policy Research (DEPR).
ICICI Lombard launches Professional Indemnity insurance for doctors

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 ICICI Lombard has launched professional indemnity insurance for doctors.

 This policy has been curated to provide support to medical practitioners against the scope of
various human errors that can happen while rendering professional services to patients.
 Professional Indemnity insurance supports doctors both legally and financially in the event of a
law suit, as per the company.
RBI imposes Rs 59 lakh penalty on KEB Hana Bank
 RBI has imposed a penalty of Rs 59 lakh on KEB Hana Bank.
 The Korean bank has been penalised for non-compliance with the directions issued by RBI on
"Reserve Bank of India (Interest Rate on Deposits) Directions, 2016".
 The statutory inspection for supervisory evaluation of KEB Hana Bank was conducted by RBI
with reference to its financial position as on March 31, 2020.
NSE Academy collaborates with HDFC Asset Management Company
 NSE Academy Ltd (NAL), a wholly-owned subsidiary of National Stock Exchange of India Ltd
(NSE) has signed an agreement with HDFC Asset Management Company Ltd (HDFC AMC).
 It will launch a first-of-its-kind programme, ‘Invest-verse: An Introduction to the World of
Investing’.
 The programme will be offered to college students across India.
Union Bank of India launches cross border trade finance service
 Union Bank of India has launched 'Trade nxt', a cross-border trade finance service for Indian
exporters and importers.
 It will enable corporates as well as MSMEs to transact all cross-border export-import
transactions.
 The online platform offers seamless entry and processing of letters of credit (LC), bank
guarantees, export and import bills, disbursement of export credit, etc.
BIAL partners with Kotak Mahindra Bank
 Bangalore International Airport Ltd (BIAL) has partnered with Kotak Mahindra Bank and digital
payment firm Phi Commerce.
 It will facilitate a one-stop omnichannel payment solution at Kempegowda International
Airport.
 Designed specifically for the airport, the solution will enable a secure, scalable, and unified
payment experience.

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SpiceJet and Axis Bank launch co-branded credit card

 SpiceJet and Axis Bank have partnered to launch the most rewarding co-branded credit card,
powered by Visa that will offer a host of privileges and benefits to customers.
 The card comes in two variants – SpiceJet Axis Bank Voyage and Voyage Black.
 It is aimed at facilitating a superlative travel experience for flyers through SpiceClub, the first
frequent flyer program.
HDFC Bank launches 30-minute Xpress Car Loan
 HDFC Bank has launched ‘Xpress Car Loans’.
 It is an end-to-end digital new car loan journey for existing customers as well as non-customers.
 The bank has integrated its lending application with automobile dealers across the country.
 This will help simplify the car purchase process and drive car sales across the country, including
in semi-urban and rural areas.
Morgan Stanley cuts India's GDP growth forecast for FY23 and FY24
 Morgan Stanley has trimed India's gross domestic product (GDP) growth forecasts to 7.6% for
F2023 and to 6.7% for F2024.
 Further, a slowdown in global growth, higher commodity prices,and potential risk aversion in
global capital markets expose India to downside risks.
 It also expects global growth to average 2.9% YoY in 2022 slowing from 6.2% growth in CY21.
RBI approves merger of Equitas Holdings and Equitas SFB
 Equitas Small Finance Bank and Equitas Holdings Ltd have been given RBI's no-objection to
their proposal of amalgamation, subject to conditions.
 According to RBI conditions laid down for SFBs in June 2016 equity shares of SFBs should be
listed on recognised stock exchange(s) within three years from the date the net worth of SFB
reaches Rs 500 crore.
HDFC Bank hikes MCLR across all tenors
 HDFC Bank has increased its marginal-cost-based lending rate (MCLR).
 With effect from May 7, 2022, HDFC Bank has increased its MCLR by 25 basis points (bps) on all
tenors of loans.
 This will raise the cost of housing, vehicle, personnel, and other loans.
 Any change in the repo rate will change the marginal cost, and thus the MCLR

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 HDFC Tagline: We Understand Your World

Global Crypto Adoption Index by Chainalysis released
 Global Crypto Adoption Index has been released by crypto analytics firm Chainalysis.
 United States topped the charts with an estimated realized gain of $49.95 billion, followed by
the United Kingdom (UK) with estimated realized gains of $8.16 billion.
 India was at 21st position with an estimated realized gain of $1.85 billion.
PNB hikes lending rate by 40 bps
 Punjab National Bank (PNB) has hiked its external benchmark linked lending rate by 0.40
percent to 6.90 percent with effect from 1 Jun'22.
 For new customers, the revised Repo Linked Lending Rate will be effective from May 7.
 PNB also increased the savings deposit rates for various tenors.
 For term deposits of less than Rs 2 crore, it has raised the interest rates to up to 5.10-5.15
percent.
RBI imposes penalty on two financial service providers
 The RBI on 6 May 2022 imposed a penalty of Rs 5 lakh each on Daimler Financial Services India
and KKR India Financial Services.
 They have been fined for non-compliance with directions related to 'monitoring of frauds in
NBFCs'.
 RBI conducted a statutory inspection of the two companies with reference to their financial
position as on March 31, 2020.
RBI raises CRR by 50 bps to 4.5 pc from May 21
 The Reserve Bank has announced a hike in cash reserve ratio (CRR) by 50 basis points to 4.5 per
cent, effective May 21, 2022.
 It will take out Rs 87,000 crore liquidity from the system.
 CRR is a percentage of a bank's total deposits that it needs to maintain as liquid cash.
 It has also been decided to raise the repo rate or the short-term lending rate by 40 basis points
to 4.4 percent.

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