BANKING & FINANCE
Parliament approved merger of subsidiary banks with SBI; 3 previous bills repealed
On July 20, 2018, With Rajya Sabha clearing the bill of State Banks (Repeal and Amendment) Bill, 2017, Parliament officially approved of the bill to merge SBI with its subsidiaries.
i. The bill repealed the State Bank of India (Subsidiary Banks) Act, 1959, and State Bank of Hyderabad Act, 1956 and amended the State Bank of India (SBI) Act,1955.
ii. This was done for rationalisation of resources, reduction of costs, better profitability, lower cost of funds leading to better rate of interest for public at large, improved productivity and customer service.
About the merger:
i. The Bill was introduced in the Lok Sabha by the Finance Minister Arun Jaitley on July 21, 2017, and had been passed by the lower house.
ii. The Union Cabinet granted its approval in February 2017, which allowed the SBI to acquire these subsidiaries.
i. The State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore were constituted under the State Bank of India (Subsidiary Banks) Act, 1959.
ii. The State Bank of Hyderabad and the State Bank of Patiala were wholly owned by the State Bank of India (SBI). The SBI had 90 per cent shareholding in the State Bank of Mysore, 75.07 per cent shareholding in the State Bank of Bikaner and Jaipur and 79.09 per cent shareholding in the State Bank of Travancore.
BUSINESS & ECONOMY
India’s economic growth remains intact; GDP to grow around 7.5%: FICCI
On 19th July 2018, FICCI (Federation of Indian Chambers of Commerce and Industry) said that, India’s economic growth remains intact and India’s GDP is expected to grow at 7.5 % in the current financial year.
India’s economic growth remains intact; GDP to grow around 7.5%:
i. As per FICCI, the slowing down of industrial output growth in May to 3.2 % and increase in retail inflation to 5 % in June are short-term challenges that are pro-actively acted on by the government and the RBI.
ii. These would not affect the signs of revival in the economy significantly.
iii. FICCI President Rashesh Shah, said that, the industrial output growth would rebound in the next few months.
iv. The rise in inflation is monitored by RBI. RBI and the government will take necessary steps to maintain it at manageable levels.
v. The Goods and Services Tax (GST) will act as a catalyst in this. The GST collection trends show a positive sentiment in the economy.
vi. The national integrated indirect tax structure will also reduce inflation, going forward.
vi. He added that, GST Council and the central government are willing to rationalise the GST rate structure, bringing in excluded items and simplifying the tax administration.
vii. He said that along with GST, reform measures like Insolvency and Bankruptcy Code and Real Estate (Regulation and Development) Act, 2016, are already showing results. They will help to take GDP growth beyond 8 %.
Tag lines of some banks:
♦ Allahabad Bank – A tradition of trust
♦ Andhra Bank – Where India Banks
♦ Bank of Baroda – India’s International Bank
MoU signed between CSIR-NPL and HPCL for indigenous development of petroleum Certified Reference Materials (CRMs)
On 19th July 2018, CSIR- National Physical laboratory (NPL) has signed a MoU with Hindustan Petroleum Corporation Limited (HPCL) for indigenous development of petroleum certified reference materials (CRMs) under trade name of Bhartiya Niredeshak Dravyas (BNDTM).
MoU signed between CSIR-NPL and HPCL:
i. This will make sure that highest standard quality ecosystem is maintained for petroleum products used by all stakeholders. It will also save major foreign exchange by import substitution for CRMs.
ii. Certified Reference Materials (CRMs) has an important role in calibration of laboratory testing equipment for quality assurance.
iii. Currently, the traceability of these CRMs to SI unit is mostly done through foreign National Measurement Institutes (NMIs).
iv. CSIR-NPL is the National Measurement Institute of India. It is disseminating SI traceability using indigenous development of Certified Indian Reference Materials with trade name Bhartiya Nirdeshak Drvayas (BNDTM).
v. CSIR-NPL has developed BNDs for high purity Gold, Coal, and Water & building materials.
vi. HPCL is a Navratna PSU under Ministry of Petroleum & Natural Gas (MoPNG). CSIR NPL & HPCL will now develop BNDs used in Petroleum sector in India.
About CSIR- National Physical laboratory (NPL):
♦ Director – Dr. D. K. Aswal
♦ Aim – to strengthen and advance physics-based research and development for the overall development of science and technology in India
Amazon.com’s stock market value hits $900 billion, threatens Apple
On 18th July 2018, Amazon.com’s stock market value reached $900 billion for the first time, posing a threat to replace Apple as Wall Street’s most valuable firm.
Amazon.com’s stock market value hits $900 billion:
i. On 18th July 2018, Amazon.com announced that, it sold over $100 million products during its annual Prime Day sale.
ii. On the same day, its stock touched $1,858.88, giving Amazon a stock market value of $902 billion. It later reversed, trading down 0.16 % for the session.
iii. Amazon’s stock has increased over 57 % in 2018, making its increase to more than 123,000 % since it listed on the Nasdaq in 1997.
iv. Apple replaced Exxon Mobil as the US company with the largest stock market value in 2011. Its shares have risen 12 % in 2018, bringing its stock market value to $935 billion.
♦ CEO – Jeff Bezos
♦ Headquarters – Seattle, Washington, U.S.
Stashfin & DMI Finance partnered up to raise Rs 30 crore for onward lending through StashFin.com
On July 20, 2018, Digital lending platform StashFin has partnered with non-banking finance company DMI Finance to raise Rs 30 crores for onward lending through their platform StashFin.com .
To augment its portfolio to meet the growing needs from their customers.
i. The company had raised $5 million (Rs 32.2 crore) in a pre-Series A round of funding.
ii. The investors included Kirloskar Group’s venture capital arm, Snow Leopard Ventures, as well as Singapore-based Alto Partners and GrowX Ventures.
How it works:
i. StashFin helps in making lending easy, transparent, safe and secure for borrowers across India.
ii. It provides personal loans ranging from Rs 10,000 to Rs 3,00,000 to salaried professionals.
iii. The company lends only 10 per cent of the actual lending capacity of a person.
♦ Founded in September 2016.
♦ Founded by: Tushar Aggarwal.
♦ Currently it operates in Delhi, Mumbai, Pune, Bangalore, Hyderabad.