BANKING & FINANCE
Bank credit grows at 12.84%, deposits at 7.59% ending in June 22 fortnight: RBI data
On July 6, 2018, According to RBI data in the fortnight ending in June 22, the bank credit grew by 12.84 per cent to Rs 86,16,408 crore and bank deposits had risen by 7.59 per cent to Rs 113,53,525 crore.
About Bank Credit:
i. In the year-ago fortnight, bank loans stood at Rs 76,35,689 crore.
ii. In June 22 it had risen by 12.67 per cent to Rs 85,98,703 crore from June 8.
iii. In May, non-food bank credit increased by 11.1 per cent year-on-year, compared with an increase of 4.1 per cent in May last year.
Reasons for bank credit rise in May:
i. Loans to industry rose by 1.4 per cent in May 2018, against a contraction of 2.1 per cent in May 2017.
ii. Advances to agriculture and allied activities increased by 6.4 per cent in May 2018, compared with an increase of 7.4 per cent in May 2017.
About Bank Deposits:
i. In June 23,2017, it was Rs 105,51,910 crore.
ii. The growth in deposits was slower than the period ended June 8, when it had increased by 8.35 per cent to Rs 114,04,303 crore.
NPCI awaiting RBI’s nod for UPI 2.0 ‘standing instruction feature’; Transaction cap may be doubled to Rs 2 lakh in upgrade
On July 6, 2018, United Payments Interface (UPI) will get a major upgrade with new features and a doubling of the transaction limit to Rs 2 lakh and is awaiting RBI’s approval. It is the apps most awaited ‘standing instruction feature’.
i. Reason for RBI’s delay in approval for the feature could be the fact that this feature is contrary to the two-factor authentication that RBI has mandated to for digital payments in India.
Features in the UPI 2.0:
i. Consumers will get a range of new features on UPI, starting with an overdraft facility to getting invoices attached with payment requests.
ii. One prominent feature on the upgraded UPI application would be the ‘block payment’ option, which consumers can adopt for cab rides, ecommerce deliveries, buying stocks during IPOs and other transactions.
iii. With this the service providers can block a certain amount in the customer’s bank account and debit it on successful completion of the service.
iv. Doubling of limit of transaction to Rs.2 lakh.
Benefits of the standing instruction feature:
i. This would enable consumers to instruct banks to debit their accounts regularly for repeat transactions, much like the auto-debit facility for loan repayments or mutual fund investments.
ii. This would save users the hassle of manually authorizing such payments repeatedly.
United Payments Interface (UPI) is the instant inter-bank fund transfer mechanism operated by the National Payments Corporation of India (NPCI). The facility was launched in 2016 by then RBI governor Raghuram Rajan.
HDFC Bank most valuable bank in the emerging market outside China : World’s 500 biggest companies
On July 6, 2018, HDFC Bank overtook Russia’s Sberbank to become the most valuable bank in the emerging market outside China.
i. HDFC Bank’s current market capitalisation is $78.4 billion against Sberbank’s $74.4 billion.
Position of Banks on a global level:
|JPMorgan Chase (USA)||$353 billion|
|Bank of America||$282 billion.|
|Industrial & Commercial Bank of China (China)||$273.4 billion|
|China Construction Bank (China)||$225.1 billion|
ii. There are 11 Indian companies among the world’s 500 biggest firms in terms of market cap and among them there are four lenders from India that now rank among the world’s 500 most valuable companies.
iii. There are a total of 65 banks in the list of world’s 500 biggest firms by market cap.
The Indian Companies under the list are:
|Tata Consultancy Services (TCS)||$103 billion|
Among the Banks in India:
|Kotak Mahindra Bank|
i. HDFC Bank has also been one of the top performing major banks globally last year. It has given 14.3 per cent return to its shareholders or equity investors in the past 12 months.
ii. HDFC Bank reported revenues of $15.7 billion in FY18 and net profits of $2.8 billion.
iii. It is currently trading at 4.7 times its latest annual book value, against a global average valuation of 1.3 times. Chinese banks are even cheaper, trading at 0.8 times their book value on an average making it one of the most expensive banking stocks in the world.
BUSINESS & ECONOMY
RIL, by paying Rs.9844 crore in FY18 ,becomes India’s largest tax payer in the private sector
On July 6, 2018, Reliance Industries Chairman Mukesh Ambani at the Reliance Industries’ 41st Annual General Meeting said that Reliance is India’s largest payer of Goods and Services Tax (GST), Excise and Customs Duty, and Income Tax in the private sector paying Rs.9844 crore in FY18.
About Reliance Jio:
i. Jio’s subscribers grew from 124 million at the end of last year to 210 million at the end of FY18.
ii. There are more than 25 million JioPhone users in India.
About the RIL’s achievements:
i. RIL’s consolidated net profit for the fourth-quarter (January-March) of fiscal 2017-18 stood at Rs 9,435 crore, up by 17.3 percent on a year-on-year basis.
ii. The company’s consolidated revenue stood at Rs 1,29,120 crore, up 39 percent during Q4 FY 18, compared to the Rs 92,889 crore posted in the corresponding quarter a year ago.
iii. Reliance has become the first Indian company to record PBDIT (Profit Before Depreciation Interest and Taxes) of over $10 billion.
Other Businesses Reliance Industries have are: refining, petrochemicals, retail and digital services.
Code name Train 18: Made-in-India by Integral Coach Factory to run from September 2018
On July 6, 2018, Integral Coach Factory (ICF) of Chennai announced the launch of indigenously manufactured semi high-speed train, code-named Train 18 in September,2018.
i. The train has been built in record time of 16 months which usually takes about 2 to 3 years .
ii. Train 18 doesn’t require an engine to run as it will be self-propelled on electric traction like the metro trains. It will replace existing intercity express trains including Shatabdis.
iii. ICF will make six such train sets, out of which two will have sleeper coaches.
Features of Train 18:
i. It is capable of running at a speed of 160 km per hour.
ii. Automatic doors with retractable footstep.
iii. Onboard Wi-Fi and infotainment.
iv. GPS-based passenger information system.
v. Modular toilets with bio-vacuum system.
vi. Improved centre couplers to lessen jerk impact.
vii. Electro-pneumatic brake system with brake discs mounted directly on wheel discs to reduce the braking distance.
viii.All coaches are AC chair-car type (executive class as well as second class) including the driving cab.
ix. Continuous window glasses for contemporary look.
x. The executive class will have rotating seats which can be aligned in the direction of travel.
xi. Modular luggage rack with glass bottom.
xii.New bogie design with fully suspended traction motors.
xiii. Roller blinds and diffused LED lighting.
xiv. Halogen-free rubber-on-rubber flooring.
xv. Space for wheelchair.
xvi. Accessible toilets for Person with Disabilities.
About Integral Coach Factory(ICF):
Integral Coach Factory is a manufacturer of rail coaches located in Chennai, Tamil Nadu, India. It was established in 1952, is owned and operated by the Indian Railways.
BHEL to partner Ukraine’s Zorya for overhaul of warship turbines
On July 6, 2018, Bharat Heavy Electricals Ltd (BHEL) is setting up a joint venture (JV) in India with the manufacturer, Zorya Mashproekt, to overhaul turbines in India.
i. The navy will soon have 34 warships driven by Zorya turbines, with four turbines per vessel, adding up to 136 in-service turbines.
ii. There will also be a stock of six-eight spare turbines. A turbine is overhauled after running 30,000 hours. This is currently a costly and time-consuming process since it involves sending the turbine back to Ukraine.
iii. A propulsion package of four Zorya turbines powers each of the following Indian Navy warships: 5 Rajput-class destroyers, 3 Delhi-class destroyers , 16 fast missile corvettes of the 1241RE class,6 Russian-built Talwar-class 1135.6 frigates and 4 Talwar-class frigates are being purchased.
iv. Basic repair and maintenance of Zorya turbines, though not overhaul, is already being done at the Marine Gas Turbine Overhaul Centre (MGTOC) at INS Eksila, in Visakhapatnam. Now the BHEL-Zorya JV will entirely indigenise maintenance and service support to Zorya turbines.
v. While BHEL already has overhaul Siemens and General Electric gas turbines, Zorya will expand our portfolio.
♦ Headquarters: New Delhi
♦ CEO: Atul Sobti.
♦ Founded : 1964.
MindSphere: cloud based OS developed by Infosys & Siemens PLM Software
On July 6, 2018, Infosys said that it has partnered with Siemens PLM Software to develop applications and services for the open cloud-based IoT operating system called MindSphere.
About the Partnership:
i. The partnership would help customers to use the power of data generated by their devices and improve competitiveness in the digital world.
ii. The initial focus will be on customers in the manufacturing, energy, utilities, healthcare, pharmaceutical, transportation and logistics industries.
iii. Data analytics will enhance efficiencies through capabilities like predictive maintenance and end-to-end factory visibility.
From Siemens end:
MindSphere is a Siemens operating system which connects industrial machinery and equipment to the digital world.
From Infosys’ end:
i. Infosys will offer end-to-end implementation services for Mindsphere, as well as post-implementation support .
ii. It will leverage its repository of Industry 4.0 accelerators and platform tools to quickly onboard customers onto the platform, thereby accelerating the value that customers reap from their assets.
♦ Headquarters: Bengaluru.
♦ CEO: Salil Parekh.
Siemens PLM Software
♦ Headquarters: Texas, USA.
♦ Founded : 2007.
♦ CEO: Tony Hemmelgarn