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FS Weekly Digest: 11th June

11th June (5th June – 11th June Coverage)

India

  1. Maharashtra government announced farm loan waiver scheme expecting to start with small & marginal farmers (fully agricultural dependent) and then expanding to all
  2. SBI in its document to investors prior to the QIP sale, highlighted demonetization impact as a risk factor stating ‘The demonetisation has and may continue to result in a slowing down of the Indian economy, which may adversely affect the Bank’s business’
  3. SBI announces new service charges which is expected to bolster the bank’s fee income (part of non-interest income and an increasing interest point for banks. Click here to know why?). Dove tailing with the ‘digital push’, more charges for ATM transaction, cash deposit & withdrawal (wallet).
  4. HDFC bank first informs customer on fees for UPI transaction only to roll back on NPCI prodding to the banks
  5. CBI carries out searches in Delhi NCR on Corporation Bank case. The case relates to the bank being defrauded of INR 9 crore by a slew of private firms/ players, who took loan using fraudulent documents
  6. In an apparent curtail of BBB (Banks Bureau Board), its power to appoint CEOs for PSU has been taken away & put with financial services secretary headed committee
  7. RBI initiates PCA (prompt corrective action) against Dena bank
  8. Former statistician, Pronab Sen’ believes that the current impact of note ban on GDP discounts the impact on informal sector/ un-organized sector
  9. Riding on the digital wave, Aviva Life insurance launched ‘online term plan’ named ‘i-Life-Total’
  10. Life Insurance industry saw nearly 18% growth in AUM in FY1617 reaching to INR 29.8 Cr.
  11. Non-life insurance companies’ premium jumps by 16% in May
  12. RBI in its latest monetary policy review kept key rates unchanged, as expected and continued to maintain ‘neutral’ stance as against the GOI insistence for ‘accommodative’. RBI DG also mentioned that they will be keeping a close watch on CPI and other inflation parameters for the next couple of months
  13. Card payments seems to be on the rise but average value per transaction is on the rise implying a gradual shift of customers to cash for small value transactions
  14. HDFC Life & Max Life merger received a 2nd jolt after IRDAI (Insurance regulator) refused to approve the merger in the current form
  15. The finance ministry is examining potential merger of 2 state run financial institutions; IIFL (India Infrastructure Finance Company) and IFCI (Industrial Finance Corporation of India) to create an institution big enough to be able to finance large infrastructure projects
  16. GOI is also looking at another PSU set of banks merger before FY18 end
  17. Trade body Assocham believes that the NPA is the biggest roadblock to economic recovery & growth for the country and urged RBI to be more flexible & pragmatic with norms
  18. Farm loan waiver to add to the fiscal deficit chaos and will brood moral hazard, as per RBI
  19. With SC ruling coming in, CBDT has made Aadhar mandatory for filing tax return from 1st July. This will be applicable for everyone who has Aadhar or is eligible for Aadhar

 

International

  1. UK government new data on inquiries from foreign government as part of investigations into money laundering cases have risen by 12% t0 163 last year indicating that there is an increasing prevalence among launders to leverage UK banks in the illicit money trail
  2. Fitch puts China’s Baidu on ‘negative watch list’ for its foray into financial services as it sees ‘rising risk’ from its shadow finance activities (wealth management products)
  3. The fight for data seems to be getting uglier. Recently the Chinese e-commerce giant Alibaba had a spat with a big delivery company, S.F. express. Prima facie it seems to be around the e-commerce player insatiable need of customer information
  4. Spanish bank Santander is to take over the smaller Spanish bank Banco Popular over liquidity concerns. The rescue seems to have the blessings of ECB as well

 

Source:

FS Daily Bytes, 5th to 10th June, News feed from 11th June

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