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FS Weekly Digest: 18th June

India

  1. Finance Minister asks PSU banks to study possibility of taking over a few of the smaller banks. However, one must wait for Niti Aayog report which is expected to set out the tone & tenure of the roadmap for the 2nd phase of banking consolidation
  2. SBI GI expected to get listed in next fiscal
  3. The GST rate for financial transaction is fixed at 18% which is 3% more than current rate of 15% implying a higher tax that individuals must fork out for every 100 INR transaction
  4. IRDAI takes over management of Sahara Life Insurance Company Ltd.
  5. IRDAI rejection of latest HDFC Life- Max Life proposal has dampened the stocks & is expected to impact valuation of the sector
  6. Armed with Sec 35AA/AB (new NPA ordinance), RBI has picked up 12 defaulters for insolvency proceedings, SBI & few others are also approaching NCLT for a few other ones.
  7. RBI places restriction on banking activities of CBI (Central Bank of India) due to worsening of NPA
  8. The Union cabinet has approved introduction of a bill in parliament which when passed will pave the way for setting up of the Resolution Corporation
  9. As per NPCI; Rupay credit card expected to be launched in a month
  10. A report by India Ratings, has warned of significant impact on micro lenders & small finance banks if the impact of demonetization stretches for long.
  11. Aadhar made mandatory for opening bank a/cs and transactions with value > 50,000 INR
  12. RBI puts Bank of Maharashtra under PCA. FY17 saw its breaching Level 2
  13. Insurance information bureau plans central database for insurance agents. This would help insurance companies to have a quick background check before hiring. This is akin to the CIBIL for retail consumers!
  14. RBI directs IDBI to start insolvency procedure for Lanco Infra

 

International:

  1. Germany’s top central banker, Bundesbank president, has warned of dangers from digital currencies
  2. 3 top bankers from US, Goldman Sachs, Citi and Barclays, are the latest to fall victim to email hoax
  3. The probable detainment of one of the biggest name in Chinese financial system, Wu Xiaohui (Chairman of Chinese insurance & financial giant Anbang) has created ripples in the market.
  4. A panel of experts at an event at the ongoing AIIB meet (Asian Infrastructure Investment Bank) opined that sovereign/ government must take the lead & drive the infrastructure development and multilateral development institution (e.g. AIIB, World Bank) can only aid.

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