Banking - General Knowledge Questions

Correct Answer :   HDFC Bank

* India’s largest private lender HDFC Bank has overtaken State Bank of India (SBI) to earn top spot on the list of 2023 CRISIL’s Greenwich market share Leaders in Large Corporate Banking.

* For middle market corporates, HDFC Bank again topped the list of 2023 Leaders among local banks, and joined ICICI Bank as the year’s joint Greenwich Quality Leaders.

* Coalition Greenwich, a division of CRISIL, said many of the gains for large private sector and foreign banks came at the expense of the smaller banks, including some of India’s public sector banks.

* Even among the PSUs, the trend toward consolidation among the largest providers persisted, with SBI doing a better job than smaller banks at maintaining corporate relationships, it added.

* From 2021 to 2022, the share of Indian corporates working with one of the largest Indian private sector banks for overall corporate banking services increased to 38 per cent from 33 per cent.

* Over the same period, the share of corporates working with at least one large foreign bank climbed to 21 per cent from 18 per cent..

Source : Business Standard

Correct Answer :   Canara Bank

Public Sector Banks (PSBs) lent ₹4.12 trillion to state-backed corporations and public sector undertakings during 2022-23, down from ₹4.93 trillion during the previous year, finance minister Nirmala Sitharaman informed Parliament in a written response on Monday (24th July 2023).

Responding to questions by member of parliament, Velusamy P, Sitharaman informed the Lok Sabha that Canara Bank led the lending during 2022-23 to government backed entities at ₹187,813 crore during the recently concluded fiscal year, followed by Punjab National Bank ( ₹70,142.5 crore), State Bank of India ( ₹66,523.2 crore), Bank of India ( ₹25,147 crore), Bank of Baroda ( ₹15,706.8 crore), Union Bank of India ( ₹12,584.8 crore), Bank of Maharashtra ( ₹10,822.7 crore), Indian Bank ( ₹9,021 crore), Indian Overseas Bank ( ₹7,490 crore), Central Bank of India ( ₹3,949 crore), UCO Bank ( ₹2,939.4 crore), Punjab and Sind Bank ( ₹87.7 crore).

Meanwhile, the finance minister informed the Lok Sabha that public sector banks (PSBs) will have to take steps to adopt a focused approach on ease of service delivery and customer protection, follow regulatory norms, adopt robust risk management practices, focus on increasing rural, agriculture and sectoral credit to meet the Priority Sector Lending targets.

In a meeting held between the top PSB bank executives and top finance ministry officials, including the finance minister, on 6 July, it was decided that the sponsor banks of the Regional Rural Banks (RRBs) will take steps for technological upgradation of the RRBs to make them more efficient, Sitharaman said in a written reply.

“Performance under PM SVANidhi scheme, which was started to support COVID affected street vendors to restart their businesses, was noted, wherein 50.57 lakh loans have been disbursed, amounting to ₹6,482 crore, to 38.5 lakh street vendors as on 20.7.2023," she said.

Financial performance of PSBs was also noted which showed that all the major financial parameters have significantly improved, she said.

The PSBs have posted record aggregate net profit of ₹1.04 trillion in FY2022-23, she added.

Meanwhile, Sitharaman also informed parliament that The National Asset Reconstruction Company Ltd (NARCL) has as of 17 July acquired three borrower entities -- Jaypee Infratech Ltd, SSA International Ltd, Helios Photo Voltaic Ltd-- with an aggregate debt exposure of ₹21,349 crore.

“NARCL has further informed that these assets have been acquired only in the fourth quarter of the financial year (FY) 2022-23, and no recovery has been made in these accounts as of 17.7.2023," she said.

“Further, in respect of one more account, i.e. SPML Infra Ltd, letter of approval for debt acquisition of ₹1,994.90 crore has been issued by the lenders, and in-principal approval for the government guarantee has also been issued," she added.

Sitharaman further added that comprehensive measures have been taken by the government and the Reserve Bank of India (RBI) to recover the bad debts, due to which scheduled commercial banks have recovered a total amount of ₹ 7.16 trillion (provisional data for FY 2022-23) during the last five financial years..

Source : Mint

Correct Answer :   SBI

State Bank of India on Tuesday (18th July 2023) said it will set up a new trustee company as its wholly-owned subsidiary for managing the Corporate Debt Market Development Fund (CDMDF).

CDMDF will act as a backstop facility for purchase of investment grade corporate debt securities to instill confidence amongst the participants in the corporate bond market during times of stress and to generally enhance secondary market liquidity by creating a permanent institutional framework for activation in times of market stress.

SBI Funds Management Ltd (SBIFML), the asset management company (AMC) of SBI Mutual Fund, has been identified as the investment manager-cum-sponsor of CDMDF, India’s largest bank said in a regulatory filing. SBI has 62.53 per cent stake in SBIFML.

The setting up of the Fund, which will be classified as an Alternative Investment Fund (AIF) under the SEBI (Alternative Investment Funds) Regulations, 2012, is subject to receipt of all regulatory approvals.

CDMDF will be launched as a close ended scheme with an initial tenure of 15 years from the date of its initial closing (date on which contribution from all AMCs and specified schemes is received by CDMDF), according to SEBI.

Based on the requirements of the corporate bond market, the tenure can be extended with prior approval of the government in consultation with SEBI subsequent.

To begin with, units of CDMDF shall be subscribed by Asset Management Companies (AMCs) of Mutual Funds and “specified debt-oriented MF Schemes” (that is Open ended Debt oriented Mutual Fund schemes excluding Overnight funds and Gilt funds and including Conservative Hybrid funds).

SBI’s wholly-owned investment banking subsidiary SBI Capital Markets also has a wholly-owned subsidiary SBICAP TRUSTEE CO. Ltd (STCL).  

SBICAP TRUSTEE CO. LIMITED (STCL) STCL is a wholly-owned subsidiary of SBI Capital Markets Limited. STCL commenced the Security Trustee business on 1st August 2008..

Source : The Hindu Businessline

Correct Answer :   Punjab National Bank

State-owned Punjab National Bank (PNB) has announced the launch of UPI 123PAY, an IVR-based UPI solution. This offering is in line with the Digital Payment Vision 2025, aiming to propel India towards a cashless and cardless society.


Enhancing Transaction Experience with UPI :

The Unified Payments Interface (UPI) has revolutionized the way transactions are conducted in India, offering customers a seamless, secure, and real-time payment experience. However, until now, UPI services were primarily accessible through smartphones or USSD, relying on robust internet connectivity.


Overcoming Limitations for Greater Accessibility :

PNB recognized that this limitation prevented users without smartphones or residing in low internet connectivity zones from accessing UPI services. To address this issue, PNB has introduced UPI 123PAY, an IVR-based UPI solution.


Simplifying the UPI 123PAY Process :

Using UPI 123PAY is simple and involves the following steps:

Step 1: Dial the bank’s easy-to-remember IVR number, “9188-123-123.”

Step 2: Choose the beneficiary.

Step 3: Authenticate the transaction.


Multilingual Support for Enhanced Convenience :

UPI 123PAY will be multilingual, catering to customers in their preferred language. This feature aims to provide enhanced convenience and accessibility to a wider range of users.


Other Banks Embracing IVR Payments :

Apart from PNB, IDFC First Bank, City Union Bank, and NSDL Payments Bank have also implemented IVR-based payment solutions. This demonstrates the growing acceptance and adoption of IVR technology in the banking sector..

Source : Timesnownews

Correct Answer :   Punjab National Bank

State-owned Punjab National Bank (PNB) on Thursday (6th July 2023) announced the launch of a virtual branch, PNB Metaverse.



* It is a virtual branch of the bank, which will deliver a unique experience of banking to existing and new customers, who can now explore the bank's products and services such as bank deposits, retail/MSME loans, digital products, women/senior citizens, 'Do It Yourself' and government flagship schemes, PNB said in a statement.

* PNB has developed the Bank's Metaverse Branch, where its customers will get exclusive access to its virtual environment from the comfort of their home or office through their mobile phones and laptops, it said.

* In addition, the bank will offer an immersive 3D experience to the customers while performing traditional banking activities through their digital avatars, it said.

* In this new phase of the internet, which evolves from a disparate collection of sites and apps into a persistent 3D environment, where moving from work to a social platform is as simple as walking from the office to the movie theatre across the street, PNB managing director Atul Kumar Goel said.

* "With this technology, we are looking forward to increasing the customer engagement rate, improving the customer acquisition process, and providing hyper-personalized customer experience,” he added.

* Indians could have increased awareness about the metaverse, according to a recent report by YouGov, which claimed that out of over a thousand surveyed participants from India, 53 percent were familiar with the metaverse..

Source : Gadgets360

Correct Answer :   Bank of India

Bank of India, one of the largest public sector banks (PSBs) in the country, has become the first bank to officially roll out Mahila Samman Savings Certificate (MSSC) scheme.

* The scheme was announced by Union Finance Minister Nirmala Sitharaman during her Budget speech this year (2023). The scheme offers an interest rate of 7.5 per cent per annum, compounded quarterly.

* Individual girls or women can open an account under the Mahila Samman Savings Certificate sheme or a guardian can open an account on behalf of a minor girl.

* The account will mature after two years from the date of opening. Accounts under this scheme can be opened until March 31, 2025.

* According to a statement by the bank, while the minimum investment is Rs 1,000, any sum in multiples of Rs 100 can be deposited, up to a maximum limit of Rs 2 lakh.

* Individuals can open multiple accounts with a gap of three months between each account, subject to the overall investment cap of Rs 2 lakh, per the statement.

* Account closure can be requested by the customer in case of emergencies or at their discretion, with a penalty of 2 per cent after six months from the date of account opening, and the applicable interest rate will be 5.5 per cent, the bank said.

* Account holders can also make partial withdrawals, up to 40 per cent of the eligible balance, after one year from the date of opening the account.

* Bank of India’s MD & CEO Rajneesh Karanatak further highlighted that Bank of India is the first bank to operationalise this scheme at all its branches..

Source : Business Standard

Correct Answer :   Indian Overseas Bank

Indian Overseas Bank (IOB) unveiled all new RuPay Select Debit card via tweet.

IOB said in the post that Rupay Select debit card will provide with “luxury, convenience, and security, all in one card.”

"Unleash the power of your spending with the IOB Rupay Select debit card. Experience luxury, convenience, and security, all in one card."https://t.co/HxjTfQj8tf#IndianOverseasBank #DFS #RBI #ATMcard #RupayCard #ATM pic.twitter.com/YEqx1bJGEH

— Indian Overseas Bank (@IOBIndia) July 3, 2023

The introduction of the RuPay Select debit card will offer users with gym memberships, free health check up, complimentary golf lessons, spa services, and lounge access in selected domestic and international airports.

Eligibility Criteria : One is required to have a savings bank account or a certificate of deposit (CD) with IOB, maintaining an average daily balance of ₹ one lakh.

Cash withdrawal limit is set to ₹50,000. Daily limit for usage in merchant establishments (PoS) is set at ₹ five lakh. An amount of up to ₹3,50,000 is set for daily usage in e-commerce platforms..

Source : Thehindubusinessline

Correct Answer :   Indian Bank

Public sector lender Indian Bank has unveiled new services under its digital transformation initiative -- Project WAVE -- the bank said on Sunday (2nd July 2023).

Accordingly, the city-headquartered bank in collaboration with National E-Governance Services Ltd, has introduced an electronic bank guarantee (e-BG) service to ease traditional paper-based processes.

This move will also reduce the turn-around time of the bank guarantee issuance and delivery to the beneficiary from an industry average of 3-4 working days to a few minutes, a bank statement said.

Besides, the facility would replace the need for physical stamp paper and physical signatures of customers by replacing them with digital stamping and e-signing making the entire process digital.

Indian Bank has launched a facility to avail pre-approved business loans, an end-to-end digital journey, for eligible individuals and proprietor firms to cater to their respective businesses.

"The newly launched digital vehicle loan product enables individual customers of the bank to get their dream vehicle with hassle-free loan processes. This facility would be available for loan value up to Rs 25 lakh" the bank said..

Source : Business Standard

Correct Answer :   State Bank of India

State Bank of India, on Saturday (1st July 2023), launched 34 Transaction Banking Hubs at 21 district centres across the country with an aim to provide quick and efficient Transaction Banking solutions to customers.

Dinesh Khara, the chairman of the SBI, inaugurated the hubs, on the occasion of the 68th foundation day of the bank.

As part of the transformational journey of Transaction Banking services and Current Account-related offerings, the bank's goal is to meet all customers' needs and provide comprehensive solutions for their transaction, payment, and collection requirements under one roof, read SBI press release.

The newly launched hubs will be staffed by product specialists who will also assist business customers with their other financial service needs by leveraging the 'Power of One' within the SBI Group by enabling seamless connectivity with different business verticals and subsidiary companies.

On the occasion, Chairman Khara acknowledged the successful turnaround by onboarding over 2000 Current Account (CA) customers on revamped CA variants. These variants offer attractive concessions on bundled Transaction Banking services..

Source : Business Standard

Correct Answer :   State Bank of India

The State Bank of India board has appointed Kameshwar Kodavanti as the new Chief Financial Officer (CFO), effective from July 1, 2023.

* He has replaced Charanjit Surinder Singh Attra, who has resigned from his post.

* He has an extensive career in banking, with over 31 years of experience at SBI, starting from August 1, 1991.

* He brings expertise in banking, forex, finance, and accounting to his new position.

* Kodavanti holds the qualification of a Chartered Accountant..

Source : Times Now News