Correct Answer : Option (D) - Bank Indonesia (BI)

The Reserve Bank of India (RBI) and the Bank Indonesia (BI) signed a Memorandum of Understanding (MoU) in Mumbai on Thursday (7th Mar 2024) for establishing a framework to promote the use of local currencies viz. the Indian Rupee (INR) and the Indonesian Rupiah (IDR) for cross-border transactions. The MoU was signed by the Governor of Reserve Bank of India Mr. Shaktikanta Das and the Governor of Bank Indonesia Mr. Perry Warjiyo. This collaboration marks a key milestone in strengthening bilateral cooperation between RBI and BI.

In a press release issued on Thursday (7th Mar 2024), the RBI said the MoU on establishing a framework for cooperation in the area of cross-border transactions in local currencies between India and Indonesia, aims to promote the use of INR and IDR bilaterally.

It said this will eventually contribute to promoting trade between India and Indonesia as well as deepen financial integration and strengthen the long historical, cultural and economic relations between India and Indonesia.

The RBI said the MoU covers all current account transactions, permissible capital account transactions and any other economic and financial transactions as agreed upon by both countries.

It added that this framework would enable exporters and importers to invoice and pay in their respective domestic currencies, which in turn would enable the development of an INR-IDR foreign exchange market. The use of local currencies would optimise costs and settlement time for transactions..

Source : AIR

Correct Answer : Option (B) - South Indian Bank

South Indian Bank has clinched the esteemed title of Best Technology Bank of the Year Award at the 19th IBA Annual Banking Technology Conference, Expo, & Citations.

The bank’s remarkable achievements were acknowledged with a total of six prestigious awards, including three wins, one runner-up position, and two special mentions.

Awards Ceremony Highlights

Recipient : PR Seshadri, MD & CEO of South Indian Bank
Presented by : T Rabi Sankar, Deputy Governor of the Reserve Bank of India
Venue : Mumbai
Organizer : Indian Banks’ Association (IBA)

Significance of IBA Annual Banking Technology Conference

Purpose : Acknowledge organizations driving transformative changes through digital solutions.
Establishment : Inception in 2005.

South Indian Bank’s Achievements :

* Winner in Best Technology Bank of the Year Category
* Winner in Best Tech Talent and Organisation Category
* Winner in Best IT Risk and Management Category
* Runner-up Position in a Category
* Special Mentions in Two Categories

Correct Answer : Option (B) - Mio Oka

Asian Development Bank (ADB) on Monday (5th Feb 2024) appointed Mio Oka as its country director for India.

He will succeed Takeo Konishi who has been promoted as ADB Director General for South Asia at the Manila headquarters.

Oka will take charge of steering ADB operations in India and fostering relations with the government and the country's other development partners, ADB said in a statement.

She will lead the implementation of ADB's country partnership strategy, 2023 2027 that is designed to catalyse robust, climate-resilient, and inclusive private sector-led growth in India, it said.

This will be achieved through accelerated structural transformation and job creation, promotion of climate-resilient green growth, and enhanced social and economic inclusiveness, it added.

Since the start of its country operations in 1986, ADB has been a steadfast partner in supporting India's development goals and economic growth.

"ADB remains committed to bolster India's inclusive and green growth momentum through strategic investments to address critical challenges in infrastructure, human development, and climate risk vulnerability besides promoting private sector development," she said in a statement.

A Japanese national, Oka has almost 3 decades of professional experience, including over 18 years with ADB, where she has served in various capacities since joining as a project specialist in the Mekong Department in 2005, it said.

After serving as an advisor to the president for about 6 years, she held a managerial role as a director in the agriculture and natural resources sector and covered the South Asia region and Emerging Areas team for more than 7 years, it said.

Prior to her tenure at ADB, Oka worked with the Ministry of Foreign Affairs of Japan, Japan Bank for International Cooperation, and Japan International Cooperation Agency Bangladesh Office, it added.

India is currently ADB's fourth largest shareholder and one of its largest borrowers since 2010. In 2023, ADB committed $2.59 billion in sovereign lending to India in addition to $16.31 million in technical assistance and $5.25 million in grants under the sovereign portfolio.

The current India sovereign portfolio comprises 73 projects worth a total of $15.7 billion.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members -- 49 from the region..

Source : Business Standard

Correct Answer : Option (A) - Bank of Baroda

State-owned lender, Bank of Baroda on 25 January 2024 said it has raised Rs 5,000 crore through 10-year infrastructure bonds at a coupon rate of 7.57 percent, release said.

The Bank received a total of 128 bids amounting to Rs 14,950 crore against the total issue size of Rs 5,000 crore, the lender said in a release.

On 23 January 2024, Moneycontrol reported that Bank of Baroda will on 24 January 2024 issue infrastructure bonds worth Rs 5,000 crore maturing in 10 years.

The bonds have a base issue of Rs 1,000 crore, with retain oversubscription of Rs 4,000 crore as a greenshoe option. It is a provision in an underwriting agreement that grants the underwriter the right to sell investors more bonds than initially planned by the issuer if the demand for a security issue proves higher than expected.

The Bank said that the private placement of long-term infrastructure bonds received an overwhelming response, resulting in over-subscription which allowed it to price the issue at a competitive 7.57 percent.

The allotment of these bonds took place on 25th January 2024. The bonds are rated AAA with a Stable outlook by CRISIL and India Ratings.

On 25th January 2024, Mahindra & Mahindra Financial Services, Edel Finance Company, PCBL, Advaya Chemicals Industries, SMFG India Credit Company, L&T Finance Holdings, and Axis Finance raised funds..

Source : Money Control

Correct Answer : Option (A) - Karnataka Bank

Karnataka Bank  joined hands with NBFC Clix Capital to provide loans to the MSME sector.

* Karnataka Bank and Clix Capital have entered into a strategic digital co-lending partnership through Yubi Co.lend Platform. The partnership would focus on providing loans to the Indian MSME sector, which is one of the biggest contributors to India's GDP and employment growth, it said.

* The partnership combines Karnataka Bank’s low cost of funds, end-to-end digital capabilities and expertise to offer credit facilities to this segment along with Clix Capital's strong & easy lending tech platform and robust due diligence.

* The partnership aims to provide seamless financing solutions, conveniently and economically in a digital manner, thereby enabling both the partners to draw upon each other’s strengths to serve the unserved, it said.

* Earlier this month, the private lender and Satin Creditcare Network entered into a co-lending arrangement to provide financial support to Joint Liability Groups (JLG) of economically active women in both rural and semi-urban areas and to give impetus to the micro credit facilities segment of the country.

* The share touched a 52-week high of Rs 282 on January 15, 2024 and a 52-week low of Rs 124.10 on March 29, 2023. The stock is trading 5.09 percent below its 52-week high and 115.67 percent above its 52-week low..

Source : Money Control

Correct Answer : Option (C) - IndusInd Bank

IndusInd Bank announced (9th Jan 2024) the launch of the UPI-enabled ‘IndusInd Bank Samman RuPay Credit Card’, in collaboration with National Payments Corporation of India (NPCI). This credit card is specially designed for government sector employees with an aim to provide them with a range of exclusive benefits and enhance their overall banking experience.

* The IndusInd Bank Samman RuPay Credit Card is a testament to the Bank's commitment to innovation and customer-centricity. It uniquely blends the benefits of a traditional credit card with the advanced features of UPI, creating a seamless financial tool.

* The card offers a plethora of advantages, including cashback on diverse expenditures, complimentary movie tickets, no charges on cash advances, and waivers on surcharges for transactions done through IRCTC and fuel purchases. These features are not only designed to provide financial incentives but also to simplify and enrich the day-to-day transactional experience of government employees.

* Elaborating on this significant launch, Mr. Soumitra Sen, Head – Consumer Banking and Marketing, IndusInd Bank, said, “We are delighted to launch IndusInd Bank Samman RuPay Credit Card for all government sector employees with an aim to offer a superior value and convenience to them. We understand their requirements and have crafted this credit card to provide a seamless and rewarding experience, strengthening our presence within this segment and solidifying our position as their preferred banking partner."

* Speaking on the announcement, Ms. Praveena Rai, Chief Operating Officer, NPCI said, “We are pleased to partner with IndusInd Bank to introduce a novel solution on RuPay’s robust and expansive network, tailored to meet the specific needs and requirements of government sector employees.

* This significant collaboration reflects our commitment to providing user-friendly and cutting-edge payment experiences to all consumer segments. Moreover, linking of RuPay Credit Cards with UPI opens a multitude of convenient payment options for cardholders.

* The benefits attached to this card are designed to enhance the payment experience through UPI on credit card while providing the users with a rewarding credit card experience..

Source : Indusind

Correct Answer : Option (D) - $1 Billion

State Bank of India (SBI) on Wednesday (3rd Jan 2024) said it has raised USD 1 billion or (about Rs 8,300 crore) to cater to the domestic ESG financing market.

* The bank has concluded the issuance of USD 1 billion (USD 750 million and green shoe of USD 250 million) through Syndicated Social Loan, SBI said in a regulatory filing.

* The loan book was closed on January 2, 2024, it said.

* Last year too, the country's largest lender had raised USD 1 billion syndicated social loan.

* The fund raised would would cater to domestic ESG (Environmental, Social and Governance) financing market.

* The funds were raised through two tenures: a three-year and a five-year loan. These funds were raised at 80 basis points and 100 basis points over the secured overnight financing rate (SOFR), respectively.

* SOFR is a benchmark rate for dollar-denominated derivatives and loans, which replaced the London Interbank Offered Rate or Libor.

* During the second quarter ended September 30, 2023, the bank reported an 8 per cent increase in the net profit to Rs 14,330 crore.

* The net interest income (NII) of the State Bank of India jumped 12.3 per cent to Rs 39,500 crore compared to the same period last year.

* From an asset quality perspective, its gross non-performing assets ratio was at 2.55 per cent as of September 30, improving from 3.52 per cent in the year-ago period and 2.76 per cent in the first quarter of the current fiscal..

Source : Business Standard

Correct Answer : Option (B) - Bank of Baroda

* Shares of public sector bank (PSB) Bank of Baroda (BoB) were locked in at over three per cent upper circuit to hit its fresh 52-week high mark of ₹233.75 apiece on the BSE after the bank invited buyers to sell stake in its New Zealand arm on Wednesday, December 27, 2023.

* The country's second-largest PSB said in a newspaper advertisement, "Request for proposal for selection of investment banker for sale/disinvestment of Bank of Baroda's entire 100 percent stake in Bank of Baroda (New Zealand )." The bank has set the deadline for submission of the proposal at 2:00 pm on January 24.

* "All liabilities of Bank of Baroda (New Zealand) Ltd are guaranteed by its parent bank," said the bank. "Any private/ public limited company/ LLP/ Firm across the globe can participate in the tender process," said the statement.

* According to the lender, Bank of Baroda (New Zealand) is a wholly owned subsidiary of Bank of Baroda. Bank of Baroda has 93 overseas branches or offices across 17 countries 8,200 domestic branches, of which 4,942 rural and semi-urban.

* According to stock market experts, Bank of Baroda board has declared to generate fund to the tune of ₹2500 crore via Basel III bonds. BoB shares hit a nine-year high mark earlier this month and the bond was the major reason behind the rally. They said that a bank issues such long-term maturity bonds when they see credit growth.

* The PSB has hit back-to-back 52 week highs this month continuing the rally that picked up in early 2023. Experts added that BoB is a 'portfolio stock' and one should keep this stock for at least one to two years..

Source : Mint

Correct Answer : Option (D) - HDFC bank

Private sector HDFC Bank on Wednesday (20th Dec 2023) said it has raised Rs 7,425 crore via non-convertible bonds for funding infrastructure and affordable housing projects.

* The bank issued and allotted on Wednesday (20th Dec 2023) on a private placement basis 7.71 per cent unsecured, redeemable, long-term, fully paid up, non-convertible bonds in the nature of debentures, HDFC Bank said in a regulatory filing.

* As many as 7,42,500 bonds of face value Rs 1,00,000 each were issued to raise Rs 7,425 crore for funding infrastructure and affordable housing projects, it said.

* The bank issued 7,42,500 bonds of face value Rs 1 lakh each, it said..

Source : Business Standard

Correct Answer : Option (A) - 6.5%

* The Reserve Bank of India (RBI) has kept the policy repo rate unchanged at 6.5 per cent in its monetary review meeting. This is for the fifth time in a row that the MPC has maintained the status quo. Briefing about the Bi-Monthly Monetary Policy in Mumbai this morning, RBI governor Shakitkanta Das said that the Monitory Policy Committee, MPC's has unanimously decided to keep key rates unchanged.

* Mr Das added that consequently, the Standing Deposit Facility rate remains at 6.25 percent and the Marginal Standing Facility (MSF) rate and the Bank Rate at 6.75 percent. Attributing the declining inflation as reason behind maintain status quo the policy stance, the RBI Governor informed that, real GDP growth projection for the current year 2023-24 has been revised from earlier 6.5 per cent to 7 percent. Real GDP growth for Quarter one of 2024-25 is projected at 6.7 per cent, for Quarter 2 at 6.5 per cent and for Quarter 3 at 6.4 per cent. He added that the risks are evenly balanced.

* The RBI Governor also said that the central bank has proposed to hike the limit of UPI transactions in hospitals and educational institutions from one lakh rupees to 5 lakhs.

* The RBI Governor highlighted that while the global economy is showing signs of slowdown, the Indian economy presents a picture of resilience and momentum. He said that the real gross domestic product (GDP) growth for Q2 of the current financial year has exceeded all forecasts.

* Shaktikanta Das further said that the fundamentals of the Indian economy remain strong with banks and corporates showing healthier balance sheets; fiscal consolidation on course; external balance remaining eminently manageable; and forex reserves providing cushion against external shocks. He added that these factors, combined with consumer and business optimism, create congenial conditions for sustained growth of the Indian economy.

* The Governor also informed that the MPC has decided by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth..

Source : AIR