Banking - General Knowledge Questions

Correct Answer :   HDFC Bank

Indian Railway Catering and Tourism Corporation Ltd (IRCTC) and HDFC Bank on Wednesday (1st March 2023) announced a partnership to launch a co-branded travel credit card.

* Known as the IRCTC HDFC Bank Credit Card, the co-branded card is in a single variant and is available on NPCI's Rupay network.

* This is the third tie-up of IRCTC after State Bank of India and Bank of Baroda.

* The card will provide exclusive benefits and maximum savings on bookings of train tickets booked through the IRCTC's ticketing website and through IRCTC Rail Connect app, HDFC Bank Group Head (Payments, Consumer Finance, Digital Banking and IT).

* Additionally, he said, IRCTC HDFC Bank Credit cardholders will enjoy an attractive joining bonus, discounts on bookings and access to the several executive lounges at railway stations across the country.

* Commenting on the association, IRCTC chairman and managing director "Rajni Hasija" said the co-branded card offers exclusive access to newly opened lounges available at most of the major railway stations..

Source : Business Standard

Correct Answer :   Citi Bank

Axis Bank has completed the acquisition of the consumer business of Citibank. India's third largest private sector bank has acquired the consumer businesses of Citibank in India.

The deal is part of a global business strategy by Citigroup to expand its operations in 13 countries, including India by the year 2021.

This was followed by the announcement of the decision to wind up retail banking operations. For this Axis Bank will pay up to Rs 12,325 crores to Citibank.

Correct Answer :   16.8%

Indian banks' credit growth doubled to 16.8% in the October-December quarter from a year earlier (2022-2023), data released by the Reserve Bank of India (RBI) on Monday (27th Feb 2023) showed.

* Bank credit had expanded by 8.4% in the quarter ended December 2021 and 17.2% in the quarter ended September 2022, as per the data.

* The growth in credit was led by bank branches in metropolitan centres, which accounted for nearly 60% of the total credit by banks, the RBI said. Urban, semi-urban and rural centres also recorded double-digit credit growth, it added.

* The growth of state-owned lenders' credit portfolios jumped, rising by 15.7% during 2022 as compared with 4.7% in 2021. Corresponding growth for private banks remained higher, however, at 19.1%, from 13.1% in 2021, as per the data.

* With India's economy on the mend following the COVID pandemic, credit offtake has improved and most banks now expect double-digit credit growth for the current financial year ending in March 2023.

* Deposit growth, on the other hand, has lagged credit growth for most banks, despite the RBI's rate-setting panel increasing the policy repo rate by 250 basis points since May last year.

* Banks' aggregate deposits increased by 10.3% year-on-year in the December quarter, up from 9.6% in the same quarter of the previous year, led by growth in term deposits, the data showed.

* Deposit mobilisation by state-run banks recorded an 8.8% year-on-year growth in the December quarter, lower than the 13.2% growth in deposits with private sector banks.

* Banks' credit-deposit (C-D) ratio rose further to 75.9% in the December quarter, up from 74.8% in the previous quarter and 71.6% in the quarter ended December 2021, according to the data..

Source : Business Standard

Correct Answer :   RBL Bank

Private lender RBL Bank on Monday (27th February 2023) announced it has entered into an agreement with Export-Import Bank of India (India Exim Bank) under Trade Assistance Programme (TAP) to support cross-border trade transactions.

Under trade assistance programme (TAP) for cross-border transactions, Export-Import Bank of India (India Exim Bank)

Aim : To facilitate India’s exports globally by providing credit enhancement to trade instruments.

* With Exim Bank’s support, RBL Bank will be able to gain footholds in nations, where trade lines are constrained, said RBL Bank in its filing.

* Through the programme, India Exim Bank will extend trade lines into the participating overseas banks/institutions in the emerging markets. The credit enhancements to trade instruments provided under TAP, will help mobilise trade finance and would increase support to Indian exporters.

* On February 27, 2023, in the presence of Ms. Harsha B. Bangari, Managing Director – India Exim Bank, and Mr. R. Subramaniakumar, MD & CEO, RBL Bank, the agreement was signed at India Exim Bank’s headquarters in Cuffe Parade.

RBL Bank Shares :

* RBL Bank Limited shares were last seen trading on the BSE for Rs. 152.40, down from the previous close of Rs. 153.15.

* A total of 352441 shares were moved in roughly 3021 trades during the day.

* The stock’s intraday high and low were Rs. 154.40 and 150.70, respectively. The daily net turnover was Rs. 53685938.00.

* The company’s stock ended the day on the BSE down 0.098 percent to 153...

Source : Mint

Correct Answer :   $2.5 Billions

* The World Bank on Friday (24th Feb 2023) announced $2.5 billion in additional grant financing from the U.S. Agency for International Development (USAID) to support Ukraine's budget and maintain essential services.

* The latest financing under the World Bank's Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE) project lifts the total to $20.6 billion and will support salaries in core government functions and sectors such as healthcare and education while allowing Kyiv to pay pensions and support internally displaced people.

* "One year into Russia’s invasion of Ukraine, the world continues to witness the horrific destruction inflicted on the country and its people," said World Bank Group President David Malpass.

* He said that $18.5 billion of the total funds mobilized had been disbursed, reaching more than 12 million Ukrainians.

* The additional funding was announced a day after U.S. Treasury Secretary Janet Yellen said that Washington was preparing an additional $10 billion in economic assistance for Ukraine and called on the International Monetary Fund to pull together a loan programme for Ukraine.

* Ukraine is seeking a $15 billion multi-year IMF package.

* The World Bank-facilitated financing under the PEACE program is set up to minimize the risk of corruption. The World Bank transmits funds to cover Ukraine’s expenditures a month after they are made, once it has verified that the money has gone to the government employees, pensioners and other recipients.

* The latest USAID funds will be transmitted to the government of Ukraine after the World Bank verifies eligible expenditures.

* The total of $20.6 billion in emergency financing comes from commitments and pledges from, the United States, Britain, the Netherlands, Spain, Norway, Germany, Canada, Switzerland, Sweden, Denmark, Austria, Finland, Ireland, Lithuania, Latvia, Iceland, Belgium, and Japan...

Source : Mint

Correct Answer :   Federal Bank

Federal Bank, a leading private sector bank in India, has inaugurated Thursday (23rd Feb 2023) a 100KWp on-grid solar power plant at its corporate office, Federal Towers in Aluva.

The solar plant was inaugurated by the Bank’s MD & CEO, Shyam Srinivasan, in the presence of other senior executives of the Bank.

Speaking at the inauguration, Shyam Srinivasan said, “We are delighted to inaugurate the solar power plant, which is a significant milestone in our sustainability journey. This initiative is in line with our commitment to reducing our carbon footprint and promoting clean energy. With this installation, we will be able to reduce emissions by 129 tCO2 every year.”

* Federal Bank has been committed to promoting renewable energy and reducing its carbon footprint.

* With the inauguration of this solar power plant, the total capacity of solar plant installations at Federal Bank has increased to 300KWp.

* The units being generated out of this powerplant will reduce the consumption of power by 20%.

* The Bank has also installed solar panels at several of its branches and offices across the country. The Bank is strengthening its Rishta with the environment with these initiatives

The event was attended by the Bank’s executives, including Venkatraman Venkateswaran, Group President & CFO, Ajith Kumar K K, President & CHRO, Damodaran C, SVP & Chief Risk Officer, and Hema Sivadasan, DVP & Head Corporate Services, who expressed their support for the Bank’s sustainability initiatives.

Correct Answer :   Karnataka Bank

Karnataka Bank and Paisalo Digital Ltd, a non-deposit-taking NBFC registered with the Reserve Bank of India, have entered into a co-lending arrangement to provide financial support to the small income segment and to give impetus to the micro and small enterprise segment of the country.

The arrangement will leverage Karnataka Bank’s low cost of funds and its end-to-end digital capabilities and Paisalo to help the sourcing, servicing and recovery of small-ticket priority sector loans.

* Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, said, Co-lending model is one of the innovative avenues of lending to priority sector.

* This tie-up shall create a dynamic synergy between the two sets of lenders — Paisalo Digital Ltd and Karnataka Bank.

* As per RBI’s co-lending norms, this arrangement will help us in extending credit to the priority sector and promoting financial inclusion by providing necessary financial support to micro-entrepreneurs.”

* Santanu Agarwal, Deputy Managing Director of Paisalo Digital Ltd, said, Paisalo sees a huge opportunity and is well positioned to capitalise on the ₹8-lakh crore market of small-ticket loans for its 365 million under-banked and under-serviced population.

* Karnataka Bank and Paisalo co-lending product is a big step towards Paisalo’s goal of creating the most competitive and seamless banking solution for India’s bottom of pyramid population..

Source  : The Hindu Businessline

Correct Answer :   HDFC Bank

HDFC Bank, a major private sector bank, and UAE-based Lulu Exchange have signed an MoU to strengthen cross-border payments between India and the Gulf Cooperation Council (GCC) region.

* In the first phase of the partnership, Lulu Exchange's expertise and regulatory framework would be utilised to launch a digital inward remittance service titled 'RemitNow2India'.

* It will allow UAE individuals resident to send money to any bank account in India via IMPS and NEFT through HDFC digital banking channels. a release issued by the bank on Tuesday (21st Feb 2023).

* The partnership will also look to strengthen the existing relationship between the two entities in India, where LuLu Financial Group operates LuLu Forex and the NBFC division LuLu Finserv.

* Arvind Vohra, Group Head of Retail Branch Banking in HDFC Bank, said the partnership will build on each other's strengths. "While HDFC Bank potentially gains access to remittances from Lulu Exchange's employees, customers and other stakeholders, Lulu Exchange can capitalise on a trusted name with a vast network"..

Source : Economic Times

Correct Answer :   State Bank of India

* A real-time payments system linkage was established between India and Singapore using the UPI platform, State Bank of India on Wednesday (22nd Feb 2023) announced a partnership with PayNow, the online payment system of the city state, for cross-border payments.

* The facility is offered through SBI's Bhim SBIPay mobile application and the linkage will allow fund transfers from India to Singapore through registered mobile numbers, and from Singapore to India using the UPI ID.

* The UPI-PayNow linkage is a significant milestone towards developing an infrastructure for cross-border payments between the two countries and the initiative closely aligns with the G20's priorities of driving faster, cheaper, and more transparent cross-border payments.

* The inward bilateral remittance between the two countries was around USD 949 million in 2021 according to the World Bank bilateral remittances matrix, the bank said.

* SBI chairman Dinesh Khara said the initiative will go a long way in boosting the digitisation initiatives, providing easy, seamless cross-border payment facility to users.

Source : India Times

Correct Answer :   Central Bank of India

Central Bank of India said that it has entered into a strategic co-lending partnership with Moneywise Financial Services Pvt Ltd (MFSPL) to offer micro, small, and medium-sized enterprises (MSMEs) Loans at competitive rates.

* The said loans would be subject to compliance with the applicable laws and guidelines issued by Reserve Bank of India (RBI).

* "The participation by both the entities in this co-lending arrangement will result in greater expansion of portfolio by Central Bank of India and Moneywise Financial Services, the public sector bank said in a statement.

* Moneywise Financial Services (MFSPL) is an RBI regulated non banking financial company focused on MSME Lending.

* MFSPL's AUM as on December 2022 stood approximately at Rs 800 crore.

* Under the arrangement, Moneywise Financial Services will originate and process MSME loan proposals under MSME Sector as per jointly formulated credit parameters and eligibility criteria and Central Bank of India will take into its books 80% of the MSME Loans under mutually agreed terms.

* Moneywise Financial Services will service the loan account throughout the life cycle of the loan.

* The co-lending arrangement is expected to help both the entities to expand their reach across India.

* Central Bank of India is engaged in providing banking and financial services with wide range of products and services to individuals, commercial enterprises, large corporates, public bodies and institutional customers...

Source : Business Standard