1. Appointment of Pradeep Kumar Sinha as Non-Executive Part-time Chairman of ICICI Bank Limited
Tags: Economy/Finance Person in news
Pradeep Kumar Sinha appointed to succeed Girish Chandra Chaturvedi as the Non-Executive Part-time Chairman of ICICI Bank Limited upon Chaturvedi's retirement on June 30, 2024.
An Overview of the News
Sinha to assume the position from July 1, 2024, following Reserve Bank of India (RBI) approval, for a term of three years.
Sinha approved as an Additional Independent Director by ICICI Bank's Board of Directors for a five-year term (2024 to 2029) during the meeting held from February 15-17, 2024.
Background of Pradeep Kumar Sinha
Sinha, a 1977 batch Indian Administrative Service (IAS) officer from Uttar Pradesh (UP) Cadre, brings extensive administrative experience to the role.
Held Government Nominee Director positions in major public Sector Undertakings (PSUs) including ONGC, IOCL, HPCL, BPCL, and GAIL.
Served as India's Cabinet Secretary from 2015 to 2019, demonstrating leadership at the highest levels of government.
From 2019 to 2021, Sinha served as a Principal Advisor to Prime Minister Narendra Modi, contributing to strategic decision-making.
Additionally, Sinha served as an Additional Independent Director in Bharti Airtel Limited from 2022 to May 14, 2024, bringing corporate governance insights to his roles.
About ICICI Bank Limited
Established:- 1994
MD & CEO:- Sandeep Bakhshi
Headquarters:- Mumbai, Maharashtra
Tagline:- Hum Hai Na, Khayal Apka
2. Airbus and SIDBI partner to promote helicopter financing in India
Tags: Economy/Finance
Airbus Helicopters and Small Industries Development Bank of India (SIDBI) have entered into a Memorandum of Understanding (MoU) aimed at financing helicopter purchases in India.
An Overview of the News
The MoU entails Airbus Helicopters and SIDBI jointly identifying potential civil helicopter operators in India interested in financing solutions for purchasing helicopters.
Airbus will contribute technical expertise and knowledge of the helicopter industry, while SIDBI will evaluate prospects and provide financing exclusively for Airbus.
Rahul Priyadarshi, Chief General Manager at SIDBI, views this collaboration as a new avenue for financing MSMEs in the helicopter segment, marking SIDBI's entry into helicopter financing.
Sunny Guglani, Head of Airbus Helicopters, India and South Asia, sees this partnership as a significant step towards making civil helicopters more accessible in India, emphasizing their role in nation-building.
This collaboration signifies SIDBI's expansion into helicopter financing, addressing the financial and developmental needs of India's rotary wing sector.
About SIDBI
It is the top authority governing the licensing and regulation of finance firms focused on MSMEs in India.
Chairman & Managing Director- Sivasubramanian Ramann
Formed - 2 April 1990
Headquarters - Lucknow, Uttar Pradesh
3. RBI Lifts Restrictions on Bank of Baroda's 'BoB World' App
Tags: Economy/Finance
The Reserve Bank of India (RBI) has removed restrictions on Bank of Baroda's (BoB) mobile application "BoB World" with immediate effect.
An Overview of the News
BoB is now permitted to onboard customers through the BoB World application, adhering to relevant guidelines and existing laws/regulations.
In October 2023, the RBI, utilizing its authority under Section 35A of the Banking Regulation Act, 1949, instructed BoB to halt the addition of customers through its "BoB World" mobile application due to specific supervisory concerns.
BoB World App:
BoB initiated its mobile banking application pilot in 2011, known as Baroda M-Connect.
"BoB World," a cutting-edge mobile banking app, was introduced by BoB in September 2021.
The app provides over 220 services, encompassing approximately 90% of retail banking services.
It facilitates digital account opening and instant issuance of virtual debit cards, along with online loan applications and immediate disbursal for specific loan products.
About Bank of Baroda (BoB)
Established: 1908
Headquarters: Vadodara, Gujarat
Managing Director and CEO: Debdutt Chand
Tagline: "International Bank of India"
4. AGEL Secures 20-Year Agreement with Sri Lankan Government for Wind Power Stations
Tags: Economy/Finance
Adani Green Energy Limited (AGEL) has signed a Power Purchase Agreement (PPA) for 20 years with the Government of Sri Lanka.
An Overview of the News
Under the agreement, AGEL will receive compensation of 8.26 cents per kilowatt-hour (kWh).
The company will establish wind power stations in Mannar and Poonerin regions of Sri Lanka.
Important Considerations:
The Sri Lankan Government has formed a negotiation committee to assess the proposed wind power plant project by Adani Green Energy.
In February 2023, Adani Green Energy was granted approval to invest USD 442 million for the development of 484 MegaWatts (MW) wind power plants in Northern Sri Lanka.
About Sri Lanka
Legislative Capital - Sri Jayawardenepura Kotte
Judicial and Executive Capital - Colombo
President - Ranil Wickremesinghe
Currency - Sri Lankan Rupee (LKR)
5. 10 MDBs Unveil Global Collaborative Co-Financing Platform
Tags: Economy/Finance
During the 2024 IMF and World Bank Spring meetings in Washington D.C. on April 20th, 10 Multilateral Development Banks (MDBs) introduced the Global Collaborative Co-Financing platform.
An Overview of the News
The platform, consisting of a Co-Financing Portal and a Co-Financing Forum, aims to revolutionize the development finance sector.
Key Features and Significance:
Co-Financing Portal:
Hosted by the World Bank, this secure platform allows registered co-financiers to share project pipelines conveniently.
Co-Financing Forum:
Providing a space for diverse stakeholders, this forum facilitates discussions on co-financing opportunities, sharing of best practices, and addressing common challenges.
The platform's launch is expected to streamline processes, minimize administrative burdens, and reduce transaction costs.
It fosters collaboration, promotes transparency, and enhances the effectiveness and efficiency of MDBs and partner agencies in addressing global challenges.
6. BOI partners with IMGC for affordable housing mortgage guarantee
Tags: Economy/Finance
Bank of India (BoI), a public sector bank (PSB) in India, has partnered with India Mortgage Guarantee Corporation (IMGC) to introduce mortgage guarantee-backed home loan products targeting the affordable housing segment.
An Overview of the News
This collaboration extends to both salaried and self-employed individuals seeking home loans in the affordable housing category.
The IMGC guarantee serves to reduce the risk of default for the BOI, enabling the bank to extend more favorable loan terms to borrowers.
This agreement is strategically aimed at promoting financial inclusion and increasing access to home ownership opportunities across India.
By strengthening the loan delivery mechanism, the partnership helps increase credit flow to the affordable housing sector.
Leveraging IMGC's expertise in guarantees and BOI's extensive network of over 5,100 branches across the country, the partnership aims to offer home loan products to potential home owners with better flexibility and security.
About IMGC
IMGC is governed by the 2008 Mortgage Guarantee Company Guidelines of RBI.
Mahesh Mishra holds the post of Managing Director (MD) and Chief Executive Officer (CEO) in IMGC.
Established in 2012, IMGC is headquartered in Noida, Uttar Pradesh.
7. Deposits of senior citizens increased, government received tax of Rs 27,000 crore in FY 2024
Tags: Economy/Finance
Total deposits in senior citizen accounts are expected to increase by 143% to reach Rs 34.367 lakh crore by December 2023, compared to Rs 13.724 lakh crore in 2018.
An Overview of the News
Fixed deposit accounts of senior citizens increased by 81% to about 7.4 crore in December 2023 from 4.1 crore in 2018.
An estimated 7.3 crore accounts have balances of more than Rs 15 lakh, which attract 7.5% interest, resulting in a total interest of Rs 2.7 lakh crore in FY24, including Rs 2.57 lakh crore from bank deposits and senior citizens. This includes Rs 13,000 crore from the savings scheme.
The average amount of fixed deposit account per senior citizen increased by 39% to Rs 4.63 lakh by December 2023 from Rs 3.34 lakh in 2018.
The government collected around Rs 27,000 crore of tax from senior citizens on interest earned from fixed deposits in FY24, with the TDS limit raised to Rs 50,000.
Additional incentives, such as interest rate hike of 50 basis points and enhanced deposit insurance cover (increased from Rs 1 lakh to Rs 5 lakh with effect from February 4, 2020), have made bank deposits more attractive for senior citizens.
About SBI
Chairman: Dinesh Kumar Khara
Headquarters: Mumbai, Maharashtra
Established: July 1, 1955
Tagline: "Banker for every Indian"
8. Canara Bank introduces health care loans and savings accounts for women
Tags: Economy/Finance
Canara Bank launches health care loan 'Canara Heal' and savings account for women 'Canara Angel', launches technological advancements and digital SHG initiative.
An Overview of the News
Healthcare Loan Product: Canara Heal
Canara Bank introduces a new healthcare-focused loan product named Canara Heal.
Designed to cover the shortfall in hospitalization expenses, particularly aimed at settling healthcare insurance claims via Third Party Administrators (TPA) for self and dependents.
Savings Account for Women: Canara Angel
Canara Bank launched a specialized savings account tailored for women, dubbed Canara Angel.
Unique features include a Cancer Care policy, a pre-approved personal loan known as Canara ReadyCash, and an Online Loan against term deposit product called Canara MyMoney.
Collaborations and Partnerships
Canara Bank formalizes Memorandums of Understanding (MoUs) with MediAssist Healthcare Services Ltd and Bajaj Allianz General Insurance Company Ltd.
These partnerships aim to enhance healthcare accessibility and affordability for customers through the Canara Heal product.
Innovative Payment Solutions
Unveiling of 'Canara UPI 123PAY ASI', a user-friendly payment interface.
Introduction of 'Canara HRMS Mobile App for Staff', an HR management solution for the bank's employees.
Digital SHG Initiative
CEO of the Reserve Bank Innovation Hub, Rajesh Bansal, launched a Digital SHG initiative called Canara SHG e-MONEY.
Canara Bank becomes the pioneer in offering seamless doorstep digital services to Self-Help Groups (SHGs) in collaboration with RBIH.
The initiative aims to provide instant digital credit to customers' accounts.
9. PepsiCo India to Establish Rs 1266 Crore Flavor Plant in Ujjain
Tags: Economy/Finance
PepsiCo India announced a significant investment of Rs 1266 crore to set up a flavor manufacturing facility in Ujjain, Madhya Pradesh.
An Overview of the News
This investment is in line with the vision of Aatmanirbhar Bharat, reflecting PepsiCo India's commitment to domestic manufacturing. It will produce beverage flavors specifically designed for the Indian market.
Existing Facilities and Future Operations:
This will be PepsiCo India's second flavor manufacturing facility in the country, with the first one being located in Channo, Punjab.
Construction of the Ujjain plant is scheduled to begin in 2024, with operations expected to begin in the first quarter of 2026.
Collaboration with Madhya Pradesh Government:
Jagrut Kotecha, Chief Executive Officer, India and South Asia, PepsiCo, expressed his gratitude for the support of the Madhya Pradesh government, emphasizing the company's commitment to enhancing the socio-economic landscape of the region.
About PepsiCo
PepsiCo, Inc. is a global company headquartered in Harrison, New York.
It serves the food, snack and beverage industries.
PepsiCo handles the manufacturing, distribution and marketing of its products.
The company oversees all aspects of the food and beverage market.
CEO - Ramon Laguarta
CFO - Hugh F. Johnston
CIO - Seth Cohen
COO - Gregg Roden
10. LIC Named World's Strongest Insurance Brand
Tags: Economy/Finance
The latest Brand Finance Insurance 100 2024 report positions Life Insurance Corporation of India (LIC) as the world's most robust insurance brand, emphasizing its global reputation and reliability.
An Overview of the News
LIC maintains its top spot globally with a consistent brand value of USD 9.8 billion, solidifying its dominance in the insurance industry.
Cathay Life Insurance follows closely with a 9% increase in brand value to USD 4.9 billion, securing the second position.
NRMA Insurance ranks third, witnessing an impressive 82% rise in brand value to USD 1.3 billion.
Impressive Premium Collection of LIC
LIC India achieves a remarkable feat by recording the highest first-year premium collection of Rs 39,090 crore in FY23, showcasing its financial strength.
SBI Life Insurance and HDFC Life Insurance lead the private sector, with significant premium collections of Rs 15,197 crore and Rs 10,970 crore, respectively.
Market Performance and Share Price of LIC
LIC's shares reach an all-time high, reinforcing its position as India’s fifth most valuable listed company and highlighting its market dominance.
Global Dominance of Chinese Brands
Chinese insurance giants such as Ping An, China Life Insurance, and CPIC continue to lead global rankings, with Ping An witnessing a 4% rise in brand value to USD 33.6 billion.
Notable Growth in Brand Values
NRMA Insurance from Australia experiences a notable 82% increase in brand value to USD 1.3 billion, while Denmark’s Tryg witnesses a 66% rise to USD 1.6 billion, reflecting significant growth in brand value.
