Current Affairs search results for: "CANARA BANK"
By admin: Dec. 8, 2022

1. KV Shaji appointed as the new chairman of NABARD

Tags: Person in news

KV Shaji appointed as the new chairman of NABARD

K V Shaji has been named Chairman of the National Bank for Agriculture and Rural Development (NABARD) on 7 December. He formerly served as NABARD’s Deputy Managing Director (DMD) till May 21, 2020.

Important facts

  • Before joining NABARD, he worked in Canara Bank in various capacities for 26 years.

  • As his last assignment, he was in charge of Strategy, Planning and Business Development at the Corporate Office of Canara Bank.

  • He successfully handled the project of amalgamation of Syndicate Bank into Canara Bank.

  • He was earlier also the Chairman of India’s largest Regional Rural Bank, Kerala Gramin Bank.

  • He is a post graduate in Agriculture and holds a PGDM degree in Public Policy from the Indian Institute of Management (IIM), Ahmedabad.

About the NABARD

  • It is a development bank focussing primarily on the rural sector of the country. 

  • It is a statutory body established in 1982 under National Bank for Agriculture and Rural Development Act, 1981.

  • Established on the recommendations of Shivaraman Committee.

  • Headquarters - Mumbai


By admin: Nov. 22, 2022

2. RBI allows HDFC Bank and Canara Bank to open special Vostro rupee account for trade with Russia

Tags: Economy/Finance

"Vostro account" for trade in rupees with Russia.

Reserve Bank of India (RBI) has allowed India’s largest private sector bank HDFC Bank and the public sector bank Canara Bank to open a special "Vostro account" for trade in rupees with Russia.

Vostro is a type of a bank account where a bank holds an account on behalf of other banks in local currency. Normally here the other bank is a foreign bank.

In July 2022 RBI introduced a mechanism for international trade settlements in rupees, aiming to promote exports and facilitate imports.

This was done to promote trade and investment with Russia which was facing sanction from western countries over its invasion of Ukraine.

Russian energy major Gazprom has opened an account with UCO Bank while VTB Bank and SberBank have opened accounts with their own India-based branch offices.

HDFC Bank is the largest private sector bank in India with its headquarters in Mumbai.

Canara Bank is a Public sector bank with its headquarters in Bengaluru.

 

By admin: Nov. 19, 2022

3. Government extends the maximum tenure of MD and CEO of the Public Sector Banks to 10 Years

Tags: Economy/Finance

The Government of India has raised the maximum tenure of the managing director (MD) and chief executive officer (CEO) of Public Sector Banks (PSB) to 10 years from five years. However there is no change in the retirement age of 60 years.

According to the earlier rules, the MD or the executive director of a public sector undertaking bank was eligible for a maximum tenure of 5 years or until they reach 60, whichever was earlier.

These changes were notified by the government through the Nationalized Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2022.

The move will help the government retain talents, who rise through the ranks relatively quickly at state-run banks. It will also enable the PSBs to have relatively young leadership teams that will be in a better position to realise a longer-term vision.

However, the Central government retains the right to terminate the term of a whole-time director, including the managing director, any time before the expiry of their tenure, by giving them a notice of not less than three months in writing, or three months’ salary and allowances in lieu of the notice.

Public Sector Banks 

Banks owned by the Government of India are called Public Sector Banks. Currently there are 12 Public Sector Banks in India.

Public Sector Banks 

Headquarters 

State Bank of India 

Mumbai

Bank of India 

Mumbai

Central Bank of India

Mumbai

Union Bank of India

Mumbai

Bank of Maharashtra 

Mumbai

Indian Bank 

Chennai

Indian Overseas Bank 

Chennai

Punjab and Sindh Bank 

New  Delhi 

Punjab National Bank

New Delhi 

Bank of Baroda 

Vadodara

Canara Bank 

Bengaluru

UCO Bank 

Kolkata


By admin: Oct. 7, 2022

4. SEBI orders closure of Bengaluru based Brickwork credit rating agency

Tags: Economy/Finance

The capital market regulator Securities Exchange Board of India (SEBI) has cancelled the license of the Brickwork Ratings India Pvt Ltd and asked it wind up its operation within six months. In an order issued on 6 October 2022 SEBI has prohibited it from taking on any new business,

SEBI in its order said that the company has “failed to exercise proper skill, care and diligence while discharging duties as a credit rating agency”.

 In a joint investigation of Brickwork by RBI and SEBI several irregularities were found in the working of the company. 

Some of the violations alleged in the findings of the two probes were delay or failure in recognition of default of non-convertible debentures of entities like Bhushan Steel, Zee Entertainment Enterprises, Essel Corporate Resources and Diamond Power Infrastructure while failing to review the rating of firms like Great Eastern Energy Corporation and Gayatri Projects.  

Brickwork is one of the seven Sebi-registered credit rating agencies. The others are CRISIL, CARE, ICRA, Fitch, Infomerics Ratings and Acuité Ratings & Research.

Brickwork Ratings

It was set up in 2007 and Canara Bank was one of the promoters of Brickworks Ratings 

It’s Headquarters: Bengaluru, Karnataka

Managing Director: Vivek Kulkarni.

By admin: March 16, 2022

5. Farmers debt increased by 53% in the last 6 years

Tags: Economy/Finance

The Government of India has informed the Lok Sabha on 15 March 2022 that the farmers’ debts in the country have increased by 53% over the past six years.

In 2015-16 the total debt of the farmers to the scheduled commercial banks was Rs 12 Lakh crores which jumped to Rs 18.4 lakh crore in 2020-21.

  • The number of such loan accounts increased from 6.9 crore to more than 10 crore.

  • The growth of farmers’ debt burden is highest in Maharashtra, an increase of  116% in the outstanding amounts due over the six-year period. The state also has the highest agricultural loan  in the country with a total loan amount of Rs 5.5. Lakh crore. The State also consistently has the largest number of farmer suicides, as recorded by the National Crime Records Bureau.

  • Other States which saw significant increase in farmers’ debt burden include Odisha (76%), Tamil Nadu (68%), Andhra Pradesh (65%) and Gujarat (64%). 

  • The state which saw the highest  drop in the farmer debt was Karnataka, posting a 37% drop.

Concept Clearing 

Scheduled Commercial Banks 

Scheduled banks are those banks in India which are included in the second schedule of the Reserve Bank of India act 1934. These banks are all allowed to participate in the clearing house. They can participate in government business (buying and selling of government securities etc). They have to maintain Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) etc.

Commercial means these banks work for profit and earning profit is their main aim.

Which type of banks comes under the Scheduled Commercial Bank category in India? 

Public sector banks ; Banks in which the government of India holds 51% or more equity shares are called public sector banks. for e.g SBI, BOB, Canara Bank, PNB etc.

Private Sector Banks : Banks in which the non-government person (private persons)holds 51% or more equity shares are called public sector banks. for e.g HDFC Bank, ICICI bank, Yes bank, IDBI bank, Kotak Mahindra, Karnataka bank etc.

Foreign Banks : Banks in which foreigners hold 51% or more equity shares in the banks. For e.g  Citibank, HSBC bank, Standard Chartered Banks etc.

By admin: Dec. 17, 2021

6. PSU Banks go on 2-days strike

Tags: Economics/Business

Bank unions under the United Forum of Bank Unions (UFBU) have declared a nationwide strike on December 16 and 17 against the proposed privatisation of two public sector banks (PSBs).

Key Highlights:

  • The Public sector bank unions went on strike to protest against privatisation of banks and demand that the government withdraw the Banking Laws (Amendment) Bill, 2021.The Banking Laws (Amendment) Bill, 2021 will enable the privatisation of the two public sector banks in India . The bill has not been introduced in the Parliament.NITI Aayog has shortlisted Indian Overseas Bank and Central Bank of India for the proposed privatisation of the public sector banks.The strike has been called by the United Forum of Bank Unions (UFBU), an umbrella body of nine unions, including the All India Bank Officers' Confederation (AIBOC), All India Bank Employees Association (AIBEA) and National Organisation of Bank Workers (NOBW).

Public Sector Banks in Indi

Public sector banks are the banks where majority stakes (51% or more) are held by the Government of India.

Currently, India has 12 Public sector banks

List of Public sector banks:

  • Punjab National Bank
  • Bank of Baroda
  • Indian Bank
  • State Bank of India
  • Canara Bank
  • Union Bank of India
  • UCO Bank
  • Indian Overseas Bank
  • Central Bank of India
  • Punjab and Sind Bank
  • Bank of Maharashtra
  • Bank of India