1. IndusInd Bank Launches 'Wrestle for Glory' to Support Female Wrestlers
Tags: Economy/Finance
IndusInd Bank has introduced the 'Wrestle for Glory' initiative, continuing its collaboration with the Inspire Institute of Sport (IIS) in Vijayanagar, Bellary.
An Overview of the News
The program aims to empower 50 talented female wrestlers from across India with fully-funded scholarships for coaching at IIS.
CSR Focus
Inclusivity: The program aligns with IndusInd Bank's CSR commitment to inclusivity and sporting excellence, supporting individuals from diverse backgrounds, including different genders, persons with disabilities, and underprivileged communities.
Comprehensive Support: Beneficiaries will have access to top-tier training facilities, expert coaching, sports science resources, cutting-edge equipment, nutritional support, and educational assistance.
'IndusInd For Sports' Initiative
Establishment: The 'Wrestle for Glory' program is part of the 'IndusInd For Sports' initiative, a non-banking sports vertical of the Bank founded in 2016.
Philosophy: The initiative emphasizes diversity, differentiation, and domination, aiming to excite, educate, and engage stakeholders through sports.
About IndusInd Bank
IndusInd Bank started in 1994, serving consumer and corporate customers.
It has around 39 million customers as of March 31, 2024.
Operates 2,984 branches and 2,956 ATMs across 157,000 villages in India.
Has representative offices in London, Dubai, and Abu Dhabi.
Focuses on technology-driven multi-channel delivery.
Clearing bank for BSE and NSE; settlement bank for NCDEX; empanelled banker for MCX.
Founder: S. P. Hinduja
Headquarters: Mumbai, Maharashtra, India
Key Executives:
Sumant Kathpalia (MD & CEO)
Arun Khurana (Executive Director & Deputy CEO)
Gobind Jain (CFO)
2. India's WPI Inflation Rate Rises to 3.36% in June 2024
Tags: Economy/Finance
India's WPI inflation rate rose to 3.36% in June 2024, according to data released by the Ministry of Commerce and Industry (MoCI).
An Overview of the News
This rate is provisional and represents an increase over June 2023.
The positive inflation rate is mainly due to rising prices in food articles, crude petroleum, natural gas, mineral oils, and other manufacturing sectors.
This marks the third consecutive month of significant sequential increases.
Consecutive Monthly Increases:
March 2024: 0.3%
April 2024: 1.2%
May 2024: 2.6%
June 2024: 3.36%
The WPI for June 2024 was compiled at a weighted response rate of 87.8%.
The WPI Food Index increased to 190.3 in June 2024, up from 185.7 in May 2024.
The annual rate of inflation (year-over-year) for the Food Index rose to 8.68% from 7.40%.
The month-over-month change in WPI for all commodities increased by 0.39% in June 2024 compared to May 2024.
Wholesale Price Index (WPI)
WPI tracks wholesale goods prices and reflects inflation.
India now uses the Consumer Price Index (CPI) for inflation measurement.
The U.S. reports the Producer Price Index (PPI) instead of WPI.
WPI affects stock and fixed price markets.
WPI is published by India’s Ministry of Commerce and Industry and focuses on prices in industry and manufacturing.
3. TechFini Receives NPCI Certification to Operate as UPI Provider
Tags: Economy/Finance
Mumbai-based fintech startup TechFini has been certified by the National Payments Corporation of India (NPCI).
An Overview of the News
This certification allows TechFini to operate as a Unified Payments Interface (UPI)-based payment infrastructure provider for banks and fintech companies.
Validates TechFini's commitment to innovation in payments technology.
Provides authentication to customers and partners for secure, reliable, and trustworthy solutions.
Operational Capabilities Enabled:
UPI Issuer 2.0
UPI Acquirer 2.0
Issuer of Credit Line on UPI
Acquirer of Credit Line on UPI
Enabler of RuPay Credit Card on UPI
Enabler of Recurring Mandate on UPI
Unified Dispute and Issue Resolution (UDIR):
TechFini has been certified for UPI Unified Dispute and Issue Resolution (UDIR).
This certification positions TechFini as a key player in addressing dispute resolution complexities.
Collaborative Efforts:
With these certifications, TechFini will collaborate with financial institutions.
Aims to accelerate payments capabilities, product journey, and digital growth.
UPI Transaction Growth:
In June 2024, UPI-based transactions reached over Rs 20 lakh crore.
This represents a 49% year-on-year increase.
The transaction volume stood at 13,885.1 million.
4. India Releases First Tranche of USD 2.5 Million to UNRWA for Palestinian Refugees
Tags: Economy/Finance
On 16 July 2024, the Government of India (GOI) released the first tranche of USD 2.5 million to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA).
An Overview of the News
This payment is part of India’s annual contribution of USD 5 million for the fiscal year 2024-25.
India has contributed a total of USD 35 million to UNRWA’s core programs up to 2023-24.
These programs include education, healthcare, relief, and social services for Palestinian refugees.
At the UNRWA Pledging Conference 2024 in New York, the USA and India pledged to provide medicines as per UNRWA’s specific requests.
About UNRWA
UNRWA (United Nations Relief and Works Agency for Palestine Refugees in the Near East) supports Palestinian refugees' relief and development.
It covers Palestinians displaced during the Nakba, the 1948 Palestine War, and later conflicts, along with their descendants and legally adopted children.
As of 2019, over 5.6 million Palestinians are registered with UNRWA.
Formation - 8 December 1949
Headquarters - Amman (Jordan) Gaza, Palestine
Deputy commissioner-general - Leni Stenseth
5. BBVA Colombia and IFC Unveil World’s First USD 70 Million Biodiversity Bond
Tags: Economy/Finance
On July 12, 2024, Banco Bilbao Vizcaya Argentaria (BBVA) Colombia and the International Finance Corporation (IFC) launched the world's first biodiversity bond, totaling USD 70 million.
An Overview of the News
The first tranche of USD 15 million was issued by BBVA Colombia.
BBVA Colombia is the issuing bank, while IFC is the structurer, investor, and advisor for the bond.
Purpose and Funding
Projects Supported: The bond proceeds will finance projects in reforestation, forest regeneration, mangrove conservation, climate-smart agriculture, and wildlife habitat restoration.
IFC’s Involvement: IFC will assist in setting eligibility criteria, reporting indicators for biodiversity projects, and enhancing technical capabilities.
Previous Efforts
2023 Financing: In 2023, BBVA Colombia allocated over 214.8 billion Colombian pesos to biodiversity-related areas, including land use, ecotourism, smart agriculture, and marine habitat conservation.
Blue Bond: BBVA Colombia also issued a USD 50 million blue bond in 2023, with IFC as structurer and investor, to support freshwater and coastal ecosystem conservation.
Environmental and Social Impact
Climate Change: Climate change impacts on biodiversity and communities may create up to 10 million refugees in Colombia by 2050.
Colombia’s Biodiversity: Colombia is the most biodiverse country per square kilometer, hosting 14 percent of known plant species globally.
About International Finance Corporation (IFC)
Established: 20 July 1956
Affiliation: Member of the World Bank Group
Purpose: Provides financing for private enterprise investment in developing countries
Focus: Economic development and poverty reduction
Headquarters: Washington, D.C., United States
Managing Director: Makhtar Diop
6. BranchX Launches India’s First ONDC-Powered Personal Loan
Tags: Economy/Finance
BranchX, based in Bangalore, launches India’s first personal loan via ONDC (Open Network for Digital Commerce).
An Overview of the News
Aiming to enhance financial access for India’s 1.4 billion people, focusing on the middle class, young professionals, small business owners, and entrepreneurs.
Emphasizes a paperless and transparent loan process using ONDC framework for digital-first lending solutions.
Features of BranchX's Personal Loan Product:
Offers a seamless, paperless application and disbursement process, leveraging digital technologies.
Enhances affordability and financial literacy through voice AI Banking, providing educational resources and personalized financial guidance.
Plans to extend services with an SME lending product in the future.
Commitment to Financial Inclusion and Growth:
CEO Rajesh Johnny highlights BranchX's dedication to using technology for the benefit of underserved communities in India.
Focuses on driving economic growth by expanding access to credit and simplifying the lending process.
Already serves over 100,000 customers with a significant Gross Transaction Value (GTV) of $50 million.
Innovation in Financial Products:
Known for innovative financial products like the Raja Rani card for family expense management.
Offers micro-saving products linked to gold investments and jewelry, catering to diverse financial aspirations.
Dedicated to fostering an inclusive financial future through AI-driven solutions and leveraging digital infrastructure.
7. Tata Asset Management Launches India's First Tourism Index Fund
Tags: Economy/Finance
Tata Asset Management has launched India's first tourism index fund, named the Tata Nifty India Tourism Index Fund.
An Overview of the News
The fund aims to provide investors exposure to India's growing travel, tourism, and hospitality sectors by tracking the Nifty India Tourism Index (Total Returns Index).
Key Features:
Open for subscription from July 8 to July 19, 2024, with a potential re-opening on or before July 29, 2024.
Managed by Kapil Menon, the fund currently consists of 17 stocks from the Nifty 500 as of June 21, 2024.
It includes stocks from hotels and resorts (32%), airlines (19%), restaurants (19%), tour and travel services (16%), airports and services (10%), and luggage (3%).
Each stock is capped at 20%, ensuring diversification with a maximum of 30 stocks in the index.
Investment Strategy:
Focuses on minimizing tracking errors through strategic portfolio rebalancing.
Manages cash flows efficiently to maintain low cash levels and optimize deployment.
Investment Details:
Minimum investment of ₹5,000 during the NFO period, with subsequent investments in multiples of ₹1.
Exit load of 0.25% if redeemed within 15 days from the date of allotment, no entry load applicable.
Potential Returns: While aiming to match the performance of the Nifty India Tourism Index (TRI), the fund does not guarantee returns but aims to capitalize on the sector's growth potential.
8. EXIM Bank and Guyana Government Forge $2.5M Line of Credit Agreement
Tags: Economy/Finance
The Export-Import Bank of India (EXIM Bank) has entered into a $2.5 million Line of Credit agreement with the government of Guyana.
An Overview of the News
The agreement is for the installation of a solar photovoltaic power plant at the Cheddi Jagan International Airport in Guyana.
The deal was dated February 29, 2024.
The agreement under the Line of Credit became effective on June 24, 2024.
The last date for disbursements under the Line of Credit will be 48 months after the completion of the project.
Terms and Conditions
At least 75% of the goods, works, and services under the contract must be supplied by sellers from India.
The remaining 25% of the contract price may be procured from outside India.
About EXIM Bank:
Establishment: 1982
Headquarters: Mumbai, Maharashtra
Managing Director: Harsha Bangari
Co-operative Republic of Guyana
Capital: Georgetown
President: Irfaan Ali
Currency: Guyanese dollar (GYD)
9. Mirae Asset Launches India's First EV ETF
Tags: Economy/Finance
Mirae Asset Investment Managers (India) Pvt. Ltd has introduced India's first Exchange Traded Fund (ETF) focused on the Electric Vehicle (EV) market.
An Overview of the News
The ETF is named 'Mirae Asset Nifty EV and New Age Automotive ETF'.
Scheme Details:
The ETF is an open-ended scheme that replicates/tracks the NIFTY EV and New Age Automotive Total Return Index (TRI).
Aimed at providing investors with long-term capital appreciation.
Focuses on leading companies within the dynamic automotive sector and its value chain.
New Fund Offer (NFO):
Subscription Period: 24 June 2024 to 5 July 2024.
Re-opening Date: 11 July 2024 for continuous sale and repurchase.
Investment Details:
Minimum Initial Investment: Rs 5,000 during the NFO period.
Subsequent Investments: Allowed in multiples of Re 1.
Fund Management:
Managed by Fund Managers Ekta Gala and Akshay Udeshi.
Investment Strategy:
95-100% allocation in securities of the NIFTY EV and New Age Automotive Index.
0-5% allocation in money market instruments and debt/liquid schemes.
10. Appointment of Sandeep Batra as Chairman of ICICI Prudential Life
Tags: Economy/Finance Person in news
Sandeep Batra's appointment as Chairman of the Board of Directors of ICICI Prudential Life Insurance Company Limited has been approved by the Insurance Regulatory and Development Authority of India (IRDAI).
An Overview of the News
Batra will assume the role following the retirement of M S Ramachandran, who has reached the maximum age limit of 75 years. Batra's appointment will take effect from 30 June 2024.
About Sandeep Batra:
Long-Term Association: Batra has been associated with ICICI Group since 2000.
Executive Director at ICICI Bank: He has served as an Executive Director on the Board of ICICI Bank since 2018.
Board Memberships: Batra serves on the boards of ICICI Prudential Life Insurance, ICICI Lombard General Insurance, ICICI Prudential Asset Management, and ICICI Ventures.
Founding Member: He was one of the founding members of ICICI Prudential Life, holding the position of Chief Financial Officer (CFO) from September 2000 to 2006.
Previous Roles: Batra has held various positions including Executive Director and Board member from January 2014 to July 2018, and also served as a Group Compliance Officer at ICICI Bank.
About M. S. Ramachandran:
Non-Executive Independent Director: Ramachandran is the current Non-executive Independent Director and Chairman of the ICICI Prudential Board.
Corporate Leadership Experience: He has previously served as the Chairman of Indian Oil Corporation Limited, Chennai Petroleum Corporation Limited, among others.
Involvement in Governance: Ramachandran has been a Member of the Governing Council of India Habitat Centre.
Directorship at ICICI Bank: Additionally, he has served as a Director on the Board of ICICI Bank Limited.
About ICICI Prudential Life
It was established on July 20, 2000, as a public limited company according to the Companies Act of 1956.
Operations began in 2001 following its incorporation.
The company is jointly promoted by ICICI Bank Limited and Prudential Corporation Holdings Limited.
Mr. Anup Bagchi serves as the Managing Director and CEO.
The headquarters of ICICI Prudential Life is located in Mumbai, Maharashtra.
