Top Banking Events of 1-7 April 2018

All Top Banking Events of 1st Week of April 2018

Posted on Apr 08, 2018 08:47 IST in Banking & Financial Awareness.

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RBI’s first bi-monthly monetary policy of 2018-19: Repo Rate unchanged, inflation forecast reduced

- The Reserve Bank of India (RBI) presented its first bi-monthly monetary policy of 2018-19 on 5 April 2018.

- It kept its policy repo rate unchanged at 6% while the reverse repo rate also remained unchanged at 5.75%. The 6% Repo Rate is the lowest since November 2010.

- Five of six members on the Monetary Policy Committee (MPC) voted for a hold, while one wanted a hike in the repo rate.

- RBI also lowered its April-September inflation projection to 4.7-5.1% from February’s 5.1-5.6%.

- It projected economic growth of 7.4% for 2018-19.

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Union Government changes its member on the board of ICICI Bank

- The Union Government replaced its nominee on ICICI Bank’s Board with effect from 5 April 2018. Lok Ranjan, a joint secretary at Department of Financial Services in the Finance Ministry, replaced the present Government nominee Amit Agrawal.

- This move came at a time when ICICI Bank is facing a controversy over alleged irregularities in grant of Rs. 3,250 crore loan to Videocon group.

- ICICI bank is the second largest private lender based on assets held.

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Jio Payments Bank starts operations

- Jio Payments Bank Ltd., a 70-30 joint venture between Ambani’s Reliance Industries Ltd. (RIL) and India’s largest lender State Bank of India (SBI), started its operations from 3 April 2018.

- RIL had first received in-principle approval from RBI to open a payments bank in August 2015, along with ten other applicants. It received the licence to operate in March 2017.

- Airtel Payments Bank, Aditya Birla Idea Payments Bank, Fino Payments Bank (backed by ICICI Bank) and Paytm Payments Bank are other payments banks currently operating.

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Avista Advisory comes to limelight

- “Avista Advisory”, a Singapore-based financial services company founded by ICICI Bank CEO and MD Chanda Kochhar’s husband Deepak Kochhar’s brother Rajiv Kochhar, came to news during April 2018. It was due to the reports that suggested that the entity (Avista Advisory) got the mandate to restructure foreign currency-denominated debt deals worth over $1.7 billion of seven companies over the last six years.

- All these companies were borrowers of ICICI Bank at the same time. In at least one of these deals, ICICI Bank was the lead bank of the lenders. This led to increase pressure on ICICI Bank in general and Chanda Kochhar in particular.

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Federal Bank ties with Fortune Wealth

- Federal Bank Ltd on 7 April 2018 tied up with Fortune Wealth Management Company Ltd. for providing Portfolio Investment Scheme (PIS) services to NRIs. PIS will enable NRI clients to invest in Indian equity markets on repatriable and non-repatriable basis.

- Fortune Wealth Management Company Ltd is one of the leading stock broking companies of South India.

- Federal Bank is a major private sector commercial bank headquartered at Aluva, Kochi, Kerala.

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