Economy and Banking Current Affairs August 2015 Part 5

IDFC got RBI Nod for Starting Banking Operations

• Infrastructure Development Financing Company (IDFC) got banking licence for undertaking banking business in the country from Reserve Bank of India (RBI) on July 23, 2015 under Section-22( 1)1″ of the Banking Regulation Act, 1949.
• IDFC Bank plans to start operation from October 1, 2015 with an initial loan book of around Rs 55000 crore. The bank proposes to start operations with 20 branches.
• It has almost completed the process of demerger of financial undertaking into IDFC Bank in accordance with RBI conditions.
• IDFC Bank was established as a public limited company to carry out business of banking pursuant to approval granted by the Reserve Bank in April,2014. With this IDFC became the second lender to enter the banking sector since 2004. Earlier, Yes Bank got banking license in 2004.

RBI Set-up Panel for Action Plan on Financial Inclusion

• The Reserve Bank of India (RBI) has set-up a 14-member panel headed by RBI Executive Director Deepak Mohanty on July 15, 2015 to work out a medium-term or five-year measurable action plan for financial inclusion i.e., to spread the reach of financial services to unbanked population.
• The panel will review the existing policy of financial inclusion, including supportive payment system and customer protection framework taking into account the recommendations made by various committees set-up earlier.
• The panel would also articulate the underlying policy and institutional framework, also covering consumer protection and financial literacy, as well as delivery mechanism of financial inclusion encompassing both households and small businesses, with particular emphasis on rural inclusion including group-based credit delivery mechanisms.

NABARD Planned Rs 30000 Crore Credit to Farmers for Irrigation

• National Bank for Agriculture and Rural Development (NABARD), the state run bank has set a target of providing Rs 30000 crore as credit to farmers for irrigation on July 12/2015 over the next three years. NABARD has already sanctioned Rs 1000 crore so far 2015.
• This credit will be in addition to the government’s recent announcement of providing Rs 50000 crore of loans to farmers over the next five years under the Pradhan Mantri ICrishi Sinchai Yojana (PMKSY).
• NABARD has been also accredited by the Green Climate Fund (GCF) as the national implementation agency and has been shortlisted only in South Asia for climate change at the rural level.

Hero MotoCorp will buy Assets of Bankrupt US Firm

• Hero MotoCorp, promoted by Munjal family and India’s largest two-wheeler manufacturer, declared on July 27, 2015 that it will acquire certain tangible and intangible assets of its US-based bankrupt partner Erik Buell Racing (EBR).
• In this regard, the two subsidiaries Hero Moto Corp Limited HMCL) Americas, Inc. and HMCL (NA), Inc. have entered into a ‘Settlement Agreement’ in the bankruptcy matter filed by Erik

Japan’s Nikkei bought Financial Times in $ 1.3 Billion Deal

• Nikkei, a Japanese media group agreed to buy the Financial Times (FT) from Britain’s Pearson in a $ 1.3 billion deal on July 23, 2015 that brings together two leading financial news operations from Europe and Asia.
• The Nikkei newspaper has a circulation of surpassing 3 million for its morning edition alone, enjoyed must-read reputation for financial and business news in Japan but has struggled to break out of its home market.
• Pearson, a 171 year old international media company who owned FT for nearly 60 years now sold it because it wanted to expand its education business.

Read Also – India and World Current Affairs August 2015 Part 3

Seven Indian Firms in World’s 500 Largest Companies

• Seven Indian companies are found a place among the world’s 500 largest companies, according to a list compiled by Fortune magazine as on July 22, 2015 where companies are ranked by total revenues for their respective fiscal year which has ended on or before March 31, 2015.
• Seven Indian companies are—Indian Oil (119th rank), Reliance Industries (158th rank), Tata Motors (254th rank), State Bank of India (260th rank), Bharat Petroleum (280th rank), Hindustan Petroleum (327th rank), and Oil and Natural Gas (449th rank).
• Fortune 500 Global Companies list is an annual ranking of the world’s wealthiest companies. It is compiled and published by the American business magazine Fortune and published globally by Time Inc.

10 Indian Firms among Forbes Asia Fabulous 50

• India claims the second-highest with 10 number of companies in 2015 on Forbes Asia Fabulous 50 list for the fifth year in a row.
• The list is released on the eve of its 10th Anniversary which is again dominated by China with 25 companies.
• India’s HDFC Bank, the Fab 50’s brightest star over the decade did not debut until 2006. Now, it has made to the list nine times, more than any other company. It is the second-largest bank in India’s private sector, after ICICI Bank.
• Other Indian companies on the list are Aurobindo Pharma, HCL Technologies, Lupin, Motherson Sumi Systems, Sun Pharmaceutical Industries, Tata Consultancy Services, Tata Motors, Tech Mahindra, and Titan.

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