Economy and Banking Current Affairs January 2017

India Rise Second Spot on Global Business Optimism Index

India improved its ranking by one spot in a global index of business optimism, with policy reforms and Goods and Services Tax (GST), on November 7, 2016.
According to the latest Grant Thornton International Business Report, India was ranked second on the optimism index during the third quarter, Indonesia took the top spot, with the Philippines coming in third. India was ranked third during the April-June period after being on top for two consecutive quarters.
The improvement in the optimism ranking in the recent past clearly reflects that the reform agenda of the government and its efforts on improving the climate for doing business are having an impact.

First S4A Debt Scheme Recast Approved

Construction major HCC’s Rs 5000 crore debt recast became the first 1 case to get approval from a high-level panel set-up under Reserve Bank of India’s new Scheme for Sustainable Structuring of Stressed Assets (S4A), on November 7, 2016.
The scheme, which was passed by an ICICI Bank-led joint lender forum in September, has been now approved by the RBI-mandated Overseeing Committee (OC).
Under this recast of HCC’s Rs 5000 crore debt, which has become the j fust successful resolution case under the RBI’s highly-ambitious S4A tool, 52% of the debt (nearly Rs 2600 crore) was found to be sustainable and would be serviced as per the original terms and conditions, including about interest rate and tenure.
Out of the remaining 48% (Rs 2400 crore), debt of Rs 1000 crore would j be converted into equity for the banks, which could eventually give them 25% stake in the company’s post-scheme equity capital.

Banking Current Affairs

Utkarsh Micro Finance got Final Nod to Set-up Small Finance Bank

Utkarsh Micro Finance has received final license from the Reserve Bank of India (RBI) to start operations as Small Finance Bank (SFB) on November 27, 2016. In October; 2015, Utkarsh Micro Finance had got the ‘in-principle’ approval to set-up SFB as per the guidelines issued by the RBI.
Incorporated in 2009, Utkarsh Micro Finance is among the top 10 micro finance company in the country with operations in 10 States. The new SFB will be named as Utkarsh Small Finance Bank Limited and is likely to start banking operations in early 2017.
The small finance bank will primarily undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.

Bharti Airtel Started First Payments Bank Service

Airtel Payments Bank Limited (Airtel Bank), a subsidiary of the country’s largest telecom operator Bharti Airtel, started its first pilot banking services in Rajasthan from November 23, 2016. Airtel started India’s first payments bank service in Rajasthan.
The banking service is aimed at testing systems and processes before a full scale pan Indian is launched. Airtel Bank got payments bank license from the RBI on April 11, 2016. It became the first entity in India to receive a payments bank license from the RBI.
Airtel Payments Bank will provide basic banking services along with the facility to open bank accounts at Airtel retail outlets. Customers in towns and villages of Rajasthan will now be able to open bank accounts at Airtel retail outlets, which will also act as Airtel banking centers and offer a wide range of basic, convenient banking services.

Airtel and Axiata Announced Completion of Merger in Bangladesh

Bharti Airtel announced the completion of the merger of its subsidiary Airtel Bangladesh with Robi Axiata, a unit of Axiata Group Berhad on Novemver 17, 2016.
Post the merger, Axiata will hold 68.7% stake in the combined entity, while Airtel will hold 25%. The remaining 6.3% stake will be held by NTT DoCoMo.
The combined entity will be the second largest mobile operator in Bangladesh with approx. 32.2 million customers and will operate under the Robi Axiata brand.

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