Current Affairs in the Month - April 2012

Current affairs of April 2012 to face an Interview or any competitive exams.

Current Affairs on Banks, Telecoms and Oil and Gas industry has been updated in this article.

Banks

Changes in the bank rate or interest of the banks. 

• Reduced the bank rates from 9.5% to 9% where Banks/financial institutions pay to the central bank on borrowed funds.

• Repo and Reverse repo benchmark rate reduced by .50%, from 8.5% to 8%, and reverse repo from 7.5% to 7%.

• CRR (Cash Reserve Ratio) – has been reduced from 5.5% to 4.75%. The objective/reason for reduction of CRR is to infuse more money in the economy. It has infused Rs 48,000 crore.

• On the latest move, RBI has made it mandatory to print the MICR and IFSE code on the passbook and statement of account of the customers.  IFSC code is a pre-requisite for National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) transactions.

• Saving Deposit rate is been deregulated.

Telecom

• Vodafone has won the case, where it has paid Rs.11,000 crore as tax for Income Tax (M&A) for buying out abroad firm Hutchison Whampoa Ltd's Indian mobile business in 2007. Supreme court has given an verdict favorable to Vodafone( earlier Bombay court's verdict was unfavorable) directing IT-department to return Rs.2500crores to Vodafone.

• Telecom Regulatory Authority of India (Trai) has made mandatory/compulsory to charge/bill only on per second basis ( introduced by Tata Docomo as its strategy to attract) to all prepaid and postpaid customers and allow the telecom player to increase the processing fee charge for Top up recharges(above Rs.20, from rs.2 to rs.3).

• Airtel is the first company in India to roll out 4G service.

• Samsung, South Korean firm the Market Leader in Smartphones segment posted its highest profits of $5.15 billion in this quarter, against the former leader Nokia, Finland based company has posted a huge loss of $1.2 bn (Jan-Mar).

-> Latest Facts and Figures of Banks and Economy 2012-13, for the latest Inflation rate, fiscal deficit rate and other deposit rate as on April 2012.

Oil and Gas

The Major Oil players in India are Hindustan Petroleum Corp Ltd (HPCL), Indian Oil Corp (IOC), and Bharat Petroleum Corp Ltd (BPCL). These companies has started threatening the government to increased the prices of petrol. 

Why?

Because, the current crude oil as on April 2012 is trading at $121.3 per barrel. Huge losses are being incurred/accrued in the books of these companies has they are selling the petrol below the market prices.

So currently Rs.8-Rs.10/- is the loss on per liter of petrol sold. and Rs.14 on diesel and of course a huge pie  on LPG gas Cylinder of Rs.570/each lpg cylinder.

Solution for Rise in Petrol Prices:

Now the States levied VAT or Sales tax, are ranging in between from 15 to 33 per cent (ie.,Rs.10-Rs.19/liter is being paid only as taxes), this has to be reduced so that the pressure will not be on the consumer by hiking the prices again. Goa has already implemented it, by removing the tax on petrol.

* Your feedback is appreciated. Other current affairs listed down here.

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Latest Facts and Figures of Banks and Economy 2012-13.

Here listed down all the major facts and figures of the Indian Banking rate and economy figures of current fiscal year as on April 2012-13.

	Percentage (%)
Bank Rate 2012	9%
Repo Rate	8%
Reverse Repo Rate	7%
Cash Reserve Ratio (CRR)	4.75%
Statutory Liquidity Ratio (SLR)	24%
Current Base Prime Lending Rate(BPLR):	10%-10.75%
Current Savings Bank Rate 2012:	4.0% (Deregulated)
Deposit Rate:	8.50-9.25%
Treasury Bill/Bond Rate (364-91 days)	8.1%-8.3%
Facts and figure as on 22th April 2012

(A 0.50%/50 basis points has been decreased as a part to control the inflation)

Economy Rates/Projected 2012-13
Current GDP Growth rate (current fiscal)	7.3%
Inflation (as on March end 2012-13)	6.5%
Current Fiscal Deficit Target rate	5.1%

The major changes has been made on CRR, Repo and Reverse Repo rate, along with savings bank rate deregulation. For more current affairs of banking sector check out here.

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Major Milestones, World as an single Economy - Financial.

Major Milestones, world as an economy - Financial categorized year wise. Here is the list of timeline starting from 1960 to 2012 the major milestone achieved by various countries on different things which revolution-ed the whole world. Here it goes! 

1960	Organisation of Petroleum Exporting Countries(OPEC) was formed in Baghdad. A oil barrel was traded for $2.90
1962	FTSE All-Share Index first calculated.
1963	First European Eurobonds issued in 1963 by Italian motorway network Autostrade
1964	Clive W J Grander and Michio Hatanka published Spectral Analysis for Economic Times Series
1967	UK Prime minister Harold Wilsondevalues the pound; Muriel Siebert becomes the first female member of the New York Stock Exchange
1968	Richard Brealey’s Principles of Corporate Finance
1969	Tokyo Stock Price Index inaugurated (TOPIX)
1970	Large oil field found in North Sea; first attempt at creating European Economic and Monetary Union(EMU); first Mortgage Based Security(MBS) brought to market in US by Ginnie Mae.
1972	On 14 November the Dow closes above 1000 for the first time in the history at 1003.16
1973	First Female members admitted to the London Stock Exchange
1975	OPEC oil embargo
1976	The first G7 Summit was held in San Juan, Puerto Rico, in 1976, with President Gerald Ford as host.
1977	TSX launched the world’s first Computer Assisted Trading Systems(CATS) and TSX 300 composite index, which became the benchmark index for equity market of Canada.
1977	Bear stearns underwrite the first new-issue junk bond in the decade.
1978	China turned into market oriented economy.
1981	Arthur Betz Laffer starts ‘Supply Side Economics’
1982	FTSE 100 first calculated
1986	Deregulation of London Stock Exchange (LSE)
1987	Black Monday stock market crash worldwide
1988	RJR Nabisco bought out for $25 billion
1989	The Nikkei 225 crash
1990	The Shanghai Stock Exchange founded;
1992	North American Free Trade Agreement (NAFTA) signed;
1995	World Trade Organisation (WTO) founded; Russian trading system established.
1997	New Labour government fived Bank of England independence from political control
1998	Dot.com bubble begin
1999	Dow touched 10000 mark; NASDAQ become world’s biggest stock market by dollar volume.
2001	London Stock Exchange (LSE) celebrated 200th anniversary
2002	Euro currency in 12 European states introduced.
2007	Subprime collateralized debt obligations (CDO) market  valued worth more than $45 trillion
2008	FTSE 100 suffers worst one-day drop in history as banking crisis; Lehman Brother collapsed.
2009	UK GDP contracts for six consecutive quarters for the first time since quarterly figures were first recorded in 1955.
2010	Ireland and Greece require economic bailout
2011	Portugal and Spain on the brink of EU bailout; the prices of crude oil is $112/barrel
2012	(estimated) Indian economy will grow faster than China’s in terms of GDP.

 Current affairs of history!

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Indian Current Affairs Q&A: June-July-August 2011

India National General knowledge/Current affairs questions and answers occurred in the month of June-July-August 2011 . Basically these kind of questions are expected in general quiz exams or even sometime in business quiz to check the general knowledge. 

National news General Knowledge question and answers:

The place where India is setting up a Gamma Ray Telescope is

Answer: Hanie (Leh)

The winner of Mauritius Open Badminton Championship is

Answer: Chetan Anand

Free and compulsory education will be extended up to

Answer: X class

The new mother child health care scheme launched on June 1, 2011 is called

The Janani Shishu Suraksha karyakram

The Indian American who recently won U.S. Spelling Bee competition is

Sukanya Roy

The new Finance Secretary of India is

Sunil Mitra

The new armed forces medical services chief is?

Answer: H.L. Kakria

The host of global biodiversity meet in 2012 is held at?

Answer: Hyderabad

The committee on comprehensive Review of National Small savings fund has suggested 4% interest on?

Answer: Post Office Savings Deposits.

The central government recently cleared 16 FDI proposals worth?

Answer: 923 crores.

Junior National Hockey championship is won by which team?

Answer: Punjab

Recently India commissioned its 

Answer: Fast Attack Craft(FAC) INS Kabra

NATGRID stands for

Answer: The National Intelligence Grid.

Iron Age burial site has been found in?

Answer: Tiruvannamali, Tamilnadu

The century longest lunar eclipse was occurred on

Answer:  June 16, 2011

The Whole collection of Quiz Question and Answers: Click Here

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Overview of Banking Sector - September.

Here updates will be done constantly, on recent happenings in the banking sector especially in India. In this post you can see the recent major changes/ initiative by the RBI or other banks in the month of August and September 2011.  

Its just an overview of the Banking industry/sector current affairs.

• The RBI has come up with new guidelines (eligibility criteria) for the new banking license. Here is the New Eligibility Criteria for New Bank License.

• RBI has tightened the finance companies norms by increasing the capital requirement to 15% from 12%.

• NBFC's new rules under consideration. Where only NBFC's with assets worth of Rs.1000 crore should be regulated, even if they are doing business with their own funds.  This step will ensure that only players who are serious remain. 

• Top 10 Non-Banking Financial Companies(NBFC's)

• Company Name	Assets ( In crores) apprx
  Shriram TransFi	24,786
  M&M Financial	12,165
  Sundaramfin	11,479
  Cholamandalam	9,017
  Shriram City	8,539
  Bajaj Finance	8,066
  SREI infra	7,842
  Manappuram Finance	7,577
  Magma Fincorp	5,130
  First Leasing	1,297

• RBI said to end the Pre-Payment
(paying the loan amount before the maturity) penalty charges on floating rate loans,(home or car loan).  The bank charge as high as 3% on outstanding loan amount as charges. As this will discourage the loan seeker to end up the loan debt burden, bank has taken this step. Already banks like Axis has initiated this move.

• The Major Micro Finance companies, Spandana Spoorthy Fianacial Services and Share MicroFin and Ashmitha Microfin plan to merger their businesses, thus creating a largest lender for small entrepreneurs. As of now only SKS  Microfinance is the only listed major player.

• The increasing inflation has forced the RBI Governer, Subba Rao to make another increase in the interest rates by 25basic points(0.25%) which cumulative a 12th increase in the last 18months which is about an increase of 3.25%. 

Previous Month:

BANKING SECTOR CURRENT AFFAIRS: APRIL - MAY 2011

BANKING SECTOR CURRENT AFFAIRS: JUNE - JULY 2011

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New Bank License Eligibility rules by RBI.

As the Reserve Bank of India has opened the new players to enter the banking sector, has given a hope for many private major players to enter the booming sector where the scope is very high for growth and huge potential as most of rural market is still untapped.


The draft guidelines are being issued with regular modification with cautions and conditions for the purpose of laying a strong rules and regulations. 


Few Eligibility criteria as per the new guidelines are.,

• Minimum paid up capital of Rs.500 crores,
• Should get listed within 2 years of time,
• Should setup at least 25% of their branches in rural unbanked areas (especially tier-III) 
• Be owned by a separate holding company that cannot borrow money to float the bank.
• Foreign holding in the bank has to be less than 49%,
• Operating company has to get its share in the company to 20% within 10years from start.

Finance companies has a chance to convert themselves into bank and even promoter groups with good credential(10 years record will be considered) in running their business can setup banks.


The Major companies who are in the race for new bank licenses are.,

Tatas, Anil Dhirubhai Ambani Group(ADAG), Power Finance Corporation(PFC), Aditya Birla Group, Bajaj Group, Larsen & Toubro (L&T), LIC Housing, Industrial Finance Corporation of India(IFCI), Religare, Srei, Mahindra and Mahindra(M&M).

BANKING SECTOR CURRENT AFFAIRS: APRIL - MAY 2011

BANKING SECTOR CURRENT AFFAIRS: JUNE - JULY 2011
BANKING SECTOR CURRENT AFFAIRS: AUGUST - SEPTEMBER 2011

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Current Rates 2011

Due to Inflation rate still high and in an uncomfortable level, RBI has keep on increasing the bank rate to curb the inflation rate(almost 10 times in the last 15months). These are present rates in 2011.  


Bank Rate 2011: 6.0%
Repo Rate: 7.50% + 0.50% + 0.25% + 0.25% (as on 16/December/2011) = 8.25%
Reverse Repo Rate: 6.5% + 0.50% + 0.25%(16/December/2011) = 7.50%
(A further 0.50%/50 basis points has been increased as a part to control the inflation)


Cash Reserve Ratio(CRR): 6.0%
Statutory Liquidity Ratio(SLR): 24%


Base Prime Lending Rate: 9.25%-10.25%
Current Savings Bank Rate 2011: 4.0% (Now its been Deregulated)
Deposit Rate: 8.25-9.10%


Current Money at Call Rate: 5.50%-7.70%


Current Treasury Bills Rate:
91 Days Treasury Bill: 8.302%
182 Days Treasury Bill: 8.182%
364 Days Treasury Bill: 8.436%

*The above figures of current Repo, Reverse Repo, Bank Rate, Call Rate, CRR & SLR are as on 16 December 2011.

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Recent New Initiatives by Banks - 2011 [Current Updates]

Here is an constant update of Current affairs of Banking sector in the year 2011.

Here you could find an continuous updates  of different bank initiatives, achievements, innovations, landmarks created by the banks in India over an period of time which can help you in updating your current affairs knowledge on Banks and Banking sector. 


Previously a post was made, where you could find updates of the Banks current affairs in the Month April -May 2011. Click Here for it.

SBI completes its 50 lakhs Aadhaar Enrolments(UIDAI) in the country making it the largest Non-Government Registrar.  This is been used by SBI to reach out the unbanked villages as per Bank's Financial Inclusion Plan(FIP). [FYI: Pratip Chaudhuri is the Current Chairman of SBI, who has replaced OP Bhatt].


Co-Branding of Banks: SBI(State Bank of India) and BoM(Bank of Maharastra) Joins Hand, and launched a new co-branded credit card product suite, under the SBI-BoM name for the BoM customers. 


Bank of India has launched its new product "Door Step Banking".

Canara Bank, launched its mobile banking product called "CANMobile".
Greater Bank annouced E-Lobby Services 24x7, a stategy of Innovation and Technology focus and achivement of ISO 9001:2008 certification.


Indian Overseas Bank(IOB), Oriental Bank of Commerce(OBC), Punjab National Bank(PNB), and Bank of Baroda(BoB) is awarded RBI Rajbhasha Awards.


Union Bank Wins ACI Excellence Award 2011 for their project Customer empowerment, and Canara Bank bags Export Excellence Award for outstanding contribution made to the export growth in Karnataka.

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