Today's economic News : 4th July 2021
Over all summery of all economic news in short.
RBI ,MONEY CONTROL ,
t4unews: Compiled by Indian Bank employees' Union- affiliated to All India Bank employees Association.
The RBI today announced a framework for Payment Systems Operators with respect to outsourcing payment and settlement activities to other entities. As part of this, the RBI said PSOs cannot outsource core management functions including risk management and internal audit, compliance and decision-making functions such as determining compliance with KYC norms. Core management functions include management of payment system operations such as netting and settlement, transaction management including reconciliation, reporting and item processing, managing customer data, risk management, information technology and information security management etc.
The RBI has formalised the framework for payment companies outsourcing payment and settlement related activities to third party operators. The central bank’s fresh guidelines come at a time when India’s tech ecosystem has seen several high -profile cyber attacks such as those at Juspay, Upstox and Mobikwik over last year targeting customers’ payments data.
To provide easy access to investors to participate in public and rights issues by using various payment avenues, markets regulator SEBI, today, allowed payments banks to carry out the activities of investment bankers. Non- scheduled payments banks, which have prior approval from the RBI, will be eligible to act as a banker to an issue, SEBI said in a circular.
Various amendments to the Insolvency and Bankruptcy Code (IBC) may have altered its basic design, giving it a spin initially not thought of, a Parliamentary panel has said pointing to the low recovery rate and delays in resolution of cases. The report was tabled in Lok Sabha today.
IndusInd Bank has been empanelled by the RBI as an ‘Agency Bank’ to facilitate transactions related to Govt businesses. It can now be authorised to handle transactions related to Government businesses such as income tax, indirect taxes and goods and services tax payments, pension payments, work related to small savings schemes, collection of stamp duty charges, collection of stamp duty from citizens for franking of documents and also collection of State taxes such as professional tax, value- added tax and State excise duties.
Indian Overseas Bank continues its profitable growth journey as the bank reported a net profit of ₹327 Cr for the quarter ended June 30, 2021 against a net profit of ₹121 Cr in the year-ago quarter.
Bank of India reported a 15% year-on-year (YoY) decline in standalone net profit at ₹720 Cr in the first quarter ended June 30, 2021, due to a decline in net interest income and a rise in provisions towards bad & doubtful and standard assets. The bank had reported a standalone net profit of ₹844 Cr in the year- ago quarter. However, the net profit in the reporting quarter soared about 3 times vis-a-vis the fourth quarter’s ₹250 Cr.
Punjab National Bank expects its net profit for the current fiscal to be around ₹ 4,000- 6,000 Cr, S.S. Mallikarjuna Rao, MD & CEO, said today. This guidance is significant as the bank had closed fiscal 2020-21 with a net profit of ₹ 2,022 crore.
Punjab National Bank today said it never objected to the Rs 4,000-Cr PNB Housing Finance (PNBHFL)- Carlyle deal but only asked the subsidiary to follow the directions of the SEBI, the bank's MD&CEO, C S Mallikarjuna Rao, said in a media conference call.
Non-bank lenders would continue to see elevated levels of asset quality stress on their books, with the situation improving only in the next fiscal year, rating agency ICRA said today. The agency added that bad loans could rise by as much as 50-100 basis points in the current fiscal.
There is a need to devise a better formula for setting States’ borrowings and delink it from advance Gross State Domestic Product estimates, stated the SBI's economic research report, “Ecowrap”.
Union Bank of the Philippines has selected Infosys Finacle's cloud-based digital banking solution suite. Infosys Finacle is part of EdgeVerve Systems, a wholly owned subsidiary of IT services major Infosys Ltd. UBP will migrate from an on-premise deployment to the Finacle Digital Banking Solution Suite on Cloud, an Infosys statement said today.
The Union Minister of State for Consumer Affairs, Food and Public Distribution, Ashwini Kumar Choubey in a written reply to Lok Sabha today informed that as per the National Association of Software & Services Companies (NASSCOM), India's e-commerce market continues to grow at the rate of 5% with estimated revenue of $56.6 billion in the FY 2021 despite COVID-19 challenges.
Infosys surpassed the ₹7 lakh Cr mark in market capitalisation today, becoming the fourth Indian firm, behind Reliance Industries, TCS and HDFC Bank. Infosys closed at ₹1,656.75 on the BSE, up ₹25.40 or 1.56%.
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