02.03.2024 : Today’s Banking / Financial News at a Glance
🍒 Data sovereignty: SBI mulling to build its own domain-specific LLM : Pune, The country’s largest lender State Bank of India is mulling to build its own Large Language Model (LLM) to leverage the data it possesses, a senior official said on Friday. The bank has been using Artificial Intelligence (AI) for over seven years now, and wants to create a situation where it can co-exist with an open-source LLM, its Deputy Managing Director Nitin Chugh said speaking at the Asia Economic Dialogue event here. The project to build its own LLM is an ambitious one to be executed over the long-term, Chugh, who heads the digital banking and transformation efforts at SBI, said. – economic times.
🍒 Six institutional investors allotted more than 5% of equity shares offered in Union Bank’s ₹3,000 cr QIP issue : Morgan Stanley Asia (Singapore) Pte., Societe Generale, HDFC Life Insurance, BNP Paribas Financial Markets, SBI Life Insurance, and Sundaram Mutual Fund have been allotted more than 5 per cent of the equity shares offered in Union Bank of India’s ₹3,000 crore Qualified Institutional Placement (QIP) issue. The public sector bank allotted 22.11 crore equity shares of face value ₹10 each to eligible Qualified Institutional Buyers (QIBs) at the issue price of ₹135.65 per equity share (including a premium of ₹125.65). The issue price is at a 4.9937 per cent discount to the floor price of ₹142.78 per equity share. The issue opened on February 20, 2024 and closed on February 23, 2024. – Business Line.
🍒 RBI says more than 97% of 2,000-rupee notes returned since May 2023 : The Reserve Bank of India (RBI) announced on Friday that over 97% of India’s highest-denomination 2,000-rupee currency notes, which were withdrawn from circulation in May 2023, have been returned. The total value of 2,000 rupee banknotes in circulation, which stood at 3.56 lakh crore rupees as on May 19, 2023, when the withdrawal of India’s highest currency note was announced, has now decreased to 8,470 crore rupees as of February 29, 2024, the RBI said in a statement. “Thus, 97.62% of the ₹2000 banknotes in circulation as on May 19, 2023, has since been returned,” the central bank said. – Economic Times.
🍒 FIU-Ind imposes ₹5.49 cr penalty on Paytm Payment Bank : The Financial Intelligence Unit-India (FIU-IND) on Friday imposed a penalty of ₹5.49 crore on beleaguered Paytm Payments Bank Ltd with reference to violations of its obligations under the Prevention of Money Laundering Act. A statement issued by the Finance Ministry said that the agency initiated a review of the Paytm Payments Bank Ltd on receipt of specific information from law enforcement agencies in respect of few entities and their network of businesses engaged in a number of illegal acts, including organising and facilitating online gambling. Further, “the money generated from these illegal operations, i.e. proceeds of crime were routed and channelled through bank accounts maintained by these entities with the Paytm Payments Bank Ltd,” the statement said. – Business Line.
🍒 NEFT records 4.1 cr transactions on Feb 29, highest single-day volume : The National Electronic Funds Transfer (NEFT) recorded its highest ever single-day transactions on February 29, with the payment system processing 4.10 crore transactions on that day, the Reserve Bank of India said. The NEFT processed 4,10,61,337 transactions on February 29, the RBI said. “During the previous ten years (2014-23), NEFT and RTGS (Real Time Gross Settlement) systems have registered growth of 700 per cent and 200 per cent respectively in terms of volume and 670 per cent and 104 per cent respectively in terms of value,” the central bank said. – economic times.
🍒 LIC presents Rs 2,441 cr dividend cheque to Sitharaman : Life Insurance Corporation of India (LIC) on Friday paid a dividend of Rs 2,441 crore to the government. “Smt @nsitharaman receives a dividend cheque of Rs 2,441.44 crore from Shri Siddhartha Mohanty, Chairman – Life Insurance Corporation of India (@LICIndiaForever),” Finance Minister Nirmala Sitharaman’s Office said in a post on X. – economic times.
🍒 Term deposits formed 98% of incremental deposit growth in Apr-Dec: RBI : Term deposits accounted for a whopping 98% of incremental deposits between April-December 2023, with share of low-cost current account and savings account (CASA) falling to a low of 2% during the period, as more customers parked money in high yielding fixed, term deposits, according to the Reserve Bank of India’s (RBI) quarterly basic statistical returns on deposits-December 2023 report. Deposits also moved to higher interest rate buckets, with the share of term deposits bearing over 7% interest rate rising to 61% of the total term deposits in December 2023 from 55% a quarter ago and 34% in March 2023. As on February 9, banks’ overall deposits stood at Rs 201.95 trillion. – economic times.
🍒 UPI transactions dip slightly in Feb due to fewer days, technical disruptions : After starting 2024 on a strong note, the Unified Payments Interface (UPI) saw transactions dip slightly in February but remain above December 2023 levels. ransactions worth ₹18.28-lakh crore were processed during February, nearly 1 per cent lower than the peak of ₹18.41 lakh crore in January 2024. The value of transactions was 48 per cent higher year-on-year, as per data by the National Payments Corporation of India (NPCI). The number of transactions on the UPI network too fell by 0.8 per cent to 1,210 crore from the January level of 1,220 crore transactions. On year, the volume of transactions was 61 per cent higher. Typically, transaction volumes and the transaction amount is lower in February due to the fewer number of days in the month. – Business Line.
🍒 Diversified NBFCs to grow 20% in FY25, focus to be co-lending: India Ratings : Large and diversified NBFCs are expected to grow 20 per cent year-on-year in FY25, slower than 27 per cent in FY24 due to capital constraints and increased regulatory scrutiny, according to India Ratings. “Regulatory scrutiny and compliance have been the ongoing need of the hour for NBFCs. This is because they are scaling up and their dependence on and inter-connectedness with banks is increasing,” the rating agency said while maintaining a ‘neutral’ outlook on the sector. – Business Line.
🍒 Universal Sompo General Insurance covers 2 lakh under PMJAY : Universal Sompo General Insurance has provided healthcare coverage to 2 lakh people and their families under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana in the Union territory Dadra & Nagar Haveli and Daman & Diu. The cover will ensure access to quality medical services for those in need. Under the ABPMJAY scheme in Dadra & Nagar Haveli and Daman & Diu, 1,109 packages and 1,949 procedures are currently provided across 27 specialties. – Business Line.
🍒 Microfinance Q3 disbursements at ₹78,584 crore, AUM grows 25% : Microfinance loans for the financial services sector grew 24.6 per cent on year to ₹3.99 lakh crore as of December 2023, serving 7.4 crore unique borrowers through 14.6 crore loan accounts. 1.66 crore microfinance loans worth ₹78,584 crore were disbursed during Q3 FY24, compared with 1.89 crore loans worth ₹77,877 crore in the year ago period, as per data by industry body Microfinance Industry Network (MFIN)’s Micrometer report for Oct-Dec. “Microfinance operations added more than 1 crore unique clients over the last financial year to its fold. Portfolio delinquency has reached the pre COVID levels which indicates improving health of the microfinance portfolio,” said Dr Alok Misra, CEO and Director, MFIN. – Business Line.
🍒 Paytm board approves discontinuation of inter-company agreements with Paytm Payments Bank : The Board of Directors of One 97 Communications Ltd (Paytm) on Friday approved the discontinuation of its various inter-company agreements with its associate entity Paytm Payments Bank Limited (PPBL). Paytm and PPBL have introduced additional measures to strengthen their approach towards independent operations of PPBL, said a Paytm filing with stock exchanges on Friday. The discontinuation of various inter-company agreements were approved at a board meeting on Friday through circulation of resolution, it added. – Business Line.
🍒 Central banks’ functioning more transparent now, says RBI DG Rao : Even as communication for central banks is a “bit of tight rope”, as they must avoid inconsistency between what they say and what is understood and interpreted by the markets and stakeholders, the world has come a long way since the days when their commentary was shrouded in mystery, Reserve Bank of India (RBI) deputy governor M Rajeshwar Rao said at the Dr M V Pylee Memorial Lecture in Kochi. “We have come a long way since the days when central banks were shrouded in mystery. Central bank communication has evolved to become more transparent over the decades,” he said. – Financial Express
🍒 Paytm Payments Bank and Paytm to discontinue inter company agreements amid regulatory scrutiny : Paytm on Friday announced that it would be taking additional measures to disassociate its offerings from those of Paytm Payments Bank, amid regulatory action against the latter. “One 97 Communications Ltd (Paytm) would like to inform that the Company and its associate entity, Paytm Payments Bank Limited (PPBL), have introduced additional measures to strengthen their approach towards independent operations of PPBL,” Paytm said in a regulatory filing. – economic times.
🍒 MFI portfolio touches Rs 4 lakh crore across India : Micro-finance Institutions portfolio has touched almost Rs four lakh crore during the third quarter of the current financial year, according to the self-regulatory organisation Microfinance Industry Network (MFIN) report. The report said that the industry saw a robust growth of 24.6 per cent over the last financial year, while portfolio delinquency has reached pre-COVID levels indicating improving health of the sector. It said there has been a significant change in the portfolio distribution across regions. South India has emerged as the largest contributor to the MFI portfolio with a share of 31.06 per cent, followed by east and northeast contributing 31.06 per cent. – Business Line.
🍒 ICICI Lombard appoints Anand Singhi as chief – retail and government business : ICICI Lombard has brought on board Anand Singhi as its chief – retail and government business, the general insurance company said in a statement on Friday. “I see this as a great opportunity to contribute to the company’s continued success and innovation agenda. My journey thus far has equipped me with insights and experiences that I believe will compound growth and drive sustained profitability for the organisation,” Singhi said. – Economic Times.
🍒 Future Generali India Life Insurance appoints Alok Rungta as managing director & CEO : Future Generali India Life Insurance on Friday announced the elevation of Alok Rungta to the position of managing director and CEO effective April 1, subject to receipt of necessary regulatory approvals. Rungta – currently serving as deputy CEO and CFO of the insurance joint venture between Italian insurance company Generali Group, and Kishor-Biyani-founded Future Group – will take over from Bruce De Broize who will continue to be the MD and CEO until March 31. – economic times.
🍒 NCLT directs Zee to file reply on Sony’s application in two weeks : The Mumbai bench of the National Company Law Tribunal (NCLT) has directed Zee Entertainment Enterprises to file its reply to applications filed by Sony Group companies within two weeks. Sony Group units Culver Max Entertainment and Bangla Entertainment have filed two applications challenging the maintainability of Zee Entertainment’s plea seeking implementation of the merger scheme. – Business Line.
🍒 Rupee settles 1 paisa lower at 82.90 against US dollar : The rupee settled 1 paisa lower at 82.90 (provisional) against the US dollar on Friday amid rising crude oil prices in the overseas market and increased demand for the American currency from importers. At the interbank foreign exchange market, the local unit opened at 82.86 and traded in a narrow range of 82.84 and 82.91 against the greenback. The local unit finally settled at 82.90 (provisional) against the dollar, down 1 paisa from its previous close. – Business Line.
🍒 Sensex gains 1,245 pts, Nifty settles above 22,300 on impressive GDP data, foreign fund inflows : Sensex, Nifty updates on 01 March 2024: Benchmark equity indices Sensex and Nifty rallied more than 1.5% to hit their lifetime highs on Friday helped by impressive GDP data and fresh foreign fund inflows. The 30-share BSE Sensex jumped 1,245.05 points or 1.72 per cent to reach 73,745.35—its all-time closing peak. During the day, it zoomed 1,318.91 points or 1.81 per cent to hit a record intra-day high of 73,819.21. The Nifty climbed 355.95 points or 1.62 per cent to settle at a new closing high of 22,338.75. During the day, it soared 370.5 points or 1.68 per cent to reach its intra-day record peak of 22,353.30. A rally in global markets added to the positive momentum in the equity markets, analysts said. – Business Line..
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