D-SIB, ICICI, SBI - Current Affairs Questions and Answers

ANSWER: BHARAT-22

Explanation:
The Government of India launched the BHARAT-22 Exchange Traded Fund (ETF) managed by ICICI Prudential Mutual Fund targeting an initial amount of about INR 8,000 crore on 14^th Nov, 2017.

This New Fund Offer is open till November 17, 2017.

The Units of the Scheme will be allotted 25% to each category of investors. In this ETF, the Retirement Fund has been made separate category of Investors.
In case of spill-over, additional portion will be allocated giving preference to retail and retirement funds. There is a 3% discount across the board.

The strength of this ETF lies in the specially created Index S&P BSE BHARAT-22 INDEX.

This Index is a unique blend of shares of key CPSEs, Public Sector Banks (PSBs) and also the Government owned shares in blue chip private companies like Larsen & Tubro (L&T), Axis Bank and ITC.

The shares of the Government companies represent 6 core sectors of the economy-Finance, Industry, Energy, Utilities, Fast Moving Consumer Goods (FMCG) and Basic Materials.

The index has previously out-performed the NIFTY-50 and Sensex.

The Index constituents include leading Maharatanas and Navratanas such as Coal India, GAIL, Power Grid Corporation of India Ltd. (PGCIL), National Thermal Power Corporation (NTPC), Indian Oil Corporation Ltd., Oil & Natural Gas Corporation (ONGC), Bharat Petroleum, and National Aluminium Company (NALCO), three Public Sector Banks such as SBI, Bank of Baroda apart from the 3 private sector companies mentioned earlier.

Reforms and ETF

• The Government of India is undertaking a number of Key Economic Reforms which is driving growth in these sectors of economy. The major reforms such as mentioned below for which market expert believe will fuel the growth in the economy and may benefit the underlying stocks in ETF.
• Finance: Insolvency and Bankruptcy Code 2016, Digital and Cashless Economy, Listing of Insurance companies, Bank recapitalization and Goods and Services Tax (GST).
• Commerce: Liberalization of Foreign Director Investment (FDI) in India
• Oil: Direct Benefit Transfer of LPG subsidies, Introduction of Daily Fuel pricing, Consolidation of Govt. run oil companies.
• Energy: Revival package for electricity distribution companies of India (DISCOMs).

ANSWER: 5

Explanation:
The merger of the five associate banks with the SBI will lead to increased capital base and availability of loan, as the Lok Sabha passed the bill approving the amalgamation.

The Lok Sabha passed the bill to repeal the SBI (Subsidiary Banks) Act 1959, State Bank of Hyderabad Act 1956 and to further amend the State Bank of India Act, 1955, following the merger of five associates with the parent SBI.

With this merger, the SBI has come in the list of top 50 banks globally and is ranked at the 45th position.

The merger will bring about increased capital base and increased ability to give loans. Also, small banks will get access to products like mutual funds.

During the last two years, 29 crore bank accounts were opened, of which 25 per cent were zero balance accounts and farm loans increased from INR 3.5 lakh crore in 2009-10 to INR 10.65 lakh crore in 2016-17.

The merger will help increase SBI’s scope of operation and will pose a challenge to private banks as it will work as per the requirements of the people.

The merger has been planned keeping in mind the benefit of people and going forward its benefits will be seen.

According to the statement of object and reasons of the State Banks (Repeal and Amendment) Bill 2017, after the acquisition of the subsidiary banks by SBI, the subsidiary banks have ceased to exist and, therefore, it is necessary to repeal the State Bank of India (Subsidiary Banks) Act, 1959 and the State Bank of Hyderabad Act, 1956.

Five associates and the Bharatiya Mahila Bank became part of State Bank of India (SBI) beginning April 1, catapulting the country's largest lender to among the top 50 banks in the world.

The five associates that were merged are State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT).

Following the merger, the total customer base of SBI increased to 37 crore with a branch network of around 24,000 and nearly 59,000 ATMs across the country.

The merged entity began operation with a deposit base of more than INR 26 lakh crore and advances level of INR 18.50 lakh crore.

As per the bill, after the acquisition of all the subsidiary banks by the SBI, it is not necessary to retain such provisions in the State Bank of India Act, 1955. .

Therefore, certain amendments are necessary in the said Act in so far as they relate to the subsidiary banks. The amendments are consequential in nature.

SBI had 90 per cent shareholding in the State Bank of Mysore, 75.07 per cent shareholding in the State Bank of Bikaner and Jaipur and 79.09 per cent shareholding in the State Bank of Travancore.

SBI: Know More

• State Bank of India is an Indian multinational, public sector banking and financial services company.
• It is a government-owned corporation with its headquarters in Mumbai, Maharashtra.
• Customer service: 1800 425 3800
• Chairperson: Arundhati Bhattacharya
• Headquarters: Mumbai
• Founded: 1 July 1955
• Major Subsidiaries: SBI Cards, State Bank of Hyderabad

ANSWER: SBI

Explanation:
India’s largest commercial bank State Bank of India (SBI) on Tuesday said it has launched a dedicated portal ‘SBI Realty’.

This will help home buyers to choose flats from its 3,000 approved projects across the country, which are spread across 13 states and Union Territories covering 30 cities.

State Bank of India has taken another step towards customers’ convenience by launching ‘SBI Realty’ - a one stop integrated website www.sbirealty.in for home buyers.

At present, there are 9.5 lakh home units available on the website. Customers can compare current and past trends of prices for the properties in various localities in the city.

The portal will assist customers in calculating appropriate loan amount a customer should borrow based on income and credit profile.

SBI believes in innovation combined with an emphasis on market research, contemporary architecture, strong project execution and quality construction.

The SBI Realty website has been developed by SBICAP Securities in association with PropEquity in terms of data support, project information, etc.

SBI: Know More

• SBI is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees.
• The company has a deposit base of Rs 25.85 lakh crore.
• It has an extensive network, with over 24 thousand branches in India and 194 offices in 35 other countries.

ANSWER: Nepal

Explanation:
Nepal SBI Bank, a subsidiary of the State Bank of India, today launched its fully automatic digital banking services SBIInTouch in the Nepalese capital Kathmandu.

This is for the first time the State Bank of India has expanded the paperless banking system outside India.

Digital banking provides various services including cash deposit, opening of new accounts, distribution of debit card, ATM and online banking information on touch of the screen.

Customers can avail the services from SBI Intouch Bank.

The digital banking unit also has a robot, which provides important information to customers in an interactive manner.

Nepal Rastra Bank Governor Chirinjibi Nepal, SBI Bank’s chairperson Arundhati Bhattacharya and Indian Ambassador to Nepal Manjeev Singh Puri, jointly inaugurated the new service, the first of its kind in Nepal.

The paperless banking service has been launched to target potential younger customers who are exposed to digital technology.

Paperless banking is a revolution in the banking sector of Nepal, said Chiranjibi Nepal.

ANSWER: bank.sbi

Explanation:
The State Bank of India (SBI) on 20^th Feb 2017 announced rebranding of its website as bank.sbi.

According SBI, the new domain name bank.sbi is the highest domain protocol known as generic top level domain (gTLD), an official statement.

The SBI group has several businesses. For those wanting to do banking or want to know about the bank it is easier to type out www.bank.sbi.

The SBI group having presence in insurance, mutual fund and card may also go for such Generic top-level domain (gTLD).

With this, SBI has become the first banking organisation in India to use a gTLD for its online presence and providing an exclusive experience of assurance and security to its customers.

SBI being the largest bank has always been the pioneer in adapting new technology.

SBI has always believed in providing high-tech yet secure internet experience to its customers.

Bank's own gTLD is another step in this direction.

SBI's Chairperson is currently Arundhati Bhattacharya.

Bank's own gTLD aims at simplifying the digital experience of customers and brings in enhanced security against phishing and lookalike websites.

Due to its non-replicability, a gTLD site like ".sbi" conveys an assurance to the customer that the site is authorised, genuine and is not an inappropriate or phishing site.

The existing site of sbi.co.in will continue till customers get used to the SBI's new secure website.

SBI: Know More

• State Bank of India is an Indian multinational, public sector banking and financial services company.
• It is a government-owned corporation with its headquarters in Mumbai, Maharashtra.
• Founded: 1 July 1955
• Subsidiaries: SBI Cards, State Bank of Hyderabad etc

ANSWER: 5

Explanation:
The merger proposal was announced in May 2016 and was scheduled for March 2017.

The Union Cabinet on 15th Feb 2017 approved the merger of five of State Bank of India subsidiaries - State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore - with the SBI.

The merger proposal was announced in May 2016 and was scheduled for March 2017.

Finance Minister Arun Jaitley said that the Cabinet had earlier given its in-principle approval for the merger, and then had sent it to the respective banks for their suggestions.

These suggestions have been taken on-board, and the decision has been formally approved by the Cabinet.

This will lead to far greater operational efficiency and synergy of operations within these banks.

It will decrease the cost of operations, which will also result in a decrease in the cost of funds.”

The merger is likely to result in recurring savings, estimated at more than INR. 1,000 crore in the first year, through a combination of enhanced operational efficiency and reduced cost of funds.

Existing customers of subsidiary banks will benefit from access to SBI’s global network.

SBI, following the merger, will not only be a large domestic bank, but will also become a global player as well.

ANSWER: SBI

Explanation:

• INS Vikramaditya, the largest warship and latest aircraft carrier of the Indian Navy, has a strength of over 1500 personnel.
• A versatile national capability and a full-fledged township by herself, the ship has a new acquisition – an ATM machine installed on-board by the nation’s largest bank and banking network, the State Bank of India.
• The facilities offered by the State Bank of India to the ship include cash withdrawals, generation of mini-statements, access to bank balance details and change of PIN numbers.
• In the near future, the facility will be upgraded to a recycler machine with a cash deposit facility.
• Additionally, facilities like cash transfer, Card-to-Card transfer, Credit Card payment, mobile number registration and updating would also be available.
• The ATM machine is a unique floating banking system, and along with the Point of Sale machine that is also proposed to be installed on-board, would go a long way in supporting cashless transactions on the ship, in line with the government’s policy of digitising the India economy.
• It will enable personnel of the ship to manage their domestic financial requirements better and assist them in conducting their money transactions at their own convenience.

ANSWER: IOC

Explanation:
SBI has engaged Indian Oil Corporation’s Kisan Seva Kendras as banking correspondents to extend banking facilities to farmers across the nation.

• SBI signed an MoU with IOC as part of the financial inclusion programme lending further services to the farming community.
• Indian Oil Corporation has set up 6,500 Kisan Seva Kendras in rural and remote areas providing access to numerous agricultural inputs like seeds, fertilisers and pesticides to farmers.
• Tie up will enable farmers to avail various products and services by SBI customer service points such as saving account, recurring deposit and more.
• IOC with net profit of INR 103.99 billion for 2015-2016 is India’s largest commercial enterprise.

ANSWER: Society for Innovation and Entrepreneurship

Explanation:
State Bank of India in the second week of July 2016 has signed an MoU with the Indian Institute of Technology Society for Innovation And Entrepreneurship(SINE) to promote innovation by startups in the financial sector.

• Deal also aims to evaluate start ups operating out of SINE or being promoted by SINE for early stage funding with the norms of the bank
• SINE is an IIT-B incubator

ANSWER: Mingle

Explanation:
Country’s largest lender, SBI has launched three digital initiatives and aims to print its branch network once its associated have merged.

• SBI can debut on social media by launching the platform called Mingle through which FB and Twitter users can transact business.
• Customers have to register for the service through a simple one time registration process using their account number or ATM Debit card details
• Another initiative is a tie up with Flipkart through which the bank will extend loans to select customers for purchases above INR 5000
• SBI has indicated at present, one million customers can avail this loan
• Another initiative is the SBI Digital Villages which will transform selected villages into safe, healthy and vibrant digital centres
• A total of 21 villages have been covered under this initiative
• SBI will bring more than 6000 branches into its fold once the 5 associates merge