Friday, August 5, 2022

Karnataka Bank - Federal Bank current affairs 04082022


 

CURRENT AFFAIRS SNIPPETS

04th August 2022

 

National News


'Flood tourism' will not be permitted: Kerala minister amid rains

Amid rains in Kerala, state minister K Rajan on Wednesday said that people should strictly avoid going to areas which are inundated or flooded as part of a growing trend of “flood tourism”. He warned that such activities will not be permitted and police would be used to remove such persons.


CJI NV Ramana recommends Justice UU Lalit's name as his successor

Chief Justice of India NV Ramana has recommended Justice Uday Umesh Lalit's name as his successor. Justice Lalit will become the 49th CJI. Justice Lalit, who enrolled as an Advocate in June 1983, practised in the High Court of Bombay till December 1985 and was appointed Judge of the Supreme Court of India in August 2014.
No shortage of foodgrain in country: Union Agriculture Minister

Union Agriculture Minister Narendra Singh Tomar informed the Parliament that there is no shortage of foodgrain in the country and stocks are sufficient to meet the demand. There are adequate stocks in the “central pool”, he added. "As on July 1, 2022, the actual stock of wheat is 285.10 LMT against the buffer norm of 275.80 LMT," Tomar said.


6 National Highway projects launched in MP by Union Minister 


In Indore, Madhya Pradesh, 6 National Highway projects totaling 119 km and costing Rs. 2300 crore were formally opened and the foundation stone was laid by Union Minister for Road Transport and Highways Shri Nitin Gadkari.  The villages in the Indore-Harda segment will be better connected to Indore. He stated that the expansion of the Dhar-Pithampur Industrial Corridor would result in more job opportunities.  According to the Minister, travel times between Tejaji Nagar (Indore) and Burhanpur and Indore and Harda will be shortened, saving fuel. He claimed that travellers heading to Omkareshwar and Khandwa will have easy access to the routes.  The State Government and NHAI signed a memorandum of understanding during this initiative to build ropeways at 14 designated locations in Madhya Pradesh.


Wild Life (Protection) Amendment Bill, 2021 approved by Lok Sabha 


The Wild Life (Protection) Amendment Bill, 2021 is approved by the Lok Sabha. The Wild Life (Protection) Act of 1972 already protects a number of species, but the proposed legislation would also implement CITES, the Convention on International Trade in Endangered Species of Wild Fauna and Flora. The Rajya Sabha still needs to pass the Bill, though.  According to Bhupender Yadav, the Union Environment Minister, the government operates under the Vasudhaiva Kutumbakam principle and strives to improve both humankind and all other animal species.  The Union Environment Minister has also urged people to avoid purchasing upscale goods derived from animals from threatened or endangered species.


Ministry for Commerce & Industry: India recognising over 75000 startups so far


Union Minister for Commerce & Industry, Piyush Goyal has announced that India has achieved a landmark milestone, wherein 75000 startups have been recognized in the country.  The Department for Promotion of Industry and Internal Trade (DPIIT) has recognized more than 75,000 startups- a milestone which coincides with the 75th year of independence.  Startup India program which was primarily set up to provide an enabling environment for the startups has today evolved into the launchpad for them.


Andhra Pradesh emerges as winner in Utilisation of Agri-Infra funds 


When it comes to using cash for agricultural infrastructure, Andhra Pradesh comes out on top (Agri Infra Fund). By placing a strong emphasis on infrastructure development at the farm gate, it has become the best state.  At a ceremony in New Delhi, Union Minister of Agriculture and Family Welfare Narendra Singh Tomar presented B. Srinivasa Rao, CEO of State Rythu Bazars, with the award for the best state in the nation in terms of utilising Agri Funds in the fiscal year 2021–22.


Kerala CM launched eggs and milk scheme for Anganwadi children 


Kerala Chief Minister, Pinarayi Vijayan has inaugurated a project of the Women and Child Development department.  This project help to provide milk and eggs to children at all Anganwadis in the state in a bid to improve their nutrition levels. The state government has set aside over Rs 61.5 crore to include milk and eggs in the Anganwadi menu this financial year.  Under this scheme, which is considered as a first in the country, each child will be given 125 ml of milk two days a week for 44 weeks (10 months) and an egg twice a week.  Under this project, four lakh children in the age group of 3-6 from the 33,115 anganwadis of the state will receive eggs and milk twice a week.


Appointments News


Suresh N Patel sworn in as Central Vigilance Commissioner 


Vigilance Commissioner, Suresh N. Patel was appointed as the Central Vigilance Commissioner. He has been working as the acting Central Vigilance Commissioner (CVC) since June this year.  He was sworn in as the chief of the Central Vigilance Commission by President Droupadi Murmu at Rashtrapati Bhavan. The ceremony was also attended by Prime Minister Narendra Modi and Vice President M. Venkaiah Naidu. Former Indian Administrative Service (IAS) officer Sanjay Kothari had completed his term as the CVC on June 24 last year.


IFS officer Shweta Singh appointed as Director of PMO 


According to a Personnel Ministry, 2008 batch Indian Foreign Service (IFS) officer, Shweta Singh was appointed as a director in the Prime Minister's Office (PMO).  The Appointments Committee of the Cabinet (ACC) approved Singh's appointment for a period of three years from the date of her joining.  The ACC has cancelled the appointment of Aniket Govind Mandavgane, a 2009-batch IFS officer, as the Deputy Secretary in the PMO. Mandavgane was on July 18 appointed as the Deputy Secretary.


Senior-most judge of Supreme Court U U Lalit, in line to become next CJI 


Senior-most judge of the Supreme Court of India, Justice U U Lalit, who is in line to become the next Chief Justice of India (CJI).  He has been part of several landmark judgements including the one which held the practice of divorce through instant 'triple talaq' among Muslims illegal and unconstitutional.  Justice Lalit is in line to become the 49th CJI of India on August 27, a day after incumbent Justice N V Ramana demits the office.

 

International News
China fires multiple missiles around Taiwan

China fired multiple missiles around Taiwan on Thursday as it launched its largest-ever military exercises a day after a visit by US House Speaker Nancy Pelosi. Taiwan's Defence Ministry said several Dongfeng missiles had been fired in waters to the northeast and southwest of the island. The last time China fired missiles into waters around Taiwan was in 1996.

 

 


UN General Assembly deemed a healthy environment a Human Right 


The United Nations General Assembly (UNGA) adopted a resolution that recognised everyone's right to a healthy environment. It was stated that the action is a crucial one in halting the alarming decline of the natural environment.  India supported the resolution but abstained from one of the resolution's key clauses. It expressed dissatisfaction with the resolution's methodology and content.  The UNGA recognises the right to a clean, healthy, and sustainable environment as a human right, according to the resolution's operative paragraph 1.  Ashish Sharma, a counsellor at India's Permanent Mission to the UN, asked that this comment be recorded in the meeting's official records.


Samsung scales back production in Vietnam as demand falls: Reports

Samsung Electronics has cut down production at a smartphone plant in Vietnam as retailers and warehouses deal with increasing inventory amid global fall in consumer spending, reports said. US retailers like Best Buy, Target Corp warn of slowing sales. Plant workers said they are shifting to three-day and four-day work week as six-day work week and overtime is not needed.

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BANKING, BUSINESS AND ECONOMY


CNG price increases by ₹6 per kg in Pune; 7th hike since April

The price of compressed natural gas (CNG) has been increased by ₹6 in Pune, effective from Thursday. CNG will now cost ₹91 per kg in Pune. This is the seventh price hike since April this year. "Overall, there is a shortage of CNG as there is no supply from Russia and Ukraine," All India Petroleum Dealers Association spokesperson said.


Bharti Airtel to roll out 5G services this month, signs equipment deals

Bharti Airtel has signed 5G equipment service deals with Ericsson, Nokia and Samsung, and will start rolling out 5G services later this month, the telecom operator said. Bharti Airtel acquired 19,867.8 MHz spectrum worth ₹43,084 crore in the country's first-ever 5G spectrum auction. "Airtel will work with the best technology partners from across the world," its MD and CEO said.


RBI permitted use of INR for foreign commerce invoices and payments 


Bhagwat Kisanrao Karad, the Union Minister of State for Finance, informed the Rajya Sabha that the Reserve Bank of India (RBI) has permitted foreign trade invoices and payments to be made in the Indian Rupee.  By means of a circular titled International Trade Settlement in Indian Rupees (INR) that was published on July 11, 2022, the central bank has permitted payments for international trade in the Indian currency.


Gold prices in India rise, trade at ₹51,815 per 10 gram

Following positive global cues, gold prices in India traded higher on Thursday at ₹51,815 per 10 gram. Gold October futures traded higher by ₹461 at ₹51,850 per 10 gram on the Multi Commodity Exchange. Silver September futures rose ₹57,880 per kg. A pullback in the US dollar and Treasury yields led gold prices to edge higher globally

 


Ranks and Reports News


Fortune Global 500 list: LIC breaks into Fortune 500 list


Indian statutory insurance and investment corporation, Life Insurance Corporation (LIC) has broken into the latest Fortune Global 500 list.  The nation’s biggest life insurer with revenue of USD 97.26 billion and a profit of USD 553.8 million, was ranked 98th on the just released Fortune 500 list. This is the first outing of LIC on the list, which ranks listed companies by sales.


Ramsar sites: India adds 10 new wetlands in the list 


India adds 10 more wetlands designated as Ramsar sites to make a total of 64 sites in the country. The 10 new sites include Six (6) sites in Tamil Nadu and One (1) each in Goa, Karnataka, Madhya Pradesh and Odisha.  Designation of these sites would help in the conservation and management of wetlands and the wise use of their resources.  India is one of the Contracting Parties to the Ramsar Convention, signed in Ramsar, Iran, in 1971. India signed it on 1st Feb 1982.  So far 64 wetlands covering an area of 12,50,361 ha have been designated as Ramsar Sites of International Importance in India, till date.


Sports News


Commonwealth Games 2022: Tejaswin Shankar wins India's first High Jump Medal 


India’s Tejaswin Shankar won India's first medal in athletics at the Commonwealth games 2022, by clinching a historic bronze in the men’s high jump final.  Tejaswin, competing for India for the first time in four years nailed a landing of 2.22m to secure a podium finish. He did not have trouble clearing 2.5m and 2.10m in the opening two jumps.  Then 2.19m and 2.22m quite easily on the first try. He though failed to clear 2.25 but clinched the bronze medal after being quicker to jump 2.22m against the fourth-placed athlete. He attempted 2.28m on his last jump but failed.


Commonwealth Games 2022: Tulika Maan wins silver in women's 78kg judo event 


Indian judoka, Tulika Maan settle for a silver medal in the women's 78kg category in the Commonwealth Games 2022.  Tulika Maan gets India's second silver medal in Judo and third overall in the Judo, as she conceded a defeat by Ippon to Scotland's Sarah Adlington in the Women's +78kg final.


44th Chess Olympiad: Tania Sachdev Shines in Indian Women Team 


Tania Sachdev has registered a 2.5-1.5 win for India against Hungary in the fourth-round match of women section at the 44th Chess Olympiad in Mamallapuram, Chennai. She thrashed Zsoka Gaal to earn a decisive point as well as a match for the team.  Koneru Humpy, Dronavalli Harika and R Vaishali ended with a draw in their respective encounters. Tania Sachdev is an Indian chess player, who holds the FIDE titles of International Master and Woman Grandmaster.  She is a two-time Indian women's chess champion in 2006 and 2007, one-time Asian women's chess champion in 2007 and three-time and current Commonwealth Women's Chess Champion in 2016, 2018 and 2019.


Commonwealth Games 2022: Saurav Ghosal wins India's first-ever singles medal in squash


India's Saurav Ghosal has clinched the bronze medal in squash men's singles by beating James Willstrop of England 11-6, 11-1, 11-4 to take India's Commonwealth Games 2022.  This was also India's first-ever medal in squash singles at the Games. He had lost the men's singles semi-final 3-0 (11-9 11-4 11-1) to New Zealand's Paul Coll.


Commonwealth Games 2022: Indian weightlifter Gurdeep Singh wins bronze in men's


India's Gurdeep Singh won a bronze medal in the men's 109+kg weightlifting event. Gurdeep lifted a total weight of 390kg (167kg+223kg) in the final, as he won India's 10th weightlifting medal at the ongoing edition of the Games.  Gurdeep joined Gururaja Poojary and Lovepreet Singh to add a third bronze medal in weightlifting for India.  The gold went to Pakistan's Muhammad Nooh Butt for his Games record-breaking lift of 405kg (173kg+232kg). New Zealand's David Andrew Liti clinched the silver for his effort of 394kg (170kg+224kg). 

 

 

 

 

 

OBITUARY


Himachal Pradesh BJP vice-president Praveen Sharma passes away aged 65

Himachal Pradesh BJP vice-president Praveen Sharma died on Thursday morning aged 65. Sharma, who was the vice chairman of Himachal Pradesh Housing and Urban Development Authority (HIMUDA), died at his residence in Amb town. He was elected from the Amb Assembly constituency in 1998 and had also served as Excise and Taxation-cum-Youth Welfare and Sports Minister.

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Thursday, August 4, 2022

KARNATAKA FEDERAL BANK CURRENT AFFAIRS 03082022



CURRENT AFFAIRS SNIPPETS 
03rd August 2022


National News

Kerala man going from Kanyakumari to Kashmir on skateboard dies in Haryana
Anas Hajas, a 31-year-old resident of Kerala who was travelling from Kanyakumari to Kashmir on a skateboard, lost his life after a speeding truck hit him in Haryana's Panchkula on Tuesday. Hajas had started his 3,511-km-long journey on May 29 to create awareness among people about skating. After completing this trip, he was planning trips to Nepal, Bhutan and Cambodia.


GoI released a commemorative postage stamp to honour Tricolour designer P Venkayya 

The government of India released a special commemorative postage stamp to mark the 146th birth anniversary of Pingali Venkayya, the designer of India’s national flag.  The stamp was released by Prime Minister Narendra Modi during an event “Tiranga Utsav” organised by the Ministry of Culture at Indira Gandhi Stadium, in New Delhi.  The event will also display the original design of the national flag made by Pingali Venkayya. The current flag is the modified version of the first design of the flag.  The Tiranga Utsav will also witness the grand launch of the “Har Ghar Tiranga” anthem and video. Venkayya, born on August 02, 1876, near Machilipatnam town in Andhra Pradesh, was a freedom fighter and a follower of Gandhian principles.

Tiranga bike rally organised by Union Culture Minister G Kishan Reddy 

A Har Ghar Tiranga Bike Rally by Members of Parliament was launched in Delhi from the famed Red Fort by Vice President M. Venkaiah Naidu. The Tiranga Bike rally is organised by Union Culture Minister G Kishan Reddy.  In honour of Prime Minister Narendra Modi's Har Ghar Tiranga campaign, a bike rally was held from Red Fort to Vijay Chowk. Additionally present were Union Ministers Pralhad Joshi and Piyush Goyal.

Appointments News

BharatPe appoints ex-head of SBI Card Nalin Negi as CFO
Fintech unicorn BharatPe has appointed the former head of SBI Card, Nalin Negi, as its Chief Financial Officer as the company prepares for its Initial Public Offering (IPO). In a statement, BharatPe said that Negi will be working towards making the company EBITDA positive by March 2023. Negi will be reporting to Suhail Sameer, the company's Chief Executive Officer (CEO).



Sujoy Lal Thaosen gets the additional charge of DG of ITBP 

Sashastra Seema Bal's director general in New Delhi, Dr. Sujoy Lal Thaosen assumed the additional responsibility of Director General of the Indo-Tibetan Border Police. Dr. Thaosen is a Madhya Pradesh Cadre IPS Officer from the 1988 batch.  Dr. Thaosen received the charge and traditional baton from IPS Sanjay Arora. The ITBP, established in 1962, patrols the Indo-Chinese border. Additionally, it is used for a number of internal security tasks, such as anti-Naxal operations in Chhattisgarh.

Banking, Business and Economy News


India’s services sector growth hits 4-month low in July
The S&P Global India Services PMI Business Activity Index fell from 59.2 in June to 55.5 in July as inflation, unfavourable weather and competitive pressures restricted demand. The index pointed to the slowest growth rate in four months. Meanwhile, the growth in sales was driven by the domestic market even as international demand saw a decline.

Kotak Mahindra Bank appoints Milind Nagnur as President and CTO
Kotak Mahindra Bank has announced the appointment of Milind Nagnur as President and Chief Technology Officer (CTO). Nagnur, who had been working at US-based Early Warning as CTO since June 2020, will be incharge of spearheading Kotak's technological transformation. Nagnur has previously worked with Wells Fargo Bank, JP Morgan Chase and Citigroup.

Which 9 Indian companies feature on 2022 Fortune Global 500 list?
As many as nine Indian companies feature on 2022 Fortune Global 500 list. LIC is ranked 98th, while Reliance Industries is ranked 104th. Other Indian companies on the list are Indian Oil, Oil and Natural Gas, SBI, Bharat Petroleum, Tata Motors, Tata Steel and Rajesh Exports. The list ranks the world's largest corporations by revenue for fiscal 2021.

GST collection for July 2022 second highest ever at Rs 1.49 lakh crore

Goods Services Tax collection has risen 28 per cent to touch the second-highest level of Rs 1.49 lakh crore in July on the back of economic recovery and steps taken to curb tax evasion.  Goods and Services Tax (GST) collection stood at Rs 1,16,393 crore in the same month a year ago. GST, introduced in July 2017, touched a record high of Rs 1.68 lakh crore in April 2022.  Of the Rs 1,48,995 crore GST collected in July, Central GST is Rs 25,751 crore, State GST is Rs 32,807 crore, Integrated GST is Rs 79,518 crore (including Rs 41,420 crore collected on import of goods) and cess is Rs 10,920 crore (including Rs 995 crore collected on import of goods).

RBI's Financial Inclusion Index (FI-Index) Inches Up 

The Reserve Bank of India's composite financial inclusion index (FI-Index) capturing the extent of financial inclusion across the country rose to 56.4 in March 2022, showing growth across parameters.  RBI now publishes the index annually in July every year. The index stood at 53.9 in March last year. It was at 43.4 for the period ending March 2017, showing rapid improvement in reach of financial services over the past five years.  Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.

SIDBI and SVC bank collaborate to increase loans to MSMEs 

To increase the flow of loans to MSMEs, the SVC Co-operative Bank (SVC Bank) and the Small Industries Development Bank of India (SIDBI) have reached an agreement. Ashish Singhal, MD of SVC Bank, and Sanjeev Gupta, GM of SIDBI, inked the deal. For more than 115 years, SVC Bank has acted as a reliable partner for MSMEs.  According to the agreement, SIDBI would grant a refinancing facility to SVC Bank in order to promote loan flow, empower MSMEs, and strengthen economic ties.  The MSME sector is the backbone of the Indian economy in terms of exports, employment creation, and revenue to the exchequer.


Sports News

Saurav Ghosal becomes 1st Indian squash player to win a CWG singles medal, bags bronze
Saurav Ghosal on Wednesday created history by becoming the first-ever Indian to win a singles medal in squash in the history of CWG. The 35-year-old defeated England's James Willstrop to finish third in the men's singles event at CWG 2022. Notably, Ghosal had won silver medal in mixed doubles event at CWG 2018 in Gold Coast.


23-year-old Tulika Maan wins silver medal at CWG 2022, takes India's tally to 16 medals
Judoka Tulika Maan on Wednesday bagged a silver medal in judo at CWG 2022, taking India's medal tally at the Games to 16. The 23-year-old lost to Sarah Adlington of Scotland in the women's +78 kg category final. India have won three medals in judo at CWG 2022 so far, including one bronze and two silver medals.


Commonwealth Games 2022: Indian Team bags gold in Lawn Bowl 

India's lawn bowls women's fours team made history by winning the gold medal at the Commonwealth Games 2022.  This was the country's first medal in the lawn bowls event and the team, made of skipper Rupa Rani Tirkey, Lovely Choubey, Pinki and Nayanmoni Saikia, ended up winning the title itself after beating 2018 silver medallists South Africa.  The Indian team won against South Africa with a 17-10 victory.

Commonwealth Games 2022: India’s paddlers wins gold in Table Tennis 

India’s paddlers retained their men’s team championship title with a convincing 3-1 win over Singapore in the Table-Tennis Final of the Commonwealth Games 2022.  For India, Harmeet Desai and G Sathiyan gave India a great start by registering a win in the doubles match. However, Chew Zhe Yu Clarence won the next game to level Singapore at 1-1. But G Sathiyan and Harmeet Desai ensured India’s gold by winning their respective matches.

Commonwealth Games 2022: Indian badminton team claimed the silver medal 

Indian badminton team claimed the silver medal in the mixed group match of the Commonwealth Games 2022.  Indian badminton mixed team suffered a 1-3 defeat against Malaysia and had to settle for silver. Only PV Sindhu managed to earn a win in the summit clash against Malaysia in the women’s singles match.  In the first match of the tie, India’s Chirag Shetty and Satwiksairaj Rankireddy were locked in a tough first game against Malaysia’s Teng Fong Aaron Chia and Wooi Yik.  In the second match of the tie, PV Sindhu took on Jin Wei Goh. The opening game of the match saw the double Olympic medallist playing aggressively to take one game lead over Malayasia’s Jin Wei Goh by 22-20.  In the third match of the tie, Kidambi Srikanth went down 19-21 against Malaysia’s Ng Tze Yong in the opening game.  After the match, Malaysia took a 2-1 lead. In the fourth match of the fixture, Treesa Jolly and Gayatri Gopichand went against Muralitharan Thinaah and Koong Le Pearly Tan. Indian pair lost the first game 18-21. The Malaysian pair won the second game 21-17 to clinch the gold medal in Games 2022.

4th ONGC Para Games 2022 inaugurated by Shri Hardeep Singh Puri 

The fourth edition of the ONGC Para Games was officially launched in New Delhi's Thyagaraj Sports Complex by Union Minister of Petroleum, Natural Gas, Housing, and Urban Affairs Shri Hardeep Singh Puri.  The 4th ONGC Para Games are being held by Oil and Natural Gas Corporation Limited (ONGC) from August 2-4, 2022, and feature 275 Persons with Disabilities (PwD) who work for eight central oil and gas public organisations.

Commonwealth Games 2022: Lovepreet Singh clinches bronze medal in men's weightlifting 

Lovepreet Singh has won bronze in the men’s 109kg weightlifting final with a total lift of 355kg, taking India's medal tally in the Commonwealth Games 2022.  Cameroon's Junior has taken the lead with a total lift of 361kg.  Samoa's Jack Opeloge is second with a total lift of 358kg. Lovepreet Singh is third with a total lift of 355kg.  Australia's Jackson is the last man standing, trying to win a bronze. The Indian weightlifting contingent has now won a total of 9 medals.

Science and Technology News

Jio getting ready to launch World’s Most Advanced 5G Network across India 

Reliance Jio, owned by billionaire Mukesh Ambani, became the highest bidder for 5G spectrum, paying Rs 88,078 crore to buy over half of the airwaves offered in the most recent auction.  The Adani group paid Rs 212 crore for 400 MHz, or less than 1% of all spectrum sold, according to Telecom Minister Ashwini Vaishnaw. Jio has also acquired the 700 MHz band.  While Jio purchased spectrum across several bands, including the coveted 700 MHz band, which can provide 6-10 km of signal range and serves as a good foundation for fifth generation (5G) in all 22 circles in the country.  Adani Group purchased spectrum in the 26 GHz band, which is not for public networks.  If 700 Mhz is used, a single towner can cover a larger area.

Books and Authors News

A book titled “Lion Of The Skies: Hardit Singh Malik” by Stephen Barker 

A book titled “Lion of the Skies: Hardit Singh Malik, the Royal Air Force and the First World War” is all about an “India’s first fighter pilot” who participated in the World War, long before the Indian Air Force was born.  The book has been written by author Stephen Barker, who describes in great detail, how challenging it was for an Indian to serve in the British armed forces, fighting racial discrimination – both institutional and interpersonal.

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Wednesday, August 3, 2022

CURRENT AFFAIRS SNIPPETS 02 AUGUST 2022

CURRENT AFFAIRS SNIPPETS

02nd August 2022

 

 

National News


India reported 330 deaths while cleaning septic tanks in 5 years: Government

The central government on Tuesday said 330 people died due to the cleaning of sewer and septic tanks from 2017-2021. However, Union Minister of State for Social Justice and Empowerment Ramdas Athawale added that there have been no deaths due to manual scavenging in the country. Uttar Pradesh reported the highest number of deaths at 47 from 2017 to 2021.

 


Maldives has special place in India's 'Neighbourhood First' policy: PM

PM Narendra Modi said on Tuesday that the Maldives occupies a special place in India's 'Neighbourhood First' policy. His remarks come amid Maldivian President Ibrahim Mohamed Solih's visit to India, which is Solih's third visit since assuming office in November 2018. Notably, India will extend an additional credit line of $100 million to the island nation, PM Modi confirmed today.


Can't compromise quality of education with 100% reservation: SC

Striking down the decision of the Jharkhand government reserving 100% teaching posts for locals in government-run tribal district schools, the Supreme Court said quality of education cannot be compromised due to reservation. Tribal teachers filed appeals after they were suddenly out of jobs. The non-tribal teachers called the state government's decision a violation of their fundamental rights.

 


IFS officer Shweta Singh appointed as Director in PMO

Indian Foreign Service (IFS) officer Shweta Singh was appointed as a Director in Prime Minister's Office (PMO), a Personnel Ministry order said on Tuesday. The Appointments Committee of the Cabinet (ACC) approved Singh's appointment for a period of three years. The ACC has cancelled the appointment of Aniket Govind Mandavgane as the Deputy Secretary in the PMO.


Prime Minister launch the IBU of Deutsche Bank at GIFT-IFSC 


The Gujarat International Finance-Tec City (GIFT City) in Ahmedabad is home to the Deutsche Bank AG's IFSC Banking Unit (IBU), which was opened by Prime Minister Narendra Modi.  The IBU will first offer financial products in the areas of trade finance, fixed income, and currencies, according to Deutsche Bank AG.  According to a release, the IBU will offer all authorised international finance products to Deutsche Bank's clients in India and abroad. Additionally, it will enable cash pooling and other deposit proposals for Indian and foreign clients within the parameters of the current regulations.


International News

 


Al-Zawahiri's death shows we can root out terror without war: Obama

Reacting to Al-Qaeda leader Ayman al-Zawahiri's death by US drone strike in Afghanistan, ex-US President Barack Obama said that the incident highlighted that it's possible to root out terrorism without being at war. "I hope it provides a small measure of peace to...9/11 families," he added. Zawahiri became Al-Qaeda's leader after Osama bin Laden was killed in 2011.


UN chief to visit Japan on 77th anniversary of atomic bombing

UN Secretary-General Antonio Guterres will attend the 77th anniversary of the world's first atomic bombing at the annual ceremony at Japan's Hiroshima Peace Memorial. "The ceremony aims to console the souls of those lost to...bombing...pray for...lasting world peace," UN spokesman Stephane Dujarric said. The US dropped the atomic bomb on Hiroshima on August 6, 1945, killing 1,40,000 people.
21 Chinese military planes enter Taiwan's air defence identification zone

Twenty-one Chinese military planes entered Taiwan's air defence identification zone shortly after US House Speaker Nancy Pelosi landed in Taipei on Tuesday, Taiwan said. Pelosi landed in Taiwan on Tuesday evening, defying a string of warnings from China. China called Pelosi's Taiwan visit "extremely dangerous" and said it will "launch a series of targeted military operations to counter this".


Japan, US, and South Korea participate in a missile defence drill


A joint ballistic missile defence exercise between South Korea, the US, and Japan will begin this week in the waters off Hawaii as part of increased security cooperation against North Korea's growing military threats, a media outlet claimed.  According to the sources, the biannual Pacific Dragon drill will take place. Australia and Canada will also take part in the exercise in the edition of 2022, in addition to the three other nations.  The exercise, which involves the mobilisation of eight warships and two planes, aims to improve coordination between the participating nations in the identification, tracking, and reporting of ballistic missile targets.  The exercise was planned after the defence chiefs of South Korea, the United States, and Japan decided to improve their security coordination during their trilateral meeting on June 11 in Singapore, which was held in conjunction with the annual Shangri-La Dialogue.


State News


WB to form 7 new districts, making a total of 30 districts 


The Mamata Banerjee-led West Bengal government has chosen to create seven new districts in the state in an effort to streamline administrative procedures. With this, there are currently 30 districts in West Bengal as a whole.  There used to be 23 districts in Bengal, but the number will become 30. Sunderban, Ichhemati, Ranaghat, Bishnupur, Jangipur, Behrampur, and one more district would be named in Basirhat are among the seven new districts, according to West Bengal Chief Minister Mamata Banerjee.


Appointments News


Auguste Tano Kouamé appoints World Bank's New Country Director for India 


The World Bank has appointed Auguste Tano Kouamé as the Country Director for India, effective. He replaces Junaid Kamal Ahmad who recently completed a five-year term.  He most recently served as the World Bank’s Country Director for the Republic of Türkiye, where he led the expansion of the Bank’s country program and deepened its support to Türkiye’s climate agenda.  Prior to this, he served as Director of the Department of Human Development and Economic Management in the World Bank Group’s Independent Evaluation Group (IEG) from January 2017 to April 2019.


Satyendra Prakash assume charges as new Principal DG, Press Information Bureau 


Senior Indian Information Service officer, Satyendra Prakash has been appointed as the Principal Director General of the Press Information Bureau (PIB).  A 1988 batch Indian Information Service (IIS) officer, Prakash, the Principal Director General of the Central Bureau of Communication, will succeed Jaideep Bhatnagar, who superannuated.


Agreements News


NSE and BSE approve of Zee’s merger with Sony Pictures 


The BSE and NSE stock exchanges have given Zee Entertainment their approval for Zee Entertainment’s proposed merger with Sony Pictures Networks India.  According to a statement by Zee Entertainment Enterprises Ltd., both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have accepted the planned merger with Culver Max Entertainment Private Limited (formerly Sony Pictures Networks India).  The stock exchanges’ approval is a decisive and encouraging step in the merger approval process as a whole.


BANKING, BUSINESS AND ECONOMY


India's trade deficit hits record high of $31 billion in July

India's merchandise trade deficit jumped to a new record high of $31.02 billion in July, Commerce Secretary BVR Subrahmanyam said on Tuesday. The previous record high was set in June 2022, when trade deficit was $26.18 billion. As per provisional data released by the Commerce Ministry, merchandise imports stood at $66.26 billion while exports stood at $35.24 billion in July.

 


Banks in India reported 248 data breaches in last 4 years: Govt

short by Ashley Paul / 10:56 pm on 02 Aug 2022,Tuesday

Banks in India reported 248 successful data breaches by hackers and miscreants between June 2018 and March 2022, Minister of State for Finance Bhagwat Karad said. Most of these data breaches pertain to card detail leakage and theft of business and non-business information, Karad said. Public sector banks reported 41 data breaches while private sector banks reported 205 data attacks.

 


October 1 set as the card tokenization deadline by RBI 


In a circular issued, the Reserve Bank of India (RBI), instructed all parties—aside from card networks and card issuers—to delete all previously stored Card-on-File (CoF) data by October 1, 2022.  The RBI has granted the respite in order to facilitate a smooth transition to a different payment system. In addition, the merchant and its PA involved in the online transaction may keep the data for a maximum of T+4 days or until the settlement date, whichever comes first, aside from the card issuer and the card network.


Schemes and Committees News


Monkeypox virus: Centre creates special task force under VK Paul


The Centre announced that it will set up a task force to keep track of monkeypox cases in India. Dr. VK Paul, Member (Health), Niti Aayog, will serve as the team's leader, and members will include the Secretaries of the Union Health Ministry, Pharma, and Biotech.  Dr. Paul countered that there was no need for excessive alarm but that society and the nation should remain on guard.  After India reported its first fatality from monkeypox, this step was taken. A man from Kerala who had tested positive for monkeypox in another nation passed away in Thrissur.


Awards News


Canadian Jeffrey Armstrong received the ‘Distinguished Indologist for 2021’ award


Canadian scholar, Jeffrey Armstrong has been awarded the Indian Council for Cultural Relations (ICCR) Distinguished Indologist for 2021. He has presented the award in a ceremony by Manish, India’s consul-general in Vancouver.  The citation for the award states that it has been conferred upon Armstrong “in recognition of his outstanding contribution to the study/teaching/research in India’s philosophy, thought, history, art, culture, Indian languages, literature, civilisation, society, etc”.  He becomes the seventh recipient of this award and joins the earlier recipients from Germany, China, Japan, the UK, South Korea and the USA.


Sports News


Stellar show: Anurag Thakur on Indian men's table tennis team's CWG 2022 gold

Sports Minister Anurag Thakur took to Twitter following defending champions India's gold medal win in men's table tennis team event at Commonwealth Games 2022 on Tuesday and wrote, "A stellar show by the Indian men's table tennis team." He added, "Exhilarated by the way, our paddlers led by Sharath Kamal, Sathiyan Gnanasekaran and Harmeet Desai outclassed the formidable Singapore 3-1."


They demonstrated great dexterity: PM after Indian women's lawn bowls team win gold

After India bagged gold in women's fours lawn bowls event at CWG, PM Narendra Modi tweeted, "Historic win in Birmingham...India is proud of Lovely Choubey, Pinki Singh, Nayanmoni Saikia and Rupa Rani Tirkey for bringing home the prestigious gold in lawn bowls." He added, "The team has demonstrated great dexterity and their success will motivate many Indians towards lawn bowls."

 

 


Commonwealth Games 2022: Weightlifter Harjinder Kaur claimed the bronze  medal 


India’s Harjinder Kaur claimed the bronze medal in the women’s 71kg weightlifting at the Commonwealth Games 2022 at Birmingham.  England’s Sarah Davies won gold with a Commonwealth Games record of 229kg, while young Alexis Ashworth of Canada won silver with a total lift of 214kg. '


Commonwealth Games 2022: In Judo, Shushila Devi Likmabam won the silver medal


Shushila Devi Likmabam got a silver in the women's judo 48kg final, giving India its seventh medal of the Commonwealth Games 2022.  Shushila had defeated Harriet Bonface in the quarterfinal, and notched up a second win by beating Priscilla Morand of Mauritius in the semis to assure herself a medal.  Sushila was in for a gold finish but came up short against South Africa's Michaela Whitebooi in the final.


Commonwealth Games 2022: In Judo, Vijay Kumar bagged the bronze medal


Vijay Kumar Yadav handed India second medal in Judo of the Commonwealth Games 2022 as he beat Petros Christodoulides of Cyprus in the men's 60kg tie to clinch bronze.  Earlier, India's Vijay Kumar Yadav defeated Dylon Munro of Scotland to enter the bronze medal match.  Vijay Kumar had earlier claimed a bronze medal at the Asian Open in Hong Kong in 2018. The same year he won the Commonwealth Championships in Jaipur and completed an encore in Walsall 2019.


Science and Technology News


Aurangabad: First smart city in India to receive data from Google's EIE 


The Environmental Insights Explorer (EIE) data from Google was officially released in Aurangabad on Wednesday, according to the Aurangabad Smart City Development Corporation Limited (ASCDCL).  This makes Aurangabad the first city in the nation to experience this. The data would aid research groups in formulating sustainable solutions for the city, according to ASCDCL authorities, who noted that the EIE dashboard for Aurangabad was introduced by Google during an event in New Delhi.


Nilekani Center established by IIT-M to promote Indian language technology 


The Nilekani Centre at AI4Bharat was established by the Indian Institute of Technology (IIT) Madras to advance the state of Indian language technology and make a positive social impact.  Rohini and Nandan Nilekani have donated Rs 36 crore through Nilekani Philanthropies to fund this Center, which was opened by Nandan Nilekani. IIT Madras launched the AI4Bharat programme to create open-source language AI for Indian languages.


Books and Authors News


Odisha CM Naveen Patnaik releases a book titled 'Lockdown Lyrics'


Odisha Chief Minister Naveen Patnaik has released a book titled Lockdown Lyrics’, a collection of poems written by Sanjukta Dash.  The poems are an unadulterated narration of the author’s experiences and exasperations during the pandemic. She has reflected all the trauma & tribulations and hope and aspirations of humanity during this most critical journey of society in a long time.


Important Days


World Lung Cancer Day observed globally on 01st August 


Every year, World Lung Cancer Day is observed on 01st August to raise awareness about the causes and treatment of lung cancer and highlight the issues of lack of sufficient research funding for the ailment. Lung cancer is one of the leading causes of cancer deaths among men and women.  The campaign was first organised in 2012 by the Forum of International Respiratory Societies (FIRS), in collaboration with the International Association for the Study of Lung Cancer (IASLC) and also the American College of Chest Physicians. The IASLC is the largest organisation in the world of its kind that only deals with lung cancer.


Muslim Women’s Rights Day 2022 observed on 01st August 


Muslim Women's Rights Day is observed every year on the 01st of August to celebrate the enforcement of the law against the 'Triple Talaq' rule among Muslims.  According to the Shariat or Muslim Personal Law, Muslim men were given the privilege to end their marriage anytime by uttering the word Talaq three times in a row. But the law was repealed by the Indian Government in 2019.  The day is celebrated to recognize and honour the enactment of the law against the Triple Talaq.  The Triple Talaq rule has been declared illegal by the Government of India under the Act of 2019, Protection of Marriage Rights. The Muslim women celebrate the day with utmost happiness and have welcomed the law wholeheartedly.


Obituaries News


Veteran bengali singer Nirmala Mishra passes away 


Renowned Bengali singer Nirmala Mishra has passed away. She was 81. She was born in 1938 in West Bengal’s South 24 Parganas district. She sang various songs in Bengali, Odia, and Assamese films.  Her melodies in the Bengali language include ‘Eamon Ekta Jhinuk’, ‘Bolo to Arshi’ and ‘Eai Banglar Mati Te’.  The West Bengal government has also awarded her ‘Sangeet Samman’, ‘Sangeet Mahasamman’ and ‘Bangabhibhushan’ awards. She has been conferred with the Sangeet Sudhakar Balakrushna Das Award for her lifetime contribution to Odia music.


Former Philippine Prez Fidel Valdez Ramos passes away


Former Philippine President Fidel Valdez Ramos, has passed away due to the complications of COVID-19. He was 94. Ramos served as the 12th president of the Philippines from 1992 to 1998. He was a military officer by profession.  During his tenure, the Philippines was recognized as a budding “tiger economy”. Ramos became a hero to many for defecting from Marcos’s government, in which he led the national police force, spurring the dictator’s ownfall during the 1986 popular uprising against his rule. 

 

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Tuesday, May 31, 2022

SIDBI INTERVIEW - MSME TERM LOANS PROPOSAL ASSESSMENT... 31.5.2022


 

TERM LOAN PROPOSAL

UNION BANK

Appraisal of MSME proposals has four distinct stages:

  • Conducting Due Diligence about the promoters & the proposed activity.
  • Conducting Techno-economic Feasibility Study.
  • Undertaking Financial appraisal & assessing Credit Requirements.
  • Credit Risk Rating, Compliance of Takeover Codes & Decision Making.

Loan proposals falling within the delegation of the Branch are sanctioned and disposed off at Branch level.

The bank has set up SARAL / SARAL LITE CENTRES at its various Regional Offices, where all activities are attended under Single Window Concept in liaison with the concerned branch with a view to quicken the decision making process, For proposals above Branch Heads delegation, processing is done at Sarals, wherever they are operational.

Where Saral / SARAL Lite are not operational, the proposals are sent by branches through Credit Department of respective Regional Offices to Sanctioning Authority under copies to Controlling Offices.

Working Capital requirement of Micro & Small Enterprises borrower uptoRs 5.00 crores is assessed based on Turnover Method, in which 25% of the Projected Achievable Sales Turnover is computed as Working Capital Requirement, of which 20% is provided by the bank & balance 5% is to be brought by way of promoter's contribution towards margin money.

Working Capital requirement of MSE borrower above Rs 5.00 crores is assessed based on Flexible Bank Finance Method, which is an extension of Permissible Bank Finance Method with customer friendly approach in as much as the scope of Current Assets is made broad based and for evaluating projected liquidity, acceptable level of Current Ratio is taken at 1.15:1 against benchmark level of 1.33:1. The assessment of credit requirement is made based on the projected study of the borrowers business operations vis-a-vis the production / processing cycle of the industry. The projected levels of inventory & receivables are examined in relation to the past trend, market development & industry trend. An uniform Classification for Current Assets & Current Liabilities is adopted on the terms given in the CMA data Format.


In case of Specific Industries / Seasonal Industries such as Software Development, Construction Industry, Film Industry, Sugar, Fertilizers etc. assessment of Working Capital including Short Term Loans can be made based on Cash Budget Method. In such cases apart from projected profitability, liquidity, gearing & fund flows; projected cash flows are accounted for to compute Working Capital Finance.

Term Loans are appraised based on viability of projects after judging Debt Repayment Capacity, Break Even Capacity, Internal Rate of Return, Debt Equity Ratio, Fixed Assets Coverage Ratio etc.

 

 

Term Loan Appraisal

The primary task of a lending institutions before granting a term loan is to    assure itself that the anticipated rise in the income of the borrowing unit would  materialize, thus providing the necessary funds for repaying the loans according to the terms of amortization. The liquidity of term loans depends not so much on the short-run sale ability of the goods and commodities as on the increased term loan income of borrowing units resulting from a higher level of  utilization  of existing installed capacity. For assessing the risks involved in term lending, the normal criteria used for judging the soundness of short-term loans are often unreliable and inadequate. The methods of analysis and the standard to be adopted for appraisal of term loans are more similar to investment decisions than to short-term lending. Appraisal of term-loans requires a dynamic approach involving, inter alia, a projection of future trends of output, sales, and estimates of costs, returns and flow of funds. Appraisal of term loans depends to a large extent on estimates of forecasts. Its purpose is not to set down a categorical statement of the long-range prospects of an industrial unit but only to provide broad guide outlines to the financial institutions.

Term Loan Appraisal - Loan appraisal process

The practice of making an appraisal of term loan applications on modern scientific lines has not made much progress in India. This is partly due to the fact that mainly the larger banks give such loans to highly credit-worthy constituents and hence no elaborate enquiry is considered necessary. The need for such appraisals is now being increasingly felt with the expansion of term lending. There cannot be a fixed or  standardized  approach to appraisal. Numerous and diverse elements enter into the process. It is difficult to have a cut and dried formula with the help of which a loan proposal can be considered; straightaway as acceptable or unacceptable. While the same set of factors is taken into consideration in the scrutiny of individual applications. The weightage given to the several factors varies from case to case. The more important factors among these are: the type of organisation and activity of the borrowing unit, the nature of its’ product and its market potentiality, its size, the quality of its management, soundness of financial position, the amount and, term of the loan required and its repayment schedule.

Financial institutions are usually inclined to adopt the criterion of profitability rather than that of’ ‘development’ in extending term loans. In other words, they are concerned mainly with the commercial profitability of a project as determined by the level of prospective profits and its ratio to invested capital of the borrowing unit and not with its broad economic significance or importance in the development of the resources of the economy. Commercial profitability could sometimes be more apparent than real. The extent of state support and the manner in which it is made available in the form of import controls, protective duties, subsidies, tax rebates and other concessions have considerable bearing on the profit prospects of certain industries. To the extent that the profitability of a project is conditional in the continuance of such support, appropriate allowance has to be made by the lending institution in the appraisal of the project. A number of other aspects of the State policy such as transport rates, prices and wage limits, export promotion, exchange regulations require due attention of the lending institutions while appraising term loam.

Term Loan Appraisal Procedure

There are four broad aspects of term loan appraisal, namely, technical feasibility, economic feasibility, managerial competence and financial or commercial feasibility. A brief account of each of these aspects follows.

1. Technical Feasibility

The examination of this aspect requires an assessment of the goods and services needed for the project-land, housing, transportation, raw materials, supplies, fuel, power, water, etc. The financial institution has to satisfy itself that these requirements are available. Where they are not domestically available and have to be imported, conditions foreign market as well as government policy at home in terms of availability of foreign exchange calls for a review. The location of the project is highly to its technical feasibility and hence special attention is paid to this feature. In fact, the accessibility to the various resources has meaning only with reference to location. Another important feature of technical feasibility relates to the type of technology to be adopted for the project. In case new technical processes are adopted from abroad, attention is paid to the differences in conditions. The dangers of hasty adoption of new techniques are quite substantial in an underdeveloped country. It is, therefore, desirable for lending institutions to make use of the services of technical personnel.

2. Economic Feasibility

This aspect relates to the determination of the extent of absorption of the output of the new unit or the additional production from an established unit at given prices. In other words, it takes account of the total output of the product concerned and the existing demand for it with a view to establishing whether there is an unsatisfied demand for the product. Two general indicators of the existence of unsatisfied demand are the price level and the prevalence of controls. It is necessary to know specifically whether the unsatisfied demand is ephemeral or genuine. The study goes beyond immediate prospects. Possible future changes In the volume and pattern of supply and demand will have to be estimated in order to assess the long-run prospects of the industry as well as earning capacity of the unit.

Projection or forecasting of demand is a complicated matter though of vital importance. The demand for a product is affected by a variety of factors and it may be difficult to take account of all these. If information concerning the demand for a product in the past is available, projections of demand over a period of years can be made on the basis of assumptions concerning future trend of all prices and incomes, particularly in the case of consumer goods industry. The projection of demand for intermediate goods (goods used as inputs for further production) and capital goods is more complicated because the demand for such goods is affected by changes in incomes and prices only indirectly. Often intermediate and capital goods have multiple uses, being needed in several lines of production, and hence it is necessary to take into account inter-industry relationships also.

Estimations of demand can never be wholly accurate or absolutely reliable; they can at best be considered as approximations.

3. Managerial Competence

The confidence of the lending institution in repayment prospects of a loan is largely conditioned by its opinion of the borrowing unit’s management. It has, therefore, been remarked that appraisal of management is the touchstone of term credit analysis. Where the technical competence, administrative ability, integrity and resourcefulness of the management are well established, the loan application gets the most favorable consideration.

4. Financial or Commercial Feasibility

The financial appraisal is designed to seek answers to the following questions:

1.     Whether the estimates of the cost of the project fully cover all items of expenditure and are realistic.

2.     Whether the sources of finance contemplated by the sponsors of the project will be adequate and the necessary finance will be available during the period of construction as per their schedule.

3.     What is the likely impact of the project on the level of production, sales, net earnings, borrowings, costs, etc. of the borrowing unit? Or, when can the project be expected to break-even (with offsetting expenditure) and start yielding profit?

4.     What time should be fixed for starting of repayment over a period to be determined in the light of the financial capacity of the borrowers ” arising from increased output and income?

The magnitude of the available surplus and other cash accruals to meet the interest and principal repayments (called as debt service coverage) is an essential point for investigation in deciding the period of amortization.

The financial position of the concern has to be examined during the sanctioning of the loan. For having a proper perspective of the financial position of the concern, it is not sufficient to consider a single year’s performance as revealed in the balance sheet and profit and loss account. On the other hand, a dynamic view has to be taken of the organisation in the next few years.

Term lending institutions follow different methods in obtaining the financial data. Some use comprehensive application form calling for particulars of different aspects of the projects presented for financing, others use a simple preliminary application form to judge whether the schedule of the application is prima facie feasible and later on follow-up by a comprehensive form. Quite often, the lending institutions adopt the interview method for eliciting as many details and particulars of the schedule as possible.

The basic data required for a financial analysis can be grouped under the following heads:

1.     Cost of the project.

2.     Cost of production and profitability.

3.     Cash-flow estimates during the currency of loan.

4.     Pro-forma balance sheets.

Term lending institutions have to critically analyse the data obtained from the borrowers with a view to ensuring that:

1.     The estimated cost of the project is reasonable and the project has a fair chance of  materializing;

2.     The financial arrangement is comprehensive without leaving any gaps and ensures cash availabilities as and when needed;

3.     The estimates of earnings and operating costs are as realistic as circumstances permit; and

4.     The borrower’s repaying ability, as judged from the project operations, exists with a reasonable margin of safety .

https://www.mbaknol.com/business-finance/term-loan-appraisal/