Weekly news Snippet - Edition 38

Key highlights:?

MSME:?

1.?Growth in loans given by Non-Banking Financial Companies (NBFCs) to the MSME sector was more than three times that of banks.

2.?Since 2017, the Uttar Pradesh state government has distributed loans of Rs. 6,55,684 crores among MSME units.

3. Export boosts have become a top priority for the central government.

Banking:?

1.?Finance Minister Nirmala Sitharaman on 30th Dec held a meeting with the heads of Public Sector Banks and reviewed their financial performance.

2.?AU Small Finance Bank on 04th Jan reported a 20% year-on-year growth in advances while its deposit mobilization grew 31% at the end of December.

Finance:?

1.?State Bank of India (SBI) on 04th Jan said that it has successfully placed $250 million senior unsecured green floating rate notes.

2.?The Central government on 31st Dec appointed former NITI Aayog Vice Chairman Arvind Panagariya as the Chairman of the 16th Finance Commission.

I. MSME:

1.?Credit to MSMEs:

Growth in loans given by Non-Banking Financial Companies (NBFCs) to the MSME sector was more than three times that of banks, benefitting from their ability to offer customized financing solutions, said the Reserve Bank of India (RBI) on 03rd Jan. 1

2.?Growth of MSMEs:

Since 2017, the Uttar Pradesh state government has distributed loans of Rs. 6,55,684 crores among MSME units. The sector provided employment to 2.5 crore people during the period.2

3.?Boost for MSMEs:

Export boosts have become a top priority for the central government. And Indian MSMEs are the focal point for this priority. MSMEs can leverage various opportunities in the modern age exports business.3

II. Banking:

1.?PSB Financial Performance:

Finance Minister Nirmala Sitharaman on 30th Dec held a meeting with the heads of Public Sector Banks and reviewed their financial performance. During the meeting, concerns related to cyber security and the risks on the financial sector were discussed.4

2.?Profit/Loss:

AU Small Finance Bank on 04th Jan reported a 20% year-on-year growth in advances while its deposit mobilization grew 31% at the end of December, outpacing credit growth. The largest small finance bank saw its advance portfolio rising to Rs. 67624 crores while gross deposits were at Rs. 80120 crores.5

III. Finance:

1.?Green floating rate notes:

State Bank of India (SBI) on 04th Jan said that it has successfully placed $250 million senior unsecured green floating rate notes, referred to as ‘Green Notes’, which mature on December 29, 2028. This is part of SBI’s $10 billion medium-term note program and was raised through private placement facilitated by the lender’s London branch.6

2.?Change in Leadership:

The Central government on 31st Dec appointed former NITI Aayog Vice Chairman Arvind Panagariya as the Chairman of the 16th Finance Commission. As per a notification issued by the Ministry of Finance’s Department of Economic Affairs, Indian Administrative Service (IAS) officer Ritvik Ranjanam Pandey will be the secretary to the Commission.7

Bibliography:

1.?financialexpress.com/business/sme/nbfc-credit-growth-to-msmes-more-than-3x-that-of-banks-rbi-report/3349030/

2.?timesofindia.indiatimes.com/city/lucknow/msme-sector-in-uttar-pradesh-loans-worth-65l-crore-distributed-25cr-jobs-created/articleshow/106530572.cms

3.?smestreet.in/smestreet-exclusive/opportunity-of-boosting-exports-in-2024-for-indian-msmes-2318765

4.?livemint.com/industry/banking/nirmala-sitharaman-directs-psbs-to-ensure-monitoring-of-large-accounts-enhance-diligence-of-loan-disbursement-11703951934565.html

5.?economictimes.indiatimes.com/industry/banking/finance/banking/au-small-finance-bank-reports-20-credit-growth-31-deposit-growth/articleshow/106535259.cms

6.?business-standard.com/finance/news/state-bank-of-india-concludes-placement-of-250-million-green-bond-124010401209_1.html?

7.?indianexpress.com/article/business/economy/centre-appoints-arvind-panagariya-as-chairman-of-16th-finance-commission-9089959/