Weekly News Snippet - Edition 48
Poornatha (Business & Leadership Education Company)
Business and Leadership Education Company
Key highlights:?
MSME:?
1.????? IndusInd Bank roots for MSME growth and success with focused banking initiatives.
2.????? Government mulls new bank to bridge credit gap for MSMEs.
3.????? Government launches initiatives to boost online trading of MSMEs, credit access for women-led businesses.
Banking:?
1.????? Government panel recommends Challa Sreenivasulu Setty as next SBI Chairman.
2.????? Employee associations demand merger of RRBs with respective sponsor banks.
3.????? Work towards reaching last mile: DFS Secretary asks CEOs of PSU banks.
Finance:?
1.????? Indian banks' gross NPA ratio at multi-year low of 2.8%, net NPA down to 0.6% in FY24: RBI Fin Stability Report.
2.????? Over 40% people prioritise savings; house buying, education key reasons: Survey.
I. MSME:
1.?IndusInd Bank Empowers MSME:
On International MSME Day (27.06.2024), IndusInd Bank launched the "Level Up" knowledge series to support Micro, Small, and Medium Enterprises (MSMEs) in India. This series features successful business leaders sharing insights on strategic planning, financial management, digital transformation, and market expansion. Additionally, IndusInd Bank has implemented various MSME-focused initiatives and established 126 MSME Hubs across India to help these businesses grow and thrive in competitive markets. 1
2.?Separate MSME Bank:
The government is considering a proposal to set up a separate bank for direct lending to the Micro, Small and Medium Enterprises (MSMEs) to deepen credit flows to the under-penetrated sector and thereby boost economic activity and job creation. Currently, the Small Industries Development Bank of India (SIDBI) provides largely refinance to banks that lend to MSMEs, letting the cost of finance to these units reduce. “A separate bank which understands the needs and the working of the MSMEs is required,” said Sandip Kishore Jain, President of the Federation of Indian Micro and Small & Medium Enterprises. 2 ?
3.?MSME Initiatives:
Union Minister of Micro, Small and Medium Enterprises (MSMEs), Jitan Ram Manjhi, launched two initiatives on International MSME Day in Delhi. The first, 'MSME Trade Enablement and Marketing (TEAM)', facilitates small businesses in engaging in online trade through the ONDC platform. The second initiative, 'Yashaswini', aims to empower informal women-led businesses by enhancing access to capital and providing opportunities to formalize and engage in larger-scale trade with corporations. 3 ?
II. Banking:
1.?SBI Chairman Selection:
领英推荐
Financial Services Institutions Bureau (FSIB) interfaced with 3 candidates on June 29, 2024 for the position of Chairman in State Bank of India," the panel said in a release. The Bureau added that taking performance and experience into consideration, Chella Sreenivasulu Setty, was their choice for the Chairman position. 4
2.??Merger Demand for RRBs:
Bank employee associations have demanded before Union Finance Minister, Smt. Nirmala Sitharaman to merge Regional Rural Banks (RRBs) with their respective sponsor banks to ensure overall efficiency and viability of the banking sector. The proactive step of merging RRBs with their respective sponsor banks will facilitate enhanced supervision, governance, and accountability, ensuring greater sustainability of the entire banking sector,” the joint statement said. 5????
3.?Strengthening Financial Inclusion:
Financial Services Secretary, Vivek Joshi asked CEOs of Public Sector Banks (PSBs) to industriously work towards reaching the last mile to further strengthen financial inclusion initiatives taken by the government. While reviewing progress of various flagship financial inclusion schemes of the government, he requested banks to give more thrust on improving customer experience across Banking services. 6
III. Finance:
1.?Indian Bank’s NPA Performance:
The Reserve Bank of India (RBI) reported that Indian Banks' gross NPA ratio reached a multi-year low of 2.8%, with net NPA at 0.6% by March 2024. The global economy faces risks from geopolitical tensions and high public debt, but India's financial system remains robust, supporting economic growth through sustained credit expansion, the RBI said. 7
2.?Savings Trends and Financial Awareness:
A latest survey by Moneyview highlighted the savings inclination among people today for achieving financial security and realizing personal aspirations. The survey revealed that more than 2 out of 5 respondents prioritize savings indicating a growing awareness of financial stability. Those with higher income levels exhibit a stronger inclination towards savings. Notably, 72 per cent of respondents with incomes above Rs 50,000 are actively saving, compared to 51 per cent of those earning less than Rs 30,000. Further, people above 30 years tend to save almost 25 per cent of their income while those below 30 years save only 10-15 per cent. 8
Bibliography: