Weekly News Snippet - Edition 66

Key highlights:??

MSME:??

1. TReDS bill financing crosses Rs 2-lakh crore mark.?
2. Bengal hopeful of surpassing Rs 1.53 lakh crore credit target for MSMEs in FY’25.? ?

Banking:??

1. RBL Bank re-appoints R. Subramaniakumar as MD & CEO for a period of 3 years.?
2. Banks post sixth year of profit growth in FY24, bad loans decline further.?

Finance:??

1. India witnessing 30 million new demat accounts annually, 1 in 4 now a women investor.?
2. UTI AMC opens 16 new financial centres.? ?

I. MSME:?

TReDS Financing Crosses ? 2 Lakh Crores:?TReDS (Trade Receivables Electronic Discounting System) is a Reserve Bank of India (RBI) initiative supported by the MSME Ministry. It facilitates the financing and discounting of MSME trade receivables through multiple financiers. RBI data showed that at the end of October 2024, the platform financed nearly 1,00,000 bills, with a combined value of ? 2.08 lakh crores. 1? ?

MSME Credit Surge:?The West Bengal Government expressed optimism about surpassing its ? 1.53 lakh crore credit target for the Micro, Small, and Medium Enterprises (MSMEs) sector in the state for the 2024-25 fiscal. Achieving this milestone would reflect a 7.7 per cent credit growth for the sector over the previous fiscal year. The credit flow to MSMEs stood at ? 1.42 lakh crore in the previous fiscal. 2? ?

II. Banking:?

Reappointment of MD & CEO:?RBL Bank said its Board of Directors has reappointed R. Subramaniakumar, the current Managing Director and Chief Executive Officer (MD and CEO) of the bank, for a period of three years, effective June 23, 2025. The reappointment is, however, subject to approval from the Reserve Bank of India (RBI). 3? ??

Banking Profit Surge:?Commercial banks in India reported a sixth consecutive year of rise in their net profits in 2023-24 while bad loans continued to fall, according to the Reserve Bank of India’s (RBI’s) annual publication “Trends and Progress of Banking in India”. At the same time banks borrowed at higher interest rates and increased their deposit rates to bridge the credit-deposit growth gap in FY24. 4?

III. Finance:?

Demat Account Growth:?India is seeing at least 30 million new demat accounts opened annually since 2021, with one in four now women investors, indicating growing use of capital markets for financializing savings, SBI Research said. The report noted total demat accounts surpassed 150 million in FY24, up from 22 million in FY14. 5?

UTI AMC Opens Financial Centres:?UTI Asset Management Company has opened 16 new UTI Financial Centres. The centres are strategically located across North, South and East India, making services more accessible to customers in these regions. Mr. Imtaiyazur Rahman, MD and CEO said “The expansion reflects UTI MF commitment to long term vision of enhancing awareness and making mutual fund investments accessible to a wider audience. 6?

Bibliography:?

1. https://cfo.economictimes.indiatimes.com/news/policy/treds-bill-financing-crosses-rs-2-lakh-crore-mark/116522715?utm_source=newslisting&utm_medium=latestNews?
2. https://www.financialexpress.com/business/sme-bengal-hopeful-of-surpassing-rs-1-53-lakh-crore-credit-target-for-msmes-in-fy25-3696913/?
3. https://www.business-standard.com/industry/banking/rbl-bank-re-appoints-r-subramaniakumar-as-md-and-ceo-for-a-period-of-3-yrs-124121600796_1.html?
4. https://www.business-standard.com/industry/banking/banks-post-sixth-year-of-profit-growth-in-fy24-bad-loans-decline-further-124122601011_1.html?
5. https://bfsi.economictimes.indiatimes.com/news/financial-services/india-witnessing-30-mn-new-demat-accounts-annually-1-in-4-now-a-women-investor/116590633?utm_source=Mailer&utm_medium=newsletter&utm_campaign=etbfsi_news_2024-12-24&dt=2024-12-24&em=YXJ1bkBwb29ybmF0aGEuY29t?
6. https://www.thehindubusinessline.com/companies/uti-mf-opens-16-new-financial-centres/article69028776.ece?