Banking Current Affairs on 21st June
United Bank of India mulling to shift treasury department to Mumbai
1. Kolkata-based lender United Bank of India is mulling at shifting its treasury department to the financial capital of the country in order to stay closer to the market.
2. Srinivas said shifting of operations will help its treasury department to increase their knowledge base and increase interactions with the market players who are all based in Mumbai.
3. Out of the 27 state-run banks, only three public sector banks have their treasury base out of Mumbai.
4. Indian Bank and Indian Overseas Bank have their treasury departments in Chennai while Oriental Bank of Commerce has in Gurgaon.
5. Punjab National Bank shifted its treasury department around three years back to Mumbai
Payments through mobile banking platform to reach USD 100 billion: HSBC
1. Corporates are increasingly using mobile banking, according to HSBC, and it expects global payments through its mobile banking platform to touch USD 100 billion in the next 18 months.
2. "Since the launch of the HSBCnet Mobile app, we've seen a marked increase in the use of smartphones and tablets by our corporate customers. At the current rate of growth, we expect to reach USD 100 billion in global payments in the next 18 months," HSBC Regional Head of Global Payments and Cash Management Kee Joo Wong said.
IFC & GIC likely to pump Rs 500 crore more into Bandhan
1. Multilateral financier International Finance Corporation (IFC) and the Singapore government-backed GIC are likely to raise their investments in Bandhan after it got the final banking licence by the Reserve Bank of India.
2. The global investors may pump in fresh Rs 500 crore equity, making it their second round of stake buy in the company this fiscal. IFC, GIC and state-run Small Industries Development Bank of India invested Rs 1,020 crore in the Kolkata (Head Office of Bandhan Bank) based small lender in May.
3. Bandhan said that it would begin banking operations on August 23
4. Bandhan had received Rs 640.87 crore from GIC in May, while IFC has put in Rs 344 crore. Sidbi has invested Rs 35 crore in the Kolkata-based lender, which is India's first microfinance company to transform into a bank.
5. Bandhan Bank would start its journey with 500-600 branches and Rs 11,000-crore loan book. It would be present in 27 Indian states. All the existing microfinance businesses of the company and clients will be transferred to the bank.
6. There will be two distinct layers of business for the new bank. The first, which it will call 'micro banking', will be based on its proven expertise in the small loan business. The second vertical would be general banking, which would include SME, MSME, auto and small housing loans.
