Current Affairs India - 23 July 2014

1. The Reserve Bank of India has set out a framework today for identifying and dealing with large banks, termed domestic systemically important banks or D-SIBs. A size beyond 2% of GDP will be one of the criteria for identifying a bank as a D-SIB and it will be subject to higher capital requirements, as per the Reserve Bank of India. The other three criteria for designating a bank as a D-SIB are: interconnectedness; lack of readily available substitutes or financial institution infrastructure; and complexity.


D-SIBs are perceived as banks that are -Too Big To Fail-. This perception creates an expectation of government support for these banks at the time of distress, So RBI wants to impose additional policy measures for these SIBs to deal with the systemic risks and possible crisis that may arise.


For this purpose, these banks will be categorized into five buckets based on their systemic importance scores and additional policy measures including higher capital charge will be applied to them. These additional policy measures will be applicable from 1st April 2016 in a phased manner and will be fully effective from 1st April 2019.


2. Consumer confidence level in India jumped by seven points to 128 in second quarter of the current year compared to 121 in the previous quarter, according to a global consumer confidence index study by Nielsen. India is now ranked as the most optimistic country followed by Indonesia and the Philippines which is better than second rank in the previous quarter. Newly elected central government with absolute majority is the main reason for this improvement.


3. The Chief Minister of Meghalaya, Dr Mukul Sangma launched a mass enrolment drive under the Chief Minister's Social Assistance (CMSA) Scheme today for widows and persons with disabilities at Patharkhmah in Ri Bhoi District in Meghalaya. Each beneficiary shall be given a financial assistance of 500 rupees per month under the scheme.


The Chief Minister's Social Assistance (CMSA) Scheme was launched in Asanang in West Garo Hills in the year 2012. Financial aid of 500 rupees per month is given to the beneficiaries of the scheme. There is no age bar for persons with disabilities, but for widow the age bar is 58 years while for man it is 60 years.


4. Arijit Basu, currently the Deputy Managing Director of State Bank of India, has been appointed as the Managing Director and Chief Executive Officer of SBI Life Insurance. He will succeed Atanu Sen who is due to retire on 31st July and take over charge in August.


5. Santanu Mukherjee has been appointed the Managing Director of State Bank of Hyderabad (SBH). He joined State Bank of Hyderabad as a Probationary Officer and served the Bank in various capacities and also held various important assignments (domestic as well as foreign) in the SBI group.


6. India-s largest IT services company Tata Consultancy Services has become the first Indian company to touch market capitalisation of Rs. 5 lakh crore. Shares of TCS jumped by 2.21% today to close at its 52-week high value of Rs.2,586.9. At the closing price, TCS- market capitalization stood at to Rs. 5,06,703 crore. TCS is followed by ONGC (Rs 3.5 lakh crore) and Reliance Industries (Rs 3.3 lakh crore).


Among IT companies, TCS' market cap is more than the combined market cap of the next four largest Indian companies -- Infosys (Rs 1.90 lakh crore), Wipro (Rs 1.39 lakh crore) and HCL Tech (Rs 1.07 lakh crore) and Tech Mahindra (Rs 45,000 crore.