BANKING & FINANCE NEWS 1st January 2017

By: D.K Choudhary
Lakshmi Vilas Bank launches QIP to raise about Rs 600 crore
i. Private sector lender Lakshmi Vilas Bank has launched Qualified Institutional Placement (QIP) to raise over Rs. 599.88 Crore by issuing 4.25 crore shares in domestic or international markets.
ii. During a meeting of the committee of directors for capital raising of the bank, on December 28, 2016, approved the floor price for the QIP issue at Rs. 141.15 per equity share. The bank may offer a discount of not more than 5% on the floor price calculated on the QIP.
iii. The bank had earlier in May, informed about its plan to raise funds in one or more public or private offerings in domestic and/or international markets, either in the form of Qualified Institutional Placement (QIP) or Qualified Institutional Buyers (QIBs).
iv. Qualified institutional placement (QIP) is a capital-raising tool in which a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified institutional buyer (QIB).
Lakshmi Vilas Bank
♦ This bank was founded by a group of seven businessmen of Karur under the leadership of Shri V.S.N. Ramalinga Chettiar. The objective of the bank is to cater to the financial needs of people in and around Karur who were occupied in trading businesses, industry and agriculture.
♦ Headquarters: India
♦ CEO: Parthasarathi Mukherjee
♦ Founded: 1926
BoB launches agriculture investment credit scheme in Rajasthan
Indian state-owned banking and financial services company Bank of Baroda has launched an agricultural investment credit for the farmers in Sri Ganganagar, Rajasthan on December 31, 2016
Aim :To help the farmers in doubling their income by the year 2022
About Investment Credit Scheme :
i. Farmers can avail of loan from the bank’s branches for construction of farm ponds, BoB exhibited Highest Ever Loss by a PSBinstallation of solar pumps, installation of micro irrigation and allied activities under this scheme.
ii. Farmers will be incentivise for timely repayment of loan under the scheme.
Bank of Baroda :
♦ Headquarters: Vadodara
♦ CEO: P. S. Jayakumar
RBI Extends Period of Enhanced Payment Instruments (PPI) limit
i. The Reserve Bank of India (RBI) has extended the period of enhanced Prepaid Payment Instruments (PPI) limit of Rs 20,000 to meet the needs of people to perform digital payments.
ii. The Bank is undertaking a comprehensive review of the guidelines and framework for Prepaid Payment Instruments (PPI) issuance in the country, and so it has been decided to extend the measures till the completion of review of the PPI guidelines.
iii. While the balance in such PPIs cannot exceed Rs 20,000 at any point of time and the merchants can transfer funds from such PPIs to their own linked bank accounts up to Rs 50,000 per month, without any limit per transaction.
RBI Relaxes ATM Withdrawal from Rs. 2500 to Rs. 4500
i. The Reserve Bank of India has relaxed the daily ATM withdrawal limit to Rs 4500 from the limit of Rs 2500. The new limit would be applicable from January 1, 2017.
ii. However, the weekly withdrawal limit of Rs 24,000 remains unchanged.
iii. The Reserve Bank of India has also asked banks to ensure that disbursals on ATMs should predominantly be in the denomination of Rs 500.
♦ Headquarter: Mumbai, Maharashtra
♦ Founded: April 1, 1935,
♦ Governer: Urjit Patel
Centre extends deadline for Direct Tax Dispute Resolution Scheme
i. The Centre on December 30 announced that it has extended the last date for availing the Direct Tax Dispute Resolution Scheme to January 31, 2017 from the earlier deadline of December 31, 2016.
ii. The scheme aims to settle the retrospective tax disputes with the Government.
iii. The Direct Tax Dispute Resolution scheme, announced by Finance Minister Arun Jaitley in the budget for 2016-17, came into force on June 1, 2016.
iv. It aims to end nearly 2.6 lakh pending tax cases where Rs 5.16 lakh crore are locked in and drop interest and penalties if the principal amount involved in retrospective tax cases is paid.
v. A firm availing of the scheme will have to pay the principal tax amount within 30 days to the designated authority determining the amount payable by the declarant.

About D.K Chaudhary

Polityadda the Vision does not only “train” candidates for the Civil Services, it makes them effective members of a Knowledge Community. Polityadda the Vision enrolls candidates possessing the necessary potential to compete at the Civil Services Examination. It organizes them in the form of a fraternity striving to achieve success in the Civil Services Exam. Content Publish By D.K. Chaudhary

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