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The <keyword id="19919399" type="General" weightage="20" keywordseo="Asian-Development-Bank" source="keywords" meta.keywordsubtype="org" meta.entityname="Asian Development Bank" meta.hostid="153" meta.entityid="Asian Development Bank">Asian Development Bank</keyword> (ADB) on Wednesday maintained India's <keyword id="20540008" type="General" weightage="20" keywordseo="GDP-growth-forecast" source="keywords">GDP growth forecast</keyword> at 7 per cent for the current financial year, citing that a rebound in agriculture is expected given above-normal <keyword id="22442671" type="General" weightage="20" keywordseo="monsoon-projections" source="keywords">monsoon projections</keyword>. The ADB forecast comes a day after the International Monetary Fund revised upward its GDP growth projections for India to 7 per cent compared to 6.8 per cent projected in April. Last month, the Reserve Bank of India (RBI) revised upward its growth forecast to 7.2 per cent, from 7 per cent estimated earlier. The <keyword id="19948184" type="General" weightage="20" keywordseo="Indian-economy" source="keywords">Indian economy</keyword> is on track to grow by 7 per cent in FY2024 (ending 31 March 2025) and 7.2 per cent in FY2025 (next financial year), as projected in ADO April 2024, said the July edition of the Asian Development Outlook (ADO). The Indian economy logged a growth rate of 8.2 per cent for the financial year ended March 2024, as against 7 per cent in the previous fiscal year. Services continued to expand robustly in Q4 of FY24, and the forward-looking services PMI is well above its long-term average, it said, adding, industry is also expected to grow robustly, driven by manufacturing and strong demand for construction led by housing, it said. "After muted growth in FY2023 (previous fiscal), a rebound in agriculture is expected given the above-normal monsoon projections. This is notwithstanding the slower advance of monsoon in June. A rebound in agriculture will be important to sustain growth momentum in rural areas," it said. Investment demand continues to be strong, led by public investments and bank credit is fueling robust housing demand and improving private investment demand, it said. However, it said, export growth will continue to be led by services, with merchandise exports showing relatively weaker growth. The stronger-than-expected fiscal position of the central government could provide a further boost to growth, it said. However, the report said, this must be weighed against downside risks arising from weather events and geopolitical shocks. With regard to inflation, ADO has also retained its forecast at 4.6 per cent for the current financial year and expects it to marginally decline to 4.5 per cent next fiscal. With regard to developing Asia's growth forecast, ADO said, it is revised up to 5 per cent in 2024 and maintained at 4.9 per cent in 2025. Growth projections remain broadly unchanged with respect to ADO April 2024, it said, adding, resilient domestic demand along with improved exports and manufacturing will support growth this year. The region's 2024 growth forecast has been marginally adjusted up by 0.1 percentage points due to upward revisions in the Caucasus and Central Asia along with East Asia, it said. Meanwhile, the inflation forecast for the region has fallen to 2.9 per cent in 2024, largely due to downward revisions in China and the Caucasus and Central Asia, which offset a slight increase in South Asia, it said.

Monsoon projections to ensure India's GDP growth forecast remains at 7% for FY'25: Asian Development Bank

In a bid to bolster the safety and security of <keyword id="19989657" type="General" weightage="20" keywordseo="digital-payments" source="keywords">digital payments</keyword> and enhance regulatory frameworks, the Reserve Bank of India (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>) unveiled a series of proposals aimed at fostering innovation, inclusivity, and efficiency in the financial ecosystem. These initiatives, announced by RBI Governor <keyword id="19913110" type="General" weightage="20" keywordseo="shaktikanta-das" source="keywords">Shaktikanta Das</keyword>, signify the central bank's commitment to fortifying India's digital infrastructure and promoting a conducive environment for financial transactions. One of the key announcements made by Governor Das pertained to the establishment of a Digital Payments <keyword id="21971766" type="General" weightage="20" keywordseo="intelligence-platform" source="keywords">Intelligence Platform</keyword>. This platform, leveraging advanced technologies, aims to mitigate payment <keyword id="19898489" type="General" weightage="20" keywordseo="fraud" source="keywords">fraud</keyword> risks and enhance the safety of digital transactions. According to the annual report released by the Reserve Bank of India (RBI) on May 30, there was a significant surge in the number of financial frauds reported by banks, increasing by 166 per cent year-on-year in the financial year 2023-24 to reach 36,075 cases. This figure starkly contrasts with the 13,564 cases reported in the previous fiscal year, FY23. Despite the notable rise in the number of fraud cases, there was a substantial decrease in the total amount involved in these incidents. The amount of money associated with total bank frauds plummeted by 46.7 per cent year-on-year in the financial year 2023-24, totaling Rs 13,930 crore. In comparison, the amount recorded in FY23 stood at Rs 26,127 crore. RBI has proposed a revision of the limit of bulk deposits for Scheduled Commercial Banks (SCBs) and Small Finance Banks (SFBs). This move, aimed at enhancing flexibility and aligning with evolving market dynamics, underscores the RBI's commitment to fostering a conducive environment for the banking sector. Currently, banks have the discretion to offer differential rates of interest on bulk deposits based on their requirements and Asset-Liability Management (ALM) projections. The existing bulk deposit limit for SCBs (excluding Regional Rural Banks) and SFBs, set at 'Single Rupee term deposits of Rs 2 crore and above,' was established in 2019. However, following a comprehensive review, the RBI has proposed to revise this definition to 'Single Rupee term deposits of Rs 3 crore and above' for SCBs and SFBs. In addition to the proposed revision for SCBs and SFBs, the RBI has also suggested defining the bulk deposit limit for Local Area Banks (LABs) as 'Single Rupee term deposits of Rs 1 crore and above,' mirroring the criteria applicable to Regional Rural Banks (RRBs). RBI has also unveiled plans to rationalize export and import regulations under the Foreign Exchange Management Act (FEMA), 1999. This initiative, driven by the imperative of progressive liberalization and operational flexibility, underscores the RBI's commitment to fostering a conducive environment for international trade and investment. By eliminating redundancies, enhancing clarity, and reducing procedural complexities, the RBI aims to promote ease of doing business for all stakeholders involved in cross-border trade. The RBI aims to streamline and simplify operational procedures related to export and import transactions, thereby reducing administrative burdens and enhancing efficiency for businesses and authorized dealer banks. By aligning regulations with international best practices and market realities, the RBI seeks to create a business-friendly environment conducive to fostering trade and investment growth. Simplified regulations will facilitate smoother trade transactions, encouraging businesses to explore new markets and expand their global footprint. While promoting ease of doing business, the RBI remains committed to ensuring compliance with regulatory requirements and safeguarding the integrity of the financial system. The proposed rationalization will uphold the principles of transparency, accountability, and risk management in cross-border transactions. As part of the process, the RBI plans to publish draft regulations and directions on its official website by the end of June 2024. In a bid to enhance the convenience and efficiency of digital payments, RBI has unveiled plans to expand the e-mandate framework to include recurring payments for Fastag, National Common Mobility Card (NCMC), and similar services. This initiative, aimed at modernizing payment systems and promoting financial inclusion, underscores the RBI's commitment to fostering innovation and leveraging technology to meet evolving consumer needs. The current UPI Lite service permits customers to load their UPI Lite wallets with up to Rs 2000/- and conduct transactions of up to Rs 500 from the wallet. To enhance the seamless usage of UPI Lite for customers, and in response to feedback from various stakeholders, it is suggested to integrate UPI Lite into the e-mandate framework. This integration would introduce an auto-replenishment feature for UPI Lite wallets, automatically refilling the wallet balance when it falls below a predetermined threshold set by the customer. Since the funds remain under the customer's control (transferring from their account to the wallet), it is proposed to eliminate the need for additional authentication or pre-debit notifications. Relevant guidelines pertaining to this proposal will be issued shortly. RBI has embarked on a mission to foster innovation and transformation in the financial sector with the launch of its third edition of the global hackathon, "HARBINGER 2024 - Innovation for Transformation." It would feature two primary themes: 'Zero Financial Frauds' and 'Being Divyang Friendly.' Solutions aimed at bolstering the safety and security of digital transactions, with a specific emphasis on identifying, preventing, and combating financial frauds, will be solicited. Additionally, there will be a focus on fostering inclusivity for individuals with physical disabilities. Further details regarding the hackathon will be unveiled shortly. 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RBI announces digital payments intelligence platform to check online frauds

NEW DELHI: Some of the essential services related to banking, transportation, railways and electricity are likely to be impacted during a two-day nationwide strike called by a joint forum of central trade unions beginning Monday. Talking to PTI, All Indian Trade Union Congress General Secretary <keyword id="366518" type="General" weightage="20" keywordseo="amarjeet-kaur" source="Orion">Amarjeet Kaur</keyword> said, "We are expecting participation of over 20 crore formal and informal workers with mass mobilisation of workers across the country during the strike on March 28 and 29 to protest against government policies." She said that the strike is expected to hit the rural parts also, where informal workers of farming and other sectors will join the protest. The strike notices were given by workers' unions of various sectors such as coal, steel, oil, telecom, postal, income tax, copper, banks and insurance. Unions in railways and defence sector will carry out mass mobilization in support of the strike at several places, the joint forum said. The unions' demands include scrapping of the proposed changes in labour laws, privatisation of any form and the national monetisation pipeline. Increased allocation of wages under MNREGA (<keyword id="1194612" type="General" weightage="20" keywordseo="mahatma-gandhi-rural-employment-guarantee-act" source="Orion">Mahatma Gandhi Rural Employment Guarantee Act</keyword>) and regularisation of contract workers are also part of their demands. Workers of roadways, transport and electricity departments have also decided to join the strike in spite of the impending threat of ESMA (Essential Services Maintenance Act) which is likely to be imposed in Haryana and Chandigarh, the joint forum said in a statement. Trade unions, including INTUC, AITUC, HMS, CITU, AIUTUC, TUCC, SEWA, AICCTU, LPF and UTUC are part of the joint forum. Meanwhile, the <keyword id="6375040" type="General" weightage="20" keywordseo="power-ministry" source="Orion">power ministry</keyword> on Sunday advised all the state-run utilities and other agencies to be on high alert and ensure round-the-clock electricity supply and stability of the national grid. "The Centre of Indian Trade Unions (CITU) have called for a nationwide strike with effect from 06:00 hrs of March 28 to 06:00 hrs of March 30, 2022," an advisory issued by the power ministry said. The advisory has been issued to all states, central public sector undertakings, central electricity authority, national load dispatch centre and regional load dispatch centres. In the interest of the consumers of electricity, it is advised that all the power utilities shall take necessary measures to ensure round-the-clock functioning of the electricity grid and availability of all plants, transmission lines and substations, the ministry said, adding that all regional/state control room executives should be vigilant and on high alert. The ministry also suggested measures to be taken to ensure secure and reliable grid operations. Shutdown activities planned during March 28-29 may be rescheduled to suitable future dates to the extent possible, it said and asked all concerned officials to ensure close supervision of their regional network/control area. Also, manpower may be deployed at all critical sub-stations/power station 24X7 to handle any emergency situation, it said. Power supply to those engaged in essential services such as hospitals, defence, and railways must be ensured, it added and suggested setting up of a 24x7 control room for information dissemination and handling any kind of contingency. Bank employees' unions said they will support the strike. All <keyword id="3658" type="General" weightage="20" keywordseo="India" source="Orion">India</keyword> Bank Employees' Association (AIBEA) General Secretary C H Venkatachalam said the union demands the government to stop privatisation of public sector banks and strengthen them. Bank employees also demand speedy recovey of bad loans, higher deposit rates by banks, lower service charges on customers as well as restoration of old pension scheme for staff. A number of public sector banks, including country's largest lender SBI, have said that their services may get impacted to a limited extent due to the strike. SBI said it has made necessary arrangements to ensure normal functioning in its branches and offices during the strike. "It is likely that work at our bank may be impacted, to a limited extent, by the strike," SBI said. New Delhi-headquartered Punjab National Bank (<keyword id="13478968" type="COMPANY" weightage="20" keywordseo="pnb" source="Orion" meta.marketcap="38923.93999753" meta.tagname="Punjab National Bank" meta.tagpopularcount="0" meta.sectorid="15" meta.entitytype="company" meta.matchtype="exact" meta.aum="0" meta.entityid="11585" meta.tagseoname="punjab-national-bank" meta.sector="Banks" meta.tagnameorg="Punjab National Bank">PNB</keyword>) said, AIBEA, Bank Employees Federation of India (BEFI) and All India Bank Officers' Association (AIBOA) have served notices to go on strike on March 28-29. "While bank has made all arrangements to ensure normal functioning in its branches and offices, it is likely that work in our bank may be impacted to a limited extent by the strike," PNB said. Bengaluru-based <keyword id="13478969" type="COMPANY" weightage="20" keywordseo="canara-bank" source="Orion" meta.marketcap="40836.07197252" meta.tagname="Canara Bank" meta.tagpopularcount="0" meta.sectorid="15" meta.entitytype="company" meta.matchtype="exact" meta.aum="0" meta.entityid="9218" meta.tagseoname="canara-bank" meta.sector="Banks" meta.tagnameorg="Canara Bank">Canara Bank</keyword> said it is taking all necessary steps to ensure smooth functioning of bank branches and offices. However, the functioning of the bank may be impacted, Canara Bank added. Private lender <keyword id="2179992" type="General" weightage="50" keywordseo="rbl-bank" source="Orion">RBL Bank</keyword> said its bank unions are affiliated to AIBOA and AIBEA, and the employees associated with these unions may participate in the strike. "The bank will take all necessary steps for smooth functioning of the bank's branches/offices on the days of strike. However, it is likely that some of our branches would also be impacted by the strike," <keyword id="13478967" type="COMPANY" weightage="20" keywordseo="rbl" source="Orion" meta.marketcap="491.27195140500004" meta.tagname="Rane Brake Lining Ltd" meta.tagpopularcount="0" meta.sectorid="506" meta.entitytype="company" meta.matchtype="exact" meta.aum="0" meta.entityid="21601" meta.tagseoname="rane-brake-lining-ltd" meta.sector="Auto Ancillaries" meta.tagnameorg="Rane Brake Lining Ltd.">RBL</keyword> said. 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Two-day Bharat Bandh: Essential services likely to be affected

<ul class="summary-list"><li>China is merging hundreds of small rural banks to stomp out bad loan conditions, Bloomberg reported.</li><li>In 2022, the bad-loan ratio of small banks was twice that of the whole sector.</li></ul>Beijing is tackling high-risk financial lenders by enacting a major consolidation wave that will merge hundreds of dealers across the $6.7 trillion sector, <a href="https://www.bloomberg.com/news/articles/2024-01-31/china-merges-hundreds-of-rural-banks-as-financial-risks-mount">Bloomberg reported</a>.These smaller, rural banks will eventually join together into massive regional institutions. The move aims to squash bad debt conditions that have proliferated among the 2,100 lenders under scrutiny.It's a concern Beijing desperately needs to tackle, as <a href="https://www.businessinsider.com/china-economy-shrinking-xi-jinping-debt-real-estate-american-world-2024-1">mounting domestic debt</a> has applied broad downside pressure on China's economy over the last few years. At the end of 2022, the bad-loan ratio in the rural cooperative bank system stood at 3.48%, more than double that of China's entire financial sector. That year, Beijing first began orchestrating mergers between risky lenders. Its efforts erased half of all such banks, with rural, village, and county operations making up 96% of the eliminated dealers.The group's issues stem from a lack of oversight and transparency, analysts told Bloomberg. For instance, these smaller cooperatives have been cited as putting profit ahead of their policy duties, such as by offering loans beyond their rural and agricultural areas.It also resulted in political turmoil. In 2022, four local banks in the Henan province colluded with a stakeholder to attract billions of yuan through online platforms, freezing hundreds of people out of their savings and triggering protests.But Beijing will have to be mindful of its approach, as its previous merger enforcement didn't necessarily lead to improved bad-loan ratios, Bloomberg noted. Additionally, internal management issues could crop up, with numerous banks now having to act as one.

China is merging hundreds of small banks to fend off financial stress

New Delhi, The <keyword id="19895782" type="General" weightage="20" keywordseo="election-commission" source="keywords">Election Commission</keyword> on Monday roped in banks and post offices to spread voter awareness as part of its efforts to increase voting percentage in the upcoming <keyword id="19895394" type="General" weightage="20" keywordseo="lok-sabha" source="keywords">Lok Sabha</keyword> polls. The poll panel has often expressed concern over urban and youth apathy with many registered voters not turning up at the polling stations to cast ballot in the previous elections. Over 30 crore of the 91 crore electors did not cast their ballot in the previous parliamentary polls. The Election Commission (EC) on Monday signed a memorandum of understanding (MoU) with two prominent organisations -- the Indian Banks' Association (<keyword id="19941316" type="General" weightage="20" keywordseo="iba" source="keywords">IBA</keyword>) and the Department of Posts (<keyword id="20733048" type="General" weightage="20" keywordseo="dop" source="keywords">DoP</keyword>) -- to amplify its voter outreach and awareness efforts ahead of the Lok Sabha elections. The initiative, the poll panel said, is in continuation of its efforts to enhance electoral awareness in the country. The EC had recently signed an MoU with the Ministry of Education to formally integrate electoral literacy into the educational curriculum of the schools and colleges. The latest initiative has been taken based on insights and knowledge gained by Chief Election Commissioner (CEC) <keyword id="20110344" type="General" weightage="20" keywordseo="rajiv-kumar" source="keywords">Rajiv Kumar</keyword> from his past roles and experience working in the financial sector, particularly in the Indian banking sector and India Post Payments Banks, the officials pointed out. As part of the MoU, the IBA and the DoP with its members and affiliated institutions will extend support in promoting voter education through their extensive network on a pro bono without charge basis, employing various interventions to empower the citizens with knowledge about their electoral rights, processes and steps for registration and voting. The members and affiliated institutions will now display voter education messages prominently on their websites, directing visitors to learn more about the electoral process. Voter education content will be disseminated through various promotional channels such as social media and customer outreach platforms of member institutions, ensuring widespread awareness among stakeholders and the public, the EC said. Voter education messages will also be displayed in the form of posters, flex and hoardings at office premises at major locations, reaching the customers at key touchpoints. All member institutions under the IBA and the DoP will establish 'voter awareness fora' to engage the employees and customers in discussions and initiatives related to voter education. The Department of Posts will affix a special cancellation stamp (bearing voter education messages) on the postal articles. "Despite successfully managing and conducting elections by the Election Commission over the years in a fair and peaceful way along with a significant increase in participation of the electors, there is also a concern that around 30 crore electors, out of 91 crore, did not cast their votes in general election to Lok Sabha 2019. The voting percentage was 67.4 per cent, which the Commission has taken as a challenge to improve upon," the EC said. The Indian Banks' Association now has a strong network of 247 members across the country. Public sector banks are in lead with 90,000+ branches and 1.36 lakh ATMs followed by 42,000+ branches of private sector banks with 79,000+ ATMs. Regional rural banks contribute over 22,400 branches, while small finance and payment banks operate around 7,000 branches and more than 3,000 ATMs. Foreign banks maintain 840 branches and 1,158 ATMs, and local area banks have 81 branches. "The cumulative number of the branches are over 1.63 lakh with more than 2.19 lakh ATMs across the country," the poll authority pointed out.

EC ropes in banks, post offices to spread voter awareness ahead of LS polls

In a major restructuring exercise, <keyword id="6354731" type="DOMAIN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword> has created a separate Financial Inclusion and Micro Market (FI&amp;MM) vertical with a focus on rural and <keyword id="9333024" type="UNKNOWN" weightage="20" keywordseo="semi-urban-areas">semi urban areas</keyword> to improve customer experience. Under this newly launched vertical, the bank will offer loans mainly for agriculture as well as allied activities, and micro and small enterprises, <keyword id="13222" type="CITY" weightage="20" keywordseo="SBI">SBI</keyword> said in a statement on Tuesday. About 8,000 branches in rural and semi urban areas have been identified for providing specialised services to micro segment, including micro credit for <keyword id="390673" type="PERSON" weightage="20" keywordseo="small-businesses">small businesses</keyword> and farmers, it said. The thrust is also to improve service quality and availability of banking services through the bank's vast network of over 63,000 customer service points in rural, semi urban, urban and metro areas, it said, adding the new vertical will provide a boost to the micro-finance sector. "Today is an important day in our resolve to ensure that SBI stands with the citizens of the country, across all segments. The key elements of creating the FI&amp;MM vertical are to bring sharper focus to different business lines and improve the quality of interaction with customers at the branch," SBI Chairman Rajnish Kumar said. This is an initiative by SBI to cater to financial requirements of people residing in the hinterland of the country, as part of its financial inclusion journey, he added. "The new FI&amp;MM vertical will provide an opportunity to serve the small business, Agri &amp; allied segment so that they can run their businesses smoothly, especially in the current times of uncertainty. The creation of the FI&amp;MM Vertical was conceived, created and implemented fully in house," Kumar said. Commenting on the Delhi region, CGM in-charge Vijuy Ronjan said as many as 612 branches spread across four states, including Delhi and Haryana, would fall under the new vertical. "The initiative will help improve credit delivery to the retail, MSME and agriculture sector in the rural and semi-urban areas of the country. Besides, it will lead to better utilisation of banking correspondent channel. As a result, the goal of financial inclusion and doorstep banking of the government can be given a further push," Ronjan said. On the first day itself, he said, the circle has disbursed about Rs 7.17 crore to 168 eligible MSME units through the FI&amp;MM vertical under the Guaranteed Emergency Credit Line (GECL), part of the Atmanirbhar Bharat Abhiyan package. The statement further said the FI&amp;MM vertical is headed by the bank's deputy managing director Sanjeev Nautiyal at the national level. To ensure special focus and smooth functioning at the local level, it said, the FI&amp;MM vertical will comprise of a four tiered structure under the Chief General Manager, General Manager, RMs at <keyword id="9333023" type="COMPANY" weightage="20" keywordseo="regional-business-offices">Regional Business Offices</keyword> (RBO) and <keyword id="9333022" type="LOCATION" weightage="20" keywordseo="district-sales-hub">District Sales Hub</keyword> to strengthen the credit delivery system and improve the turnaround time for quick sanctions and disbursement of small loans. The primary emphasis will be on consolidating the district level presence which will provide constant sales and recovery support to branches in the FI&amp;MM network, it said. The DSHs will also play an important role in strengthening the reach of customer service points (CSPs) and ensure improvement in quality and availability of services rendered to customers. Amid the COVID-19 pandemic, SBI has been at the forefront in providing relief measures to existing SME borrowers, such as 10 per cent of fund based working capital limits by way of CCECL (Common COVID-19 Emergency Credit Line), easing of working capital finance along with moratorium on term loans and working capital. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/yes-bank-is-looking-to-raise-10000-crore-through-fpo-with-kotak-securities-axis-capital-and-sbi-capital-reportedly-to-be-key-players/articleshow/76153458.cms">Yes Bank is looking to raise ₹10,000 crore through FPO – with Kotak Securities, Axis Capital, and SBI Capital reportedly to be key players</a> <a href="https://www.businessinsider.in/business/news/how-to-apply-for-msme-loan/articleshow/76154606.cms">Here’s how MSMEs can apply for loans from SBI, ICICI Bank and others</a> <a href="https://www.businessinsider.in/finance/news/sbi-axis-bank-and-kotak-mahindra-bank-and-other-banking-stocks-are-raising-capital-to-fill-npa-hole/articleshow/76054599.cms">Indian lenders like SBI, Axis Bank and others need $20 billion⁠ in capital— most of it will go into filling up NPA holes</a>

SBI announces new vertical to focus on rural and semi urban areas

<ul class="summary-list"><li>This is an excerpt from a story delivered exclusively to Business Insider Intelligence Banking subscribers. </li><li>To receive the full story plus other insights each morning, <a href="https://www.businessinsider.com/intelligence?IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=top_text&amp;itm_term=bundle_subscription_text_link-banking-deserts-emerging-across-rural-regions-2019-8">click here.</a></li></ul>Banking deserts are cropping up in rural areas as banks shutter branches in remote areas, considering the majority of the US population is concentrated in cities and drives the bulk of deposits, <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cuYW1lcmljYW5iYW5rZXIuY29tL29waW5pb24vYmFua3MtaW4tcnVyYWwtYXJlYXMtbmVlZC10by1zdGVwLXVwLXRoZWlyLW1vYmlsZS1nYW1l/5d233c18f730436f2414784fBcc9e288b" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cuYW1lcmljYW5iYW5rZXIuY29tL29waW5pb24vYmFua3MtaW4tcnVyYWwtYXJlYXMtbmVlZC10by1zdGVwLXVwLXRoZWlyLW1vYmlsZS1nYW1l/5d233c18f730436f2414784fBcc9e288b&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNFD7PMxbJ08yBfGAyiiv6k5j08UNA">per</a> American Banker. And as consumers increasingly turn to digital banking platforms, bank closures have allowed institutions to cut operational costs. <div class="KonaFilter image-container display-table float_right no-rightrail"><div><div class="image"></div></div></div>Net branch closures nearly <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cuc3BnbG9iYWwuY29tL21hcmtldGludGVsbGlnZW5jZS9lbi9uZXdzLWluc2lnaHRzL2xhdGVzdC1uZXdzLWhlYWRsaW5lcy80OTM2MDIyNA/5d233c18f730436f2414784fB32d0d156" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cuc3BnbG9iYWwuY29tL21hcmtldGludGVsbGlnZW5jZS9lbi9uZXdzLWluc2lnaHRzL2xhdGVzdC1uZXdzLWhlYWRsaW5lcy80OTM2MDIyNA/5d233c18f730436f2414784fB32d0d156&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNEwPLA9WkDghbGAMzOJmEWXzpsndA">doubled</a> between 2012 and 2018, with 1,947 branches shutting down last year alone, per S&amp;P Global Market Intelligence. Bank of America (BofA), for example, has closed over <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2Jhbmstb2YtYW1lcmljYS10by1vcGVuLTUwMC1uZXctYnJhbmNoZXMtMjAxOC0z/5d233c18f730436f2414784fBa7d39cb3" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2Jhbmstb2YtYW1lcmljYS10by1vcGVuLTUwMC1uZXctYnJhbmNoZXMtMjAxOC0z/5d233c18f730436f2414784fBa7d39cb3&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNG-wCN1UVrX3YiG4FWfK3ONWpsOPQ">1,600</a> branches since the 2008 financial crisis, primarily in rural areas, as they're less lucrative than its city-based branches: The typical BofA urban branch generates about <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cud3NqLmNvbS9hcnRpY2xlcy9ob3ctYmFuay1vZi1hbWVyaWNhLWRpdGNoZWQtMS01OTctYnJhbmNoZXMtYWNyb3NzLXRoZS11LXMtMTUwNTY0NjAwMA/5d233c18f730436f2414784fB67fe9b63" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cud3NqLmNvbS9hcnRpY2xlcy9ob3ctYmFuay1vZi1hbWVyaWNhLWRpdGNoZWQtMS01OTctYnJhbmNoZXMtYWNyb3NzLXRoZS11LXMtMTUwNTY0NjAwMA/5d233c18f730436f2414784fB67fe9b63&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNGwRUeW83tLiavWsWwMnsT596ePhg">$2.5 million</a> in revenue, compared with $1.4 million in revenue for the typical rural branch, per The Wall Street Journal.Beyond shuttering branches, firms like JPMorgan Chase and BofA have also been <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L3dlY2hhdC1wYXktYWRkcy1pbnRlcm5hdGlvbmFsLWNhcmQtc3VwcG9ydC1qcG1vcmdhbi1jaGFzZS10by1vcGVuLTQwMC1icmFuY2hlcy1zdHJpcGUtbml4ZXMtYml0Y29pbi0yMDE4LTE/5d233c18f730436f2414784fBa489716a" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L3dlY2hhdC1wYXktYWRkcy1pbnRlcm5hdGlvbmFsLWNhcmQtc3VwcG9ydC1qcG1vcmdhbi1jaGFzZS10by1vcGVuLTQwMC1icmFuY2hlcy1zdHJpcGUtbml4ZXMtYml0Y29pbi0yMDE4LTE/5d233c18f730436f2414784fBa489716a&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNF7S9FnrRxlwqQpVhKWtBB0hy4hrw">shifting</a> their strategies to include opening new branches in cities they didn't previously operate in - with gaps in rural areas remaining.Rural areas include a considerable amount of financially underserved consumers, which amount to <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cuZmRpYy5nb3YvaG91c2Vob2xkc3VydmV5LzIwMTcvMjAxN3JlcG9ydC5wZGY/5d233c18f730436f2414784fBf2b52609" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cuZmRpYy5nb3YvaG91c2Vob2xkc3VydmV5LzIwMTcvMjAxN3JlcG9ydC5wZGY/5d233c18f730436f2414784fBf2b52609&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNHAMKdAHn64_okmBBuPO8Qz2kdTQw">33 million</a> US households - opening opportunities for firms of all sizes:<ul><li>Major banks could offer remote banking services to access these customers in a more cost-efficient way. Depositing a check digitally is <a href="https://e.businessinsider.com/click/17902449.3/aHR0cDovL2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9jbGljay8xMjAxODI0MS4xNjkxL2FIUjBjSE02THk5M2QzY3VhbkJ0YjNKbllXNWphR0Z6WlM1amIyMHZZMjl5Y0c5eVlYUmxMMmx1ZG1WemRHOXlMWEpsYkdGMGFXOXVjeTlrYjJOMWJXVnVkQzlqWTJKZmFXNTJaWE4wYjNKZlpHRjVYekl3TVRjdWNHUm0vNTkzZTI0NWVjYmNmNDg3ZTZjOGI0NTY3QjMyNWI5ODc2/5d233c18f730436f2414784fB174ced7a" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cDovL2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9jbGljay8xMjAxODI0MS4xNjkxL2FIUjBjSE02THk5M2QzY3VhbkJ0YjNKbllXNWphR0Z6WlM1amIyMHZZMjl5Y0c5eVlYUmxMMmx1ZG1WemRHOXlMWEpsYkdGMGFXOXVjeTlrYjJOMWJXVnVkQzlqWTJKZmFXNTJaWE4wYjNKZlpHRjVYekl3TVRjdWNHUm0vNTkzZTI0NWVjYmNmNDg3ZTZjOGI0NTY3QjMyNWI5ODc2/5d233c18f730436f2414784fB174ced7a&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNHPlT5rqOomqHIg3--0Hl5oX9irHA">96%</a> less expensive for Chase than depositing it via a human teller, for example, which has caused many banks to build out their digital channels with everyday banking capabilities. But because some financial tasks are more complex and require more personal attention than a mobile banking app feature, these firms will need to offer remote capabilities, like phone and video services, to serve consumers in remote areas. It's important to note that broadband penetration is <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2VyaWNzc29ucy1lZGdlLW5ldHdvcmstcGxheS1odWF3ZWktdG8taW52ZXN0LTgwMG0taW4tYnJhemlsLXRlbGVjb21zLWNvdWxkLXdpbi1iaWctZnJvbS1ydXJhbC1wb2xpdGljYWwtcHJvbWlzZXM/5d233c18f730436f2414784fBd5547718" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2VyaWNzc29ucy1lZGdlLW5ldHdvcmstcGxheS1odWF3ZWktdG8taW52ZXN0LTgwMG0taW4tYnJhemlsLXRlbGVjb21zLWNvdWxkLXdpbi1iaWctZnJvbS1ydXJhbC1wb2xpdGljYWwtcHJvbWlzZXM/5d233c18f730436f2414784fBd5547718&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNEMpouqI4DjdrIyEnbwmXrxSb1yaw">lower</a> in some rural areas, which could limit access to services like video banking.</li><li>Challenger banks could carve out a niche among consumers living in rural areas. The US neobank market has been growing, with US firms like Varo and Chime, and foreign entrants such as N26 and Monzo <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L24yNi1sYXVuY2hlcy1uZXctdG9vbC1hbmQtbGVhdmVzLWJldGEtaW4tdGhlLXVzLWNoYXNlLXRvLWRpc2NvbnRpbnVlLWNoYXNlLXBheS1pbi0yMDIwLW5hdGlvbndpZGUtaW50cm9kdWNlcy1uZXctYnJhbmNoLWNvbmNlcHQtMjAxOS04/5d233c18f730436f2414784fB38fb3bb5" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L24yNi1sYXVuY2hlcy1uZXctdG9vbC1hbmQtbGVhdmVzLWJldGEtaW4tdGhlLXVzLWNoYXNlLXRvLWRpc2NvbnRpbnVlLWNoYXNlLXBheS1pbi0yMDIwLW5hdGlvbndpZGUtaW50cm9kdWNlcy1uZXctYnJhbmNoLWNvbmNlcHQtMjAxOS04/5d233c18f730436f2414784fB38fb3bb5&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNFvtpclQHteE33fcN7XBF4GaZzy5A">launching</a> new services to grab a larger share of the space. As the space gets more crowded, these neobanks could target rural areas, and ultimately an underserved audience that legacy banks largely don't cater to.</li><li>Community banks could establish themselves as regional leaders. These smaller firms might ultimately have a leg up on digital providers due to the <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2ZpbnRlY2gtYW5kLWZpbmFuY2lhbC1pbmNsdXNpb24taG93LWxvdy1vdmVyaGVhZC1kaXJlY3QtYmFua2luZy1tb2RlbHMtZW5hYmxlLWJhbmtzLXRvLXByb2ZpdGFibHktc2VydmUtdGhlLXVzLTMzLW1pbGxpb24tdW5kZXJiYW5rZWQtaG91c2Vob2xkcy0yMDE5LTg/5d233c18f730436f2414784fB2ae80932" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2ZpbnRlY2gtYW5kLWZpbmFuY2lhbC1pbmNsdXNpb24taG93LWxvdy1vdmVyaGVhZC1kaXJlY3QtYmFua2luZy1tb2RlbHMtZW5hYmxlLWJhbmtzLXRvLXByb2ZpdGFibHktc2VydmUtdGhlLXVzLTMzLW1pbGxpb24tdW5kZXJiYW5rZWQtaG91c2Vob2xkcy0yMDE5LTg/5d233c18f730436f2414784fB2ae80932&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNFr5UslPXUNR6V9KCpec0EfVzPjng">reliance</a> of low- to middle-income consumers on branches, creating a behavioral barrier to adoption of digital banking services. Given the pace of branch closures among big banks in the US, and factors like low connectivity that might inhibit digital banking adoption, community banks operating branches could allow them to gain a substantial market share in rural areas.</li></ul>Interested in getting the full story? Here are two ways to get access: <ol><li>Subscribe to a Premium pass to Business Insider Intelligence and gain immediate access to the Banking Briefing, plus more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. &gt;&gt; <a href="https://www.businessinsider.com/intelligence?IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=learn_more_text&amp;itm_term=bundle_subscription_text_link-banking-deserts-emerging-across-rural-regions-2019-8">Learn More Now</a></li><li>Current subscribers can read the full briefing <a href="https://intelligence.businessinsider.com/post/banks-should-leverage-digital-offerings-to-reach-underserved-consumers-citi-upped-minimum-wage-after-government-pressure-scotiabank-sees-digital-rise-and-branch-transactions-fall-2019-8">here.</a></li></ol><a href="https://www.businessinsider.com/intelligence/10-up-and-coming-fintechs-2019?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=finance&amp;itm_campaign=10-up-and-coming-fintechs-2019"></a>

'Banking deserts' are emerging across rural regions of the US

<ul class="summary-list"><li>Farmington State Bank had 3 staff and was the 26th-smallest bank in America out of a total 4,800.</li><li>Then FTX bought an $11.5 million stake in the bank, it has emerged during FTX's bankruptcy case.</li></ul><a href="https://www.businessinsider.com/ftx-sam-bankman-fried-fraud-collapse-cme-group-duffy-crypto-2022-11">FTX</a> has come under <a href="https://markets.businessinsider.com/news/currencies/ftx-crypto-holdings-fair-value-bankruptcy-filing-sam-bankman-fried-2022-11">more scrutiny</a> after it emerged that the collapsed crypto giant owned an $11.5 million stake in one of America's smallest banks – more than double the bank's previous net worth – <a href="https://www.nytimes.com/2022/11/23/business/ftx-cryptocurrency-bank.html">the New York Times reported.</a>Farmington State Bank, which is based in the small town of Farmington in the rural farming region of Whitman County, Washington, was described as "no-frills" by local newspaper <a href="https://www.spokesman.com/stories/2010/dec/22/hometown-success/">The Spokesman-Review</a> in 2010. Its then-president, John Widman, told the newspaper that it had stopped making mortgage loans because the paperwork was too much effort.Its single branch had three employees until this year, and didn't offer online banking or even credit cards. It instead specialised in agricultural loans to farmers.FTX's investment came to light during the <a href="https://www.businessinsider.com/sam-bankman-fried-ftx-bankruptcy-hearing-ray-chapter-markets-crypto-2022-11">crypto firm's bankruptcy case</a>, and is raising red flags about its financial strategy.Ties between the farmers' bank and the crypto exchange began in March this year, when FTX's sister company, Alameda Research, invested in Farmington's parent company, FBH. The purchase was led by <a href="https://markets.businessinsider.com/news/currencies/crypto-exchange-ftx-venture-fund-amy-wu-lightspeed-web3-sbf-2022-1">Ramnik Arora</a>, one of <a href="https://www.businessinsider.com/how-ftxs-sam-bankman-fried-allegedly-spent-his-fortune-2022-11">Sam Bankman-Fried</a>'s inner circle, who was often responsible for much larger deals.At the time, it was the 26th-smallest bank in America out of 4,800. With a net worth of $5.7 million, FTX's stake was worth more than double the bank's value.The town of Farmington has just 146 residents, and is so small that Google Street View doesn't cover the whole town.For a decade, Farmington's bank held around $10 million in deposits. In the third quarter this year, deposits jumped to $84 million – 85% of which came from just four accounts, according to FDIC data cited by the Times.Online, the bank now appears as "Moonstone Bank," a name which was trademarked a few days before FTX's investment. Moonstone doesn't mention cryptocurrency, but does say it wants to "support the evolution of next generation finance."Questions are being asked over how FTX got federal approval to buy its stake in Farmington. Banking veterans told the New York Times that it was hard to believe regulators would have knowingly allowed the crypto firm to do so.Moonstone and FTX did not immediately reply to a request for comment, sent outside normal US working hours.

FTX owned an $11.5 million stake in a tiny rural bank in Washington state with just 3 employees, bankruptcy hearing shows

<ul><li>Average balance per account witnessed quarterly growth of 0.8% and grew 5.2% Y-oY as of December 22, 2023. </li><li>The top 10 states constituted 84.6% of the gross loan portfolio as of December 2022. </li><li>Portfolios of ticket size ₹50,000-₹75,000 witnessed Y-o-Y growth of 45%.</li></ul>The growth in <keyword id="12055556" type="General" weightage="20" keywordseo="microfinance-lending" source="Orion">microfinance lending</keyword> in the <keyword id="84064" type="General" weightage="20" keywordseo="rural-market" source="Orion">rural market</keyword> outpaced that of urban markets according to data from CRIF High Mark. While rural markets grew 23.8% annually as of December 2022, the same in urban markets was at 14.6%. The Indian <keyword id="113684" type="General" weightage="80" keywordseo="microfinance" source="Orion">microfinance</keyword> lending sector witnessed a quarterly (September to December) growth of 5.5% and an annual growth of 20% as of December 2022, says the quarterly publication MicroLend by CRIF High Mark. This sector’s live customer base grew by 4.8% and 11.9%, on a quarterly and annual basis, respectively. <cmsannotation type="cmsannotation" annotationid="Average balances and lender exposure" comment="subhead2" text="Average balances and lender exposure">Average balances and lender exposure</cmsannotation> In December 2022, there was a quarterly growth of 0.8% and a year-on-year growth of 5.2% in the average balance per account, while the average balance per borrower saw a quarterly growth of 1% and a year-on-year growth of 8.5%. Additionally, the report shows that 5.9% of borrowers have dealings with four or more lenders. Among the major states, Tamil Nadu has the highest proportion at 10.6%, while West Bengal has the lowest at 1.5%. <cmsannotation type="cmsannotation" annotationid="How the geographical regions fare" comment="subhead2" text="How the geographical regions fare">How the geographical regions fare</cmsannotation> As of December 2022, the gross loan portfolio (GLP) of the top 10 states accounted for 84.6% of the total. Uttar Pradesh, Bihar, and Karnataka experienced the highest quarterly growth rates of 11.1%, 9.0%, and 7.5%, respectively. The average balance per borrower for the top states Tamil Nadu, Bihar, and West Bengal was ₹53,600, ₹54,000, and ₹44,200, respectively. In terms of regional dominance, the microfinance sector was led by the Eastern region at 32%, followed by the South at 27% as of December 2022. <cmsannotation type="cmsannotation" annotationid="Portfolio: Lender type mix" comment="subhead2" text="Portfolio: Lender type mix">Portfolio: Lender type mix</cmsannotation> As of December 2022, <keyword id="6355260" type="General" weightage="100" keywordseo="nbfc" source="Orion">NBFC</keyword> microfinance institutions (MFIs) dominate the market with a portfolio share of 35.7%. NBFC MFIs saw a Q-o-Q growth in gross loan portfolio (GLP) of 7.5%, which is significantly higher than the 1.5% for banks and 5.6% for small finance banks (SFBs). In terms of year-on-year growth, NBFC MFIs had a growth of nearly 28.2%, while banks had a growth of 6.2% and SFBs had a growth of 17.5%. Loans with ticket sizes ranging from ₹30,000 to ₹50,000 accounted for 47.8% of NBFC MFIs' portfolio, as compared to 38.4% for banks and 49.7% for SFBs. <cmsannotation type="cmsannotation" annotationid="Portfolio: Ticket size mix" comment="subhead2" text="Portfolio: Ticket size mix">Portfolio: Ticket size mix</cmsannotation> The data indicates an increase in loans with higher ticket sizes. Portfolios with ticket sizes ranging from ₹50,000 to ₹75,000 saw a year-on-year growth of 45% and a quarterly growth of 9.6% as of December 2022. However, portfolios with ticket sizes greater than or equal to ₹15,000 witnessed a year-on-year decline of 27.2% and a quarterly decline of 2.4%. The share of portfolios with higher ticket sized loans of greater than ₹50,000 increased from 31.8% in December 2021 to 35.2% in December 2022. Moreover, as of December 2022, loans with a ticket size ranging from ₹30,000 to ₹50,000 had the highest share in both value (45%) and volume (42%). The share of loans with a ticket size between ₹50,000 and ₹75,000 increased from 18% in December 2021 to 22% in December 2022. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/us-visa-rules-ease-now-h-1b-visa-holders-spouses-can-work-in-the-us/articleshow/99110481.cms">US visa rules ease: Now H-1B visa holders' spouses can work in the US</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/meet-the-tigers-elephants-rabbits-and-turtles-of-the-e-commerce-jungle/articleshow/99109220.cms">Meet the tigers, elephants, rabbits and turtles of the e-commerce jungle</a>

Microfinance lending shows strong growth in 2022, NBFC MFIs dominate the market

<ul><li>Demand for gold in <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword> during the September quarter of the current calendar year grew by 14% year-on-year. </li><li>The healthy demand for jewellery in India can be attributed to a sharp pick-up in economic activity, with a 17% year-on-year increase in tonnage terms. </li><li>Recovery in <keyword id="6379337" type="General" weightage="20" keywordseo="gold-jewellery" source="Orion">gold jewellery</keyword> demand was primarily driven by urban India, more specifically southern parts of the country. </li></ul>India’s love for gold continues to remain strong, with both jewellery and investment demand growing in double digit in the September quarter of this year. According to the <keyword id="113718" type="General" weightage="100" keywordseo="world-gold-council" source="Orion">World Gold Council</keyword>’s quarterly report, demand for the yellow metal in India during the September quarter of the current calendar year grew by 14% year-on-year at 191.7 tonnes. In value terms, gold demand was ₹85,010 crore, up by 19% as compared to the corresponding quarter last year. For the full year, the World Gold Council expects demand for the yellow metal to average around 750-800 tonnes, which is similar to last year. The demand for gold continues to remain strong from central banks despite the drop in prices through 2022, as the dollar strengthened against all other currencies. The strength of the dollar has impacted values of asset classes and gold is just one of them. In India, the demand for ornaments has made a strong comeback this year after weakness in demand post-Covid. According to Somasundaram P R, regional CEO- India, World Gold Council: “India's total gold demand in Q3 2022 at 191.7 tonnes is a 14% increase over last year. This reflects better-than-expected performance and strong consumer interest, helping year-to-date demand return to pre-Covid levels.” Recovery in gold jewellery demand was primarily driven by urban India, more specifically southern parts of the country. The healthy demand for jewellery can be attributed to a sharp pick-up in economic activity, with a 17% year-on-year increase in tonnage terms. <keyword id="6355185" type="General" weightage="50" keywordseo="rural-india" source="Orion">Rural India</keyword> which is a big consumer of gold, however, has not played a part in demand recovery thanks to the seasonal effect (monsoons) and inflation. Gold bars and coins also were in demand during this period and grew by saw a 6% year-on-year improvement to 45.4 tonnes, as retail investors responded to <keyword id="35271" type="General" weightage="20" keywordseo="gold-price" source="Orion">gold price</keyword> drop and weaker equity markets, and festivities around Ganpati and Puja festivals after two years of Covid, saw a huge uplift in consumer sentiment, says World Gold Council’s report. In India, total Investment demand during the September quarter was 45.4 tonnes, an increase of 6% in comparison to the corresponding quarter last year. In value terms, gold Investment demand in the September quarter was ₹20,150 crore, up by 10% from the previous year. Total gold recycled in India in Q3 2022 was 16 tonnes, down by 23% compared to 20.7 tonnes in 2021. <div type="image" title="World Gold Council" msid="95230409" hostid="261" sizebytes="56896"></div> Global trends in gold consumption Globally too the demand for gold as a store of value improved, but investors of gold exchange traded funds (<keyword id="6357062" type="General" weightage="50" keywordseo="etf" source="Orion">ETF</keyword>s) turned cautious. According to the World Gold Council report, retail investors bought gold as a store of value amid surging global inflation, while ETF investors reduced their holdings in the face of rising global interest rates. Demand for gold was also seen in the <keyword id="30350" type="General" weightage="50" keywordseo="middle-east" source="Orion">Middle East</keyword>, with Saudi Arabian jewellery consumption rising by 20% since Q3 2021, and the United Arab Emirates up 30% for the same period. Chinese jewellery demand also saw a modest 5% increase y-o-y driven by improved consumer confidence and a dip in the local gold price, prompting the release of some pent-up demand. Central bank buying too picked up during the quarter with estimated record purchases of nearly 400 tonnes in the third quarter. “Looking ahead, we anticipate central bank buying and retail investment to remain strong and that could help offset potential declines in OTC and ETF investment that may prevail if the dollar strength persists. We also expect to see jewellery demand continue to perform strongly in some regions such as India and <keyword id="53564" type="General" weightage="50" keywordseo="southeast-asia" source="Orion">Southeast Asia</keyword>, while the technology sector will likely witness further decline in the face of economic deceleration,” Louise Street, Senior Markets Analyst at the World Gold Council said. Gold continued to hold favour with retail investors who turned to gold for its status as a store of value against inflation and geopolitical uncertainty. Investors sought to hedge inflation with bar and coin investment, driving total retail demand up 36% y-o-y. This was supported by significant purchasing in Turkey (up 5x) and in Germany (up 25%). There were ‘visible contributions’ across all major markets, as per World Gold Council estimates. Mine production too was up 2% versus Q3 2021, with gold mining seeing its sixth consecutive quarter of growth. By contrast, recycling was 6% lower y-o-y in Q3, as consumers held onto their gold in the face of surging inflation and an uncertain economic outlook. “Despite a shaky macroeconomic environment, demand this year has reflected gold’s status as a safe haven asset, underscored by the fact that it has outperformed most asset classes in 2022,” said Louise Street. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/amid-risks-of-a-slowdown-these-it-companies-are-best-placed-to-survive-the-storm/articleshow/95228871.cms">Amid risks of a slowdown, these IT companies are best placed to survive the storm</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/40-of-indians-defrauded-while-shopping-online-during-festive-season/articleshow/95226063.cms">40% of Indians defrauded while shopping online during festive season</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/twitter-bosses-entitled-to-usd-122-million-in-golden-parachute-payouts/articleshow/95224235.cms">Twitter bosses entitled to USD 122 million in 'golden parachute' payouts</a>

Jewellery demand is now back to pre-pandemic levels: World Gold Council

<ul><li>The Varanasi-based bank aims to raise as much as ₹500 crore via the initial public offering. </li><li>The IPO opens on July 12 and will close on July 14. </li><li>The bank plans to use the net proceeds towards augmenting its tier-I capital base to its future capital requirements. </li></ul><keyword id="4093871" type="General" weightage="100" keywordseo="utkarsh-small-finance-bank" source="Orion">Utkarsh Small Finance Bank</keyword> has fixed a price band of ₹23-25 a share for its public issue, which will open on July 12 and close on July 14. The Varanasi-based bank aims to raise as much as ₹500 crore via the initial public offering, and the bids for anchor investors will open on July 11. Investors can bid for a minimum of 600 equity shares and in multiples of 600 equity shares thereafter. The bank plans to use the net proceeds towards augmenting its tier-I capital base to its future capital requirements. “They (capital requirements) are expected to arise out of growth in the bank’s assets, primarily the bank’s loans/advances and investment portfolio and to ensure compliance with regulatory requirements on capital adequacy prescribed by the RBI from time to time,” the bank said in its Red Herring prospectus. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY21 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total Income </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,804 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,033 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,705 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net Profit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹404 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹61 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹111 crore </td></tr></tbody></table>Source: RHP About the bank Utkarsh commenced operations in 2017 and its product suite includes a range of deposit products including saving accounts, salary accounts, current accounts, recurring and fixed deposits, and locker facilities. As of March 2023, the lender's operations were spread across 26 states and Union Territories with 830 banking outlets serving 3.6 million customers majorly located in rural and semi-urban areas primarily in Bihar and Uttar Pradesh. The bank's gross loan portfolio has grown to ₹13,957.11 crore as of March 31, 2023, from ₹8,415.66 crore as of March 31, 2021. Its disbursements increased to ₹12,442.89 crore in fiscal 2023 from ₹5,914.01 crore in fiscal 2021. Also, deposits surged to ₹13,710.14 crore from ₹7,507.57 crore during the period. Risk factors The bank said in its RHP that it is subject to inspections by regulatory authorities, including by the RBI and non-compliance or adverse observations may have a material adverse effect on its business, financial condition, results of operation or cash flows. The bank’s former auditors, <keyword id="17956647" type="General" weightage="20" keywordseo="haribhakti-co-llp" source="Orion">Haribhakti &amp; Co. LLP</keyword>, Chartered Accountants, have been debarred by the RBI India from undertaking audit assignments for entities regulated by them for two years, with effect from April 1, 2022. “A significant portion of our advances in the microbanking segment are towards customers located in the states of Bihar and Uttar Pradesh, and any adverse changes in the conditions affecting the region can adversely impact our business, financial condition, results of operations and cash flows,” the bank said in its RHP. The bank has received a show cause notice from SEBI regarding alleged non-compliance of provisions of Companies Act 2013. It may result in penal actions, the bank said, adding that its non-convertible debentures are listed on BSE. “Our profit after tax declined from ₹111 crore in FY21 to ₹61 crore in FY22. While our profit after tax was ₹404 crore in FY23, there can be no assurance that we will be able to maintain profitability in the future,” the bank said. (With inputs from PTI)

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