Page 5 - BANKING FINANCE MARCH 2024

BANK UPDATE

Banking

PPBL has over 30 crore man M R Kumar, former SBI MD A oversee the implementation of these
Krishna Kumar and Bank of Baroda di- appointments.
wallets, 3 crore bank ac- rector Srinivasan Sridhar, as chairmen
counts of public sector banks. The Appoint- SBI surpassed IT major Infosys to be-
come the country's fifth most valued
Paytm Payment Bank (PPBL) has over ments Committee of the Cabinet ap- firm with a market capitalisation of Rs
30 crore wallets and 3 crore bank ac- proved these postings, subject to cer- 6.9 lakh crore. Reliance Industries
counts, as per the information on the tain conditions.
leads the market cap chart followed by
bank's website. It has over 10 crore Kumar will serve as the part-time non- TCS, HDFC Bank, ICICI Bank and SBI.
KYC customers, with 4 lakh users official director and non-executive
added every passing month. The bank chairman of the Board of Bank of In-
is the largest issuer of FASTag with over dia, while Sridhar will take on the same NaBFID takes derivatives
80 lakh FASTag units issued. A payment roles at Indian Overseas Bank. cover for over Rs. 10K
bank can raise deposit up to Rs 2 lakh
but it can't issue loans or credit cards. Additionally, Aravamudan Krishna crore
Kumar will undertake these responsi- The National Bank for Financing Infra-
In a big blow to Paytm's operations,
the RBI recently barred Paytm Pay- bilities at UCO Bank. These appoint- structure and Development (NaBFID)
ments Bank from accepting deposits or ments come with certain relaxations to has taken derivatives cover for more
top-ups in any of its key products-cus- Appointments Committee of the Cabi- than Rs 10,000 crore to hedge the in-
tomer accounts, prepaid instruments, net guidelines. stitution against interest rate risks.
wallets, FASTags and National Com- The terms of appointment specify that These risks emerge from the fixed rate
mon Mobility Card (NCMC), among these individuals will serve for three long-term liabilities debentures and
others-after February 29 in the wake years, from the date of notification, or annual reset for loans which would in-
of "persistent non-compliances and until further orders, whichever is ear- crease uncertainty.
material supervisory concerns". OCL lier. Moreover, the appointments are The government-owned infrastructure
indicated that the company will stop subject to specific conditions, including funding institution raised about Rs
its dependency on Paytm Payments the resignation of Sridhar from the 19,516 crore in nine months ended
Bank and its nodal accounts and QR December 2023 through debentures.
codes will be moved to other bank. board of Bank of Baroda and Kumar
from the board of Suraksha Asset Re- Out of it, Rs 10,000 crore had a tenor
Ex-LIC chief, former SBI MD construction. of 10 years and Rs 9,516 crore had a
tenor of 15 years.
among 3 new PSB chair- The order was signed by Vijay Kumar
Darak, deputy director at the Appoint- Rajkiran Rai G, Managing Director,
men ments Committee of the Cabinet. The NaBFID told, that the institution has
Govt has appointed former LIC chair- department of financial services will entered into interest rate swap and

BANKING FINANCE | MARCH | 2024 | 5