Page 7 - Banking Fiannce March 2018

BANK UPDATE

SBI overseas expansion Central Government publishes names of 9,500 high risk
to cost $2b NBFCs
State Bank of India would raise up to Centre has identified about 9,500 NBFCs in the country as "high risk" prone as
$2 billion (Rs. they have not complied with a stipulated provision
12,700 crores of the anti-money laundering law. The list has been
approx) over published by the Financial Intelligence Unit (FIU)
the next two that works under the Union Finance Ministry to
fiscal years in check crimes in the Indian economy and alert en-
order to fund its overseas expansion. forcement agencies against such instances. The list,
The amount would be raised through containing the names of the firms, has been up-
a public offer and/or the issue of dated till January this year.
bonds in US dollars or any other con- Under the Prevention of Money Laundering Act (PMLA), the NBFCs, which in-
vertible currency and the executive cludes cooperative banks, are required to furnish details about their financial
committee has approved the long operations and transactions to the FIU. The FIU processed the data of these
term fund raising in single/mutiple companies and found that they did not comply largely on one stipulated condi-
tranches. tion of appointing a principal officer who is responsible to check and report sus-
picious transactions and cash transactions of Rs 10 lakh and above, and report
HDFC Bank crosses Rs5 it to the agency, sources said.

trillion market cap
CBI arrests PNB's internal chief auditor
HDFC Bank Ltd made it as the third
Indian company by crossing Rs5 tril- The CBI arrested an auditor of Punjab National Bank in the USD 2 billion fraud
lion market capitalization.First two involving Nirav Modi and Mehul Choksi, the agency of-
companies being Tata Consultancy ficials confirmed. The Internal Chief Auditor of Punjab
Services (TCS) and REliance Indus- National Bank was held in connection with the ongoing
investigation of the cases related to Nirav Modi group
tries Limited (RIL). In intraday trade,
and Gitanjali group.
the HDFC stock touched a fresh
record high of Rs1,53.75 on the BSE, The arrested Auditor- M K Sharma, Chief Manager rank (Scale IV officer of PNB)
up 3.31% from its previous close. The was allegedly responsible for auditing the systems and practices of PNB, Brady
scrip closed at Rs1,931.80, up 2.15% House Branch and report the deficiencies to Zonal Audit Office.
with a market cap of Rs5 trillion. The Meanwhile, billionaire diamond merchant Nirav Modi refused to join the CBI
Sensex index closed higher by 0.51% investigation into the Punjab National Bank fraud case. The diamantaire failed
to 35,260.29 points. to keep his date with the summons issued by the central probe agency in the
PNB fraud case, which officials said had been revised upward to Rs 12,636 crore
Digital banks would take following fresh information from the bank.
over in next 3 years Modi was summoned through email but he refused to join the investigation
Niti Aayog CEO Amitabh Kant said saying he had "business abroad", PTI quoted CBI officials as saying. The CBI also
"Days of physi- directed Modi to contact the embassy of India in the country where he is stay-
cal bank will be ing so that his travel to India can be arranged.
over... India will
throw huge India Post Payments Bank
amount of The Indian Post Payments Bank (IPPB) Expansion
data", emphasizing data analytics Programme continues to make brisk progress and a
would boost financial inclusion in the nation wide roll out is scheduled in April 2018. All
country. In the next three-four years, 1.55 lakh post office branches would be operating
India will have a billion plus as access points and 650 payments bank branches
smartphones, he added. will provide them back- end support.

BANKING FINANCE | MARCH | 2018 | 7