Business & Finance - Current Affairs Questions and Answers

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1)   Which high profile exits has Infosys seen in September 2017?
- Published on 19 Sep 17

a. CEO Vishal Sikka
b. Board member NR Narayana Murthy
c. Head of Design and Senior VP Sanjay Rajgopalan
d. Both a and c
e. All the above
Answer  Explanation  Related Ques

ANSWER: Both a and c

Explanation:
Sanjay Rajagopalan, senior vice-president, Infosys, who headed design and research, has quit the company, according to a posting on his personal page on the networking site, LinkedIn.

He quit Infosys a month ago after working for more than three years with the firm. Earlier, he was a senior vice-president with the German software maker, SAP from 2004 to 2014.

Former CEO & MD of Infosys, Vishal Sikka, had quit the company last month following a spat with the co-founder N.R. Narayana Murthy.

Infosys: Know More

  • Infosys Limited is an Indian multinational corporation that provides business consulting, information technology and outsourcing services.
  • It has its headquarters in Bengaluru, India.
  • Infosys is the second-largest Indian IT firm by 2016 revenues.
  • Founded: 7 July 1981, Pune
  • CEO: U. B. Pravin Rao (2017)
  • Revenue: 10.21 billion USD (2017)
  • Headquarters: Bengaluru
  • Founders: N. R. Narayana Murthy, Nandan Nilekani
  • Key Subsidiaries: Panaya, Infosys BPO, EdgeVerve, Skava


2)   What was Bharat Financial Inclusion Limited formerly known as?
- Published on 12 Sep 17

a. Muthoot Finance
b. SKS Microfinance
c. IndusInd Bank
d. Bajaj Capital
Answer  Explanation  Related Ques

ANSWER: SKS Microfinance

Explanation:
Bharat Financial Inclusion Limited (BFIL), formerly SKS Microfinance, on 11th Sept signed an exclusivity agreement for a potential merger with IndusInd Bank.

For IndusInd Bank, the immediate benefit will be deeper penetration in rural areas.

BFIL has more than 1,400 branches, around 7 million customers and a loan book of close to Rs 11,000 crore.

BFIL already works as a business correspondent for IndusInd Bank.

According to the IndusInd Bank statement, the agreement provides for a mutually agreed exclusivity period for due-diligence and discussions to evaluate a potential strategic combination between the company and BFIL by way of amalgamation through a scheme of arrangement or any other suitable structure.

The BFIL scrip closed at Rs 967.25, up 3.34 per cent, while IndusInd Bank shares rose 5.56 per cent to close at Rs 1,790.65 on the BSE.

The deal will bring a degree of business stability for the microfinance company, which has witnessed periodic surges in risk and uncertainty since 2010.

BFIL: Know More

  • Founded by Vikram Akula in 1997, SKS Microfinance became India’s first microfinance company to go public after it debuted on the BSE in July 2010.
  • But trouble started soon afterwards in its biggest business base, Andhra Pradesh, where, following a spate of suicides by poor borrowers, the state government told people not to repay loans.
  • The crisis led to a leadership change with Akula quitting the company as its executive chairman the following year.
  • Currently 98.37 per cent of BFIL shares are held by the public and 86.33 per cent of these shares are with foreign portfolio investors.
  • It was reported that a swap ratio of one share of IndusInd Bank for 1.75 shares of BFIL was agreed upon by both parties


3)   People's Bank of China has declared which fund raising illegal?
- Published on 07 Sep 17

a. Initial coin offering
b. Initial public offering
c. Crowdfunding
d. Crowdsourcing
Answer  Explanation 

ANSWER: Initial coin offering

Explanation:
The People's Bank of China has declared initial coin offerings (ICOs) illegal and wants them to “cease immediately”.

A growing number of tech companies are opting to sell digital “tokens” because they are quick, easy and unregulated.

The ban saw sharp falls in the two leading crypto-currencies, with bitcoin tumbling $200.

Issuing ICOs - a relatively new phenomenon - has become popular in China, with close to $395m (£305m) raised from investors this year but it is part of a growing global trend. The research site CoinDesk suggests more than $1.5bn in capital has been raised through ICOs since the start of the year.

That's up $256m from last year.

The move is aimed at protecting investors and “dealing with the risks properly”, said a joint statement from the People's Bank of China, securities and banking regulators and other government departments.

ICOs unlike the more traditional share offerings, involves companies raising cash with ICOs don't necessarily offer investors a stake or equity in their business in exchange for their money.

There are legitimate ICOs out there, but a lot of companies are jumping on the ICO bandwagon because it is largely an unregulated space at the moment, and thus, an easy way to raise cash.


4)   RBI has listed which Indian bank(s) as a domestic systemically important bank?
- Published on 06 Sep 17

a. ICICI
b. SBI
c. HDFC
d. All of the above
Answer  Explanation  Related Ques

ANSWER: All of the above

Explanation:
The Reserve Bank of India has listed HDFC Bank as a domestic systemically important bank (DSIB) under the bucketing structure identified last year.

State Bank of India and ICICI Bank were identified as DSIBs under the RBI rules in 2015.

The additional Common Equity Tier 1 (CET1) requirement for D-SIBs has already been phased-in from April 1, 2016 and will become fully effective from April 1, 2019.

The additional CET1 requirement will be in addition to the capital conservation buffer.

D-SIB surcharge for HDFC Bank will be applicable from April 1, 2018.

What is DSIB?

  • The RBI had issued the framework for dealing with domestic systemically important banks (D-SIBs) on July 22, 2014.
  • The D-SIB framework requires the RBI to disclose the names of banks designated as D-SIBs every year in August starting from 2015 and place these banks in appropriate buckets depending upon their systemic importance scores (SISs).
  • In case a foreign bank having branch presence in India is a global systemically important bank (G-SIB), it has to maintain additional CET1 capital surcharge in India as applicable to it as a G-SIB, proportionate to its risk weighted assets (RWAs) in India.
  • Based on their systemic importance scores in ascending order, banks will be plotted into four different buckets and will be required to have additional Common Equity Tier 1 capital requirement ranging from 0.20 per cent to 0.80 per cent of risk weighted assets.
  • SIBs are perceived as banks that are ‘Too Big To Fail (TBTF)’. This perception of TBTF creates an expectation of government support for these banks at the time of distress.


5)   Centre approved 100% strategic sale of which company on 30th Aug 2017?
- Published on 31 Aug 17

a. Central Electronics Limited
b. Bharat Electronics Limited
c. Bharat Heavy Electrical Limited
d. Indian Oil and Gas Corporation
Answer  Explanation  Related Ques

ANSWER: Central Electronics Limited

Explanation:
The Centre has approved a 100% strategic sale along with transfer of management control of Central Electronics Ltd (CEL).

Incorporated in 1974, CEL is under the administrative control of Ministry of Science and Technology.

The CPSE is wholly owned by the government and has a net worth of ₹50.34 crore as on March 2017.

The Government of India (GoI) has ‘in-principle’ decided to disinvest its 100 per cent equity in Central Electronics Ltd through strategic sale with transfer of management control.

The government plans to engage an advisor from a consulting firm, investment banker or a merchant banker or a financial institution, for providing advisory services and managing the disinvestment process.

It is also looking to appoint a legal firm for advising on the strategic sale.

The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved a Memorandum of Understanding (MoU) between India and Israel on “India-Israel Industrial R&D and Technological Innovation Fund (I4F)”. The MoU was concluded in July, 2017

India and Israel will make a contribution of four million US Dollars each for the Fund, both equivalent amount, annually for five years. The Innovation Fund will be governed by a joint Board which will consist of four members from each country.


6)   Union Cabinet has given an approval for ordinance to amend which GST legislation?
- Published on 31 Aug 17

a. Goods and Services Tax (Compensation to States) Act 2017
b. Goods and Services Tax (Assistance to States) Act 2017
c. Goods and Services Tax (Support to States) Act 2017
d. Goods and Services Tax (Legislation for States) Act 2017
Answer  Explanation  Related Ques

ANSWER: Goods and Services Tax (Compensation to States) Act 2017

Explanation:
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval to the proposal of the Finance Ministry to promulgate an ordinance to suitably amend the Goods and Services Tax (Compensation to States) Act, 2017.

The approval would allow to increase the maximum rate at which the Compensation Cess can be levied from 15% to 25% on:

a. motor vehicles for transport of not more than thirteen persons, including the driver [falling under sub-headings 870210, 8702 20, 8702 30 or 8702 90]; and

b. motor vehicles falling under headings 8703.

The GST Council, in its meeting held in August 2017, taking into consideration the fact that post introduction of GST, the total incidence on motor vehicles [GST+ Compensation Cess] has come down vis-a-vis pre-GST total tax, incidence.

It had recommended increase in the maximum rate at which Compensation Cess can be levied on motor vehicles falling under headings 8702 and 8703 from 15% to 25%.

The issue regarding the increase in effective rate of Compensation Cess on motor vehicles will be examined by the GST Council in due course.


7)   Union Cabinet gave in-principle approval for PSU banks to amalgamate through which mechanism?
- Published on 24 Aug 17

a. JV
b. Merger
c. Acquihire
d. Alternative
Answer  Explanation 

ANSWER: Alternative

Explanation:
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given in-principle approval for Public Sector Banks to amalgamate through an Alternative Mechanism (AM).

The decision would facilitate consolidation among the Nationalised Banks to create strong and competitive banks.

The decision regarding creating strong and competitive banks would be solely based on commercial considerations.

The proposal must start from the Boards of Banks.

The proposals received from Banks for in-principle approval to formulate schemes of amalgamation shall be placed before the Alternative Mechanism (AM).

After in-principle approval, the Banks will take steps in accordance with law and SEBI’s requirements.

The final scheme will be notified by Central Government in consultation with the Reserve Bank of India.

Background:

  • In 1991, it was suggested that India should have fewer but stronger Public Sector Banks.
  • However, it was only in May 2016 that effective action to consolidate public sector banks began to be taken by announcing amalgamation of six banks into the State bank of India.
  • The merger was completed in record time, unlike earlier mergers of State Banks of Indore and Saurashtra.
  • SBI is now a single bank with about 24000 branches, over 59000 ATMs, 6 lakh POS machines and over 50,000 business correspondents, which serve all parts of the country, including far flung areas.
  • Indeed 70% of SBI’s network lies in rural and semi urban areas. In that sense, the bank serves to unite India through a uniform banking culture.
  • It also has a significant international presence, and is one of the largest global banks.
  • Its size, financial strength and outreach have made it possible for customers to access a worldwide network of branches across all time zones, as well as to a very wide variety of banking products and superior technology.
  • Loans to the small business man or woman and to the Krishak have become cheaper as SBI offers the lowest lending rates.
  • More than 8.6 lakh merchants have been on board on BHIM Aadhaar, Bharat QR and POS, increasing the digital banking footprint. SBI has successfully raised Rs.15,000 crore QIP.
  • There are now 20 PSBs other than SBI.


8)   ICMR signed an MoU with which institute for collaboration on vaccine research and development?
- Published on 23 Aug 17

a. International Vaccine Institute
b. Serum Institute of India
c. National Genomics Institute of India
d. Only a and c
e. All the above
Answer  Explanation  Related Ques

ANSWER: International Vaccine Institute

Explanation:
The Indian Council of Medical Research (ICMR) has signed an MoU with the International Vaccine Institute (IVI).

This is for collaborating on vaccine research and development.

India will commit $5,00,000 (₹3.20 crore) annually for a stake in IVI - an amount approved during a Cabinet meeting in January

The MoU was signed between Soumya Swaminathan, the Director General of ICMR and Secretary, Department of Health Research, Manoj Jhalani, Additional Secretary and managing director, National Health Mission, and IVI Director General Jerome H. Kim.

IVI has been partnering with Indian vaccine manufacturers, research institutes, government, and public health agencies on vaccine development, research, and training.

One of the most successful collaborations was with Shantha Biotech on the development of Shanchol, the world’s first low-cost oral cholera vaccine.

The vaccine was licensed in India in 2009 and WHO-prequalified in 2011.

India is a vaccine industry powerhouse that supplies 60% of the world’s vaccines.

The signing of the MoU is a continuation of our partnership with India to provide safe, effective and affordable vaccines for people around the world.


9)   A Grant Agreement from the Global Environment Facility of which bank was signed by Ministry of Finance?
- Published on 17 Aug 17

a. World Bank
b. New Development Bank
c. Asian Development Bank
d. Standard Chartered
Answer  Explanation  Related Ques

ANSWER: World Bank

Explanation:
A Grant Agreement from the Global Environment Facility (GEF) of the World Bank of USD 24.64 million for “Ecosystem Service Improvement Project” was signed on 16th Aug 2017 by the Ministry of Finance on behalf of the Government of India and the World Bank.

The size of Project is USD 24.64 million which entirely will be financed by the World Bank out of its GEF Trust Fund.

The project’s duration is 05 years.

Ministry of Environment, Forest and Climate Change (MoEF&CC) will implement the Project in the States of Chhattisgarh and Madhya Pradesh through Indian Council of Forestry Research & Education under the National Mission for Green India.

The objective of the Project is to strengthen the institutional capacity of the Departments of Forestry and Community Organisations to enhance forest ecosystem services and improve the livelihoods of forest dependent communities in Central Indian Highlands.


10)   Which social media giant has launched the SheMeansBusiness initiative for women entrepreneurs in Odisha?
- Published on 16 Aug 17

a. Facebook
b. Twitter
c. LinkedIn
d. Pinterest
Answer  Explanation  Related Ques

ANSWER: Facebook

Explanation:
Social media giant Facebook will monitor the growth of the MSMEs in Odisha after imparting training to them in next one year.

The social networking giant has partnered the Odisha’s MSME department and Project Mission Shakti to train 25,000 entrepreneurs by the end of 2018.

The state government has plans to organise hands-on workshops for MSME entrepreneurs and women SHGs on 'Digital Marketing Skills'.
Facebook will prepare a data base through registrations in which they will take the email ids and mobile numbers of entrepreneurs in all the workshops.

After sometime either through personal conversations or through email, they can find out what is the difference Facebook has made in the business turnover or profits.

Facebook launched its SheMeansBusiness programme in Bhubaneswar, which was attended by about 1,100 women entrepreneurs of the state. The programme of Facebook is launched in 16 countries around the world including India.

It is designed to reach out to aspiring and established women entrepreneurs to help them build and grow their business online.
As per Facebook, it is the largest congregation globally under SheMeansBusiness programme.

More than 150 entrepreneurs today created their pages and uploaded their products on their profile.

CM Naveen Patnaik stressed on the use of the three Ts - technology, teamwork and transparency - to bring about transformation in the lives of people.

This is amply demonstrated today in the partnership of the government with Facebook - a partnership aimed to reduce the digital divide and empower nearly 25,000 entrepreneurs and SHGs over the next one year.


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