Current Affairs - Finance

The Asian Development Bank (ADB) partnered with Aadhar Housing Finance Limited (AHFL) through a $60 million financing agreement aimed at providing housing loans to low-income women in India. This initiative addresses the financing gap in affordable housing and promotes financial inclusion, particularly in states like Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, and West Bengal. ADB's support underscores its commitment to inclusive and sustainable development across Asia and the Pacific region, focusing on critical sectors such as housing and infrastructure.

Life Insurance Corporation of India (LIC) raised its stake in IDFC First Bank to 2.68% by acquiring additional shares through a private placement offer. This move underscores LIC's strategy to strengthen its investment portfolio in the banking sector, enhancing its position as a major shareholder in IDFC First Bank.

Project Nexus is a collaborative effort between RBI, BIS, and central banks of ASEAN countries to enhance the efficiency, speed, and cost-effectiveness of retail cross-border payments. Scheduled to launch by 2026, this initiative will integrate domestic fast payment systems across Malaysia, the Philippines, Singapore, Thailand, and India, marking a significant advancement in international payment systems.

The Reserve Bank of India announced the SAARC Currency Swap Framework for the period 2024-27. This framework aims to facilitate bilateral swap agreements with SAARC central banks, providing a backstop line of funding for short-term foreign exchange liquidity requirements or balance of payment crises among SAARC member countries. The initiative underscores India's commitment to regional financial stability and cooperation within the South Asian Association for Regional Cooperation (SAARC) framework.

ICICI Bank recently joined the elite club of Indian companies with a market capitalisation exceeding $100 billion. As of June 25, 2024, ICICI Bank's market cap reached approximately Rs 8.4 lakh crore, driven by a significant rise in its share price over the past year. This milestone underscores ICICI Bank's position as the second largest bank in India by market capitalisation, trailing only HDFC Bank among Indian banks.