Grade Point
aur Grade Point out off, me kya likhna hi, mere ko cpi 7.25 mila hai , isi ko grade point me likhu kya
Important -
TIME classes, dadar is going to conduct a FREE GDPI sessions for those who have cleared SBI PO mains this saturday and sunday
Schedule -
29th Aug -
4 to 8.30pm on GDPI Basic
30th Aug -
11 to 1 pm - Mock Interview (prior registration)
1 to 5pm - Session on Banking Terms and terminology
Documents to carry - 2 passport size pics, a copy of Shortlist /Call letter where you are shortlisted for SBI PO Mains/ LIC ADO or both.
Venue for both days - TIME Dadar Center
169, Satnam Mansion,
1st floor,
Dr. Ambedkar Road,
Near Chitra Cinema
Dadar East
OBC guys plz post the format in which we have to submitt OBC certificate on or after 1-04-2015 and plz tell me whether it is caste certificate or Non creamylayer certificate...plz answer me as soon as possible its very urgent....
sahi likha hain
I know a very common question but still asking! Why low salaried, monotonous, Non - Engg - Bank job after a lucrative, fast paced, challenging, Private Engg Job?
Another common question.............if posted in rural, tribal, jungle,naxal area will you accept the offer? Why? Don't want to live in cities?
Tax on alcohol, opium and bhaang is collected by states. Why?
People how is India unique in terms of her being insulated from the global economic shocks? What are the characteristic features that insulates her and gives her that advantage?
Profile of two private sector banking professionals as Managing Director (MD) and Chief Executive Officer of Bank of Baroda (BoB) and Canara Bank. This is the first time that Union government has appointed the two candidates from the private sector to head the Public Sector Banks (PSBs).
Mr. P. S. Jayakumar, also known as Jaya, has been Chief Executive Officer, Managing Director and Director of Bank of Baroda since August 14, 2015. Mr. Jayakumar served as Managing Director, Chief Executive Officer of VBHC Value Homes Pvt Ltd. He serves as the Managing Director of Value and Budget Housing Corporation Pvt. Ltd. Mr. Jayakumar served as Head of Balance Sheet Optimisation - Treasury in Asia-Pacific at Citigroup Inc. since May 2008.
Rakesh Sharma has been Chief Executive Officer, Managing Director and Director of Canara Bank since August 14, 2015.Mr Rakesh Sharma served as Managing Director, Chief Executive Officer of Laxmi Vilas Bank Ltd and was Former Chief GM at SBI. Has held various domestic and international positions at India's largest lender
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India's largest banking entity State Bank of India (SBI) launched a Mobile wallet application dubbed as 'SBI Buddy'. It was launched by Union Finance Minister Arun Jaitley at a function held at State Bank Bhavan, Nariman Point in Mumbai. SBI's first female Chairperson Arundhati Bhattacharya was also present on the occasion.
Key features of SBI Buddy
Aims at providing convenient and secure digital payment system to its customers.
It was launched in collaboration with Accenture and Mastercard.
The application is available in 13 languages with several features including bill payment, all types of ticket bookings for movies, flights, payment and cash transfer among others.
It also has features like reminders to recharge, bill payments, dues settlement etc.
At present the app is available only on android based phones and can be downloaded from Google Play Store. SBI soon is going to launch this app on Apple App Store.
SBI Foundation
State Bank of India also launched SBI Foundation, a subsidiary as an implementing agency for its corporate social responsibility (CSR) activities. Union Finance Minister unveiled website and the logo of SBI Foundation on the occasion of launching the SBI Buddy application. SBI foundation will encourage, promote and develop causes related to environment, education, children welfare, women empowerment and manage all the CSR activities of the SBI Group.
India's largest private sector lender ICICI Bank has launched 'Smart Vault' first of its kind fully automated digital locker facility in India.
Key features of 'Smart Vault'
The locker is equipped with multi-layer security system, including PIN, biometric and debit cards authentication.
This system has been designed in lines with Make In India programme as it has been manufactured and designed by Indian partners of ICICI Bank.
Customers can access the vault without any intervention by the branch staff and the facility will be available to customers even on weekends and post banking hours.
The vault facility uses advance robotic technology to access the lockers from the safe vault.
The lockers will be available in three different sizes and charges will depend on the size.
Capital Adequacy Ratio
The capital adequacy ratio (CAR) is an international standard that measures a bank's risk of insolvency from excessive losses. Currently, the minimum acceptable ratio is 8%. Maintaining an acceptable CAR protects bank depositors and the financial system as a whole.
Expressed as a formula, the CAR equals the sum of the bank's tier one capital plus tier two capital, divided by its risk-weighted assets.
CAR is also known as CRAR (capital to risk assets ratio).
A bank's tier one capital is the ordinary capital of the bank. This capital can absorb bank losses without the bank having to suspend trading.
Tier two capital is the bank's subordinated debt. This is the capital that can absorb losses if the bank has to shut down.
Risk weighted assets are calculated by looking at the bank's loans and evaluating their riskiness. Each loan is assigned a percentage number. The higher the percentage, the riskier the loan. A government loan gets a low percentage, often zero. Loans to individuals can go as high as 100%. The risk percentage is multiplied against the loan amount, and then added to the other loan amounts multiplied against their risk percentages.
Assume Big Bank has $2 million in tier one capital and $1 million in tier two capital. It also has three loans and their assigned riskiness is as follows:
- $20,000,000 to Capital City at 10% riskiness
- $40,000,000 to Giant Conglomerated at 50% riskiness
- $10,000,000 to Swifty Smith at 100% riskiness
To calculate the CAR formula, first add the tier 1 and 2 capital:
$2 million tier 1 + $1 million tier 2 = $3 million capital
Then calculate the Risk weighted assets:
- $20,000,000 x 10% = $2,000,000
- $40,000,000 x 50% = $20,000,000
- $10,000,000 x 100% = $10,000,000
Which combined, equals $32,000,000
So Big Bank's CAR formula is:
$3 million / $32,000,000 =
Based on the formula, Big Bank's CAR is 9.375%, just above the 8% threshold.
The Reserve Bank of India (RBI), currently prescribes a minimum capital of 9% of risk-weighted assets, which is higher than the internationally prescribed percentage of 8%. Most banks in India have a capital adequacy of more than 12 %. A bank with a higher capital adequacy is considered safer because if its loans go bad, it can make up for it from its net worth.
WRT to the CAR post
Tier 1 Capital:-
Tier 1 capital refers to the core capital a bank must maintain in relation to its assets. A bank's tier 1 capital is comprised of the bank's common stock and its retained earnings, which are called disclosed reserves.
Tier 1 capital is a concept introduced in the accords published by the Basel Committee on Banking Supervision in the late 1980s. These accords require banks to retain a certain level of capital as protection against unexpected losses on their loans. Banks are already protected from losses due to customer defaults or renegotiated loan rates by regulatory-required loan loss reserves.
Tier 1 capital is used in the calculation of the tier 1 capital ratio, which is used to rate a financial institution's capital adequacy.
Tier 2 Capital
Tier 2 capital is a category of supplementary capital that banks hold.
A bank's capital is considered its buffer, or its storage of cash and safe assets it can use to cushion the blow of an unexpected loss. Capital requirements for banks in the United States are based on the weighted risk associated with their assets. Banks categorize their capital into two tiers.
Tier 2 capital includes revaluated reserves (the increase in an asset's value following reappraisal), undisclosed reserves, hybrid instruments and subordinated debt (debt that's paid only after other debt). Even though it's considered more risky than Tier 1 capital, Tier 2 capital is included in the calculations used to determine a bank's reserve requirements. A bank's Tier 2 capital cannot exceed its Tier 1 capital.
Tier 1 capital typically includes its core capital, including common stock and disclosed reserves, or its net income that is not distributed as dividends. Banks base their deposit and loan business on their Tier 1 capital. Tier 1 capital is considered less risky than Tier 2, and banks should aim to have as much of it as possible.
Tier 2 capital can be split into upper and lower levels. Upper Tier 2 capital is senior to preferred capital and equity. It has deferrable and cumulative coupons, and its interest and principal can be recorded.
Lower Tier 2 capital is less expensive for banks to issue. It includes subordinated debt with a minimum maturity of 10 years, and coupons that trigger default.
Emerging Markets: Analyzing India's GDP
India was among the wealthiest nations in the ancient times, aptly nicknamed the golden bird. Throughout history, India has been subject to multiple invasions, the most damaging one being the two-century long British colonial rule that shattered India's social and economic fabric. When India finally achieved a hard-won independence in 1947, it was a divided nation with a destitute economy, poor infrastructure, over dependence on imports and a legacy of poverty and illiteracy.
India has come a long way since 1947. It's nearly seven-decade journey since independence has brought about many changes in the nation's socio-economic landscape. After gaining freedom, India set about rebuilding its economy by rolling out a series of five-year plans, the first of which was introduced in 1951. The first of these five-year plans focused on rebuilding the economy by becoming self-reliant for food supply and by raising domestic savings for growth. Successive five-year plans encouraged industrial development and services. An economic turning point came during the 1991 reforms which introduced the policies of liberalization and privatization, and encouraged flexibility in industrial licensing and foreign investment.
India hasn't looked back since. According to World Bank data, the nation experienced an average growth rate of 5.8% during the 1990s, 6.9% during the 2000s and 7.3% from 2010-2014. The size of India's economy currently stands at $2 trillion. It is the world's tenth largest economy in terms of nominal gross domestic product and the third largest economy in the world in terms of purchasing power parity.
GDP Composition
India's gross domestic product (GDP) consists primarily of the agricultural sector, the industrial sector, and tertiary industries (the service sector). According to 2014 data by the World Bank, agriculture accounted for 17% of India's GDP, while industry and services accounted for 30% and 53%, respectively.
Declining Agriculture
India's economy is rooted in a strong agricultural sector which constituted about 52% of its GDP in 1951. It truly was an agrarian economy. Over the years, agriculture has slowly declined as a percentage of the GDP. In the late 1980s, agriculture fell to just below 30% of the GDP and after 2004, agriculture fell further to under 20% of GDP. However, agricultural (which includes forestry, fishing, livestock production and cultivation of crops) still holds huge importance for the Indian economy. The sector employs about 50% of the labor force, contributes a declining yet significant share of 17-18% to the GDP and constitutes about 10% of India's exports.
In terms of produce, India's is the among the world's largest producers of tea, milk, pulses, cashew, spices, jute, rice, wheat, fruits and vegetables, sugarcane, oilseeds and cotton. The country accounts for 2.07% of the global agricultural trade. There is immense potential for improvement and growth in the agricultural sector and initiatives by the government to boost long-term investment should help realize those in the coming years.
Industry
The share of the industrial sector (which includes construction, mining, manufacturing, electricity, gas and water) has hovered between 24%-29% of the GDP for the last three decades (from 1980 onwards). The sector employs just about 20% of the labor force In India. The industrial sector has lagged behind in India's transformation from an agrarian economy to one being dominated by the services sector.
The Index of Industrial Production (IIP) is a monthly assessment by India's Ministry of Statistics and Programme Implementation (MOSPI) that measures the pulse of short-term industrial activity in India. The IIP is composed of different sectors--manufacturing, mining and electricity--and each sector has a different allocation in the index. Manufacturing contributes 75.52% while mining and electricity contribute 14.16% and 10.32%, respectively. The 75% allocation speaks about the importance of manufacturing in the economy and the dominance of the industrial sector. However, despite huge potential, the manufacturing sector is still largely untapped, contributing only about 17% to the GDP. It's been a journey of highs and lows.
The government is making efforts to push the industrial sector by boosting manufacturing. Under Indian Prime Minister Narendra Modi's government, the "Make in India" initiative aims to position India as a global manufacturing hub. The initiative hopes to increase manufacturing by 25% (as measured in percentage of GDP) over the next 10 years, a task easier said than done. If an industrial sector, led by manufacturing, gains steam, it would create millions of jobs, reduce dependence on imports, increase exports and complement the services sector.
The Rise of the Services Sector
Growth in the services sector in India started during the mid-1980s, but it was the reforms of the 1990s that accelerated this growth. The services sector is now the largest and fastest growing sector of the economy, contributing more than 50% to the GDP. India's Central Statistics Office classifies the services sector into four main industries: 1) restaurants, hotels and trade; 2) storage, communication and transportation; 3) finance, insurance, business services and real estate; and 4) social, personal and community services.
The average share of the services sector in India's GDP was below 30% during the 1950s. During the 1960s and 70s, services gradually crossed the 30% mark. The sector then hovered around 40% and 45% in the 1980s and 1990s. After 2000, the contribution of the services sector to the GDP crossed 50%. From 2000 to 2014, the services sector has grown at a compound annual growth rate of 8.5%.
According to India's Department of Industrial Policy and Promotion, the services sector received the maximum foreign direct investment, amounting to $41,755 million (or 18%) of the total foreign inflows from April 2000 to December 2014. While the services sector has contributed to the country's growth, critics point out that the sector has generated relatively few jobs when compared to its rising importance to the nation's GDP. It employs a little more than 30% of the country's labor force.
The Bottom Line
According to the World Bank, "India carries great promise of an acceleration in economic growth that is also inclusive and sustainable." The fundamentals of the Indian economy are strong. It has reduced dependence on exports, boasts a high domestic savings rate and claims a rising middle class and consumer base. It also possesses enviable demographics: by 2020 India will be home to the largest working-age population in the world. Nevertheless, the real demographic-dividend can only be reaped if the government adequately invests in the skill development and education of its youth. To complement these basics, the government in power is pushing an ambitious economic development target and seeks to improve the macroeconomic environment and boost growth through manufacturing. However, India is still challenged by vast unorganized sector of businesses who operate outside of legal and tax provisions and dodge data collection. Tax evasion, poverty, structural bottlenecks, corruption, delays in reforms and inadequate infrastructure are all challenges to India's economy.
India Is Eclipsing China's Economy As Brightest BRIC Star
While the planet's largest democracy has long toiled in the shadow of the world's second-largest economy, India is finally stepping into the limelight thanks to the election of a pro-business government in mid-2014, even as growth slows perceptibly in China.
A brief economic history of India: 1947 - 1991
India's economic history since it attained independence can be divided into two distinct phases - the 45-year period to 1991 when it was largely a closed economy, and the period after 1991 when economic reforms led to revitalization and rapid growth.
India faced a host of daunting challenges when it became an independent sovereign nation in 1947, ranging from religious riots and war to rampant poverty, low literacy and a shattered economy. These issues shaped its economic policies - which were somewhat socialist in nature and designed to encourage self-reliance while lessening the country's dependence on imports - for the next 40 years. However, the government's iron grip on nearly every aspect of the economy only succeeded in creating a pervasive industrial licensing system, disparagingly referred to as the "License Raj," that served to breed bureaucracy and foster corruption.
Despite these obstacles, the Indian economy managed to amble along at a 3%-4% growth pace until the 1980s. In fact, economic growth increased in every decade from the 1950s onward, except for the struggling '70s, when the economy was hampered by oil shocks and near double-digit inflation. The Indian economy continued to remain closed to foreign investment throughout this period, its insularity highlighted by the exit of multinationals like Coca-Cola and IBM from the country in 1977. This exodus was precipitated by the stringent provisions of the Foreign Exchange Regulation Act, and tough demands made by the new Indian government, such as its insistence that Coca-Cola partner with an Indian company and share its secret formula.
The post-1991 period
Although India had made some perfunctory attempts to open up its insular economy in the late 1980s, these efforts attained the utmost urgency from 1990 onwards, as a balance of payments crisis took the country to the brink of bankruptcy. The collapse of the Soviet Union eliminated a major supplier of cheap oil to India, and as oil prices skyrocketed due to the Gulf War, India's foreign exchange reserves were depleted to less than $1 billion by mid-1991, only enough to cover two weeks of imports.
With the country in the grip of an economic crisis and still reeling from the assassination of former Prime Minister Rajiv Gandhi, an unexpected free-market champion emerged during this dark hour in the form of Manmohan Singh, a well-regarded economist who became India's new finance minister in June 1991. Singh immediately launched an ambitious slate of economic reforms based on three pillars - devaluation of the rupee, slashing of import tariffs, and decontrol of gold imports (to eliminate the "hawala" or currency black market). Singh also liberalized the industrial licensing policy and relaxed the rules for foreign direct and portfolio investments.
The measures paid off very handsomely, as the Indian economy was transformed into an IT and knowledge-based powerhouse with one of the fastest growth rates of the major global economies. From 1991 to 2011, India's GDP quadrupled, while its forex reserves soared more than 50-fold to over $300 billion, and exports surged 14-fold to $250 billion. The benchmark BSE Sensex index rose almost 15-fold in the 20-year period from June 1991 to June 2011.
Rapid economic growth also led to the emergence of a huge middle class population that had an insatiable demand for consumer goods. An example of this runaway demand can be seen in the explosive growth of the phone industry in India. India previously had an antiquated phone system that resulted in a landline waiting list that was measured in years. The overhaul of the telecom sector and the introduction of cellular phones in the 1990s dramatically changed the phone industry. The number of phone subscribers soared from 0.5 million in 1991 to 960 million by May 2012, the overwhelming majority of which were cellphone users; this was not just an urban revolution but a rural one as well, with rural users making up 35% of the subscriber base. As a result, the number of phones per 100 people in India increased in leaps and bounds, from just 0.02 in 1950 to almost 3 in 1990, and over 79 in 2012.
The second wave
Despite these tremendous achievements, the Indian economy was bogged down in recent years by various factors. These included inadequate infrastructure, a deteriorating financial position characterized by rising fiscal and current account deficits, and most importantly, fractious coalition governments that made it difficult to achieve consensus and push through the tough reforms needed to take the economy to the next level.
However, the landslide victory of the Bharatiya Janata Party (BJP) in India's general elections in May 2014 handed the party and its pro-business leader, Prime Minister Narendra Modi, an unequivocal mandate. Investors were confident that Modi would be able to replicate the success he enjoyed as chief minister of the western Indian state of Gujarat, where annual growth from 2003 to 2012 averaged 10.3% with Modi at the helm, a faster pace than India's 7.9% GDP growth rate over the same period. There was also unprecedented optimism that Modi would be able to expedite decisions on critical projects worth almost a quarter-trillion dollars that had been stalled by infighting between the previous government and its coalition partners.
The second wave of landmark reforms may not be as dramatic as the first wave that commenced in 1991, but they will have far-reaching effects on the Indian economy just the same. Proposed measures include infrastructure development, implementation of a goods-and-services (GST) tax that could contribute to a percentage point increase in annual GDP growth, and opening up more areas of the economy to foreign investment. Another priority would be reducing the burgeoning subsidy bill that had grown fivefold over the past decade to 2.6 trillion rupees annually.
Long-term growth drivers for India
- "Demographic dividend": Half of India's 1.2-billion population is under the age of 25. By 2020, India will have the world's youngest population, with a median age of 29 years, compared with a median age of 37 in China. This demographic dividend could potentially give India the biggest labor force and make it the largest consumer market in the world.
- Growing middle class: India's middle class of 250 million already represents one of the biggest consumer markets in the world. This educated, tech-savvy and relatively affluent group is expected to continue its rapid growth in the years ahead.
- Low penetration of goods and services: Despite the economy's progress over the past quarter-century, the Indian market still has a relatively low penetration of goods and services, which translates into massive untapped potential. For example, in 2009, there were only 11 passenger cars per 1,000 people in India, compared with 34 in China, 179 in Brazil, 233 in Russia, and 440 in the U.S.
- A functioning democracy: One of India's greatest strengths is that it is a vibrant and functioning - albeit a trifle chaotic - democracy, where the electorate regularly exercises its constitutional right to kick out non-performing governments. India's army, one of the world's largest, is also staunchly apolitical and has consistently remained aloof from political shenanigans.
- Established companies and institutions: India has a thriving business sector with dynamic SMEs and large companies that are increasingly expanding overseas, educational institutions that are among the world's best, and competent financial organizations. India's central bank, the Reserve Bank of India (RBI), is currently headed by Raghuram Rajan, who was formerly chief economist at the IMF.
Contrasting outlooks
The long-term outlook for the Indian economy is getting brighter just as that of its BRIC counterparts is getting murkier.
The IMF projected in its October 2014 World Economic Outlook report that the Indian economy would accelerate from a 5.6% pace in 2014 to 6.4% in 2015 , propelled by rising exports and investment. In contrast, China's growth is projected to moderate to a more sustainable pace, from 7.4% in 2014 to 7.1% in 2015, as decelerating credit growth slows investment and real estate activity continues to ease. While China continues to grow at a faster pace than India, the performance differential is shrinking, and for the first time in years, the growth trajectories are moving in opposite directions.
The outlook for Brazil and Russia is much less positive. The Brazilian economy contracted in the first half of 2014, and is forecast to grow only 0.3% in 2014, hindered by political uncertainty, low business confidence and tighter financial conditions. The IMF forecasts growth to rebound modestly to 1.4% in 2015. Russia is forecast to post the slowest growth of the BRIC nations in 2014 and 2015, as economic sanctions in the wake of the Ukraine conflict take their toll on the economy.
The Bottom Line
The IMF forecasts that India will become a $2-trillion economy in 2014 - the tenth biggest in the world - and will cross the $3-trillion threshold in 2019, which would make it the world's seventh biggest economy. But while the long-term outlook is very positive, the 26% increase so far in 2014 in the BSE Sensex index - which reached a record level of 27,354 in September 2014 - has made valuations among the most expensive in the emerging market space. Nevertheless, for investors who are comfortable with the risks inherent in emerging markets, India represents an alluring investment choice on a pullback, which could well occur if Modi is unable to proceed with reforms as rapidly as investors expect.
All about GST
any one given irda assis exm last week?? when are the result expected.as per the advert its last week of aug..and its already SATURDAY today..any no to contact the recruitment dept??
Somebody interested in forming a whatsapp grp...may add me!
All those preparing for GD-PI.. Need review for this site
http://www.irikai.com/online-courses/bank-po-interview/
How's it? Ever heard of it?