when is a candidate given 40+ marks??? what if his/her gd performance was among the top 2 in the group and in the interview he/she answers all the questions and the panel is cordial and even smiles throughout??? probability kya hai aisay case main 40+ score aanay ki?? experienced candidates?
highest marks scored in sbi po 2014 general category?
when we can expect sbi po 2015 final results??....
RBI's new norms for base rate calculation
General Knowledge and Current Affairs are an important component of many competitive exams, such as the UPSC Civil Services Examination, SSC CGL Exam, Bank PO & other PSU entrance tests, etc. Therefore, understanding the concepts/terms/events that are significant in our daily lives is critical for aspirants. To make your preparation easier and to help you score better in your exams, we at PaGaLGuY bring you brief articles on important phenomena, concepts and events. Spend just 15 minutes every day on pagalguy.com and score at least 10 more marks in your General Studies paper!
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In this article,
we would discuss the RBI's new base rate guidelines.
On September 1, the Reserve Bank of India (RBI) released the draft guidelines on computation of base rate (minimum rate below which banks are not supposed to lend to its customers) based on marginal cost of funds. While the central bank asserts that this would enable monetary policy transmission, financial experts and rating agencies feel that this overhaul would lower banks' profitability.
What prompted the action?
The RBI decreased repo rate (rate at which the central bank lends to commercial banks) by 0.25 percentage points each in January and February. However, banks delayed implementation of the rate cuts citing reasons like rising cost of funds, mounting NPAs, etc, thereby disappointing scores of customers awaiting a drop in their EMIs on loans.
Minister of State for Finance Jayant Sinha stated that 70 banks, including 23 PSBs, failed to pass on the benefit of lower rates to customers. It was only when the central bank came down heavily on them did they finally cut rates in April, nearly three months after the first repo rate cut.
Marginal-cost-of-funds approach
RBI declared in July 2010 that the base rate would be the benchmark for banks' lending rates. It is calculated using different methods-the marginal cost of funds, average cost of funds and the blended cost of funds (liabilities) method.
The RBI has proposed the calculation of base rate based on the marginal cost of funds i.e. the cost of funding one additional loan, assuming that the bank's cost of funds remains the same.
Calculation of marginal cost should consider all sources of funds other than equity. Cost of deposits should be calculated using the latest interest rate/card rate payable on current and savings deposits and the term/fixed deposits of various maturities. Cost of borrowings should be arrived at using the average rates at which funds were raised in the last one month preceding the date of review.
In this approach, while income from loans falls immediately, cost of funds do not fall correspondingly. This is because funds in the form of deposits are locked in at fixed rates, which do not get revised.
The RBI has given banks time till April 1, 2016 to adopt and implement the guidelines.
Why the new guidelines for calculating base rate?
One of the main reasons the RBI has recommended this approach is to ensure monetary policy transmission (occurs when the RBI's monetary policy decisions result in changes in the economy, especially price levels). In other words, the policy rate cuts effected by the RBI result in changes in the money supply, asset prices, credit availability, exchange rates, and affect market expectations, among other things.
This is possible only if there is some uniformity in methodologies banks use to calculate base rate.
The RBI also reasoned that lending rates need to be sensitive to policy rates so that customers benefit from rate changes quicker than before.
Impact on borrowers and banks
- One major advantage for borrowers is that they would not have to endure inordinate delays in reduction of interest rates by banks after the RBI's policy rate cuts.
- This method of computing base rate would increase volatility of interest rates. While a decrease would be favourable for retail loan customers, during a policy rate hike, the loan rates would also increase faster.
- However, rating agencies state that this methodology can lessen banks' profitability. As per Crisil's estimates, base rates would decrease by approximately 50 basis points (or 0.50% as one bps = 0.01%). Hence, in FY17, the one-time loss would amount to Rs20, 000 crore or 15% of the banking industry's total estimated profit for that year.
- Losses would be pronounced in case of banks that have floating interest rates and those with more term deposits and less of CASA (current account and savings account).
- The only potential gain for banks from a drop in base rates would be an increase in pace of credit growth. Also, it could improve their competitive positioning, as presently banks are losing credit-worthy corporates to capital market sources (bonds and commercial paper).
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General Knowledge and Current Affairs are an important component of many competitive exams, such as the UPSC Civil Services Examination, SSC CGL Exam, Bank PO & other PSU entrance tests, etc. Therefore, understanding the concepts/terms/events that are significant in our daily lives is critical for aspirants. To make your preparation easier and to help you score better in your exams, we at PaGaLGuY bring you brief articles on important phenomena, concepts and events. Spend just 15 minutes every day on pagalguy.com and score at least 10 more marks in your General Studies paper!
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In this article,
we would discuss the RBI's new base rate guidelines.
On September 1, the Reserve Bank of India (RBI) released the draft guidelines on computation of base rate (minimum rate below which banks are not supposed to lend to its customers) based on marginal cost of funds. While the central bank asserts that this would enable monetary policy transmission, financial experts and rating agencies feel that this overhaul would lower banks' profitability.
What prompted the action?
The RBI decreased repo rate (rate at which the central bank lends to commercial banks) by 0.25 percentage points each in January and February. However, banks delayed implementation of the rate cuts citing reasons like rising cost of funds, mounting NPAs, etc, thereby disappointing scores of customers awaiting a drop in their EMIs on loans.
Minister of State for Finance Jayant Sinha stated that 70 banks, including 23 PSBs, failed to pass on the benefit of lower rates to customers. It was only when the central bank came down heavily on them did they finally cut rates in April, nearly three months after the first repo rate cut.
Marginal-cost-of-funds approach
RBI declared in July 2010 that the base rate would be the benchmark for banks' lending rates. It is calculated using different methods-the marginal cost of funds, average cost of funds and the blended cost of funds (liabilities) method.
The RBI has proposed the calculation of base rate based on the marginal cost of funds i.e. the cost of funding one additional loan, assuming that the bank's cost of funds remains the same.
Calculation of marginal cost should consider all sources of funds other than equity. Cost of deposits should be calculated using the latest interest rate/card rate payable on current and savings deposits and the term/fixed deposits of various maturities. Cost of borrowings should be arrived at using the average rates at which funds were raised in the last one month preceding the date of review.
In this approach, while income from loans falls immediately, cost of funds do not fall correspondingly. This is because funds in the form of deposits are locked in at fixed rates, which do not get revised.
The RBI has given banks time till April 1, 2016 to adopt and implement the guidelines.
Why the new guidelines for calculating base rate?
One of the main reasons the RBI has recommended this approach is to ensure monetary policy transmission (occurs when the RBI's monetary policy decisions result in changes in the economy, especially price levels). In other words, the policy rate cuts effected by the RBI result in changes in the money supply, asset prices, credit availability, exchange rates, and affect market expectations, among other things.
This is possible only if there is some uniformity in methodologies banks use to calculate base rate.
The RBI also reasoned that lending rates need to be sensitive to policy rates so that customers benefit from rate changes quicker than before.
Impact on borrowers and banks
- One major advantage for borrowers is that they would not have to endure inordinate delays in reduction of interest rates by banks after the RBI's policy rate cuts.
- This method of computing base rate would increase volatility of interest rates. While a decrease would be favourable for retail loan customers, during a policy rate hike, the loan rates would also increase faster.
- However, rating agencies state that this methodology can lessen banks' profitability. As per Crisil's estimates, base rates would decrease by approximately 50 basis points (or 0.50% as one bps = 0.01%). Hence, in FY17, the one-time loss would amount to Rs20, 000 crore or 15% of the banking industry's total estimated profit for that year.
- Losses would be pronounced in case of banks that have floating interest rates and those with more term deposits and less of CASA (current account and savings account).
- The only potential gain for banks from a drop in base rates would be an increase in pace of credit growth. Also, it could improve their competitive positioning, as presently banks are losing credit-worthy corporates to capital market sources (bonds and commercial paper).
To get fresh updates about different exams on your Facebook & Twitter timelines, subscribe to our pages created specifically for them. We will post only exam specific links on these pages:
Bank PO:
FB: https://www.facebook.com/pagalguybankpo
Twitter: https://twitter.com/PaGaLGuYBankPO
SSC & Other Exams:
FB: https://www.facebook.com/pages/Pagalguy-SSC-CGL-Others/879667042056262
Twitter: https://twitter.com/pagalguyssc
UPSC:
Facebook: https://www.facebook.com/pages/Pagalguy-UPSC/951926044840262
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Interview Venue : LHO Bangalore
They were asking for noc even from the guys working in private firms. Did anyone else had to give undertaking for producing a noc letter from the private firm
chalo is saal ka GD PI khatam hua ab result 😁
Last year SBI PO GD/PI started on 8th Oct and continued till 19th and the final results came on 29th Nov so looking at that i suppose the final results shld cme in the last week of Oct??
-Off topic-
OICL AO 2015 results declared!
Is there some minimum qualifying marks for GDPI also out of 50.
Lic aao marks declared..share ur marks
Sbi lho lucknow ka panel 1 kai sa laga
Hi Puys!! Now that the interviews are over,Can we expect the marks scored in the written examination now like in IBPS??
GD
.topic "Britisher rule was boon or bane for india..." only 2 people spoke in hindi including me...
i spoke 5th and gave new point of view of trade by them and how it affected ous...jo ki mre baad 4 logo ne same point pe bola ki it all started with trade
In open discussion sabzi mandi ban gayi and koi khas conclusion nikla nahi har koi bole hi jaa rha tha.....
PI
QUESTIONS
ABOUT my home town....then about banking system in india both answered
then why btech answered 3 min bola mne is baat pe.
Then p5+1 countries and iran deal answered
..then followed by ques on nuclear energy in india.. answered
Then 2nd member asked me about why gpd calculation base year is changed..i answered ...fr wo buddha deep me ghus gya a some point i had to say sorry sir i dont knw abt technicalities in deep...
Then a ques on nbfc answered
Finaly a man asked me about human nature of traveling n how it is benificial answerd
then she asked about few chinese traveler jo ki main nh janta tha....
I Spoke with confidence and never fumbled.
Bs khtm...my panel was very helpful...pure time haske baat ki n it was good feeling except of few hiccups due to nervous ness...mne 3 baje good morning bol dia :(
EXPERIENCED BHAI LOG BATAO KI AAPKE HISAB SE KAISA GAYA MERA GD/ PI N HOW MUCH SHOULD I EXPECT IN MINIMUM.
pls bhai's and behan's apni rai dijiye.
Kisi ke SBI wale chacha ne cutoff bataya kya? Bhateejon please share! 😛
SBI PO 2015 Cutoff Prediction:
Last year no of posts = 1700
Written cutoff = 112
Final cutoff = 55.20
So, what we see here is final cutoff was about half of written cutoff. So, our job becomes easy if we predict written cutoff.
Last year was 2014,
2+0+1+4=7 and written cutoff = 7 x 16
So, this year's cutoff = (2+0+1+5) x 16 = 128
So, cutoff can be around 64. But, 64 was also Associates cutoff. So, its unlikely that SBI will repeat cutoff. So, cutoff can be 63.
But, This year India won a series against Sri Lanka. That means competition has increased. So, cutoff can be 65.
But 65 seems too high to digest. So, lets reverse it to 56. 56 will be the cutoff.
PS: Nahi maanna hai to mat maano. Btw, mera mama SBI me security guard hai.
cut off prediction ke liye kuch tips :
1. sabne 140-150 attempt kiye h fir bhi least attempt 96 sune gaye h so 90 se upar cutoff nahi h to logo ne 100 ki range me bhi attempt kiye hi h.
2. sab log pagalguy use nahi karte so sample of marks bahut kam h so we can't predict exact score.
3. 2013 me 152/250 was cutoff and final was 63/100 means u need only max. 36 marks in gd/pi
so cutoff will be 120/250 and between 57-58/100 max
16 Sept /SBI LHO Delhi /panel 3 /afternoon
All candidates were from Rajasthan (Jaipur,Jodhpur & 1-2 from bharatpur). Some were known faces from mains test centre and some from SBI Asso gd/pi.
GD Topic was : Liberalization has lead to inclusive growth
Interview : Few qs from current affairs, few from banking sector, 4 qs from biodata and rest was general qs like personalities, history, geography.
overall all candidates were happy & satisfied after interview.
(Those who were present can add more to the experience)
Acha dostoo yeh cutt off n last marks to get call for gd/pi m usually kitna ka difference rehta h? Jaise last year obj ki cutt off 80 thi and descriptive ki 20 par last marks to get the call was 112..kuch trend h ismai?
Dostoo aap mai se khi logon ne last year b sbi ka exam dia hoga..apka ko kaisa laga exam ..was it tougher than last year or was it easier than last year?