1. Namrata Randhawa Haley (Nik-ki Haley) is the first woman and non-white governor of which of the following states of the USA?
1) Louisiana
2) South Carolina
3) Texas
4) Alaska
5) California
2. Identify the mismatched pair
1) January 9 -Pravasi Bharatiya Divas (NRI Day)
2) January 12-National Youth Day
3) January 15 - Army Day
4) January 24- National Girl Child Day
5) January 27-National Voters Day
3. Fathimath Dhiyana Saeed is the new Secretary General of SAARC. She was the former attorney general of which of the following countries?
1) Pakistan
2) Afghanistan
3) Maldives
4) Bangladesh
5) India
4. The Permanent Representative of India to the United Nations is also presently the chairman of the United Nations Security Council Counter-Terrorism Committee. Name him/her?
1) Hardeep Singh Puri
2) Meera Shankar
3) Nirupama Rao
4) Ranjan Mathai
5) None of these
5. Who is the first sitting head of state ever indicted by the International Criminal Court (ICC) as well as the first to be charged with genocide?
1) Zubair Mohamed Salih
2) Ali Osman Taha
3) Omar al-Bashir
4) John Garang
5) None of these
6. Who among the following is the winner of the Phalke Ratna Award for the year 2011?
1) Dev Anand
2) Dharmendra
3) Shammi Kapoor
4) Shashi Kapoor
5) Amitabh Bachchan
7. Which of the following pairs is not matched correctly?
AUTHOR BOOK
1) Tony Blair - A Journey
2) George Bush - Decision Points
3) Bill Clinton - My Life
4) Cherie Blair- Speaking for Myself
5) Ronald Reagan- Going Rogue: An American Life
8. Where are the headquarters of ASEAN located?
1) Jakarta
2) Manila
3) Singapore
4) Bangkok
5) Kuala Lumpur
9. Which of the following organisations was officially commenced on January 1, 1995 under the Marrakech Agreement?
1) UNO
2) IMF
3) World Bank
4) ADB
5) WTO
10. Which foreign bank has 4.8% stake in Yes Bank?
1) BNP Paribas
2) Rabobank
3) HSBC
4) RBS
5) Barclays
11. Identify the mismatched pair
COUNTRY PRESIDENT
1) Sri Lanka- Mahinda Rajapakse
2) Iran -Mahmoud Ahmadinejad
3) Chile - Sebastian Pinera
4) Philippines - Benigno Aquino
5) Zimbabwe- Goodluck Jonathan
12. Which of the following statements about the Youth Olympic Games is not true?
1) The Youth Olympic Games (YOG) are held every four years and these games feature athletes between the ages of 14 and 18.
2) Johann Rosenzopf of Austria has developed the idea of the YOG.
3) The first summer YOG were held in Singapore in 2010.
4) The second summer YOG will be held in Nanjing, China in 2014.
5) The inaugural winter YOG will be held in Sochi in 2012.
13. Identify the mismatched pair
ORGANIZATION CHIEF
1) World Bank -Robert Zoellick
2) IMF -Christine Lagarde
3) WTO -Pascal Lamy
4) ADB - Haruhiko Kuroda
5) Amnesty International-Kamalesh Sharma
14. Which of the following books is not written by Chetan Bhagat?
1) Five Point Someone
2) One Night @ Call Center
3) Three Mistakes of My Life
4) Listening to Grasshoppers
5) 2 States:The Story of My Marriage
15. Which of the following famous personalities is the brand ambassador of Bank of Baroda?
1) Yusuf Pathan
2) Geet Sethi
3) Amitabh Bachchan
4) Irfan Pathan
5) Rahul Dravid
16. Which city will host the 99th Indian Science Congress in January 2012?
1) Chennai
2) Bhubaneswar
3) New Delhi
4) Hyderabad
5) Kolkata
17. Who among the following is a Billiards/ Snooker champion?
1) Jyothi Randhawa
2) Jeev Milka Singh
3) Pankaj Advani
4) Arjun Atwal
5) Gaganjeet Bhullar
18. Which of the following Prizes is given for mathematicians?
1) Templeton Prize
2) Nobel Prize
3) Kalinga Prize
4) Abel Prize
5) Pritzker Prize
19. Which of the following books is not written by Orhan Pamuk, the Nobel Prize winner from Turkey?
1) My Name is Red
2) Snow
3) Enigma of Arrival
4) The Museum of Innocence
5) Istanbul: Memories and the City
20. Anil Agarwal is the chief of which of the following companies?
1) Corus
2) Caparo
3) Arcelor Mittal
4) Vedanta Resources
5) Ashok Leyland
21. Which company manufactures Blackberry smart phones?
1) Nokia
2) Samsung
3) Onida
4) Sony Ericsson
5) Research In Motion
22. The headquarters of the North Atlantic Treaty Organization (NATO) is situated in which of the following cities?
1) London
2) Washington
3) Brussels
4) Vienna
5) Paris
23. Which of the following countries will host both the 2014 FIFA world cup football and the 2016 Olympic Games?
1) UK
2) Brazil
3) South Africa
4) USA
5) Qatar
24. Merdeka Cup is associated with which of the following sports?
1) Cricket
2) Football
3) Hockey
4) Chess
5) Volleyball
25. The recession occurring two times with a short gap in between is called?
1) Double deflation
2) Double inflation
3) Double Dip recession
4) Depression
5) None of these
26. Which of the following terms is not used in Cricket?
1) Ashes
2) Doosra
3) Silly Point
4) Love
5) Long On
27. What is the full form of SHGs?
1) Self Help Groups
2) Small Help Groups
3) Small Hope Groups
4) Self Hope Groups
5) Selfless Help Groups
28. In which year were the SBI Associate Banks nationalized?
1) 1955
2) 1949
3) 1959
4) 1969
5) 1980
29. In which year was the IDBI established?
1) 1961
2) 1960
3) 1962
4) 1964
5) 1965
30. Small Industries Development Bank of India (SIDBI) was established in 1990 with the headquarters in?
1) Lucknow
2) New Delhi
3) Mumbai
4) Nagpur
5) Kolkata
31. In which year did NHB start its operations?
1) 1985
2) 1988
3) 1987
4) 1990
5) 1992
32. Which city hosted the 12th Inter-national Indian Film Academy (IIFA) Awards ceremony in June 2011?
1) Bangkok
2) Macau
3) Colombo
4) Toronto
5) None of these
33. Who was selected for the prestigious G.D. Birla Award for Scientific Research for his contributions in the area of electronic communications for the year 2011?
1) Mahindra Agrawal
2) Subhasis Chaudhuri
3) Raghavan Varadarajan
4) Santanu Bhattacharya
5) None of these
34. The Saraswati Samman, an annual award for outstanding prose or poetry literary works in any Indian language, was instituted in 1991 by the K.K. Birla Foundation. Who was given this award in April 2011?
1) S.L. Bhyrappa
2) Surjit Paatar
3) Naiyer Masud
4) Jagannath Prasad Das
5) None of these
35. The Vyas Samman, instituted by the K.K. Birla Foundation, is given to an outstanding literary work in Hindi authored by an Indian citizen during the preceding ten years. Who was given this award for 2010 for his collection of poems 'Phir Bhi Kuch Rah Jayega'?
1) Amar Kanth
2) Mannu Bhandari
3) Vishwanath Prasad Tiwari
4) Kailash Vajpayee
5) None of these
36. In which field is the Chameli Devi Jain Award given annually?
1) Social Work
2) Journalism
3) Classical Dance
4) Cinema
5) Trade and Industry
37. The K.C Kulish International Award for Excellence in Print Media 2009 was conferred on the team of 'The New Crusading Guide' in June 2011. It is a newspaper published in which of the following countries?
1) South Africa
2) Sudan
3) Zimbabwe
4) Ghana
5) Egypt
Answers
1) 2 2) 5 3) 3 4) 1 5) 3 6) 2
7) 5 8) 1 9) 5 10) 2 11) 5 12) 5
13) 5 14) 4 15) 5 16) 2 17) 3 18) 4
19) 3 20) 4 21) 5 22) 3 23) 2 24) 2
25) 3 26) 4 27) 1 28) 3 29) 4 30) 1
31) 2 32) 4 33) 2 34) 1 35) 3 36) 2
37) 4
Friday, 2 December 2011
Thursday, 1 December 2011
Market Capitalization of all 24 Listed Public Sector Banks below that of 15 Listed Private Banks
The combined market capitalization of all 24 listed public sector banks,which control 73% of bank deposits,is currently below that of the 15 listed private banks.
On 15 November 2011, the combined market capitalization of the 24 public sector banks which include 19 nationalized banks, SBI and its three associates and IDBI was Rs 311877 crore. As against this,the market capitalization of 14 private banks was Rs 321613 crore. This is a reversal of the position at the beginning of 2011. As on 1 April 2011, the total mkt-cap of government-owned banks was Rs 439600 crore much higher than the Rs 374218 crore for private banks.
As on end-June 2011,PSU banks accounted for 74.6% of bank deposits while private sector banks had only 18%,with the rest of the funds lying with regional rural banks and foreign banks.In matters of credit, PSU banks account for 74.9% of bank loans in the country while private banks have only a 17.6% share.
Two bad quarters of 2011-12 for State Bank of India and reports of loan restructuring and NPA worries in public sector banks hit valuations hard.
HDFC Bank overtook SBI to become the most valuable bank in the country.Incidentally,SBI the largest lender in the country has contributed the most to the decline in value of public sector banks.
PSU banks can work around capital constraints in the short-term by consolidation or via a relaxation in norms that require the government to hold a minimum 51% stake.There also exists larger social burden on the public sector banks because of which they have had to restructure large loans. Compared to them the private banks have been selective in their lending and have had far fewer NPAs.
On 15 November 2011, the combined market capitalization of the 24 public sector banks which include 19 nationalized banks, SBI and its three associates and IDBI was Rs 311877 crore. As against this,the market capitalization of 14 private banks was Rs 321613 crore. This is a reversal of the position at the beginning of 2011. As on 1 April 2011, the total mkt-cap of government-owned banks was Rs 439600 crore much higher than the Rs 374218 crore for private banks.
As on end-June 2011,PSU banks accounted for 74.6% of bank deposits while private sector banks had only 18%,with the rest of the funds lying with regional rural banks and foreign banks.In matters of credit, PSU banks account for 74.9% of bank loans in the country while private banks have only a 17.6% share.
Two bad quarters of 2011-12 for State Bank of India and reports of loan restructuring and NPA worries in public sector banks hit valuations hard.
HDFC Bank overtook SBI to become the most valuable bank in the country.Incidentally,SBI the largest lender in the country has contributed the most to the decline in value of public sector banks.
PSU banks can work around capital constraints in the short-term by consolidation or via a relaxation in norms that require the government to hold a minimum 51% stake.There also exists larger social burden on the public sector banks because of which they have had to restructure large loans. Compared to them the private banks have been selective in their lending and have had far fewer NPAs.
Corp Bank scheme for Kerala Govt employees
Corporation Bank has announced special benefits for the permanent employees of the State Government.
Mr A.M.M.G. Nair, Zonal Manager, Corporation Bank, regional office, Kochi, said Corp Payroll Account is available for routing the salary of permanent employees through which they can withdraw 50 per cent of the amount as overdraft from the second month.
Instant ATM-cum-debit card, Internet banking, SMS banking, free remittance facility, cheque book, multi-city cheques and passbook are also available.
Payment of tax, insurance payment and NEFT can be done free of charge through Internet and ATM.
There is a concession of 1 per cent on interest rates and 50 per cent of processing charges on housing loans and 0.25 per cent concession on interest rates for vehicle loans. Gift cards are also available free of charge.
Monday, 28 November 2011
BANKING AWARENESS MCQs
a. IMF
b. Reserve Bank of India
c. SEBI
d. Union Ministry of Finance
Ans: b
2. Which body in India finally provided tax exemption on the 9.5 per cent interest income on PF deposits for 2010-11?
a. Reserve Bank of India
b. Income Tax Department
c. Employees’ Provident Fund Organisation
d. Corporate Affairs Ministry
Ans: b
3. (1) The report on Customer Service in Banks by a committee chaired by M. Damodaran, former Chairman of the Securities and Exchange Board of India (SEBI) that was released on 3 July 2011 recommended an increased deposit insurance cover of Rs.5 lakh so as to encourage individuals to keep all their deposits in banks.
(2) The panel also suggested blocking of lost ATM cards through SMS and immediate restoration of funds in case of non-dispensation of cash at an ATM within 5 working days.
Which of the above is not true?
a. Only 1
b. Only 2
c. Both 1 & 2
d. None of the above
Ans: b
4. The Reserve Bank of India (RBI) in a bid to tame inflationary pressure hiked the short-term indicative policy rate (repo rate) by 50 basis points on 26 July 2011. The repo rate currently stands at what percentage?
a. 7%
b. 7.5%
c. 8%
d. 8.5%
Ans: c
5. Which bank posted a 99 per cent drop in net profit at Rs 21 crore for the fourth quarter ended 31 March 2011 against Rs 1867 crore during the corresponding period in 2010?
a. Indian Overseas Bank
b. State Bank of India
c. Bank of India
d. United Bank of India
Ans: b
6. Who did global payments processing company MasterCard appoint as the General Manager, South Asia and Country President, India?
a. T. V. Seshadri
b. Vicky Bindra
c. Tunde Lemo
d. Ajay Banga
Ans: a
7. Government of India on 19 July 2011 appointed Usha Ananthasubramanian, former general manager of Bank of Baroda (BoB) as executive director of which public sector lender?
a. Central Bank of India
b. Punjab National Bank
c. United Bank of India
d. Gramin Bank
Ans: b
8. Name the public sector lender that selected Metlife as its partner for a proposed foray into the life insurance segment.
a. Syndicate Bank
b. Punjab National Bank
c. Corporation Bank
d. United Bank of India
Ans: b
9. Which bank signed a memorandum of understanding with Dewan Housing Finance Corporation (DHFL) under which DHFL will distribute home loans to Yes Bank's customers?
a. Canara Bank
b. ABN Amro bank
c. Yes Bank
d. HSBC
Ans: c
10. Which life insurance company in India launched a new non-linked health insurance plan, Jeevan Arogya?
a. HDFC Standard Life Insurance Co. Ltd
b. Life Insurance Corporation of India
c. IDBI Fortis Life Insurance Company Ltd.
d. SBI Life Insurance Co. Ltd
Ans: b
11. Which of the following public sector banks in November 2011 froze its lending to the power sector?
a. State Bank of India
b. Allahabad Bank
c. Punjab National Bank
d. United Bank of India
Ans: b
12. Which Indian bank on 10 May 2011 raised benchmark prime lending rate 75 basis points to 14% following raising of interest rates by RBI by basis points on 3 May 2011?
a. State Bank of India
b. Union Bank
c. Punjab National Bank
d. Bank of Baroda
Ans: a
13. The Reserve Bank of India on 26 April 2011 fined 19 banks, including the country's top private and foreign banks for violating its guidelines on derivatives. Which is the only public sector bank on the list of banks to be fined?
a. State bank of India
b. Punjab National Bank
c. Bank of India
d. Indian Bank
Ans: a
14. The Reserve Bank of India on 25 August 2011 released its Annual Report for 2010-11. Which of the following was not discussed in the Annual Report the Central Board of the RBI?
a. assessment of the macroeconomic performance during 2010-11
b. prospects for 2011-12
c. working and operations of the Reserve Bank and its financial accounts
d. role of regulatory bodies in controlling the financial markets
Ans: d
15. Reserve Bank of India (RBI) panel headed by headed by Usha Thorat, Director, Centre for Advanced Financial Research and Learning (CAFRAL) on 29 August 2011 came up with suggestion on non-banking finance company (NBFC). Which of the following related to this statement is not true?
1. The panel suggested the central bank to insist on a minimum asset size of more than Rs.25 crore for registering any new non-banking finance company (NBFC)
2. Transfer of shareholding, direct or indirect, of 25 per cent and above, change in control, merger or acquisition of any registered NBFC will require prior approval of the Reserve Bank.
3. Tier-I capital for capital to risk weighted assets ratio (CRAR) purposes would be specified at 12 per cent to be achieved in three years for all registered deposit-taking and non-deposit-taking NBFCs.
4. NBFCs would be subject to regulations similar to banks while lending to stock brokers and merchant banks and similar to stock brokers, as specified by the Securities and Exchange Board of India (SEBI)
a. 1 & 4
b. 2 & 4
c. Only 4
d. Only 1
Ans: d
16. Which Indian PSU bank in tune with its plans to expand its retail division in the UK entered the mortgage market in the country for the first time?
a. Punjab National Bank
b. Oriental Bank of Commerce
c. State bank of India
d. Indian Overseas Bank
Ans: c
17. Which of the following banks set up two loan processing centres for the small and medium enterprise (SME) segment on a pilot basis in Bangalore & in New Delhi in September 2011?
a. Corp Bank
b. United Bank of India
c. Syndicate Bank
d. Bank of Baroda
Ans: c
18. The government suspended M Ramadoss for alleged violations in issuing insurance cover to an airline during his stint as head of another state-run insurer. To which insurance group did he belong to?
a. New India Assurance
b. LIC
c. GIC
d. ICICI Insurance
Ans: a
19. Which of the following banks in early May 2011 entered into a tie-up with non-banking finance companies such as Future Capital, Bajaj Finance, and Reliance Capital to grow its retail portfolio?
a. Central Bank of India
b. State Bank of India
c. Bank of India
d. HDFC Bank
Ans: a
20. Which are the two Gujarat-based cooperative sector lenders on which Reserve bank of India imposed a financial penalty of Rs 1 lakh each for violation of various rules, including anti-money laundering guidelines?
1. Shree MahalaxmiMercantile Co-operative Bank
2. Rander People's Co-operative Bank
3. Abad District Co Op Bank
4. Ahd Mercantile Co-Op Bank Ltd
a. 1 & 2
b. 2 & 3
c. 1 & 4
d. 3 & 4
Ans: (a)
Wednesday, 23 November 2011
IBPS CWE GENERAL AWARENESS MODEL PAPER
1.Which of the following statements about new RBi policy on bank loans to non-banking finance companies (NBFCs) is / are correct ?
I) Bank loans to NBFCs will not come under 'priority sector' lending
II) NBFCs cannot charge a rate of interest higher than the RBI prescribed rate in lending funds borrowed from banks
III) The interest margin earned by NBFCs in lending funds borrowed from banks cannot exceed the ceiling prescribed by the RBI
1) I only
2) I and II only
3) II only
4) I and III only
5) None of these
2.Which of the following has proposed the setting up of a National Knowledge Functional Hub (NKFH) to facilitate interaction between the industry and institutions of higher education to produce better quality manpower recently ?
1) National Knowledge Commission
2) CII
3) ASSOCHAM
4) FICCI
5) None of these
3.The Reserve bank of India has increased the amount of money that can be loaded on mobile phones (mobile - wallet) to ..... from the existing limit of Rs. 5,000 recently
1) Rs. 10,000
2) Rs. 15,000
3) Rs. 25,000
4) Rs. 50,000
5) None of these
4.What are 'structural adjustment programmes'?
1) Programmes to increase the spread of financial services in developing countries
2) Programmes to improve road safety in developing countries
3) Requirements to qualify for World Bank and IMF loans
4) UN building regulations for disaster preparedness
5) None of these
5.Nuclear plants in India have an 'Exclusion Zone' of .... surrounding the power station, in which no habitation is permitted.
1) 1.6 km
2) 4.2 km
3) 8.4 km
4) 11.6 km
5) None of these
6.Improving regulation of which of the following was the subject of the Finance Ministry appointed KP Krishnan Committee ?
1) Microfinance institutions
2) Mutual funds
3) General insurance companies
4) Credit rating agencies
5) None of these
7. 'Asha' is a low - priced milk food drink introduced for rural consumers by which of the following ?
1) Nestle
2) Cadbury
3) Heinz
4) GlaxoSmithKline
5) None of these
8.ONGC Videsh Ltd (OVL) signed an agreeemtn to acquire 25% stake in the Satpayev oil block in Central Asia recentlyh. Which of the following statements is / are correct ?
I) Satpayev s in Turkmenistan
II) Satpayev is in Black Sea
III) Satpayev is believed to hold 1.75 billion barrels of oil reserves
1) I only
2) I and II only
3) II only
4) III only
5) None of these
9.Which of the following is the new income tax return form for salaried employees introduced by the Finance Ministry recently ?
1) Suvidha
2) Sugam
3) Sahaj
4) Saral
5) None of these
10.The Commerce Ministry has launched 'Buyer's Credit under the National Export Insurance Account (NEIA)' to :
1) Facilitate foreign direct investment in India
2) Facilitate project exports of Indian companies
3) Facilitate acquisitions by Indian companies overseas
4) Facilitate employment of Indian professionals abroad
5) None of these
11.Which of the following banks has launched 'Tiny Cards' with biometric identification to expand the coverage of banking services in rural parts of the country ?
1) ICICI Bank
2) NABARD
3) State Bank of India
4) Bank of India
5) None of these
12.Which of the following statements about IRDA guidelines for distance marketing of products issued recently is / are correct ?
I) Telemarketing of all Unit - Linked Insurance Products (ULIPs) has been disallowed
II) Only telemarketers trained by institutes accredited by IRDA can be employed
III) All telemarketing calls will have to be recorded
1) I only
2) I and II only
3) I and III only
4) II and III only
5) None of these
13.The Bureau of Energy Efficiency labelling is compulsory for all of the following except :
1) Laptops
2) Frost-free refrigerators
3) Tubular fluorescent lamps
4) Ceiling fans
5) None of these
14.What is the investment limit in plant and machinery for classification under Small Scale Industries ?
1) Rs. 10 lakh
2) Rs. 50 lakh
3) Rs. 1 crore
4) Rs. 10 crore
5) None of these
15.The government has recently decided to allow FIIs investment in infrastructure bonds upto ..... annually.
1) $5 billion
2) $ 10 billion
3) $ 15 billion
4) $ 25 billion
5) None of these
16.The term ASBA (Applications Supported by Blocked Amount) is used in which of the following financial services ?
1) General Insurance
2) Capital markets
3) Life Insuracne
4) Micro finance
5) None of these
17.The Government has decided to notify a provision exempting people of salary income up to ..... a year from filing returns
1) Rs. 2 lakh
2) Rs. 2.5 lakh
3) Rs. 4 lakh
4) Rs. 5 lakh
5) None of these
18.Which of the following is the largest mutual fund in India with assets under management (AUM) exceeding Rs. 100,000 crore on March 31, 2011 ?
1) UTI MF
2) HDFC MF
3) Reliance MF
4) birla Sun Life
5) None of these
19.Which of the following identifies and funds social welfare projects under its India Development Marketplace initiative ?
1) IMF
2) USAID
3) Intel
4) World Bank
5) None of these
20.Which of the following has been set up by the government to fund energy saving technologies recently ?
1) National Renewable Energy Fund
2) National Green Energy Fund
3) National Carbon Reduction Fund
4) National Clean Energy Fund
5) None of these
21.Which of the following is the new income tax return form for small businessmen and self-employed professionals introduced by the Finance Ministry recently ?
1) Suvidha
2) Sugam
3) Sahaj
4) Saral
5) None of these
22.A Committee was constituted to review the functioning fo the Central Economic Intelligence Bureau (CEIB) recently. What is the objective of CEIB ?
1) TO gie suggestions for promoting financial inclusion
2) TO compile data for calculating GDP growth and per capita income
3) To gather data on tax evasion and other financial crimes
4) To assist the RBI in formulating monetary policy
5) None of these
23.Mission Document of the National Water Mission (NWM) was approved byt he Union Cabinet recently. Which of the following statements is / are correct ?
I) NWM is one of the constituents of the National Action Plan for Climate Change
II) Improving share of hydroelectricity in country's total energy production is one of the objective of NWM
III) NWM will adjudicate in water sharing disputes involving inter-state rivers
1) I only
2) I and II only
3) I and II only
4) II and III only
5) None of these
24.Which country's 'Zero Kero' LPG programme is being considred for use in India to encourage customers to switch from kerosene to LPG recently ?
1) Thailand
2) Sri Lanka
3) Malaysia
4) Indonesia
5) None of these
25.Which of the folowing was launched by Union Ministry for Youth Affairs and SPorts in association with National Skill Development Corporation (NSDC) at Imphal, Manipur recently?
1) Sports Employability SKill Project
2) Youth Skill Development Project
3) Youth Employability Skill Project
4) Tribal Employability Skill Project
5) None of these
26. Government has decided to introduce biometric ...... to weed out duplicate and fake ones recently
1) Debit cards
2) Passports
3) Driving licenses
4) PAN cards
5) None of these
27.Which country is the single largest source for foreign direct investment to India, accounting for 40 percent of FDI flows in the last ten years, according to the Reserve bank of India ?
1) USA
2) UK
3) Singapore
4) Mauritius
5) None of these
28.The government plans to set up a Green National Accounting (GNA) system to evaluate impact of economic growth on environment. Who has been selected as the Chairperson of the expert group on GNA ?
1) Parthasarathi Shome
2) Madhav Gadgil
3) Partha Dasgupta
4) B. Ulhas Karanth
5) None of these
29.Global Assessment Report (GAR) of which of the following has complimented the Government of India for its National Rural Employment Guarantee Act (NREGA) recently ?
1) European Union
2) ILO
3) IMF
4) UN
5) None of these
30. The regulations pertaining to mergers and amalgamations (M & A) were issued by the Competition Commission of India (CCI) on May 12, 2011. Which of the following statements is / are correct ?
I) Overseas acquisitions of Indina companies with no impact on the domestic market will not come under the ambit of CCI
II) M & A deals that were initiated before June 1, 2011 will not come under the ambit of CCI
III) Scrutiny of all M & A deals will be completed by the CCI within 180 calendar days
1) I only
2) I and II only
3) II and III only
4) I, II and III
5) None of these
31.Which of then following statements about foreign investment in Limited Liability Partnership (LLP) companies is / are correct ?
I) FDI will be allowed in LLPs in sectors like mining, power, roads and highways, manufacturing activities, drugs and pharmaceuticals
II) FDI will not be allowed in LLPs engaged in agricultural and plantation activities, print media or real estate business
III) LLPs have been allowed to access external commercial borrowings
1) I only
2) I and II only
3) II and III only
4) III and I only
5) None of these
32.Which is the first state to introduce e-payment system for commercial tax payers recently ?
1) Maharashtra
2) Uttarakhand
3) Karnataka
4) Madhya Pradesh
5) None of these
33.Which of the following is not among the industries / sectors given priority in natural gas supply in the country ?
1) Fertiliser
2) LPG
3) Steel
4) Power
5) None of these
34.Where was the World Spice Organisation (WSO) set up recently ?
1) Kannur
2) Kochi
3) Kollam
4) Kottayam
5) None of these
35.Which of the following submitted a report titled 'Social Protection for a Changing India' - a comprehensive review of anti-poverty schemes such as PDS, MGNREGS, RSBY and IAY recently ?
1) World Economic Forum
2) CMIE
3) World Bank
4) IMF
5) None of these
36.Which of the following not one of the objectives of setting up the Warehousing Development and Regulatory Authority ?
1) To improve farm sector yiled
2) To enable farmers to avail of loans against foodgrains stored
3) To reduce post-harvest losses in foodgrain storage
4) To prevent post-harvest distress sales by farmers
5) None of these
37.The government approved the revival of Scooters India Limited (SIL) through induction of a joint venture partner recently. SIL sells scooters under which trademark ?
1) Mayur
2) Bharat
3) Vijay
4) Vikram
5) None of these
38.The Petroleum Conservation and Research Association (PCRA) has unveiled plans to set up India's first Carbon Credit Aggregation Centre (CCA) in which state ?
1) Himachal Pradesh
2) Uttarakhand
3) Rajasthan
4) Chhattisgarh
5) None of these
39.Which sectors were added to the list of six 'core sector infrastructure industries' recently?
I) Water supply
II) Natural gas
III) Fertilisers
1) I only
2) I and II only
3) II only
4) III and II only
5) None of these
40.Bina Refinery is a joint venture of Bharat Petroleum and ........ Oil Company to set up a 6 MMTPA grass root refinery at Bina in Madhya Pradesh.
1) Shell
2) Qatar
3) Emirates
4) Oman
5) None of these
41.A high level committee of Bankers submitted its report on Rural Housing recently. Which of the following statements regarding its recommendations for Below the Poverty Line (BPL) Households is / are correct ?
I) Allocation of grants for construction of rural housing units for BPL Households should be increased to Rs. 75,000 per dwelling unit
II) Repayment period should be reduced to ten years
III) BPL households should be provided a loand of Rs. 50,000 at 4% rate of interest
1) II only
2) I and II only
3) II only
4) III and I only
5) None of these
42.'Aichi Targets' refers to which of the following?
1) Trade
2) Education
3) Nuclear safety
4) Environment
5) None of these
43.Scheduled commercial banks do not require permission from the Reserve bank of India for opening new branches in towns with population less than .........
1) 49,999
2) 99,999
3) 2,49,999
4) 4,99,999
5) None of these
44.The National Rural Livelihoods Mission (NRLM) was launched recently. Which of the following statements is / are correct ?
I) NRLM seeks to bring the rural poor under the Self Help Group (SHG) network
II) Services of Business Correspondents (BCs) will be utilised to spread the concept of NRLM
III) NLRM will facilitate access of bank credit to those covered under the Mission
1) I only
2) I and II only
3) II and III only
4) I and III only
5) None of these
45.A committee headed by RBI deputy governor Shyamala Gopinath has recommended a 'holding company' structure for both banking and nonbanking financial groups recently. Which of the following statements is / are correct ?
I) Both the holding company as well as the subsidiaries can be listed on stock exchange
II) The subsidiaries will own equity stake in the holding company
1) II only
2) I and II only
3) I only
4) All of these
5) None of these
46.Which Indian corporate group has decided to enter the financial services business in a tie up with D.E. Shaw of the US ?
1) AV Birla Group
2) Wipro Ltd
3) Mahindra & Mahindra
4) RIL
5) None of these
47.The Reserve Bank of India (RBI) recently relaxed the eligibility norms for using credit default swaps (CDS) on corporate bonds. What are CDS ?
1) A form of loan that can be taken by pledging shares of a company
2) A form of credit rating that compares companies on their cash flow
3) A form of insurance that protects the lender in case of loand default
4) A form of loan that can be converted into equaity
5) None of these
48.Which of the following statements is /a re correct about Indian Depository Receipts (IDRs) ?
1) They are issued by Indian companies to raise funds from overseas stock markets
2) They are issued by foreign companies to raise funds from Indian stock markets
3) They are denominated in foreign currency
4) None of the above
5) None of these
49.Which is the first state in the country to sign an agreement with the World Bank for securing carbon credits for its 'Clean Development Mechanism' (CDM) recently ?
1) Sikkim
2) Uttarakhand
3) Jammu Kashmir
4) Himachal Pradesh
5) None of these
50. From which state was the National Rural Livelihood Mission launched recently ?
1) Kerala
2) Maharashtra
3) Haryana
4) Rajasthan
5) None of these
ANSWERS:
1) 1 2) 4 3) 4 4) 3 5) 1 6) 4 7) 4 8) 4 9) 3 10) 2
11) 3 12) 4 13) 1 14) 3 15) 4 16) 2 17) 4 18) 3 19) 4 20) 4
21) 2 22) 3 23) 1 24) 4 25) 3 26) 4 27) 4 28) 3 29) 4 30) 4
31) 2 32) 3 33) 3 34) 2 35) 3 36) 1 37) 4 38) 3 39) 4 40) 4
41) 2 42) 4 43) 1 44) 4 45) 2 46) 4 47) 3 48) 2 49) 4 50) 4
I) Bank loans to NBFCs will not come under 'priority sector' lending
II) NBFCs cannot charge a rate of interest higher than the RBI prescribed rate in lending funds borrowed from banks
III) The interest margin earned by NBFCs in lending funds borrowed from banks cannot exceed the ceiling prescribed by the RBI
1) I only
2) I and II only
3) II only
4) I and III only
5) None of these
2.Which of the following has proposed the setting up of a National Knowledge Functional Hub (NKFH) to facilitate interaction between the industry and institutions of higher education to produce better quality manpower recently ?
1) National Knowledge Commission
2) CII
3) ASSOCHAM
4) FICCI
5) None of these
3.The Reserve bank of India has increased the amount of money that can be loaded on mobile phones (mobile - wallet) to ..... from the existing limit of Rs. 5,000 recently
1) Rs. 10,000
2) Rs. 15,000
3) Rs. 25,000
4) Rs. 50,000
5) None of these
4.What are 'structural adjustment programmes'?
1) Programmes to increase the spread of financial services in developing countries
2) Programmes to improve road safety in developing countries
3) Requirements to qualify for World Bank and IMF loans
4) UN building regulations for disaster preparedness
5) None of these
5.Nuclear plants in India have an 'Exclusion Zone' of .... surrounding the power station, in which no habitation is permitted.
1) 1.6 km
2) 4.2 km
3) 8.4 km
4) 11.6 km
5) None of these
6.Improving regulation of which of the following was the subject of the Finance Ministry appointed KP Krishnan Committee ?
1) Microfinance institutions
2) Mutual funds
3) General insurance companies
4) Credit rating agencies
5) None of these
7. 'Asha' is a low - priced milk food drink introduced for rural consumers by which of the following ?
1) Nestle
2) Cadbury
3) Heinz
4) GlaxoSmithKline
5) None of these
8.ONGC Videsh Ltd (OVL) signed an agreeemtn to acquire 25% stake in the Satpayev oil block in Central Asia recentlyh. Which of the following statements is / are correct ?
I) Satpayev s in Turkmenistan
II) Satpayev is in Black Sea
III) Satpayev is believed to hold 1.75 billion barrels of oil reserves
1) I only
2) I and II only
3) II only
4) III only
5) None of these
9.Which of the following is the new income tax return form for salaried employees introduced by the Finance Ministry recently ?
1) Suvidha
2) Sugam
3) Sahaj
4) Saral
5) None of these
10.The Commerce Ministry has launched 'Buyer's Credit under the National Export Insurance Account (NEIA)' to :
1) Facilitate foreign direct investment in India
2) Facilitate project exports of Indian companies
3) Facilitate acquisitions by Indian companies overseas
4) Facilitate employment of Indian professionals abroad
5) None of these
11.Which of the following banks has launched 'Tiny Cards' with biometric identification to expand the coverage of banking services in rural parts of the country ?
1) ICICI Bank
2) NABARD
3) State Bank of India
4) Bank of India
5) None of these
12.Which of the following statements about IRDA guidelines for distance marketing of products issued recently is / are correct ?
I) Telemarketing of all Unit - Linked Insurance Products (ULIPs) has been disallowed
II) Only telemarketers trained by institutes accredited by IRDA can be employed
III) All telemarketing calls will have to be recorded
1) I only
2) I and II only
3) I and III only
4) II and III only
5) None of these
13.The Bureau of Energy Efficiency labelling is compulsory for all of the following except :
1) Laptops
2) Frost-free refrigerators
3) Tubular fluorescent lamps
4) Ceiling fans
5) None of these
14.What is the investment limit in plant and machinery for classification under Small Scale Industries ?
1) Rs. 10 lakh
2) Rs. 50 lakh
3) Rs. 1 crore
4) Rs. 10 crore
5) None of these
15.The government has recently decided to allow FIIs investment in infrastructure bonds upto ..... annually.
1) $5 billion
2) $ 10 billion
3) $ 15 billion
4) $ 25 billion
5) None of these
16.The term ASBA (Applications Supported by Blocked Amount) is used in which of the following financial services ?
1) General Insurance
2) Capital markets
3) Life Insuracne
4) Micro finance
5) None of these
17.The Government has decided to notify a provision exempting people of salary income up to ..... a year from filing returns
1) Rs. 2 lakh
2) Rs. 2.5 lakh
3) Rs. 4 lakh
4) Rs. 5 lakh
5) None of these
18.Which of the following is the largest mutual fund in India with assets under management (AUM) exceeding Rs. 100,000 crore on March 31, 2011 ?
1) UTI MF
2) HDFC MF
3) Reliance MF
4) birla Sun Life
5) None of these
19.Which of the following identifies and funds social welfare projects under its India Development Marketplace initiative ?
1) IMF
2) USAID
3) Intel
4) World Bank
5) None of these
20.Which of the following has been set up by the government to fund energy saving technologies recently ?
1) National Renewable Energy Fund
2) National Green Energy Fund
3) National Carbon Reduction Fund
4) National Clean Energy Fund
5) None of these
21.Which of the following is the new income tax return form for small businessmen and self-employed professionals introduced by the Finance Ministry recently ?
1) Suvidha
2) Sugam
3) Sahaj
4) Saral
5) None of these
22.A Committee was constituted to review the functioning fo the Central Economic Intelligence Bureau (CEIB) recently. What is the objective of CEIB ?
1) TO gie suggestions for promoting financial inclusion
2) TO compile data for calculating GDP growth and per capita income
3) To gather data on tax evasion and other financial crimes
4) To assist the RBI in formulating monetary policy
5) None of these
23.Mission Document of the National Water Mission (NWM) was approved byt he Union Cabinet recently. Which of the following statements is / are correct ?
I) NWM is one of the constituents of the National Action Plan for Climate Change
II) Improving share of hydroelectricity in country's total energy production is one of the objective of NWM
III) NWM will adjudicate in water sharing disputes involving inter-state rivers
1) I only
2) I and II only
3) I and II only
4) II and III only
5) None of these
24.Which country's 'Zero Kero' LPG programme is being considred for use in India to encourage customers to switch from kerosene to LPG recently ?
1) Thailand
2) Sri Lanka
3) Malaysia
4) Indonesia
5) None of these
25.Which of the folowing was launched by Union Ministry for Youth Affairs and SPorts in association with National Skill Development Corporation (NSDC) at Imphal, Manipur recently?
1) Sports Employability SKill Project
2) Youth Skill Development Project
3) Youth Employability Skill Project
4) Tribal Employability Skill Project
5) None of these
26. Government has decided to introduce biometric ...... to weed out duplicate and fake ones recently
1) Debit cards
2) Passports
3) Driving licenses
4) PAN cards
5) None of these
27.Which country is the single largest source for foreign direct investment to India, accounting for 40 percent of FDI flows in the last ten years, according to the Reserve bank of India ?
1) USA
2) UK
3) Singapore
4) Mauritius
5) None of these
28.The government plans to set up a Green National Accounting (GNA) system to evaluate impact of economic growth on environment. Who has been selected as the Chairperson of the expert group on GNA ?
1) Parthasarathi Shome
2) Madhav Gadgil
3) Partha Dasgupta
4) B. Ulhas Karanth
5) None of these
29.Global Assessment Report (GAR) of which of the following has complimented the Government of India for its National Rural Employment Guarantee Act (NREGA) recently ?
1) European Union
2) ILO
3) IMF
4) UN
5) None of these
30. The regulations pertaining to mergers and amalgamations (M & A) were issued by the Competition Commission of India (CCI) on May 12, 2011. Which of the following statements is / are correct ?
I) Overseas acquisitions of Indina companies with no impact on the domestic market will not come under the ambit of CCI
II) M & A deals that were initiated before June 1, 2011 will not come under the ambit of CCI
III) Scrutiny of all M & A deals will be completed by the CCI within 180 calendar days
1) I only
2) I and II only
3) II and III only
4) I, II and III
5) None of these
31.Which of then following statements about foreign investment in Limited Liability Partnership (LLP) companies is / are correct ?
I) FDI will be allowed in LLPs in sectors like mining, power, roads and highways, manufacturing activities, drugs and pharmaceuticals
II) FDI will not be allowed in LLPs engaged in agricultural and plantation activities, print media or real estate business
III) LLPs have been allowed to access external commercial borrowings
1) I only
2) I and II only
3) II and III only
4) III and I only
5) None of these
32.Which is the first state to introduce e-payment system for commercial tax payers recently ?
1) Maharashtra
2) Uttarakhand
3) Karnataka
4) Madhya Pradesh
5) None of these
33.Which of the following is not among the industries / sectors given priority in natural gas supply in the country ?
1) Fertiliser
2) LPG
3) Steel
4) Power
5) None of these
34.Where was the World Spice Organisation (WSO) set up recently ?
1) Kannur
2) Kochi
3) Kollam
4) Kottayam
5) None of these
35.Which of the following submitted a report titled 'Social Protection for a Changing India' - a comprehensive review of anti-poverty schemes such as PDS, MGNREGS, RSBY and IAY recently ?
1) World Economic Forum
2) CMIE
3) World Bank
4) IMF
5) None of these
36.Which of the following not one of the objectives of setting up the Warehousing Development and Regulatory Authority ?
1) To improve farm sector yiled
2) To enable farmers to avail of loans against foodgrains stored
3) To reduce post-harvest losses in foodgrain storage
4) To prevent post-harvest distress sales by farmers
5) None of these
37.The government approved the revival of Scooters India Limited (SIL) through induction of a joint venture partner recently. SIL sells scooters under which trademark ?
1) Mayur
2) Bharat
3) Vijay
4) Vikram
5) None of these
38.The Petroleum Conservation and Research Association (PCRA) has unveiled plans to set up India's first Carbon Credit Aggregation Centre (CCA) in which state ?
1) Himachal Pradesh
2) Uttarakhand
3) Rajasthan
4) Chhattisgarh
5) None of these
39.Which sectors were added to the list of six 'core sector infrastructure industries' recently?
I) Water supply
II) Natural gas
III) Fertilisers
1) I only
2) I and II only
3) II only
4) III and II only
5) None of these
40.Bina Refinery is a joint venture of Bharat Petroleum and ........ Oil Company to set up a 6 MMTPA grass root refinery at Bina in Madhya Pradesh.
1) Shell
2) Qatar
3) Emirates
4) Oman
5) None of these
41.A high level committee of Bankers submitted its report on Rural Housing recently. Which of the following statements regarding its recommendations for Below the Poverty Line (BPL) Households is / are correct ?
I) Allocation of grants for construction of rural housing units for BPL Households should be increased to Rs. 75,000 per dwelling unit
II) Repayment period should be reduced to ten years
III) BPL households should be provided a loand of Rs. 50,000 at 4% rate of interest
1) II only
2) I and II only
3) II only
4) III and I only
5) None of these
42.'Aichi Targets' refers to which of the following?
1) Trade
2) Education
3) Nuclear safety
4) Environment
5) None of these
43.Scheduled commercial banks do not require permission from the Reserve bank of India for opening new branches in towns with population less than .........
1) 49,999
2) 99,999
3) 2,49,999
4) 4,99,999
5) None of these
44.The National Rural Livelihoods Mission (NRLM) was launched recently. Which of the following statements is / are correct ?
I) NRLM seeks to bring the rural poor under the Self Help Group (SHG) network
II) Services of Business Correspondents (BCs) will be utilised to spread the concept of NRLM
III) NLRM will facilitate access of bank credit to those covered under the Mission
1) I only
2) I and II only
3) II and III only
4) I and III only
5) None of these
45.A committee headed by RBI deputy governor Shyamala Gopinath has recommended a 'holding company' structure for both banking and nonbanking financial groups recently. Which of the following statements is / are correct ?
I) Both the holding company as well as the subsidiaries can be listed on stock exchange
II) The subsidiaries will own equity stake in the holding company
1) II only
2) I and II only
3) I only
4) All of these
5) None of these
46.Which Indian corporate group has decided to enter the financial services business in a tie up with D.E. Shaw of the US ?
1) AV Birla Group
2) Wipro Ltd
3) Mahindra & Mahindra
4) RIL
5) None of these
47.The Reserve Bank of India (RBI) recently relaxed the eligibility norms for using credit default swaps (CDS) on corporate bonds. What are CDS ?
1) A form of loan that can be taken by pledging shares of a company
2) A form of credit rating that compares companies on their cash flow
3) A form of insurance that protects the lender in case of loand default
4) A form of loan that can be converted into equaity
5) None of these
48.Which of the following statements is /a re correct about Indian Depository Receipts (IDRs) ?
1) They are issued by Indian companies to raise funds from overseas stock markets
2) They are issued by foreign companies to raise funds from Indian stock markets
3) They are denominated in foreign currency
4) None of the above
5) None of these
49.Which is the first state in the country to sign an agreement with the World Bank for securing carbon credits for its 'Clean Development Mechanism' (CDM) recently ?
1) Sikkim
2) Uttarakhand
3) Jammu Kashmir
4) Himachal Pradesh
5) None of these
50. From which state was the National Rural Livelihood Mission launched recently ?
1) Kerala
2) Maharashtra
3) Haryana
4) Rajasthan
5) None of these
ANSWERS:
1) 1 2) 4 3) 4 4) 3 5) 1 6) 4 7) 4 8) 4 9) 3 10) 2
11) 3 12) 4 13) 1 14) 3 15) 4 16) 2 17) 4 18) 3 19) 4 20) 4
21) 2 22) 3 23) 1 24) 4 25) 3 26) 4 27) 4 28) 3 29) 4 30) 4
31) 2 32) 3 33) 3 34) 2 35) 3 36) 1 37) 4 38) 3 39) 4 40) 4
41) 2 42) 4 43) 1 44) 4 45) 2 46) 4 47) 3 48) 2 49) 4 50) 4
NABARD signed MoU with All Cooperative Banks in Punjab to Launch Core Banking Solution
National Bank for Agriculture and Rural Development today on 8 April 2011 signed MoU with all cooperative banks in Punjab to launch core banking solution (CBS). Under the pan India project NABARD sought the willingness of State Cooperative Bank (SCB) at the state level as well as District Central Cooperative Banks (DCCBs) at the district level under the Short Term Cooperative Credit Structure (STCCS) to join the project by executing a Memorandum of Understanding (MoU) with NABARD.
The project is aimed at providing application software, maintenance of data centre, disaster recovery centre, related network connection and regular maintenance and support of hardware and software. The agreement reached under the project is likely to go a long way to bring the functioning of Cooperative Banks at par with Commercial Banks and Regional Rural Banks in Punjab.
The project is aimed at providing application software, maintenance of data centre, disaster recovery centre, related network connection and regular maintenance and support of hardware and software. The agreement reached under the project is likely to go a long way to bring the functioning of Cooperative Banks at par with Commercial Banks and Regional Rural Banks in Punjab.
Indian Bank launched e-banking Lounge & Inter-bank Mobile Payment Services
Indian Bank launched its 24 hour operating e-banking lounge on 11 April 2011 in Chennai. The e-banking lounge was inaugurated by C Rangarajan, Chairman, Prime Minister's Economic Advisory Council. The new service will provide the customers of Indian Bank with the facility of cash deposit, cash withdrawal, cheque deposit with acknowledgement, internet banking, touch screen banking for all account related transactions.
Dr. Rangarajan also launched two new tech products namely maestro enabled debit card for senior citizens and inter-bank mobile payment services. The senior citizen debit card will contain details like year of birth, blood group and photo of the senior citizen.
Indian Bank has always been keen on introducing innovative, easy to use new tech products for the benefit of all types of customers and the general public. The bank also plans to introduce e-banking lounges in various metros.
Dr. Rangarajan also launched two new tech products namely maestro enabled debit card for senior citizens and inter-bank mobile payment services. The senior citizen debit card will contain details like year of birth, blood group and photo of the senior citizen.
Indian Bank has always been keen on introducing innovative, easy to use new tech products for the benefit of all types of customers and the general public. The bank also plans to introduce e-banking lounges in various metros.
K. S. Sreenivasan appointed non-official director on board of Oriental Bank of Commerce
The Ministry of Finance (Department of Financial Services) on 27 september 2011 appointed K. S. Sreenivasan as part-time, non-official director on the board of Oriental Bank of Commerce. Sreenivasan has been appointed for a period of three years. He had earlier served on the board of Union Bank of India between 2006 and 2009 and also on the board of Madras School of Economics. Sreenivasan, a practising chartered accountant with nearly 26 years of experience, is also a life member of the Indian Council of Arbitration.
Fresh Capital to be infused in SBI to help it achieve Compliance with Capital Adequacy Ratio Norms
Union Finance Minister Pranab Mukherjee on 16 October 2011 voiced the Finance Ministry’s decision to to recapitalise State Bank of India (SBI). Funds would be provided to the PSU lender to enable it to achieve compliance with capital adequacy ratio (CAR) norms. Fresh capital is to be infused in SBI. The government will inject Rs 3,000-4000 crore into SBI during the current fiscal 2011-12 to help it achieve an 8 per cent capital adequacy ratio (CAR).
Recapitalisation of banks is a continuing process and the government will continue to provide funds to PSU lenders through the Budget to ensure that they can meet solvency requirements.
According to estimates, SBI needs about Rs 20000 crore of fresh capital to maintain the pace of growth without sacrificing solvency margin norms.
Moody's had recently downgraded the credit rating of SBI, citing inadequate capital and poor asset quality as reasons. Following the downgrade, major private sector lenders like ICICI Bank, HDFC Bank and Axis Bank currently have a better standing than SBI in terms of their credit rating. The government holds a 59 per cent stake in the country's largest bank, SBI.
Recapitalisation of banks is a continuing process and the government will continue to provide funds to PSU lenders through the Budget to ensure that they can meet solvency requirements.
According to estimates, SBI needs about Rs 20000 crore of fresh capital to maintain the pace of growth without sacrificing solvency margin norms.
Moody's had recently downgraded the credit rating of SBI, citing inadequate capital and poor asset quality as reasons. Following the downgrade, major private sector lenders like ICICI Bank, HDFC Bank and Axis Bank currently have a better standing than SBI in terms of their credit rating. The government holds a 59 per cent stake in the country's largest bank, SBI.
Ratings Firm Moody's downgraded Indian Banking System's Rating outlook from Stable to Negative
Global ratings firm Moody's on 9 November 2011 downgraded the entire Indian banking system's rating outlook from stable to negative indicating a deterioration in asset quality in the months ahead. In September 2011, Standard & Poor's (S&P) downgraded the country's largest lender, the State Bank of India, by one notch.
Arguing its case for the outlook downgrade the Moody's mentioned that with asset quality was anticipated to deteriorate over the next 12-18 months, thereby causing an increase in provisioning needs for the banks in financial year 2012 and 2013.
The Moody's decision was announced at a time when the Eurozone financial system is in turmoil and a large number of European banks are in dire straits.
The government rejected it claiming that the country's lending institutions are much healthier than their global counterparts. Indian bankers termed the move unwarranted and premature at this point of time.
The market apprehended that the downgrade by the Moody's would render overseas borrowings costlier for Indian banks. The negative sentiment sparked a major sell-off in banking stocks, resulting in the banking index on the Bombay Stock Exchange tumbling by 2.62 per cent on 9 November.
Arguing its case for the outlook downgrade the Moody's mentioned that with asset quality was anticipated to deteriorate over the next 12-18 months, thereby causing an increase in provisioning needs for the banks in financial year 2012 and 2013.
The Moody's decision was announced at a time when the Eurozone financial system is in turmoil and a large number of European banks are in dire straits.
The government rejected it claiming that the country's lending institutions are much healthier than their global counterparts. Indian bankers termed the move unwarranted and premature at this point of time.
The market apprehended that the downgrade by the Moody's would render overseas borrowings costlier for Indian banks. The negative sentiment sparked a major sell-off in banking stocks, resulting in the banking index on the Bombay Stock Exchange tumbling by 2.62 per cent on 9 November.
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