Friday, November 18, 2011

FACTS TO BE KNOWN FOR IBPS EXAM


1.  NOMINATION FACILITY
          1. Is Nomination facility available for Demat Accounts?
The nomination facility is available for demat accounts. The account holder(s) has to provide nomination details or given a declaration that nomination the account holder(s) does not wish to provide nomination for the demat account. However it is advisable for all individual BO’s to avail of this facility.

          2. Which BO can appoint a Nominee?
Individuals, having/opening demat accounts, either, singly or jointly with one or two joint holders can appoint nominee. If the account is held jointly, all the joint holders are required to sign the nomination form.

          3. Who can be appointed as a nominee?
Only an individual can be appointed as a nominee. Non-individuals entities such as trust, corporate, HUF, AOPS etc can not be appointed as a nominee.

          4. How many nominees can be appointed as nominee for a demat account?
Only one individual can be appointed as a nominee for a demat account.

          5. Can the nomination given once be changed / deleted?
Yes. Nomination once given can be changed / deleted as and when required. However if the nomination is to be deleted then the account holder(s) should give a declaration that the account holder(s) does not wish to provide nomination for the demat account

     6. What is the procedure to appoint a nominee?
The Account holder(s) is (are) required to fill a standard nomination form available with the DP. The nomination form has to be signed by two witnesses. If the account is a joint account, the nomination form should be signed by all account holders.

     7. Can a minor be appointed as a nominee?
Yes. A minor represented by a guardian can be appointed as a nominee.

          8.  Can nomination be given for a Joint account?
Yes nomination can be given for a joint demat account also. But only one nominee can be appointed for all the account holders of the demat account. Each of the joint holders can not appoint separate nominee.

          9. Who cannot nominate? Non-individuals such as societies, trusts, body corporate, Kartas of Hindu Undivided Family etc. and holders of power of attorney cannot make a nomination.


     10. Can an NRI be appointed as nominee?
Both resident Indians as well as NRIs can nominate an NRI. Similarly, an NRI can nominate a resident Indian or another NRI. This would also depend on FEMA regulations.


     11. Is nomination compulsory for a demat account?
SEBI has mandated that nomination should be recorded for a demat account held by individuals. If nomination is not to be given then the account holder(s) should give a written and signed declaration to the effect.


2.  What Does Net Interest Margin Mean?
A performance metric that examines how successful a firm's investment decisions are compared to its debt situations. A negative value denotes that the firm did not make an optimal decision, because interest expenses were greater than the amount of returns generated by investments.

3.  Interest spread

Interest spread is the difference between the average lending rate and the average borrowing rate for a bank or other financial institution. It is:
(interest income ÷interest earning assets) - (interest expense ÷interest bearing liabilities)



6.  NABARD
 

Introduction


NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. It also has the mandate to support all other allied economic activities in rural areas, promote integrated and sustainable rural development and secure prosperity of rural areas. In discharging its role as a facilitator for rural prosperity NABARD is entrusted with

1.
Providing refinance to lending institutions in rural areas


2.
Bringing about or promoting institutional development and


3.
Evaluating, monitoring and inspecting the client banks



Besides this pivotal role, NABARD also:


Acts as a coordinator in the operations of rural credit institutions


Extends assistance to the government, the Reserve Bank of India and other organizations in matters relating to rural development


Offers training and research facilities for banks, cooperatives and organizations working in the field of rural development


Helps the state governments in reaching their targets of providing assistance to eligible institutions in agriculture and rural development


Acts as regulator for cooperative banks and RRBs


Extends assistance to the government, the Reserve Bank of India and other organizations in matters relating to rural development


Offers training and research facilities for banks, cooperatives and organizations working in the field of rural development


Helps the state governments in reaching their targets of providing assistance to eligible institutions in agriculture and rural development


Acts as regulator for cooperative banks and RRBs


Some of the milestones in NABARD's activities are:


Total production credit disbursed at end March 2011 was  34196 crore.


Refinance disbursement under Investment Credit to commercial banks, state cooperative banks, state cooperative agriculture and rural development banks, RRBs and other eligible financial institutions during 2010-11 aggregated  13485.87 crore.


Through the Rural Infrastructure Development Fund (RIDF)  12060.04 crores were disbursed during 2010-11. A cumulative amount of  121488.40 crore has been sanctioned for 444162 projects as on 31 March 2011 covering irrigation, rural roads and bridges, health and education, soil conservation, drinking water schemes, flood protection, forest management etc.


Under Watershed Development Fund which has a balance of  1847.69 crore as on 31 March 2011, 579 projects in districts of 14 states have benefited.


Farmers now enjoy hassle free access to credit and security through 1009.30 lakh Kisan Credit Cards that have been issued through a vast rural banking network. During 2010-11, 72.6 lakh KCC were issued by banks with a sanctioned limit of  43370 crore.


Under the Farmers' Club Programme, during the year 21903 clubs were launched, taking the total to 76708 clubs as on 31 March 2011 helping farmers get access to credit, technology and extension services.


Village Development Programme (VDP) is being implemented in 801 villages across 25 states.


Under Tribal Development Fund, cumulative sanction amounted to  917.60 crore for 317 projects covering 2.5 lakh families. During 2010-11 financial assistance of  373.97 crore was sanctioned for 126 projects benefiting 94,163 tribal families.


Under Farm Innovation and Promotion Fund (FIPF), cumulatively 123 projects in various states, involving financial support of  11.65 crore were sanctioned as on 31 March 2011.


Farmers Technology Transfer Fund (FTTF) – 512 innovative projects in 27 states with grant assistance of  44.97 crore were sanctioned during 2010-11.


There were more than 69.53 lakh savings linked SHGs and more than 48.51 lakh credit linked SHGs covering 9.7 crore poor households as on 31 March 2011, under the microfinance programme.

7.  NAV OF MUTUAL FUNDS

Net Asset Value or NAV in simple terms is the per share value of a mutual fund. Shares of a mutual fund are bought/sold based on NAV. It is obtained by calculating value of all assets under the fund, then subtracting any liabilities, then dividing the resultant obtained by number of outstanding shares of the mutual fund.
Why NAV is not an exact indicator of Mutual fund performance ?
NAV depends on total asset value of that fund. Mutual funds usually distribute their generated incomes and realized capital gains to it’s shareholders periodically. This will fluctuate its NAV and that’s one primary reason for not weighing fund performance based on NAV.
8.  Standard Chartered :  is a multinational financial services company headquartered in London, United Kingdom with operations in more than seventy countries. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) and employs around 80,000 people.
It is a universal bank and has operations in consumer, corporate and institutional banking and treasury services. Despite its British base around 90% of its profits come from Africa, Asia and the Middle East.

9.  ICBC:  The Industrial & Commercial Bank of China (ICBC) is the largest bank in China, of course of Asia,  by total assets, total employees and total customers. ICBC differentiates itself from the other State Owned Commercial Banks by being second in foreign exchange business and 1st in RMB clearing business. It used to be the major supplier of funds to China's urban areas and manufacturing sector.

10.  Unit Trust of India : The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched Unit Trust of India (UTI).

11.  Kothari Pioneer: The first private sector fund to operate in India was Kothari Pioneer, which later merged with Franklin Templeton.

12.  AMFI : The  Association  of  Mutual  Funds  in  India (AMFI)  is  dedicated  to  developing  the  Indian  Mutual  Fund  Industry  on  professional,  healthy  and  ethical  lines  and  to  enhance  and  maintain  standards  in  all  areas  with  a  view  to  protecting  and  promoting  the  interests  of  mutual  funds  and  their  unit  holders. 

13.  DBS BANK LTD : The Development Bank of Singapore Limited, before the present name was adopted in July 2003 to reflect its changing role as a regional bank.

14.  IMF: The International Monetary Fund (IMF) is an intergovernmental organization that promotes international economic cooperation, focusing in particular on policies that have an impact on the exchange rate and the balance of payments. The organization's stated objectives are to promote international economic cooperation, international trade, employment, and exchange rate stability, including by making resources available to member countries to meet balance of payments needs. Its headquarters are in Washington, D.C.

15.  WORLD BANK: The World Bank, established in 1944, is headquartered in Washington, D.C. The World Bank is a vital source of financial and technical assistance to developing countries around the world. It's mission is to fight poverty with passion and professionalism for lasting results and to help people help themselves and their environment by providing resources, sharing knowledge, building capacity and forging partnerships in the public and private sectors.
WB is not a bank in the common sense;  it is made up of two unique development institutions owned by 187 member countries: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

16.  CRISIL: CRISIL : This was set-up by ICICI and UTI in 1988, and rates debt instruments. Nearly half of its ratings on the instruments are being used. CRISIL's market share is around 75%. It has launched innovative products for credit risks assessment viz., counter party ratings and bank loan ratings. CRISIL rates debentures, fixed deposits,commercial papers, preference shares and structured obligations. Of the total value of instruments rated, debentures' accounted for 3 1.196, fmed deposits for 42.3% and commercial paper 6.6%. CRISIL publishes CRISIL
rating in SCAN that is a quarterly publication in Hindi and Gujarati, besides English.

17.  OTHER CREDIT RATING AGENCIES: In India, commercial credit rating agencies include CRISIL, CARE, ICRA and Brickwork Ratings.[ The credit bureaus for individuals in India are Credit Information Bureau (India) Limited (CIBIL) and Credit Registration Office (CRO).

18.  BIGGEST CREDIT RATING AGENCIES WORLD OVER: The largest credit rating agencies (which tend to operate worldwide) are Dun & Bradstreet, Moody's, Standard & Poor's and Fitch Ratings.

19.  CIBIL: Credit Information Bureau (India) Ltd, founded in 2000 by four corporations — State Bank of India, Housing Development Finance Corporation Limited, Dun & Bradstreet Information Services, and TransUnion International Incorporated, a US-based credit reporting agency — has been identifying defaulters on its websites for the use of banks who become members.

CIBIL (Credit Investigation Bureau of India Limited), which is currently the India’s first and the only fully operational credit information bureau, is a huge repository of information, which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its Members in the form of credit information reports.

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