Featured
Recent Posts

Monday, 24 April 2017

Tips to Crack English Section in SBI PO 2017


The syllabus for English Section:

1)   Reading Comprehension
2)   Cloze Test
3)   Fill in the Blanks
4)   Jumbled Sentence
5)   Error Spotting

Pre exam preparation for Comprehension:

·        Read English Newspaper daily, especially Editorial, National, Business and Banking columns.
·        You can figure out banking, financial terminologies and the scenario of banking operations.
·        Make notes of important words.
·        Read passage as fast as possible it will enhance you fast reading flawlessly.

Cloze Test:

·        Read the whole passage completely then you know the theme of the passage.
·        See the options in which all the words meaning are known to you then check does it suits in blank.
·        You have to consider the word which should concord subject verb agreement.
            ·        More Practising will help you to choose the words quickly.
 

Concept:

Cloze test is an extensive variation of the sentence completion test. Candidates are required to make a choice from multiple alternatives for each word blanked out, not in a sentence but in a passage. Thus this test evaluates the candidate’s vocabulary power and his ability to judge the overall meaning of a passage even when some words are missing.

Practical Tip:

A passage consists of sentences which are logically related to one another. Therefore, first of all, read the whole passage, get a rough idea of its contents and keep them in your mind as a background. Concentrate on this background to find clues. Use the following tips as well.
1.     If you know the answer, immediately tick it. NO technique is to be adopted. The whole process will work in a flash.
2.    When you are not sure of the answer, make the right choice through the process of elimination.
Elimination Technique à Alternatives à Step-1 (Structure) à Step-2 (Meaning) à Step-3 à Common Usage and Nuances à Step-4 (Clues) à Step-5 (Reasoning) à Target or Correct Choice
Step 1: Judge if any of them does not fit into the structure (eliminate).
Step 2: Judge if any of them does not fit in with the meaning (eliminate).
Step 3: Among/ between the remaining apply your awareness of the common usage or nuances of words.
Step 4: Try to find out a clue in the sentence or in a sentence preceding or succeeding it. Sometimes
The clue is hidden many sentences away.
Step 5: If the final choice has not been reached even now, apply the method of reasoning to hit the target.

Fill in the blanks:

·        Consider the words list in the options and select the suitable one which makes the sentence meaningful.
·        Even if you find out one word then you can easily sort out another one. Depends on the theme of the sentence you should took the word even though, the options might have same meaning. This only relies on the practice.

Tips to Answer “Fill in the Blank” Questions in English Section:

Step 1: Initially, read the sentence carefully and try to fill the missing word without looking the given options.
Step 2: Then, check the options given below and find the best word which replaces the word that you had thought initially.
Step 3: Insert the word that you have chosen from the option and read the sentence again. Check that the word you have inserted in the blank, enables you to read the sentence correctly and smoothly and also check whether it gives you proper meaning.
Step 4: After filling all the blanks, once again read the sentence and make sure that there are no grammatical error in the sentence.

Important Points to Remember:

·        Fill in the Blanks is one of the most important questions in the English Section, from which you can score more marks easily. To answer these questions, you must have very good English Vocabulary.

Important thing is to understand the meaning of the sentence properly; if you have understood the question properly you can also get some clues from the questions, which will help you to choose the answer correctly. So read the sentence very carefully
                  Don’t forget to note the Grammar Clues, in the given sentence there will be      some hidden grammar clues by using those clues you can easily identify the          answer. For example, if the article “an” comes before the blank means, the answer must begin with a vowel.
·        While reading the sentence you need to think logically and recognize the correct word which will give proper meaning for that sentence.
·        When you read the sentence and option in the question, try to find the nature of the missing word, whether the missing word implies positive or negative meaning, and this will help you to identify the correct word in the option.
·        Each question consists of two blanks, compare the both words given in the option and eliminate the option which not suits for the both blanks.
·        Some questions may ask from the Idioms and Phrase, you must be prepared to face those types of questions. So you should have good knowledge in the Idioms and Phrases also.

Jumbled Sentence:

·        In Jumble Sentence, you have to connect each sentence sequentially.
·        Co-relating each sentence and understand each sentence’s view point. Make it a story by arranging all sentences. Choose the option accordingly.

REARRANGEMENT OF JUMBLED SENTENCES


In these types of questions, the candidate is given a set of five or six sentences which are in jumbled order. The given sentences should be arranged properly to form a meaningful paragraph and answer the questions based on the sequence formed.

Directions:

Read the following statements to decide their sequence to make a meaningful passage and then answer the questions given below them

Question:

A.   Therefore large scale construction programme that can be affordable at reasonable cost has to be launched.
B.   Construction has not kept with it and the shortage of accommodation has been accentuated.
C.   But high cost of materials and labour makes housing an unprofitable proposition.
D.   The census figures show that the population of our cities has increased immensely in the recent years.
E.   This shortage must be overcome in a reasonably short time.

1).Which of the following should be the FIRST sentence?
a)    A
b)    B
c)    C
d)    D
e)    E
2).Which of the following should be the SECOND sentence?
a)    E
b)    A
c)    B
d)    C
e)    D
3).Which of the following should be the LAST sentence?
a)    D
b)    E
c)    A
d)    B
e)    C
4).Which of the following should be the THIRD sentence?
a)    E
b)    D
c)    C
d)    A
e)    B
5).Which of the following should be the FOURTH sentence?
a)    B
b)    C
c)    D
d)    E
e)    A

Important Tips to Rearrange the Above Sentences:


Hint 1: Try to find out the topic addressed by the paragraph. This can be done by looking for the words that are repeated often in the given sentences
·         Here, the word repeated is construction and the topic addressed is construction of houses

Hint 2: If a sentence starts with the words ‘That’, ‘These’, ‘Thus’, ‘Those’ and ‘But’, then those sentences will not come as the 1st sentence in the paragraph

Hint 3: If a sentence starts with the words Hence, Finally or Therefore then that sentence comes last in the arrangement
·         Now, sentence (A) can be the last sentence of the arrangement (it can be confirmed after analyzing the rest of the sentences)
·         So the sentences (A), (C) and (E) cannot be the 1st sentence of the arrangement
·         This leaves sentences (B) and (D), where any one of them can be the 1st sentence

Hint 4: In sentence (B), the pronoun it is used. The word that denotes the ‘it’ will be in the previous sentence.
·         So, (B) cannot be the 1st sentence.
·         That leaves sentence (D) as the only option for 1st sentence.
·         This can further be confirmed by the following point.

Hint 5: If an article namely ‘a’, ‘an’ or ‘the’ is present at the starting of a sentence. Then the chances of that sentence to be the 1st in the arrangement is more

FIRST SENTENCE – (D) The census figures show that the population of our cities has increased immensely in the recent years.
·         Now considering the sentence (B), Construction is compared with the word referred by the pronoun it.
·         After reading all the sentences it can be concluded that it denotes the increase in population mentioned in (D)
·         So, (B) follows (D)

Hence, SECOND SENTENCE – (B) Construction has not kept with it and the shortage of accommodation has been accentuated.
·         Now sentence (E) starts with the pronoun This followed by the word shortage.
·         Search for the word shortage in the other sentences.
·         It can be found in sentence (B), which implies that (E) follows (B)

So, THIRD SENTENCE – (E) This shortage must be overcome in a reasonably short time.
·         By reading the remaining 2 sentences (A) and (C), we can see that sentence (A) provides a solution to the problem mentioned in (C)
·         So, (A) follows (C)
·         Already, according to Hint 3, (A) is the tentative last sentence of the arrangement.

Therefore, LAST or FIFTH SENTENCE – (A) Therefore large scale construction programme that can be affordable at reasonable cost has to be launched.

Which leaves, FOURTH SENTENCE - (C) But high cost of materials and labour makes housing an unprofitable proposition.

Answers:

The final arrangement is as follows
FIRST SENTENCE – (D) The census figures show that the population of our cities has increased immensely in the recent years.
SECOND SENTENCE – (B) Construction has not kept with it and the shortage of accommodation has been accentuated.
THIRD SENTENCE – (E) This shortage must be overcome in a reasonably short time.
FOURTH SENTENCE - (C) But high cost of materials and labour makes housing an unprofitable proposition.
LAST or FIFTH SENTENCE – (A) Therefore large scale construction programme that can be affordable at reasonable cost has to be launched.
Answers from questions 1 – 5 are as follows
1). D 2). C 3). C 4). A 5). B  

Error Spotting:

·        Read the sentence carefully and try to translate in your mother tongue. If you understand the sentence without struck then there is no error in that sentence.
·        Check whether any misspelt word which gives different meaning or not. If it gives different sense then there might be error in that part.
·        Then check grammatical errors like subject verb agreement, Tense, preposition, etc...
·        Then find, is there any inversion in sentence.
·        Practice well and read sentence twice or thrice to interpret its meaning.
 

About Error Spotting:

·         It is natural to every people, who make errors commonly.
·         Most of the errors are by cross-association, and while we learning English the mistakes made by people are unavoidable
·         Spotting error is a common test and forms of almost all the important examinations.
·         Spotting Errors brings an awareness of the basic rule of grammar, Parts of speech, noun, pronoun, adjective, adverb, and preposition.
·         There are also many practical tips to make the sentence to be correct without errors
·         The most heartening thing is that there is no error that is not to be removed
·         The errors committed by people got the reason that, we forget the correct grammar, or carelessness.
·         The best guarantee of avoiding mistake is to be use the correct part of English.  






Wednesday, 12 April 2017

Non Performing Assets(NPA)


Non-Performing Assets 

If the customers do not repay principal amount and/or interest for a period of 90 days then such loans become non-performing assets (NPA). 
All those assets which generate periodical income are called as Performing Assets (PA). While all those assets which do not generate periodical income are called as Non-Performing Assets (NPA).

An NPA is a loan or advance where:

1. Term Loan – interest and/or installment of principal remains overdue for more than 90 days.
2. Overdraft / Cash credit - account is out of order.
  • Outstanding balance remains continuously in excess of the sanctioned limit / drawing power.
  • Outstanding balance is within the sanctioned limit / drawing power, but there are no credits continuously for 90 days as on the date of balance sheet, or the credits are not enough to cover the interest debited during the same period.
3. Bills purchased and discounted – bill remains overdue for more than 90 days.
4. Short duration crops (crop season is upto a year) – installment of principal or the interest thereon remains overdue for two crop seasons.
5. Long duration crops - installment of principal or the interest thereon remains overdue for one crop season.

Types of NPA

NPA have been divided or classified into following four types:-
  1. Standard Assets : A standard asset is a performing asset. An assets which is generating regular income to the bank.
  2. Sub-Standard Assets : All those assets (loans and advances) which are considered as non-performing for a period of more than 90 days but less than 12 months are called as Sub-Standard assets. ( Special Mention Account : It includes those assets (loans and advances) which are due for a period of 90 days. "Till 90 days = Special Mention Account and Till 12 Months it becomes Sub-Standard Assets")
  3. Doubtful Assets : All those assets which are considered as non-performing for period of more than 12 months are called as Doubtful Assets.
  4. Loss Assets : All those assets which cannot be recovered are called as Loss Assets.

Example of NPA 

We suppose that a party was disbursed a loan on January 1, 2010. Its due date is June 1, 2010. But the party does not make a payment. So It will be an Standard Asset from January 1, 2010 till June 1, 2010 (Due Date) It will be a Special Mention Account From June 2, 2010 till August 29, 2010 (90 days) It will be Sub-standard from August 30, 2010 till August 29, 2011 It will be doubtful  from August 30, 2011 till August 29, 2012 It may remain doubtful Asset for a period of 3 years, beginning from 12 months of being an NPA, but once the auditors identify it as a loss, it will be assigned a loss asset; however, the period may be anything above 3 years.

Causes of NPA

NPA arises due to a number of factors or causes like:-
  1. Speculation : Investing in high risk assets to earn high income.
  2. Default : Willful default by the borrowers.
  3. Fraudulent practices : Fraudulent Practices like advancing loans to ineligible persons, advances without security or references, etc.
  4. Diversion of funds : Most of the funds are diverted for unnecessary expansion and diversion of business.
  5. Internal reasons : Many internal reasons like inefficient management, inappropriate technology, labour problems, marketing failure, etc. resulting in poor performance of the companies.
  6. External reasons : External reasons like a recession in the economy, infrastructural problems, price rise, delay in release of sanctioned limits by banks, delays in settlements of payments by government, natural calamities, etc.

SARFAESI Act 

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, allow banks and financial institutions to auction properties (residential and commercial) when borrowers fail to repay their loans. It enables banks to reduce their non-performing assets (NPAs) by adopting measures for recovery or reconstruction. The Act provides three alternative methods for recovery of non-performing assets, 
  1. Securitisation - This is a process where financial assets (dues from a borrower) are converted into marketable securities (security receipts) that can be sold to investors.
  2. Asset Re-construction - The Act uses the term ‘asset re-construction’ for the acquisition of any right or interest, of any bank or financial institution, in any financial assistance, by any securitization company or Re-construction Company, for the purpose of realization of such financial assistance.
  3. Enforcement of Security Interest - In the normal course, court intervention is required for sale of property and realization of money due from a defaulter. SARFAESI Act has made provisions for banks and financial institutions to take possession of securities given for financial assistance and sell the same in the event of default.

Here is how this process is takes place:

1. A borrower makes any default in repayment and his account is classified as NPA.
2. The secured creditor has to issue notice to the borrower giving him 60 days to pay his dues.
3. If the dues are not paid, the bank can take possession of the assets and can also give it on lease or sell it.

Reselling of NPAs:

The NPAs can be resold as well. The purchasers are called Asset Reconstruction Companies such as Asset Reconstruction Company (India) (ARCIL).
1. A bank can sell NPA from its books to asset reconstruction companies such only if it has remained NPA for at least two years.
2. These sales are only on Cash Basis and the purchasing bank/ company would have to keep the accounts for at least 15 months before it sells to other bank.
3. Once the NPA is purchased, it is classified as Standard for a period of 90 days.

Debt Recovery Tribunal (DRT)

The Debts Recovery Tribunals have been established by the Government of India under an Act of Parliament (Act 51 of 1993) for expeditious adjudication and recovery of debts due to banks and financial institutions.
Debts Recovery Tribunal is the appellate authority for appeals filed against the proceedings initiated by secured creditors under Sub-Section (4) of Section 13 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002.

Appellate Tribunal

Any person aggrieved by an order of the DRT can appeal to the Appellate Tribunal within 30 days of date of receipt of the order. The borrower has to deposit 50% of the amount claimed by the secured creditor, before filing an appeal. The Appellate Tribunal can reduce the deposit requirement to 25% of the amount claimed, after recording the reasons for such a concession.

Monday, 10 April 2017

RBI First Bi-monthly Policy 2017-18 


Reserve Bank of India (RBI) has announced its First Bi- monthly Monetary Policy Rates for 2017-18 in Mumbai today. You can go through the details of First Bi-monthly Monetary Statement below. The First Bi-monthly policy has been released based on the assessment of the Monetary Policy Committee of the Reserve Bank of India (RBI). Monetary Policy Rates are crucial for the exam, especially Banking awareness.
Policy Statement Dates of Release
Second Bi-monthly Monetary Policy Statement for 2017-18  7th June 2017
Third Bi-monthly Monetary Policy Statement for 2017-18 2nd August 2017
Fourth Bi-monthly Monetary Policy Statement for 2017-18 4th October 2017
Fifth Bi-monthly Monetary Policy Statement for 2017-18 6th December 2017
Sixth Bi-monthly Monetary Policy Statement for 2017-18 7th February 2018

RBI First Bi-Monthly Monetary Policy 2017-18 : Highlights

The Reserve Bank of India in its First bi – monthly statement 2017-18 has made the following announcements -
  • Repo rate under the liquidity adjustment facility (LAF) remains unchanged at 6.25 per cent.
  • Reverse repo rate under the LAF has been increased to 6.00 per cent from earlier rate of 5.75%.
  • Marginal standing facility (MSF) rate and the Bank Rate have been reduced 6.50 per cent from earlier rate of 6.75%. 
  • Cash Reserve Ratio (CRR)remains unchanged at 4%
  • RBI has forecasted Gross Value Added (GVA) growth at 7.4% in the financial year 2017-18 and 8.1% in FY19. 
  • As per RBI's report, the decision of the Monetary Policy Committee (MPC) is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.

Let us now understand some common terms of the Policy rates - 

Repo Rate 

It is the rate at which RBI lends money to commercial banks.

Reverse Repo rate

It is the rate at which RBI borrows money from commercial banks.

Cash Reserve Ratio (CRR)

The share of net demand and time liabilities (deposits) that banks must maintain as cash balance with the Reserve Bank.

Statutory Liquidity Ratio (SLR)

The share of net demand and time liabilities (deposits) that banks must maintain in safe and liquid assets, such as, government securities, cash and gold.

Bank Rate

It is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers for long term.

Marginal Standing Facility Rate (MSF)

The rate at which the scheduled banks can borrow funds from the RBI overnight, against the approved government securities is termed as MSF.
Note - 
  • The minutes of the MPC’s (Monetary Policy Committee) meeting will be published by April 20, 2017.
  • The next meeting of the MPC is scheduled on June 5 and 6, 2017.