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Current Affairs on Finance

Current Affairs 7 April 2015

Dena Bank on 6 April 2015 signed agreement with which Insurance company to provide insurance cover to its savings account holders under the Prime Minister's Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) scheme?: Life Insurance Corporation - (LIC)

Explanation: Account holders in the age group of 18 to 50 years can avail of the product under which LIC will give a life cover of Rs 2 lakh in case of death of the insured person at a nominal premium of Rs 330 per annum. The bank customers can join the scheme between 1 June 2015 to 31 May 2016. Dena bank will have separate branches for claim settlement. The bank currently has 1.2 crore savings accounts and is targeting to extend the life cover benefit to all the customers.

Current Affairs 6 April 2015

Which Bank in India has topped the list of public sector banks with maximum bad loans including restructured assets as a percentage of total advances?: Central Bank of India

Explanation: Reserve Bank of India (RBI) notified to the Finance Ministry that the Central Bank of India's 21.5 percent assets are either bad or have been restructured to keep them from turning into non-performing assets (NPAs). The other banks which have significant amount of gross NPAs and restructured loans include United Bank of India (19.04 per cent), Punjab and Sind Bank (18.25 per cent) and Punjab National Bank with 17.85 per cent as on December 2014. Most of the restructured loans are from the corporate sector. The top-30 defaulters are sitting on bad loans of Rs 95,122 crore. Indian Overseas Bank, State Bank of Patiala, Allahabad Bank and Oriental Bank of Commerce all have bad and restructured loans in excess of 15 per cent.

Posted on: 06th April 2015 Read complete Article →

Banking and Financial Awareness 20 March - 6 April 2015

The collection of which kind of taxes has surpassed the revised estimates by Rs 4,000 crore to reach Rs 5.46 lakh crore for the fiscal ended March 2015, despite a slowdown in the manufacturing sector?: Indirect taxes

Explanation: Indirect tax collection growth is linked to industrial output. The growth in factory output, as measured by the Index of Industrial Production (IIP), grew by 2.5 per cent during April-January period of 2014-15, reflecting the slowdown. However, the total collection as on March 31 is Rs 5,46,479 crore, based on the provisional report as against revised estimates of Rs 5,42,325 crore for 2014-15.  

Posted on: 06th April 2015 Read complete Article →

Which Bank on 1 April 2015 has filed draft papers with capital markets regulator Sebi to raise up to Rs 400 crore through an initial public offer (IPO) to shore up its capital base?: Catholic Syrian Bank

Explanation: The bank will issue equity shares aggregating up to Rs 4,000 million. Besides, the mid-sized private lender is considering to garner up to Rs 150 crore via pre-IPO placement. The issue is being managed by ICICI Securities and Kotak Mahindra Capital Company. This is the eighth draft document filed with Sebi to float an IPO, since January.

On 31 March 2015, Reserve Bank has taken very bold step and notified relaxation of investor positions in which kind of Market?: Exchange-traded currency derivatives (ETCD) market

Explanation:  The limit for domestic importers of goods and services to take hedging positions in ETCD markets has been doubled to 100 percent of the higher of the average of their last three years' imports turnover or the previous year's turnover. The limit for domestic entities and Foreign Portfolio Investors to take foreign currency positions in the USD-INR pair on ETCD market has been increased to USD 15 million per exchange and an aggregate limit of USD 5 million equivalent per exchange for EUR-INR, GBP-INR and JPY-INR pairs. Non-resident Indians may be allowed to participate in the ETCD markets in future based on this experience.

Sensex logs a hefty rise of 25 percent in 2014-15, benchmark Sensex on 31 March 2015 capped its best show in how many years mainly driven by surge in foreign inflows.?:  six (6) fiscal years

Explanation: Indian companies raised a staggering Rs 58,801 crore through equity markets in the financial year that ended on 31 March 2015, the best funds mop-up since 2010-11 fiscal. Thus during the fiscal 2014-15, Sensex has gone up by 5,571.22 points, or 24.88 percent to 27,957.49 from 22,386.27 on March 31, 2014. The gauge had touched all-time high of 30,024.74 on March 4 this year. Also the NSE's Nifty zoomed by 1,786.80 points, or 26.65 percent, to settle the fiscal at 8,491 after scaling lifetime high of 9,119.20 on March 4 this year. 

Under the credit plan (2015-16) Andhra Pradesh government has released of Rs 14,617.14 crore for which district to boost agriculture and other allied sectors ?: Guntur district

Explanation:  The credit plan for 2014-15 was decided at Rs 12,491.43 crore. Under the plan, Rs 9,182.54 crore are allocated for agriculture and other allied sectors, Rs 1704.39 crore for industries, Rs 1,729.11 crore for other priority sectors and Rs 2001.14 crore for non-priority sectors.The Andhra Pradesh agriculture minister Pulla Rao appealed to bankers to provide loans to farmers and unemployed youths. 

The Reserve Bank on 27 March 2015 had revised regulations for non-banking finance lenders. Therefore, those failing to comply with new regulation will not get accepted fresh deposits or renew older ones. What is this new Regulation?: Every NBFCs should get rated by March 2016

Explanation:  With this new regulation, those asset finance companies (AFCs) that do not get a minimum investment grade rating by the end of March 2016, shall not renew existing deposits or accept fresh deposits thereafter.  IN last year November, the Reserve Bank had come out with a new regulatory framework for NBFCs, in which it insisted on having a much stronger capital base, failing which they would lose their registration. The RBI has also tweaked rules in respect of net-owned funds, and pegged the mandatory requirement at Rs 2 crore for all NBFCs and has given time till April 2017 to comply.

With an aim to reduce risk in the banking sector, RBI on 29 March 2015 has proposed to limit exposure of a bank to a business group to what percent of its capital, down from the existing level of 55 percent?: 25 percent

Explanation: The RBI's proposal is in line with BCBS standards (BASEL norms on capital adequacy) where it has proposed through a draft that the sum of all the exposure values of a bank to a single counterpart or to a group of connected counterparties must not be higher than 25 percent of the bank's available eligible capital base at all times. The proposed 'Large Exposure' (LE) framework will be fully applicable from January 1, 2019 while seeking stakeholders' views on it till April 30.

The Reserve Bank of India on 30 March 2015 has issued guidelines that would help banks show better profit numbers for fiscal year 2014-15. Under this the central bank has allowed lenders to draw half the countercyclical buffer to make provision against which kind of loans and  will help them report reduced losses against such loans.?: Bad Loans

Explanation: Countercyclical provisioning buffer is created in good times. It can be utilised during economic downturns when banks are often required to make unusually high bad loan provisions. As per the Analysts, the move would come as a major relief to banks since most lenders expected bad loans to go up this fiscal year as there was poor demand for fresh loans even as the share of bad loans rose due to weak economic growth. 

Posted on: 06th April 2015 Read complete Article →
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