My Bank Exam Notes

Que. What is "organisational structure". What are steps involved in designing the organisational structure. (RBI Grade B 2009 exam) Organisations perform their functions to achieve set goals and objectives. Functions of government department’s are defined through their various acts. The structure, management and functions of organisations will differ due to the nature and type of the organisation as well as their respective goals and objectives. A structure ensures the application of process, management and further creates a framework of order and command through which, the activities of the organisation can be planned, organised, directed and controlled. Organisation structure (OS) is defined as " The logical arrangement of task and the network of relationships and roles among the various positions established to carry out the activities necessary to achieve the predetermined objectives of business ".  It is the pattern of relationships among various com

Why India need more CICs & what's their problems? Credit gives life to economic growth of a country. Credit information cos (CICs) keeps database of financial history of people/firms so that banks/FIs can make informed decision to give loans or credit. Around 90% of our population has never borrowed from the formal financial system and hence does not have any credit history. Under the circumstances, they are quite likely to be denied credit by the lending institutions. CICs collects data from banks/FIs/ micro FIs themselves. They came under heavy criticism in 2008 financial crises after CICs and Rating agencies failed to warn of poor asset quality and systemic risks in US. Recently spotlight shifted on CICs after they failed to warn on bank's deteriorating asset quality in India. 4 CICs in India—-Credit Information Bureau (India) Ltd (CIBIL), Experian India, Highmark and Equifax Credit Information Services Private Ltd. CIBIL established in 2000, started busines

This note is based on presentation by Sh Harun R Khan, DG, RBI. I am just attempting to understand his speech. I don't claim to be an expert on finances, students are advised (I was typing adviced - read the difference here ) - you are advised to add if I miss something. Regulation of Financial Markets Financial market participants are 'glass half full' people, and regulators as their 'glass half empty' counterparts. Market participants- see opportunity for reward, regulators see exposure to risk. Recent financial crisis has demonstrated the need for effective regulation, inadequacy of “free market paradigm”. From ‘light touch’ to ‘comprehensive regulation & efficient supervisory framework’ Global initiatives for regulating financial markets besides fiscal and monetary measures are: Dodd-Frank Act : the largest financial regulation overhaul in US since the 1930s, to prevent repeat of 2008 financial crisis. Sweeping new rules for banks, hedge funds an

Everybody knows GOI raises debt but ever wondered how states raise it? State Development Loans (SDLs) - debt issued by State Govts to fund their deficits. RBI coordinates in selling securities. SDLs qualify as SLR security (Statutory Liquity Ratio), and LAF - Repos (Liquidity adjustment facility) meaning banks, PD (Primary dealers) can raise short-term money from RBI under Repo facility. And they are approved investment for provident, pension funds etc. SDL's are traded electronically on NDS-OM (Negotiated Dealing System - Order matching) and in the voice market (NDS). Participants include Banks, insurance cos, provident & pension funds, MFs. Each state has limits to issue security each year . SDLs carry higher coupon rates than GOI-Sec, though trading is very low. All states, good or bad financially managed both, are able to raise capital without much difference in coupon rates, which is an anomaly of course.  RBI is stressing the need for fair pricing and valuati

When certain goals have to be achieved, and individuals have to come together to share work and act with an understanding over a period of time - we say an organisation is formed. Family is also a type of simple organisation. In our families certain roles are defined e.g mothers make food (or go to offices), fathers go to offices, children are expected to study and achieve good grades etc. A lot of planning goes into this simple organisation like how much money needs to saved, in which school children will study and in future what are they going to be doctor, engineer etc. However roles and relationships become more complex in bigger organisations, corporations. ORGANISATION: DEFINITIONS The term organisation can be defined in different ways emphasizing different aspects: 1) Organisation is the form of human association for the attainment of common purpose e.g family, youth welfare association etc. where stress is on cooperative endeavor of human beings. 2) Organisation

Invasion of Crimea by Russia - a small peninsula on top of Black sea is in news. Here's what I've collected from around the internet that could be beneficial for students. Red Peninsula marked 2 is Crimea. Crimea in southern Ukraine is at the center of what is being seen as the biggest crisis between Russia and the West since the Cold War. Crimea has been fought over - and changed hands - many times in its history. It has both cultural and strategic importance for Russia. The Crimean War (1853 – 1856): Russia lost to an alliance of France, Britain, the Ottoman Empire over Crimea. The war was documented extensively in news (even in India). This Crimean war saw active participation from  Florence Nightingale ; the founder of modern nursing. She was known as "The Lady with the Lamp",  The Nightingale Pledge taken by new nurses was named in her honor only. Crimea today Crimea changed many hands, saw many govts and finally transferred by Moscow (ers

Allahabad Bank was founded in 1865 at Allahabad, UP. Though it's headquarters are in Kolkata (since 1923). It was nationalized in 1969. Allahabad Bank is the oldest joint stock bank in India. Symbol means Triveni Sangam of Ganga,Yamuna and Saraswati at Allahabad . Slogan/Tagline: A tradition of trust. Headquarters: Kolkata.

Bank of Baroda was established in 1908 by Maharaja of Baroda, in present day Vadodara, Gujrat. It was nationalized in 1969. Logo: Baroda Sun - comprises of dual ‘B’ letter forms which hold the rays of the rising sun. Sun represents what Bank stands for. Single most powerful source of light and energy, which dispels darkness.  Vermillion colour stands for hope and energy. The Baroda Sun is a universal symbol of dynamism and optimism – it is meaningful and easily decoded by all. Slogan: India’s international Bank. BoB has the maximum branches oversees, around 101 offices in 24 countries. Headquarters: Vadodara, Gujrat.

Vijaya Bank was founded in Manglore, Karnataka.  The bank was merged with 9 smaller banks in 1963-68 & it was subsequently nationalized in 1980. As it was established on Vijayadashmi Day, hence it was named Vijaya Bank. Symbol of a polite man in their logo implies ”your partner in progress” . Tagline:A friend you can bank upon. Headquarters: Banglore , Karnataka.

Advice (n) - On advice of my CA, I filed taxes. Advise (v) - CA advised me to file taxes regularly. Difference: 1st is noun, other is verb. You can't use ' adviced '. That's wrong, 'advised' is correct. These 2 are very confusing words. Often in official letters, essays they are used wrongly. How to remember Advice is noun, other 1 verb? A way to remember is " Vice " meaning 'immoral or wicked behavior' is always noun. or " Vice -President" is always an individual and a noun , so you can remember it like this also. So I give my 'ad vice'  to you that you always remember what I 'advised' you. Watch this  video for more.

Punjab & Sind Bank (P&SB) founded in 1908, its main area of operation is in Punjab. It was nationalized in 1980 (along with 5 others). Tag line is "Where service is a way of life". I think it's main vision is to emerge as techno savvy bank, so it's tag line hints at this intention. It's motto is “ Sarva Jana Hitai Sarva Jana Sukhai ” which roughly means "For good of all and happiness of all". Headquaters : New Delhi Setluj Gramin Bank, a Regional rural bank, is sponsored by P&SB only. Image courtesy: P&S bank

OBC was established in 1943 at Lahore. After partition it was shifted to India only. Tagline : Where every individual is committed. Individual here stands for their employees. In 2004, Global Trust Bank Limited (GTB), a private sector bank, was amalgamated into OBC. Headquarter : Gurgaon, in Haryana. Logo seems preety simple for this bank. Just O, B and C. If there is any meaning I couldn't find it anywhere.

Started as a 'nidhi' in 1906 at Udipi, Karnataka. In that era nearest modern bank branch was at Manglore. It's agent used to visit Udipi after a fortnight. So it's founder started the bank in Udipi itself to cater to needs of local people. It was nationalised in 1980 (alongwith 5 others). The Bank's motto - 'Sarve Janah Sukhino Bhavanthu' meaning 'Prosperity for All'. Tagline: 'Prosperity for All' . The Bank's logo has various components: Kamadhenu (denoting wish-fulfillment), Kalpatharu (eternity), Balance (justice for all), Wheel (industrial progress) and Wheat Grains (agricultural prosperity) which stand for universal prosperity and as a wish-fulfilling credo. Headquarters : Manglore, Karnataka. Image courtesy: Corpbank

Andhra Bank -  a Public sector bank, nationalized in 1980 (alongwith 5 others). Andhra bank: Tagline/ Punchline. It's like a way of saying: 'Enter' andhra bank 'for all your needs'. Great foundation It's often asked in interviews so remember - a great freedom fighter laid it's foundation. The bank was founded by Dr. Bhogaraju Pattabhi Sitaramayya in 1923 in Machilipatnam, Andhra Pradesh. He was renowned freedom fighter and political leader. He even ran for the presidency of Congress against Netaji Subashchandra Bose, and he ran successfully in 1948. He was part of JVP (Jawahar, Vallabhbhai & Pattabhi) committee which rejected idea of states formation on linguistic lines. Corporate Identity: Togetherness is the Theme The Symbol of  Infinity denotes a Bank that is prepared to do any thing, to go to any lengths, for the customer The Blue pointer on the top represents the philosophy of a Bank that is always looking for gr