General Affairs
PM Modi To Launch Four Sewerage Projects During Bihar Visit
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Prime Minister Narendra Modi is scheduled to visit Bihar's Motihari as well as capital Patna where he will lay the foundation stone for four sewerage projects, an official release said on Monday.
PM Modi will also address 20,000 Swachhagrahis (ambassadors of cleanliness) as part of the concluding ceremony of centenary celebrations of the Champaran Satyagraha.
The sewerage projects are worth Rs. 1,111.56 crore. "These four projects together will create new sewage treatment plant (STP) capacity of 60 MLD and lay the sewer network of 376.12 km in Saidpur and Pahari sewerage zones of Patna," the release said.
The expected sewage load for Patna by 2035 is estimated to be 320 MLD.
The four plants, along with 29 other ongoing projects in Bihar under the Namami Gange scheme, once completed will leave no untreated sewage water from Patna flowing into Ganga, it said.
The theme of the centenary celebrations of the Champaran Satyagrah is "Satyagrah se Swachhagrah".
Mahatma Gandhi launched the Champaran Satyagrah on April 10, 1917 against the British to fight for the rights of farmers who were forced to undertake indigo cultivation.
Swachhagrahis are the 'foot soldiers' and motivators to implement the Community Approaches to Sanitation at the village level.
PM Modi will also address 20,000 Swachhagrahis (ambassadors of cleanliness) as part of the concluding ceremony of centenary celebrations of the Champaran Satyagraha.
The sewerage projects are worth Rs. 1,111.56 crore. "These four projects together will create new sewage treatment plant (STP) capacity of 60 MLD and lay the sewer network of 376.12 km in Saidpur and Pahari sewerage zones of Patna," the release said.
The expected sewage load for Patna by 2035 is estimated to be 320 MLD.
The four plants, along with 29 other ongoing projects in Bihar under the Namami Gange scheme, once completed will leave no untreated sewage water from Patna flowing into Ganga, it said.
The theme of the centenary celebrations of the Champaran Satyagrah is "Satyagrah se Swachhagrah".
Mahatma Gandhi launched the Champaran Satyagrah on April 10, 1917 against the British to fight for the rights of farmers who were forced to undertake indigo cultivation.
Swachhagrahis are the 'foot soldiers' and motivators to implement the Community Approaches to Sanitation at the village level.
Delhi Airport Is "Fastest-growing", Bumps JFK Off World's 20 Busiest List
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New York's John F. Kennedy International Airport is no longer ranked among the 20 busiest in the world, thanks to the rush in Asia.
Among those pushing out JFK was New Delhi's Indira Gandhi International Airport that made its debut on the table last year at No. 16, according to Airports Council International rankings released Monday. The Indian airfield was also the fastest-growing on the list, with passenger growth at 14 percent, followed by the 10 percent clip at China's Guangzhou, which climbed two notches to No. 13.
World aviation's center of gravity is continuing its eastward shift, with China and India poised to feature among the world's top three air-travel markets by 2020 as rising incomes make fares more affordable, Montreal-based ACI said. Asia Pacific is likely to have 3.5 billion passengers by 2036, adding more than double the forecast for North America and Europe combined, according to estimates by the International Air Transport Association.
To cater to that explosion in demand, about half of the $1 trillion budgeted for airport expansions and upgrades around the world are expected to be spent in Asia, Sydney-based CAPA Centre for Aviation estimates.
Efforts by Chinese airlines to add more direct flights to the U.S. and Europe stoked passenger traffic at second- and third-tier airports last year, ACI said. Travel demand in China is expected to add 3 billion more passengers by 2040, representing 21 percent of the projected global passenger traffic growth, it said.
Other ACI highlights:
Atlanta, still the world's busiest airport, was the only one among the top 20 to report a decline in passenger traffic In China, Tianjin airport reported 25% more passengers last year; Nanjing 15.5%, and Xian 13% In India, passenger traffic in Kolkata (formerly Calcutta) jumped 27%, while Hyderabad saw a 20% gain and Bangalore, 13% Dubai was the world's busiest for international passengers, followed by London's Heathrow and Hong Kong For air cargo, Hong Kong took the top place, with Memphis and Shanghai coming in second and third.
Among those pushing out JFK was New Delhi's Indira Gandhi International Airport that made its debut on the table last year at No. 16, according to Airports Council International rankings released Monday. The Indian airfield was also the fastest-growing on the list, with passenger growth at 14 percent, followed by the 10 percent clip at China's Guangzhou, which climbed two notches to No. 13.
World aviation's center of gravity is continuing its eastward shift, with China and India poised to feature among the world's top three air-travel markets by 2020 as rising incomes make fares more affordable, Montreal-based ACI said. Asia Pacific is likely to have 3.5 billion passengers by 2036, adding more than double the forecast for North America and Europe combined, according to estimates by the International Air Transport Association.
To cater to that explosion in demand, about half of the $1 trillion budgeted for airport expansions and upgrades around the world are expected to be spent in Asia, Sydney-based CAPA Centre for Aviation estimates.
Efforts by Chinese airlines to add more direct flights to the U.S. and Europe stoked passenger traffic at second- and third-tier airports last year, ACI said. Travel demand in China is expected to add 3 billion more passengers by 2040, representing 21 percent of the projected global passenger traffic growth, it said.
Other ACI highlights:
Atlanta, still the world's busiest airport, was the only one among the top 20 to report a decline in passenger traffic In China, Tianjin airport reported 25% more passengers last year; Nanjing 15.5%, and Xian 13% In India, passenger traffic in Kolkata (formerly Calcutta) jumped 27%, while Hyderabad saw a 20% gain and Bangalore, 13% Dubai was the world's busiest for international passengers, followed by London's Heathrow and Hong Kong For air cargo, Hong Kong took the top place, with Memphis and Shanghai coming in second and third.
Chhattisgarh Village, Plunged Into Darkness By Maoists In 2003, Gets Electricity After 15 Years
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Life may not have been as well as they had hoped, but residents of Chintalnar village in Chhattisgarh's Sukma district at least had basic amenities such as electricity and water. This was in 2003. Little did they know that their simple joy of having electricity would be short-lived.
Chhattisgarh's Sukma district has for long been adversely affected by Maoist activity, and on one fateful night in the summer of 2003, residents of Chintalnar village paid the price for no fault of their own. As families in the village sat to eat their dinner one evening, they faced a power outage. It has now been fifteen years.
Maoists, who are anti-development, had destroyed all the power lines and other infrastructure to Chintalnar village. They had then warned the villagers from trying to get it repaired. Never had the villagers imagined that something as basic as electricity would be taken away from them by the Maoists.
For fifteen long years the village lived in the shadow of fear and darkness. Most of the children had never seen lights at their homes.
In mid-2010, Chintalnar village made national headlines when, in an ambush, Maoists killed 76 security personnel, who were on an area domination exercise near the village.
It was only last year that infrastructure work picked pace after security forces launched an offensive against Maoist rebels. The electrification of villages are in line with the Narendra Modi government's ambitious plan to provide electricity to every village in every corner of India by March 2019. In Chhattisgarh, the government led by chief minister Raman Singh has made it their mission to ensure that every village in the state gets power supply by June 2018.
Work has now been completed in Chintalnar village, which is located around 80 kilometres from the district headquarters in Sukma. The village, which had been a strong foothold of the Maoists is now slowly getting back to the path of development.
Speaking to news agency ANI, the residents of the village expressed delight over the electrification of the area. "Electrification of this area is a major relief for all of us. It will be easier for children to study at night. It has been more than a decade since the Naxals uprooted the (electricity) poles," a villager said.
"Naxals kept villagers deprived of electricity. Our jawans (soldiers) had sacrificed their lives for this (electrification) and now it is our responsibility to provide them (villagers) with all the facilities. By June 2018, we will provide electricity to every village," chief minister Raman Singh told news agency ANI.
Chhattisgarh's Sukma district has for long been adversely affected by Maoist activity, and on one fateful night in the summer of 2003, residents of Chintalnar village paid the price for no fault of their own. As families in the village sat to eat their dinner one evening, they faced a power outage. It has now been fifteen years.
Maoists, who are anti-development, had destroyed all the power lines and other infrastructure to Chintalnar village. They had then warned the villagers from trying to get it repaired. Never had the villagers imagined that something as basic as electricity would be taken away from them by the Maoists.
For fifteen long years the village lived in the shadow of fear and darkness. Most of the children had never seen lights at their homes.
In mid-2010, Chintalnar village made national headlines when, in an ambush, Maoists killed 76 security personnel, who were on an area domination exercise near the village.
It was only last year that infrastructure work picked pace after security forces launched an offensive against Maoist rebels. The electrification of villages are in line with the Narendra Modi government's ambitious plan to provide electricity to every village in every corner of India by March 2019. In Chhattisgarh, the government led by chief minister Raman Singh has made it their mission to ensure that every village in the state gets power supply by June 2018.
Work has now been completed in Chintalnar village, which is located around 80 kilometres from the district headquarters in Sukma. The village, which had been a strong foothold of the Maoists is now slowly getting back to the path of development.
Speaking to news agency ANI, the residents of the village expressed delight over the electrification of the area. "Electrification of this area is a major relief for all of us. It will be easier for children to study at night. It has been more than a decade since the Naxals uprooted the (electricity) poles," a villager said.
"Naxals kept villagers deprived of electricity. Our jawans (soldiers) had sacrificed their lives for this (electrification) and now it is our responsibility to provide them (villagers) with all the facilities. By June 2018, we will provide electricity to every village," chief minister Raman Singh told news agency ANI.
Rajnath Singh To Open New NSG Complex In Hyderabad Tomorrow
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Union Home Minister Rajnath Singh will inaugurate the regional hub complex of the elite anti-terror force National Security Guard (NSG) at Ibrahimpatnam near here tomorrow.
The construction of the state-of-the-art regional hub complex by the Central Public Works Department commenced in 2013 and the total project cost was Rs. 157.84 crore.
The 200-acre complex will have residential and office accommodation and modern training facilities such as Baffle firing range, indoor shooting range, 26 obstacles, swimming pool, sports complex, and artificial rock craft wall, a senior NSG official said.
It will house about 600 trained commandos.
"Our endeavour has been to develop this complex as a green campus," he added.
The 28 Special Composite Group (SCG) Complex of NSG is among the four regional hubs in the country and it has been set up to reduce the response time.
"28 SCG complex has become a model regional hub of the NSG, which will help in honing the professional acumen of the NSG commandos and also contribute significantly in capacity building of the first responders, the police forces of the states," the official added.
The construction of the state-of-the-art regional hub complex by the Central Public Works Department commenced in 2013 and the total project cost was Rs. 157.84 crore.
The 200-acre complex will have residential and office accommodation and modern training facilities such as Baffle firing range, indoor shooting range, 26 obstacles, swimming pool, sports complex, and artificial rock craft wall, a senior NSG official said.
It will house about 600 trained commandos.
"Our endeavour has been to develop this complex as a green campus," he added.
The 28 Special Composite Group (SCG) Complex of NSG is among the four regional hubs in the country and it has been set up to reduce the response time.
"28 SCG complex has become a model regional hub of the NSG, which will help in honing the professional acumen of the NSG commandos and also contribute significantly in capacity building of the first responders, the police forces of the states," the official added.
Supreme Court Rebukes Centre, Says Implement Our Order On Cauvery Water
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The central government was reprimanded by the Supreme Court today for ignoring its orders on setting up a regulatory body that would monitor the release of Cauvery river water to Tamil Nadu by Karnataka. The judges of the top court suggested that the centre was acting in guile. "The centre knows what the scheme means," the judges said, asking the government to inform by May 3 how it planned to implement the water sharing formula the court had laid down in February.
The top court also ordered the governments of Tamil Nadu and election-bound Karnataka to ensure peace in both states. "We struggled hard to render Cauvery judgement to resolve the long pending dispute. So people of both states should understand and nothing should be done to hamper the implementation of the judgement," Chief Justice of India Dipak Misra said.
The distribution of water between the neighbouring southern states has been a contentious issue for decades and has turned into a politically volatile one, as Karnataka votes to pick its next government on May 12. Citing the election, the centre had asked for more time to work out the modalities of water-sharing. It also sought clarification on the structure of the regulatory body the court had ordered it to form by March 29, to supervise the release of the water.
"There is no difficulty in setting up the Cauvery Management Board. The only difficulty is whether it should be headed by an administrative or technical member," the government's seniormost law officer told the top court.
"If you had any doubts on our judgement you should have come to us," Justice Misra told the government.
The Centre's delay in setting up the Cauvery Water Management Board upset leaders of Tamil Nadu. Actor-politicians Rajinikanth and Kamal Haasan said Karnataka -- which has been given more water at the state's expense by the Supreme Court -- will benefit from it, because in an election season, all parties will seek to appease it. The state filed a contempt of court petition against the Centre, citing its failure to form the Cauvery Board by March 29.
Tamil leaders say the Cauvery Water Management Board to be constituted urgently so the recurring negotiations with Karnataka over water sharing is done away with. Karnataka has often cited drought or below-average monsoon to reduce the share of water to its neighbour. The Supreme Court order is aimed at ending that flexibility.
The centre had asked the Supreme Court for three more months to set up the board, claiming that doing so now could provoke violence and anger as well as "vitiate the election process".
A range of opposition leaders in Tamil Nadu have agreed to collectively tour the state to protest against the centre for failing to move on the Cauvery water sharing. The march started on April 2.
The top court also ordered the governments of Tamil Nadu and election-bound Karnataka to ensure peace in both states. "We struggled hard to render Cauvery judgement to resolve the long pending dispute. So people of both states should understand and nothing should be done to hamper the implementation of the judgement," Chief Justice of India Dipak Misra said.
The distribution of water between the neighbouring southern states has been a contentious issue for decades and has turned into a politically volatile one, as Karnataka votes to pick its next government on May 12. Citing the election, the centre had asked for more time to work out the modalities of water-sharing. It also sought clarification on the structure of the regulatory body the court had ordered it to form by March 29, to supervise the release of the water.
"There is no difficulty in setting up the Cauvery Management Board. The only difficulty is whether it should be headed by an administrative or technical member," the government's seniormost law officer told the top court.
"If you had any doubts on our judgement you should have come to us," Justice Misra told the government.
The Centre's delay in setting up the Cauvery Water Management Board upset leaders of Tamil Nadu. Actor-politicians Rajinikanth and Kamal Haasan said Karnataka -- which has been given more water at the state's expense by the Supreme Court -- will benefit from it, because in an election season, all parties will seek to appease it. The state filed a contempt of court petition against the Centre, citing its failure to form the Cauvery Board by March 29.
Tamil leaders say the Cauvery Water Management Board to be constituted urgently so the recurring negotiations with Karnataka over water sharing is done away with. Karnataka has often cited drought or below-average monsoon to reduce the share of water to its neighbour. The Supreme Court order is aimed at ending that flexibility.
The centre had asked the Supreme Court for three more months to set up the board, claiming that doing so now could provoke violence and anger as well as "vitiate the election process".
A range of opposition leaders in Tamil Nadu have agreed to collectively tour the state to protest against the centre for failing to move on the Cauvery water sharing. The march started on April 2.
Business Affairs
Fitch Ratings says allegations against ICICI Bank pose reputational risks, corporate governance questions
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Ratings agency Fitch on Monday said the investigation into ICICI Bank CEO Chanda Kochhar's potential conflict of interest in loans sanctioned to Videocon raises questions over the 'bank's governance' and 'creates reputational risks'. Fitch also warned that other regulatory sanctions are also possible, depending on the outcome of the probe.
Questioning the bank's corporate governance, Fitch said, "...the presence of the bank's CEO on this credit committee - and the bank's reluctance to support an independent probe - have, in our opinion, created doubts over the strength of its corporate governance practices."
ICICI Bank investor Arvind Gupta had accused Chanda Kochhar of quid-pro-quo while sanctioning Rs 3,250 crore loan to debt-laden Videocon Group. However, the board of ICICI Bank had backed Kochhar, saying that no individual employee, irrespective of his or her position, has the ability to influence credit decision at the bank.
Gupta had alleged that Chanda Kochhar's husband Deepak Kochhar, who owns NuPower Renewable Group, amassed 'wrongful personal gains' when Kochhar-led ICICI Bank sanctioned loans worth Rs 3,250 crore to various private companies belonging to the Videocon Industries Limited. In 2008, Videocon's Venugopal Dhoot had incorporated NuPower Renewables Private Limited, a 50:50 joint venture business enterprise with Deepak Kochhar.
The ICICI Bank has, on several occasions, denied any wrongdoing in extending loans to Videocon Group. The bank, in its defence, claimed that it was part of over 20-bank consortium which lent the money to beleaguered Videocon Group.
Fitch also said that corporate governance at private banks is generally stronger than at state-owned banks due to better-qualified board members and more professional management. "Losses on the loan in question would be unlikely to significantly undermine ICICI's financial profile - in particular, its core capitalisation would remain strong even if the loan were completely written off," it said.
The note also pointed out that the investigation could also undermine investor confidence in the ICICI Bank, with potential implications for funding costs and liquidity in an extreme scenario. "There is a potential risk of financial penalties, as well as legal action, if the investigation comes up with findings against the bank," Fitch said.
These remarks come in the backdrop of reports claiming that ICICI Bank board is planning the way ahead for Chanda Kochhar in the wake of this controversy.
Questioning the bank's corporate governance, Fitch said, "...the presence of the bank's CEO on this credit committee - and the bank's reluctance to support an independent probe - have, in our opinion, created doubts over the strength of its corporate governance practices."
ICICI Bank investor Arvind Gupta had accused Chanda Kochhar of quid-pro-quo while sanctioning Rs 3,250 crore loan to debt-laden Videocon Group. However, the board of ICICI Bank had backed Kochhar, saying that no individual employee, irrespective of his or her position, has the ability to influence credit decision at the bank.
Gupta had alleged that Chanda Kochhar's husband Deepak Kochhar, who owns NuPower Renewable Group, amassed 'wrongful personal gains' when Kochhar-led ICICI Bank sanctioned loans worth Rs 3,250 crore to various private companies belonging to the Videocon Industries Limited. In 2008, Videocon's Venugopal Dhoot had incorporated NuPower Renewables Private Limited, a 50:50 joint venture business enterprise with Deepak Kochhar.
The ICICI Bank has, on several occasions, denied any wrongdoing in extending loans to Videocon Group. The bank, in its defence, claimed that it was part of over 20-bank consortium which lent the money to beleaguered Videocon Group.
Fitch also said that corporate governance at private banks is generally stronger than at state-owned banks due to better-qualified board members and more professional management. "Losses on the loan in question would be unlikely to significantly undermine ICICI's financial profile - in particular, its core capitalisation would remain strong even if the loan were completely written off," it said.
The note also pointed out that the investigation could also undermine investor confidence in the ICICI Bank, with potential implications for funding costs and liquidity in an extreme scenario. "There is a potential risk of financial penalties, as well as legal action, if the investigation comes up with findings against the bank," Fitch said.
These remarks come in the backdrop of reports claiming that ICICI Bank board is planning the way ahead for Chanda Kochhar in the wake of this controversy.
Sensex rises 161 points to 33,788, Nifty closes at 10,379 level on positive global cues
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The Sensex and Nifty opened the week on a buoyant note and hit their highest levels in nearly four weeks on the back of gains in financials, while stronger Asian stocks also boosted sentiment. While the Sensex closed 161 points or 0.48% higher at 33, 788, Nifty rose 0.46% or 47 points at 10,379 level.
Traders and investors resorted to profit booking during the last 30 minutes of trade after markets hit their intra day high of 33,846 and 10,397 level, respectively in afternoon trade following positive global cues.
Anand Shah, deputy CEO & head of investments, BNP Paribas Mutual Fund said, "After opening on a dull note, the markets subsequently moved higher, on hopes that an out and out trade war between the United States and China could be averted. In an announcement over the weekend, US officials reportedly noted that any penalties on Beijing are not imminent and there is ample time to avert a possible trade war. President Donald Trump said in a tweet Sunday that he expects China to lower trade barriers with the US acting reciprocally on taxes. Market participants viewed this as a positive step and accordingly increased exposure to equities. Both the benchmark Sensex and the Nifty finally closed the day with gains of over 0.25%. On the sectoral front, while media, healthcare and Information Technology (IT) indices traded in the red, gains were witnessed in FMCG and banking indices."
Analysts also attributed the positive weekly start to the Q4 earnings season which starts with IT major Infosys scheduled to announce its results on Friday.
"Expectation is that earnings could be a shade better this quarter," said Gaurang Shah, head investment strategist, Geojit Financial Services.
Axis Bank (3.44%), M&M (3.44%) and ITC (2.05%) were the top Sensex gainers.
Consumer durables (1.70%), oil and gas (1.52%) , and banking stocks (0.90%) rose the most among sectoral indexes on BSE.
IT stocks were the top losers with TCS and Infosys falling before the start of Q4 earnings season on Friday.
BSE Information Technology index was the top loser falling 0.92%.
Sameet Chavan, chief analyst, technical and derivatives at Angel Broking said, "Despite some strong sell-off in US markets on Friday, our markets opened on a subdued note, owing to early morning recovery in 'Dow Futures'. During the initial hour, a follow up buying across the board extended last week's relief rally by more than half a percent. However, due to continuous profit booking, the index could not precisely test the 10400 mark.
The Nifty remained in a positive territory throughout the day; however, the day clearly belongs to the individual stocks. We did see stock specific moves in both directions, which we believe is likely to continue as index is now approaching the important resistance zone of 10400 - 10450. As a momentum trader, one should strictly adopt a stock centric approach as index enters this territory. On the downside, 10350 - 10322 would be seen as important support levels.
With a broader view, we would reiterate that if we look at the weekly and monthly charts, we still believe that worse is not over yet for our markets. This is just a relief rally and hence, one need to keep booking timely profits and ideally should stay light on positions."
Meanwhile, Lemon Tree Hotels , which made its debut with listing gains of 10% closed 27.86% or 15 points higher at Rs 71.60 level on BSE. The stock made its market debut at Rs 61.60 per share, 10% higher than its issue price of Rs 56 per share.
Market breadth was positive with 1,654 stocks closing higher against 1069 ending in the red on BSE.
Global markets
Asian stock markets rose Monday amid uncertainty about an escalating US-Chinese tariff dispute after President Donald Trump said a settlement was possible but his advisers said other nations might add to pressure on Beijing.
The Shanghai Composite Index rose 0.3 percent to 3,142.72 and Tokyo's Nikkei 225 added 0.6 percent to 21,696.73. Hong Kong's Hang Seng advanced 1.8 percent to 30,393.21 and Sydney's S&P-ASX 200 gained 0.3 percent to 5,807.90. Seoul's Kospi rose 0.6 percent to 2,442.02 and India's Sensex added 0.5 percent to 33,789.33. Benchmarks in New Zealand, Taiwan and Southeast Asia also advanced.
Stocks fell on jitters about the possible impact of the tariff dispute on US exporters. Caterpillar, a construction equipment maker, slid 3.5 percent and aircraft manufacturer Boeing lost 3.1 percent. The Dow Jones industrial average dropped 2.3 percent to 23,932.76. It is down 10 percent from its record high in late January. The Standard & Poor's 500 lost 2.2 percent to 2,604.47. The Nasdaq composite slid 2.3 percent to 6,915.11.
Traders and investors resorted to profit booking during the last 30 minutes of trade after markets hit their intra day high of 33,846 and 10,397 level, respectively in afternoon trade following positive global cues.
Anand Shah, deputy CEO & head of investments, BNP Paribas Mutual Fund said, "After opening on a dull note, the markets subsequently moved higher, on hopes that an out and out trade war between the United States and China could be averted. In an announcement over the weekend, US officials reportedly noted that any penalties on Beijing are not imminent and there is ample time to avert a possible trade war. President Donald Trump said in a tweet Sunday that he expects China to lower trade barriers with the US acting reciprocally on taxes. Market participants viewed this as a positive step and accordingly increased exposure to equities. Both the benchmark Sensex and the Nifty finally closed the day with gains of over 0.25%. On the sectoral front, while media, healthcare and Information Technology (IT) indices traded in the red, gains were witnessed in FMCG and banking indices."
Analysts also attributed the positive weekly start to the Q4 earnings season which starts with IT major Infosys scheduled to announce its results on Friday.
"Expectation is that earnings could be a shade better this quarter," said Gaurang Shah, head investment strategist, Geojit Financial Services.
Axis Bank (3.44%), M&M (3.44%) and ITC (2.05%) were the top Sensex gainers.
Consumer durables (1.70%), oil and gas (1.52%) , and banking stocks (0.90%) rose the most among sectoral indexes on BSE.
IT stocks were the top losers with TCS and Infosys falling before the start of Q4 earnings season on Friday.
BSE Information Technology index was the top loser falling 0.92%.
Sameet Chavan, chief analyst, technical and derivatives at Angel Broking said, "Despite some strong sell-off in US markets on Friday, our markets opened on a subdued note, owing to early morning recovery in 'Dow Futures'. During the initial hour, a follow up buying across the board extended last week's relief rally by more than half a percent. However, due to continuous profit booking, the index could not precisely test the 10400 mark.
The Nifty remained in a positive territory throughout the day; however, the day clearly belongs to the individual stocks. We did see stock specific moves in both directions, which we believe is likely to continue as index is now approaching the important resistance zone of 10400 - 10450. As a momentum trader, one should strictly adopt a stock centric approach as index enters this territory. On the downside, 10350 - 10322 would be seen as important support levels.
With a broader view, we would reiterate that if we look at the weekly and monthly charts, we still believe that worse is not over yet for our markets. This is just a relief rally and hence, one need to keep booking timely profits and ideally should stay light on positions."
Meanwhile, Lemon Tree Hotels , which made its debut with listing gains of 10% closed 27.86% or 15 points higher at Rs 71.60 level on BSE. The stock made its market debut at Rs 61.60 per share, 10% higher than its issue price of Rs 56 per share.
Market breadth was positive with 1,654 stocks closing higher against 1069 ending in the red on BSE.
Global markets
Asian stock markets rose Monday amid uncertainty about an escalating US-Chinese tariff dispute after President Donald Trump said a settlement was possible but his advisers said other nations might add to pressure on Beijing.
The Shanghai Composite Index rose 0.3 percent to 3,142.72 and Tokyo's Nikkei 225 added 0.6 percent to 21,696.73. Hong Kong's Hang Seng advanced 1.8 percent to 30,393.21 and Sydney's S&P-ASX 200 gained 0.3 percent to 5,807.90. Seoul's Kospi rose 0.6 percent to 2,442.02 and India's Sensex added 0.5 percent to 33,789.33. Benchmarks in New Zealand, Taiwan and Southeast Asia also advanced.
Stocks fell on jitters about the possible impact of the tariff dispute on US exporters. Caterpillar, a construction equipment maker, slid 3.5 percent and aircraft manufacturer Boeing lost 3.1 percent. The Dow Jones industrial average dropped 2.3 percent to 23,932.76. It is down 10 percent from its record high in late January. The Standard & Poor's 500 lost 2.2 percent to 2,604.47. The Nasdaq composite slid 2.3 percent to 6,915.11.
Lemon Tree Hotels stock closes 27.86% higher on market debut
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The stock of hospitality chain Lemon Tree Hotels listed at a 10% premium on the BSE. The stock made its market debut at Rs 61.60 per share, 10% higher than its issue price of Rs 56 per share. The stock hit an intra day high of 65 level on BSE. The stock listed at the same price on NSE too. Its market capitalisation stood at Rs 4,765 crore on BSE.
At 10:04 am, the stock was trading 8.84% higher than its issue price at Rs 60.95 on BSE. On NSE, the stock was up 8.39% to Rs 60.70 level.
The stock extended gains during the day to close 27.86% or 15 points higher at Rs 71.60 level on BSE.
The IPO was subscribed 1.19 times on the last day of bidding on March 28. The IPO was held from March 26 to March 28 in a price band of Rs 54-56 per share. The shares were available in a lot size of 265 shares.
The Rs 1,038.68-crore Lemon Tree IPO received bids for 15,48,77,925 shares against the total issue size of 12,98,35,580 shares.
The portion meant for qualified institutional buyers (QIBs) was subscribed 3.89 times, non-institutional investors 12 per cent and retail investors 12 per cent.
The company's IPO was of up to 185,479,400 shares (including anchor portion of 55,643,820 shares).
Lemon Tree Hotels raised Rs 311 crore from anchor investors on March 25, 2018. Kotak Mahindra Capital, CLSA India and JP Morgan India managed the issue. 18 anchor investors invested Rs 311.61 crore at a price of Rs 56 per scrip after allotment of 5,56,43,820 shares, the firm said.
SBI Magnum Balanced Fund, DB International Asia, HDFC Small Cap Fund, Aberdeen Asian Smaller Companies Investment Trust Plc, BNP Paribas Arbitrage and Alpine Global Premier Properties Fund were among the anchor investors.
The hotel chain is backed by buyout firm Warburg Pincus and Dutch pension fund APG. The firm's public offer comprises sale of up to 185,479,400 equity shares by the existing shareholders, including Maplewood, Whispering Resorts, Palms International and RJ Corp.
According to the draft red herring prospectus, promoters hold 31.11 per cent stake and private equity investors and other non-promoter share holders hold 68.89 per cent stake in the firm.
"Our company expects listing of the equity shares will enhance our visibility and brand image and provide liquidity to our shareholders. Listing will also provide a public market for the equity shares in India," the company said in draft red herring prospectus (DRHP).
Lemon Tree, currently the leader in terms of controlling interest in owned and leased rooms has operations spread across the value chain and range from acquiring land to owning, leasing, developing, managing and marketing hotels.
The company has 45 hotels with 4,700 rooms in 28 cities. It has a portfolio of 19 owned-hotels, three owned-hotels are located on leased or licensed land, five leased hotels and 18 managed hotels, a company statement said.
Founded in 2002 by Patu Keswani, the company has hotels under three brands - Lemon Tree Premier, which is an upscale brand; Lemon Tree Resorts, a leisure segment brand; Lemon Tree Hotels, a midscale brand and the economy brand Red Fox Hotels.
At 10:04 am, the stock was trading 8.84% higher than its issue price at Rs 60.95 on BSE. On NSE, the stock was up 8.39% to Rs 60.70 level.
The stock extended gains during the day to close 27.86% or 15 points higher at Rs 71.60 level on BSE.
The IPO was subscribed 1.19 times on the last day of bidding on March 28. The IPO was held from March 26 to March 28 in a price band of Rs 54-56 per share. The shares were available in a lot size of 265 shares.
The Rs 1,038.68-crore Lemon Tree IPO received bids for 15,48,77,925 shares against the total issue size of 12,98,35,580 shares.
The portion meant for qualified institutional buyers (QIBs) was subscribed 3.89 times, non-institutional investors 12 per cent and retail investors 12 per cent.
The company's IPO was of up to 185,479,400 shares (including anchor portion of 55,643,820 shares).
Lemon Tree Hotels raised Rs 311 crore from anchor investors on March 25, 2018. Kotak Mahindra Capital, CLSA India and JP Morgan India managed the issue. 18 anchor investors invested Rs 311.61 crore at a price of Rs 56 per scrip after allotment of 5,56,43,820 shares, the firm said.
SBI Magnum Balanced Fund, DB International Asia, HDFC Small Cap Fund, Aberdeen Asian Smaller Companies Investment Trust Plc, BNP Paribas Arbitrage and Alpine Global Premier Properties Fund were among the anchor investors.
The hotel chain is backed by buyout firm Warburg Pincus and Dutch pension fund APG. The firm's public offer comprises sale of up to 185,479,400 equity shares by the existing shareholders, including Maplewood, Whispering Resorts, Palms International and RJ Corp.
According to the draft red herring prospectus, promoters hold 31.11 per cent stake and private equity investors and other non-promoter share holders hold 68.89 per cent stake in the firm.
"Our company expects listing of the equity shares will enhance our visibility and brand image and provide liquidity to our shareholders. Listing will also provide a public market for the equity shares in India," the company said in draft red herring prospectus (DRHP).
Lemon Tree, currently the leader in terms of controlling interest in owned and leased rooms has operations spread across the value chain and range from acquiring land to owning, leasing, developing, managing and marketing hotels.
The company has 45 hotels with 4,700 rooms in 28 cities. It has a portfolio of 19 owned-hotels, three owned-hotels are located on leased or licensed land, five leased hotels and 18 managed hotels, a company statement said.
Founded in 2002 by Patu Keswani, the company has hotels under three brands - Lemon Tree Premier, which is an upscale brand; Lemon Tree Resorts, a leisure segment brand; Lemon Tree Hotels, a midscale brand and the economy brand Red Fox Hotels.
Indian investors concerned about data, confidentiality breach by investment adviser: Survey
-
Retail investors in the country have the strongest level of trust in the financial services industry, almost 30 percent higher than the global average, but are also concerned about data or confidentiality breach, with nearly 41 per cent of them stating that they would consider changing their current investment firms, says a global survey.
According to the survey done by CFA Institute, a global association of investment professionals, 71 per cent of Indian investors trust the financial services industry, compared to 44 per cent globally and 49 per cent in the Asia Pacific region.
Nearly 92 per cent of domestic investors still trust the system and capital markets and believe they have a fair opportunity to profit, the 'The Next Generation of Trust: A Global Survey on the State of Investor Trust' stated.
The study, which was done by CFA Institute in collaboration with Greenwich Associates, gathered responses from 3,127 retail investors and 829 institutional investors from India, China, France, Germany, Singapore, the United Arab Emirates, United Kingdom, United States and other countries. Indian, as well as global investors, the survey revealed, believed that the most important attribute while taking a decision to hire a financial adviser was being able to trust that the adviser would act in the interest of the investor.
Less than half, about 45 per cent, of Indian retail investors said their financial adviser always put investors need first. "The survey shows growing concern among Indian investors who said they have already left or would consider leaving investment firms as a result of a data or confidentiality breach (41 per cent), underperformance (39 per cent), and lack of communication (37 per cent)," it stated.
The survey also highlighted a significant gap between what more than 3,100 retail investors and 800 institutional investors in 12 markets expected from their financial advisers and how satisfied they were with their existing relationships.
"Trust plays a vital role in the world of finance and has consistently been the greatest determinant in selecting a financial adviser. If only one-third of global investors and less than half of Indian investors believe their adviser always puts investors? interests first, it is a challenge for our industry to earn back their trust," CFA Institute India head, Vidhu Shekhar, said.
Investors surveyed in India said that their trust in advisers was driven by those with reliable security measures to protect data (83 per cent importance), and those who provide easy-to-understand investment reports (82 per cent).
Around 81 per cent of domestic investors said they would employ investment professionals with credentials from respected industry organisations.
Close to 79 per cent of Indian investors will prefer engaging with investment professionals who can help generate returns better, fully disclose fees and other costs (78 per cent), charge fees that reflect the value received from the relationship (77 per cent), and disclose and manage any conflicts of interest (72 per cent).
The findings also revealed that 56 per cent of Indian investors believe there will be another financial crisis in the next three years, the highest number globally, with the likely next source being national/global politics (46 per cent), governments defaulting on debt (34 per cent), cryptocurrency bubble (31 per cent), and cyber attack (28 per cent).
"However, 83 per cent of Indian investors believe their advisers are well or very well prepared to manage their portfolio through a financial crisis, as compared to 55 per cent of investors globally," it showed.
"With 87 per cent of Indian respondents under the age of 45 years, all advisers need to do is to demonstrate a strong commitment to ethics, expertise, and transparency," Shekhar said.
According to the survey done by CFA Institute, a global association of investment professionals, 71 per cent of Indian investors trust the financial services industry, compared to 44 per cent globally and 49 per cent in the Asia Pacific region.
Nearly 92 per cent of domestic investors still trust the system and capital markets and believe they have a fair opportunity to profit, the 'The Next Generation of Trust: A Global Survey on the State of Investor Trust' stated.
The study, which was done by CFA Institute in collaboration with Greenwich Associates, gathered responses from 3,127 retail investors and 829 institutional investors from India, China, France, Germany, Singapore, the United Arab Emirates, United Kingdom, United States and other countries. Indian, as well as global investors, the survey revealed, believed that the most important attribute while taking a decision to hire a financial adviser was being able to trust that the adviser would act in the interest of the investor.
Less than half, about 45 per cent, of Indian retail investors said their financial adviser always put investors need first. "The survey shows growing concern among Indian investors who said they have already left or would consider leaving investment firms as a result of a data or confidentiality breach (41 per cent), underperformance (39 per cent), and lack of communication (37 per cent)," it stated.
The survey also highlighted a significant gap between what more than 3,100 retail investors and 800 institutional investors in 12 markets expected from their financial advisers and how satisfied they were with their existing relationships.
"Trust plays a vital role in the world of finance and has consistently been the greatest determinant in selecting a financial adviser. If only one-third of global investors and less than half of Indian investors believe their adviser always puts investors? interests first, it is a challenge for our industry to earn back their trust," CFA Institute India head, Vidhu Shekhar, said.
Investors surveyed in India said that their trust in advisers was driven by those with reliable security measures to protect data (83 per cent importance), and those who provide easy-to-understand investment reports (82 per cent).
Around 81 per cent of domestic investors said they would employ investment professionals with credentials from respected industry organisations.
Close to 79 per cent of Indian investors will prefer engaging with investment professionals who can help generate returns better, fully disclose fees and other costs (78 per cent), charge fees that reflect the value received from the relationship (77 per cent), and disclose and manage any conflicts of interest (72 per cent).
The findings also revealed that 56 per cent of Indian investors believe there will be another financial crisis in the next three years, the highest number globally, with the likely next source being national/global politics (46 per cent), governments defaulting on debt (34 per cent), cryptocurrency bubble (31 per cent), and cyber attack (28 per cent).
"However, 83 per cent of Indian investors believe their advisers are well or very well prepared to manage their portfolio through a financial crisis, as compared to 55 per cent of investors globally," it showed.
"With 87 per cent of Indian respondents under the age of 45 years, all advisers need to do is to demonstrate a strong commitment to ethics, expertise, and transparency," Shekhar said.
BSE chief Ashish Chauhan dismisses banking crisis talk as 'fearmongering'
-
At a time when there are talks that India's banking sector has been shaken to its core after the country's biggest banking scam, Bombay Stock Exchange's Chief Executive Officer (CEO) Ashish Chauhan's remarks on the financial crisis are defiantly assuring. Chauhan says the entire discussion around the Rs 13,700-crore PNB fraud is nothing but 'fearmongering'. Vouching for the country's "solid banking sector", Chauhan said the entire amount in the Nirav Modi fraud is equivalent to just three days of interest of all banks.
Addressing students at Massachusetts Institute of Technology's (MIT) day-long conference on 'Pioneering Innovation' on Sunday, Ashish tried to allay fears around the Indian banking Industry saying the sector is robust. "India's banking sector is fairly strong and regulated. In fact, the amount of fraud being talked about in the PNB case is just three days of interest of the country's banking sector," he said.
Nirav Modi and his partner Mehul Choksi, in connivance of several senior as well as junior bank officials, defrauded PNB of around Rs 13,700 crore. Ever since the scam at PNB was unearthed, several similar frauds have been reported across the country, raising questions over PSBs capacity to keep public money safe.
Chauhan indicated the banking sector, including the central bank Reserve Bank of India (RBI), didn't see any structural reforms even after scandals like Harshad Mehta scam. These reforms, he said, should have happened way back in 1992. "We should have reformed the banking sector in 1992. This (Nirav Modi scam) would not have taken place if we had carried out the reforms then. But we have woken up now, we are doing a good job. One of them is demonetisation, other is the GST and third one is bankruptcy code," Chauhan said.
Chauhan explained that the size of the Indian banking sector is so big that it earns a huge amount of interest on money collectively. He added that when banks offer loan at 12 per cent, they already know that "one out of 12" would be a loan defaulter. "In India we (banks) charge 12 per cent per annum from people who borrow. People who lend to the banks, we give them only four per cent. So basically, the banks earn eight per cent (profit)," he said.
"It is a commercial thing. When they (banks) are taking eight per cent margins, they are assuming that one out of 12 guys are going to be a defaulter. And still they would be okay. They will pay the principal back. One out of those 12 guys in that year has to default. This (Nirav) guy has defaulted over 10 years. So effectively it's 1/10th of the banks. The banking actually works on this. They think, it's the public money. They have already taken the money out of you by not paying the interest," he said.
Showing confidence in the banking sector, Ashish said there's nothing to worry whether your money will be safe or not as the banking structure in India is strong and over regulated. "The banking sector in India is so solid. It's over regulated, just to ensure that if ever anything happens there is enough money to take care (of)," Chauhan said, adding that such episode give banks "enough ammunition to take more money out of you".
"Instead of four, you will get three per cent (interest on deposits) and if you want to borrow, instead of 12 you will get it at 15 per cent. So, do not be panicky, its the other way round," he added.
Addressing students at Massachusetts Institute of Technology's (MIT) day-long conference on 'Pioneering Innovation' on Sunday, Ashish tried to allay fears around the Indian banking Industry saying the sector is robust. "India's banking sector is fairly strong and regulated. In fact, the amount of fraud being talked about in the PNB case is just three days of interest of the country's banking sector," he said.
Nirav Modi and his partner Mehul Choksi, in connivance of several senior as well as junior bank officials, defrauded PNB of around Rs 13,700 crore. Ever since the scam at PNB was unearthed, several similar frauds have been reported across the country, raising questions over PSBs capacity to keep public money safe.
Chauhan indicated the banking sector, including the central bank Reserve Bank of India (RBI), didn't see any structural reforms even after scandals like Harshad Mehta scam. These reforms, he said, should have happened way back in 1992. "We should have reformed the banking sector in 1992. This (Nirav Modi scam) would not have taken place if we had carried out the reforms then. But we have woken up now, we are doing a good job. One of them is demonetisation, other is the GST and third one is bankruptcy code," Chauhan said.
Chauhan explained that the size of the Indian banking sector is so big that it earns a huge amount of interest on money collectively. He added that when banks offer loan at 12 per cent, they already know that "one out of 12" would be a loan defaulter. "In India we (banks) charge 12 per cent per annum from people who borrow. People who lend to the banks, we give them only four per cent. So basically, the banks earn eight per cent (profit)," he said.
"It is a commercial thing. When they (banks) are taking eight per cent margins, they are assuming that one out of 12 guys are going to be a defaulter. And still they would be okay. They will pay the principal back. One out of those 12 guys in that year has to default. This (Nirav) guy has defaulted over 10 years. So effectively it's 1/10th of the banks. The banking actually works on this. They think, it's the public money. They have already taken the money out of you by not paying the interest," he said.
Showing confidence in the banking sector, Ashish said there's nothing to worry whether your money will be safe or not as the banking structure in India is strong and over regulated. "The banking sector in India is so solid. It's over regulated, just to ensure that if ever anything happens there is enough money to take care (of)," Chauhan said, adding that such episode give banks "enough ammunition to take more money out of you".
"Instead of four, you will get three per cent (interest on deposits) and if you want to borrow, instead of 12 you will get it at 15 per cent. So, do not be panicky, its the other way round," he added.
General Awareness
BANKING AWARENESS PRACTICE MCQs FOR ALL BANK EXAMS
-
1. What is the minimum capital requirement for New Banks in the Private Sector?
a) Rs. 200 crore
b) Rs. 300 crore
c) Rs. 500 crore
d) Rs. 600 crore
e) None of these
2. Many times we read a term "ECB" in financial newspapers. What is the full form of ECB?
a) Essential Commercial Borrowing
b) Essential Credit and Borrowing
c) External Credit and Business
d) External Commercial Borrowing
e) None of the above
3. Which among the following banks has launched "Dhanchayat" an educational film to raise awareness on the dangers of borrowing money from unorganised sources?
a) Axis
b) ICICI
c) HDFC
d) SBI
e) YES
4. What is the maximum monthly pension for the subscribers under Atal Pension Yojana?
a) Rs 2000
b) Rs 3000
c) Rs 4000
d) Rs 5000
e) None of these
5. If a company which is not a non - banking financial company wants to collect public deposits, it is governed by ___ Act:
a) RBI Act 1934
b) Banking companies Act
c) Companies Act 1956
d) Central Government
e) None of the above
6. Which among the following has launched a Smart Humsafar Plan, a unique plan which offers multiple benefits of savings and insurance cover for husband and wife under a single policy?
a) ICICI Prudential
b) SBI Life
c) NIACL
d) LIC
e) HDFC ERGO
7. Which country launched world first Facial recognition ATM?
a) China
b) Japan
c) US
d) Canada
e) Brazil
8. Which type of machine is used by Business Correspondents?
a) Micro ATMs
b) POS
c) Biometric Card Reader
d) Solar empowered
e) Water resistant
9. Which among the following bank has tied up with Chinese ecommerce giant Alibaba to provide easier trade finance to small and medium enterprises (SMEs) in the country?
a) HDFC Bank
b) SBI Bank
c) Canara Bank
d) ICICI Bank
e) Axis Bank
10. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate in ____ sector.
a) private, public
b) public, private
c) either a or b
d) cooperative, NBFC
e) None of the above
11. What is the name of the platform launched by State Bank of India (SBI) that enables customers to book their foreign exchange transactions online?
a) SBI eforex
b) SBI emoney
c) SBI eonline
d) SBI eshare
e) SBI ebuddy
12. In CDR, "R" stands for ____.
a) Ratio
b) Receipt
c) Regulation
d) Restructuring
e) Reserve
13. Which of the following is not a function of General Insurance?
a) Cattle Insurance
b) Crop Insurance
c) Marine Insurance
d) Fire Insurance
e) None of the above
14. The Bank for International Settlements (BIS) is the world's oldest international financial organization established on 17 May 1930. The mission of the BIS is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation
in those areas and to act as a bank for central banks. The head office of BIS is located in ___.
a) Hong Kong
b) Switzerland
c)China
d) Mexico
e) Australia
15. National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country. To be operational by the year end, the headquarter of NIIF will be located in ____.
a) Mumbai
b) New Delhi
c) Bengaluru
d) Chennai
e) Kolkata
16. Special Drawing Rights (SDRs) are international foreign exchange reserve assets issued by
a) World Bank
b) WTO
c) ADB
d) IMF
e) None of these
17. Which of the following types of accounts are known as "Demat Accounts"?
a) Zero Balance Accounts
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there
c) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility
e) None of the above
18. According to the Socio Economic and Caste Census (SECC) which among the following states in India has highest per cent of Urban BPL households?
a) Bihar
b) Uttar Pradesh
c) Manipur
d) Jharkhand
e) Sikkim
19. Payment of a cheque may be countermanded by the ___
a) Payee
b) Drawer
c) True owner
d) Drawee
e) None of these
20. Union Government has decided to set up a Bank Board Bureau (BBB) to monitor key performance indicators of two dozen public sector banks (PSBs). BBB will start functioning from ___.
a) 31st December 2015
b) 1st January 2016
c) 31st March 2016
d) 1st April 2016
e) 1st June 2016
21. Identify the well known person related to Banking field in India from the following?
a) Mrs. Meira Kumar
b) Mrs. Kiran Shaw
c) Mr. Arun Jaitley
d) Dr. D Subbarao
e) All of the above
22. A fixed deposit receipt is kept with the bank for its safety, is known as ___?
a) Safe custody
b) Safe deposit
c) Locker
d) Valid safe deposit
e) None of the above
23. Reserve Bank will issue ___bank notes with 3 additional features to aid the visually impaired in identification.
a) Rs. 500 and Rs 1,000
b) Rs. 100 and Rs. 500
c) Rs. 50 and Rs. 100
d) Rs. 10 and Rs. 100
e) None of these
24. Simply click a card launched by SBI special for ____.
a) Cash Transfer
b) Online Shopping
c) Pay Utility Bills
d) For Home Loans
e) None of these
25. Banking Companies are prohibited under Sec 8 of banking Regulation Act to sell and purchase securities. Yet Banks are selling securities (of the customer) which are under pledge as permitted by:
a) Indian Contract Act
b) SARFAESI Act
c) Government Notification
d) Banking Regulation Act
e) None of these
26. Hypothecation is:
a) Atransaction of conditional sale
b) A legal transaction whereby goods may be made available as security for a debt
c) Transfer of ownership by the borrower to the lender
d) Either a or b
e) None of the above
27. Mortgage is a:
a) Security on movable property for a loan
b) Security on immovable property for a loan
c) Concession on immovable property
d) Facility on immovable property
e) Security on loan sanctioned against fixed deposits
28. What is the minimum amount to be invested under Sukanya Samriddhi Scheme?
a) Rs. 500
b) Rs. 1000
c) Rs. 1500
d) No ceiling
e) Rs. 100
29. The Main activity of the Financial Intelligence Unit India (FIUIND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs
30. The SARFAESI Act 2002 empowers Banks / Financial Institutions to recover their non-performing assets (bad loans) without the intervention of the Court. In "SARFAESI" second "S" stands for ____.
a) Securitisation
b) Security
c) Statutory
d) Share
e) Saving
31. The main function of an Asset Management Company is to:
a) hold the securities of various schemes
b) manage the funds by making investments in various types of securities
c) hold its property for the benefit of the unit holders
d) act on behalf of SEBI
e) All the above
32. Global Rating Agency Fitch has downgraded Viability Rating (VR) by one notch to 'bb' of which among the following banks?
a) Bank of Baroda
b) State Bank of India
c) Punjab National Bank
d) Canara Bank
e) IDBI Bank
33. The Banking Codes and Standards Board of India was registered on 18th February, 2006 under which of the following RBI Act?
a) Banking Regulation Act
b) The Societies Registration Act, 1860
c) Cooperative Societies Act
d) None of the above
e) All the above
34. As per the Banking Ombudsman Scheme, any person can file a complaint before the Banking Ombudsman, if the satisfied reply is not received from the bank within a period of ____.
a) one month
b) three months
c) two months
d) six months
e) None
35. CIBIL as a credit bureau caters to:
a) Consumer segments
b) Commercial segments
c) Both commercial and consumer segments
d) Nationalized Banks only
e) Private Banks only
36. Infusion of liquidity, by RBI, is done through _____ from / to banks under a _____ transaction.
a) borrowing, repo
b) borrowing, reverse repo
c) lending, repo
d) lending, reverse repo
e) None of the above
37. Some banks are financing big projects like construction of roads, bridges etc. Financing such projects means banks are helping exactly in:
a) Infrastructural Development
b) Project Management
c) Developing core sector Industry
d) Financial Inclusion
e) All of the above
38. A rate of exchange established between any two currencies on the basis of the respective quotation of each currency in terms of a third currency is known as:
a) Cross rate
b) Merchant rate
c) Wash rate
d) Composite rate
e) None of the above
ANSWERS:
1) c; 2) d; 3) c; 4) d; 5) c; 6) b; 7) a; 8) c; 9) d; 10) b;
11) a; 12) d; 13) e; 14) b; 15) a; 16) d; 17) c; 18) c; 19) b; 20) d;
21) d; 22) a; 23) a; 24) b; 25) d; 26) b; 27) b; 28) b; 29) b; 30) b;
31) b; 32) c; 33) b; 34) a; 35) c; 36) c; 37) a; 38) a.
1. What is the minimum capital requirement for New Banks in the Private Sector?
a) Rs. 200 crore
b) Rs. 300 crore
c) Rs. 500 crore
d) Rs. 600 crore
e) None of these
2. Many times we read a term "ECB" in financial newspapers. What is the full form of ECB?
a) Essential Commercial Borrowing
b) Essential Credit and Borrowing
c) External Credit and Business
d) External Commercial Borrowing
e) None of the above
3. Which among the following banks has launched "Dhanchayat" an educational film to raise awareness on the dangers of borrowing money from unorganised sources?
a) Axis
b) ICICI
c) HDFC
d) SBI
e) YES
4. What is the maximum monthly pension for the subscribers under Atal Pension Yojana?
a) Rs 2000
b) Rs 3000
c) Rs 4000
d) Rs 5000
e) None of these
5. If a company which is not a non - banking financial company wants to collect public deposits, it is governed by ___ Act:
a) RBI Act 1934
b) Banking companies Act
c) Companies Act 1956
d) Central Government
e) None of the above
6. Which among the following has launched a Smart Humsafar Plan, a unique plan which offers multiple benefits of savings and insurance cover for husband and wife under a single policy?
a) ICICI Prudential
b) SBI Life
c) NIACL
d) LIC
e) HDFC ERGO
7. Which country launched world first Facial recognition ATM?
a) China
b) Japan
c) US
d) Canada
e) Brazil
8. Which type of machine is used by Business Correspondents?
a) Micro ATMs
b) POS
c) Biometric Card Reader
d) Solar empowered
e) Water resistant
9. Which among the following bank has tied up with Chinese ecommerce giant Alibaba to provide easier trade finance to small and medium enterprises (SMEs) in the country?
a) HDFC Bank
b) SBI Bank
c) Canara Bank
d) ICICI Bank
e) Axis Bank
10. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate in ____ sector.
a) private, public
b) public, private
c) either a or b
d) cooperative, NBFC
e) None of the above
11. What is the name of the platform launched by State Bank of India (SBI) that enables customers to book their foreign exchange transactions online?
a) SBI eforex
b) SBI emoney
c) SBI eonline
d) SBI eshare
e) SBI ebuddy
12. In CDR, "R" stands for ____.
a) Ratio
b) Receipt
c) Regulation
d) Restructuring
e) Reserve
13. Which of the following is not a function of General Insurance?
a) Cattle Insurance
b) Crop Insurance
c) Marine Insurance
d) Fire Insurance
e) None of the above
14. The Bank for International Settlements (BIS) is the world's oldest international financial organization established on 17 May 1930. The mission of the BIS is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation
in those areas and to act as a bank for central banks. The head office of BIS is located in ___.
a) Hong Kong
b) Switzerland
c)China
d) Mexico
e) Australia
15. National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country. To be operational by the year end, the headquarter of NIIF will be located in ____.
a) Mumbai
b) New Delhi
c) Bengaluru
d) Chennai
e) Kolkata
16. Special Drawing Rights (SDRs) are international foreign exchange reserve assets issued by
a) World Bank
b) WTO
c) ADB
d) IMF
e) None of these
17. Which of the following types of accounts are known as "Demat Accounts"?
a) Zero Balance Accounts
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there
c) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility
e) None of the above
18. According to the Socio Economic and Caste Census (SECC) which among the following states in India has highest per cent of Urban BPL households?
a) Bihar
b) Uttar Pradesh
c) Manipur
d) Jharkhand
e) Sikkim
19. Payment of a cheque may be countermanded by the ___
a) Payee
b) Drawer
c) True owner
d) Drawee
e) None of these
20. Union Government has decided to set up a Bank Board Bureau (BBB) to monitor key performance indicators of two dozen public sector banks (PSBs). BBB will start functioning from ___.
a) 31st December 2015
b) 1st January 2016
c) 31st March 2016
d) 1st April 2016
e) 1st June 2016
21. Identify the well known person related to Banking field in India from the following?
a) Mrs. Meira Kumar
b) Mrs. Kiran Shaw
c) Mr. Arun Jaitley
d) Dr. D Subbarao
e) All of the above
22. A fixed deposit receipt is kept with the bank for its safety, is known as ___?
a) Safe custody
b) Safe deposit
c) Locker
d) Valid safe deposit
e) None of the above
23. Reserve Bank will issue ___bank notes with 3 additional features to aid the visually impaired in identification.
a) Rs. 500 and Rs 1,000
b) Rs. 100 and Rs. 500
c) Rs. 50 and Rs. 100
d) Rs. 10 and Rs. 100
e) None of these
24. Simply click a card launched by SBI special for ____.
a) Cash Transfer
b) Online Shopping
c) Pay Utility Bills
d) For Home Loans
e) None of these
25. Banking Companies are prohibited under Sec 8 of banking Regulation Act to sell and purchase securities. Yet Banks are selling securities (of the customer) which are under pledge as permitted by:
a) Indian Contract Act
b) SARFAESI Act
c) Government Notification
d) Banking Regulation Act
e) None of these
26. Hypothecation is:
a) Atransaction of conditional sale
b) A legal transaction whereby goods may be made available as security for a debt
c) Transfer of ownership by the borrower to the lender
d) Either a or b
e) None of the above
27. Mortgage is a:
a) Security on movable property for a loan
b) Security on immovable property for a loan
c) Concession on immovable property
d) Facility on immovable property
e) Security on loan sanctioned against fixed deposits
28. What is the minimum amount to be invested under Sukanya Samriddhi Scheme?
a) Rs. 500
b) Rs. 1000
c) Rs. 1500
d) No ceiling
e) Rs. 100
29. The Main activity of the Financial Intelligence Unit India (FIUIND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs
30. The SARFAESI Act 2002 empowers Banks / Financial Institutions to recover their non-performing assets (bad loans) without the intervention of the Court. In "SARFAESI" second "S" stands for ____.
a) Securitisation
b) Security
c) Statutory
d) Share
e) Saving
31. The main function of an Asset Management Company is to:
a) hold the securities of various schemes
b) manage the funds by making investments in various types of securities
c) hold its property for the benefit of the unit holders
d) act on behalf of SEBI
e) All the above
32. Global Rating Agency Fitch has downgraded Viability Rating (VR) by one notch to 'bb' of which among the following banks?
a) Bank of Baroda
b) State Bank of India
c) Punjab National Bank
d) Canara Bank
e) IDBI Bank
33. The Banking Codes and Standards Board of India was registered on 18th February, 2006 under which of the following RBI Act?
a) Banking Regulation Act
b) The Societies Registration Act, 1860
c) Cooperative Societies Act
d) None of the above
e) All the above
34. As per the Banking Ombudsman Scheme, any person can file a complaint before the Banking Ombudsman, if the satisfied reply is not received from the bank within a period of ____.
a) one month
b) three months
c) two months
d) six months
e) None
35. CIBIL as a credit bureau caters to:
a) Consumer segments
b) Commercial segments
c) Both commercial and consumer segments
d) Nationalized Banks only
e) Private Banks only
36. Infusion of liquidity, by RBI, is done through _____ from / to banks under a _____ transaction.
a) borrowing, repo
b) borrowing, reverse repo
c) lending, repo
d) lending, reverse repo
e) None of the above
37. Some banks are financing big projects like construction of roads, bridges etc. Financing such projects means banks are helping exactly in:
a) Infrastructural Development
b) Project Management
c) Developing core sector Industry
d) Financial Inclusion
e) All of the above
38. A rate of exchange established between any two currencies on the basis of the respective quotation of each currency in terms of a third currency is known as:
a) Cross rate
b) Merchant rate
c) Wash rate
d) Composite rate
e) None of the above
ANSWERS:
1) c; 2) d; 3) c; 4) d; 5) c; 6) b; 7) a; 8) c; 9) d; 10) b;
11) a; 12) d; 13) e; 14) b; 15) a; 16) d; 17) c; 18) c; 19) b; 20) d;
21) d; 22) a; 23) a; 24) b; 25) d; 26) b; 27) b; 28) b; 29) b; 30) b;
31) b; 32) c; 33) b; 34) a; 35) c; 36) c; 37) a; 38) a.
a) Rs. 200 crore
b) Rs. 300 crore
c) Rs. 500 crore
d) Rs. 600 crore
e) None of these
2. Many times we read a term "ECB" in financial newspapers. What is the full form of ECB?
a) Essential Commercial Borrowing
b) Essential Credit and Borrowing
c) External Credit and Business
d) External Commercial Borrowing
e) None of the above
3. Which among the following banks has launched "Dhanchayat" an educational film to raise awareness on the dangers of borrowing money from unorganised sources?
a) Axis
b) ICICI
c) HDFC
d) SBI
e) YES
4. What is the maximum monthly pension for the subscribers under Atal Pension Yojana?
a) Rs 2000
b) Rs 3000
c) Rs 4000
d) Rs 5000
e) None of these
5. If a company which is not a non - banking financial company wants to collect public deposits, it is governed by ___ Act:
a) RBI Act 1934
b) Banking companies Act
c) Companies Act 1956
d) Central Government
e) None of the above
6. Which among the following has launched a Smart Humsafar Plan, a unique plan which offers multiple benefits of savings and insurance cover for husband and wife under a single policy?
a) ICICI Prudential
b) SBI Life
c) NIACL
d) LIC
e) HDFC ERGO
7. Which country launched world first Facial recognition ATM?
a) China
b) Japan
c) US
d) Canada
e) Brazil
8. Which type of machine is used by Business Correspondents?
a) Micro ATMs
b) POS
c) Biometric Card Reader
d) Solar empowered
e) Water resistant
9. Which among the following bank has tied up with Chinese ecommerce giant Alibaba to provide easier trade finance to small and medium enterprises (SMEs) in the country?
a) HDFC Bank
b) SBI Bank
c) Canara Bank
d) ICICI Bank
e) Axis Bank
10. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate in ____ sector.
a) private, public
b) public, private
c) either a or b
d) cooperative, NBFC
e) None of the above
11. What is the name of the platform launched by State Bank of India (SBI) that enables customers to book their foreign exchange transactions online?
a) SBI eforex
b) SBI emoney
c) SBI eonline
d) SBI eshare
e) SBI ebuddy
12. In CDR, "R" stands for ____.
a) Ratio
b) Receipt
c) Regulation
d) Restructuring
e) Reserve
13. Which of the following is not a function of General Insurance?
a) Cattle Insurance
b) Crop Insurance
c) Marine Insurance
d) Fire Insurance
e) None of the above
14. The Bank for International Settlements (BIS) is the world's oldest international financial organization established on 17 May 1930. The mission of the BIS is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation
in those areas and to act as a bank for central banks. The head office of BIS is located in ___.
a) Hong Kong
b) Switzerland
c)China
d) Mexico
e) Australia
15. National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country. To be operational by the year end, the headquarter of NIIF will be located in ____.
a) Mumbai
b) New Delhi
c) Bengaluru
d) Chennai
e) Kolkata
16. Special Drawing Rights (SDRs) are international foreign exchange reserve assets issued by
a) World Bank
b) WTO
c) ADB
d) IMF
e) None of these
17. Which of the following types of accounts are known as "Demat Accounts"?
a) Zero Balance Accounts
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there
c) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility
e) None of the above
18. According to the Socio Economic and Caste Census (SECC) which among the following states in India has highest per cent of Urban BPL households?
a) Bihar
b) Uttar Pradesh
c) Manipur
d) Jharkhand
e) Sikkim
19. Payment of a cheque may be countermanded by the ___
a) Payee
b) Drawer
c) True owner
d) Drawee
e) None of these
20. Union Government has decided to set up a Bank Board Bureau (BBB) to monitor key performance indicators of two dozen public sector banks (PSBs). BBB will start functioning from ___.
a) 31st December 2015
b) 1st January 2016
c) 31st March 2016
d) 1st April 2016
e) 1st June 2016
21. Identify the well known person related to Banking field in India from the following?
a) Mrs. Meira Kumar
b) Mrs. Kiran Shaw
c) Mr. Arun Jaitley
d) Dr. D Subbarao
e) All of the above
22. A fixed deposit receipt is kept with the bank for its safety, is known as ___?
a) Safe custody
b) Safe deposit
c) Locker
d) Valid safe deposit
e) None of the above
23. Reserve Bank will issue ___bank notes with 3 additional features to aid the visually impaired in identification.
a) Rs. 500 and Rs 1,000
b) Rs. 100 and Rs. 500
c) Rs. 50 and Rs. 100
d) Rs. 10 and Rs. 100
e) None of these
24. Simply click a card launched by SBI special for ____.
a) Cash Transfer
b) Online Shopping
c) Pay Utility Bills
d) For Home Loans
e) None of these
25. Banking Companies are prohibited under Sec 8 of banking Regulation Act to sell and purchase securities. Yet Banks are selling securities (of the customer) which are under pledge as permitted by:
a) Indian Contract Act
b) SARFAESI Act
c) Government Notification
d) Banking Regulation Act
e) None of these
26. Hypothecation is:
a) Atransaction of conditional sale
b) A legal transaction whereby goods may be made available as security for a debt
c) Transfer of ownership by the borrower to the lender
d) Either a or b
e) None of the above
27. Mortgage is a:
a) Security on movable property for a loan
b) Security on immovable property for a loan
c) Concession on immovable property
d) Facility on immovable property
e) Security on loan sanctioned against fixed deposits
28. What is the minimum amount to be invested under Sukanya Samriddhi Scheme?
a) Rs. 500
b) Rs. 1000
c) Rs. 1500
d) No ceiling
e) Rs. 100
29. The Main activity of the Financial Intelligence Unit India (FIUIND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs
30. The SARFAESI Act 2002 empowers Banks / Financial Institutions to recover their non-performing assets (bad loans) without the intervention of the Court. In "SARFAESI" second "S" stands for ____.
a) Securitisation
b) Security
c) Statutory
d) Share
e) Saving
31. The main function of an Asset Management Company is to:
a) hold the securities of various schemes
b) manage the funds by making investments in various types of securities
c) hold its property for the benefit of the unit holders
d) act on behalf of SEBI
e) All the above
32. Global Rating Agency Fitch has downgraded Viability Rating (VR) by one notch to 'bb' of which among the following banks?
a) Bank of Baroda
b) State Bank of India
c) Punjab National Bank
d) Canara Bank
e) IDBI Bank
33. The Banking Codes and Standards Board of India was registered on 18th February, 2006 under which of the following RBI Act?
a) Banking Regulation Act
b) The Societies Registration Act, 1860
c) Cooperative Societies Act
d) None of the above
e) All the above
34. As per the Banking Ombudsman Scheme, any person can file a complaint before the Banking Ombudsman, if the satisfied reply is not received from the bank within a period of ____.
a) one month
b) three months
c) two months
d) six months
e) None
35. CIBIL as a credit bureau caters to:
a) Consumer segments
b) Commercial segments
c) Both commercial and consumer segments
d) Nationalized Banks only
e) Private Banks only
36. Infusion of liquidity, by RBI, is done through _____ from / to banks under a _____ transaction.
a) borrowing, repo
b) borrowing, reverse repo
c) lending, repo
d) lending, reverse repo
e) None of the above
37. Some banks are financing big projects like construction of roads, bridges etc. Financing such projects means banks are helping exactly in:
a) Infrastructural Development
b) Project Management
c) Developing core sector Industry
d) Financial Inclusion
e) All of the above
38. A rate of exchange established between any two currencies on the basis of the respective quotation of each currency in terms of a third currency is known as:
a) Cross rate
b) Merchant rate
c) Wash rate
d) Composite rate
e) None of the above
ANSWERS:
1) c; 2) d; 3) c; 4) d; 5) c; 6) b; 7) a; 8) c; 9) d; 10) b;
11) a; 12) d; 13) e; 14) b; 15) a; 16) d; 17) c; 18) c; 19) b; 20) d;
21) d; 22) a; 23) a; 24) b; 25) d; 26) b; 27) b; 28) b; 29) b; 30) b;
31) b; 32) c; 33) b; 34) a; 35) c; 36) c; 37) a; 38) a.
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