Banking in India

Public Sector Asset Rehabilitation Agency (PARA)

February 15, 2017

The Public Sector Asset Rehabilitation Agency (PARA) colloquially called “Bad Bank” is a proposed agency to assume the Non-Performing Assets (NPA) of public sector banks in India and to deal with the recovery of the bad loans. This agency has been proposed in Economic Survey 2016-17. The...

PJ Nayak Committee Report and PSBs

September 13, 2015

The government has decided to separate the roles of Chairman and Managing Director CMD in public sector banks. This comes in wake of the recommendations made by P J Nayak Committee. The Committee had underlined its recommendations with the fact that empowerment of bank boards is vital....

ON Financial Stability Report

September 13, 2015

Indian economy has withstood the global pressures with ease at a time when sluggishness was apparent in European and Japanese economic fronts. It is the sharp decline in oil prices coupled with declining energy prices which have made the conditions favourable and boosted dividend for India. All...

Difference Between Payment Banks and Small Finance Banks

June 23, 2015

The following table gives a crisp overview of small finance banks and Payment banks. Difference Small Bank Payments Bank Eligibility Professionals with 10 years in financial services or promoter group with 5 year track record Card Issuers, Finance Companies, Business Correspondents, Telecom Companies, Retailers etc. Capital Requirement...

Is SBI a nationalized bank?

April 30, 2015

SBI got birth in the British Era. Its first parents were three presidency banks viz. Bank of Calcutta (later Bank of Bengal), Bank of Bombay and the Bank of Madras. In 1921, these three presidency banks were merged in one entity called “Imperial Bank of India”. The...

Basic Knowledge about Debit Card and Credit Card

April 28, 2015

A debit card is a plastic card that provides a cardholder electronic access to his / her bank account. It can be used to withdraw funds or to make purchases using money in the bank account. Since a debit card is essentially linked to a checking account...

Bancassurance

April 27, 2015

Bancassurance or Bank Insurance Model refers to the distribution of the insurance and related financial products by the Banks whose main business is NOT insurance. So, simply Bancassurance, i.e., banc + assurance, refers to banks selling the insurance products In India, ever since espousing of financial reforms...

What is Asset Liability Mismatch?

April 27, 2015

Asset Liability Mismatch or ALM is considered to be a comprehensive and dynamical framework for measurement, monitoring and managing the market risk of the Banks. Asset Liability Mismatch arises in the following situation: The Primary source of funds for the banks is deposits, and most deposts have...

India’s Credit Rating Agencies

April 27, 2015

The Credit rating market taken a definite shape in India after the SEBI made it mandatory for any debenture that has maturity of more than 18 months maturity. There are four domestic credit ratings in India for standardized approach for credit risk calculation. They have been discussed...

What are Risk Weighted Assets?

April 27, 2015

The Risk Weighted Assets (RWA) refer to the fund based assets such as Cash, Loans, Investments and other assets.  They are the total assets owned by the Banks, however, the value of each asset is assigned a risk weight (for example 100% for corporate loans and 50% for...

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