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DENA Bank recruits 300 Probationary Officers Bank of Baroda PO recruitment through Baroda Manipal School of Banking LAKSHMI VILAS BANK - PROBATIONARY OFFICER RECRUITMENT - LAST DATE TO APPLY 17.04.2017 PARTNERS/INVESTORS REQUIRED CONTACT MOHAN-97890 77090 bankexamcracking.com WELCOMES YOU. Axis Bank started the recruitment process through Axis Bank Young Banker Programme

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External Commercial Borrowings (ECBs)

Any money that has been borrowed from foreign sources for financing the commercial activities in India are called External Commercial Borrowings. The Government of India permits ECBs as a source of finance for Indian Corporates for expansion of existing capacity as well as for fresh investment.

The ECBs are defined as money borrowed from foreign resources including the following:

  • Commercial bank loans
  • Buyers???????? credit and suppliers???????? credit
  • Securitised instruments such as Floating Rate Notes and Fixed Rate Bonds etc.
  • Credit from official export credit agencies and commercial borrowings from the private sector window of Multilateral Financial Institutions such as International Finance Corporation (Washington), ADB, AFIC, CDC, etc.

Objective of ECB

Government permits the ECBs as an additional source of financing for expanding the existing capacity as well as for fresh investments. The ECB policy of the Government seeks to emphasize the priority of investing in the infrastructure and core sectors such as Power, telecom, Railways, Roads, Urban infrastructure etc. There is also emphasis on the need of capital for Small and Medium scale enterprises.

ECB ????Vs FDI

ECB means any kind of funding other than Equity.????If the foreign money is used to finance the Equity Capital, it would be termed as Foreign Direct Investment. The ECB should satisfy the ECB regulations stipulated by the Government or its agencies such as RBI. The Bonds, Credit notes, Asset Backed Securities, Mortgage Backed Securities or anything of that nature are included in ECB. The following are not included in the ECBs:

  • Any Investment made towards core capital of an organization such as equity shares, convertible preference shares or convertible debentures.
  • ????Any other direct capital is not allowed in ECB.

How to access ECB

External Commercial Borrowing in India can be accessed via two routes viz.????Automatic Route and Approval Route. Under Automatic Route approval of the Reserve Bank or the Government of India not required.

Benefits to Borrower

  • ECB funding helps in many purposes such as paying to suppliers in other countries etc that may not be available in India.
  • The cost of funds borrowed from external sources at times is cheaper than domestic funds.
  • The borrower can diversify the investor base. It opens the international market for the borrowers.

Effects on Economy

  • TheGovernment of India has a controlled policy on ECBs and via its policies, it would like to make companies use the ECB to primarily fund the infrastructure and SME sector of the economy.
  • The benefit for the economy is that the low cost international funds????can improve inflow of more money in these sectors.
  • Indian companies get loans through ECB at lower cost and lower their cost of borrowing and cost of production which increases their competitiveness in international market.
  • The External commercial borrowings increase the external debt of the country. Therefore it has to be matched with growth of foreign exchange reserves in the country so as to maintain solvency.
  • Increase in ECB is accompanied with increase in currency risk as there will be depreciation in rupee, which will lead to increased burden on the borrower as the value of the rupee depreciates.

Regional Rural Banks

On the basis of Narasimham????committee????????s recommendations, a Regional Rural Banks Ordinance was promulgated in September 1975, which was replaced by the Regional Rural Banks Act 1976.

The RRBs were owned by three entities with their respective shares as follows:

  • Central Government ???????? 50%
  • State government ???????? 15%
  • Sponsor bank ???????? 35%

Regional Rural Banks were conceived as low cost institutions having a rural ethos, local feel and pro poor focus. Every bank was to be sponsored by a ???????Public Sector Bank”.

Regional Rural Banks are regulated by National Bank for Agriculture and Rural Development (NABARD).

Problems with Regional Rural Banks

  • The original assumptions were belied as within a very short time, most banks were making losses.
  • The RRB concept was based upon the policy that they would lend only to the weaker sections of rural society, charging lower interest rates, opening branches in remote and rural areas and keep a low cost profile.
  • The Khusrau Committee of 1989, noted that the weaknesses of RRBs are endemic to the system and non-viability is built into it, and the only option was to merge the RRBs with the sponsor banks.
  • The objective of serving the weaker sections effectively could be achieved only by self-sustaining credit institutions. RRBs were finding themselves unable to sustain because of the mounting losses due to imprudent commercial policy.
  • Thus, Khusrau Committee (aka Agricultural Credit Review Committee) said that the RRBs have no justifiable cause for continuance and recommended their mergers with sponsor banks. But by that time, the branch network had expanded so large that it would be political unwise for the government to merge the RRBs with sponsor Banks.

Recommendations of Narsimham Committee on RRBs

  • The Narsimham Committee in 1990s also reiterated that the RRBs should be merged with the sponsor banks.
  • Regional Rural Banks (Amendment) Act, 2015 – Key Facts

    Authorised capital: This amendment ????increases the authorised capital of each Regional Rural Bank (RRB) from Rs 5 crore to Rs 2000 crore divided into Rs 200 crore of fully paid share of Rs 10 each. As per the parent Act the Rs 5 crore share capital of RRBs is split into 5 lakh shares of Rs 100 each.

  • Issued capital: It also provides that the authorised capital issued by any RRB????????s shall not be reduced below Rs 1 crore and shares in all cases to be fully paid up shares of Rs 10 each. Shareholding:
  • The Bill allows RRBs to raise capital from sources other than the central and state governments, and sponsor banks.
  • Board of directors: The Bill adds provision that any person who is a director of an RRB is not eligible to be on the Board of Directors of another RRB. It also mentions that directors will be elected by shareholders based on the total amount of equity share capital issued to such shareholders.
  • Tenure of directors: The bill raises the tenure of directors to 3 years from existing 2 years. The Bill also states that no director can hold office for a total period exceeding six years.

On 31 March 2016, there were 56 RRBs (post-merger) covering 525 districts with a network of 14,494 branches.



Comparison: SARFAESI Act & Amendment Bill 2016

It will modify the following four Acts:

1) SARFAESI Act, 2002,
2) The Recovery of Debts due to Banks and Financial Institutions Act, 1993,
3) The Indian Stamp Act, 1899; &
4) The Depositories Act, 1996.


S4A – A Discussion

  • The recent Scheme for Sustainable Structuring of Stressed Assets (S4A) by Reserve Bank of India can curb fresh NPA slippages, but has limited applicability It will help weak borrowers with revivable business models:
  • S4A is yet another tool provided to banks to tackle the growing challenge of stressed assets emanating from loans given to large corporates turning bad.
  • This is an improvisation over the two other tools announced by the RBI in the past 18 months to address asset quality challenges at banks:
  • structuring of project loans under the 5:25 scheme, and strategic debt restructuring (SDR) and could help banks limit fresh slippages to non-performing assets (NPAs) from large corporate exposures.
  • It is estimated that the stressed assets in the Indian banking system will touch a high of ~Rs 8 lakh crore by end of the current fiscal.
  • S4A envisages the determination of a sustainable debt level for stressed borrowers, and bifurcation of outstanding debt into sustainable debt and equity/quasi-equity instruments, which are expected to provide upside to lenders when the borrower turns around. It will cover projects that have started commercial operations and have outstanding loan of over Rs 500 crore.
  • It enhances the integrity and transparency of the resolution process through the appointment of an external agency for technical evaluation and also oversight of an independent committee comprising experts.
  • The 5:25 and SDR schemes have had their challenges which has limited their application across a larger set of stressed assets. The key challenge with 5:25 is that banks which structured loans under the scheme by stretching repayment periods had to mandatorily protect the net present value (NPV) of the loans refinanced.
  • And under the SDR scheme, banks had to take majority stake (51%) in the stressed company along with management control and also find a new buyer within a short span of 18 months from the reference date, failing which the asset is classified as a non-performing one. The S4A scheme partially addresses the challenges of both the 5:25 scheme and SDR.

Advantages of S4A

  • The relief provided by S4A is on the following lines: ??????? Unlike in 5:25, where banks could not take a haircut after structuring, S4A permits banks to do so by converting the unviable portion of debt to equity. ??????? Unlike in SDR, after conversion to equity, banks do not have a find a new buyer in any defined period of time. This provides a longer timeframe for turnaround and provides the bank an opportunity to benefit from an increase in equity valuation. ??????? S4A incentivises existing promoters to opt for this scheme as they can continue to hold majority stake. Further, banks have the option of holding optionally convertible debentures instead of equity, which might be more preferred.

Limitations of S4A

  • S4A scheme cannot be applied to all cases of stressed exposure. ??????? It can be applied to only operational projects and not to projects under construction. ??????? It does not allow for any rescheduling of original tenure of repayment or repricing of debt. ??????? Sustainable debt under the scheme — which needs to be at least 50% of total debt — is derived based only on the ability of current cash flows to cover debt repayment. It cannot factor in incremental cash flows that could accrue as the external environment improves. Given the significantly low level of current cash flows of most highly leveraged companies in the vulnerable sectors such as infrastructure and iron & steel, the number of stressed corporate loan accounts which could benefit from this scheme could be very low. Yet, despite the limitations, if implemented successfully, the S4A scheme can strengthen the ability of lenders to deal with stressed assets, which have potential to be revived by providing an avenue for reworking the financial structure of entities facing genuine difficulties.

S4A – Scheme for Sustainable Structuring of Stressed Assets


In order to strengthen the lenders???????? ability to deal with stressed assets, Reserve Bank of India has been issuing, from time to time, guidelines and prudential norms on stressed assets resolution by regulated lenders.

In order to ensure that adequate deep financial restructuring is done to give projects a chance of sustained revival, the Reserve Bank, after due consultation with banks, has decided to facilitate the resolution of large accounts, which satisfy the conditions set out in the following paragraphs.

Eligible Accounts

For being eligible under the scheme, the account????should meet all the following conditions:

(i) The project has commenced commercial operations;

(ii) The aggregate exposure (including accrued interest) of all institutional lenders in the account is more than Rs.500 crore (including Rupee loans, Foreign Currency loans/External Commercial Borrowings,);

(iii) The debt meets the test of sustainability as outlined in????below.

Debt Sustainability

A debt level will be deemed sustainable if the Joint Lenders Forum (JLF)/Consortium of lenders/bank conclude through independent techno-economic viability (TEV) that debt of that principal value amongst the current funded/non-funded liabilities owed to institutional lenders can be serviced over the same tenor as that of the existing facilities even if the future cash flows remain at their current level. For this scheme to apply, sustainable debt should not be less than 50 percent of current funded liabilities. .

Sustainable Debt

The resolution plan may involve one of the following options with regard to the post-resolution ownership of the borrowing entity:

(a) The current promoter continues to hold majority of the shares or shares required to have control;

(b) The current promoter has been replaced with a new promoter, in one of the following ways:

  1. Through conversion of a part of the debt into equity under SDR mechanism which is thereafter sold to a new promoter;
  2. In the manner contemplated as per Prudential Norms on Change in Ownership of Borrowing Entities (Outside SDR Scheme);

(c) The lenders have acquired majority shareholding in the entity through conversion of debt into equity either under SDR or otherwise and

  1. allow the current management to continue or
  2. hand over management to another agency/professionals under an operate and manage contract.

Note: Where malfeasance on the part of the promoter has been established, through a forensic audit or otherwise, this scheme shall not be applicable if there is no change in promoter or the management is vested in the delinquent promoter.

In any of the circumstances mentioned above, the JLF/consortium/bank shall, after an independent TEV, bifurcate the current dues of the borrower into Part A and Part B as described below;

(a) Determine the level of debt (including new funding required to be sanctioned within next six months and non-funded credit facilities crystallising within next 6 months) that can be serviced (both interest and principal) within the respective residual maturities of existing debt, from all sources, based on the cash flows available from the current as well as immediately prospective (not more than six months) level of operations. For this purpose, free cash flows (i.e., cash flow from operations minus committed capital expenditure) available for servicing debt as per latest audited/reviewed financial statement will be considered. Where there is more than one debt facility, the maturity profile of each facility shall be that which exists on the date of finalising this resolution plan. For the purpose of determining the level of debt that can be serviced, the assessed free cash flow shall be allocated to servicing each existing debt facility in the order in which its servicing falls due. The level of debt so determined will be referred to as Part A in these guidelines.

(b) The difference between the aggregate current outstanding debt, from all sources, and Part A will be referred to as Part B in these guidelines.

(c) The security position of lenders will, however, not be diluted and Part A portion of loan will continue to have at least the same amount of security cover as was available prior to this resolution.

The Resolution Plan

The Resolution Plan shall have the following features:

  1. There shall be no fresh moratorium granted on interest or principal repayment for servicing of Part A.
  2. There shall not be any extension of the repayment schedule or reduction in the interest rate for servicing of Part A, as compared to repayment schedule and interest rate prior to this resolution.
  3. Part B shall be converted into equity/redeemable cumulative optionally convertible preference shares. However, in cases where the resolution plan does not involve change in promoter, banks may, at their discretion, also convert a portion of Part B into optionally convertible debentures. All such instruments will continue to be referred to as Part B instruments in this circular for ease of reference.

For RBI circular click here

GRAF – Governance, Reward and Accountability Framework


The Bank Boards Bureau (BBB) has evolved a Governance, Reward and Accountability Framework (GRAF) ???????? an elaborative roadmap for Public Sector Banks (PSBs) to make them more competitive and to ensure that they have the ability to compete successfully against private sector banks, small finance and payments banks, foreign banks and non-banking finance companies; and to prepare them for possible mergers in future. The roadmap was chalked out by Vinod Rai, Chairman of BBB on April 14, 2017.

GRAF Methodology:????

GRAF will ensure that the best corporate governance practices are followed by the public sector banks while functioning strictly according to the various prevailing central laws, including the Companies Act, 2013, Banking Regulation Act, 1949, and Securities and Exchange Board of India (listing obligations and disclosure requirements) Regulations, 2015. Governance model of the public sector banks would be upgraded as recommended by the Basel Committee by incorporating a code of conduct for the bank officials, compensation reforms and rating systems. The BBB????????s GRAF move comes in the context of PSBs facing challenges on various fronts, including competition from new entrants, aggressive private banks and NBFCs eating into their market share on the loans front, and continuously increasing non-performing assets (NPAs) called ???????Bad Loans??????? in the layman????????s language.

Bank Boards Bureau (BBB):????

The BBB was operationalized after Finance Minister Arun Jaitley called for PSBs to be competitive, in his Budget speech of 2016-17 to make recommendations for the selection of the chiefs of PSBs and financial institutions and help them develop strategies and capital-raising plans. The Bureau started functioning from April 01, 2016 as an autonomous recommendatory body of Government of India housed in RBI’s Central Office, Mumbai.BBB has evolved a code of conduct and ethics that can be enforced across all PSBs to ensure the right behaviour. It has also come up with compensation reforms so that best practices can be introduced in PSBs on the lines already prevalent in Central Public Sector Enterprises. The BBB has evolved a relative performance rating system to assess the performance of PSBs, its directors and employees; and performance evaluation system based on which decision-making for the extension/termination of a whole-time director. BBB would also be advising the government on evolving training and development programmes for management personnel in PSBs and help banks develop a leadership succession plan.

DENA Bank PO through Amity University

DENA Bank PO through Amity University

Dena Bank is looking for candidates with young, energetic and innovative minds who can be imparted with the necessary knowledge and skills required to be good all-round bankers through a 12 (Twelve) months Post Graduate Certificate in Banking and Finance course in Amity University including 9 months on-campus program and three months on-the-job training programme in Dena Bank Branch. On completion of these processes, the candidates will be offered appointment in the Bank as Probationary Officer in Junior Management Grade Scale-I.

Selection : Candidates shall be selected through a selection process consisting of online exam (objective + descriptive) followed by Group Discussions and Personal Interviews. Selected candidates will attend one year intensive training programme under Post Graduate Diploma in Banking & Finance at Amity University as above Admission to the twelve months Post Graduate Certificate Course in Banking and Finance from Amity University to be conducted at the Amity University, NOIDA comes with an assurance of a full-fledged Banking career with Dena Bank on successful completion of the course and on-the-job training of three months in Dena Bank Branch.

Schedule of Events Dates Start date for Online Registration 18.04.2017 Online Payment of Application Fees 18.04.2017 to 09.05.2017 Last date for Online Registration 09.05.2017 Download of Call letter for Examination After 30.05.2017 Date of Examination (Tentative) 11.06.2017

STUDENT INTAKE????The total number of Student intake is 300 and is provisional which may vary depending upon future needs of the Bank & availability of candidates under the respective category.

For detailed official notification click here



Bank of Baroda PO – Baroda Manipal School of Banking


Admission to Baroda Manipal School of Banking
Bank of Baroda is looking for young, energetic, and innovative minds who can be imparted with the necessary knowledge and skills required to be good all-round bankers through a -9- (nine) months Post Graduate Certificate in Banking and Finance course in Baroda Manipal School of Banking.

The course consists of -9- months on campus program, on completion of which the candidate would be awarded a Post Graduate Certificate in Banking & Finance and will be offered appointment in the Bank as????Probationary Officer in Junior Management Grade / Scale-I.

However, immediately after joining the Bank, a -3- (three) months Work Integrated Learning (WIL) in the form of On the Job Training will have to be carried out by the candidate at a Bank of Baroda branch, the completion of which will lead to the award of a Post-Graduate Diploma in Banking & Finance by Manipal university.

Candidates shall be selected through a selection process consisting of online exam (objective + descriptive) followed by Psychometric Assessment, Group Discussion (GD) and Personal Interview (PI).

Admission to the -9- (nine) months Post Graduate Certificate in Banking and Finance course from Manipal University to be conducted at the Baroda Manipal school of Banking comes with the assurance of a full-fledged Banking career with Bank of Baroda on successful completion of the course.


Schedule of Events Dates
Start date for Online Registration 01.04.2017
Online Payment of Application Fees 01.04.2017 to 01.05.2017
Last date for Online Registration 01.05.2017
Download of Call letter for Examination 12.05.2017
Date of Examination (Tentative) 27.05.2017


3 batches of students will be inducted in Baroda Manipal School of Banking through this current selection exercise for 2017-18 (April 2017 to March 2018). The intake of students in each batch will be decided by the bank, as per the requirement.


  1. Qualification (As on 01.05.2017)????- Degree (Graduation) with minimum 55% (50% for SC/ST/PWD) marks in any discipline from a recognized University OR any equivalent qualification as such recognized by Central Government.


  1. Age (As on 01.04.2017) Minimum 20 years- Maximum 28 years i.e????a candidate must have been born not earlier than 02.04.1989 and not later than 01.04.1997 (both dates inclusive)

Candidates shall be selected by BOB through a selection process consisting of an (open) online exam followed by Psychometric Assessment, Group Discussion and Interview.
The selection process aims at getting applicants who are likely to succeed at various roles in the Bank. The endeavour is to select people who are bright, have good communication skills (both oral and written), are dedicated, can work effectively in teams, are passionate about their career goals and who display integrity and a positive attitude.

Type SL Name of the Test No of Question Max. Marks Time
Objective Test 1 Reasoning 50 50 2 Hour
2 Quantitative 50 50
3 General Awareness (related to Banking Industry) 50 50
4 English Language 50 50
Descriptive Test 5 English Language 02 50 30 Minutes

Candidates are required to obtain a minimum score in each test and also a minimum total score in the online test to be shortlisted for Psychometric Assessment, Group Discussion & Interview. Candidates will be shortlisted for Psychometric Assessment, Group Discussion & Interview depending on the number of vacancies, cut-off in each test and total marks secured in the online test as decided by the Bank

There will be descriptive paper for test of writing skill in English which has to be completed in online mode only. The descriptive paper of only such candidates will be assessed who secure a minimum qualifying mark in the objective test.

Wrong answers in objective test will attract negative marks (1/4th of marks assigned to that question) for the online test. Along with the call letters, information handout and a sample test shall also be uploaded on the site which candidates can take to familiarize themselves with the nature of Test & Questions.

Psychometric Assessment, Group Discussion and Personal Interview

The aggregate marks of candidates qualifying in the Online Test will be arranged in descending order in each category and the candidates in the order of merit, subject to????approximately 4????times the number of intake in each category, will be called for Psychometric Assessment, Group Discussion and Interview. The qualifying marks in Psychometric Assessment, Group Discussion & Interview will be as decided by the Bank.

The Psychometric Assessment will be qualifying in nature. The final merit list for selection will be on the basis of performance in Online Test (objective + descriptive), Psychometric Assessment, Group Discussion (GD) and Interview.

Each and every short listed candidates for Group Discussion & Interview has to appear for Psychometric Assessment failing which, candidature of such candidate will be cancelled



The fees for this Course will be Rs. 3.45/- lakhs (all inclusive of boarding, Lodging and course fees, other fees, etc.) plus service taxes, as applicable to be paid by the student.

Apart from the above course fees, the exam fees for undergoing various Certification exams viz. NISM (Mutual Funds) and NISM (Depository services) as mandated under the course will have to be borne by the candidates, as per the fees charged by NISM from time to time for conducting these Certification exams. Currently, the fees for NISM (Mutual Funds) and NISM (Depository services) certification exams comes to Rs. 2500/- per candidate.


Students can finance the course fees by availing an Education Loan which will be granted by Bank of Baroda at a highly concessional rate of interest of 8% p.a. Students can therefore obtain a high quality specialized course in Banking and Finance without any monetary burden on them and fully financed by the Bank.

The EMIs for the loan would start on completion of the course duration (i.e. one year from admission). There would be no recovery of EMIs or interest during the training period and the interest accrued during this period would be recovered along with the normal EMIs. The EMIs are spread over a period of 84 months (7 years) to ensure that there is minimal impact in the monthly earnings of the PO.

For official notification click here







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