2G scam
commonwealth scam
tunisia revolution
IPL : Overdose of cricket

me4fms Says

Puys any link for general awareness in pdf format ( not saying abt pratiyogita D ) any other source where we can find current affairs in synopsis form ??

TheOnlineGK
open the desired current affair link..at the end u'll find download option...
hope this will help...

double post...

SHOVIK SIR, can u explain the following o me in simple language.

what is priority sector(in India) RBI's policy towards it

RBI policy to eradicate poverty

diff B/W banking and finance

negotiable instrument acts

This topic was for XLRI PMIR this year :

Economic Development in India- The East-West Divide

Hello,
I have read your posts your have done a fabulous job. I have applied for IIM L WMP programme(Hope u have heard abt it) I have my GD/PI, I am from telecommunication/testing background having around 4 years What sort of questions i can hope in my PI . Can you guide me .??

I do not know who you are referring to but I will reply as I have for most of the queries on this thread.

Vinay, I would suggest you go through the relevant thread on PG or search for it on the Internet. I am quite sure you would be able to find a plethora of information regarding it.

Hello,
I have read your posts your have done a fabulous job. I have applied for IIM L WMP programme(Hope u have heard abt it) I have my GD/PI, I am from telecommunication/testing background having around 4 years What sort of questions i can hope in my PI . Can you guide me .??

so would be great if u can say something about these profiles or of any other profiles which are offered

I dont think this is right thread to discuss this topic .There are plenty of Finance related threads for you to ask these queries . Nevertheless , i am posting the profiles i know and profile which i came to know from my friends :

Retail Banking- Savings Accounts/Current Accounts/Credit Cards/ Bank assurance/ Private Banking etc. This is one aspect of Banking where the focus will be more on marketing rather than finance.

Transaction Banking/Business Banking- Current Accounts/ Cash Management Services etc

Corporate Banking- This would involve giving loans to small and medium companies. Involves a mix of finance (role of Credit Analyst) and marketing (role of a Relationship Manager)

Risk Management- More or less completely finance and involves substantial number crunching. Great opportunity if you love numbers and don't really want a client facing role.

Capital Markets/Project Financing- Involves financing of very large projects both on debt side (long term loans/ syndication etc) and equity (M&A;/ Private Equity etc). Again involves a mix of Finance and Marketing

Treasury- Foreign exchange trading/ bond trading/ Correspondent Banking etc.nice job if you really like stock trading looking at international transactions or trying to anticipate the markets.

Also check this post : http://www.pagalguy.com/forum/career-discussions/25733-repository-skill-sets-pg-junta-14.html#post3163695

Another doubt

There is a specialization called general management in many colleges
Can any one tell me what exactly it is?
What are the various profiles given in this particular domain and what exactly people do who specializes in this domain

Please post in right thread

Chinas military rise
Asia's balance of power: China
How India can beat the oil crisis
How India can beat the oil crisis - Economic Times

Another doubt

There is a specialization called general management in many colleges
Can any one tell me what exactly it is?
What are the various profiles given in this particular domain and what exactly people do who specializes in this domain

Similarly, some colleges offer a specialization called Strategic management, what exactly it is, how is it different from general management

Hi Shovik

Can u please throw some light into the following financial profiles

1) Corporate and Transaction/Treasury Banking roles

2) Investment Banking(Middle end, IT and operations)

3) Debt and Equity markets (Front end)

4)Debt and Equity markets(Middle end, IT and operations)

5) Private banking and wealth management

6) Corporate finance and business development roles in FMCG companies(I guess any company be it IT also recruits from here, hope i am correct???)

Many of us associate finance with just front end investment banking and the lucrative path it is, so would be great if u can say something about these profiles or of any other profiles which are offered

Puys any link for general awareness in pdf format ( not saying abt pratiyogita D ) any other source where we can find current affairs in synopsis form ??

Dear Sir,

Can you plz throw some light on the latest army chief getting offer of 14 cr. bribe........for the truck deal!!!

Though the query is not directed to me , here are a few links that can help you get a detailed analysis of this row

1) Fresh Row Over Army Chief's Bribe Claims news.outlookindia.com and related items of this news.

2) Army Chief row raises questions The Asian Age

@Visited this thread today..wonderful info shared..thanks to everyone who contributed Kudos

Dear Sir,
These are the few Qs asked in the PIs. Kindly if u can elaborate a bit
on dese topics..
1. Diff btw functions of world bank and IMF?
2. Diff btw fiscal deficit and revenue deficit?

Hi Sudipta,

1. Check out this link for the difference - The IMF and the World Bank: How Do They Differ?

Read the headers under which they have been differentiated.
They are clubbed under the

1. Purpose
   
2. Sources & Recipients of Funds
   
3. Size and Structure
   

Check out the tabular form at the end of the article. It is well summarized.

Let me know if you have any problem.

2.

Fiscal deficit occurs when the revenue of the govt. Is less than its expenditure and
revenue deficit occurs when the actual revenue received is less than the forecasted or expected revenue. So a revenue deficit does not exactly imply a loss of revenue.

Let me know if there are any queries.

Dear Sir,
These are the few Qs asked in the PIs. Kindly if u can elaborate a bit
on dese topics..
1. Diff btw functions of world bank and IMF?
2. Diff btw fiscal deficit and revenue deficit?

Private equity consists of investors and funds that make investments directly into private companies. It is not quoted on public exchanges. It is mostly institutional investors and other investors.
There is another term associated with this - Venture Capital. You may want to go through that as well.

Dear Sir,

Can you plz throw some light on the latest army chief getting offer of 14 cr. bribe........for the truck deal!!!

pallavi70 Says

what is private equity??

Private equity consists of investors and funds that make investments directly into private companies. It is not quoted on public exchanges. It is mostly institutional investors and other investors.
There is another term associated with this - Venture Capital. You may want to go through that as well.

OrganizedChaos Says

One of the current threads - http://www.pagalguy.com/forum/prep-resources/75440-2011-12-gdpi-helpline-nitie.html

thank u...

what is private equity??

Nams242 Says

can you do one favour to me please post link of other related thread..as there are very thread so its very hard to find out ...

One of the current threads - http://www.pagalguy.com/forum/prep-resources/75440-2011-12-gdpi-helpline-nitie.html

OrganizedChaos Says

Please go through this thread and other related threads.

can you do one favour to me please post link of other related thread..as there are very thread so its very hard to find out ...

Nams242 Says

hey m new to dis site...can anyone tell me...how to prepare for Gd/Pi ....plz throw sum light on gd Topics nd recent current affairs...

Please go through this thread and other related threads.

Sorry for the late reply. But then we are having our exams.

Six Sigma - It is concept of quality. It has to do with a bit of statistics and the normal curve but basically when you achieve 3.4 defects per million or less then you have achieved six sigma quality.

JIT- It is a concept of inventory management pioneered by Toyota, where the inventory is kept low. It, thus, minimizes inventory holding cost. But there are other caveats to successful implementation of JIT like layout design, supplier relationship etc

Fish Bone Diagram - It is a tool to analyze the cause and effect of a problem. The way it is structured, it looks like a fish bone.

Hope this helps .

hey m new to dis site...can anyone tell me...how to prepare for Gd/Pi ....plz throw sum light on gd Topics nd recent current affairs...

@organizedchaos -
Can u please explain six sigma, just in time and fish bone diagram (preferably in layman's language)?

Sorry for the late reply. But then we are having our exams.

Six Sigma - It is concept of quality. It has to do with a bit of statistics and the normal curve but basically when you achieve 3.4 defects per million or less then you have achieved six sigma quality.

JIT- It is a concept of inventory management pioneered by Toyota, where the inventory is kept low. It, thus, minimizes inventory holding cost. But there are other caveats to successful implementation of JIT like layout design, supplier relationship etc

Fish Bone Diagram - It is a tool to analyze the cause and effect of a problem. The way it is structured, it looks like a fish bone.

Hope this helps .

OrganizedChaos Says

Still grappling with the crisis.

sir

please give some highlights about the union budget as how it is beneficial and what are the flaws...tried to understand but cudnt..

thank u

dhivya278 Says

What did Europe do to overcome the crisis?

Still grappling with the crisis.

What did Europe do to overcome the crisis?

hey m new to dis site...can anyone tell me...how to prepare for Gd/Pi ....

@organizedchaos -
Can u please explain six sigma, just in time and fish bone diagram (preferably in layman's language)?

hello sir..could u plz suggest some valid points abt rail budget which is going to make any difference.

UNION Budget 2012-2013

1. Overview
   
2. (+)ves
   
3. (-)ves
   

Can someone please share their perspectives about the above mentioned?

@organisedchaos-
please explain how did CDS worsen the situation in greece..

Kriti,

Credit Default Swaps did not have anything to do with worsening the Greek crisis. CDS can be used as a hedging instrument for investors who were holding Greek debts. As I had mentioned in my session, most American Banks are in trouble because they are holding a huge amount of CDS and not because they are holding Greek debts. CDS are instruments ( derivatives ) which are based on solvency.

@organisedchaos-
please explain how did CDS worsen the situation in greece..

OrganizedChaos Says

Am sorry I did not get them.

I have sent you a PM.
Please check.

Hello Shovik Sir,

I have mailed you a few PI questions and their answers.
Please check it once and let me if any corrections are needed.

Please help.

Regards,
Nilesh Sinha

Am sorry I did not get them.

Just to add to that. I will answer 2 pertinent questions.

1. Lehman Bros are investment banks. And we know IBs are not in the business of giving loans and taking deposits. So how did they get affected ?
- The loans were given away by the banks. The banks then sold the 'rights' to these loans to the IB which created investment-grade securities out of it in which others could invest. When the real estate bubble crashed, these securities ( aka mortage-backed securities ) also crashed as there were, now, no money coming from the customers ( who were paying their interests )

2. How did so many entities get affected ?
These securities by the IB were invested in by large pool of investors like banks, pension funds, hedge funds etc

Hello Shovik Sir,

I have mailed you a few PI questions and their answers.
Please check it once and let me if any corrections are needed.

Please help.

Regards,
Nilesh Sinha

These links might be of some help!

BBC NEWS Business The US sub-prime crisis in graphics
A Simple Explanation of the Subprime Crisis Part 1 - InformedTrades

Also can try explaining it in a simple way.

1. Sub prime lending means lending money to people with high credit risk. To compensate for that the lending rate is very high.

2. The real estate was doing very well in the US. The banks in US lent money to the sub prime category to encourage them to invest in property. The people got funds and the banks enjoyed a good return cos of the higher interest rate. The demand for houses was very large and the property prices appreciated thus enabling the sub prime lenders to pay back the loan. A win-win situation for everybody? Not quite!
3.At one point when the demand level stabilised the prices started coming down. People couldnt pay back the money they had borrowed and a lot of them defaulted and the banks incurred a major loss. Lehmann Brothers was one of the banks which went bankrupt!

This is just a gist of the entire crisis go through the links for a deeper understanding. :)

Just to add to that. I will answer 2 pertinent questions.

1. Lehman Bros are investment banks. And we know IBs are not in the business of giving loans and taking deposits. So how did they get affected ?
- The loans were given away by the banks. The banks then sold the 'rights' to these loans to the IB which created investment-grade securities out of it in which others could invest. When the real estate bubble crashed, these securities ( aka mortage-backed securities ) also crashed as there were, now, no money coming from the customers ( who were paying their interests )

2. How did so many entities get affected ?
These securities by the IB were invested in by large pool of investors like banks, pension funds, hedge funds etc

Hi Shovik

Can u give us a brief understanding of the subprime crisis...
Tried to Google and it and read some articles but couldn't get it

These links might be of some help!

BBC NEWS Business The US sub-prime crisis in graphics
A Simple Explanation of the Subprime Crisis Part 1 - InformedTrades

Also can try explaining it in a simple way.

1. Sub prime lending means lending money to people with high credit risk. To compensate for that the lending rate is very high.

2. The real estate was doing very well in the US. The banks in US lent money to the sub prime category to encourage them to invest in property. The people got funds and the banks enjoyed a good return cos of the higher interest rate. The demand for houses was very large and the property prices appreciated thus enabling the sub prime lenders to pay back the loan. A win-win situation for everybody? Not quite!
3.At one point when the demand level stabilised the prices started coming down. People couldnt pay back the money they had borrowed and a lot of them defaulted and the banks incurred a major loss. Lehmann Brothers was one of the banks which went bankrupt!

This is just a gist of the entire crisis go through the links for a deeper understanding.

Hi Shovik

Can u give us a brief understanding of the subprime crisis...
Tried to Google and it and read some articles but couldn't get it

1. Please go through previous posts. You may want to look at https://docs.google.com/spreadsheet/ccc?key=0AvGsaZNKxyB0dG9Tem5ZMmFqalFReE5RTUc5Yk1oRXc#gid=1

2. SLR and the other rates manages the amount the banks can give away for loans. Giving away loans is called credit and managing that is called as regulating credit.

BTW, which article are you talking about ?

Thanks.. This clears my confusion
And i am talking about the article written by u on RBI's failure in tackling inflation:
http://www.mbaskool.com/business-articles/finance/1386-tackling-inflation-rbis-failure.html
Really very helpful

can you please explain the basic how SWAPS actually work? i am not clear with it..and its types..credit default swaps, currency swaps and commodity swaps.
and also how did CDS worsen the situation in greece?

I am coming across the terms-Beta, CAPM for the first time.. Can you suggest some other such financial terms ( related to stock market) which you feel are important?
Thanks in advance

It would differ for somebody with a background in Fin or Eco but for the other candidates
"Basic Finance Terms

Balance Sheet, P&L; Account and cash flow
Types of shares like common, preference
Types of markets - Primary, Secondary, Money, Capital, Commodities, Stock, Debt
IPO, FPO, SPO, M&A;, LBO, FDI, FII, Forwards, Options, CDS, CDO
Various definitions like Repo, Reverse Repo, SLR, MSFR, CRR, Call Money Market Rate, Bank Rate, BPLR, bond price, bond yield
Mutual Funds, Private Equity, Venture Capital

Hi Shovik
Went thru ur videos and article.. Amazing..
I have a few doubts:
1. What is the difference between Bank rate and Repo rate?
2. What is meant by regulating credit growth wrt SLR?
Thanks

1. Please go through previous posts. You may want to look at https://docs.google.com/spreadsheet/ccc?key=0AvGsaZNKxyB0dG9Tem5ZMmFqalFReE5RTUc5Yk1oRXc#gid=1

2. SLR and the other rates manages the amount the banks can give away for loans. Giving away loans is called credit and managing that is called as regulating credit.

BTW, which article are you talking about ?

Hi Shovik
Went thru ur videos and article.. Amazing..
I have a few doubts:
1. What is the difference between Bank rate and Repo rate?
2. What is meant by regulating credit growth wrt SLR?
Thanks

1) Harry has explained this in detail here

http://www.pagalguy.com/forum/prep-resources/61489-economics-terms-and-discussions-48.html#post3263049

2) Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) can be reduced to increase the liquidity in banks . But the expense for this move would be demand for Government securities/gold might come down a little .

CRR is the part of deposits that banks have to keep as cash with the RBI .

SLR is the percentage of deposits that banks have to invest in Government securities and other liquid assets like cash and gold.

This helps in regulating credit growth . it helps the India's banks in managing their asset quality better during recession/Global Turn down

Hi Shovik
Went thru ur videos and article.. Amazing..
I have a few doubts:
1. What is the difference between Bank rate and Repo rate?
2. What is meant by regulating credit growth wrt SLR?
Thanks

There are other aspects to this model as well. Like where it is used, where it fails. What are the alternative models etc. I suggest you go through them from online/offline resource. Posting that here will be little much of Finance of a general thread like this. I hope you understand. :o

Do you want to know the in detail calculation of beta ?

yes..:) thats fine.. then i will go through it again and will ask specific questions because i read it some time back and now not remembering exactly what difficulty i had.

not the exact way how beta is calculated but if you c an give some idea it will be great because googling them shows whole lot of mathematical expressions and all. so just wanted a general idea how it is done.

is there anything more to this capm model? because i also understood this much only in my graduation but i dont know what all is written in different books.so i though may be i am not getting it.

secondly, how do we calculate beta value?

P.S.- preparing for ifmr's gdpi. so going through all finance basics. so can you help what all can i go through as i'll say for "finance" specialization and having done BBA with finance specialization i think there must be a lot they can ask.:|

P.P.S.- really appreciate your help and learn a lot from this thread. great work..:clap:

There are other aspects to this model as well. Like where it is used, where it fails. What are the alternative models etc. I suggest you go through them from online/offline resource. Posting that here will be little much of Finance of a general thread like this. I hope you understand. :o

Do you want to know the in detail calculation of beta ?

By Privatization I meant making them accountable to private companies.... They can only sell to Private co's which would make them accountable since private cos are wrking only fr profits....

For the last part..... I read somewhere that interests rate ( I dont know what they meant by this ) are high as 16% in India whereas in other countries it is around 4-5% ( I think they must be talking of some kind of loans to open a business) ....... My point was that cheap labor in India.... doesn't it makes India a workable country as we have been in IT Industry.....

I believe your definition of privatization is little out of order. :)

Talking of the high interest rates. There are two evidences to it apart from comparing the lending rates.

1. India has had a huge growth in term deposits over demand deposits ( Broad and Narrow Money resp ). It shows higher interest rates which incentivize the consumer to postpone spending and lock away money in term deposits to grow
   
2. India's investment strength in other financial instruments like stocks, MF etc is lower as they do not need to. They can put their money in term deposits etc
   

I still do not get as to how it makes India a workable country. Which two reasons are you highlighting ?

First, I apologize for the late reply.


Second, local shops ( I think that is what you meant by local shop sellers ) are not SMEs. Local shops are a part of retail, the unorganized retail, SME is different.
What is privatization of middlemen !!! Most of middlemen are not accountable to the government as they are a part of the unorganized sector of our retail. You can read my post #239 to get an idea on this.
I did not understand your last part of the question at all. Can you rephrase properly ?

By Privatization I meant making them accountable to private companies.... They can only sell to Private co's which would make them accountable since private cos are wrking only fr profits....

For the last part..... I read somewhere that interests rate ( I dont know what they meant by this ) are high as 16% in India whereas in other countries it is around 4-5% ( I think they must be talking of some kind of loans to open a business) ....... My point was that cheap labor in India.... doesn't it makes India a workable country as we have been in IT Industry.....

Hi Shovik,
Can you please explain what is Unlevered beta in simple terms.

Oh dear !!!


CAPM - It is a model to calculate return on a portfolio or security. It is based on simple risk-return tradeoff. You can go through the equation. Corollary

1. If the stock is as risky as the market i.e. beta = 1, the expected is same as return as market return
   
2. If market return is same as risk free return then expected return will also be same
   

Hope this helps

is there anything more to this capm model? because i also understood this much only in my graduation but i dont know what all is written in different books.so i though may be i am not getting it.

secondly, how do we calculate beta value?

P.S.- preparing for ifmr's gdpi. so going through all finance basics. so can you help what all can i go through as i'll say for "finance" specialization and having done BBA with finance specialization i think there must be a lot they can ask.:|

P.P.S.- really appreciate your help and learn a lot from this thread. great work..:clap:

I am coming across the terms-Beta, CAPM for the first time.. Can you suggest some other such financial terms ( related to stock market) which you feel are important?
Thanks in advance

Oh dear !!!

Fiscal Policy - It is nothing but the government budget. The policy relating to government expenditure and income.

Monetary Policy - The policy relating to managing money supply in an economy. In turn it affects the interest rates. It is done by the central bank like RBI, Federal Reserve etc

Beta - Known as systemic risk. It measures the volatility of the portfolio or a single security w.r.t to the market. For e.g if TCS stock has beta of 1.5, then it means TCS stock is 1.5 times more volatile than the stock market. Its calculation is complex process entailing a method called regression.

CAPM - It is a model to calculate return on a portfolio or security. It is based on simple risk-return tradeoff. You can go through the equation. Corollary

1. If the stock is as risky as the market i.e. beta = 1, the expected is same as return as market return
   
2. If market return is same as risk free return then expected return will also be same
   

Hope this helps

Hi shovik....

Can u pls explain in laymans terms Fiscal Policy, Monetary Policy, Capital Asset Pricing Model and Beta.... i was asked in an interview and cause i mugged it up.... end result was that i got royally screwed....

I have searched the net umpteen times but everywhere the definations are heavy on financial jargon

Oh dear !!!

Fiscal Policy - It is nothing but the government budget. The policy relating to government expenditure and income.

Monetary Policy - The policy relating to managing money supply in an economy. In turn it affects the interest rates. It is done by the central bank like RBI, Federal Reserve etc

Beta - Known as systemic risk. It measures the volatility of the portfolio or a single security w.r.t to the market. For e.g if TCS stock has beta of 1.5, then it means TCS stock is 1.5 times more volatile than the stock market. Its calculation is complex process entailing a method called regression.

CAPM - It is a model to calculate return on a portfolio or security. It is based on simple risk-return tradeoff. You can go through the equation. Corollary

1. If the stock is as risky as the market i.e. beta = 1, the expected is same as return as market return
   
2. If market return is same as risk free return then expected return will also be same
   

Hope this helps

Hi shovik....

Can u pls explain in laymans terms Fiscal Policy, Monetary Policy, Capital Asset Pricing Model and Beta.... i was asked in an interview and cause i mugged it up.... end result was that i got royally screwed....

I have searched the net umpteen times but everywhere the definations are heavy on financial jargon

@Organized Chaos ...

Sir I wanted to know the reasons for the see-saw in the exchange rate .. rupee vs USD.

I mean it went up to 54 a month and half back. Then came down to 48.xx and now again up to 50.xx. Is there a specific reason for that ... ?

I would advise you to go through my previous posts on this thread. There was an appreciable discussion on foreign exchange. In fact, there was a specific discussion on why INR went till 54. If you still have any queries, do post.

@Organized Chaos ...

Sir I wanted to know the reasons for the see-saw in the exchange rate .. rupee vs USD.

I mean it went up to 54 a month and half back. Then came down to 48.xx and now again up to 50.xx. Is there a specific reason for that ... ?

@ OrganizedChaos,

Hi, I wanted to know ur opinion on certain points regarding the FDI in multi-brand detail......
The current proposal by the government says that the 30% of the procurement has to be done from SME'S by these large retailers.. Does it also include local shop sellers bcoz if not then the government can include them in this clause and set some kind of procurement mechanism from these pop mom shops that would help them running....even though my point sounds more like that of charity being done by these giants.

can we not privatise the middleman sector than just bypassing themm.... even though this will cause loss of jobs but it will remove the operational inefficiency and make them accountable....bypassing would lead to social crisis

last could not interest the role of high interest in making inverstment unfavs since our labour is dirt cheap along with english speaking skills.....and real estate in india is cheap by international standards.. do this all not compensate the higher interests ??

First, I apologize for the late reply.


Second, local shops ( I think that is what you meant by local shop sellers ) are not SMEs. Local shops are a part of retail, the unorganized retail, SME is different.
What is privatization of middlemen !!! Most of middlemen are not accountable to the government as they are a part of the unorganized sector of our retail. You can read my post #239 to get an idea on this.
I did not understand your last part of the question at all. Can you rephrase properly ?

An article worth reading for all - Wanna be MBAs or not

http://www.thehindu.com/todays-paper/tp-opinion/article2968240.ece

@ OrganizedChaos,

Hi, I wanted to know ur opinion on certain points regarding the FDI in multi-brand detail......
The current proposal by the government says that the 30% of the procurement has to be done from SME'S by these large retailers.. Does it also include local shop sellers bcoz if not then the government can include them in this clause and set some kind of procurement mechanism from these pop mom shops that would help them running....even though my point sounds more like that of charity being done by these giants.

can we not privatise the middleman sector than just bypassing themm.... even though this will cause loss of jobs but it will remove the operational inefficiency and make them accountable....bypassing would lead to social crisis

last could not interest the role of high interest in making inverstment unfavs since our labour is dirt cheap along with english speaking skills.....and real estate in india is cheap by international standards.. do this all not compensate the higher interests ???


Thanks and Regards,
Achint