“One secret of success in life is for a man to be ready for his opportunity when it comes.“ Benjamin Disraeli

Institute of Banking Excellence – IBEX

Banking is one of the most exciting sectors today, offering employment and career opportunities of an unbound scale.  The banking is going to become much more exciting with RBI issuing fresh bank licenses and structural changes in this space just a shade away. The demand for successful and excellent bankers will witness an unprecedented rise. Its time for you to rise to the occasion and achieve excellence in your career. Never mind in which scale you are, because Excellence is not in being where you are but in going from where you are. We at Institute of Banking Excellence aim at bringing the best in you and once you discover your best nothing can stop you from achieving success and great heights in your career. Promotion is one of the most potent measures of success in banking industry.

If you are ambitious enough to touch those heights, believe you can. But what you need is right guidance. And Institute of Banking Excellence will ensure that you get what you start for.

Internal Promotion Test:- IBEX study material explains all relevant and important aspects in easy language.  Study Material alongwith Sample Test Papers will enable you to pass through the tests with ease. Take a tour of Study Material to know more about it. Interview:- Going to interview means just being inches away from success. Do you realize that if you are able to create positive impression, your chances of success are tilted in your favour manifolds.  We bring the best guidelines for you to sail through the interview, it will enable you to know and identify the success factors like what to wear on interview, how not to get nervous and importantly how to succeed in INTERVIEW, and all the more important – the Important Questions with explained Answers.

If you have already appeared in The Promotion Test, you can send us questions and we will declare the winner and award the three entries sending us maximum question.

If you have any question relating to banking, please post the same at ibexcellence@rediffmail.com or ibex@ibexindia.co.in and we will try to send you the response as quick as possible.


by IBEX on Ibex
Masala Bonds

MASALA BONDSRBI has permitted multilateral and regional financial institutions (FIs) to invest in ‘masala bonds’, rupee denominated bonds issued by Indian entities. This decision will allow multilateral agencies like Asian Development Bank (ADB) and BRICS led New Development Bank (NDB) to invest in these bonds. It also provides more choices of investors to Indian entities issuing rupee-denominated bonds abroad.The Masala bonds are debt instruments that are typically used by corporates to raise money from investors. It refer to rupee-denominated bonds through which Indian entities can raise money from foreign markets in rupee, and not in foreign currency. The issuance of rupee denominated bonds, Indian entity is protected against the risk of currency fluctuation, typically associated with borrowing in foreign currency. Masala bonds also help in internationalization of the rupee and in expansion of the Indian bond markets. These bonds are usually traded on the London Stock Exchange (LSE) and not in India. The first Masala bond was issued by the International Finance Corporation (IFC), the investment arm of the World Bank dubbed as Uridashi Masala Bonds in November 2014. The Housing Development Finance Corporation (HDFC) was the first Indian company to issue rupee-denominated bonds “masala bonds” on London Stock Exchange (LSE) in July 2016. International Financial Corporation was first time issued green masala bonds in August 2015 to raise private sector investments that address climate change in India. Canada’s British Columbia province was the first foreign government to issue of masala bonds

by IBEX on Ibex

The Pradhan Mantri Garib Kalyan Yojana (PMGKY) came into effect from 17 December 2016. It will remain open until March 31, 2017. The Scheme PMGKDS 2016 offers one last window to black money holders who intends to declare undisclosed income under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016. The government has come out with the scheme giving black money holders time until March-end to come clean by paying 50 per cent tax on bank deposits of junk currencies made post demonetisation.•Declaration under Pradhan Mantri Garib Kalyan Deposit Scheme can be made by any person in respect of undisclosed income in the form of cash or deposits in an account with bank or post office or specified entity.•Declarant of undisclosed income needs to pay 30% tax, 10% penalty and 33% Pradhan Mantri Garib Kalyan Cess on the tax, all of which add up to around 50%.•Besides, declarant must make mandatory deposit of 25% of undisclosed income in the zero-interest Pradhan Mantri Garib Kalyan Deposit Scheme, 2016 with lock-in period of 4 years.•The income declared under it will not be included in the total income of the declarant under the Income-tax (IT) Act for any assessment year.•Declarations made under it will be kept confidential and shall not be admissible as evidence under any Act (ex. Wealth-tax Act, Central Excise Act, Companies Act etc.). However, declarant will have no immunity under Criminal Acts mentioned in section 199-O of the Scheme.Operational GuidelinesThe persons willing to disclose income under the scheme should fill Form II giving there PAN no. (if Pan not available, the declaratn to apply for PAN no., Account details, address details etc. The application should be accompanied by an amount not less than 25% of the undisclosed income under the scheme, which is required to be deposited with any authorized bank (Any Banking Company). However, no interest shall be paid for deposits made in this scheme.Repayment of the deposit will be made after a period of 4 years from the effective date of deposit (ie., date of tender of cash or the date of realization of draft or cheque or transfer through electronic transfer)On deposit, an acknowledgement receipt mentioning name of declarant and amount deposited will be duly authorized and provided by the bank. Subsequently a certificate of holding for the BLA (Bond Ledge Account) will be issued to the declarant. Subsequently a certificate of holding for the BLA will be issued which can be collected from the authorized bank. Howver, the Bonds (BLAs) are not tradable.Nomination facility: is available as per the provisions of the Government Securities Act 2006 and Government Securities Regulations, 2007. A nomination form is available along with Application form. In case of cancellation/change in nomination, a separate form is to be filled and submitted to the authorized bank.

by IBEX on Ibex

RBI has launched Priority Sector Lending Certificate (PSLC) in order to enable banks to achieve the priority sector lending target and sub-targets by purchase of these instruments in the event of shortfall and at the same time incentivize the surplus banks. The scheme proposes to enhance lending to the categories under priority sector.What is PSLC: PSLC can be issued by only those banks which have achieved priority sector targets. The amount of priority sector advance over and above targets can be used for issuance of PSLCs. Such banks can issue Certificate for amount in excess of its targets. The certificates can be issued in the denomination of Rs.25.00 lacs. Say priority sector target of A bank is Rs.100.00 Crores and it has achieved priority sector lending of Rs.105.00 Crores. It can issue PSLCs for Rs.5.00 Crores and sell it to another bank who has not been able to achieve the Priority Sector Advance target.Further, since banks are required to achieve sub-sector targets, priority sector lending certificates (PSLC) can be issued sub sector wise. However, the same is subject to achievement of overall and sub-sector wise achievement of priority sector advances. The certificates in following forms can be issued1. PSLC – Agriculture: All eligible Agriculture loans except loans to SF/MF for which separate certificates are available. The buying bank can use it for achievement of agriculture target and overall PSL target2. PSLC - SF/MF: All eligible loans to small/marginal farmers. The buying bank will use it for achievement of SF/MF sub-target, agriculture target and overall PSL target3. PSLC - Micro Enterprises: All PSL Loans to Micro Enterprises. The buying bank will use it for achievement of micro-enterprise sub-target and overall PSL target4. PSLC – General: The residual priority sector loans i.e. other than loans to agriculture and micro enterprises for which separate certificates are available. The buying bank will use it for achievement of overall PSL targetNature of the Instruments: The seller will be selling fulfillment of priority sector obligation and the buyer would be buying the same. There will be no transfer of risks or loan assets.The PSLCs will be traded through the CBS portal (e-Kuber) of RBI. The detailed operational instructions for carrying out the trades are available through the e-Kuber portal.Sellers/Buyers: Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Local Area Banks (LABs), Small Finance Banks (when they become operational) and Urban Co-operative Banks who have originated PSL eligible category loans subject to such regulations as may be issued by the Bank.Computation of PSL achievement: A bank’s PSL achievement would be computed as the sum of outstanding priority sector loans, and the net nominal value of the PSLCs issued and purchased. Such computation will be done separately where sub targets are prescribed as on the reporting date.Amount eligible for issue: Normally PSLCs will be issued against the underlying assets. However, with the objective of developing a strong and vibrant market for PSLCs, a bank is permitted to issue PSLCs upto 50 percent of previous year’s PSL achievement without having the underlying in its books. However, as on the reporting date, the bank must have met the priority sector target by way of the sum of outstanding priority sector lending portfolio and net of PSLCs issued and purchased. To the extent of shortfall in the achievement of target, banks may be required to invest in RIDF/other funds as hitherto.Credit Risk: There will be no transfer of credit risk on the underlying as there is no transfer of tangible assets or cash flow.Expiry date: All PSLCs will expire by March 31st and will not be valid beyond the reporting date (March 31st), irrespective of the date it was first sold.Settlement: The settlement of funds will be done through the platform as explained in the e-Kuber portal.Value and Fee: The nominal value of PSLC would represent the equivalent of the PSL that would get deducted from the PSL portfolio of the seller and added to the PSL portfolio of the buyer. The buyer would pay a fee to the seller which will be market determined.Lot Size: The PSLCs would have a standard lot size of Rs. 25 lakh and multiples thereof.Accounting: The fee paid for purchase of the PSLC would be treated as an ‘Expense’ and the fee received for the sale of PSLCs would be treated as ‘Miscellaneous Income’.Disclosures: Both seller and buyer shall report the amount of PSLCs (category-wise) sold and purchased during the year in the ‘Disclosures to the Balance Sheet’

by IBEX on Ibex

STAND UP INDIA SCHEME:-Stand up India scheme is intended to facilitate at least two such project that promote entrepreneurship among SC/ST and women entrepreneurs.The scheme provides for credit to under-served sectors of the population by facilitating bank loans between Rs.10.00 lakh to Rs.1000.00 lakhs for green field projects repayable upto 7 yearsThe loans would be secured by Credit Guarantee which will be operated by National Credit Guarantee Trustee Company Limited and Department of Financial Services will be the settler. The margin would by 25%.

by IBEX on Ibex

BUDGET 2016-17Nine pillars of the Budget: Governance, ease of doing business, fiscal discipline, tax reforms, Agriculture and farmers welfare, Rural sector with focus on employment , social sector with healthcare, Educational skills and job creation , Infrastructure and investment and financial sector reforms are the nine pillars on which the budget has been prepared.FISCAL DEFICIT: is poised at 3.5% of GDP for Financial Year 2016-17. The commitment to Fiscal Deficit augurs well for Reserve Bank which gets leeway to cut rates to push growth.DISINVESTMENT: Government pegged disinvestment during FY 17 at Rs.36000.00 Crores. Last year the government was able to achieve disinvestment of rs.13,300 Crore sonly as against Rs.69,5000.00.TAXEXCISE DUTY:- raised from 10 to 15 per cent on tobacco products other than beedisSERVICE CHARGE and Other MISC Tax issues: 1 per cent service charge on purchase of luxury cars over Rs. 10 lakh and in-cash purchase of goods and services over Rs. 2 lakh.Companies with revenue less than Rs 5 crore to be taxed at 29% plus surcharge. This goes in sync with Govt.’s last year proposal to bring the corporate tax down.Excise 1 per cent imposed on articles of jewellery, excluding silver.0.5 per cent Krishi Kalyan Cess to be levied on all services.POLLUTION CESS: The Petrol/CNG/LPG vehicles with length less than 4 meters and engine capacity less than 1200 cc will fetch pollution cess of 1 percent. Diesel Vehicles with length less than 4 meters and capacity less than 1500 Cc will attract cess at 2.5%. The other engine vehicle and SUV etc. will attract 4 percent cess.PRESUMPTIVE TAX SCHEME:- Let us first understand first what is Presumptive Tax. As per section 44AA of Income Tax Act, a person is required to keep books of account. However, a person adopting Presumptive tax Scheme can declare income at prescribed rate of 8% and is thereby relieved from the job of maintaining regular books of account. The Scheme is extended to small businesses with turnover of Rs.2.00 Crore (enhanced from Rs.1.00 Cr) and has been extended to Professionals with Service Income less than Rs.0.50crores. For professionals, 50% of receipts of professionals will be considered as profit and will be taxable under Head “Profits and Gains from Business and Profession"Start-ups to get 100% tax exemption for 3 years except MAT. It is under Start up India campaign launched Prime Minister in early 2016.

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“Got promoted from scale 2 to 3, with All India Rank No.1, Thanx IBEX

Amith C Shetty,
Senior Branch Manager, Vijaya Bank, Karkala, Karnatka

"Dear sir, IBEX is really a very good institute in India and is a good guider to those who want to get promotions in banking career. Your syllabus is short, concise, easy to understand and each and every point has immense knowledge. I have been promoted in PNB MMG 2 to MMG-3. Test recently conducted by IBPS on 08.05.2016.

With regards

M P Singh
Manager, PNB-Chaundhera (BSR) UP. Mobile-09758586809" (Session 2016-17)

i have been promoted to scale II. thanks for guidance and material.
your interview material is ultimate. covered all topics very systematically. the two interview books helped me very lot and build my confidence. those who refer ur material need not look for any other book or guidance. thanku very much. i referred ur intitute details to my collegues and junior friends in my bank.

kasi babu
syndicate bank
9885050027" (Session 2016-17)