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hope this information will be helpful to update your knowledge in Current affairs of Banking sector in the month April-May

2011. The high inflation has further made the RBI to keep changing the interest rates.

As the banking sector is one of the booming and having a great scope for business sector. As the fresh new licences for the new player has not been given the old player are trying to capture by penetrating the market and retaining the customers with possible aggressive marketing and customer relationship management(CRM). As the new player entering having a huge financial support and more importantly the reputation in other industries they currently into (Tata, Reliance Group, etc).

Here are the few recent news of banks, their achievement in recent past, new associations, Awards and Recognition, Growth and figures, and more importantly what new they can offer their customers. List of Indian Banks are

Next Month News: BANKING SECTOR CURRENT AFFAIRS: JUNE - JULY 2011

BANKING SECTOR CURRENT AFFAIRS: AUGUST - SEPTEMBER 2011

A Month wise updates in the Indian banking system is updates here. This is for the month ofApril - May 2011. Below you could find for the coming month direction.

Indian Bank Introduces complaint through SMS facility. o -To strengthen its customer grievance redressal mechanism its has introduced this facility. Punjab National Bank wins 6th BML Munjal (Brijmohan Lall) Award for 2010. o - Awarded for excellence in learning and knowledge development in private sector category. Earlier the recipient of this award were.

Year 2006 2007 2008

Private Sector Jet Airways Infosys and Satyam Mindtree Consulting

Public Sector NTPC SAIL NHPC

2009 2010 2011


HSBC Tata Steel Punjab National Bank

Indian Oil Ltd. ONGC Tata Power

United Bank of India opens its New Regional Office at Bangalore.(31st regional office). IndusIndBank get into an agreement with Finacle(which provides Core Banking Transformation Solutions and which is a part of Infosys Limited). Union Bank launches new facility in handling the New Pension Scheme(NPS) of Pension Fund Regulatory & Development Authority(PFRDA) through its branches. Allahabad Bank enters into 147th year (147th foundation day) and launches new services like Mobile Banking service, 100 ATM's, Mobile Van fitted with ATM. Indian Overseas Bank(IOB) celebrated its 75th Anniversary. Vijaya Bank, Bank of Baroda, and State Bank of India(SBI) posted its financial results( where all three posted profits, where Vijaya Bank touched 1.22Lakh crore business and SBI posted 33% increase in its Net profit). Corporation Bank, Abhyudaya Bank, Dhanalakshmi and South India Bank are in spree of increasing its branches as soon as possible. Dena Bank takes the Swabhiman Card program(Financial inclusion program of Central government).

Update: Indian Bank has received the Government of India approval to raise an additional equity capital of Rs.61.40 crore through Follow on Public Offer(FPO)(comprising 6.14crore equity share of Rs.10each) where the premium is not yet decided. IDBI Bank and Indian Army signs a Memorandum of Understanding(MoU) for Banking services where the banks offers a wide range of banking services and products and customized salary accounts for the army personnel. Bank-CSR Activities: SBI Bank donated Rs.18.50lakhs rupees cheque to The Leprosy Mission trust India(TLM) for the reconstructuve surgery of clawed hands and legs of the affected leprosy patients. United Bank of India opened Arsenic treatment plant in Gaighata Block, West Bengal. The plant will provide arsenic free safe drinking water to around 3000 families in the locality.

e: what is the meaning of hedging? Answer It is an act, in which an # 1 investor seeks to protect a 0 Naresh_l

position or anticipated position in spot market by using an apposite in derivities.


Is This Answer Correct ?

27 Yes

14 No

Re: what is the meaning of hedging? Answer hedging approach we gather the # 2 working capital from the

long term sources when ever firm need more working capital more than actual they procure from short term sources is called hedging.
Re: what is the meaning of hedging? Answer In finance, a hedge is # 3 an investment that is 5 Prasanna11149@yahoo.co.in [KARVY]

taken out specifically to reduce or cancel out the risk in another investment. Hedging is a strategy designed to minimize exposure to an unwanted business risk, while still allowing the business to profit from an investment activity. Typically, a hedger might invest in a security that he believes is underpriced relative to its "fair value" (for example a mortgage loan that he is then making), and combine this with a short sale of a related security or securities. Thus the hedger is indifferent to the movements of the market as a

whole, and is interested only in the performance of the 'under-priced' security relative to the hedge. 2).Process of protecting oneself against unfavorable changes in prices. Thus one may enter into an offsetting purchase or sale agreement for the express purpose of balancing out any unfavorable changes in an already consummated agreement due to price fluctuations. Hedge transactions are commonly used to protect positions in (1) foreign currency, (2) commodities, and (3) securities.
Is This Answer Correct ?

25 Yes

3 No

Re: what is the meaning of hedging? Answer In finance, a hedge is # 4 an investment that is 3 Prasanna11149@yahoo.co.in [KARVY]

taken out specifically to reduce or cancel out the risk in another

investment. Hedging is a strategy designed to minimize exposure to an unwanted business risk, while still allowing the business to profit from an investment activity. Typically, a hedger might invest in a security that he believes is underpriced relative to its "fair value" (for example a mortgage loan that he is then making), and combine this with a short sale of a related security or securities. Thus the hedger is indifferent to the movements of the market as a whole, and is interested only in the performance of the 'under-priced' security relative to the hedge. 2).Process of protecting oneself against unfavorable changes in prices. Thus one may enter into an offsetting purchase or sale agreement for the express purpose of

balancing out any unfavorable changes in an already consummated agreement due to price fluctuations. Hedge transactions are commonly used to protect positions in (1) foreign currency, (2) commodities, and (3) securities.
Is This Answer Correct ?

15 Yes

3 No

Re: what is the meaning of hedging? Answer prasanna gave a good # 5 answers plz continue 0 Venkat

for ever your truly........


Is This Answer Correct ?

7 Yes

3 No

Re: what is the meaning of hedging? Answer Assets are financed # 6 against the source of 0 Asif Shahzad

financing having the same maturity. A method of financing where assets would be offset with a financing instrument of the same approximate maturity.

Is This Answer Correct ?

4 Yes

2 No

Re: what is the meaning of hedging? Answer Headging means # 7 minimising the risk
Is This Answer Correct ?

N.mastan Reddy

10 Yes

0 No

Re: what is the meaning of hedging? Answer it is a risk reducing # 8 investment strategy 0 Vikesh Bansal

involving transactions of a simultaneous but opposing nature so that effect of one is likely to counterbalance the effect of other. With reference to appropriate financin mix,the term hedging can be sid to reffer to process of matching maturities of debt with maturities of financial needs. This approach to the financing decision to determine an appropriate financing mix is, therefore, also called as matching approach.

acording to tjis approach, the maturity of the sources of funds should match the nature of the assets to be financed.for the purpose of the analysis, the current assets can be classified into two broad classes:1) those which are required in a certain amount for a given level of operation and, hence, do not vary over time. 2) those which fluctuate over time. the hedgindg approach suggests that long term hands should be used to finance the fixed portion of the current assets requirements as spelt out in (1) above, in a manner similar to the financing of fixed assets. the purely temprarily requirements, that is, tyhe seasonal variations over above the permanent financing needs should be appropriately finanaced with short term funds(current liabilities). This

approach, therefore, divies the requirements of the total funds into permanent and seasonal components, each bein financed by different source.
Is This Answer Correct ?

7 Yes

1 No

Re: what is the meaning of hedging? Answer Hedging means "Moving # 9 from risky assets to

riskless assets" in this it minimises the risk.


The BSE is the oldest stock exchange in Asia. It is situated in Dalal Street in Mumbai. It is the third largest stock exchange in south Asia and the tenth largest in the world. BSE has over 5000 companies that are listed in it. The objectives of the BSE are similar to that of the NSE. BSE also uses the latest technologies in the IT field to provide a single place where traders from across the world can buy/sell shares in the Indian share market. BSE Index: The BSE Index or the Sensex as it is popularly known, is the index of the performance of the 30 largest & most profitable, popular companies listed in the index. Each company that is part of the index has its own weightage in the value of the Index. Since the number of countries involved is lesser, the index variations are higher when compared to the Nifty index.

Read more: http://wiki.answers.com/Q/W

Definition of 'Secondary Market'


A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets. Secondary markets exist for other securities as well, such as when funds, investment banks, or entities such as Fannie Mae purchase mortgages from issuing lenders. In any secondary market trade, the cash proceeds go to an investor rather than

to the underlying company/entity directly.

Investopedia explains 'Secondary Market'


A newly issued IPO will be considered a primary market trade when the shares are first purchased by investors directly from the underwriting investment bank; after that any shares traded will be on the secondary market, between investors themselves. In the primary market prices are often set beforehand, whereas in the secondary market only basic forces like

supply and demand determine the price of the security. In the case of assets like mortgages, several secondary markets may exist, as bundles of mortgages are often re-packaged into securities like GNMA Pools and re-sold to investors. Read more: http://www.investopedia.com/terms/s/secondarymarket.asp#ixzz1mObWcj3Jhat_do_you_mean_by_Bombay_Stock _Exchange#ixzz1mOazgnwL

secondary market

Definitions (3)
1. Customers other than those to whom a product was originally offered. For example, tools designed and priced for professionals may also be bought by serious hobbyists. 2. Financial market where previously issued securities (such bonds, notes, shares) and financial instruments (such as bills of exchange and certificates of deposit) are bought and sold. All commodity and stock exchanges, and over-the-counter markets, serve as secondary markets which (by providing an avenue for resale) help in reducing the risk of investment and in maintaining liquidity in the financial system. 3. Alternative term for aftermarket.

Read more: http://www.businessdictionary.com/definition/secondary-market.html#ixzz1mOcBiUvj

SEBI is securities and exchange board of India the regulatory authority for stock exchanges. It regulates the stock exchanges operation just like RBI regulates banks. Sensex is the bombay stock exchange index comprising of 30 top shares from various industries and movement of the same shows the trend of the stock market whether up or down. The counterpart of Sensex in national stock exchange is niffty which comprises of 50 stocks.The composition of the sensex and niffty changes from time to time.

3 years ago

Definition of 'Secondary Market'


A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets. Secondary markets exist for other securities as well, such as when funds, investment banks, or entities such as Fannie Mae purchase mortgages from issuing lenders. In any secondary market trade, the cash proceeds go to an investor rather than

to the underlying company/entity directly.

Investopedia explains 'Secondary Market'


A newly issued IPO will be considered a primary market trade when the shares are first purchased by investors directly from the underwriting investment bank; after that any shares traded will be on the secondary market, between investors themselves. In the primary market prices are often set beforehand, whereas in the secondary market only basic forces like supply and demand determine the price of the security. In the case of assets like mortgages, several secondary markets may exist, as bundles of mortgages are often re-packaged into securities like GNMA Pools and re-sold to investors.

Read more: http://www.investopedia.com/terms/s/seconDEMAT ACCOUNT

DEMAT ACCOUNT is an account offered by a bank in its capacity as a depository participant. The demat account reduces brokerage charges, makes pledging/hypothecation of shares easier, enables quick ownership of securities on settlement resulting in increased liquidity, avoids confusion in the ownership title of securities, and provides easy receipt of public issue allotments. It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty, avoid filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.
darymarket.asp#ixzz1mOcmey9K

A DMAT account is an account which is electronically maintained by the Banks or are provided by Broker agencies where you can keep money for transactions in Shares, Mutual Funds, purchase of Gold etc. It has to be tagged with your Savings account from where the money will be paid if you purchase a share etc and receive money when you sell a share etc.
Answered by Manas Mukhopadhyay, 04 Aug '08 10:01 am

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2. When you buy company shares, you receive share certificates. You need to preserve them safely and need to produce them for any transaction, which is time taking. In stead, if you opt for DEMAT (De-Materialisation), you can convert them electronically as balance in your account. (Just like your bank account - you can deposit, keep, withdraw or transfer). this is DeMat of shares. DeMat accounts are maintained in banks, DPs etc. who will allot you an account number and keep the balance. when you buy shares, just give your number and the other person, on recei\ving money, will transfer them into your account directly.
Answered by L G, 04 Aug '08 10:36 am

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Re: What is SEBI? Answer SEBI is a board established by # 3 govt. of india in 1991 after

Harshad mehta scam.It's main function is to stop fradulant activities of stock market. it has full control over stock market.It ensure smooth functioning of capital market. ebi security exchange board of india. it is located in mumbai and it protects the interests of investors in securities and promotes the development of the securities market through appropriate regulation.
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Definition of 'Primary Market'


A market that issues new securities on an exchange. Companies, governments and other groups obtain financing through debt or equity based securities. Primary markets are facilitated by underwriting groups, which consist of investment banks that will set a beginning price range for a given security and then oversee its sale directly to investors. Also known as "new issue market" (NIM).

Investopedia explains 'Primary Market'


The primary markets are where investors can get first crack at a new security issuance. The issuing company or group receives cash proceeds from the sale, which is then used to fund operations or expand the business. Exchanges have varying levels of requirements which must be met before a security can be sold. Once the initial sale is complete, further trading is said to conduct on the secondary market, which is where the bulk of exchange trading occurs each day. Primary markets can see increased volatility over secondary markets because it is difficult to accurately gauge investor demand for a new security until several days of trading have occurred. Read more: http://www.investopedia.com/terms/p/primarymarket.asp#ixzz1mOeyxIqW

GAAP
See: Generally Accepted Accounting Principles
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Generally Accepted Accounting Principles


Rules to which accountants adhere when preparing financial statements. The Generally Accepted Accounting Principles exist to ensure that American accountants are using the same or almost the same standards so that comparison of financial statements between or within a company is easy and accurate. They also promote transparency in accounting. The GAAP are set by the FASB. See also:International Financial Reporting Standards.
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GAAP
See generally accepted accounting principles.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.

Generally accepted accounting principles (GAAP). Generally accepted accounting


principles (GAAP), which are the basis for financial reporting by the private sector in the United States, have been codified by the Financial Accounting Standards Board (FASB) into a single authoritative source. The codification is designed to strengthen the economic system by organizing standards from various sources into approximately 90 accounting topics and providing uniform criteria for communicating data. The code is scheduled for final adoption at the end of 2008 following a one-year verification period.
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GAAP
(pronounced gap) Generally accepted accounting principles declared by the Financial Accounting Standards Board (FASB).
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Generally Accepted Accounting Principles (GAAP)


What Does Generally Accepted Accounting Principles (GAAP) Mean? The overriding accounting principles, standards, and procedures that companies follow when compiling their financial statements. GAAP is a combination of authoritative standards (set by policy boards) and the commonly accepted ways of recording and reporting accounting information. Investopedia explains Generally Accepted Accounting Principles (GAAP) Companies use GAAP to standardize their financial statements so that investors can better use those statements to analyze a company for investment purposes. GAAP covers things such as revenue recognition, balance sheet item classification, and outstanding share measurements. Companies are expected to follow GAAP rules when reporting their financial data in their financial statements. If a financial statement is not prepared using GAAP principles, investors should be very wary! That said, GAAP is only a set of guidelines, and that leaves plenty of room for interpretation by unscrupulous accountants to distort figures. Thus, even with GAAP, one should not put complete faith in the numbers companies report.

1. (noun) generally accepted accounting principles, GAAP a collection of rules and procedures and conventions that define accepted accounting practice; includes broadguidelines as well as detailed procedures

The Principles of GAAP Generally accepted accounting principles, or GAAP for short, are the accounting rules used to prepare and standardize the reporting of financial statements, such as balance sheets, income statements and cashflow statements, for publicly traded companies and many private companies in the United States. GAAP-based income is measured so that the information provided on financial statements is useful to those making economic decisions about a company, such as potential investors and creditors. GAAP is implemented through measurement principles and disclosure principles. Measurement principles recognize and determine the timing and basis of items that enter the accounting cycle and impact the financial statements, such as the period in which transactions will be recorded.Disclosure principles determine what specific numbers and other information are essential to be presented in financial statements. Basically, GAAP is concerned with:

the measurement of economic activity; the time when such measurements are to be made and recorded; the disclosures surrounding this activity; and the preparation and presentation of summarized economic information in financial statements. Why GAAP? Without GAAP, companies would be free to decide for themselves what financial information to report and how to report it, making things quite difficult for investors and creditors who have a stake in that company. Because

financial statements prepared under GAAP are intended to reflect an economic reality, GAAP makes a company's financials comparable and understandable so that investors, creditors and others can make rational investment, credit and other financial decisions. In order to be useful and helpful to users, GAAP requires information on financial statements to be relevant, reliable, comparable and consistent. Regulating GAAP Although it is not written in law, the U.S. Securities and Exchange Commission (SEC) requires publicly traded companies and other regulated companies to follow GAAP for financial reporting. Although smaller companies are not required to use GAAP, there are certain situations, such as obtaining credit or seeking investors, which require, by contract, those companies to also follow GAAP when preparing their financial statements. The SEC does not set GAAP; GAAP is primarily issued by the Financial Accounting Standards Board (FASB). Government entities, however, must follow a different set of GAAP standards as determined by the Governmental Accounting Standards Board (GASB). How to Apply GAAP Accountants apply GAAP through FASB pronouncements called Financial Accounting Standards (FASs). Since its formation in 1973, the FASB has issued over 100 formal FAS pronouncements. Before the FASB was formed, its predecessor, the Accounting Principles Board (APB), issued 31 opinions between 1959 and 1973. The APB was preceded by the Committee on Accounting Procedure, which issued 51 pronouncements known as Accounting Research Bulletins (ARBs) from 1939 to 1959. Some of the APB opinions and ARBs are still in force today. Although the rules found in the formal pronouncements of the FASB and its predecessors are the main sources of GAAP, GAAP rules are also found in statements from the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants; pronouncements by expert accountants; and other practices that are not found in formal pronouncements but are generally accepted because they represent a common practice in a particular industry. For example, there is a general assumption that financial statements must be based on the premise that a company will continue in existence unless there is substantial evidence to the contrary. Because of the myriad of GAAP sources, accountants must rely on their own knowledge and professional judgment when deciding how the GAAP concepts should be interpreted and applied. Why Should I Know GAAP? If you have anything to do with the financial reporting of a company or government entity, you should understand the principles of GAAP. However, if you are simply preparing your individual income tax statements, understanding GAAP probably isn't as important to you. Usually, financial statements prepared for income tax purposes are significantly different than statements prepared under GAAP, mainly because they each measure income differently. The FASB measures GAAP-based income so that the information provided is useful to those making economic decisions (i.e., investors and creditors). The IRS, on the other hand, uses income tax reporting to achieve social and economic objectives, such as reducing unemployment and encouraging investment in capital assets. The following Web sites give more information and new announcements on GAAP: Financial Accounting Standards Board - www.fasb.org U.S. Securities and Exchange Commission - www.sec.gov American Institute of Certified Public Accountants - www.aicpa.org As with any accounting matter, you should always discuss accounting issues with your certified public accountant.

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