Disinvestment

Question 1

In principle approval for – disinvestment of 5 PSUs–

Answer 1

Strategic.
Bharat Petroleum Corporation Ltd (BPCL); Shipping Corporation of India; Container Corporation of India; Tehri Hydro Power Development Corporation (THDCIL), and North Eastern Electric Power Corporation Ltd (NEEPCO)

Question 2

Nodal agency for disinvestment-
under which ministry-
Identification of PSUs for disinvestment by-
Inter-ministry group on disinvestment to be chaired by-

Answer 2

Dept for investment and public asset mgmt- DIPAM(was renamed from Dept of invstmt in 2014) under Ministry of Finance
Identification by DIPAM and NITI ayog jointly.
DIPAM SECRETARY+ secretary of administrative ministry concerned.

Question 3

2020-21 target-
2019-20-
Methods-
Monetization if the given cpse is a part of the ETF(means any fund that is traded on the stock exchange) basket i.e. – and –
ESI 2019-20 suggests Singapore’s model of—
Would lead to professionalism and autonomy. This entity would be managed by independent board.

Answer 3

210000 crore
65000 crore
a) Stock market- IPO, FPO, OFS b) Institutional Placement Program(IIP): ONLY institutions can participate. c) ETF- allows simultaneous sale of govt stake in various CPSEs across diverse sectors through SINGLE offering..
CPSE-ETF and Bharat-22 ETF.
Tenmasek Holdings- incorporated by Singapore govt as a private commercial entity to hold and manage its investments in its govt linked companies.

Question 4

BANKING
Credit growth of PSBs has __ since__ and that of New Private banks has__
2019- PSBs accounted for –of NPAs in BANKING SYSTEM and gross NPAs amount to – of their gross advances.

Answer 4

Declined, 2013, increased or normal.

80%, 11.59%

Question 5

Stressed assets- Broad term- __

Written Off assets- —- counted as dues but recovery efforts are continued at the branch level.

Answer 5

NPAs, restructured loans and written off assets.

Written off assets are NOT counted as dues.

Question 6

NPA- if — remained overdue for– or more.
In Agri loans- NPA varies for short duration crop(–)
and long duration crops(__)
NPAs further classified into-

Answer 6

Principal or interest payment, 90 days.
Interest not paid for 2 crop seasons and Interest not paid for 1 crop season.
Substandard, Doubtful and loss assets.

Question 7

Substandard assets- NPA for period of less than or equal to —.
Doubtful assets- remained substandard asset for – or remained – for more than —.
Loss assets- these need to be written off, considered as — although there might be some salvage or recovery value.

Answer 7

12 months.
12months, NPA for more than 12 months.
Uncollectible.

Question 8

To address temporary asset liability mismatches govt introduced-
In this PSBs can purchase high rated pooled assets from—–.

Answer 8

Partial credit guarantee scheme

NBFCs and HFCs

Question 9

Govt introduced —- for smart and tech enabled public sector banking eg- Dial-a-loan for doorstep loan facilitation, palm banking-RM

Answer 9

EASE 3.0 - Enhanced Access and service excellence

Question 10

IBC amended in 2019 to

Answer 10

Protect resolution applicants from criminal proceedings against offences committed by previous managers

Question 11

PCA intoduced in __
Trigger points-
Leverage ratio- —/—
Only to — and NOT to cooperative banks and NBFCs and FMIs

Answer 11

2002
Capital to risk weighted assets ratio, net NPA, Returns on assets and Tier 1 Leverage ratio.
Tier 1 capital/ exposure.
Commercial banks

Question 12

JUST FACTS-
Bank’s total exposure is defined as
the sum of the following exposures:
on-balance sheet exposures;
derivative exposures; securities
financing transaction exposures; and
off-balance sheet items.

Answer 12

The RBI relaxed the leverage ratio
(LR) and a cut in leverage ratio implies
that banks can lend more on the
same capital base.

Question 13

RBI allowed domestic banks to sell NPAs in __ and __ to investors abroad as a part of __.

Answer 13

Manufacturing and Infra sectors as a part of One time settlements exercises(OTS).