‘Gilts’ is the short form for gilt-edged securities- so called because they carry no risk. Gilt Account Holder (GAH)/Constituent means an entity or a person including ‘a person resident outside India’ maintaining a “Gilt Account” with a Custodian.[“Custodian” is a primary member (PM) permitted by the Reserve Bank of India to open and maintain Constituent…
Currently the banks are mandated to extend collateral-free agriculture loans up to Rs.1 lakh. This limit of Rs.1 lakh was fixed in the year 2010.In view of overall inflation and rise in agriculture input cost since 2010, Reserve Bank of India vide its circular RBI/2018-19/118 FIDD.CO.FSD.BC.No.13/05.05.010/2018-19 dated February 7, 2019 advised all the scheduled commercial…
Monetary aggregates are broad categories of money that measure the money supply such as cash and demand deposits or bank credits which have an impact on the aggregate economic activity. Appraising monetary aggregates can generate a lot of information about the financial stability and overall health of a country. For example, if large amount of…
In banking and finance parlance, liquidity refers to the ability to convert one asset into another or to use assets to meet obligations. Liquidity indicates the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price. Market liquidity refers to stock market where the…
Today (16.02.2019) the convener of the UFBU has been informed by IBA that the negotiating committee of IBA with the representatives of the constituent workmen Union/Officers will be held on Thursday 21st February 2019 at 11.00 A.M in Mumbai. In the meantime, the convener of UFBU received letters from AIBOC,NOBW, BEFI INBEF and NOBO seeking…
The term ratio means a simple division of one number by another. It is measured by the number of times one number is contained by the other, either integrally or in fraction. The ratio analysis of financial statement means the process of calculating structural relations of different items and groups in the financial statements. Generally,…
A credit rating is an opinion of a particular credit agency regarding the ability and willingness of an entity (government, business, or individual) to fulfill its financial obligations in completeness and within the established due dates. A credit rating also signifies the likelihood a debtor will default. Credit ratings date back to the early 20th…
Deferred Payment Guarantee is a guarantee for a payment usually on installments which has been deferred or postponed. Banks issue DPG in the cases of purchase of capital goods/machinery where the seller offers credit to the buyer and buyer’s bank guarantees the due payments to the seller. Here the seller draws drafts of different maturities…
Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests between companies and their stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the society. Corporate governance specifies the distribution of rights and responsibilities among different participants in the…
In simple words, if an investment is held till its maturity date, the rate of return that it will generate will be Yield to Maturity. YTM is the estimated internal rate of return earned by an investor who buys the bond today at the market rate on the assumption that it will be held until…