01. FINANCIAL
POSITION:
Financial Position gives a picture of the position of the bank in terms of
income, profits, assets and liabilities for the last five years. It gives a
detailed picture as to the trend in the performance of the bank
02. INTANGIBLE
ASSETS:
These assets do not have any definite physical existence but often have a
material impact on the profit-earning capacity of business. Like, trademarks,
copyrights, goodwill, miscellaneous expenditure, preliminary expenses etc
03. FUNDBASED
INCOME:
Fund based income is the income from asset-based financing. It includes income
from security trading, dividend income, interest income, income from leasing
and hire purchase activities, income from bill discounting and income from
forex operations
04.
FEE BASED INCOME: Fee based income is income derived from the services
provided by the bank as opposed to income from asset-based financing
05
COST PER RUPEE OF OPERATING INCOME: Cost per rupee of operating income indicates
the various costs incurred by the bank as a percentage of a rupee of the
operating income. This clearly brings out the costs incurred by the bank on
various heads. The industry figures allow comparison of the bank’s performance
as against the industry
06.KEY
RATIOS: Key
ratios are important ratios that help in analyzing the performance and the
prospects of a bank. Ratios pertaining to various areas such as operations,
profitability and per branch efficiency are presented for the last five years
07.CREDIT
DEPOSIT RATIO: Credit
deposit ratio is the ratio of advances to deposits
08.UNSECURED
ADVANCES:Unsecured
advances are the outstanding advances that are not backed by the assets with
collateral security
09.PRIORITY
SECTOR ADVANCES: Advances
lent to industry sectors defined as priority sectors by the banking regulations
such as agriculture, small scale industry etc
10.WORKING
FUNDS: Working
funds is the sum of equity capital, reserves and average deposits
11.NETWORTH:
Net
worth includes the equity capital, preference capital, reseves less revaluation
reserves and miscellaneous expenses not written off
12.INTEREST
SPREAD: Interest
spread is the net of the total interest earned less total interest expended
13.CAPITAL
ADEQUACY RATIO: A
measure of the amount of bank’s capital expressed as a percentage of its risk
weighted credit exposures
14.
INTERST SPREAD: Interest
spread is the net of the total interest earned less total interest expended
15.MARKET
CAPITALISATION: Market
capitalization is the product of the closing price and the number of
outstanding shares on any given date.
16.BOOK
VALUE PER SHARE: Ratio
of equity capital plus reserves to the number of equity shares
17.
NET PROFIT: Profit
after tax but before investment allowance reserves
18.OPERATING
PROFIT MARGIN: The
ratio indicates the operating efficiency of the company. The value is
calculated as{Operating income – operating expenses/(Operating income)}
19.EARNINGS
PER SHARE: Ratio
of net profit less preference dividend to the number of equity shares
(annualized)
20.PROMOTER
HOLDING: Indicates
the percentage of equity holdings with the promoter of the company
21.INSTITUTIONAL
HOLDING: Institutional
holding in the company means UTI, MF, FIIs stake in the company. It does not
include private corporate bodies
22.YEAR
TO DATE NET PROFIT CHANGE(%): Indicates the summation of net profit of the
company from the beginning from the beginning of the accounting year till the
latest quarterly net profit in comparison with the previous corresponding
period
23.YEAR
TO DATE PERIOD: Indicates
the quarter upto which the unaudited results have been taken for calculation
24. SCHEDULED BANK means a bank
included in the second schedule to the RBI act 1934
25. BRANCH BANKING system is one under which a large bank
carries on banking business through a large network of branches spread all over
the country where the bank’s huge financial resources enable it carry on its
activities on a large scale throughout the country
26. UNIT BANKING
SYSTEM
is that system where an individual bank undertakes the banking business through
a single office or through a few branches operating within a limited area
27.ULTRA VIRES In relation to a
company, means an action outside the memorandum of association of the company
28. SYNDICATED CREDIT is an agreement between two and more
lending institutions to provide a borrower a credit facility using common loan
documentation.
29. SPOT
TRANSACTION
is one where the conversion or exchange of foreign currency is done on the same
day
30. CONCURRENT
AUDIT
is an examination which is contemporaneous with the occurrence of transaction
or is carried out as near thereto as possible and it attempts to shorten the
interval between a transaction and its examination by an independent person not
involved in its documentation and aims at substantive checking in key areas
rather than test checking.
31. RED HERRING – a preliminary
prospectus issued to test the market for a new issue; does not include a firm
price
32. LONDON CLUB –an association of
international commercial banks with the purpose of negoatiating in common the
terms and conditions of sovereign loans
33. WHITE KNIGHT – a company subject
to an unwelcome or hostile bid (corporate raider) may invite a second bid from
a friendly company as an alternative to succumbing to a takeover. The company
is called white knight
34. COMMERCIAL
BANKING SYSTEM in
our country consists of scheduled and non scheduled banks.
35. FOREIGN
BANK
is one which is incorporated outside India
36. RURAL
BRANCH
is one which is opened in a place having population upto 9999
37. LOCAL
AREA BANKS
have been mooted with a view to providing an institutional mechanism for
promoting rural and semi urban savings as well as for the provision of credit
for viable economic activities in local areas
38. INDUSTRIAL
BANK
accepts from the public only long term deposits
39.
MUTUAL FUND
refers to the business of acquisition, holding, management, trading or disposal
of securities, participation certificates or any other instruments, income or
growth participation business and Unit Trust schemes
40. OPEN
ENDED FUND
– the fund exists for perpetuity. There are no ceiling on the amount to be
raised and unitholders are assured of dividends, capital appreciation and
safety. A repurchase facility close to Net Asset Value (NAV) makes it better
than close-ended fund.
41. CLOSED
ENDED FUND
– the corpus is of fixed size with a redemption period. The stocks are listed
on the stock exchanges, thus, offering easy liquidity. The market price is
always below Net Asset Value.
42.
PORTFOLIO MANAGEMENT SERVICES – provided by banks to their clients in the
nature of investment consultancy/management, for a fee; entirely at the
customer’s risk, without guaranteeing, either directly or indirectly, a
predetermined return.
43. BANK
RECEIPT
– acknowledges that the selling bank holds the securities on behalf of the
purchasing banker.
44. SUBSIDIARY
GENERAL LEDGER
is an account maintained at Public Debt Office of RBI by the banks loan-wise
through which their transactions pertaining to Central/State Government
securities are put through.
45. TALWAR
COMMITTEE
which submitted its report in the year-1977 was appointed by the Government of
India to submit recommendations on customer service in banks
46.
PENDHARKAR
working group was appointed to review the system of inspection of banks by
Reserve Bank of India.
47. P
R NAYAK COMMITTEE
was appointed by RBI in December, 1991 to examine the adequacy of institutional
credit to SSI sector and related aspects.
48. JANAKIRAMAN
COMMITTEE
was set up by Reserve Bank of India on 30.4.1992 to investigate into the
possible irregularities in funds management by commercial banks and financial
institutions, and in particular, in relation to their dealings in government
securities, public sector bonds and similar instruments.
49. GHOSH
COMMITTEE
was set up by RBI in October, 1991 to enquire into various aspects of frauds
and malpractices in banks
50. DERIVATIVE
USANCE PROMISSORY NOTES refer to usance promissory notes raised by banks in
convenient lots and maturities on the strength of genuine trade bills
discounted by their branches
No comments:
Post a Comment