Financial Blog

SBI PO recruitment eligibility doubts explained

SBI PO recruitment eligibility doubts explained

All those who are preparing for bank jobs are in a sense of excitement after the latest SBI PO recruitment notification.With the online registration links to apply for 2200 officer vacancies now open, many of you might be trying to decide whether you are eligible or not.

To help you better understand the conditions we have compiled a list of frequently asked doubts that normally comes to your mind.

Eligibility Qualifications
Q: I am completing 20 years in May.Shall I apply?
A: No.The age limit for applicants is 21 30 yrs as on April 1, 2016.

Those who have not attained 21 years on 01.04.2016 are not eligible for this SBI PO recruitment.In simpler words your date of birth should be within Apr 2, 1986 Apr 1, 1995

Q: I have scored only 50% in degree.Can I register?
A: There is no mimimum percentage required.If you have passed in degree, it is enough for you to submit application.So you are eligible to apply even with 50% marks

Q: Are final semester/year students allowed?
A: Yes.Students who are currently in their final year/ semester are also eligible to apply.

But they should be able to provide proper proof of having passed the degree exam on or before August 31, 2016 at the time of Interview.

Q: I had taken loan from another bank did not pay a single rupee.Am I eligible to apply?
A: As per the latest rule mentioned in SBI notification, candidates with record of default in repayment of loans credit card dues are not eligible for this PO recruitment.

So if you have not regularly repaying the loan EMI, you are NOT eligible to apply.Due to latest change in eligibility conditions, there shall be no jobs in SBI for loan defaulters hereafter.

Q: Will all employees get Rs.12.93 lakh annual salary?
A: No.The total compensation as advertised by SBI would be between 7.55 lakhs to 12.93 lakhs /year, which includes allowances such as house rental/ accomodation, CCA, medical othe benefits.

Some of these allowances wont be paid in cash along with your salary.For example, SBI offers Rs.8000 20,000 as house rent allowance that differs for each city.This amount shall be paid directly to landlords account no cash would be given to the employee.

After deducting all these perks, the SBI PO salary (take home) would be approximately Rs.35,000-39,000 /month

Q: I completed my degree through distance education.Am I eligible?
A: Yes.Candidates who have completed graduation through correspondence/ part time/ open university /distance education may also apply BUT the college/ university should be govt recognized.

Q: Explain about the SBIs limit on chances
A: State Bank has fixed the number of chances for a candidate to apply for its PO recruitments.According to it,

  • General category 4 attempts
  • OBC 7 attempts
  • SC/ST No Restriction

If you appeared for preliminary exam only did not qualify for mains, it WILL NOT be counted as a chance.

The online registration links for this recruitment closes on May 24, 2016


Anshu Jain's NBFC may apply for bank licence

Anshu Jains NBFC may apply for bank licence Jains role in the new company will be as an investor and a mentor, while the entire operation will be headed by his ex-colleague Bhupinder Singh

Respected Indians in the global financial world continue to come back to their home turf, lured by the growth rate of the country and the opportunity to tap a market that is familiar and capable of accommodating more.

After Citibanks Vikram Pandit and Standard Chartereds Jaspal Bindra, the latest names entering the Indian market are Anshu Jain, former co-head of Deutsche Bank AG, and Bhupinder Singh, the banks former co-head of corporate banking business in Asia-Pacific.

Jain and Singh are floating a non-bank financial company (NBFC) that will leverage technology to tap business opportunity in education, housing, and small medium enterprise segments all three under-served in India. The NBFC, in which one or two more Indian prominent business houses could invest, would be reasonably large, said sources in the know.

The investor base could remain closed to four or five investors, including Jain and Singh.

Jain left Deutsche Bank in June 2015, while Singh left the bank less than a year ago.

Jains role in the new company will be as an investor and a mentor, while the entire operation will be headed by Singh, sources said, adding if the new structure fits the bill, the NBFC could also apply for a banking licence once on-tap becomes the norm later this year.

The draft guidelines are just fresh off the press; there will be live discussions around it and the final guidelines will come. If the NBFC is found to be a right structure, eventually, it would want to become a bank, said a source. The central bank came with the draft guidelines on on-tap banking licence last week. Jain and Singh, who easily qualify to become bank promoters, given their net worth and long association with banking, easily fit the bill for being the promoter of a full bank.

The yet-to-be named NBFC is expected to start operations in about six weeks and will have its head office in Bandra-Kurla Complex in Mumbai.

The NBFC is busy hiring top talents from foreign and Indian firms and is expected to use technology to originate loans. The credit model will be evolved around smartphones and Aadhaar numbers.

Last month, Jaspal Bindra, former Asia-Pacific chief executive at Standard Chartered Bank, joined the board of Centrum Group as executive chairman. Bindra, who left Standard Chartered in February 2015, is expected to have picked up about 20 per cent stake in Centrum for an undisclosed amount.

Similarly, a fund managed by former Citibank chief Vikram Pandit in November 2014 picked up about 50 per cent stake in JM Financials realty lending arm FICS.

Kotak Mahindra Bank standalone net profit increases 32% on higher net income

Kotak Mahindra Bank standalone net profit increases 32% on higher net income On a consolidated basis, profit grew to Rs 1,055 cr against Rs 913 cr in Q4FY15

Private sector lender Kotak Mahindra Bank reported 32 per cent growth in standalone net profit for the March quarter to Rs 696 crore, on the back of higher net interest income (NII).

On a consolidated basis, profit grew to Rs 1,055 crore against Rs 913 crore in Q4FY15.

For FY16, net profit grew 12 per cent year-on-year from Rs 1,866 crore to Rs 2,090 crore. NII, the difference between interest earned and expended, in standalone operations rose 65 per cent to Rs 1,857 crore in the quarter ended March against Rs 1,123 crore a year ago. Other income improved to Rs 682 crore, against Rs 668 crore earlier.

However, earnings would not be strictly comparable to the previous years figures because of the merger between Kotak Mahindra Bank and ING Vysya Bank came into effect from April 1, 2015.

The banks asset quality remained largely stable, as gross non-performing assets (NPAs) for the standalone entity increased only slightly to Rs 2,838 crore, against Rs 2,690 crore in the December 2015 quarter. As a percentage of total advances, gross NPAs increased to 2.36 per cent as compared with 2.30 per cent in Q3FY16. Net NPA also rose to 1.06 per cent, against 0.96 per cent in the previous quarter.

Provisions for bad loans fell marginally to Rs 200 crore in the fourth quarter, against Rs 235 crore a year ago.

The lender might see the asset quality pressure easing in the coming quarters. For FY17, the management has significantly reduced the credit costs forecast to 45-50 basis points, compared with the 82 bps it registered in FY16.

At the consolidated level, the bank reported a 13.6 per cent growth in net profit (after adjusting for minority interest and share in profit of associate others) from Rs 3,045 crore in FY15 to Rs 3,459 crore.

Uday Kotak, executive vice-chairman managing director of Kotak Mahindra Bank, said to ensure greater transparency regarding asset quality, the bank has in this quarter reported the list of accounts that fall under SMA-2 (Special Mention Accounts). This list contains loans above Rs 5 crore on which interest is overdue for more than 60 days but are not NPA yet. And, there are about Rs 153 crore worth of loans that are part of this list, only 0.13 per cent of our total loan book.

Considering that the SMA-2 is controlled, we believe NPA additions can be checked. However, he also added that the recovery of loans has become slower.

Net interest margin, a key indicator of banks profitability, was 4.35 per cent. The management said the lender would be able to maintain NIMs above four per cent. In the coming quarters, Kotak expects credit growth to improve, especially in the commercial vehicles and small businesses segments.

The lender said the people and process integration with ING Vysya Bank has been completed, while technology integration is in the final lap. It expects the integration process to be completed in Q1FY17.

The bank remained well capitalised with capital adequacy ratio of 16.3 per cent. The bank dismissed any immediate equity fund raising plans.

Cut down on credit card expenses

Cut down on credit card expenses The Reserve Bank of Indias latest data indicate that spending per card is rising steadily - something that consumers should worry about

Customers seem to be happily swiping their credit cards. According to Reserve Bank of India (RBI)#39;s data on deployment of gross bank credit, the growth in credit card dues was 23.7 per cent over the previous financial year as on March 18. The total was Rs 37,700 crore, against Rs 30,500 crore in the same period last year.

The value of credit card transactions as on February 2016 was Rs 20,921 crore, up from Rs 18,886 crore in January. In comparison, the value of debit card transactions at merchants came down in February to Rs 12,954 crore, from Rs 14,611 crore in January.

And, the transaction value per card has gone up to Rs 3,106 from Rs 2,642 in 2009-10, a rise of 17.5 per cent. Over the past year, the rise has been two per cent.

Consequently, the economic research department of State Bank of India says, Within personal loans, it is the credit card loan segment that is rising rapidly, indicating a rise in consumer indebtedness. A benign inflation trajectory might also be one of the reasons leading to higher consumer spending. However, household debt, as measured by credit dues per credit card in India, has been rising even in real terms (after being adjusted for wholesale price index inflation).

Two years ago, banks were more conservative in issuing credit cards, but now they seem more relaxed, says Ranjit Punja, chief executive officer and co-founder, CreditMantri.

We see a lot of people with incomes of Rs 15,000-20,000 per month applying. This is a segment that would normally not get credit cards. Whether this was an unmet demand that already existed or has started now, is difficult to say,#39;#39; he says.

The rise in overall spending through credit cards should worry customers. And before you fall into a debt trap, start reducing it now. Most people get stuck in such a trap because it creeps up slowly, says Punja.

A big credit card debt can affect your chances of securing loans in future because, today, banks rely heavily on credit reports from credit bureaus. However, if you do run up a big credit card outstanding, there are ways you can bring it down.

Convert transactions into EMI

Today, if you make a large transaction, you immediately get an alert from your bank, asking whether you want to convert it into equated monthly instalments (EMIs). You have the option to convert one or more transactions into EMIs. So, instead of paying the entire amount in one month, you can pay through an EMI,#39;#39; says Rajiv Anand, head, retail assets, Axis Bank.

You can choose the EMI option while making a purchase, both in case of online and offline transactions. The credit limit is reduced to the extent of the principal outstanding and is freed as you keep repaying. You also do not have the option of pre-paying once you convert it into EMI.

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