ENHANCED LIST OF RBI ASSITANT UPDATED

Friends, as stated in it's earlier notification dated 30th March 2017, on the basis of performance of the candidates in the main online examination, the Reserve Bank of India (RBI) has released the Centre –wise enhanced list of roll numbers of the provisionally selected candidates for RBI Assistants Recruitment 2016. You can check the region wise “Roll numbers of Provisionally Selected Candidates” from the official website of the Reserve Bank of India or from below link. All the Best :)

Click here to check enhance list

EDITORIAL OF THE DAY FOR SBI PO 2017

The inflation bias is well known in macroeconomics as the temptation for policymakers to create excess inflation to stimulate output. Inflation targeting is designed to counter the temptation. But it can create the opposite bias.

If bureaucrats are given an inflation target which measures their performance, they would tend to impose too high an output sacrifice in order to achieve their target. Flexible inflation targeting builds in some counters to this bureaucratic bias. For example, it gives a weight to growth, allows some time to achieve the target, and brings in outside experts with independent views in a monetary policy committee.

But there is evidence that these checks have proved inadequate in India, and therefore need to be strengthened.

Wrong inflation expectations

Repeated research at the Reserve Bank of India itself, has shown the importance of food prices for Indian inflation and for household inflation expectations. It has also shown excess capacity in industry. Yet as in classic strict inflation targeting, authorities seek to reduce inflation by further widening a negative output gap. In order to suppress demand, the real interest rate has to be kept high, with the nominal interest rate exceeding expected inflation. A higher future expected inflation rate then allows policy rates to be high even though current inflation falls. But inflation targeting is also about guiding expectations of inflation. If the announced rate of inflation is kept higher, it prevents inflation expectations from falling as much as they could have otherwise.

The bimonthly monetary policy statements from 2014-16 show the one year-ahead inflation announced was almost always about 1 cent above realised inflation. The expected inflation path depicted was always U-shaped or flat, with inflation rising eventually, even if it fell in the short term.

Since from 2014, on IMF advice, a positive natural rate of 1.25-1.75 per cent was built in, it meant real interest rates were actually higher in the contractionary range of 2.25-2.75, discouraging investment that could have reduced supply-side bottlenecks. The IMF ignored first-hand experience of the ill effects of high interest rates on indebted firms during the East Asian currency and financial crisis.

Thus an incorrect emphasis on the weak output gap channel reduces the effectiveness of the expectation channel. This is unfortunate since in Indian conditions the latter is almost the only one that works. A valuable signal that could anchor inflation expectations was not optimally used.

Bias shows in other ways also — for example, the decision to target headline CPI inflation, which was the highest when inflation targeting began, but the shift in policy statements to core inflation when the latter was higher.

There are asymmetric responses such as not reducing rates for a negative output gap but getting ready to raise them when it is thought to be closing. Also an oil price fall is regarded as temporary and a rise as more likely to be persistent. Therefore interest rates are not cut with a fall in oil prices, but there is instant readiness to raise with a rise.

One reason for the bias is a strong pro-market monetarist perspective, itself dictated by pressures from foreign capital. In this view structural reforms create growth, while money supply affects only inflation. If structural rather than macroeconomic policies are seen as affecting capacity, it is inconsistent to believe capacity is likely to be destroyed by lack of use following weak demand. Yet this is articulated as a reason to expect inflationary pressure.

Exaggerated fears

While it is too early to compare the forecasts the MPC makes vis-a-vis realised inflation, there is the same communication that future inflation is expected to rise. Some of the arguments given to support this are weak. For example, firstly, that core inflation is sticky. But it fell sharply in 2014 from 8 per cent to 4 per cent along with a fall in household inflation expectations. It follows that these, built into wages, affect core inflation, not excess demand for services due to shortages of skills. The perception of absence of change is itself a bias.

Secondly, there is the argument that agricultural wages are rising. But the current low rate of increase can be absorbed by productivity increases. It is only the double-digit type rise of 2011, following double-digit food inflation, that causes inflation. Thirdly, there is a fear of oil price rise, outflows and rupee depreciation.

But oil prices are softening again. US shale production can kick in quickly and cap price rise, while some rise in oil prices is good for our exports. Fourthly, inflows and the rupee have strengthened despite a rise in US fed rates. Indian political stability and growth prospects continue to be the primary drivers of inflows, not the interest rate differential. While the Technical Advisory Committee had a healthy diversity of views, the MPC has too much consensus pointing towards bureaucratic dominance.

Cost of bias

High interest rates following inflation targeting reduced demand. Industrial growth, employment, capacity utilisation and investment have been low since 2011. Bank credit to industry and private investment growth actually became negative in 2017. Corporate debt grew at double digits from 2012 raising the share of chronically stressed firms while gross NPAs of PSBs doubled. Five years is too long to suffer to build an elusive future.

Even so, the focus on structural reform and on the long run did successfully reduce vulnerabilities, such as twin deficits. Macroeconomic policy should now be in a position of strength. But unfortunately it continues to overestimate foreign shocks and underestimate its own strengths and capability to smooth shocks, resulting in external dominance and suppression of domestic demand. This although the experience of the 2013 US taper showed raising interest rates to keep foreign capital does not work in India. Even at a vulnerable time, other more effective weapons were found against outflows.

An additional check could be for the RBI governor to report periodically to a parliamentary committee, as in the US, answering informed questions on the inflation target path and its costs.

The writer is a professor of economics at IGIDR, Mumbai

REASONING FOR SBI PO 2017

Directions (1-5): Study the following information carefully to answer these questions.

A, B, C, D, E, F and G are seven students of the Engineering college. All of them belongs to different branch of Engineering: Mechanical, Chemical, Electrical, Computer Science, IT, Textile and Electronics but not necessarily in the same order. Each one of them likes different sports Snooker, Golf, Tennis, Badminton, Cricket, Football and Volleyball not necessarily in the same order. All of them are of different height. D is taller than C and F. E is taller than G.B studies in Mechanical and likes Football. E studies in Computer Science but not likes Tennis or Cricket. The one who studies in IT likes Snooker. F likes Golf but does not studies in Chemical or Electronics. C is taller than E. B is taller than only A.A person who studies in Electrical likes Badminton. The one who studies in Electronics does not like Cricket. G studies in IT and C likes Tennis. The one who is tallest likes Badminton.

Q1.Who plays the Cricket?

(a) D

(b)A

(c)E

(d)D or E

(e) None of these

Q2.E plays which game?

(a) Badminton

(b) Golf

(c) Cricket

(d) Volleyball

(e) None of these

Q3.Which of the following combinations of branch-person-sports is definitely correct?

(a) Electrical – B –Badminton

(b) Chemical – E – Volleyball

(c) Electronics – D – Cricket

(d) Chemical – D – Cricket

(e) None of these

Q4.Who studies Textile?

(a) C

(b) D

(c) G

(d) F

(e) None of these

Q5.Who is the Golfer?

(a) C

(b) F

(c) D

(d) Cannot be determined

(e) None of these

Directions (6-10): Study the following information carefully to answer these questions.

Seven family members G, H, J, K, L, M and N are going to different countries viz. UK, US, Germany, France, Italy, Russia, China not necessarily in the same order. Each one of them has a different profession from amongst CA, Admin, Accountant, HR, Manager, Engineer and Professor not necessarily in the same order.

G is the father of K's only brother L. The one who is wife of L is anEngineer and she is going to France. The one who is brother of L is anAdmin and he does not go UK.H is the sister-in-law of K. The person who is CA goes to US. M goes to Italy. The one who is Professor goes to China. K is uncle of N.M and N are brothers. L is a Manager and he goes to Germany. G is an HR.The one who is sister of N does not go to US.J is sister of M.

Q6.Who is the Accountant?

(a) J

(b) N

(c) K

(d) M

(e) None of these

Q7.Which of the following combinations of person, profession and country is definitely correct?

(a) G – HR – Germany

(b) K – Professor - China

(c) L – Manager - US

(d) G – HR – UK

(e) None of these

Q8.Who is going to US?

(a) J

(b) K

(c) M

(d) N

(e) None of these

Q9. Granddaughter of G goes to which country?

(a) Russia

(b) China

(c) US

(d)Chandigarh

(e) None of these

Q10.Who is the Professor?

(a) N

(b) J

(c) M

(d) L

(e) None of these

Directions (11-15): Read the following information carefully and answer the questions given below.

Eight friends P,Q,R,S,T,U, V and W are seated in a straight line at an equal distance between each other, but not necessarily in the same order. Some of them are facing north and some are facing south. T is an immediate neighbour of one who is sitting at an extreme end of the line. Only three people sit between T and V. S sits second to the right of V. S does not sit at an extreme end of the line. W sits on the immediate left of P. W is not an immediate neighbour of V. The immediate neighbour of P faces opposite directions.(i.e. If one neighbour faces north then other faces south and vice versa.) The persons sitting at the extreme ends faces opposite directions.(i.e. If one person faces north then other faces south and vice versa.)Q sits second to the left of U. U faces north. U is not an immediate neighbour of T. The immediate neighbours of U faces same directions.(i.e. If one neighbour faces north then other also faces north and if one neighbour faces south then other also faces south).Both T and Q face a direction opposite to that of S.(i.e. If S faces north then T and Q faces south and vice-versa.)

Q11. As per the following arrangements, which of the following statements is not true with respect to P . ?

(a) P faces south.

(b) P is fourth to the right of Q.

(c) P is 2nd to left of T.

(d) P is between V and W.

(e) None of these

Q12. How many person sit on the left of Q ?

(a) One

(b) Two

(c) Three

(d) Four

(e) None of these

Q13. What is the position of S with respect to P ?

(a) Immediate left

(b) Third to left

(c) Third to right

(d) Fourth to left

(e) None of these

Q14. Which of the following is immediate neighbour of Q?

(a) T,S

(b) T,U

(c) V,U

(d) R,S

(e) None of these

Q15 Four of the given five are alike in a certain way based on the given arrangement and hence form a group. Which of them does not belong to that group .?

(a) R

(b) S

(c) P

(d) U

(e) V

Ans soon updated soon.....

BANK OF BARODA RECRUITMENT OF PO 2017 APPLY ONLINE

Bank of Baroda PO Recruitment 2017 (BMSB) - 1200 Posts

Friends, the Bank of Baroda is inviting online applications from eligible aspirants for 9 months Post Graduate Certificate in Banking and Finance course in Baroda Manipal School of Banking . After completion of this course, the candidates would be awarded a Post Graduate Certificate in Banking & Finance and will be offered appointment in the Bank as Probationary Officer in Junior Management Grade / Scale-I.

 No IBPS Score Required to apply for this. There are 1200 vacancies in total.

You can apply online from 1st April 2017 to
1st May 2017 .
Check complete details from below.
Name of the Organization : Baroda Manipal School of Banking
Name of the Post : Probationary Officers

Important Dates :

Start date for Online Registration - 1st April 2017
Online Payment of Application Fees - 1st April 2017 to 1st May 2017
Last date for Online Registration - 1st May 2017
Download of Call letter for Examination - 12th May 2017
Date of Examination (Tentative) -
27th May 2017

Eligibility Criteria :
Education :
Degree (Graduation) with minimum 55% (50% for SC/ST/PWD) marks in any discipline from a recognized University OR any equivalent qualification as such recognized by Central Government.
Age (as on 1st April 2017)
20 to 28 Years

Number of Students
 intake per batch :
Unreserved - 202
OBC - 108
SC - 60
ST - 30
Total - 400
Application Fee :
Rs. 750/- for General & OBC
Rs. 100/- for SC/ST/PWD
Check detailed notification of Baroda Manipal School of Banking selection Exercise 2017-18

CLICK HERE TO APPLY ONLINE

IDBI EXCATIVE WAITLIST OUT

IDBI Bank Executives Wait Candidate List out
Friends, the IDBI Bank Ltd has released
Wait Candidate List for it's Executives Recruitment 2017. As you know, the IDBI Bank has invited online applications for the recruitment of 500 Executive posts from 16th November 2016 to 30th November 2016 and conducted online examination on 6th January 2016. Later the bank has released the list of selected candidates and cutoff details on 18th January 2017. Now it has came out with the Waiting List. You can check the Roll Numbers of the Wait-listed Candidates
from the official website of IDBI Bank Ltd or from below link. All the Best :)CLICK HERE TO SEE

BANK OF BARODA RECRUITMENT 2017 COMING SOON

Dear BO readers,

As per the notice published in employment news today Bank of baroda has annouced vacancies for the post of JMGS Scale l from 1st apr 207. We will update it as soon as official notyfication uploaded on site.

EDITORIAL PICK FROM THE HINDU FOR SBI PO 2017

It is eerie how each decade, with one exception, 1960, has ended badly for the economy — a pattern that has been maintained throughout the 77 years India has been independent. 1949 was the immediate aftermath of the Partition and the British decision to cheat on its sterling obligations; 1969 was the year the Congress party split; 1979 is described above; and as we shall, in 1990, India almost went bankrup

The years 1999 and 2009 were not much better. In both the economy performed very poorly. Most annoyingly for the Indian economy, the 1970s ended very badly. Inflation shot up at one point to 27 per cent; the forex reserves dwindled to alarmingly low levels; 1979 became the worst drought year in a century; and political instability came back with a vengeance with there being only a caretaker government from July 1979 to January 1980.

Indira Gandhi came back as Prime Minister in January 1980 and almost immediately she agreed to approach the IMF for a loan under the Extended Fund Facility (EFF) which is a soft loan window of the IMF with a longer repayment period of three or four years for countries that have run into a balance of payments problem because of what the IMF calls ‘structural weaknesses’. The loan comes with strings attached, the most important of which is that the borrower must give up its old policies of state control. From the IMF’s point of view this was a ‘walk into my parlour situation’ because it had been trying since 1966 to get India to change its statist policies, to no avail. From India’s point of view, the loan was needed so that it would be able to buy Mirage fighter aircraft from France.

The US knew what India was up to and tried to block it. But eventually India managed to get the approval of the IMF board. To do so, it made several commitments about ‘structural reform’. The Indian government’s letter to the IMF was leaked to The Hindu. Just who leaked it is not known but there are various theories, (including one that The Hindu’s correspondent there, a Brahmin, befriended the Brahmin cook of a Brahmin official).

The aftermath

There was the usual political storm, led by the Left but nothing came of it. Indira Gandhi stood firm domestically and agreed to do as bidden by the IMF. But in her usual way she wriggled out of the commitments.

Not just that. She also declined the last tranche due in 1983 because the next year was an election year and she could not afford the strict fiscal discipline that India had been made to observe since 1982. In actual fact, there was a lot of fiscal subterfuge. India also carefully hid its actual level of reserves. The result was that it ended up with the Mirage fighters and the IMF didn’t quite get what it wanted.

For that it would have to wait till a really big balance of payments crisis hit India in 1991. But in 1981, the emphasis was on containing inflation, which meant a very tight monetary policy, stringent credit policies and targeting, if not achieving, a lower revenue deficit which had surfaced after a very long time in 1980.

The RBI, under Patel who knew about the secret negotiation with the IMF, really tightened the monetary screws, raising the CRR and the bank rate. The SLR was also raised to 35 per cent. By September 1981, however, it was clear that these measures were not working and in October that year, Patel tightened money even further by raising the CRR from 7 to 8 per cent in the busy season. He was told by many not to be so severe but he went ahead anyway to make sure that the IMF’s ceiling on money supply growth was met. It was, in February 1982.

Indeed to meet the IMF’s requirements on expenditure ceilings, the government was even forced to ask public sector companies to deposit their excess cash in the treasury instead of leaving it in the banks because deposit growth in the first half of 1981 had been very high, leading to higher-than-needed credit growth.

The RBI’s official history says that the government had decided to undertake structural reform even before being told by the IMF to do so. But another theory is that it decided to only pretend that it was doing so because it badly wanted that EFF loan to be able to use its own foreign exchange for the Mirages.

***

Inflation, growth and RBI

But in 2008, the RBI under its new governor, fresh from heading the Finance Ministry, was suffering from a joined-at-the-hip syndrome. It would take Subbarao another three years before he started to act independently by which time it was too late.

Between 2008 and 2011, however, when he got a two-year extension, the RBI was fully compliant with the government’s requirements, requests and requisitions. It was almost as if he was in complete awe of the government.
[3/29, 12:56 PM] atul: The three men who called the shots were all at the peak of their powers — Prime Minister Manmohan Singh who was widely credited in 2009 with having won the general election; C Rangarajan, who headed the Prime Minister’s Economic Affairs committee (PMEAC) where Subbarao had been his number two; and Montek Singh Ahluwalia who headed the Planning Commission and who was, as Manmohan Singh’s daughter would later write, almost like his son.

Subbarao was practically bludgeoned into following a very loose monetary policy as part of the ‘stimulus’. A combination of domestic political, global and personal factors led India to inflate the economy to such an extent that in 2010 its GDP growth almost reached the magic double-digit figure of 10 per cent.

Prices were growing faster than output, and the product gave the higher growth rate. The birds would come home to roost in Subbarao’s last two years as governor in 2012 and 2013. Inflation went into double digits, especially food inflation. Industrial growth had come at a cost to the poor, who would retaliate in 2014 by voting the Congress government out and a BJP government in with a simple majority for the first time since 1984. If there was one thing other than corruption that contributed to the Congress defeat — it crashed to just 44 seats in 2014 from 208 in 2009 — it was inflation.

The RBI played a major role in that denouement and Subbarao’s compliant attitude during his first term as governor will have to be counted as an important factor in it. He overlooked the most important charge that the RBI Act makes on the RBI — inflation control.

It now turns out that he also failed in controlling the banks in their lending spree to big borrowers who would subsequently virtually refuse to return their loans, running into several lakhs of crores.

Changing factors

The attitude of the RBI between 2009 and 2012 is reflected in the speeches its governor and deputy governors were making. On the one hand there was a dramatic increase in the number because the old practice of only the governor and deputy governors speaking in public was given up, and even executive directors started to speak on the public fora, resulting in considerable confusion.

On the other hand, they spoke about everything except the main problem — inflation. Even when they did speak about it, it was on a defensive note, wherein they sprayed a lot of academic red herrings.

The fact their old adversary, the government, which was leading them by the nose, was completely overlooked. The mode was more justificatory than combative, accommodative than adversarial. It was as if the RBI had collectively decided to bury Reddy’s ghost. In effect, the RBI became the most articulate advocate of fiscal expansion and monetary laxity.

In that major sense, the years 2009-11were amongst the most inglorious years of the RBI. Soon after he got his second term in September 2011, Subbarao started becoming critical of the government.

He spoke repeatedly about inflation, growth, politics, the laws of economics and the laws of physics which they were supposed to resemble but didn’t. Reams have been written about this sudden turnaround. They do not, however, take away from a simple fact: he was trying to shut the stable door after the horses had bolted.

The economy went into a steep downward spiral from which it is still to recover. Not to put too fine a point on it, despite his best intentions and efforts, it must be said that Subbarao failed to do his job. He allowed both prices and bad loans to rise, thus failing on the macro side as well as the regulatory side.

These two are the most important tasks which the RBI is charged with. It may sound very harsh but to the extent that a person must be judged by the outcomes he delivers, it is true. You judge a batsman by the number of runs he scores and a bowler by the number of wickets he takes. Nothing else matters.

TCA Srinivasa Raghavan began his career in 1975 as the economics editor at Macmillan India. In 1980, he switched to journalism. Over the next thirty-three years he worked with the Free Press Journal, Eastern Economist, Financial Express, Indian Express, Business Standard and The Hindu BusinessLine. Between 2004 and 2011, he was a consultant with the RBI.