SBI, GDP - Current Affairs Questions and Answers

ANSWER: 5

Explanation:
The merger of the five associate banks with the SBI will lead to increased capital base and availability of loan, as the Lok Sabha passed the bill approving the amalgamation.

The Lok Sabha passed the bill to repeal the SBI (Subsidiary Banks) Act 1959, State Bank of Hyderabad Act 1956 and to further amend the State Bank of India Act, 1955, following the merger of five associates with the parent SBI.

With this merger, the SBI has come in the list of top 50 banks globally and is ranked at the 45th position.

The merger will bring about increased capital base and increased ability to give loans. Also, small banks will get access to products like mutual funds.

During the last two years, 29 crore bank accounts were opened, of which 25 per cent were zero balance accounts and farm loans increased from INR 3.5 lakh crore in 2009-10 to INR 10.65 lakh crore in 2016-17.

The merger will help increase SBI’s scope of operation and will pose a challenge to private banks as it will work as per the requirements of the people.

The merger has been planned keeping in mind the benefit of people and going forward its benefits will be seen.

According to the statement of object and reasons of the State Banks (Repeal and Amendment) Bill 2017, after the acquisition of the subsidiary banks by SBI, the subsidiary banks have ceased to exist and, therefore, it is necessary to repeal the State Bank of India (Subsidiary Banks) Act, 1959 and the State Bank of Hyderabad Act, 1956.

Five associates and the Bharatiya Mahila Bank became part of State Bank of India (SBI) beginning April 1, catapulting the country's largest lender to among the top 50 banks in the world.

The five associates that were merged are State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT).

Following the merger, the total customer base of SBI increased to 37 crore with a branch network of around 24,000 and nearly 59,000 ATMs across the country.

The merged entity began operation with a deposit base of more than INR 26 lakh crore and advances level of INR 18.50 lakh crore.

As per the bill, after the acquisition of all the subsidiary banks by the SBI, it is not necessary to retain such provisions in the State Bank of India Act, 1955. .

Therefore, certain amendments are necessary in the said Act in so far as they relate to the subsidiary banks. The amendments are consequential in nature.

SBI had 90 per cent shareholding in the State Bank of Mysore, 75.07 per cent shareholding in the State Bank of Bikaner and Jaipur and 79.09 per cent shareholding in the State Bank of Travancore.

SBI: Know More

• State Bank of India is an Indian multinational, public sector banking and financial services company.
• It is a government-owned corporation with its headquarters in Mumbai, Maharashtra.
• Customer service: 1800 425 3800
• Chairperson: Arundhati Bhattacharya
• Headquarters: Mumbai
• Founded: 1 July 1955
• Major Subsidiaries: SBI Cards, State Bank of Hyderabad

ANSWER: SBI

Explanation:
India’s largest commercial bank State Bank of India (SBI) on Tuesday said it has launched a dedicated portal ‘SBI Realty’.

This will help home buyers to choose flats from its 3,000 approved projects across the country, which are spread across 13 states and Union Territories covering 30 cities.

State Bank of India has taken another step towards customers’ convenience by launching ‘SBI Realty’ - a one stop integrated website www.sbirealty.in for home buyers.

At present, there are 9.5 lakh home units available on the website. Customers can compare current and past trends of prices for the properties in various localities in the city.

The portal will assist customers in calculating appropriate loan amount a customer should borrow based on income and credit profile.

SBI believes in innovation combined with an emphasis on market research, contemporary architecture, strong project execution and quality construction.

The SBI Realty website has been developed by SBICAP Securities in association with PropEquity in terms of data support, project information, etc.

SBI: Know More

• SBI is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees.
• The company has a deposit base of Rs 25.85 lakh crore.
• It has an extensive network, with over 24 thousand branches in India and 194 offices in 35 other countries.

ANSWER: Nepal

Explanation:
Nepal SBI Bank, a subsidiary of the State Bank of India, today launched its fully automatic digital banking services SBIInTouch in the Nepalese capital Kathmandu.

This is for the first time the State Bank of India has expanded the paperless banking system outside India.

Digital banking provides various services including cash deposit, opening of new accounts, distribution of debit card, ATM and online banking information on touch of the screen.

Customers can avail the services from SBI Intouch Bank.

The digital banking unit also has a robot, which provides important information to customers in an interactive manner.

Nepal Rastra Bank Governor Chirinjibi Nepal, SBI Bank’s chairperson Arundhati Bhattacharya and Indian Ambassador to Nepal Manjeev Singh Puri, jointly inaugurated the new service, the first of its kind in Nepal.

The paperless banking service has been launched to target potential younger customers who are exposed to digital technology.

Paperless banking is a revolution in the banking sector of Nepal, said Chiranjibi Nepal.

ANSWER: Both of the above

Explanation:
Union Cabinet on March 15, 2017 approved the National Health Policy 2017 aiming to increase public healthcare expenditure to 2.5 percent of GDP.

More than two-thirds of resources will be going towards primary healthcare.

The policy is aiming to reach healthcare to all parts of the country, specially the underserved and underprivileged.

The last national health policy was framed in 2002.

This policy guides a time-bound implementation framework with clear milestones and distinct deliverables to attain policy goals.

The policy works to raise public healthcare expenditure to 2.5% of the GDP from the current 1.4%.

Features of the National Health Policy

• Policy envisages larger package of assured comprehensive primary healthcare via Health and Wellness centres.
• This is an extensive package including care for NCDs, mental health, geriatric care, palliative and rehabilitative care services.
• It works to ensure availability of 2 beds for every 1000 persons to enable access within emergency.
• The policy aims to make healthcare accessible for all and offers financial protection, proposing free drugs, diagnostics and emergency as well as healthcare services in public medical hospitals.
• The policy also aims to raise life expectancy from 67.5 to 70 years by 2025.
• It also aims to establish regular tracking of disability adjusted life years or DALY index as a measure of burden of disease and trends through major categories by 2022.
• The reduction of total fertility rate to 2.1 at national and sub-national levels was aimed for by 2025.
• Another goal of this policy is to reduce mortality of children under 5 years of age to 23 per 1000 by 2025 and maternal mortality rate from current levels to 100 by 2020.
• The scheme also aims to reduce infant mortality rate to 28 by 2019 and reduce neo natal mortality to 16 and still birth rate to single digit by 2025.
• The policy aims to strengthen the regulatory environment and seeks putting in place systems for setting standards and ensuring healthcare quality.
• The policy also checks out reforms in the current existing regulatory systems for easing manufacturing of drugs and devices for promoting Make in India and reforming medical education.
• Policy advocates development of mid-level service providers, nurse practitioners, public health cadre to improve availability of required health human resource.

ANSWER: bank.sbi

Explanation:
The State Bank of India (SBI) on 20^th Feb 2017 announced rebranding of its website as bank.sbi.

According SBI, the new domain name bank.sbi is the highest domain protocol known as generic top level domain (gTLD), an official statement.

The SBI group has several businesses. For those wanting to do banking or want to know about the bank it is easier to type out www.bank.sbi.

The SBI group having presence in insurance, mutual fund and card may also go for such Generic top-level domain (gTLD).

With this, SBI has become the first banking organisation in India to use a gTLD for its online presence and providing an exclusive experience of assurance and security to its customers.

SBI being the largest bank has always been the pioneer in adapting new technology.

SBI has always believed in providing high-tech yet secure internet experience to its customers.

Bank's own gTLD is another step in this direction.

SBI's Chairperson is currently Arundhati Bhattacharya.

Bank's own gTLD aims at simplifying the digital experience of customers and brings in enhanced security against phishing and lookalike websites.

Due to its non-replicability, a gTLD site like ".sbi" conveys an assurance to the customer that the site is authorised, genuine and is not an inappropriate or phishing site.

The existing site of sbi.co.in will continue till customers get used to the SBI's new secure website.

SBI: Know More

• State Bank of India is an Indian multinational, public sector banking and financial services company.
• It is a government-owned corporation with its headquarters in Mumbai, Maharashtra.
• Founded: 1 July 1955
• Subsidiaries: SBI Cards, State Bank of Hyderabad etc

ANSWER: 5

Explanation:
The merger proposal was announced in May 2016 and was scheduled for March 2017.

The Union Cabinet on 15th Feb 2017 approved the merger of five of State Bank of India subsidiaries - State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore - with the SBI.

The merger proposal was announced in May 2016 and was scheduled for March 2017.

Finance Minister Arun Jaitley said that the Cabinet had earlier given its in-principle approval for the merger, and then had sent it to the respective banks for their suggestions.

These suggestions have been taken on-board, and the decision has been formally approved by the Cabinet.

This will lead to far greater operational efficiency and synergy of operations within these banks.

It will decrease the cost of operations, which will also result in a decrease in the cost of funds.”

The merger is likely to result in recurring savings, estimated at more than INR. 1,000 crore in the first year, through a combination of enhanced operational efficiency and reduced cost of funds.

Existing customers of subsidiary banks will benefit from access to SBI’s global network.

SBI, following the merger, will not only be a large domestic bank, but will also become a global player as well.

ANSWER: 7.3

Explanation:
Central Statistical Office on 30th Nov 2016 announced India’s GDP accelerated to 7.3 percent in the second quarter of 2016-2017. This is up from a provisional 7.1 percent expansion in Q1.

Gross Value Added rose to 7.1 percent.

GDP growth accelerated in the second quarter from 7.1 percent, but GVA growth slowed 7.3 percent in that period.

Both GDP and GVA growth were slower in this Q2 compared to 2015-2016’s Q2. The Q2 of 2015-2016 showed a GDP growth of 7.6 percent and GVA growth of 7.3 percent.

The agriculture sector maintained the overall growth by registering a 3.3 percent GVA growth rate in Q2 of this financial year in comparison with 2 percent in Q2 of 2015-16.

The manufacturing sector saw considerable slowdown as it registered GVA growth of 7.1 percent in Q2 of this financial year as against 9.2 percent in 2015-2016’s Q2.

The mining and quarrying sector growth fell by 1.5 percent in Q2 compared with the contraction of 0.4 percent in the first quarter and a growth of 5 percent in Q2 of 2015-16.

Sectors like manufacturing, electricity, mining, services and others show a fall in the September quarter because they are not supported by demand.

Except for agriculture, public administration and construction, drop in outputs across all sectors took place.

Gross fixed capital formation equalled 29 percent of GDP in this Q2 compared to 32.9 percent in the previous year’s Q2.

Government final consumption expenditure was 13 percent of GDP in this Q2 compared to 12.1 percent in the earlier year. GFCE grew 18.8 percent in this Q1 and 15.2 percent in this Q2.

Government’s Capital Expenditure (Plan and Non Plan) fell 12.81 percent to INR 129459 crore as against INR 143329 crore a year back.

What is GDP?

GDP: Monetary value of all finished goods and services produced in a country in a certain time period. It is generally calculated on annual basis; it can be computed on quarterly basis as well.

It is a broad measurement of nation’s overall economic activity.

GDP = Private consumption+ Public consumption+ Government outlays+ Investments + Exports - Imports.

Where, GDP = C + G + I + NX

• C = all private consumption, or consumer spending
• G = sum of government spending,
• I = sum of all the country's investment, including businesses capital expenditures and
• NX is the nation's total net exports, calculated as total exports minus total imports (NX = Exports - Imports).

ANSWER: IOC

Explanation:
SBI has engaged Indian Oil Corporation’s Kisan Seva Kendras as banking correspondents to extend banking facilities to farmers across the nation.

• SBI signed an MoU with IOC as part of the financial inclusion programme lending further services to the farming community.
• Indian Oil Corporation has set up 6,500 Kisan Seva Kendras in rural and remote areas providing access to numerous agricultural inputs like seeds, fertilisers and pesticides to farmers.
• Tie up will enable farmers to avail various products and services by SBI customer service points such as saving account, recurring deposit and more.
• IOC with net profit of INR 103.99 billion for 2015-2016 is India’s largest commercial enterprise.

ANSWER: Society for Innovation and Entrepreneurship

Explanation:
State Bank of India in the second week of July 2016 has signed an MoU with the Indian Institute of Technology Society for Innovation And Entrepreneurship(SINE) to promote innovation by startups in the financial sector.

• Deal also aims to evaluate start ups operating out of SINE or being promoted by SINE for early stage funding with the norms of the bank
• SINE is an IIT-B incubator

ANSWER: Mingle

Explanation:
Country’s largest lender, SBI has launched three digital initiatives and aims to print its branch network once its associated have merged.

• SBI can debut on social media by launching the platform called Mingle through which FB and Twitter users can transact business.
• Customers have to register for the service through a simple one time registration process using their account number or ATM Debit card details
• Another initiative is a tie up with Flipkart through which the bank will extend loans to select customers for purchases above INR 5000
• SBI has indicated at present, one million customers can avail this loan
• Another initiative is the SBI Digital Villages which will transform selected villages into safe, healthy and vibrant digital centres
• A total of 21 villages have been covered under this initiative
• SBI will bring more than 6000 branches into its fold once the 5 associates merge