Base years
WPI-- 2004-05
IIP --2004-05
CPI--2010-11
GDP --2011-12

Essay

Pros & Cons of SBI Associate merging with parent SBI:

The Union cabinet on June 15, 2016 approved the  merger of the five subsidiaries of State Bank of India (SBI) with the parent, as the Indian banking system moves into a phase of consolidation.

The cabinet approved the merger of the subsidiaries namely State Bank of Mysore ,State bank of Travancore,State Bank of Hyderabad,State Bank of Patalia ,State Bank of Bikaner and Jaipur along with Bhartiya Mahila Bank Ltd with SBI. SBI’s merger with subsidiaries will see the combined entity’s balance  sheet at a whopping Rs.37 trillion, making it one of the top 50 banks in the 

world.

Some of the pros and cons are as follows:

Pros:

1) Currently, no Indian bank features in the top 50 banks of the world. With this merger,visibility at global level is likely to increase.

2)Branch rationalization, if executed well, would be one of the key synergy benefits from the merger

3)The merger benefits include getting economies of scale and reduction in the cost of doing business.

4)After the amalgamation it can withstand the strong competition from private sector banks and can accumulate more resources to  channelize trained manpower across its branches.

5)The merger of SBI and its associate banks will result in the network increase of SBI and its reach would multiply. 

6)Cost savings on account of treasury operations, audit, technology, etc, would lower cost-to-income ratio in the long term.

7)Any introduction of new technologies and features by SBI  will uniformly be available to all customers of SBI , its associates and subsidiaries.

8>Shares of SBI and its associates will post tremendous earnings in the stock exchange thereby benefiting stake holders.

Cons:

1)Immediate negative impact would be from pension liability provisions (due to different employee benefit structures) and harmonization of accounting policies for NPA (non-performing assets) recognition.

2)The associate banks are on a totally different footing as they have regional flavor and regional focus compared to nationalistic SBI culture.

3)Various internal conflicts and disputes may arise with regard to promotion,pension and other potential issues.

4) Post the merger, SBI's employee costs could rise by Rs 23 crore a month.

Pros & Cons of Sbi merger

Pros & Cons of SBI Associate merging with parent SBI:

The Union cabinet on June 15, 2016 approved the  merger of the five subsidiaries of State Bank of India (SBI) with the parent, as the Indian banking system moves into a phase of consolidation.

The cabinet approved the merger of the subsidiaries namely State Bank of Mysore ,State bank of Travancore,State Bank of Hyderabad,State Bank of Patalia ,State Bank of Bikaner and Jaipur along with Bhartiya Mahila Bank Ltd with SBI. SBI’s merger with subsidiaries will see the combined entity’s balance  sheet at a whopping Rs.37 trillion, making it one of the top 50 banks in the 

world.

Some of the pros and cons are as follows:

Pros:

1) Currently, no Indian bank features in the top 50 banks of the world. With this merger,visibility at global level is likely to increase.

2)Branch rationalization, if executed well, would be one of the key synergy benefits from the merger

3)The merger benefits include getting economies of scale and reduction in the cost of doing business.

4)After the amalgamation it can withstand the strong competition from private sector banks and can accumulate more resources to  channelize trained manpower across its branches.

5)The merger of SBI and its associate banks will result in the network increase of SBI and its reach would multiply. 

6)Cost savings on account of treasury operations, audit, technology, etc, would lower cost-to-income ratio in the long term.

7)Any introduction of new technologies and features by SBI  will uniformly be available to all customers of SBI , its associates and subsidiaries.

8>Shares of SBI and its associates will post tremendous earnings in the stock exchange thereby benefiting stake holders.

Cons:

1)Immediate negative impact would be from pension liability provisions (due to different employee benefit structures) and harmonization of accounting policies for NPA (non-performing assets) recognition.

2)The associate banks are on a totally different footing as they have regional flavor and regional focus compared to nationalistic SBI culture.

3)Various internal conflicts and disputes may arise with regard to promotion,pension and other potential issues.

4) Post the merger, SBI's employee costs could rise by Rs 23 crore a month.

Descriptive tips:

Descriptive tips:

In the descriptive test normally candidates are required to write essay type answers to the questions which are based on situations, current topics, topics of common interest, national issues etc. The questions are basic in nature and not much preparation is required for it.

 However since you have to qualify that, therefore your objective should be to write very well in the given time. In case you are not comfortable with this section what you can do is, try to write short notes on life situations and current topics regularly. For this you will have to read newspapers, magazines on current topics on a regular basis. From there you will be able to extract sufficient information regarding all the topics that may come in the exam.
 Regarding, writing in English one should always be aware of the few points such as knowing where the capital letters are used and the ability to use grammar with no mistakes. Also using commas properly while joining two sentences and full stops after the completion of every single sentence makes it look professional.

Letter writing:

This topic tests a candidate’s ability to precisely and effectively communicate with the person to whom the letter is addressed. There are different kinds of letters asked in the exam. For examples, there are personal letters and formal letters. The form of each letter is determined by its kind. For example, personal letters are written in a friendly tone. Formal letters, on the other hand, are written in a formal style.

What is a Formal letter: If you’re writing to a Bank Manager, any government official, dignitary, academic official or anyone else with whom you hope to have a professional relationship, the letter should be formal.

What is an Informal letter: If you’re writing to your friend, to your relatives, a co-worker, a distant or elderly relative, the letter should probably be informal.

Key points you need to keep in mind before writing a letter in exam –

Format of the letter: In order to fetch good marks in descriptive test, the letter should be written in correct format. An examiner always looks at whether the letter is written in the correct format and gives marks accordingly.

Below is the correct format of letter writing –

ABC

A – Wing,

Sector 16, A

Film City, Noida

Pin Code -201301

Date: July 18, 2016

To,

The Branch Manager,

State Bank of India

Sector 16, Noida

Subject: ______________.

Dear Sir,

Body: Write your message here.

Yours faithfully

ABC

Note:

(i) Everything should be written on the left hand side (left aligned).

(ii) If you’re writing a formal letter, you can use “Dear Sirs,” “Dear Madams,” or “Dear Sirs/Madams.” “Respected Sirs/Madams”.

(iii) If you’re writing an informal letter, you can use “Dear” or “Hello,” as well as more informal greetings such as “Hi” or “Hey.”

(iv) During exam, you need not to mention your original name in the letter. You can use ABC or XYZ in place of your name.