Allahabad Bank e-Learning Project

IRT, Panchkula

ASSOCIATE
An entity in which the parent banks has an equity stake exceeding 30 pc but less than 50 pc of the paid up capital of the investee entity ACCEPTANCE An obligation by a bank to pay on maturity the face value of a Bill of Exchange, normally covering the sale of goods ACTUARY A person who calculates the RISK associated with various kinds of LON-TERM INSURANCE policies. In particular, an actuary calculates the probability that someone of a specific age and profile will die within a given period of time. ADR American Depository receipt, a certificate issued by an American Bank to an American investor in lieu of a Foreign Security. These are traded in USA as if they were domestic STOCKs. The issuer arranges for the dividends to be paid in Dollars AD VALOREM Something ( like tax ) that is based on the VALUE OF GOODS and not on their quantity. Thus VAT is an ad valorem tax, so too is sales tax. AFFILIATE A COMPANY that is partly owned by another company. Mon-corporate entities that have close relations with each other are said to be affiliates. Individual Trade Unions, for instance, are affiliates to the central Organisation. ANNUITY An INVESTMENT that yields a fixed annual income for the investor until his or her death. The payment of an annuity used to be annual, but is now frequently more frequent APPROPRIATION Set for a specific purpose ARBITRAGE This is culled from various sources by IRT Panchkula. Consult HO circulars for finality.

Allahabad Bank e-Learning Project

IRT, Panchkula The buying and selling of goods or services on different markets to take advantage of variations on prices. The markets may be in different countries or different markets in the same country. ARBITRATION A Procedure For Solving Commercial Disputes That Aoids Going To The Court Of Law. The parties to the dispute turn to an independent third party whose judgment they agree in advance to accept. ARBITRATOR A person who acts as an intermediary in a case of ARBITRATION.. ARTICLES OF ASSOCIATION The set of rules by which a company is run. The articles states, for instance, what percentage of the shareholders are required to vote in favour of a major change before they can be put into effect. Such changes frequently require more than a simple majority. The AOA are lodged with the relevant authority at the time when a company is first registered. As such they become a part of the public record ASSURANCE Usually referred as Life Assurance, a form of INSURANCE against the risk of something which is assured of happening, but where the timings is unsure , such as death. ANBC Adjusted Net Bank Credit Net Bank Credit + Investments made in non-SLR bonds held in HTM Credit equivalent amount of Off-Balance sheet exposure, Whichever is higher as on march of previous year BANK HOLDING COMPANY ( BHC ) There are different models available across the world for conducting the business of banking and finance. The BHC is one such model. Under this, BHCs are the companies that own one or more banks. These companies can make only limited investment in non banking companies This is culled from various sources by IRT Panchkula. Consult HO circulars for finality. Or

Allahabad Bank e-Learning Project

IRT, Panchkula The other features of BHCs in USA are, they have the power ( directly or indirectly ) to vote 25 % of any class of voting securities of a banks and controls , in any manner, the election of the majority of directors or trustees of the Bank.. BHCs operate under the several restrictions e.g they are not allowed to invest in non -banking related activities except under certain conditions. They are also required to be non-operating in nature

BCSBI
It is a collaborative effort between the RBI and the Banking Industry with the objective of promoting good banking practices by setting minimum standards , increasing transparency, achieving higher operating standards and above all , promoting cordial banker customer relationships which would foster confidence of the common man in the banking system

Broadband
Minimum downloading speed of 256 kbps / second BALANCE OF PAYMENT The record of countrys transactions with the outside world. The CURRENT ACCOUNT of the Balance of Payments consists VISIBLE TRADE in GOODS, invisible trade in SERVICES, private transfer payments such as money SENT home by the nationals working abroad, and official transfers, such as payments to international organization. The CAPITAL ACCOUNT consist of LONG-TERM & SHORT-TERM transactions relating to the countrys Assets & Liabilities. Adding the current to the capital account gives the overall BALANCE which should be matched by net monetary movements and change in RESERVES BALANCE OF TRADE A statement of countrys trading account with the rest of the world. This covers the import and export of Goods and services BREAK EVEN POINT

This is culled from various sources by IRT Panchkula. Consult HO circulars for finality.

Allahabad Bank e-Learning Project

IRT, Panchkula The point in the life of a business where its REVENUE exceed its COSTS. Any new ventures BUSINESS PLAN should contain a clear analysis of when its break -even point will be achieved, and how much it will cost to get there BRIDGE LOAN A short term loan designed to act as a bridge between an item of expenditure and REVENUE to meet that expenditure.

This is culled from various sources by IRT Panchkula. Consult HO circulars for finality.