“20-20” English Question | Crack IBPS RRB PO/Assistant 2018 Day-183

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Direction (1-10): Read the following passage carefully and answer the questions given below it.

According to the report, the gross Non-Performing Assets of Public Sector Banks are just under Rs. 4 lakh crore, and they collectively account for 90% of such rotten apples in the country’s banking portfolio. The assets of the banks which don’t perform are called Non Performing Assets or bad loans. Bank’s assets are the loans and advances given to customers. If customers don’t pay either interest or part of principal or both, the loan turns into bad loan. According to RBI, terms loans on which interest or installment of principal remain overdue for a period of more than 90 days from the end of a particular quarter is called a Non-performing Asset. GDP slowdown is a reason for rise in NPA , between early 2000’s and 2008 Indian economy were in the boom phase. During this period Banks especially Public sector banks lent extensively to corporate. However, the profits of most of the corporate dwindled due to slowdown in the global economy, the ban in mining projects, and delay in environmental related permits affecting power, iron and steel sector, volatility in prices of raw material and the shortage in availability of. This has affected their ability to pay back loans and is the most important reason behind increase in NPA of public sector banks. One of the main reasons of rising NPA is the relaxed lending norms especially for corporate honchos when their financial status and credit rating is not analyzed properly. Also, to face competition banks are hugely selling unsecured loans which attributes to the level of NPAs. 5 sectors Textile, aviation, mining, Infrastructure contributes to most of the NPA, since most of the loan given in these sector are by PSB, They account for most of the NPA. Public Sector banks provide around 80% of the credit to industries and it is this part of the credit distribution that forms a great chunk of NPA. There is a myth that main reason for rise in NPA in Public sector banks was Priority sector lending, However according to the findings of Standing Committee on Finance  NPAs in the corporate sector are far higher than those in the priority or agriculture sector. However, even the PSL sector has contributed substantially to the NPAs. As per the latest estimates by the SBI, education loans constitute 20% of its NPAs.

Restructuring of loan facility was extended to companies that were facing larger problems of over-leverage& inadequate profitability. Government has launched ‘Mission Indradhanush’ to make the working of public sector bank more transparent and professional in order to curb the menace of NPA in future. Government has also proposed to introduce Bankruptcy code. RBI introduced number of measures in last few years  which include tightening the Corporate Debt Restructuring mechanism, setting up a Joint Lenders’ Forum, prodding banks to disclose the real picture of bad loans, asking them to increase provisioning for stressed assets, introducing a 5:25 scheme where loans are to be amortized over 25 years with refinancing option after every 5  years, and empowering them to take majority control in defaulting companies under the Strategic Debt Restructuring  scheme. In the year 1991, Narsimham committee recommended many reforms to tackle NPAs. Some of them were implemented these include-To decrease the time required for settling cases. They are governed by the provisions of the Recovery of Debt Due to Banks and Financial Institutions Act, 1993..The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 – The Act permits Banks / Financial Institutions to recover their NPAs without the involvement of the Court, through acquiring and disposing of the secured assets in NPA accounts with an outstanding amount of Rs. 1 lakh and above. Credit Information Bureau 2000- It helps banks by maintaining and sharing data of individual defaulters and willful defaulters, LokAdalats – 2001-They are helpful in tackling and recovery of small loans however they are limited up to 5 lakh rupees loans only by the RBI guidelines issued in 2001. They are positive in the sense that they avoid more cases into the legal system.

The impacts of NPA are – Stress in banking sector causes less money available to fund other projects, therefore, negative impact on the larger national economy. Higher interest rates by the banks to maintain the profit margin. Redirecting funds from the good projects to the bad ones. As investments got stuck, it may result in it may result in unemployment. In the case of public sector banks, the bad health of banks means a bad return for a shareholder which means that government of India gets less money as a dividend. Balance sheet syndrome of Indian characteristics that is both the banks and the corporate sector have stressed balance sheet and causes halting of the investment-led development process. NPAs related cases add more pressure to already pending cases with the judiciary.IN order to control this there are certain long term as well as short term measures. Short term include -Review of NPA’S/Restructured advances- We need to assess the viability case by case. Viable accounts need to be given more finance for turnaround and unviable accounts should either be given to Asset Reconstruction Company or Management/ownership restructuring or permitting banks to take over the units. Bankruptcy code should be passed as soon as possible. Long term Measures includes credit appraisal, credit monitoring and efficient system of fixing accountability and analyzing trends in group leverage to which the borrowing firm belongs to: Sources/structure of equity capital-Banks need to see that promoter’s contribution is funded through equity and not debt. Banks should conduct necessary sensitivity analysis and contingency planning while appraising the projects and it should built adequate safeguards against such external factors. Strengthen credit monitoring-Develop an early warning mechanism and comprehensive Management Information System can play an important role in it. MIS must enable timely detection of problem accounts, flag early signs of delinquencies and facilitate timely information to management on these aspects. Enforce accountability- Till now lower ring officials considered accountable even though loaning decisions are taken at higher level. Address corporate governance issues in PSB. This include explicit fit and proper criteria for appointment of top executives and instituting system of an open market wide search for Chairman.

1) According to the passage which of the following are mentioned as a long term measures to curb the menace of Public Sector Banks?

1. Credit monitoring and efficient system of fixing accountability
2. By develop an early warning mechanism and comprehensive MIS in order to Strengthen credit monitoring
3. There should be review of NPA’S/Restructured advances

a) ii and iii

b) i and ii

c) i and iii

d) All except i

e) None of these

2) According to the passage what Steps have been taken by RBI and Government to curb NPA in last few years?

1. RBI introduced a 5:25 scheme where loans are to be amortized over 20 years with refinancing option after every five years.
2. With an aim to make the working of public sector bank more transparent and professional Government has launched ‘Mission Indradhanush’
3. RBI introduced the Corporate Debt Restructuring mechanism

a) i and ii

b) ii and iii

c) i and iii

d) Only ii

e) All of these

3) According to the passage what are the various reasons for the rise in NPA in recent years?

1. One of the main reasons of rising NPA is the relaxed lending norms for corporate sectors’ owners when their financial status and credit rating is not analyzed properly.
2. Another reason is slowdown in gross domestic product
3. Also rise in NPA in Public sector banks because of Priority sector lending is one of the reason

a) i and iii

b) ii and iii

c) Only ii

d) i and ii

e) None of these

4) Which of the following is not true in the context of the passage?

1. As per the report released by the SBI, education loans constitute 20% of its NPAs.
2. Sectors such as Textile, aviation, mining, Infrastructure contributes to most of the NPA.
3. Terms loans on which interest remain overdue for a period of more than ninety days is called a Non-performing Asset.

a) ii and iii

b) i and ii

c) i and iii

d) Only i& ii

e) All of these

5) According to the passage which of the following statements are mentioned as an impacts of NPAs?

a) Lower interest rates by the banks to maintain the profit margin.

b) Due to NPA banks have stressed balance sheet and causes halting of the investment-led development process.

c) Stress in banking sector causes less money available to fund other projects

d) Both b) and c)

e) Both a) and b)

6) According to the passage which of the following reforms was not recommended by Narsimham committee to tackle NPAs.

a) The Debt Recovery Tribunals 199

b) Credit Information Bureau – 2000

c) Mission Indradhanush

d) LokAdalats – 2001

e) SARFAESI Act – 2002

7) Choose the word which is most nearly the same in meaning as the word “facilitate” in bold as used in the passage.

a) Cease

b) Expedite

c) Stymie

d) Baffle

e) Intercept

8) Choose the word which is most nearly the same in meaning as the word “explicit” in bold as used in the passage.

a) Fuzzy

b) Enigmatic

c) Dubious

d) Precise

e) Cryptic

9) Choose the word which is most opposite in meaning of the word “dwindled” in bold as used in the passage.

a) Ascend

b) Subside

c) Wither

d) Ebb

e) Abate

10) Choose the word which is most opposite in meaning of the word “amortize” in bold as used in the passage.

a) Redeem

b) Liquidate

c) Trash

d) Negotiate

e) Alienate

Direction (11-15): In the Questions given below, there are two statements, each statement consists of a blank. You have to choose the option which provides the correct set of words that fits in the blanks in both the statements appropriately making them meaningful and grammatically correct.

11)

1. A number of buildings around the Parliament were still _____________ today.
2. The dispute is still _____________ five years after the negotiations began.

a) Subduing

b) Quenching

c) Smouldering

d) Blazed

e) Simmered

12)

1. I am a _____________ truth seeker, forever investigating life’s secrets
2. She resented his _____________ complaining about her cooking.

a) Ephemeral

b) Perpetual

c) Transient

d) Fleeting

e) Remitting

13)

1. She is very __________, and will believe almost anything people say to her.
2. The ____________ soldier and his equally simple sister believed this wonderful tale.

a) Skeptical

b) Apprehensive

c) Dubious

d) Equivocal

e) Credulous

14)

1. Kara’s failure to graduate from high school is sure to ___________ her ability to get a decent job.
2. The complexity and costliness of the judicial system _____________ against justice for the individual.

a) Cofound

b) Misconceive

c) Militate

d) Stumble

e) Blunder

15)

1. His colleague at the British Museum who __________ the 100 Objects book, opted for the word processor.
2. The photos are ____________ by Burns, who dubs himself “Blogger Bob” and is based in Ohio.

a) Catalogue

b) Tabulate

c) Perturbed

d) Curated

e) Embroiled

Direction (16-20): In each of the following questions on phrase has been given and it has been followed by four sentences. You have to find out on which sentences phrase has been used properly according to its meaning and mark your answer from the options denoted a), b), c), d). Mark e) as your answer of you find that the phrase has been applied properly in all sentences.

16) Pass down

1. The word being passed down from the leadership is that the polls are showing good results.
2. Please pass down my advice to Nia over there.
3. These traditional stories have been passed down from parent to child over many generations
4. He gave me a few of his old magazines to pass down to you

a) ii and iv

b) i and iii

c) i and ii

d) iii and iv

e) All are correct

17) Open out

1. We’re going to open up our kitchen by taking out a couple of walls.
2. It will be difficult for her to open out and discuss her problems freely with you
3. I will open out on his friend Fred.
4. The street opened out into a small square.

a) i and ii

b) ii and iii

c) i and iv

d) All except iii

e) All are correct

18) Speak of

1. The mayor spoke of the issue of tax increases.
2. She spoke fondly of her childhood home.
3.  This event speaks of the need for good communication.
4. His biography speaks of great loneliness.

a) iii and iv

b) ii and iv

c) i and iii

d) i and ii

e) All are correct

19) Fill out

1. The speaker filled the lecture out with a slide show.
2. In time he filled out and became rather more shapely
3. Please fill the glass out the top.
4. When I was sick, my colleague filled out.

a) i and iii

b) ii and iii

c) i and ii

d) ii and iv

e) All are correct

20) Fan out

1. Fan out all the pages so that I can figure out what’s missing.
2. Fan out and search the entire neighborhood!
3.  The searchers fanned out, looking for the child lost in the woods
4. The trails fanned out and soon we were all separated.

a) i and ii

b) iii and iv

c) i and iii

d) All except ii

e) All are correct

Answers:

Direction (1-10):

1) Answer: b)

It is clearly mentioned in para 3-Long term Measures includes credit appraisal, credit monitoring and efficient system of fixing accountability and analyzing trends in group leverage to which the borrowing firm belongs to: Develop an early warning mechanism and comprehensive Management Information System can play an important role in it. MIS must enable timely detection of problem accounts, flag early signs of delinquencies and facilitate timely information to management on these aspects

2) Answer: b)

It is clearly mentioned in para 2- Government has launched ‘Mission Indradhanush’ to make the working of public sector bank more transparent and professional in order to curb the menace of NPA in future. RBI introduced number of measures in last few years which include tightening the Corporate Debt Restructuring mechanism, setting up a Joint Lenders’ Forum, introducing a 5:25 scheme where loans are to be amortized over 25 years with refinancing option after every 5 years.

3) Answer: d)

It is clearly mentioned in para 1-GDP slowdown is a reason for rise in NPA, between early 2000’s and 2008 Indian economy were in the boom phase. During this period Banks especially Public sector banks lent extensively to corporate. One of the main reasons of rising NPA is the relaxed lending norms especially for corporate honchos when their financial status and credit rating is not analyzed properly.

4) Answer: e)

It is mentioned in the para 1-According to RBI, terms loans on which interest or installment of principal remain overdue for a period of more than 90 days from the end of a particular quarter is called a Non-performing Asset. As per the latest estimates by the SBI, education loans constitute 20% of its NPAs.5 sectors Textile, aviation, mining, Infrastructure contributes to most of the NPA, since most of the loan given in these sector are by PSB, They account for most of the NPA.

5) Answer: d)

It is mentioned in the para 3-The impacts of NPA are -Stress in banking sector causes less money available to fund other projects, therefore, negative impact on the larger national economy. Higher interest rates by the banks to maintain the profit margin. Redirecting funds from the good projects to the bad ones. Balance sheet syndrome of Indian characteristics that is both the banks and the corporate sector have stressed balance sheet and causes halting of the investment-led development process.

6) Answer: c)

It is mentioned in the para 3-. In the year 1991, Narsimham committee recommended many reforms to tackle NPAs. Some of them were implemented these include-To decrease the time required for settling cases. They are governed by the provisions of the Recovery of Debt Due to Banks and Financial Institutions Act, 1993.The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, Credit Information Bureau 2000- It helps banks by maintaining and sharing data of individual defaulters and willful defaulters, LokAdalats – 2001-They are helpful in tackling and recovery of small loans however they are limited up to 5 lakh rupees loans only by the RBI guidelines issued in 2001.

7) Answer: b)

The meaning of facilitate is to make (an action or process) easier

8) Answer: d)

The meaning of explicit is to stated clearly and in detail

9) Answer: a)

The meaning of dwindled is to diminish gradually in size, amount, or strength

10) Answer: c)

The meaning of amortize is to reduce or pay off a debt with regular payments.

Direction (11-15):

11) Answer: c)

The meaning of “smouldering” is “burn slowly with smoke but no flame”

12) Answer: b)

The meaning of “perpetual” is “never ending or changing”

13) Answer: e)

The meaning of “credulous” is “over-trusting or easy led”

14) Answer: c)

The meaning of “militate” is “tend to prevent or work against”

15) Answer: d)

The meaning of “curated” is “to arrange systematically, order”

Direction (16-20):

16) Answer: b)

The meaning of “pass down” is to transfer something or to bestow something to someone, and the phrase has been applied properly in i and iii sentences

17) Answer: d)

The meaning of “open out” is to make or become extended or to reveal and the phrase has been applied properly in i, ii and iv sentences

18) Answer: b)

The meaning of “speak up” is to speak about someone or something or to give an indication and the phrase has been applied properly in ii and iv sentences

19) Answer: c)

The meaning of “fill out” is to cause something to become larger, fuller, or fatter and the phrase has been applied properly in i and ii sentences

20) Answer: e)

The meaning of “fan out” is to spread out over a wide area and the phrase has been applied properly in all the sentences

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English New Pattern Questions 

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