spot_img

[FREE PDF] Principles and Practices of Banking in Hindi | Module B | Most imp Questions

Do you ever feel overwhelmed staring at the vast JAIIB syllabus, wondering where to even begin? You’re not alone! Most aspirants struggle with identifying which modules matter most and which questions are exam favorites.

In today’s Day 0 of our JAIIB Crash Course for Principles and Practices of Banking (PPB), we kick off with Syllabus Priority Strategy and dive deep into the top-scoring questions from Module B. Whether you’re a first-time candidate or re-attempting the exam, this session lays the perfect foundation to plan your study schedule and maximize your score in minimal time.

📚 JAIIB Study Resources 📚

🎥 Full Course Videos in Hindi-English
👉 Check Here

📝 JAIIB PPB Short Notes (Part 1)
👉 Check Here

📖 JAIIB Exam Free Study Material
👉 Check Here

📄 JAIIB Study Material PDF Notes 2025
👉 Get Tests Here

🔍 How to Prepare for PPB
👉 Check Here

We break down:

  • Contract of Guarantee (Section 126)
  • Term Loan & Working Capital Assessment
  • Letter of Credit Parties & Undertakings
  • Nayak & Tandon Committee Methods
  • NPA Provisioning & Cash Credit Logic

Who’s this for?
Bankers preparing for JAIIB PPB, anyone seeking clarity in Module B, and those short on time but high on ambition!

👇 Watch the video, engage in the comments, and let’s master PPB together.

🎥 Embed YouTube Video

👉 Before we dive in, watch this video for a complete breakdown:

Module B Kickoff – Contract of Guarantee (00:01:25)

3 parties involved:

  • Creditor – the one giving money
  • Principal Debtor – the one borrowing
  • Surety – the one guaranteeing repayment

When the debtor defaults, the surety pays, and then exercises the Right of Subrogation, gaining creditor-like rights.

Understanding Letter of Credit – Role of Issuing Bank (00:05:06)

Once documents are presented correctly within 21 days of shipment, the issuing bank gives an unconditional undertaking to honor the payment.

Term Loan Basics & DSCR Logic (00:07:47)

  • Disbursed in one lump sum
  • Repayable in 3–10 years
  • Used for fixed assets like plant & machinery

Banks assess repayment using DSCR (Debt Service Coverage Ratio).

Working Capital Explained – Gross vs Net (00:09:29)

  • Gross Working Capital = Total Current Assets
  • Net Working Capital = Current Assets – Current Liabilities

Tandon & Nayak Committee Methods (00:11:33 – 00:13:30)

Tandon Method I:

  • Bank Finance = WCG – 25% Margin
  • Min Current Ratio = 1.17:1

Tandon Method II:

  • Bank Finance = 75% of Total Current Assets
  • Min Current Ratio = 1.33:1

Nayak Committee:

  • 25% of turnover = Gross WC
  • 5% Margin → 20% Limit sanctioned

NPA Provisioning Calculation (00:44:15)

Scenario: ₹40 lakh loan, ₹20 lakh secured, ₹20 lakh unsecured

ECGC cover: 60% of ₹20 lakh → ₹12 lakh (excluded from provision)

Provision: ₹8 lakh on secured @40% (DF2) + ₹8 lakh on unsecured @100% = ₹16 lakh

Fund vs Non-Fund Based Facilities (00:28:59 & 00:50:24)

Fund-Based:

  • Cash Credit, Term Loans
  • Involves actual disbursement

Non-Fund-Based:

  • LCs, Bank Guarantees
  • Contingent liabilities only

MCLR, External Benchmark, Base Rate Review (00:34:30 – 00:53:58)

MCLR: Started 1 April 2016

  • Includes: Marginal cost of funds, CRR carry, Operating costs
  • Excludes: Profit margin

External Benchmarks: Repo, 3M/6M T-Bills

[FREE PDF] JAIIB PPB EXAM SPECIAL | Important Concepts + PYQs Explained!

Letter of Credit Types Explained (00:40:57)

  • Irrevocable LC: Can’t be changed without beneficiary’s consent
  • Transferable LC: Transferable only once
  • Confirmed LC: Confirming bank adds its guarantee
  • Revolving LC: Only used portion restored, not full limit

Conclusion

Key takeaways:

  • Focus on Module B, then A, then C
  • Master concepts: Guarantee, LC, WC Assessment
  • Practice calculation questions: Provisioning, Nayak Method

🎯 Now it’s your turn! Watch the video, post your answers in the comments, and share this with your JAIIB study group!

📥 Download PDF Notes

Get the full session’s summary + MCQ explanations in a single handy PDF:

👉 Download PDF Notes

Need all sessions? WhatsApp “JAIIB PPB” to 8360944207

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

🤩 🥳 JAIIB NEW BATCH START 🥳 🤩spot_img
🤩 🥳 JAIIB CAIIB CLASSES 🥳 🤩spot_img

POPULAR POSTS

RELATED ARTICLES

Continue to the category

[FREE PDF] IIBF Certification TIRM Questions | Chapter 5 Part 1

Have you ever wondered what causes bank collapses, financial instability, or why some banks sail through crises while others sink? The answer often lies in...

[FREE PDF] CAIIB BFM | Module D Previous Year Questions + New Pattern MCQ’s

Are you gearing up for the CAIIB exam and feeling overwhelmed by complex topics like Basel III, capital adequacy, and provisioning for NPAs? Don’t...

[FREE PDF] CAIIB BFM Module D Questions | Important Questions for JUNE 2025

Are you ready to take your understanding of banking regulations and financial management to the next level? If you’re preparing for the CAIIB BFM...

[FREE PDF] IIBF TIRM Certification | Chapter 13 | Important Questions with Examples

💭 Ever wondered how banks move crores within seconds, or how transactions get settled in real time with zero manual paperwork? In today’s high-speed financial...