PNB LBO cheat sheet

RBI was established on 1 April 1935 under the RBI Act, 1934; it was nationalised on 1 January 1949 and its headquarters is in Mumbai.

Policy rates: repo is the rate at which RBI lends to banks against government securities; reverse repo absorbs liquidity; MSF and Bank Rate sit above repo in the corridor.

CRR is the share of net demand and time liabilities kept as cash with RBI and earns no interest; SLR is held in approved securities and earns interest.

Priority sector lending target is 40% of adjusted net bank credit for domestic scheduled commercial banks; 18% for agriculture and 7.5% for micro enterprises within the weaker-section target of 12%.

Basel III minimums: CET1 4.5%, Tier 1 5.5%, total capital 8%, plus capital conservation buffer of 2.5% and leverage ratio of 3%.

Money supply: M1 = currency with public + demand deposits + other deposits with RBI; M3 (broad money) adds time deposits with banks.

NABARD, EXIM Bank, SIDBI, NHB and IIFCL are apex development financial institutions; SEBI regulates securities markets, IRDAI insurance and PFRDA pensions.

Key economic terms: fiscal deficit is total expenditure minus total receipts excluding borrowings; revenue deficit is revenue expenditure minus revenue receipts; primary deficit is fiscal deficit minus interest payments.

LBO basics: a leveraged buyout funds most of the purchase price with debt secured on the target's cash flows; LBO stands for Leveraged Buyout, and EBITDA multiples are the standard valuation anchor.

Subject-verb agreement: the verb agrees with the true subject, not a phrase in between; 'one of + plural noun' takes a singular verb.

Neither/nor and either/or take a verb agreeing with the nearer subject; 'none', 'each', 'everyone' and 'neither' alone are singular.

Articles: 'a' before consonant sounds, 'an' before vowel sounds (an hour, a university); 'the' is used for unique nouns, superlatives and rivers.

Prepositions of time: in for months, years and long periods; on for days and dates; at for clock times and fixed points.

Tenses in reported speech shift back one step; universal truths and habitual facts do not shift (He said the sun rises in the east).

Common confusables: affect (verb) vs effect (noun); principal (main/head) vs principle (rule); stationary (still) vs stationery (paper); complement vs compliment.

Conditionals: first conditional uses if + present simple, will + base verb; second conditional uses if + past simple, would + base verb; third uses if + past perfect, would have + past participle.

Idioms: 'to bite the bullet' means to endure a difficult situation; 'to burn the midnight oil' means to work late; 'a blessing in disguise' means an apparent setback that turns out well.

Error-spotting priority: check subject-verb agreement, then tense consistency, then preposition choice, then pronoun reference, then parallelism in lists.

Percentage change = (new value − old value)/old value × 100; successive changes of a% and b% give a net change of a + b + ab/100 percent.

Profit and loss: profit% = profit/CP × 100; selling price = CP × (100 + profit%)/100; discount% = discount/MP × 100.

Simple interest = P × R × T/100; compound interest = P[(1 + R/100)^T − 1]; for two years the CI − SI difference equals P(R/100)^2.

Speed: distance = speed × time; km/h to m/s multiply by 5/18; for equal distances at speeds x and y, average speed = 2xy/(x + y).

Time and work: if A does a job in x days and B in y days, together they take xy/(x + y) days; work and rate are inversely related to time.

Ratio and mixture: alligation rule gives the ratio of two components as (mean − cheaper) : (dearer − mean).

Averages: sum = average × number of items; if every item increases by k, the average rises by k; for consecutive numbers the average is the middle term.

Mensuration: area of circle = πr²; circumference = 2πr; volume of cylinder = πr²h; volume of sphere = 4/3 πr³; area of triangle = ½ × base × height.

Permutation and combination: nPr = n!/(n − r)!; nCr = n!/[r!(n − r)!]; probability = favourable outcomes / total outcomes.

Syllogism: with 'All A are B' and 'All B are C', 'All A are C' follows; 'Some A are B' converts to 'Some B are A'; 'No A is B' converts to 'No B is A'.

Direction sense: treat left/right turns relative to the facing direction; after two right turns a person faces the direction opposite to the original.

Blood relations: draw a family tree with vertical lines for generations and horizontal lines for spouses; 'brother of my father's only son' is the speaker or the speaker's brother.

Seating arrangement: in a circle facing the centre, a person's right is anticlockwise; facing outward, right is clockwise.

Coding-decoding: check letter positions A=1 to Z=26; common patterns are shifts (+1, −2), reversal, and position-sum codes.

Number series: test differences, then ratios, then squares/cubes, then alternating or prime-based patterns before assuming randomness.

Computer fundamentals: CPU = ALU + control unit + registers; RAM is volatile, ROM is non-volatile; cache is faster than RAM, which is faster than disk.

Number systems: binary to decimal by summing place values of powers of 2; one hex digit equals four binary bits; 1 KB = 1024 bytes.

Networking and shortcuts: IP addresses identify devices on a network, DNS maps names to IPs; Ctrl+C copies, Ctrl+V pastes, Ctrl+Z undoes, Ctrl+F finds.