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Read the following passage carefully and answer the questions given at the end.
Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With India's economic flu hitting corporate lending, banks have cranked up efforts to tap into the country's housing loan demand, which has proven to be brick-hard by comparison.
Demand for homes, and loans, has been stoked by a persisting housing shortage as
long-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asia’s third-biggest economy.
With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.
"This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry," said Anil Verma, BOI's chief financial officer.
BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.
State Bank of India (SBI), which dethroned HDFC as India's top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.
SBI's home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.
Two of the country’s largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.
The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.
Brokerage Jefferies expects HDFC’s NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFC's overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.
For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.
For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.
It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.
"We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us," HDFC CEO Keki Mistry said in an interview last month.
HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.
HDFC's stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.
Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.
SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.
"With 60 per cent of India's population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans," HDFC's Mistry said.
While industry players say there is enough business to go around, some analysts are not as hopeful.
"We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity," wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.
Q.
Which of the following can be concluded from the passage?
  • a)
    HDFC's stock rates have been falling over the last decade.
  • b)
    SBI accounts for one-fourth of the total loans provided in India.
  • c)
    The LIC Housing Finance is expected to hike its home loan rates by 20 percent this year.
  • d)
    Most of the banks in India are setting up branches that only sell auto and home loans.
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
Read the following passage carefully and answer the questions given at...
Option 1 is contradicted by the statement, “HDFC's stock has risen more than five times over the last decade...”. Eliminate option 1.
Option 3 cannot be concluded due to insufficient data provided in the passage. Eliminate option 3.
The passage says that only BOI is setting up branches that only sell auto and home loans. Thus, the same cannot be said about other banks too. Hence, option 4 can be eliminated.
Option 2 is precisely stated in statement, “SBI, which accounts for a quarter of all loans in India ...”
Hence, the correct answer is option 2.
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Read the following passage carefully and answer the questions given at the end.Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With Indias economic flu hitting corporate lending, banks have cranked up efforts to tap into the countrys housing loan demand, which has proven to be brick-hard by comparison.Demand for homes, and loans, has been stoked by a persisting housing shortage aslong-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asias third-biggest economy.With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry, said Anil Verma, BOIs chief financial officer.BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.State Bank of India (SBI), which dethroned HDFC as Indias top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.SBIs home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.Two of the countrys largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.Brokerage Jefferies expects HDFCs NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFCs overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us, HDFC CEO Keki Mistry said in an interview last month.HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.HDFCs stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.With 60 per cent of Indias population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans, HDFCs Mistry said.While industry players say there is enough business to go around, some analysts are not as hopeful.We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity, wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.Q.Which of the following statements is incorrect according to the passage?

Read the following passage carefully and answer the questions given at the end.Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With Indias economic flu hitting corporate lending, banks have cranked up efforts to tap into the countrys housing loan demand, which has proven to be brick-hard by comparison.Demand for homes, and loans, has been stoked by a persisting housing shortage aslong-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asias third-biggest economy.With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry, said Anil Verma, BOIs chief financial officer.BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.State Bank of India (SBI), which dethroned HDFC as Indias top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.SBIs home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.Two of the countrys largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.Brokerage Jefferies expects HDFCs NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFCs overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us, HDFC CEO Keki Mistry said in an interview last month.HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.HDFCs stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.With 60 per cent of Indias population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans, HDFCs Mistry said.While industry players say there is enough business to go around, some analysts are not as hopeful.We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity, wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.Q.Based on the information given in the passage, which of the following is not a strategy adopted by banks to grow their home loans?

When people react to their experiences with particular authorities, those authorities and the organizations or institutions that they represent often benefit if the people involved begin with high levels of commitment to the organization or institution represented by the authorities. First, in his studies of people's attitudes toward political and legal institutions, Tyler found that attitudes after an experience with the institution were strongly affected by prior attitudes. Single experiences influence post experience loyalty but certainly do not overwhelm the relationship between pre-experience and post experience loyalty. Thus, the best predictor of loyalty after an experience is usually loyalty before that experience.Second, people with prior loyalty to the organization or institution judge their dealings with the organization's or institution's authorities to be fairer than do those with less prior loyalty, either because they are more fairly treated or because they interpret equivalent treatment as fairer.Although high levels of prior organizational or institutional commitment are generally beneficial to the organization or institution, under certain conditions high levels of prior commitment may actually sow the seeds of reduced commitment. When previously committed individuals feel that they were treated unfavourably or unfairly during some experience with the organization or institution, they may show an especially sharp decline in commitment. Two studies were designed to test this hypothesis, which, if confirmed, would suggest that organizational or institutional commitment has risks, as well as benefits. At least three psychological models offer predictions of how individuals' reactions may vary as a function of (1) their prior level of commitment and (2) the favorability of the encounter with the organization or institution. Favorability of the encounter is determined by the outcome of the encounter and the fairness or appropriateness of the procedures used to allocate outcomes during the encounter. First, the instrumental prediction is that because people are mainly concerned with receiving desired outcomes from their encounters with organizations, changes in their level of commitment will depend primarily on the favorability of the encounter. Second, the assimilation prediction is that individuals' prior attitudes predispose them to react in a way that is consistent with their prior attitudes.The third prediction, derived from the group-value model of justice, pertains to how people with high prior commitment will react when they feel that they have been treated unfavorably or unfairly during some encounter with the organization or institution. Fair treatment by the other party symbolizes to people that they are being dealt with in a dignified and respectful way, thereby bolstering their sense of self-identity and self worth. However, people will become quite distressed and react quite negatively if they feel that they have been treated unfairly by the other party to the relationship. The group-value model suggests that people value the information they receive that helps them to define themselves and to view themselves favorably. According to the instrumental viewpoint, people are primarily concerned with the more material or tangible resources received from the relationship. Empirical support for the group-value model has implications for a variety of important issues, including the determinants of commitment, satisfaction, organizational citizenship, and rule following. Determinants of procedural fairness include structural or interpersonal factors. For example, structural determinants refer to such things as whether decisions were made by neutral, fact finding authorities who used legitimate decision making criteria. The primary purpose of the study was to examine the interactive effect of individuals (1) commitment to an organization or institution prior to some encounter and (2) perceptions of how fairly they were treated during the encounter, on the change in their level of commitment. A basic assumption of the group-value model is that people generally value their relationships with people, groups, organizations, and institutions and therefore value fair treatment from the other party to the relationship. Specifically, highly committed members should have especially negative reactions to feeling that they were treated unfairly, more so than (1) less-committed group members or (2) highly committed members who felt that they were fairly treated.The prediction that people will react especially negatively when they previously felt highly committed but felt that they were treated unfairly also is consistent with the literature on psychological contracts. Rousseau suggested that, over time, the members of work organizations develop feelings of entitlement, i.e., perceived obligations that their employers have toward them. Those who are highly committed to the organization believe that they are fulfilling their contract obligations. However, if the organization acted unfairly, then highly committed individuals are likely to believe that the organization did not live up to its end of the bargain.For summarizing the passage, which of the following is most appropriate

When people react to their experiences with particular authorities, those authorities and the organizations or institutions that they represent often benefit if the people involved begin with high levels of commitment to the organization or institution represented by the authorities. First, in his studies of people's attitudes toward political and legal institutions, Tyler found that attitudes after an experience with the institution were strongly affected by prior attitudes. Single experiences influence post experience loyalty but certainly do not overwhelm the relationship between pre-experience and post experience loyalty. Thus, the best predictor of loyalty after an experience is usually loyalty before that experience. Second, people with prior loyalty to the organization or institution judge their dealings with the organization's or institution's authorities to be fairer than do those with less prior loyalty, either because they are more fairly treated or because they interpret equivalent treatment as fairer.Although high levels of prior organizational or institutional commitment are generally beneficial to the organization or institution, under certain conditions high levels of prior commitment may actually sow the seeds of reduced commitment. When previously committed individuals feel that they were treated unfavourably or unfairly during some experience with the organization or institution, they may show an especially sharp decline in commitment. Two studies were designed to test this hypothesis, which, if confirmed, would suggest that organizational or institutional commitment has risks, as well as benefits. At least three psychological models offer predictions of how individuals' reactions may vary as a function of (1) their prior level of commitment and (2) the favorability of the encounter with the organization or institution. Favorability of the encounter is determined by the outcome of the encounter and the fairness or appropriateness of the procedures used to allocate outcomes during the encounter. First, the instrumental prediction is that because people are mainly concerned with receiving desired outcomes from their encounters with organizations, changes in their level of commitment will depend primarily on the favorability of the encounter. Second, the assimilation prediction is that individuals' prior attitudes predispose them to react in a way that is consistent with their prior attitudes.The third prediction, derived from the group-value model of justice, pertains to how people with high prior commitment will react when they feel that they have been treated unfavorably or unfairly during some encounter with the organization or institution. Fair treatment by the other party symbolizes to people that they are being dealt with in a dignified and respectful way, thereby bolstering their sense of self-identity and self-worth. However, people will become quite distressed and react quite negatively if they feel that they have been treated unfairly by the other party to the relationship. The group-value model suggests that people value the information they receive that helps them to define themselves and to view themselves favorably. According to the instrumental viewpoint, people are primarily concerned with the more material or tangible resources received from the relationship. Empirical support for the group-value model has implications for a variety of important issues, including the determinants of commitment, satisfaction, organizational citizenship, and rule following. Determinants of procedural fairness include structural or interpersonal factors. For example, structural determinants refer to such things as whether decisions were made by neutral, fact-finding authorities who used legitimate decision-making criteria. The primary purpose of the study was to examine the interactive effect of individuals (1) commitment to an organization or institution prior to some encounter and (2) perceptions of how fairly they were treated during the encounter, on the change in their level of commitment. A basic assumption of the group-value model is that people generally value their relationships with people, groups, organizations, and institutions and therefore value fair treatment from the other party to the relationship. Specifically, highly committed members should have especially negative reactions to feeling that they were treated unfairly, more so than (1) less-committed group members or (2) highly committed members who felt that they were fairly treated.The prediction that people will react especially negatively when they previously felt highly committed but felt that they were treated unfairly also is consistent with the literature on psychological contracts. Rousseau suggested that, over time, the members of work organizations develop feelings of entitlement, i.e., perceived obligations that their employers have toward them. Those who are highly committed to the organization believe that they are fulfilling their contract obligations. However, if the organization acted unfairly, then highly committed individuals are likely to believe that the organization did not live up to its end of the bargain.For summarizing the passage, which of the following is most appropriate

When people react to their experiences with particular authorities, those authorities and the organizations or institutions that they represent often benefit if the people involved begin with high levels of commitment to the organization or institution represented by the authorities. First, in his studies of people's attitudes toward political and legal institutions, Tyler found that attitudes after an experience with the institution were strongly affected by prior attitudes. Single experiences influence post experience loyalty but certainly do not overwhelm the relationship between pre-experience and post experience loyalty. Thus, the best predictor of loyalty after an experience is usually loyalty before that experience. Second, people with prior loyalty to the organization or institution judge their dealings with the organization's or institution's authorities to be fairer than do those with less prior loyalty, either because they are more fairly treated or because they interpret equivalent treatment as fairer.Although high levels of prior organizational or institutional commitment are generally beneficial to the organization or institution, under certain conditions high levels of prior commitment may actually sow the seeds of reduced commitment. When previously committed individuals feel that they were treated unfavourably or unfairly during some experience with the organization or institution, they may show an especially sharp decline in commitment. Two studies were designed to test this hypothesis, which, if confirmed, would suggest that organizational or institutional commitment has risks, as well as benefits. At least three psychological models offer predictions of how individuals' reactions may vary as a function of (1) their prior level of commitment and (2) the favorability of the encounter with the organization or institution. Favorability of the encounter is determined by the outcome of the encounter and the fairness or appropriateness of the procedures used to allocate outcomes during the encounter. First, the instrumental prediction is that because people are mainly concerned with receiving desired outcomes from their encounters with organizations, changes in their level of commitment will depend primarily on the favorability of the encounter. Second, the assimilation prediction is that individuals' prior attitudes predispose them to react in a way that is consistent with their prior attitudes.The third prediction, derived from the group-value model of justice, pertains to how people with high prior commitment will react when they feel that they have been treated unfavorably or unfairly during some encounter with the organization or institution. Fair treatment by the other party symbolizes to people that they are being dealt with in a dignified and respectful way, thereby bolstering their sense of self-identity and self-worth. However, people will become quite distressed and react quite negatively if they feel that they have been treated unfairly by the other party to the relationship. The group-value model suggests that people value the information they receive that helps them to define themselves and to view themselves favorably. According to the instrumental viewpoint, people are primarily concerned with the more material or tangible resources received from the relationship. Empirical support for the group-value model has implications for a variety of important issues, including the determinants of commitment, satisfaction, organizational citizenship, and rule following. Determinants of procedural fairness include structural or interpersonal factors. For example, structural determinants refer to such things as whether decisions were made by neutral, fact-finding authorities who used legitimate decision-making criteria. The primary purpose of the study was to examine the interactive effect of individuals (1) commitment to an organization or institution prior to some encounter and (2) perceptions of how fairly they were treated during the encounter, on the change in their level of commitment. A basic assumption of the group-value model is that people generally value their relationships with people, groups, organizations, and institutions and therefore value fair treatment from the other party to the relationship. Specifically, highly committed members should have especially negative reactions to feeling that they were treated unfairly, more so than (1) less-committed group members or (2) highly committed members who felt that they were fairly treated.The prediction that people will react especially negatively when they previously felt highly committed but felt that they were treated unfairly also is consistent with the literature on psychological contracts. Rousseau suggested that, over time, the members of work organizations develop feelings of entitlement, i.e., perceived obligations that their employers have toward them. Those who are highly committed to the organization believe that they are fulfilling their contract obligations. However, if the organization acted unfairly, then highly committed individuals are likely to believe that the organization did not live up to its end of the bargain.There is only one term in the left column which matches with the options given in the second column. Identify the correct pair from the following table

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Read the following passage carefully and answer the questions given at the end.Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With Indias economic flu hitting corporate lending, banks have cranked up efforts to tap into the countrys housing loan demand, which has proven to be brick-hard by comparison.Demand for homes, and loans, has been stoked by a persisting housing shortage aslong-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asias third-biggest economy.With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry, said Anil Verma, BOIs chief financial officer.BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.State Bank of India (SBI), which dethroned HDFC as Indias top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.SBIs home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.Two of the countrys largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.Brokerage Jefferies expects HDFCs NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFCs overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us, HDFC CEO Keki Mistry said in an interview last month.HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.HDFCs stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.With 60 per cent of Indias population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans, HDFCs Mistry said.While industry players say there is enough business to go around, some analysts are not as hopeful.We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity, wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.Q.Which of the following can be concluded from the passage?a)HDFCs stock rates have been falling over the last decade.b)SBI accounts for one-fourth of the total loans provided in India.c)The LIC Housing Finance is expected to hike its home loan rates by 20 percent this year.d)Most of the banks in India are setting up branches that only sell auto and home loans.Correct answer is option 'B'. 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Read the following passage carefully and answer the questions given at the end.Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With Indias economic flu hitting corporate lending, banks have cranked up efforts to tap into the countrys housing loan demand, which has proven to be brick-hard by comparison.Demand for homes, and loans, has been stoked by a persisting housing shortage aslong-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asias third-biggest economy.With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry, said Anil Verma, BOIs chief financial officer.BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.State Bank of India (SBI), which dethroned HDFC as Indias top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.SBIs home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.Two of the countrys largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.Brokerage Jefferies expects HDFCs NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFCs overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us, HDFC CEO Keki Mistry said in an interview last month.HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.HDFCs stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.With 60 per cent of Indias population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans, HDFCs Mistry said.While industry players say there is enough business to go around, some analysts are not as hopeful.We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity, wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.Q.Which of the following can be concluded from the passage?a)HDFCs stock rates have been falling over the last decade.b)SBI accounts for one-fourth of the total loans provided in India.c)The LIC Housing Finance is expected to hike its home loan rates by 20 percent this year.d)Most of the banks in India are setting up branches that only sell auto and home loans.Correct answer is option 'B'. Can you explain this answer? for CAT 2025 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Read the following passage carefully and answer the questions given at the end.Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With Indias economic flu hitting corporate lending, banks have cranked up efforts to tap into the countrys housing loan demand, which has proven to be brick-hard by comparison.Demand for homes, and loans, has been stoked by a persisting housing shortage aslong-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asias third-biggest economy.With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry, said Anil Verma, BOIs chief financial officer.BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.State Bank of India (SBI), which dethroned HDFC as Indias top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.SBIs home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.Two of the countrys largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.Brokerage Jefferies expects HDFCs NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFCs overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us, HDFC CEO Keki Mistry said in an interview last month.HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.HDFCs stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.With 60 per cent of Indias population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans, HDFCs Mistry said.While industry players say there is enough business to go around, some analysts are not as hopeful.We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity, wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.Q.Which of the following can be concluded from the passage?a)HDFCs stock rates have been falling over the last decade.b)SBI accounts for one-fourth of the total loans provided in India.c)The LIC Housing Finance is expected to hike its home loan rates by 20 percent this year.d)Most of the banks in India are setting up branches that only sell auto and home loans.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following passage carefully and answer the questions given at the end.Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With Indias economic flu hitting corporate lending, banks have cranked up efforts to tap into the countrys housing loan demand, which has proven to be brick-hard by comparison.Demand for homes, and loans, has been stoked by a persisting housing shortage aslong-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asias third-biggest economy.With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry, said Anil Verma, BOIs chief financial officer.BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.State Bank of India (SBI), which dethroned HDFC as Indias top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.SBIs home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.Two of the countrys largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.Brokerage Jefferies expects HDFCs NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFCs overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us, HDFC CEO Keki Mistry said in an interview last month.HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.HDFCs stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.With 60 per cent of Indias population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans, HDFCs Mistry said.While industry players say there is enough business to go around, some analysts are not as hopeful.We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity, wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.Q.Which of the following can be concluded from the passage?a)HDFCs stock rates have been falling over the last decade.b)SBI accounts for one-fourth of the total loans provided in India.c)The LIC Housing Finance is expected to hike its home loan rates by 20 percent this year.d)Most of the banks in India are setting up branches that only sell auto and home loans.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Read the following passage carefully and answer the questions given at the end.Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With Indias economic flu hitting corporate lending, banks have cranked up efforts to tap into the countrys housing loan demand, which has proven to be brick-hard by comparison.Demand for homes, and loans, has been stoked by a persisting housing shortage aslong-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asias third-biggest economy.With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry, said Anil Verma, BOIs chief financial officer.BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.State Bank of India (SBI), which dethroned HDFC as Indias top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.SBIs home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.Two of the countrys largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.Brokerage Jefferies expects HDFCs NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFCs overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us, HDFC CEO Keki Mistry said in an interview last month.HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.HDFCs stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.With 60 per cent of Indias population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans, HDFCs Mistry said.While industry players say there is enough business to go around, some analysts are not as hopeful.We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity, wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.Q.Which of the following can be concluded from the passage?a)HDFCs stock rates have been falling over the last decade.b)SBI accounts for one-fourth of the total loans provided in India.c)The LIC Housing Finance is expected to hike its home loan rates by 20 percent this year.d)Most of the banks in India are setting up branches that only sell auto and home loans.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of Read the following passage carefully and answer the questions given at the end.Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With Indias economic flu hitting corporate lending, banks have cranked up efforts to tap into the countrys housing loan demand, which has proven to be brick-hard by comparison.Demand for homes, and loans, has been stoked by a persisting housing shortage aslong-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asias third-biggest economy.With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry, said Anil Verma, BOIs chief financial officer.BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.State Bank of India (SBI), which dethroned HDFC as Indias top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.SBIs home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.Two of the countrys largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.Brokerage Jefferies expects HDFCs NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFCs overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us, HDFC CEO Keki Mistry said in an interview last month.HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.HDFCs stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.With 60 per cent of Indias population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans, HDFCs Mistry said.While industry players say there is enough business to go around, some analysts are not as hopeful.We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity, wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.Q.Which of the following can be concluded from the passage?a)HDFCs stock rates have been falling over the last decade.b)SBI accounts for one-fourth of the total loans provided in India.c)The LIC Housing Finance is expected to hike its home loan rates by 20 percent this year.d)Most of the banks in India are setting up branches that only sell auto and home loans.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Read the following passage carefully and answer the questions given at the end.Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With Indias economic flu hitting corporate lending, banks have cranked up efforts to tap into the countrys housing loan demand, which has proven to be brick-hard by comparison.Demand for homes, and loans, has been stoked by a persisting housing shortage aslong-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asias third-biggest economy.With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry, said Anil Verma, BOIs chief financial officer.BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.State Bank of India (SBI), which dethroned HDFC as Indias top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.SBIs home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.Two of the countrys largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.Brokerage Jefferies expects HDFCs NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFCs overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us, HDFC CEO Keki Mistry said in an interview last month.HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.HDFCs stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.With 60 per cent of Indias population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans, HDFCs Mistry said.While industry players say there is enough business to go around, some analysts are not as hopeful.We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity, wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.Q.Which of the following can be concluded from the passage?a)HDFCs stock rates have been falling over the last decade.b)SBI accounts for one-fourth of the total loans provided in India.c)The LIC Housing Finance is expected to hike its home loan rates by 20 percent this year.d)Most of the banks in India are setting up branches that only sell auto and home loans.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Read the following passage carefully and answer the questions given at the end.Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With Indias economic flu hitting corporate lending, banks have cranked up efforts to tap into the countrys housing loan demand, which has proven to be brick-hard by comparison.Demand for homes, and loans, has been stoked by a persisting housing shortage aslong-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asias third-biggest economy.With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry, said Anil Verma, BOIs chief financial officer.BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.State Bank of India (SBI), which dethroned HDFC as Indias top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.SBIs home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.Two of the countrys largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.Brokerage Jefferies expects HDFCs NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFCs overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us, HDFC CEO Keki Mistry said in an interview last month.HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.HDFCs stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.With 60 per cent of Indias population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans, HDFCs Mistry said.While industry players say there is enough business to go around, some analysts are not as hopeful.We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity, wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.Q.Which of the following can be concluded from the passage?a)HDFCs stock rates have been falling over the last decade.b)SBI accounts for one-fourth of the total loans provided in India.c)The LIC Housing Finance is expected to hike its home loan rates by 20 percent this year.d)Most of the banks in India are setting up branches that only sell auto and home loans.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Read the following passage carefully and answer the questions given at the end.Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With Indias economic flu hitting corporate lending, banks have cranked up efforts to tap into the countrys housing loan demand, which has proven to be brick-hard by comparison.Demand for homes, and loans, has been stoked by a persisting housing shortage aslong-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asias third-biggest economy.With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry, said Anil Verma, BOIs chief financial officer.BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.State Bank of India (SBI), which dethroned HDFC as Indias top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.SBIs home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.Two of the countrys largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.Brokerage Jefferies expects HDFCs NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFCs overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us, HDFC CEO Keki Mistry said in an interview last month.HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.HDFCs stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.With 60 per cent of Indias population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans, HDFCs Mistry said.While industry players say there is enough business to go around, some analysts are not as hopeful.We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity, wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.Q.Which of the following can be concluded from the passage?a)HDFCs stock rates have been falling over the last decade.b)SBI accounts for one-fourth of the total loans provided in India.c)The LIC Housing Finance is expected to hike its home loan rates by 20 percent this year.d)Most of the banks in India are setting up branches that only sell auto and home loans.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Read the following passage carefully and answer the questions given at the end.Mortgage lender Housing Development Finance Corp (HDFC), loved by global investors for its steady profit growth, faces an intensifying battle for business and market share as banks aggressively push home loans. With Indias economic flu hitting corporate lending, banks have cranked up efforts to tap into the countrys housing loan demand, which has proven to be brick-hard by comparison.Demand for homes, and loans, has been stoked by a persisting housing shortage aslong-term demographic changes - urbanisation, rising incomes, more nuclear families - transform how and where people live in Asias third-biggest economy.With their eyes on the prize, banks such as state-run Bank of India (BOI) and ICICI Bank, the biggest private sector lender, are swarming the market with discounts and special offers, willing to even live with narrower margins. They are also expanding into lower-tier cities, a market that HDFC is nurturing.This is a very safe business. All our branches are working hard to grow home loans. We want to grow faster than the industry, said Anil Verma, BOIs chief financial officer.BOI is setting up branches that only sell auto and home loans, taking five days to process a mortgage. It often takes between two weeks and a month to get a home loan approved in India.State Bank of India (SBI), which dethroned HDFC as Indias top mortgage lender about two years ago, was charging mortgage interest of up to 200 basis points above its base rate in 2011. SBI is now offering home loans at just 10-30 basis points above the base rate, underscoring the intensifying competition.SBIs home loans grew 20 per cent in the September quarter from 13 per cent a year earlier. ICICI doubled its mortgage growth to 23 per cent, while HDFC was flat at 23 per cent, according to a report by Ambit Capital this month.Two of the countrys largest lenders, State Bank of India and HDFC, have cut home loan rates in a surprise bonanza for borrowers who earlier this month saw interest rates inch up. SBI, for the first time, has offered better loan deals to women borrowers. This move, the bank says, will empower women by increasing their share in home ownership. A day after RBI governor Raghuram Raj an decided to hold rates, SBI said that its home loan rates for up to Rs 75 lakh have been reduced from a high of 10.5% to 10.1% if there is a woman borrower involved. Home loans where a male is the sole borrower will incur 10.15%.The mortgage company said that the new rates are valid for all new applications submitted before January 31, 2014. But the battle for mortgage borrowers is threatening to squeeze net interest margins (NIMs). Analysts expect a 10-20 basis point margin decline for banks in the year ending March 2014 from an average of 3.1 per cent in 2010/11.Brokerage Jefferies expects HDFCs NIM to ease to 4.14 per cent from 4.4 per cent over the same period. So far, HDFCs overall profitability has remained unscathed, thanks to demand for homes in smaller cities as well as income from other businesses.For the December quarter, net profit may have risen about 12 per cent from a year earlier to Rs 1280 crore, according to Thomson Reuters I/B/E/S.For its part, HDFC, which counts Blackrock Inc, the Singapore government and Aberdeen Asset Management among its investors, is spreading into smaller cities and towns and seeking more agents to find more mortgage borrowers.It pays a fee to partners Induslnd Bank and Ratnakar Bank to bring in customers, and its share of business from the two banks and other agents has more than doubled in three years to 17 per cent of its total loans in the September quarter.We have to go out, we have to keep reaching out, we have to keep up the effort of finding more and more agents, more and more partners who will source loans for us, HDFC CEO Keki Mistry said in an interview last month.HDFC is also relying increasingly on other businesses including insurance, asset management and private equity to drive profit. In the year ended March 2013, the share of profit from subsidiaries and associate companies more than doubled to 27 per cent from 13 per cent in 2008.HDFCs stock has risen more than five times over the last decade, compared with a 263 per cent gain in the wider market. It also has the highest concentration of foreign institutional ownership of stocks in the Sensex, at more than 74 per cent, according to data on the Bombay Stock Exchange.Investors have long held it for its relatively stable returns. Its shares fell 4 per cent in 2013, but outperformed the bank index, which lost 9 percent.SBI, which accounts for a quarter of all loans in India, expects to grow its mortgage loans by about 20 per cent in the current fiscal year. Smaller rival LIC Housing Finance, which posted a 38 per cent profit increase in the December quarter, also expects to grow at 20 per cent during the year. HDFC has a similar projection.With 60 per cent of Indias population being below 30 years of age, all these people will in the next three, five or seven years need housing and therefore housing loans, HDFCs Mistry said.While industry players say there is enough business to go around, some analysts are not as hopeful.We expect NIMs of both LIC Housing Finance and HDFC Ltd to remain under pressure over FY14-15, owing to continued pressure on incremental spreads from higher competitive intensity, wrote Pankaj Agarwal, analyst at brokerage Ambit Capital, which has a sell rating on HDFC.Q.Which of the following can be concluded from the passage?a)HDFCs stock rates have been falling over the last decade.b)SBI accounts for one-fourth of the total loans provided in India.c)The LIC Housing Finance is expected to hike its home loan rates by 20 percent this year.d)Most of the banks in India are setting up branches that only sell auto and home loans.Correct answer is option 'B'. 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