SEM 4- SMU MBA SUMMER 2015 MA0043 CORPORATE BANKING
SMU MBA SUMMER 2015 -2016
Dear Students,
SMU MBA SUMMER 2015-2016 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420 we will reach back you with in 24H ”
ASSIGNMENT
DRIVE
SUMMER 2015
PROGRAM-MBAFLEX/ MBA (SEM 4) PGDBMN (SEM 2)
SUBJECT CODE & NAME -MA0043 CORPORATE BANKING
BK ID-B1817
CREDIT – 4
MARKS 60
- 1 “A commercial bank follows certain sound principles to ensure safety and security of its funds invested as corporate advance while planning a reasonable return also” In the light of above explain the uniformly accepted principles of lending. “Uniformly accepted principles of lending to corporate sector” 10.
Ans Principles of lending to corporate sector: – The banking business operates on certain sound principles to ensure the safety and security of funds and at the same time derive reasonable revenue from the operations as banks are commercial in nature. The uniformly accepted principles of
Q.2 “Two important sources of working capital fiancé for a commercial firm are: Consortium finance and Loan syndication”. Elaborate. (Explain consortium finance, Explain loan syndication) 5, 5
Ans Explain Consortium finance:- Under this arrangement, several banks (or financial institutions) finance a single borrowing firm with common appraisal, common documentation, joint supervision and follow-up exercises. A large bank approaches the client, collects the information about amount of loan, terms and conditions and then calls a meeting of other banks. Those who agree to lend the money, approach the client and the client fixes up the loan with
Q.3 “Factoring and Forfeiting are still nascent in India” Do you agree ? Substantiate if you agree or disagree. How will you differentiate between Factoring and Forfeiting?
(Factoring and forfeiting, Differentiate) 6, 4
Ans Factoring and forfeiting: Factoring can be broadly defined as an agreement in which receivables arising out of sale of goods and services are sold by the firm or corporate client to a
factor (financial intermediary) as a result of which the title to the goods and services represented by the receivables passes to the factor. Subsequently, the factor becomes responsible for all
- 4 Describe the loan pricing mechanism as per the RBI guidelines. Loan pricing mechanism of RBI. 10
Ans. Loan pricing mechanism of RBI:- Reserve Bank of India (RBI) started controlling interest rates and prescribed the minimum rate of interest on loans and advances being granted by Scheduled Commercial Banks with effect from 1 October 1960. Further, the policy of charging the maximum lending rate in place of minimum lending rate was introduced with effect
- 5 How do you perceive the Basel Committee accords on risk management? Do you think Basel –III accord is an improvement over Basel-II ? What are the impediments of Indian banks, if any, to migrate to Basel-III? (Basel Committee accord on risk management Basel-II and Basel-III, Problems faced by Indian Banks to implement, Basel-III norms). 4, 4, 2
Ans. Basel Committee accord on risk management Basel-II and Basel-III:- The 1988 Accord did not distinguish between credit rating while assigning risk weight and also did not take into account default correlations. In June 1999, the Basel Committee proposed new rules that are known as Basel II. A final set of rules, agreed to by all the members, was published in June 2004
Q.6 Explain the hedging strategies adopted by the firms through use of derivatives to minimize the risk of foreign exchange volatility. (Hedging strategies via derivatives) 10
Ans. The important hedging strategy adopted by the firms is the use of derivative instruments. A derivative is explained as a financial contract, the value of which is derived from any other financial asset’s value (known as underlying asset), e.g., commodity price, exchange rate, stock price, interest rate
SMU MBA SUMMER 2015 -2016
Dear Students,
SMU MBA SUMMER 2015-2016 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420 we will reach back you with in 24H ”
