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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
Q.
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
Q.
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
Q. 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
Get fully solved assignment. Buy online from website
online store
or
plz drop a mail with your sub code
we will revert you within 2-3 hour or immediate
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125/subject and rs 700/semester only.
if urgent then call us on 08791490301, 08273413412
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