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IMT - NAGPUR
COMMERCIAL BANK MANAGEMENT /PGDM-2009
MID TERM TEST /TEST DATE - AUGUST 05, 20l0/TIME Full Marks: 50

- 11 (TERM IV)
- 8:30 ~

Time allowed : 1 hour : 30 Minutes

Instructions for the test: 1. 2. 3. 4. 5. 6. 7. It's a Question-cum-Answer Sheet. Answer all questions. Length of answers to be within the limit specified in each question. Marks and desirable time to spend are specified for each question. Use of Calculators allowed. It's a CLOSEDBOOK/NOTES examination. Verify that the Question Paper contains 8 printed pages.

----------------------------**************** -----------------------------STUDENTS NAME: SECTION: (Part - A / Objective Questions) Give Answer to Question Nos. 1 to 34 in a few words. Each question carries 0.5 mark. Do not spend more than 35 minutes.
Q 1. What is the process of borrowing of relatively short-term
commitment to funds known as ? . funds from savers, who often cannot

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commit their funds over long periods, and making 101"\9-term loans to borrowers

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who require a long-term

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Q 2. What is the limit/amount of deposit insurance available to a single individual depositor per bank? My Answer is:

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owned by the debtor

Q 3. Name the right of the Banker to retain possession of the goods & securities (borrower) until the debt due from the latter is paid?

My Answer is :
Q 4. Name the credit facility ? facility which is a substitute of a Term loan and also a non-fund based credit

My Answer is:

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Q 5. There are two modesof delivery of documents made by a banker to the drawee in a bill transaction,
knownas the tenor of the bill in banking parlance. What are those? My Answer is :

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Q 6. In countries like USA and Japan, issue of bank guarantee is prohibited, instead the banks there
issuea specific type of Letter of Credit for this purpose.Name this Letter of Credit? My Answer is: .

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Q 7. The act of the borrower of using short term funds for long term use is popularly known in banking
parlanceas My Answer is : ?

Q 8. Write the expression for Tangible Net Worth (TNW) ?

My Answer is :

TN W

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Q 9. Namethe policy rate at which RBI drains out excess liquidity from the CommercialBanks?
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Q 10. ExpandBCSBI ?
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Q 11. SLR,a legal reserve to be maintained by each scheduled commercial bank, is as per which act?
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Q 12. A customer maintains a safe deposit locker with a bank. What is the banker-customer relationship in this case? My Answer is :

Q 13. Narashimam Committee recommendationsrelate to which area of the banking?

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Q 14. Expand KYC and AML ?

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Q 15. What are chargeable
My Answer Is: current assets?

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country is known as

Q 16. All Bank Guarantees

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contain a mandatory paragraph at the end. What is it called?

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undertaking

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Q 17. An LC which calls for the additional

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of a bank in exporter's

Q 18. Whether Bill Co-acceptance

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facility is a fund-based

or Non-fund-based

credit facility?

Q 19. A Civil Contractor

this guarantee? My Answer is :

is asking his bank to issue a bid-bond Guarantee?

What is the nature/type

of

Q 20. During the period of high economic activity ID ratio will be High or Low? My Answer is :

Q 21. Whether Savings Bank Interest

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Rate is deregulated

or Not?

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Q 22. What is the maximum period for which a Term Deposit is accepted at present?
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mode for creating a charge on a Debt Security like Life Insurance Policy

Q 23. What is the appropriate

by a lending banker? My Answer Is:

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Q 24. For loans facilities given to a Company, Banks are required under law to register a charge on the assets of the Company. This charge is to be registered with whom? My Answer is :

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Q 25. What is the appropriate My Answer is : mode for creating a charge on a Immovable Property?

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company?

Q 26. For loans facilities charge) for registration My Answer is :

given to a Company, what is the time limit (from the date of creation of of charge on the assets of the borrowing

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Q 27. Supply bill finance is a Secured or Unsecured Credit facility? My Answer is :

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is allowed to overdraw

Q 28. Name the regular working capital credit facility in which the borrower up to a pre-specified My Answer is : limit.

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Q 29. In a Bank Guarantee transaction, My Answer is : Q 30. Name the organization Export Financing Bankers. My Answer

that is dedicated to Export Credit Risk Insurance to both Exporters and

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Trade Finance.

Q 31. In a transferable

LC, who has the right to transfer the credit, part or full, in favour of another

party: the LC advising bank, LC opening bank or the Beneficiary? My Answer is :

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Q 32. Expand UCPDC in the context of International

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Q 33. What is the threshold requirement

limit for the annual sales turnover for a non-corporate

entity for the

of audited financial statements? ~

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the drawings in the account are regulated/monitored by two

Q 34. In a Cash Credit facility parameters. What are those? My Answer is :

(Desirable time limit 35 minutes)

[Total marks 34 x 0.5 = 17 marks]

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STUDENrs NAME: SECTION:

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(a) assets (b) liabilities (c)

Q 35. Classify the following accounts into one of the following categories:
category code (a, b, c. d. e or f) after the hyphen in each case. (1) Retail Deposits - ~ (4) Consumer loans(8) Letter of Credit-

equity (d) revenue (e) expense (f) Off-Balance Sheet (OBS) activity. Give your answer by writing the

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(2) Paid-up-capital(5) Interest

(3) Loan Commitments-

on Investment securities-

(6) Interest on Savings Bank Deposits-

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(7) Current Deposits-

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(9) Retained earnings-

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(10) Provision on NPA Loans- f!...-;

(Desirable time limit 5 minutes)

[Total marks 10 x 1

10 marks]

(Part - B/Numerical Questions)

Q 1.

If you know the following figures for MIS XYZ Bank :

Name of the items Amount Rs.

Total

interest

Income

290 205 27 40 10 15 11 3,000 2,500 2,700

Total interest expenses Total non-interest income

Total non-interest

expenses

Provision for loan losses

Income taxes Dividends to common stockholders Total Assets Earning Assets Total Liabilities

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******* Space for Answer to Q No. 2/The Income Statement

*******

Schedule No. I Head of Account

Amount in Rs.

Schedule No./ Head of Account

Amount in Rs.

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For XYZ Bank, calculate:
(i) Net interest income (NIl)

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(ii) Overhead or Burden (aka Net non-interest income)

My Answer is :
(iii) Operating Profit

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(iv) Net income after taxes (PAT) ~

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(v) Total operating

Income (revenues)

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(vi) Net Interest Margin (NIM)

My Answer is :
(vii) ROA

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(viii) ROE

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(ix) EM (Equity Multiplier)

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(x) AU (Asset Utilisation)

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(xi) NPM (Net Profit Margin)

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(Desirable time limit 25 minutes)

[Total marks 11 x 1 = 11 marks]

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STUDENrs NAME:

SECTION: categorieJ

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Q 2. Label each item into one of the Income Statement 13 to 16. Then Prepare a consolidated/aggregated schedules (Sch. 13 - 16) and determine required showing the aggregate after tax). a. b. c. d. e. f. g. h.

bcsed on Schedule No.

Income Stctement based on the 4 net income. Only one table is (Put your Label)

the bank's bottom-line

figures for all the 4 schedules and net income (profit

.. ~ I~' ..to E Interest paid on Term deposits Rs.100,OOO/~ Interest paid on Certificate of deposits Rs.101,000/- ~ r.-vJ:. Interest received on GOI Securities Rs.44,500/1. ~ ~ Fees received on selling of insurance and mutual funds RS.23,000/-~. o*,ftlr 1 ~~. Dividends paid to Shareholders of RS.0.50 per share for 5,000 shares ~ ~''-b'' I !j Provision for loan losses/NPA provision Rs.18,000/-. ~~~(No. .s cW\~.p~ Interest and discount on loans Rs.1,89,700/-.... rJc, yrLo lD{) Interest paid on SB accounts Rs.33,500/e l vJv, E~. I. Interest received on Corporate/PSU bonds Rs.60,000/- ~ y~. j. Employees salary and benefits Rs.1,45,000/---7 ~ E'>Lf. k. Purchase of a new Computer system Rs.50,00%:fDe~reciation for the current year Rs.10,000/-) ~~~~ Rh ' I rtiWf - ~. ().D , I. Service charge/commission receipts from cJstomer accounts Rs.41,000/,

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m. Occupancy expenses for the bank building Rs.22,000/n. Taxes of 34/'o of taxable income are paid ~ o. Safe Deposit Locker rent receipt Rs.15,000/- _ ~
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(Desirabletime limit 20 minutes)

[Total marks 12 marks]

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