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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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ASSIGNMENT
DRIVE SUMMER 2015
PROGRAM MBADS – (SEM 3/SEM 5) / MBAFLEX / MBAN2 – (SEM 3)
SUBJECT CODE & NAME MA0038-BANKING OPERATIONS
SEMESTER 3
BK ID B1616
CREDITS 4
MARKS 60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately
of 400 words. Each questionis followedbyevaluation scheme.
1 Explainthe principlesofbanking. Explainthe role of banks.
Answer: Principles of banking: The central practice of banking consists of borrowing and lending. As in
other businesses, operations must be based on capital, but banks employ comparatively little of their
own capital in relation to the total volume of their transactions. Instead banks use the funds obtained
through deposits and, as a precaution, maintain capital and reserve accounts to protect against losses
on their loans and investments and to provide for unanticipated cash withdrawals. Genuine banks are
distinguished from other kinds of financial intermediaries by the readily transferable or “spendable”
nature of at leastsome of theirliabilities(also
2 Explain about the operational efficiency and productivity planning. Explain about the business
planningand targeting.
Answer: Operational efficiency: In a business context, operational efficiency can be defined as the ratio
between the input to run a business operation and the output gained from the business. When
improvingoperational efficiency,the outputtoinputratioimproves.
Inputs would typically be money (cost), people (headcount) or time/effort. Outputs would typically be
money (revenue, margin, cash), new customers, customer loyalty, market differentiation, headcount
productivity,innovation,quality,speed&

2. 3 Explainthe applicabilityofMarketing Mixin Banks. Write about Private Vs Public Banks.
Answer: Applicability of Marketing Mix in Banks: Bank marketing in general and Customer Relationship
Management (CRM) in particular are of vital importance for Indian banks, particularly in the current
context when banks are facing tough competition from other agencies, bothlocal and foreign, that offer
value-added services. The Role of marketing in the banking industry continues to change. For many
years the primary focus of bank marketing was public relations. Then the focus shifted to advertising
and sales promotion. That was followed by focus on the development of a sales culture. Today banking
sectorall elementsof the marketingconcept –
4 Explainthe AssetLiabilityManagement(ALM) Strategy. Write about the ALM perspectives.
Answer: Asset Liability Management (ALM) Strategy: Asset-liability management (ALM) is a termwhose
meaning has evolved. It is used in slightly different ways in different contexts. asset-liability
management was pioneered by financial institutions, but corporations now also apply asset-liability
management techniques. This article describes asset-liability management as a general concept, starting
withmore traditional usage.
Traditionally, banks and insurance companies used accrual accounting for essentially all their assets and
liabilities.Theywouldtake onliabilities,suchas
5 Explainthe kindsof mergers.Write about the valuation proceduresin mergersand acquisitions.
Answer: Kinds of mergers: There are many types of mergers and acquisitions that redefine the business
world with new strategic alliances and improved corporate philosophies. From the business structure
perspective, some of the most common and significant types of mergers and acquisitions are listed
below:
Horizontal Merger
Thiskindof mergerexistsbetweentwocompanies
6 Write short noteson:
(a)ProfitabilityAnalysisModels:
Answer: A profitability analysis model as described in here can be defined as a simulation model of an
initial investment and subsequent operations. The cash flow from operations must be estimated
carefully on the basis of a thorough business plan. The cash flow and the development of balance sheet
isthensimulatedoverthe lifetime of the

3. (b)Riskbased Models
Answer:
Growth: The goal of the Growth model is long-term capital appreciation. It is best suited for investors
who seek an above average exposure to equity markets and the risk and returns associated with them.
The typical investorwill have aninvestmenttime horizonof 8or more years.
Moderate Growth
The goal of the Moderate Growth
(c)Traditional Performance Models
Answer: The performance of prediction models can be assessed using a variety of different methods and
metrics. Traditional measures for binary and survival outcomesinclude the Brier score to indicate overall
model performance, the concordance (or c) statistic for discriminative ability (or area under the receiver
operatingcharacteristic(ROC) curve),andgoodness-of-fitstatisticsforcalibration.
Several new measures have recently been proposed that can be seen as refinements of discrimination
measures, including variants of the c statistic for survival, reclassification tables, net reclassification
improvement (NRI), and integrated discrimination improvement (IDI). Moreover, decision–analytic
measures have been proposed, including decision curves to plot the net benefit achieved by making
decisionsbasedonmodel predictions.
Dear students get fully solved assignments
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