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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
DRIVE - SUMMER 2015
PROGRAM - MBADS (SEM 3/SEM 5) MBAFLEX/ MBA (SEM 3)
SUBJECT CODE & NAME - MA0045 & BANKING MANAGEMENT
BK ID - B1616
CREDITS - 4
MARKS – 60
Q1. Illustrate the transformation ofthe banking system in India in the post nationalization era. 10
Ans: Transformation of the banking system: A sound and effective banking system in India is
necessary for a healthy economy. The banking system of a country should be able to meet the new
challenges posed by external and internal factors. The external factors are competition from global
players, new entrants from overseas, competition faced by Indian banks in foreign soil, etc. Internal
factors include
Q2. Explain the strategiesofpricing ofbusiness loans by commercial banks to enhance their credit
portfolio.( Enhancement ofcredit portfolio through pricing ofbusiness loans by commercial banks)
10
Ans: Pricing Business Loans: Business loans form the core of credit portfolio of banks. Banks scout for
enhancement of business loans as a strategy for growth and increase in market share. It may be noted that
the major portion of a bank’s fund is employed by way of loans and advances, which is the most
profitable employment of its funds. The major part of a bank’s income is earned from interest and
discount on the funds so lent.
Q3. Generating Non-interest income and monitoring expenses are key factors for growth and
profitability. What are the ratios banks use to evaluate these parameters ?( Ratios of measurement
of growth of non-interest income and monitoring expenses) 10

2. Ans: Non-interest Income: Non-interest income means income other than the interest income. This is
earned through commissions, exchanges, and service charges. The overall profitability of the bank
depends on maximisation of non-interest income and reduction of overhead expenses. The derivatives of
non-interest income are commissions charged on cheque collection, commissions earned through non-
fund credits, and letter of credit. The exchanges charged for issue of demand draft and electronic funds
transfer and service charges are
Q4. Illustrate the credit process of commercial banks. 10
Ans: Credit Process: Decision making with regard to credit in a bank is all about analysing the risk
involved in such lending. In the present day, credit risk management is given more importance in banks.
The credit appraisal process requires answering two questions:
 What are the fund requirements of a applicant borrower and what are his credentials?
 To what

Q5. Explain some of the money market instruments having short maturity and promising high
profitability(Short term and highly profitable money market instruments) 10
Ans: Money market instruments: Banks’ investment consists of different types of instruments. They
include money market instruments which are of short maturities like treasury bills, and negotiable
certificate of deposits and commercial papers. Capital market instruments have a longer maturity period.
They include corporate bonds,
Q6. What are the benefits derived from leveraging technology by banks in India ? 10
Ans: Benefits of Leveraging Technology: Adoption of technology will assist in the increased entry of
goods and services. Computerising processes have made banking products and services inexpensive and
easy to use. At the same time, they have helped banks to improve operating margins due to the processes
of customisation, which allows transactions to take place faster and reduce costs. Technology has
increased the options
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601