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ASSIGNMENT
DRIVE SPRING 20142013
PROGRAM MBADS – (SEM 4/SEM 6) / MBAN2 / MBAFLEX – (SEM 4)
SUBJECT CODE & NAME MBF 402 - TREASURY MANAGEMENT
SEMESTER 4
BK ID B1813
CREDITS 4
MARKS 60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately
of 400 words. Each question is followed by evaluation scheme.
Q1. Mr. Ram was appointed as a treasury manager of a reputed bank and the bank wants to open an
office overseas. What are the factors Mr. Ram should take into account?
(Responsibilities of treasurer-5 marks, Scope of treasury management-5 marks) 10 marks
Answer.
Main responsibilities of the Treasurer

2. Mr. Ram should take many factors into account. Each Management Committee will have its own way of
doing things, and the way in which work is shared out can also depend on the skills, interests or amount
of time that a person has to offer. The following points outline the typical financial responsibilities of a
Treasurer:
Q2. Visit a public sector bank and a private bank and assess the roles of their treasury Departments to
draw a similarity of functioning. Discuss the instruments that are traded in the banks.
(Treasury management in banks-5 marks, Money market instruments-5 marks) 10 marks
Treasury management in banks
In recent days, most of the Indian banks have classified their business into two primary business segments
like treasury operations (investments) and banking operations (excluding treasury).
The treasury operations in banks are divided into:
Rupee treasury – The rupee treasury carries out various rupee based treasury functions like asset liability
management, investments and trading. It helps in managing the bank’s position in terms of statutory
requirements like cash reserve ratio, statutory
Q3. As a treasurer, while it would be essential to look at the company’s capital
asset, you will also have to open foreign operating accounts and set up banking
services in target areas. What steps would you take if your organization plans to
expand globally?
(Describe the facilities provided to exporters and importers in India., Discuss the role of FEDAI. facilities
provided to exporters and importers in India. )
Facilities Available To Exporters And Importers
Exporters
 Exporters are provided timely and adequate credit to meet the exports commitments.
 Exporters are allowed pre and post-shipment credit at competitive interest rates.
 Export Credit is made available both in Indian Rupee and Foreign Currency as well.
 All eligible exporters are issued ‘GOLD CARD HOLDER” status. In addition to better terms of credit,
an additional ‘in principle’ export credit (


Q4. Explain how banks gain on liquidity measures taken by RBI. Differentiate cash and liquidity
management.
(Cash management-5 marks, Liquidity management-5 marks) 10 marks
Cash management
Cash management refers to a broad area of finance involving the collection, handling, and usage of cash.
It involves assessing market liquidity, cash flow, and investments cash management, or treasury

3. management, is a marketing term for certain services related to cash flow offered primarily to larger
business customers. It may be used to describe all bank accounts (such as checking accounts) provided to
businesses of a certain size, but it is more often
Q5. BoI, was the first to cut its minimum rate of lending or the base rate by 0.25 per cent after a finance
ministry diktat last week, is targeting to take domestic NIM up to 3.10 per cent for FY14 from previous
year's 3 per cent. Explain how effectively it can manage its assets and liabilities. Discuss ALM process in
commercial banks
(Management of assets and liabilities-5 marks, ALM process in commercial banks-5 marks) 10 marks
Management of assets and liabilities
In spite of a 0.25 per cent cut in the base rate, state-run Bank of India (BoI) is confident of meeting its net
interest margin (NIM) targets as it expects a pick-up in credit and some benefit accruing from a fall in cost
of funds, a top official has said.
Q6. Visit your nearest bank, identify yourself as a student of treasury management and discuss with the
bank manager regarding risk management program.
(Identification of risks-5 marks, Risk management program-5 marks) 10 marks
Identification of risks
Risk identification is the process of determining risks that could potentially prevent the program,
enterprise, or investment from achieving its objectives. It includes documenting and communicating the
concern.
The first step in risk management is to look closely at business and identify potential risks. The aim of this
stage of risk management is to create a database of risks relevant to your particular business. here are
many different types of risk:
Dear students get fully solved SMU BBA Spring 2014 assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601