MA0044 - INSTITUTIONAL BANKING

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ASSIGNMENT

DRIVE	SPRING 2014
PROGRAM	MBADS (SEM 4/SEM 6) MBAFLEX/ MBAN2 (SEM 4) PGDBMN (SEM 2)
SUBJECT CODE & NAME	MA0044 - INSTITUTIONAL BANKING
SEMESTER	2
BK ID	B1818
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. Explain the challenges of Institutional banking in India.

(Explain the challenges of Institutional banking in India) 10

Answer.Challenges of Institutional banking in India

The institutional banking also has its own challenges. Let us now discuss some of them.

Capital requirements

One of the challenges will be raising capital by financial institutions for large scale lending to industries, however, this should not be at the cost of lending to agriculture, small industries and small businesses.

Awareness of products and services – need versus demand

Institutional banks also need to take into account

Q2. Analyse the role of SIDBI in SME financing.

(Explain SIDBI origin, objectives, functions) 3, 2, 5

Answer.

SIDBI origin

SIDBI was set up on 2 April 1990 under an Act of Parliament, as a Wholly Owned Subsidiary (WOS) of IDBI, but was delinked in March 2000. SIDBI is the apex financial institution for the promotion, financing and development of MSME sector and for co-ordination of the functions of the institutions engaged in lending to MSMEs. SIDBI was set as a wholly owned subsidiary of IDBI under an Act of the Parliament in 1989 for providing finance, directly to MSMEs and indirectly through financial intermediaries, namely commercial as well as co-operative banks, State Financial Corporations (SFCs), Non-Banking Finance Companies (NBFCs), etc. Proactively, SIDBI has taken a lot of measures for the benefit of MSMEs which included setting up subsidiaries/associate concerns for the enterprises besides providing services like venture capital, guarantee of credit as well as loans, rating, technical services, etc., which have immensely benefitted the MSME sector.

Q3. NABARD is promoting the setting up of agricultural export zones in various states with the help of local state government bodies. Discuss in detail the scheme of NABARD for agri-exports.

(Explain NABARD’s scheme for agri-exports-supporting activities, Funds for projects)5, 5

Answer.

NABARD’s scheme for agri-exports-supporting activities

NABARD is promoting the setting up Agricultural Export Zones in various states with the help of local State Government bodies. It provides 100% refinance to the lending institutions like commercial banks, Regional Rural banks. Minimum repayment period of 3 years has been fixed for all activities of Agricultural Export Zones.

Initiatives taken in the Natural Resource Management are supported by NABARD and it has developed many unique process models in the Natural Resources

Q4. Discuss the major challenges faced by DFI in financing the housing sector in India.

(Explain DFI –products for Housing sector)10

Answer.

Major challenges faced by DFI in financing the housing sector in India

DFIs are microeconomic institutions created to foster economic growth and social and economic development by providing investment capital and associated services. DFIs face a number of challenges in their quest to address these factors.

A major and pervasive challenge is a lack of ‘mandate clarity’ facing some DFIs. The lack ofa clear mandate and weak governance systems have a significantly detrimental effect on DFIs’ performance. This situation is often exacerbated by weak

Q5. Analyse the role of IREDA’s in funding the solar projects in India.

(Explain the role of IREDA’)10

Answer.

Role of IREDA in funding the solar projects in India

IREDA is a Public Limited Government Company established in 1987, under the administrative control of Ministry of New and Renewable Energy(MNRE) to promote, develop and extend financial assistance for renewable energy and energy efficiency /conservation projects with the motto : "ENERGY FOR EVER"

Role of IREDA

•          To give financial support to specific projects and schemes for generating electricity and / or energy through new and renewable sources and conserving energy through energy efficiency.

•          To increase IREDA's share in the renewable energy sector by way of innovative financing.

•          To strive to be competitive institution through

Q6. Do you think that the conversion of ICICI and IDBI entities into a bank has changed the landscape of Institutional banking in India. Substantiate your arguments.

Answer.Conversion of the banks & its Influence on institutional banking landscape

The government has decided that idbi's conversion into a bank would be in two stages. first, it would be converted into a company and next into a bank. for this, the finance ministry would be moving two bills, first for the corporatisation of idbi and next for bringing the new company under the banking regulation act. both these bills are currently scheduled to be moved in this session of parliament. of the three major development finance institutions, the concensus within the finance ministry is to permit the transition of only idbi and icici into universal banks. in case of ifci, the general mood seems to be to let it continue to be a term lending institution.

Dear students get fully solved  SMU MBA Spring 2014 assignments

Send your semester & Specialization name to our mail id :

“ help.mbaassignments@gmail.com ”

or

Call us at : 08263069601