MA0043 &CORPORATE BANKING

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ASSIGNMENT

DRIVE	FALL 2015
PROGRAM	MBADS (SEM 4/SEM 6) MBAFLEX/ MBA (SEM 4) PGDBMN (SEM 2)
SUBJECT CODE & NAME	MA0043 &CORPORATE BANKING
BK ID	B1817
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.

Q.1. Corporate banking refers to financial services offered to large clients. Give the meaning of corporate banking. Explain the advantages of corporate banking. Explain different types of lending and loans & advances.

Answer:The corporate banking segment of banks typically serves a diverse range of clients, ranging from small to mid-sized local businesses with a few millions in revenues to large conglomerates with billions in sales and offices across the country. Commercial banks offer the following products and services to corporations and other financial institutions:

·         Loans and other credit products – this is typically the biggest area of business within corporate banking, and as noted earlier, one of the biggest sources of profit and risk for a bank.

Q.2. Explain the features and various aspects of project finance. Write the main characteristics of project financing.

Answer: Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors. Usually, a project financing structure involves a number of equity investors, known as 'sponsors', as well as a 'syndicate' of banks or other lending institutions that provide loans to the operation. They are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the

Q.3. Finance is the life and blood of domestic and international business. Explain the pre-shipment finance.

Answer:FINANCE IS THE LIFE AND BLOOD OF ANY BUSINESS. Success or failure of any export order mainly depends upon the finance available to execute the order. Nowadays export finance is gaining great significance in the field of international finance. Many Nationalized as well as Private Banks are taking measures to help the exporter by providing them pre-shipment and post- shipment finance at subsidized rate of interest. Some of the major financial institutions are EXIM Bank, RBI, and other financial institutions and banks. EXIM India is the major bank in the field of export and import of India. It has introduced various schemes like for

Q.4. In its normal course of business, a bank faces many risks. Explain the types of risk in corporate banking.

Answer:Risk management in banks is a relatively newer practice, but has already shown to increase efficiency in governing of these banks as such procedures tend to increase the corporate governance of a financial institution. In times of volatility and fluctuations in the market, financial institutions need to prove their mettle by withstanding the market variations and achieve sustainability in terms of growth and well as have a stable share value. Hence, an essential component of risk management framework would be to mitigate all the risks

Q.5. Write short notes on:

a) Forward transaction

A Forward Exchange Contract is a contract between St.George Bank Ltd and you where the Bank agrees to BUY from you, or SELL to you, foreign currency on a fixed future date, at a fixed rate of exchange. You undertake to pay the Bank, the overseas currency in terms of the contract in exchange for the settlement currency, which would usually be Australian Dollars.

The Bank can provide a Forward Exchange Contract in most overseas currencies, for the protection of Exporters and Importers who are

b) Swap transaction

Currency swap transactions involve the purchase of a currency for a specific period of time, agreeing on the sale of the currency on a specific date in future, with a pre-determined exchange rate and the same sum.Swap transactions essentially involve two currency exchange transactions – spot (settlement today) and forward (settlement in future).

Benefits

·         You can purchase the currency that you need for a certain period of time, avoiding possible losses caused by shifts in currency

Q.6. In Foreign Exchange Dealers Association of India (FEDAI) explain the objectives, role and responsibilities of FEDAI. Explain the main features of Foreign Exchange Management Act (FEMA).

Answer: Established in 1958, FEDAI (Foreign Exchange Dealers' Association of India) is a group of banks that deals in foreign exchange in India as a self regulatory body under the Section 25 of the Indian Company Act (1956).

The role and responsibilities of FEDAI are as follows:

·         Formulations of FEDAI guidelines and FEDAI rules for Forex business.

·         Training of bank personnel in the areas of Foreign Exchange Business.

·         Accreditation of Forex Brokers.

·         Advising/Assisting member banks in se

·          

Dear students get fully solved  assignments

Send your semester & Specialization name to our mail id :

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