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ASSIGNMENT
DRIVE
|
SPRING 2016
|
PROGRAM
|
MBA
|
SEMESTER
|
III
|
SUBJECT CODE & NAME
|
MA0038/MA0045 &BANKING MANAGEMENT
|
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
question is followed by evaluation scheme.
Question.1.
How do the commercial banks assess business potential region-wise or
location-wise ?Explain the concept of transfer pricing between different
business units or branches.
Answer: Transfer pricing is the setting
of the price for goods and services sold between controlled (or related) legal
entities within an enterprise. For example, if a subsidiary company sells goods
to a parent company, the cost of those goods paid by the parent to the
subsidiary is the transfer price. Legal entities considered under the control
of a single corporation include branches and companies that are wholly or
majority owned ultimately by the parent corporation. Certain jurisdictions
consider entities to be under common control if they share family members on
their boards of directors. Transfer pricing can be used as a
Question.2.
Explain the applicability of marketing mix for banks in India.
Answer:State Bank of India is a public
corporation owned by the government of India. This multinational company deals
exclusively in the financial and banking sector. SBI was founded in the year
1806 and at present, its headquarters is in the city of Mumbai. In terms of
assets, it is the largest and in terms of ancestry the oldest banking empire in
India. In the Indian subcontinent, State Bank of India is spread over 17,000
branches and
Question.3.
External Commercial Borrowing has become a popular method of raising finance
for businesses in India. Do you agree ? Substantiate with facts.
Answer:An external commercial borrowing
(ECB) is an instrument used in India to facilitate the access to foreign money
by Indian corporations and PSUs (public sector undertakings). ECBs provide an
additional source of funds to the companies allowing them to supplement
domestically available resources and take advantage of lower rates of interest
prevailing in the international financial markets. ECBs have become very
popular amongst the Indian companies, during the past few years due to the
limitations in the Indian debt market in the form of short maturity period and
high rate of interest.
Question.4.
“The volume, mix and cost return of both liabilities and assets need to be
planned and monitored in order achieve the short term and long term goals of
banks.” Criticallyexplain this statement.
Answer: Initially pioneered by
financial institutions during the 1970s as interest rates became increasingly
volatile, asset and liability management (often abbreviated ALM) is the
practice of managing risks that arise due to mismatches between the assets and
liabilities. The process is at the
crossroads between risk management and strategic planning. It is not just about
offering solutions to mitigate or hedge the risks arising from the interaction
of assets and liabilities but is focused on a long-term perspective: success in
the process of maximising assets to meet complex liabilities may increase
profitability.
Question.5.
What are the different valuation procedures followed by the acquiring company
in case of acquisition/merger that assists in arriving at different benchmark
price estimates ?
Answer:Valuation is a process used to
determine what a business is worth. Determining a private company’s worth and
knowing what drives its value is a prerequisite for deciding on the appropriate
price to pay or receive in an acquisition, merger transaction, corporate
restructuring, sale of securities, and other taxable events. Private companies
may include small family-owned enterprises, divisions/subsidiaries of larger
private companies, or large corporations.
Question.6.
Illustrate the guidelines for FDI in banking sector in India. Explain the
procedure for opening of branches by foreign banks in India.
Answer: Prior to the enactment of
Banking Regulation Act, 1949 which aims to consolidate the law relating to
banking and to provide for the nature of transactions which can be carried on
by banks in India, the provisions of law relating to banking companies formed a
part of the general law applicable to companies and were contained in Part XA
of the Indian Companies Act, 1913. These provisions were first introduced in
1936, and underwent two subsequent modifications, which proved inadequate and
difficult to administer.
Dear
students get fully solved assignments
Send
your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
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us at : 08263069601
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