[Sept-16]

[MFM-847/MPIBA-FM-1303]
MBA, MBA (CMU) & IMBA DEGREE EXAMINATION
IV TRIMESTER / XIII TRIMESTER
RETAIL BANK MANAGEMENT
(MBA: Effective from the admitted batch 2015–16)
(IMBA: Effective from the admitted batch 2012–13)
Time: 3 Hours Max.Marks: 60
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Instructions: All parts of the unit must be answered in one place only.
Figures in the right hand margin indicate marks allotted.
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SECTION-A
1. Answer any FIVE of the following:
Each answer should not exceed one page. (5x2=10)
a) Electronic funds transfer
b) BASEL norms
c) Securitization process
d) SWIFT
e) Electronic channels in retail banking
f) Non Performing Asset
g) Banking Ombudsman
h) BCSBI
SECTION-B
Answer the following (5x8=40)
UNIT-I
2. a) Define Retail Banking. Discuss the scope and range of services in
retail banking
OR
b) Discuss the changing trend in retail banking. State the highlights
UNIT-II
3. a) Write a note on management of electronic channels in retail
banking
 OR
b) Critically examine the effect of use of alternative delivery channels
in the light of increasing frauds. Discuss
UNIT-III
4. a) Write a brief note on ancillary services offered by a bank
OR
b) Write a note on payment system in India
UNIT-IV
5. a) What are the standard retail asset products offered by banks?
OR
b) What is a non performing asset (NPA)? What are the guidelines of
RBI towards management of NPAs?
UNIT-V
6. a) What is KYC? Explain the RBI guidelines for the banks towards
customer responsibility
OR
b) Explain the role of banking ombudsman. Give suitable examples
SECTION-C
7. Case Study (Compulsory): 10
This bank prefers not be named. For this case study we call it
ICON bank.

The ICON Bank is the first of the new-generation private banks in

India conceived through collective contributions from the NRI
community towards India’s economic and social development. It
has become one of the fastest-growing banks in the Indian
banking sector with 150 ATMs of its own, and multilateral
arrangements with other banks with a total network of 15,000
ATM outlets. The Bank’s broadlines of business include
Corporate Banking, Retail Banking, Treasury and Foreign
Exchange, Investment Banking, capital Markets, Non-Resident
Indian (NRI, High Net Worth Individual (HNI) Banking, and
(through a subsidiary) information technology.
The Bank started its operations initially in Corporate Banking
with little or no focus on retail customers. In order to harness
future opportunities, it ventured into the world of Retail
Operations. Here, it faced increased competition from other
established private and public sector banks. In an extremely
competitive banking environment, the Bank faced the following
challenges:
 Greater demand from investors to grow at a faster pace, to
increase market share and to better its bottom-line.
 Increased pressure on branches to acquire and retain
profitable customers in the chosen customer segments.
 Strong need to differentiate its products and services from
competition.
 Create greater visibility of the brand in the market
 Taking business advantages of the merger of a leading
financial institution with the bank
 Attracting the right talent as well as motivating and retaining
them

The ICON bank approached a Management consultant. They

made the following recommendations to ICON bank.

 To focus at the branch level since they are the customers

touch points and converting them from transactions oriented
desks to relationship centers
 To create a congenial atmosphere at the corporate level in
order to align strategy and business focus between branches
and corporate structure

As the acquisition of new customers was a critical factor in

attaining faster growth and increased market share, this was made
possible at the branches by:

 Creating focus on proactive acquisition of customers by bank

employees by going out in the field rather than waiting for
customer walk-ins
 Redirecting energies of excess operational staff for sales and
marketing
 Motivating employees to cross-sell products and services to
improve performance of the branch
 Creating a culture of performance, collaboration and
continuous innovation by institutionalizing learning and best
practices sharing across branches

Questions:
1. What are the Business Challenges that faced by ICON bank
2. Are you in agreement with the recommendations made by the
management consultant? If so, draw an action plan of
activities to achieve the above objectives.
3. What are your recommendations to address the challenges by
ICON?

[51,53/IV T/216]
[41/XIII T/316]