Roll No.

_________
(To be filled by the candidate)

Apeejay School of Management

New Delhi

Term End Examination – October, 2021

PGDM Term IV
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Management of Banks and Financial Institutions
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Time allowed : Two hours and 20 minutes Total Marks: 50

Instructions : (i) Please write down name of your BANK in the beginning in
BOLD Letters.
(ii) Attempt qn no 1 any other 2 qns.

(iii) While answering questions, please keep in mind the

Guidelines already circulated to you.

1. Answer any four of following in respect of your bank with reasons:

(a) Look at the Balance sheet of your bank. Write how investments made by it have
been detailed in various components.

(b) What is difference between a public sector bank and a private sector bank. Please
explain with reference to your bank

(c) Does your bank has capital reserve? How this Reserve is created.

(d) Mr. Ashok has 26.6% equity shares in your Bank. What will be his voting power
in a meeting of shareholders of the Bank?

(e) TRK securities Ltd, a subsidiary of your bank, apply for loan of Rs 210 cr to your
Bank. Can Bank grant this loan.

(f) How Revaluation Reserve is created in a Bank. What is discount value at which
this reserve is counted in CAR and why.
(4x4

2. (i) Refer to balance sheet of your bank and compute following parameters:
 (a) CASA Ratio
(b) Cost of Borrowing

(ii) Explain the Special crossing and Non Negotiable crossings on a Demand Draft with
diagrams.
(10+ 7)

3. (a) Explain the concept of Capital Adequacy Ratio (CAR), Risk Weighted Assets
(RWAs) and Leverage Ratio referring to values given in the Annual Report of your
Bank.

(b) Give a tabular statement showing various components of CET1, AT1 and T2 in a
Bank. Identify from balance sheet of your bank with figures, any 3 items of CET1
capital with amounts.

(10+7)

4. Explain the concept of Contingent Liability. Write down details of Contingent

liabilities of your Bank. You have to calculate the Risk weighted Assets from this data
applying following parameters:

Credit Conversion Factors : 100% for all except guarantees where it should be 70%
Risk weight : 80% for all

How much minimum capital the bank will require for above RWAs if Capital
Adequacy requirement is 10 % of RWAs.

5. How provisioning is done for NPAs as per RBI guidelines. Write down the asset
classification of your bank as standard, sub standard, doubtful and loss assets giving
amounts. Apply provisions to standard and substandard assets as per RBI norms.
Assume security shortfall at 30 % of NPAs.