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What are the macro–economic forces shaping banking operations across the globe? – Globalization – Liberalization & deregulation – Privatization – Disintermediation – Market orientation Q. 2. What are the visible features of the global banking space today? – Customization of products – Customer sophistication – Heightened competition – Prudential regulations – Technological innovation – Banks are on e-superhighway Q. 3. Which are the capital components of the Banks/ Financials Institutions? – – – – Financial Capital - own and loan funds Human/ Intellectual capital – talent back up Physical Capital – infrastructure facilities including technology Relationship Capital – brands, customers etc
Q.4. Why are Banks as financial intermediaries accorded a special status in the financial system? Banks as financial intermediaries occupy a special status because banks are – a part of the Development process of the country – instrumental in Life Cycle Wealth mapping of individuals – reach out to unbanked/ underbanked due to financial inclusion Q.5. What specific roles Banks as part of the development process of the country play? – Asset transformation – Money transmission – Credit Allocation – Risk Transfer/Mitigation – Intergenerational Wealth transfer – Denomination intermediation (Mutual Fund) Q.6. What are the cardinal principles of banking? – Safety of funds – Superior Liquidity
– Profitability Q.7. If you are appointed as Chairman of IDBI Bank which critical dimensions of the banking will be your top priority? – Organizational revitalization to have focused attention on growing areas creation of business verticals – Innovation in customer experience/ customer value Creation – Human Resources Development – Risk Management to be accorded top priority – Technology adoption in product design and delivery – Asset Liability Management Q.8. What is the rationale for Government proposal for capital infusion in Public Sector Banks? – To strengthen the credit risk profile of the Banks by boosting Tier – I Capital Adequacy Ratio Q.9. From risk management perspective which is the ideal financing option? A mix of – Own Funds (Equity) – Loan Funds (Debt) – Rented Funds (Lease Finance) Q.10. Risks in banking parlance predominantly refer to what? – Variation or uncertainty in level of return on assets – Shortfall in realisation from assets – Preventing Frauds – Ensuring adequacy of insurance of assets Q.11. Why Banks have been and will continue to be subject to significant public–authority regulation and supervision? – Banks play a key role in driving economic performance of the economy – Banks deal in other peoples money–a fiduciary nature of business – Potential for financial fraud – Possibility of serious social costs associated with bank failures Q.12. In Retail Banking risks are mitigated by multiple approaches. What are they? – Product Programme Guidelines for each product like Housing Loan, Mortgage Loan, Auto Loan, Educational Loan, etc. – Know Your Customers (KYC) norms – Credit scoring models – Legal/ Technical/ Risk Containment Unit (RCU) due diligence
Q.13. RBI has made Risk Management, an integral part of Prudential Regulations, mandatory for Banks. Why? – Banks are increasingly speculating in the market for trading gain – Banks are exposed to a higher degree of risk due to huge Asset–Liability mismatches – Failure of Banks has wider social and economic spillover effects – Banks are diversifying into varied range of activities through Private Pool of Capital (PPC) – Private Equity, Mutual Funds etc. Q.14. In infrastructure projects being financed through Public Private Partnership (PPP) routes, risk analysis assumes critical significance because Why? – Project returns are spread over longer time – Need to enhance certainty/ predictability of cash flow – Project parameters NPV, IRR, DSCR are subject to high level of uncertainty – Banks should not finance a bad project or fail to finance a good project – Projects are capital intensive, highly risky and are of longer gestation period Q.15. What is financial engineering? What are the financially engineered derivative products? What is the rationale? The process of evolution of different new techniques of financial analyses and new financial instruments to enable financial market participants to hedge risks and cope more effectively with the emerging conditions is known as financial engineering. Swaps, Options, Financial futures, Swaptions ,Forwards etc Hedging Risk exposure
Q.16. What are the various ways by which Risk exposure by Banks can be effectively mitigated? – Client diversification – Wholesale banking, Retail banking, Investment banking, Transaction banking, etc – Geographical diversification – Product innovation Q.17. Retail banking products have better risk appeal for Banks vis–à–vis wholesale banking products why? – Diversification of risk across large volume – Higher return potential – Known customer segment – Branch channels are in close proximity to the customer base
Why was it felt to have a relook at BASEL Capital Accord I? – Higher volatility in financial market across the globe – Significant degree of financial innovation 4 . Escrow mechanism.Q.19.20. Basel framework for Banking Supervision prescribed by Bank for International Settlement (BIS). What are the Rationale for Bank capital? – Capital can absorb possible losses by providing a basis for depositors confidence – Banks bailout packages are socially detrimental due to use of tax payers’ money Q. JBIC etc are increasingly participating in project financing in emerging market economies.22.23. Why? – Projects are profitable/ socially desirable – Project risk are mitigated through a bundle of package contracts through ICB (International Competitive Bidding) – Better security pool – Projects are backed by Credit enhancement tools like guarantee. an affiliate of World Bank has provided global regulatory standards for Banks/ Financial Institutions. What are the merits of BASEL II over crude Capital Accord I (BASEL I)? – Better internal control and governance through supervision and disclosure requirements Q. ADB. rollover letter of Credit etc Q. How is IDBI Bank’s Risk profile in the global financing space is primarily determined? – Depth of pocket due to strong capital base Q. What are the key objectives? – a competitive level playing field for Banks/FIs operating globally – Preparing Banks as vehicles of development for the emerging globalize era – Healthy competition among countries – Adoption of common standards of risk mitigation tools Q. Multilateral Banks like World Bank (IBRD).18. AfDB. standby line of credit.21.
Which financial ratio is a better indicator of risk? – Debt Equity Ratio (DER) Q. throughout my academic/professional career I have been sincere.25.24. What are the sources of Operating Risks in Banks? – People – Process – Technology – Force majeure events Q. a 233 year old British Bank in February 1995 – Capital Base of Banks did not match with their true risk profiles – Global financial crisis. team 5 . Sir. Frauds in Retail Banking space can be mainly attributed to – Lack of core competency to detect fraud – Shallow supporting Credit data – Lack of culture of credit risk profiling – System deficiency – Legal remedies – Absence of institutional machinery for Retail Risk pooling Q.– Collapse of Barings PLC.27.28.26. Why BASEL III calibrating the global standards for capital adequacy and Liquidity in 2010 were necessitated? Mainly to – avoid another financial crisis – increase Loss absorbency capacity of Banks – increase Liquidity Coverage Ratio (LCR) of Banks – increase Net Funding stable Ratio (NFSR) of Banks Q. My set of softer skills of communication. 1997 (Russian crisis 1998) Q. Who recommended the standards? – Sir Adrian Cadbury Committee (1992) – Sir Richard Greenbury Committee (1999) – Ronnie Hampel Committee (1998) – Blue – Ribbon Committee (1999) – Nigel Turnbull Committee (1999) Q. dedicated and committed to my goals. Corporate Governance standards were advocated /prescribed in the aftermath of large scale corporate scands in USA. Why do you feel you will be useful to the organization? Ans.29. motivation.
Sometimes I find it difficult to delegate to others knowing fully well that delegation divides the load I tend to expect others to work as hard as I work Q. Sir. I am committed to making my career in banking. Rich endowment of natural resources like minerals. Ability to work under pressure Tremendous patience Team spirit (set of Complementary skills) Leadership skill Ability to handle multiple tasks Punctuality and time management Q. The role of the Banks as torchbearers of development process of the countries and particularly in reaching out to the socially deprived class have impressed me the most.building.31 What are your strong points? Grounding in management skills with specialization in finance/marketing/HR etc Dedication and commitment to work performance Strong numerical ability Strong zest and zeal. Why Gujarat is ahead in development perspective vis-à-vis other states? Priority on economic infrastructure growth like road. I have demonstrated my sincerity in completing whatever tasks have been assigned to me from time to time.32. What are your weaknesses? I always try to achieve perfection in whatever I do Over-seriousness. placement in your esteemed Bank will be a definite recognition of my academic and professional acumen.30. the state is progressing industrial growth and employment generation 6 . Q. telecommunication . water utilities which contribute to development of the state Strong NRI base Government initiative to invite private entrepreneurs from any part of the world through programmes like Vibrant Gujarat. water resources. Why do you feel that you deserve placement in our Bank? Sir. During the last two years of my management course I have kept myself abreast with the changing face of global Banking.33. petrochemicals. negotiation and counseling have been enabling factors for me to deal with varied temperaments of different situations. airport. port . power . agricultural resources. I will contribute my best to the all-round growth of the Bank. Q. I am confident that I will prove to be an asset to any organization that acquires my services. given an opportunity.
skill building and health services for the masses Reorient the state administration for the development purpose Use the potential of the Banks and financial institutions to play a pro-active role Q.acquire critical mass by way of branch network through organic/inorganic growth . Hardship . Q. petrochemicals. I would like IDBI Bank to have . IDBI is already a household name . I am prepared to go to any place in the country.37 If you are posted to a hardship center in say Jharkhand .better visibility of the channels especially branch channels .35. According to me there in no hardship center . What changes would you like to bring in IDBI Bank ? Sir .customer-centric product mix . if any will strengthen my abilities .- Long stretch of coastline facilitating port sector growth Strong entrepreneurial vision Q.38. Q.more rural penetration .34. I will continue to exhibit superior work performance in any Department that acquires my services. will you go ? Sir. which Department will you like to be posted ? Sir .minerals. I am willing to go to any center as per Bank’s convenience. I am indifferent as to the Department to which I may be posted .36 If you are promoted as Deputy General Manager. I am already working in a hardship center. agricultural resources. If you are appointed as Chief Minister of Gujarat . IDBI Bank is already having extensive presence throughout the length and breadth of the country. What are the strengths of Gijarat’s Economy ? . I have no preference for any particular center . what will be your top priority ? Sustained drive for infrastructure development of the state Make Gujarat a model for other states to follow Industrialization which creates employment opportunities and leads to the economic use of the rich resource endowment of the state Development of eco-tourism where the state has great potential Development of higher education . marine resources Q.Staff to be innovative in predicting customer needs and seizing market opportunities 7 .
In a globalized environment . I strongly intend to do something for the poor and marginalised class of the society. She was in Government service . acquisition of human resources(recruitment).42. I have learnt the basic values of life from her. societies and countries are engaged in a large variety of trade and commerce activities in an exchange economy to maximize human welfare. Why did you pursue management as your curriculum ? Sir. preservation of human resources through salary and incentive administration and development of human resources through training and career advancement opportunities. I learnt the basic management skills. had a deep impact on me. Individuals. What value have you learnt from your mother ? Sir . especially in banking and financial services. What was your choicest subject in Management ? Sir. management had great appeal to me as the subjects have relevance to day to day affairs of the individual as well as the society and the country at large. Women by virtue of their set of softer skills are able to match the customer sophistication of the emerging scenario. I took up management as my curriculum to keep myself abreast with the latest in management to optimize welfare of the society. 39. By observing her kitchen.40. Q. Q. Her skill in building children and at the same time catering to the emotional needs of her in-laws was exemplary.43. Q. In the present day environment.Q. Q. to excel as a professional. What is your goal in life ? Sir. Trade is the engine of economic growth. mother is my first teacher . Human Resources Development function encompasses. Personnel Management function is known as Human Resources Development which is a strategic function of a corporate entity. women better fit into the white collar jobs in Banks . 8 . utilization of human resources by their proper placement (posting of people to various functional areas). Now a days banks are called upon to play a dynamic role in socio-economic upliftment of the masses. I have a natural liking for HR function. Are women suitable for banking jobs which require hard skills now a days ? Sir. I cherish to take forward the message of financial inclusion for the greater good of the people in the North-Eastern region. Personnel Management was my choicest subject and area of specialisation. Many of the foreign banks and new generation private banks are seen to be recruiting more women employees as women score over men in catering to the emerging banking needs.41. The way she was balancing her work and life without compromising her role as home maker as well as in her official responsibilities.
Customer is the king. This may happen in UK where laws are very stringent but not in India.46. Knowledge of marketing helps me to market bank’s products in a competitive market environment. You are working as Cash officer .Money transmission as per monetary policy . Q.There will not be any dent to my commitment to excellence in customer value creation. I will try to analyse the circumstances which prompted him to slap me whem I am in the bank to help him. If the dog bites us we will not bite the dog.Asset Transformation – collecting deposits which are unproductive and giving loans for creation of productive assets of the economy . What role do banks play in the economy? Sir. Suppose a customer gets angry and slaps you . Q.Credit allocation as per priority sector lending policies . the customer is no wrong. I find my knowledge of management directly relevant to my desk in the bank. I will make the customer realize his mistake.47.Intergenerational wealth transfer – father depositing money in daughter’s name .Q. The special role played by banks can be summarized as under. How is your knowledge being used in IDBI Bank? Sir. My management background helps me to grasp and appreciate the corporate banking function. no prudent banker will effect cash payment to the dog because the dog cannot acknowledge payment of cash.44. Banks in India have been a part of the development process. Knowledge of management has been very handy for my functional efficiency in the bank especially in MCG. business law and financial managementhave direct relevance to the day to day corporate banking activities. how will you handle the situation ? Sir. will you pay as bearer cheques are always bearer cheques ? Sir.45. We are in business today because of customers. Rather this will be an opportunity to deepen my relation with him.Banks have definite information cost advantage which individual depositors donot have . Q. looking to the Indian Laws. Accounting . If the customer slaps me.Though bearer cheques are always payable to the bearer and necessary protections are afforded to the paying banker . Patience ultimately pays. If I send a bearer cheque with my dog to the bank .Payment system(RTGS) 9 . .
I like challenging job assignments. But as a new generation universal bank IDBI Bank exhibits the characteristics of private sector efficiency with public ownership. Q.52. Q.Denomination intermediation – I have Rs. Q. Front office jobs will offer opportunities to interact with customers and develop my people handling skills. IDBI was forced to convert itself into a universal bank in keeping with the sweeping changes in the working environment. With Government holding at 65% . The Bank is a financial super market offering a basket of products to suit the diverse needs of the customers in the wholesale as well as retail segments. The continues play role of a development bank with infrastructure financing on top of the agenda.48. The real challenge is to attract the customers. Ms Sikha Sharma 10 . Q. when the development financing institution model failed in India. Banks intermediate between small savers and entities issuing high denomination instruments.00. Stamp collection etc Q. IDBI BANK has a better competitive edge compared to other PSU banks. Smt Usha Thorat. What are the functions of Ralationship Managers in Banking? Customer Relationship Management (CRM) is an innovation of the present day banking where the bankers are increasingly required to market themselves.Smt Indra Nooyi.5000. retain the customers and translate the small value customers to high value customers. Outdoor games. I want to excel in that function. Reading. I may not be able to subscribe to a bond of face value Rs.53.50. Q. Front office is a marketing function.51. Mutual funds as a financial intermediary can pool together small savings and participate in high value denominations. The Relationship Managers nurture existing relationships. Whether you like back office job or front office job? Why? Sir..1.000. How do you differentiate IDBI Bank from other PSU Banks? In the liberalized environment.Smt Shyamala Gopinath. What is your Hobby ? Writing poems. deepen the relationships and and create new relationships.Naina Lal Kidwai.Smt Chanda Kochhar. Smt . Name two women Deputy Governors of RBI . Name a few high profile successful women executives in corporate sector especially in banking sector. Gardening.49.
options. Banks.USA ? RBI . Q. There is a slogan that “ Poor are bankable and rural banking viable”. the world of microfinance refers to banks extending small loans to borrowers without bank accounts and credit history. What is financial inclusion ? Sir. Money Market – basically inter-bank market is regulated by RBI.58. What are the various financial markets? Capital market – primary market (IPOs) and secondary market (Stock ExchangesBSE and NSE) . futures and swaptions are instruments Commodity Future Market – metals. Having achieved widespread recognition as a development tool. C Rangarajan . not to make money out of poor people.bills discounting etc. Power Exchange are examples of commodities exchanges.57. are capital market instruments. both in developed and developing countries. Discount Market Derivative market – swaps . agriculture goods . debentures . Forward Markets Commission regulates these exchanges.55.The spirit of financial inclusion is to bring un-banked and under-banked areas and people to the banking fold. commercial paper. It is regulated by SEBI. Money market instruments are call money . financial inclusion is taking deep roots to reach the message of banking to the lowest strata of the society. certificate of deposit.bonds etc. Q. What do you mean by microfinance? Sir. UK.SLR:A certain percentage of demand and time liabilities to be held in liquid investments and approved Government of India securities. have realized that reaching out to the poor and marginalized is profitable.56. What are the names of the Central Banks of India.54. Q. Microfinance is seen as an opportunity to help people get out of poverty in a business way.Q. 11 . power are traded. Preference shares. What are CRR and SLR ? CRR:A certain percentage of demand and time liabilities to be deposited by every bank with RBI. Bank Of England . microfinance has been promoted by many national government and multilateral agencies eager to bridge the financial inclusion gap. treasury bills . Equity Shares. Q. notice money . Recommended by a committee under the chairmanship of Mr. former Governor of RBI in 2006 . Federal Reserve respectively. NCDEX .
banks in a competitive landscape in their eagerness to attract customers have been lending at rates much below the BPLR. road and port facilities and dedicated rail connectivity with Bangladesh.17000 crores allotted for development of an Integrated transport comprising inland waterways . The base rate system was necessitated by the failure of the earlier BPLR system to produce transparency in lending rates as well as its inability to effectively transmit 12 . regulatory cost for CRR and NPA provisioning. gas-based power plants and gas-cracker project in different parts of the state for infrastructure development Focussed attention on agriculture and rural development for employment generation Institution building for sustainable development of the state Development of N-E Air corridor for Airlines to increase operations Higher education and skill development for employment opportunities Dedicated policies for development of the state with focus on people centric policies aiming at empowerment of the people and self governance. operating expenses and profit mark-ups. A number of Hydro-power units are being promoted as the state has potential Q. sub-prime borrowers who can not raise money from the market are forced to borrow from banks at higher rates. Rs.31000 crores was allotted from PM’s fund in 2008 for development of better road and rail links and other infrastructure development Rs. What are the initiatives being taken by Government for development of Assam? Rs. However.Q.550 crorse was allotted for rural electrification of villages in border districts Initiative insetting up of hydel power. RBI directed banks to switch to Base Rate with effect from July 01. wood grass) Development of ecotourism for employment A number of projects are being thrown to private sector under PPP model for infrastructure development. RBI advised the banks to introduce Board approved Bench Mark Prime Lending Rates in 2003 to act as bench marks for pricing of loans.59. 2010 so that no Bank can lend at rates below the base rate. What is the difference between BPLR and Base rate? Why Base rate was introduced? After deregulation of interest rates in mid-1990s. Since BPLR frame-work has not stood the test of time. Thrust on development of agro-industries( bamboo. The BPLR is arrived at taking into account all inclusive cost of capital. AAA rated companies are able to raise funds from the market at rates much lower than the cost of funds of the banks BPLR is meant for prime borrowers. NEDFi is being positioned to play a proactive role in interacting with both domestic and international financial institutions for development of the state by harnessing local resources and create synergy between Govt and lenders. 60. Effectively.
e BPLR linked loans will continue till reset of interest rate or the closure of the loan or the customer voluntarily accepts base rate. Cost of funds and Yield on assets are inadequate to identify individual sources of profit and loss.25% and Base rate is 8%. Return on Net Worth (RoNW). Advantages: Appropriate Pricing of assets and liabilities Enables business focus: encourage product/segment/business line which are more profitable and discourage which are less profitable Business guidance to operating units are directed through a single parameter i. 13 . Q. regional level. In other words. FTP is the engine to decompose the aggregate margin into various operating groups who have contributed to the margin. branch. product. Every deposit raised/funds lent are internally priced based on FTP for the corresponding maturity and remain logged till maturity. Banks will determine their actual lending rates on loans with reference to the base rate and by including such other customer-specific charges as considered appropriate.61. is not agreeable to the demands of the banks. However. Return on Assets (RoA). keeping in view its role as the watchdog of the financial system.monetary policy signals from the central bank.e Transfer Price Performance measurement of product/segment/unit Transfers non-transaction related risks like interest rate risk. In FTP an internal price is explicitly assigned to each deployment and funding. Though bankers are insisting for a sunset clause for switching from BPLR to Base rate. With the introduction of the base rate system. all category of loans will be prices only with reference to the base rate with a few exceptions. currently RBI permits dual rates i. Net Interest Income (NII): o For Deposit = FTP on deposit less actual rate paid o For loans = Actual return on loans less FTP on loans Business units performance is judged by NII and risk adjusted NII. Currently BPLR of IDBI Bank is 13. The internal price represents the internal value/cost of the transaction on the value date. What is Fund Transfer Pricing(FTP)?What are the advantages? Aggregate indicators like Net Interest Margin (NIM). NII on deposit + NII on Loans + NII on Investments + NII of Treasury = Bank’s NII. portfolio credit risk etc to central ALM unit /CRMG Operational units focuses on their respective functions to maximize their Net Income Formulation of incentive structure based on objective assessment of performance. segment. client. RBI. FTP is mechanism to calculate net income at individual deal.
It is an appropriation of profit.67. renewal or diminution in the value of assets or retained by way of providing for any unknown liability I e. Total of share capital plus reserves minus intangibles also is called Net Worth or Equity. What is difference between Reserve and Provision? Reserve means any amount written off or retained by way of providing for depreciation. Reserve may be capital reserve.65. It shows assets owned and liabilities owed as on a particular date.63. It is a relationship of borrowed funds to owned funds. Net worth is defined as what remains after outside liabilities are paid off. Define Net Worth or Equity. Q. refers to mix of debt and equity funds. Practically reserve is an undistributed profit retained just to provide for any liability or prospective losses. that part of profit which is set aside for any unknown liability.64. What does a Cash/ Fund Flow statement represent? A Cash/Fund flow statement shows where from cash/funds have come and where gone during a period. It is also defined as total of tangible assets net off outside liabilities.66. Q. Q. specific reserve or secret reserve.62.e whether an entity has earned profit or incurred loss. Provision means any amount written off or retained by way of providing for depreciation. renewals or diminutions in the value of assets or retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy. an American concept or gearing . general reserve. a British concept . What do you mean by Leverage or gearing? Leverage . Q.e Profit and Loss account should be debited for this purpose and the 14 . What does a P & L statement represent? A Profit and Loss Account shows the operating performance of an entity during a period of time i. It shows sources and uses of cash/funds from operations. Owned funds or equity are costlier than debt or borrowed funds as interest on debt funds are tax deductible and dividend on equity is an appropriation of profit. Q. investment and financing activities. Provision is a charge against profit i. What does a Balance Sheet represent? A Balance Sheet depicts the financial position of an entity as on a particular date.FINANCIAL STATEMENTS AND RATIOS Q.
Q. the operating results during a period of time and where from funds have come and where gone during the period. In this statement the overall increase/ decrease in the total volume of working capital is only considered. The objective of the fund flow statement is to know the increase/decrease in assets and liabilities i. Fund flow statement on the other hand discloses the movement of funds during the year. processes or services.69. What is the difference between cash flow and fund flow statements? Cash flow is basically a statement that shows the movement of cash during the year. This is based on balance sheet basis where all increases/decreases in assets and liabilities are considered whether on cash basis or credit basis. Deferred Payment /Loan Guarantees . are called contingent liabilities. It takes the opening cash balance. What are contingent liabilities? Liabilities which are contingent to happening of certain events. What are intangible assets? Intangibles but valuables like Goodwill. What is the difference between Financial Accounting.same is created for a known liability as well as known reduction in the value of an asset which cannot be ascertained properly. Q. Financial accounting is concerned with preparation of Balance Sheet. analyzing and reporting financial transactions.e where from funds come and where gone. processing and analyzing costing data either for product costing or cost control/reduction purposes.70. Profit and Loss Account and Cash Flow Statement of the entities indicating the financial position as on a particular date. Q. Business Loss or Deferred Revenue Expenditure like Research And Development expenditure. Management Accounting: The application of financial accounting and cost accounting data to generate information to aid managerial decision making in its functions or promoting maximum efficiency and in formulating and coordinating future plans and subsequently in measuring the efficacy of their execution. adds all cash inflows and deducts all cash outflows to arrive at closing cash flows.71. Patents. Cost Accounting and Management Accounting? Financial Accounting: is a process and set of procedures for recording summarizing. 15 . Cost Accounting: The technique and the process of ascertaining the amount of expenditure incurred in or attributed to particular products. This is on actual cash/bank transaction basis. Under Writing Commitment and Letter of Credit contingent liabilities till devolvement after which these become contingent assets. classifying.68. Q. Copy wrights and fictitious assets like miscellaneous expenses not written off . The objective of the cash flow statement is to know where from cash was generated and where applied during the year. This involves collecting. classifying.
Capital Adequacy Ratio establishes a relationship between capital funds on the liability side and risk-adjusted assets on the asset side of the bank’s balance sheet and requires banks to mandatorily adhere to internationally accepted minimum capital standards to contain risk. Switzerland based Bank for International Settlement(BIS). BIS is the Central Bank of the Central Banks of the member countries. What is Basel Capital Accord I / BASEL II/ BASEL III norms ? What is the rationale? Capital Accord I In the midst of the progress towards unregulated banking and the internationalization of financial markets. The capital accord is an international unified standard prescribed with the following three objectives: i) To increase stability of the international banking system and harmonize competitive conditions between banks ii) To strengthen the capital bases of the banks which were deemed to be too low 16 . an affiliate of the World Bank in 1988 is originally known as Capital Accord I . What is capital adequacy Ratio? What is the rationale for capital? Risk-Adjusted Capital Adequacy Ratio(CAR).Q. The rationale for capital adequacy are given as under: Expected losses are to be covered by earnings and provisions and hence need to price risk appropriately Unexpected losses or losses beyond normal range of operations have to be met by capital. a regulatory measure prescribed by BASLE . thus providing a basis for depositor confidence in the bank Capital determines the maximum level of assets (loan) of a bank. Rationale for thrust on capital of Banks are as under: Capital is a key factor to assess safety and soundness of a bank Adequate capital serves as a safety net for a variety of risks to which an institution is exposed in the course of its business Capital absorbs possible losses .72.73. BIS introduced Basel Capital Accord I which prescribed each bank operating in international market to maintain capital equal to 8% of the risk adjusted assets initially to contain credit risks. the initial accord was extended to include market risk. In 1996 . Under-Writing commitments and Letter of Credit by attaching proper risk weights as banks in their eagerness to earn fee based income take huge exposure in off-balance sheet items. Governors of Central Banks are members of BIS. Q. based on the Cooke Committee recommendations in 1988 . Capital Adequacy Ratio as a regulatory measure scores over the conventional Debt Equity Ratio(DER) followed by RBI due to the following: CAR is a holistic measure as it links capital fund on liability side to assets on the asset side of the balance sheet unlike DER which took into account both debt and equity from liability side only ignoring asset side altogether It takes into account the quality and composition of the assets on the asset side by attaching risk weights to various category of assets It takes into account off-balance sheet exposure items like Deferred Payment/Loan Guarantee.
Provision and loan operating profit and loss reserves disclosed in the Balance Sheet .Subordinated bonds preference shares .Perpetual non-cumulative .Revaluation reserves .Reserves created out of .Equity share capital . RBI as an added precaution required the Indian Banks to graduate to a level of capital equal to 9% of the risk adjusted asset phased over a period of time. The total capital would comprise of Tier I and Tier II capital as under: Bank’s Capital I ------------------------------------Tier I capital Tier II Capital . need was felt to strengthen internal control and governance of the individual banks To set universally recognized standards to replace crude minimum capital of 8% for a weighted bundle of bank’s credit risks devised in 1988 To ensure better safety and soundness of the financial system Need to have a re-look at the Capital Accord was necessitated due to the following: Volatility of the financial markets Significant degree of financial innovation Collapse of the Barings plc.iii) To restrict both on and off balance sheet activities However. a150 year old British Bank in 1995 Financial crisis (Asia 1997) and (Russia 1998) Risk for internationally active banks have been complex Fear that capital requirement did not match a bank’s true risk profile 17 .Hybrid capital instruments Tier II capital can be upto 100% of Tier I capital Basel Capital Accord II Objectives: To realign bank’s capital with risk profile (bridge economic capital with regulatory capital) Unlike Capital Accord I which concentrated entirely on capital .
depositors and supervisors are not blinded by science. there is a set of public disclosure requirement.A system of dialogue between banks and supervisors on the ground that not even the most elaborate rules in the Pillars I can deal with the peculiarities of each institution. Weighted Risks Definition of Capital Credit Risk Market Risk Operating Risk Standardiz ed Approach (SA) Internal Rating Based Approach (IRBA) Foundation IRB Basic Indicator Approach Standardiz ed Approach (SA) Advanced Measuremen t Approach Advanced Approach (AIRB) 18 .BASEL – II – 3 Pillars Minimum Capital Requireme nt Supervisory Review Process . Market Discipline .To ensure that the investors.
5% “conservation” buffer of capital. On the other side of the spectrum. The BASEL III agreement was reached in Switzerland by central bank governors and top supervisors from27 countries after a year of horse-trading and lobbying that involved banks and governments seeking to protect their national interest. The 7% component is expected to include a 2. ROI. Quick Ratio. What are prudential guidelines? Income Recognition Asset Classification Provisioning Risk-adjusted Capital Adequacy Transparency and Disclosure Exposure Limits to individual companies/groups Compliance of Know Your Customer(KYC) Norms Compliance of Anti-Money Laundering(AML) Guidelines Q. Current Ratio. The banking industry apprehends that tougher capital requirements may force it to curtail lending as banks keep more money in reserve. Definition and rationale of Debt Equity Ratio. central bankers and bank regulators from across the globe met at Basel on September 12. P/E multiple.The accord requires the banks to hold basic levels of top-quality capital known as “common equity” equal to at least 7% of the bank’s risk adjusted assets. it could face tighter restrictions on its dividend and executive compensation policies. Long Term Debt Debt Equity Ratio = ---------------------Equity or Total Outside Liabilities (TOL) -------------------------------------Equity 19 . NPV. Q. 2010 and reached a deal on new capital rules known as BASEL III in an effort to create a more stable financial system and ensure that the interconnected global banking system does not face another crisis such as that which led to tax payer funded bailouts in 2008 and 2009. DSCR. The new capital ratio represents a substantial increase from the current requirement of 2% with a phase-in period extending in part to January 2019 ( 4% threshold imposed on US banks after the 2009 stress test).74. Break Even Point. banks whose capital cushions exceed the new requirements are likely to face pressures from analysts and investors to start repurchasing shares or raising dividend payments.75. FACR. EPS.Basel Capital Accord III In the aftermath of global financial crisis. If capital levels at a bank dipped below this buffer. a move that could take a toll on shuttering economies in the developed world. IRR.
e How many times the net fixed assets provide a cover of security for the term liabilities.X Capacity Utilisation % Contribution per unit 20 . Fixed Cost BEP = ------------Contribution Fixed Cost Operating Break Even Point = ------------------------. Return (Gross Profit – Depreciatio) Return on Investment(ROI) = -----------------------------------------Investment(NFA+CA+Investment +FLR) FLR = Future Lease Rental Receivable ROI indicates the earning power of the assets. It is an indication of risk to the banker as debt is a contractual liability carrying fixed rate where as equity has ownership interest with no mandatory obligation to pay dividend. Net Fixed Assets Fixed Assets Coverage Ratio (FACR) = -------------------Long Term Liabilities FACR indicates the security cover for the term liabilities i. Net Profit+Depreciation+Interest+Lease Rental Debt Service Coverage Ratio = --------------------------------------------------------Instalment of Principal + Interest+Lease Rental Debt Service Coverage ratio (DSCR) indicated the debt service capacity of the borrower. It is a ratio of availability and obligation. Security Margin indicates excess of net fixed assets over long term liabilities as a percentage of net fixed assets.e ability to meet short term or immediate obligations. It indicates long term solvency of the firm. Net Fixed Assets – Long Term Liabilities Security Margin(%) = ------------------------------------------------Long Term Liabilities Break Even Point(BEP) is the level of activity at which there is no profit or no loss .Debt Equity Ratio indicates the financial condition or financial health of the entity.BEP is the level of activity at which the unit starts earning profit . DSCR indicates how many times the available funds from operation provides a cover for debt obligation . Current Assets Current Ratio = --------------------Current Liabilities Quick Assets(CA – inventory) Test Ratio = -------------------------------------Current Liabilities Current ratio and quick ratio are liquidity measures and indicate liquidity or short term solvency i.
Earning Per Share(EPS) EPS is generally considered to be the single most important variable in determining the company’s share price. What are the potentials/promises/advantages of Retail sector to IDBI ? A.Depreciation Cash Break Even Point = ------------------------------.Fixed Cost . P/E Multiple Market price per share P/E multiple = --------------------------Earnings per share P/E multiple shows how many years earnings are reflected in the market price and indicates the investor’s confidence in the management of the company.The sector will enable volume growth in business as there is shrinkage of normal corporate advances due to financial disinter mediation and competition from market 21 .e profit or loss without taking into account non-cash items like depreciation and amortization of miscellaneous expenses. The following are the major perceived benefits. It is also a major component used to calculate the P/E valuation ratio. Q.Retail sector will help in increasing the share of high yielding assets/advances .Help in pushing up the share of low-cost CASA .Huge potential for fee based income . Internal Rate of Return (IRR) Internal Rate of Return is the discount rate at which NPV is zero. It is otherwise known as Break Even Yield or DCF yield or marginal efficiency of capital. Net Present Value (NPV) Total of future cash inflows net off cash outflows discounted at the cost of capital. . IRR is the minimum desirable rate of return from the view point of stake holders who are internal to the project. Net Profit – Dividend on Preference Shares EPS = ---------------------------------------------------Average Outstanding Shares EPS serves as an indicator of company’s profitability.76. Retail sector has huge potential for IDBI Bank in the present juncture.X Capacity Utilisation % Contribution per unit Cash BEP is the level of activity at which there is no cash profit or cash loss i.
• IDBI Bank has extensive presence throughout the length and breadth of the country and known for nurturing industry – tiny. No longer are the Retail advances considered only for meeting priority sector requirement. . They are often in need of short term funds at times of a sudden bunching of orders. as loans to corporate sector no longer seem lucrative. Indian Banks including Foreign Banks are looking at Retail sector as a thrust area. Bank guarantee and foreign exchange limits .Retail loans provide opportunity for fee based income as predominantly Banks provide working capital facilities in the nature of cash credit. small. 22 .Banks explore opportunities for trade finance. -Generates employment opportunities by adopting labor intensive techniques -Wider dispersion of economic benefits -Promotes entrepreneurship -Economic use of available raw material as units are located in close proximity to the source of raw material Q. No. forex advisory services and venture capital . IDBI Bank perceives huge growth potential in Retail sector which has a promising potential for a developing country like India.79. whenever there is an inventory pile up or when receivables are blocked. cash management services.Also there is scope for low cost funds through CASA growth . net-worth. Banks both in the public as well as private sector are chalking out strategies to strengthen their presence in this sector because of the following. Size. the counter parties with whom they are trading. the current growth trajectory and the management record . How do you perceive growth opportunities in Retail business in IDBI Bank vis-à-vis other giants in the Banking space? • Despite IDBI Bank being a new entrant to the banking business and facing competitive environment. What are economic merits of Retail sector ? A. Is it because the Banks have to comply with the priority sector target? A.78. resilience.The external collaterals are easy to obtain . overdraft and bill discounting apart from non-fund based limits like Letter of credit.large and mega projects . Q. the Retail segment is emerging as a promising business segment for Banks. • Forces of globalization offer tremendous growth opportunities in financing small and medium enterprises.The sector offers potential for risk diversification due to volume growth and the consequential savings in capital which otherwise would have been provided to contain risk Q.Credit requirements of Retail sector are often predictable.Small retail loans help Banks to spread credit risks through diversification of asset base .(Larger corporates with strong balance sheet tapping market directly for their funds requirement due to better visibility and cheaper resources) .77. medium.Mostly assistance is provided based on intimate knowledge of the past financials.
Q 83. You have been in IDBI Bank for a while. EXIM Bank is now the only forfaitor. • Intergenerational wealth transfer – parents depositing money/taking insurance policies for the benefit of children.100000 in which small investors cannot invest. • Dispersion of funds – investing money in those pockets where there is potential for industrial promotion and resource endowment. • Provide a range of advisory and fee based services • Contribute to the growth and stability of the financial system by regulating the flow of money in tune with the Monetary Policy.81. What is your perception of the changing role profile of Indian Banks in the emerging market environment? Banks as financial intermediaries play the following important roles • Asset transformation – mobilizing funds. Q. • Information support . • Denomination Intermediation – Mutual Funds pooling scattered and small savings and investing in securities of higher denominations say for example Debenture having face value Rs. globalization is the convergence of economies and cultures and harmonization of markets and regulations that is gradually turning the world into a single economic and cultural place. • Forfaiting – Banks buying credit sales when buyer and seller are in different countries.Banks are in a better position to provide information on vital aspects of business by in house Research and Development.82. which are idle assets in the hands of the depositors and investing in productive industrial assets. • Globalization is definitely beneficial to the banking business as technovation (technological innovation) in communication engineering has linked the major business centers of the world offering growing business opportunities to the banks. SBI and Canara Bank have factoring subsidiaries. Whether it is beneficial or detrimental to Banking business? • Loosely defined. Define Globalization.80. Q.• IDBI Bank has excellent connectivity and relationship with national and international agencies engaged in promoting small and medium enterprises. What do you know about IDBI? 23 . What are the popular trade finance products? The popular trade finance products include • Letter of Credit • Guarantee • Bills Discounting • Pre-shipment/Post shipment Financing • Factoring – Banks buying credit sales when the buyer as well as the seller are in the same country. • Term loan Q.
Q. IDBI was converted into a bank to have critical mass in terms of branch network to mobilize cheaper funds and lend on competitive terms. How do you feel the challenges can be translated into opportunities? • Organizational redesign in tune with the changing business scenario – we have gone for business vertical system to have focused attention on segmental business growth • Change in the mind set – we have to reinvent ourselves in response to the demands of the time • Global scale product design to suit the customers from across the globe • Technovation – harnessing technology for better product delivery and customer value creation – today IDBI is on e-Super Highway offering e-banking .e branch network • Competition in raising deposits and lending money at market rates • Trained manpower for retail. retaining and translating small value customers into high value customers • Communication – making communication as an organizational culture in translating the vision into action through unified drive 24 . Liberalization of macro economic policies and diminution of controls and regulations brought in sea change in our operating environment. What are the challenges IDBI Bank faces? IDBI Bank. RETAIL. Q.84. mobile banking . coordinating the activities of the banks and financial institutions engaged in lending money to industry and promoting industry and institution building for the financial system . • Risk Management – credit risk. market risk and operating risk stemming from the hazards of the market economy. retaining. IDBI was provided with all necessary protections. plastic money . hearing the unheard and designing products accordingly • Service excellence – rendering value added customer service to differentiate us in the competitive market scenario – attracting . anywhere banking . The predominant functions of IDBI were providing long term loan. • Inability to market IDBI Bank as we don’t have necessary marketing skills as IDBI was never required to market. utilizing and preserving quality manpower in absence of market related salary.• • • IDBI was set up as the apex development bank of the country by an Act of Parliament i. • Wave of disinter mediation as depositors as well as the borrowers prefer to tap the market directly for better visibility and higher yield/cheaper resources. To cope up with the changing environment.Our entire funds were coming from subsidized sources as IDBI was accorded a special status. Agriculture business • Attracting. • Access to cheaper funds in absence of critical mass i. trade finance.e IDBI Act 1964 to operate in close proximity to the development policy of the country. • Asset Liability Management as the bank mobilizes short term funds through CASA and lends to finance long gestation infrastructure projects.85. a new generation bank faces the following challenges. digital cash etc • Innovation – predicting the customer needs.
PBG etc to have focused attention on diversified business growth and customer value creation. capital structuring. water utilities. financial engineering. urban infrastructure projects etc Trade finance Agrifinance RETAIL sector Cluster financing Microfinance Venture capital and Vulture capital Fee based activities – project appraisal. retail banking . IDBI acted as a wholesale bank operating in close proximity to the development policy of the country with specialization in provision of long-term finance to industry. industrial promotion and institution building. utilization thereof by proper placement planning . preservation and development of human resources through training . portfolio and wealth management services Banc assurance – marketing insurance products of insurance majors. To have critical mass by way of branch network to mobilize cheaper resources and have necessary competitive edge. AGRI. RETAIL. • • • • • • • • • • Strategic HR Policy – focused attention on acquisition of quality manpower.87. On recommendation of the business reengineering consultants. IDBI Bank was converted into business verticals – ICG. fee based business and CASA growth What are the areas you know having growth potential for IDBI Bank ? I perceive the following areas to have huge potential for growth. loan syndication.86. IDBI Bank has the depth of pocket and staying power and unique Balance sheet to compete in the market Q. • • • 25 . port(sea port and airport). Infrastructure financing-financing of road. merchant appraisal.• • • Q. the operating environment for DFIs underwent seachange forcing them to transform into universal banks. MCG. market related incentive package . telecom. proper retention strategy and talent management Research & Development – creating business intelligent groups for sensing business opportunities by interacting with business group across the globe / inviting the business group heads to share their vision at periodic intervals – deepening existing relations and mobilization of new relationships Business Mix – strategic thrust on diversification into structured financing . What transformation have you witnessed in IDBI in the recent past? • Originally created as an apex Development Financing Institution (DFI). LCG. corporate debt restructuring. IDBI Bank and subsequently United Western Bank were merged with IDBI. IDBI was provided with protection as a part of the business and entire resources were coming to us without any effort. business reengineering. forex advisory services. power. With liberalization and deregulation of macro economic policies and gradual phasing out of protectionism in the 1990s. coordination of activities of banks engaged in lending to industry.
capital adequacy. What are the functions/duties of a Business Analyst? • Sir. Last step would be charting the final course of action which would ensure optimal use of available resources. Thorough understanding of the needs of the clients. Test Planning. It involves: 1.89. provisioning. asset classification. improve efficiency of operation and ensure the completion of the project on time. Hence brainstorming during Requirement Analysis. Managerial abilities and Domain Knowledge. Requirements Analysis. Though I enjoy the Test Planning. I enjoy the Requirements Gathering and the Requirements Analysis phase of the SDLC the most. Why do you aim to be a Business Analyst? • Sir. 3. the Test Execution and the Defect Analysis phase.5 years of experience as a Software Testing Engineer I have worked in almost every aspect of the Software Development Lifecycle. Diversification into Life Insurance (IDBI Fortis Life Insurance) and Private Equity to take advantage of the market opportunities Increased customer focus Proactive and dynamic HR policy with focus on induction of fresh talent from the market to supplement the required skill profil Q. transparency and disclosure. 5. Test Execution and Defect Analysis. Thus showcasing new possibilities and in turn expanding the horizon of understanding.ultimately the goals of a Business Analyst are – 26 .• • • • • • • From total manual operations IDBI has moved into hitech operations -today our entire operations are technology driven – IDBI is on e-Super Highway enabling quicker product design and delivery. Q. The present day business demands a blend of Technical Skills. I aspire to excel as a Business Analyst as I find the role very stimulating and challenging.88. We have put in place Asset Liability Management and Risk Management practices as part of our strategy to cope up with changing business environment Treasury operations have been centralized with market driven operations Funds Transfer Pricing has been introduced to sensitise the operating departments to the pricing of products so as to optimize NII From statutory regulation we have moved to prudential regulation by way of income regulation. Then documenting the entire process taking into account the minutes of the Requirement Analysis. The Software Development Lifecycle comprises of – Requirements Gathering. During my 2. Conducting a review meeting for sensing the various problems that may arise and attempting cost effective solutions to those problems. 2. Every person in the team can contribute to the understanding of the requirement. 4.
To ensure that there is less of rework. o Conducting a review meeting to discuss the problems that would arise and the solution to those problems. Even if the entire project is not completed. 2. Ensure that the project is completed as per schedule. Hence brainstorming during Requirement Analysis. o Every person in the team can contribute to the understanding of the requirement. Optimal use of available resources i. The scope of business analysis may encompass analysing the set of tasks. material and minutes . material and minutes . One needs to look at the reason why the defects persist and look at various ways to get rid of the defects etc. Q. Scanning the entire environment for factors that may affect business and sensing the various problems the enterprises are likely to face and attempting cost effective solutions. What do you understand by the concept “Business Analysis? • Sir. • Business Process Re-engineering or Business Process Improvement may simply be defined as Re-engineering or Improving any existing Business Process so as to ensure: 1.90. 27 .e men .business analysis may broadly be defined as scanning the entire environment in which the business operates for factors that may affect and sensing the various problems the enterprises are likely to face and attempting cost effective solutions. the tasks which merit high priority should be completed on the scheduled delivery date. money. To ensure that there is less of rework. Even if the entire project is not completed. 2. One needs to look at the reason why the defects persists and look at the various ways to get rid of the defects etc.1. • Business Process Improvement can be achieved in the following ways: o Thoroughly understanding the needs of your client. o Then documenting the entire process taking into account the minutes of the Requirement Analysis. Solutions may include Business Process Reengineering or Business Process Improvement.e men . To ensure optimal use of available resources i. knowledge and techniques required to identify business needs and determine solutions to business problems. Improve project efficiency by reducing rework. Improve project efficiency by reducing rework. 4. Project is completed as scheduled. 3.money. the tasks which merit high priority should be completed on the scheduled delivery date. 3. Thus showcasing new possibilities and in turn expanding the horizon of understanding.
knowledge and ethnic culture. I am sure the course would definitely add value to my pursuit of excellence in any organization that acquires my services. I have learnt the basic values of life from my family. My accumulated experience over the years as a student as well as more than two and half years work experience in an IT major will enable me to interact with the class meaningfully. negotiation and team building. To be successful in the emerging scenario. What is the do-one-thing-at-a-time mindset? • Sir. an ambassador of Infosys at the client location and last but not the least an MBA aspirant. Gone are the days when one was expected to be the Master of a Trade. Today it is not only expected but appreciated if an individual is the Jack of All Trades.5 years of experience in the IT Industry.the do-one-thing-at-a-time mindset means focusing on a single task at a time. different individuals bring to the class room their own uniqueness. In addition.92. 28 . a team mate. With this experience how would you contribute to the MBA classroom? • Sir. Managerial abilities and Domain Knowledge. Q. As for me I am playing multiple roles like a daughter. Over all tough and trying times have not only made me more resilient but also brought out the best in me and made me more responsible for my actions. each one of us has to adorn different hats at different times. So many responsibilities have brought to forth my Multitasking Abilities.91. You have 2. Each role expects me to be a different person at different times. The class will definitely stand to benefit from the values I have inculcated in my life and the set of softer skills like communication. Q.5 years of industry experience as a Software Testing Engineer have contributed in building a strong Technical Background and also introduced me to the Banking Domain. a configuration controller for my team. It will provide an excellent platform for exchange of ideas.93. Each person in the classroom can contribute to my learning process and I can contribute by being an active learner. The enterprises need man power resources with multi-tasking abilities. improve efficiency of operation and ensure the completion of the project on time.today’s business enterprises are operating in an excitingly challenging and dynamic environment. Also the transition between the roles has to be done flawlessly and effortlessly. People Management Skills and Time Management Skills. motivation. From PGSEM I look forward to getting a good grounding in managerial skills and update my knowledge in the related business areas. Q. a sister.o Last step would be charting the final course of action which would optimal use of available resources.the classroom is a pool of talent and a wide range of Industry experience ranging from 2 to 14 years. How would your MBA degree help you in achieving this goal? • Sir. My technical qualification plus 2. a business analyst requires a complete blend of Technical Skills. Responding to changing scenarios. Learning by experience sharing amongst such people becomes very enriching. Also I have learnt to prioritise the tasks at hand and harmonise the different roles expected of me.
We can stretch to any extent as the situation warrants. Never the less relentless pursuit of excellence in what we do should be our motto. “ United we stand divided we fall “. • Sir. Q. Inter-school competitions offered a range of exciting events to test our talent and tenacity. What did you learn as the Vice-Captain of the Girl’s Baseball team? • Sir.96. Team spirit and winning edge are valuable inputs learnt during the tenure.95. There is no room for mistakes. pursuit or obsessive passion.Q. it was a terrific experience to build rapport with people from outside our circle of influence. People Management Skills and Time Management Skills. At the same time I want to fulfill my personal aspirations. when I got to know that I have been short listed for the Interview process of the IIMB PGSEM.the best lesson I have learnt is “ Success is not permanent and failure is not fatal “. Today’s women are multitasking by balancing both their personal and professional lives. There is no limit to the limited potential of a person. at the client location. achieving perfection is a credo. I had to co-ordinate with my team mate to get the Approval letter signed by my DM. Perfection is an achievement. best fit for home making and marriages are their top priority”. career. primarily I am the ambassador for my company. Give one instance where Multitasking Abilities. What will be your comment? • Sir.94.today women by virtue of their softer skills better fit into modern day business environment. 29 . Q. Women have excelled in the field of white collar jobs. We have to live with imperfection. hence need to manage time for preparing for this interview without letting it affect my work. All eyes are firmly set on how skillfully I perform my tasks and deliver the best. I always strive to achieve perfection. at each and every step of my life it has been expected of me to showcase qualities like Multitasking Abilities. But the world is imperfect. But we should be content with what we achieve within the limitations of available resources. We should aim at perfection in our vocation. I was in Mumbai. They should not be judged by their attire but by their multifarious work performance. Why do you consider it a short coming? • Sir. But it was only recently that I became aware of these expectations. Also as Vice-Captain of the Baseball team. For women in today’s world there is much more to be achieved beyond the realms of marital existence.94. “Traditionally women are judged by their attire. People Management Skills and Time Management Skills have helped you achieve your motive. Q. At the client location I represent my company and its values. for Knowledge Transitions sessions. Cordial relations with my team mate made the process absolutely smooth.
There are so many social issues. I intend to work with media to create awareness among the donors the urgency of pronouncing heir oath to serve the humanity at large.I have started discussion with a few prominent NGOs like Bharat Sevashrama . I feel international agencies like UNESCO. Blood donation campaigns organized in school and college have demonstrated that public are not averse to donate blood. Q. I propose to organize blood donation camps at municipality level to educate the public. 30 . But they donot have access to the source and the type of blood available. Governments across the globe are initiating proactive measures for wider reach of basic health services. the issue is being addressed but there is vast scope for improvement. The Indian Red Cross Society etc to create a data base about availability and type of blood with each Blood Bank and to network the Blood Banks. Q. A data base will be created for quick reference and future use which will give instant information about the availability of blood. a market for blood where donors and receivers can operate without inhibition. A few of my friends are working on media planning for blood donation drive in rural areas. There is poverty amidst plenty.Q. I intend to play a critical role to bring the two groups together. I feel there is scope for setting up Blood Banks at municipality level with facilty for storage of blood for local use.97. Health services being accorded the status of soft infrastructure. I will work with some NGOs to create a Blood Bank . The blood donors donot know who needs what type of blood at what point of time.98. I feel timely availability of blood will definitely save many lives. The facility has not percolated to the village level . I have a deep passion for blood donation because the noble activity has direct link to serving humanity as life saving blood is made available to the needy patients at a critical time. Don’t you think this issue is being addressed by NGOs like “The Red Cross Society”. Q.99. UNICEF etc should be roped in to share their global experiences in this regard. What is the different thing that you would do to create awareness? • Sir.What have you done so far to address this issue? • Sir. But facilities need be created in close proximity. How would the experiences in your life so far help you achieve this noble cause? • Sir.I am deeply touched by the plight of the large rural masses in the villages who have been deprived of the basic medical facilities.100. Patients across the globe need blood. I find a great challenge in this activity. I have been eye witness to large infant mortality and delivery deaths in rural areas. why did you choose Blood Donation? • Sir.
Q. Under transaction banking commercial banks provide a gamut of innovative and customized solutions to meet the diverse needs of the corporate clients. What are the advantages/disadvantages ? In a fiercely competitive environment. Follow-on public offer. Transaction Banking has huge potential for growth. The range of services include . funding. preshipment and post-shipment financing. What are the prerequisites for Trade Finance operations? With globalization of business. Qualified Institutional Placement(QIP). accounts service and liquidity management solutions for fee based income . Our verticalization is a response to competitive banking landscape and the sweeping changes in the operating environment. The major disadvantage is inability to provide personalized service to specific segment of the customers.web-enabled technological platform to provide leading edge trade solutions 31 .Cash Management Services(CMS) to corporate and institutional clients helping in payments.knowledge of FEDAI Rules . Q.dedicated talent pool conversant with trade finance operations . LC discounting. back office outsourcing etc. As the Indian economy is growing and the banking needs are emerging. countries with differing resource endowments are increasingly resorting to trade to optimally utilize the resources and increase gains and enhance welfare. collections. to provide focused attention to business growth and customized solutions to different business segments. Foreign trade is the engine of economic growth. payment.101.Security services. What are special features and scope of Transaction Banking ? Transaction Banking basically refers to the banking operations which culminate in the transactions in the books of the banks.knowledge of Uniform Customs and Practices (UCP) . information management.102. .Trade Finance products for import/export operations. supply chain financing. .custodial services. Q.Government Businesses – agency business . document handling etc. bankers perceive huge business opportunities – fund based as well as non-fund based. The following are necessary for active trade finance operations: . broker-dealer services.Q. What is the advantage/disadvantage of Core Banking System? Core Banking Solution is a departure from branch channel based distributive system to centralized decision making system. business verticals were created. GDR/ADR/ECB/FCCB operations etc. Core Banking Solution is basically a technology driven response to the growing market orientation and business growth of banks The major advantages are optimum utilization of available resources.104. private placement. collection etc. valuation reports on portfolio. Banks in India are increasingly resorting to Trade Finance. mapping out of products in retail space and prompt response to customer needs.opening LC. When the trading operations of a country grow.103. Book-running Lead Manager. remittance. Now IDBI Bank is working with different business verticals.Capital market services – Initial Public Offering(IPO). the banks have to suitably realign their operations to effectively respond to the challenges.
Q. Entrepreneurial Vision – – – – – Foreseeing and acting on opportunities Seeing value where others miss it Taking Risk as per company’s risk appetite Seize first mover advantages Unlocking the potential of the people Thrust on Growth – – – Both profitable and sustainable A means to delivering value and not an end in itself Prosperity and increasing the quality of the life of people. Maintain a sense of modesty and humility.105. 10 Point recipe for success. On completion to MBA you are appointed as Chief Executive Officer of a growing company.- suite of trade finance products networking and correspondence relationship with banks in different countries an active treasury Q.106. Never let success go to your head. Achieving Excellence – – – – Timely completion of projects within time and cost budget Optimizing the use of assets Striving to be lowest cost producer Sourcing cheaper resources 32 . i) ii) iii) iv) v) vi) vii) viii) ix) x) Dream – A dream of becoming a successful professional and strategy to execute it Values – Enduring success is always built in strong foundation of values you stand for Zest & Zeal – Never lose your zest & zeal for earning Excellence – Passion for excellence pays Self – Confidence – Build self-confidence Team Spirit – Ability to become an integral part of a cross culture team is necessary Take care of yourselves – Ability to handle stress and deal with emerging challenges Perseverance – Perseverance can make miracles happen Be innovative and have a broader social vision. Spell out your action plan.
employees. suppliers. Providing safe and healthy working environment. Concern for socio-economic development of the community. skills. customers and community at large Sustainable Development – – – – – Meeting the needs of the present generation without compromising the needs of the future generation.e. To be an integral part of business philosophy. GOOD LUCK 33 . ambitions and experience of a diverse work group Success depends on other’s work performance. As new age business manager. investors.107. what are the major challenges you foresee? – – – – – – – – – – – Keeping pace with continuously changing business environment Cut throat competition Working with cross cultural teams Meeting deadlines and targets Often have to make do with limited recourses Blend knowledge. Information overload Do hard work Energizing and motivating team May have duties that are more clerical than managerial.Building Trust – – Always acting in a competent and responsible manner Building a culture of mutual respect based on trust across all stakeholders i. Q. Use of environment friendly technology.