PGDMII (2012-14): Term III:COMB:END TERM

Total Marks: 40
Time Allowed 60 Minutes
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1. Any overwriting of the answer will not be considered

2. The Question Paper is Self Explanatory.
3. Do not staple any calculation sheet with the question paper.
4. Correct Answer carries2 Mark
5. Wrong Answer will carry negative (- 2 ) mark
____________________________________________________________________________
Name:
Roll:

A. Data
C/A Dep: Rs 5000, SB Dep: 2000 Term Dep: 3000 CRR:3%

SLR: 20%
Average Interest on SLR:10% , overhead cost 2%,
Default Premium: 0.20%, processing fee: Maturity

Premium:0.75%
1. What is the cost of fund?
2. What is RACF?
3. What is Base Rate?
4. What is loan price?

B. Data
Total

Asset:

Asset:1000,

10000,
Fixed

RBI
Asset:

Balance:3000,
300,

Income:1000, Interest Expenses:600

Total

Other
Interest

Provision

for

Investment:40
5. What is working Fund?
6. What is NII?
7. Yield on Funds?
8. Cost of funds?
9. NIM?
10.
Risk Adjusted NIM?
11.

Fill up the blank cell

12.

Fill up the blank cell

Loan

Losses

and

Inputs

Total Standard Advances Rs.50 lakhbesides

Another portfolio of Loan..Rs. 10 Lakh
Amount Repaid..Rs. 6 lakh
Realisable value of Security Rs. 1.5 lakh
Govt.Guarnted Portion : 50%
Loan is identified as GNPA
Bank wants make SP of 10% on secured part

and 40% on unsecured part

Find Total Specific Provision, GNPA and NNPA
Ratio

Soln
Outstanding Balance : Rs. 4 lakh
% of RV of security.1.5/4= 37.5%
Secured Portion: Rs. 1.5
Unsecured Portion : Rs.2.5 lakh(4-1.5)
Guaranteed Portion : 50%* 2.5 = 1.25
Net Unsecured : 1.25 ( 2.5 1.25)
Provision for secured Part: 10%*1.50 = 0.15

 Provision for unsecured Part: 40%*1.25 = 0.50

Total SP = 0.15 + 0.50 = 0.65
GNPA = 4Ratio 4/(50 + 4) = 7.40%
NNPA = 4 -1.25 0.65 = 2.1Ratio. 2.1/(50 + 4-0.65) = 2.1/53.35
= 3.93%

Mark True (T) or False (F)

13.
14.
15.

Upturn in Credit is followed by upturn in economic growth

Equity Tranche in MBS gives the lowest yield
IN OTD model, the housing loan remain in the balance sheet of

Bank
16.
The Non SLR Bonds are part of the ANBC
17.
Depreciation of Fixed assets are computed on straight line
method
18.
In Loss assets category, the NNPA is zero
19.
Income from NPA is recognized on accrual basis
20.
Income from standard advances is made on realizable basis
21.
Provision Coverage Ratio is with respect to total GNPA of the
bank
22.
Higher Growth in GDP increases the GNPA in the Indian Banking
Industry
23.
Exposure norms is applied to reduce the liquidity Risk
24.
Take out financing reduces the credit risk
25.
Unavailed part of cash credit is non-funded activity
26.
HTM investment is part of the banking book
27.
Profit Margin of Foreign Banks in India is mainly driven by
trading activity vs public sector bank
28.
ECGC charges fee to the exporters for availing loans to provide
insurance
29.
In amortized loan, the interest payment is made along with
principal amount
30.
Housing loan is amortized loan
31.
LRD is bullet payment loan
32.
The Balance sheet of SPV is different from the balance sheet of
the sponsors in Project finance
33.
If the availed fixed rate loan is prepaid by taking floating rate
loan from other bank, then, pre-payment penalty will be charged
34.
The income recognition norm for non-performing corporate loan
is same as non performing investment in corporate bonds

35.

The balance sheet value restructured corporate loan takes into

account the credit risk premium.

36.
The objective of System driven NPA is to check the ever
greening of the NPL
37.
Average CRAR is going up for last 3 years & average Coverage
Ratio is declining in the same period
38.
Fresh slippage Ratio indicates the default probability

Concepts to read (Snehils Mail)

Balance Sheet Items: Liabilities, Reserves, Capital, Assets, Loans Advances, provisions
Asset backed Securities
Mortgage Backed Securities
Types of NPA
Numericals :
NPA
NWA
CRAR
NDTL, CRR, SLR