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ASSIGNMENT
| DRIVE | WINTER 2015 |
| PROGRAM | MBADS (SEM 4/SEM 6)MBAFLEX/ MBA (SEM 4) |
| SUBJECT CODE & NAME | MA0043CORPORATE BANKING |
| BK ID | B1817 |
| 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 does a commercial bank assess the working need of their corporate clients? Explainthe RBI guidelines to finance working capital.
Answer:Working Capital is the capital required for by a firm to sustain its day to day activities. Different firms have different approaches to finance their working capital needs. After receiving proposals for working capital loans, as a precaution banks need to assess the amount of working capital loan which can be granted and also to determine the interest rate at which the loan can be provided. The RBI and its committees have introduced new methods for the calculation of credit eligibility for the working capital financing of firms. The newer methods are firmer on risk management front and also the stability of
Question.2. What are the different types of Letters of Credit?
Answer:A letter of credit generally has three participants. First, there is the beneficiary, the person or company who will be paid. Next, there is the buyer or applicant of the goods or services. This is the one who needs the letter of credit. Finally, there is the issuing bank, the institution issuing the letter of credit. In addition, the beneficiary may request payment to an advising bank, which is a bank where the beneficiary is a client, rather than directly to the beneficiary. This might be done, for example, if the advising bank financed the
Question.3. Describe the different types of post shipment finance offered on export credit scheme?
Answer:Post Shipment Finance is a kind of loan provided by a financial institution to an exporter or seller against a shipment that has already been made. This type of export finance is granted from the date of extending the credit after shipment of the goods to the realization date of the exporter proceeds. Exporters don’t wait for the importer to deposit the funds.
Types of Post Shipment Finance
Question.4. Illustrate the financial evaluation of lease finance.
Answer:Leasing is a contract between the owner(lesser) and the lessee for the hiring of a specific assets. Leasing can apply to any fixed assets and quite commonly used for plant and machinery, office equipment and motors vehicles. Instead of acquiring these assets for itself, the company enters into an agreement with a leasing company whereby the latter purchase the assets in question and then lease them ( rent or hire them) on a long-term basis to the former. No initial funds are required but there is instead a regular charge
Question.5. Differentiate between Factoring and Forfeiting.
Answer:Factoring and forfeiting are both mechanisms used in financing international trade transactions to secure receipts of unpaid invoices and receivables. In both, the risk of debt collection is passed down from the seller to a third party, and depending on whether the agreement is recourse or non-recourse the third party bears the risk of non-payment . The article offers a clear overview of these terms and explains the similarities and differences between factoring and forfeiting.
Factoring and forfeiting are very similar to each other and are services offered to sellers, especially exporters dealing in international trade
Question.6. Explain corporate debt re-structuring and revival package.
Answer:Corporate Debt Restructuring (“CDR”) mechanism is a voluntary non statutory mechanism under which financial institutions and banks come together to restructure the debt of companies facing financial difficulties due to internal or external factors, in order to provide timely support to such companies.The intention behind the mechanism is to revive such companies and also safeguard the interests of the lending institutions and
Dear students get fully solved SMU MBA assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601