Visvesvaraya Technological University (VTU) 2007 M.B.A STRATEGIC CREDIT MANAGEMENT (05 BI 477) MODEL I I - Question Paper

FOURTH SEMESTER OF MBA MODEL ques. PAPER I I
STRATEGIC CREDIT MANAGEMENT (05 MBA BI 477)
Time: three hours Max marks: 100
Note: 1. ans any 5 full ques. including ques. No eight which is
Compulsory
2. All main ques. carry 20 marks every
1.a) How is capital Adequacy Ratio arrived at? (3 marks)
b) discuss the different kinds of charging of securities. What is the difference?
ranging from pledge and hypothecation? (7 marks)
c) discuss the concept of Lead Bank scheme in India? How does it help
overall banking development of a particular district? (10 marks)
2.a) What is debt equity ratio? How do you compute it? (3 marks)
b) How does an effective Credit portfolio management take place? (7 marks)
c) elaborate the different kinds of agricultural loans? discuss the general
appraisal norms for agricultural loans (10 marks)
3a) What is assignment? provide examples of loans where assignment as a (3 marks)
charge is created
b) What is pre sanction appraisal? How does a banker make an effective (7 marks)
Pre sanction loan appraisal
c) What is term lending? How do you appraise a term loan proposal of Small
Scale and large scale industries? (10 marks)
4a) What is the concept of Kisan Credit card? (3 marks)
b) How do you evaluate consumer loans? What is the difference between?
fixed and floating rate of interest ( seven marks)
c) What is working capital finance? elaborate the methods of assessment of
Working capital finance? (10 marks)
5a) What is a back to back letter of credit? (3 marks)
b) What is pre shipment finance? elaborate the pre-sanction and post-sanction
Requirements of this credit facility to exporters? (7 marks)
c) What is a cash flow statement? In what situation it is used? elaborate its
Limitations? (10 marks)
6 a) What is securitization of debts? (3 marks)
b) elaborate the accounting ratios that banks follow for considering short term
and long term loans? (7 marks)
c) discuss the role and functions of EXIM Bank. elaborate its facilities (10 marks)
Offered by exporters?
7 a) How do you arrive at Current ratio? (3 marks)
b) elaborate the post sanction follow up measures banks are expected to take
in respect of loans and advances sanctioned by them? (7 marks)
c) discuss the prudential norms with regard to income recognition,
Asset classification and provisioning for NPAs (10 marks)
8. Case study on Charging of securities (Theory five marks, case 15)

Earning:   Approval pending.