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

FOURTH SEMESTER OF MBA MODEL ques. PAPER 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 do you arrive at Current ratio? ( three marks)
b)What is pre shipment finance? elaborate the pre-sanction and post-sanction
requirements of this credit facility to exporters? (7 marks)
c) discuss the prudential norms with regard to income recognition,
asset classification and provisioning for NPAs (10 marks)
2. a) What is debt equity ratio? How do you compute it? ( three marks)
b)How do you evaluate consumer loans? What is the difference ranging from
fixed and floating rate of interest ( seven marks)
c)What are the different kinds of agricultural loans? discuss the general
appraisal norms for agricultural loans ( 10 marks)
3.a) What is assignment? provide examples of loans where assignment as a ( three marks)
charge is created
b) discuss the different kinds of charging of securities. What is the difference
ranging from pledge and hypothecation? ( seven marks)
c) discuss the role and functions of EXIM Bank. elaborate its facilities offered (10 marks)
to exporters?
4. a) What is securitisation of debts? ( three marks)
b) elaborate the accounting ratios that banks follow for considering short term
and long term loans? ( seven marks)
c)What is working capital finance? elaborate the methods of assessment of
working capital finance? ( 10 marks)
5. a) What is a back to back letter of credit? ( three marks)
b) elaborate the post sanction follow up measures banks are expected to take
in respect of loans and advances sanctioned by them? ( seven marks)
c) discuss the concept of Lead Bank scheme in India? How does it help
overall banking development of a particular district? ( 10 marks)
6. a) What is the concept of Kisan Credit card? ( three marks)
b) What is pre sanction appraisal? How does a banker make an effective
pre sanction loan appraisal ( seven marks)
c) What is a cash flow statement? In what situation it is used? elaborate its
limitations? ( 10 marks)
7.a) How is capital Adequacy Ratio arrived at? ( three marks)
b) How does an effective Credit portfolio management take place? ( seven marks)
c) What is term lending? How do you appraise a term loan proposal of Small
scale and large scale industries? ( 10 marks)
8. Case study on Credit appraisal by using financial ratios ( Theory five marks, case 15 marks)

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