Management of Financial Institutions — DU Bachelor of Business Administration (Financial Investment Analysis) Previous Year Question Papers

Namcôf the paper: Management of Financial Institutions Max Marks: 90 Answer any fve questions. Each question cary equal marks ic. 18 marks. Q1. A commercial bank has the following loan portfolio as on 31 March 2025 (F in crore): Period Overdue Category of Advances Outstanding Amount Term Loan - A 120 Not overdue Term Loan - B 80 Overdue for 4 months 60 Overdue for 14 months Term Loan - Term Loan - D 40 Overdue for 30 months Agricultural Loan - E 50 Interest overdue for 2 crop seasons Small Business Loan - F 30 Overdue for 20 months Loss Assets identified by auditors 20 - Additional Information: 1. Secured portion of Sub-standard and Doubtful assets is 60% of outstanding amount; the balance is unsecured. 2. Provisioning norms (as per RBI): Standard Assets: 0.40% Sub-standard Assets: 15% Doubtful Assets: Secured portion: More than 3 years: 100% Unsecured portion: 100% Loss Assets: 100% The bank's Profit before Provisions and Tax (PBP&T) for the year is R180 crore. Ignore tax for the purpose of this question. a) Classify the above advances into Standard, Sub-standard, Doubtful, and Loss assets. b) Calculate the Gross NPA and Net NPA of the bank. d) Determine the Net Profit after provisions c) Compute the total provisioning required as per RBI norms. Q2. A commercial bank operating in India has the following liabilities as on 31st March: Demand Deposits: 74,800 crore Time Deposits: 77,200 crore Other Demand and Time Liabilities (ODTL): R1,000 crore Borrowings from RBI: 7600 crore Inter-bank liabilities (net): 7400 crore As per RBI norms: Cash Reserve Ratio (CRR) = 4.5% Statutory Liquidity Ratio (SLR) = 18% Additional information: The bank currently holds: Cash balance with RBI: 7520 crore Eligible SLR securities (G-secs, T-bills, SDLs): 72,700 crore Based on the above information: 1. Calculate the Net Demand and Time Liabilities (NDTL). 2. Compute the minimum CRR requirement. 3. Compute the minimum SLR requirement. 5. If there is any shortfall or excess, quantify the same. 4. Comment on whether the bank is meeting the CRR and SLR requirements. distributed across different maturity buckets (R crore): Q3. A scheduled commercial bank has the following rate-sensitive assets (RSA) and rate-sensitive liabilities (RSL) Maturity Bucket Rate-Sensitive Assets (RSA) Rate-Sensitive Liabilities (RSL) 0-1 month 2,400 Additional information: The bank expects a parallel upward shift in interest rates by 1% (100 basis points). Assume that all assets and liabilities are repriced immediately at the end of their respective maturity buckets. You are required to: State Bank of India Balance Sheet as at 31 March 2024 Schedule No. (Current Year) (Previous Year) CAPITAL AND LABILITIES 892,46,12 892,46,12 Reserves & Surplus 378354,07,25 326715,98,77 Other Liabilities and Provisions 288809,73,42 272457,14,51 Cash and Balances with Reserve Bank of India 225141,69,61 | 247087,57,52 Balances with Banks and money at call and short notice Fixed Assets 10 42617,25,25 42381,80,31