NMIMS
Global Access
School
for Continuing Education (NGA-SCE)
Course: Business Economics
Internal
Assignment Applicable for December 2019
Examination
1. Calculate the following: (10 Marks)
|
Quantity
|
Total Fixed
|
Total Variable
|
Total
|
Average
|
Marginal
|
|
Cost
|
Cost
|
Cost
|
Cost
|
Cost
|
|
25
|
10
|
18
|
?
|
?
|
?
|
|
26
|
10
|
20
|
?
|
?
|
?
|
|
27
|
10
|
21
|
?
|
?
|
?
|
2. “Determinant of demand are
the important factor which influences the decision of the
consumers to purchase
commodity or a service”
With respect to the above
statement discuss any 5 determinants of the individual demand.
(10 Marks)
3 a. Suppose the monthly
income of an individual increases from Rs. 10,000 to Rs. 15,000
which increases his demand
for clothes from 20 units to 25 units. Calculate the income
elasticity of demand and
interpret the result. (5 Marks)
b. Quantity demanded for
tea has increased from 100 to 160 units with an increase in the price
of the coffee powder from
Rs. 40 to Rs. 50. Calculate the cross elasticity of demand between
tea and coffee and explain
the relationship between the goods. (5 Marks)
**********
NMIMS Global Access
School for Continuing Education
(NGA-SCE)
Course: Financial Accounting and Analysis
Internal Assignment Applicable for December 2019 Examination
Assignment Marks: 30
1. Wildcat Ltd, a
manufacturing company sold a machinery for Rs 8 lacs at the year end.
The company had purchased the machinery four years back for Rs 15 lacs and had
depreciated the same using written down value method of depreciation @ 20%.
As an accounts executive of Wildcat Ltd, calculate the WDV of the asset for the
four
years, accumulated depreciation for four years and profit/loss on sale, if any.
(10
Marks)
2. Mr. Shil Wants to record the financial
transactions of his newly started business.
Discuss what accounting steps/stages he need to adhere so that the transactions
can be duly
recorded and processed in order to prepare the financial statements. (10 Marks).
3 a. Following
information is available in respect of a company named, as Beta Ltd
|
Particulars
|
Amount
|
|
Profit before taxes
|
Rs 50 lakhs
|
|
Dividend declared per
share
|
Rs2
|
|
Price of the share
prevalent on stock
exchange
|
Rs 200
|
|
Applicable tax rate
|
35%
|
|
Share capital of
company 5 lakh shares
of Rs 10 each
|
|
Calculate-
· Earnings per share
· Dividend Pay-out Ratio
· Price earnings ratio
(5
Marks)
b. Prepare the cash flow
statement from investing activities of Alpha Creative Ltd for the
year ended March31, 2019
|
Particulars
|
Amount
|
|
Plant acquired
|
160000
|
|
Claim received for
loss of plant in fire
|
45500
|
|
Unsecured loans given
to subsidiaries
|
595000
|
|
Interest on loan
received from subsidiary companies
|
72500
|
· Also
give reasons for the classification of above activities as inflow /outflow (5
Marks)
**********
NMIMS Global Access
School for Continuing Education
(NGA-SCE)
Course: Information Systems for Managers
Internal Assignment Applicable for December 2019 Examination
Assignment Marks: 30
1.
The
healthcare space inundated with the presence of 4, 00,000 apps approximately
which
are
involved in monitoring and improving user’s health. These apps monitor user’s
health
data like calorie intake, physical activity,
heart rate, blood pressure, sleep patterns and
various other parameters. With the help of these self-monitoring
apps users get more
personalized information and are capable of transforming how
healthcare will be delivered
to them. Healthcare industry is embracing analytics to improve
disease prevention, increase
the accuracy of diagnoses, provide safe medications, and make
treatments more
effective. Give examples how different stakeholders in the
healthcare industry use analytics
(Healthcare professionals, healthcare providers, pharmaceutical
companies and
government). (10 Marks)
2. Fresh milk startup
Country Delight has raised $7-10 million in a Series B funding
round led by venture capital firm Matrix Partners. The company
claims to source milk
directly from the farm, eliminating the middle men and allowing
farmers to earn a premium.
It also invests in cold chain and quality testing infrastructure
at the farmer’s location. The
company offers other milk-based products including paneer, curd
and ghee through its
mobile app. How do you think technology can help this startup in
improving the dairy supply
chain from process management to tracking products and deliveries?
(10 Marks)
(Source: https://www.livemint.com/companies/start-ups/country-delight-raises-funding-inround-led-by-matrix-partners-1548182312046.html)
3. The northern Spanish city of Santander has
become the testing ground for "smart cities"
around the world. Smart Santander is a smart city experiment
aimed at improving the quality
of life, reducing energy consumption and engaging its citizens
in civic duties. The city
implemented wireless sensor networks and embedded 10,000 sensors
on its streets and
municipal vehicles to monitor garbage collections, crime air
quality and manage street
lighting for better energy efficiency. The Santander Smart City
platform allows to integrate
all the information of the different municipal services and thousands
of sensors deployed by
the city. The latter devices collect multiple data: from air
quality, noise or temperature to
which parking lots are free or occupied on different streets or
when it is necessary to water
a particular park or garden. For example, buses have sensors at
the top that allow to know
the level of pollution in different areas of the city. They have
also been installed on street
lamps and walls inside small white boxes in order to measure
noise, temperature or
brightness. Multiple devices installed on the ground monitor how
many cars are parked in
certain streets while different information panels indicate the
free places in a given area to
park the car. Even paper containers and containers have
volumetric measurement sensors
that indicate how full they are. This information is especially
valuable when planning
collection routes, which may vary according to needs. As garbage
trucks are also intelligent,
it is possible to monitor their travel and activity.
Source: (https://elpais.com/tecnologia/2019/07/17/actualidad/1563371290_289881.html)
a. What are the benefits of a smart city? Considering the dark
side of smart city are you
sceptical to the benefits of a smart city. (5 Marks)
b. What are the potential cybersecurity challenges faced in a
smart city with data being
collected in this way? (5 Marks)
**********
NMIMS
Global Access
School
for Continuing Education (NGA-SCE)
Course: Management Theory and Practice
Internal
Assignment Applicable for December 2019 Examination
Assignment Marks: 30
1. M/s Paper Write
Corporation deals with the manufacturing and selling of paper bags.
The company has started
this business looking at the opportunity that exists, after plastic
was banned by the
government in some states. The company has never used any modern
day management practices
and the business continues to function in the traditional way.
Mr. Ajay has been appointed
as a Manager to handle the overall functioning of the
business. He notices few
things in the company:
a) One person reporting to
three bosses
b) No specialized worker in
the factory
c) Long hierarchy to get
any approval
d) No following of rules
and regulations
e) No designated place for
inventory, tools, equipment’s, etc.
f) The team work among
employees is missing.
Advise Mr. Ajay any five of
Henry Fayol’s principles which can solve the problems
mentioned above. Explain
the same with description. (10
Marks)
2. M/s Paper Write Corporation
problems don’t seem to end. The company doesn’t use modern
day technology in the
departments. Some observations made by Ajay are:
a) The company uses
register for employee attendance.
b) The company has a manual
process of writing entry in the books of accounts.
c) The leaves are applied
on paper which has a lengthy process of approval.
d) All the orders are sent
through hard copies to the suppliers.
e) The inventory management
is not practiced effectively due to the lack of usage of
technology.
Advise any 5 modern day
technologies which will make the system more productive and
effective. Explain the same
with description. (10
Marks)
3.a. There is no motivation
among employees and workers in the organization. How will you
motivate the employees and
workers of M/s Paper Write Corporation? (5 Marks)
3.b. Explain the style of
leadership that will be suitable for M/s Paper Write Corporation.
Elaborate on the choice of
leadership selected. (5 Marks)
**********
NMIMS Global Access
School for Continuing Education
(NGA-SCE)
Course: Marketing Management
Internal Assignment Applicable for December 2019 Examination
Assignment Marks: 30
“Balwaan
Gyms and Akhadas” is a new enterprise started by two young fitness freak
entrepreneurs
Mr. Balraj and Mr. Balbuddhi. Balwaan Gyms and Akhadas is a chain of gyms
with
a vision to make everyone healthy. The company has already opened 15 Gyms and
Akhadas
across five cities namely Mumbai, Bangalore, Pune, Delhi and Kolkata.
The gym has all modern facilities and amenities
like 24*7 security, convenient parking, flexi
hours, group Classes on fitness, Personal Training, Private restrooms
for males and females.
The most unique thing about Balwaan is that it also has all Indian
style akhadas where
traditional body building is taught. Balwaan’s every store has a
healthy café where they serve
traditional healthy food and drinks at extra cost.
The membership fees for the same is 24,000 per annum without a
personal trainer.
The company has been relying only on word of mouth for yearly
memberships. The company
has not undertaken any marketing promotion campaigns for the same.
The company is falling
short of its expectation when it comes to membership and revenues.
Assume the company has hired you as a Marketing consultant and
they want you to advise
them on the following issues:
1. List and discuss the major bases for segmentation of consumer markets.
Explain the four
variables in detail for Balwaan. (10 Marks)
2. How will you promote the Brand Balwaan Gyms and Akhadas online?
Explain five
platforms that you will use to promote the same. (10 Marks)
3.a. Explain various levels of product with reference to Balwaan
Gyms and Akhadas.
(5 Marks)
3.b. Which celebrity will you select as a brand ambassador for the
Balwaan Gyms and
Akhadas? Explain the choice of your celebrity with five reasons. (5
Marks)
**********
NMIMS Global Access
School for Continuing Education
(NGA-SCE)
Course: Organisational Behaviour
Internal Assignment Applicable for December 2019 Examination
Assignment Marks: 30
1.
Arjan is an employee who is never on time for work or meetings. He has been
issued
several
warning memos but in vain. The management is not able to take stringent action
against
him as he is very good at his work and is one of the top performers. As his
reporting
authority
you still feel that he should respect time and be disciplined. From the
different
elements
of reinforcement which one should his manager choose to get the desired
behaviour?
Conclude by giving why it (the one which you chose) is the best suited.
(10Marks)
2.
Choose
one Asian and one European country. Compare and contrast communication in
their
cultures. (10 Marks)
3.
Krabi
Textile is going online from retail mode as the management feels that it is the
need
of
the hour to be present in the digital space. People are resisting this change
and you are the
one
chosen as the leader by the management to lead in this tough time.
a.
What all people skills would be required by a leader to be effective in such
times?
(5
Marks)
b.
How would you differentiate between being a manager and leader? (5 Marks)
**********
NMIMS
Global Access
School
for Continuing Education (NGA-SCE)
Course: Business Law
Internal
Assignment Applicable for December 2019 Examination
Assignment Marks: 30
1. Explain the mechanism
of a Digital Signatures which is recognized under the
Information Technology
Act, 2000 and state at least two (2) of its applications
(10 Marks)
2. Explain in details two (2) real-life instances of
Anti-Competitive Agreements which
have been prohibited by
the Competition Commission of India. (10 Marks)
3. Abhay and Seema have
entered into a commercial agreement to license content.
However, Abhay did not
deliver the content to the satisfaction of Seema. Hence,
there are disputes arisen
between Abhay and Seema. Abhay and Seema do not want
to go through a
protracted litigation process in Indian courts. Can you advise them
on:
a. What should be done to
conduct an arbitration between Abhay and Seema to
resolve their disputes (5 Marks)
b. The difference between
Arbitration, Conciliation and Mediation? What is the
advantages and
disadvantages of each of these (5 Marks)
**********
NMIMS Global Access
School for Continuing Education
(NGA-SCE)
Course: Business Statistics
Internal Assignment Applicable for December 2019
Examination
Assignment Marks: 30
fixed acidity
volatile acidity citric acid residual sugar chlorides
1. For the data on 26
red wines given above, conduct the following analysis:
i. Provide five-number summary i.e. the minimum, 1st quartile, median, 3rd quartile and
maximum value for fixed acidity. Arrange them in increasing order on a straight
line, draw
a box plot and interpret what it means.
ii. Calculate the correlation coefficient between
fixed acidity and volatile acidity and
between residual sugar and chlorides. Comment on the strength and direction of
association for the two variable pairs.
iii. What can be stated about the cause-effect relationship between fixed
acidity and
volatile acidity, based on the correlation coefficient score?
(10 Marks)
2. For the data in the
table below:
i. What do high kurtosis and skewness figures denote?
ii. Free Sulphur dioxide and total Sulphur dioxide have mean, median and modes
that
differ substantially from each other. What can you infer from this?
iii. By looking at the descriptive stats of the variables, identify two that
may be closest to
being normally distributed. Why?
Desc Stats fixed
acidity volatile acidity citric acid residual sugar chlorides free sulfur dioxide
total sulfur dioxide density pH sulphates alcohol
Mean 6.85 0.28 0.33
6.39 0.05 35.31 138.36 0.99 3.19 0.49 10.51
Med 6.80 0.26 0.32
5.20 0.04 34.00 134.00 0.99 3.18 0.47 10.40
Mod 6.80 0.28 0.30
1.20 0.04 29.00 111.00 0.99 3.14 0.50 9.40
SD 0.84 0.10 0.12
5.07 0.02 17.01 42.50 0.00 0.15 0.11 1.23
Kurt 2.17 5.09 6.17
3.47 37.56 11.47 0.57 9.79 0.53 1.59 -0.70
Skew 0.65 1.58 1.28
1.08 5.02 1.41 0.39 0.98 0.46 0.98 0.49
Range 10.40 1.02
1.66 65.20 0.34 287.00 431.00 0.05 1.10 0.86 6.20
(10Marks)
3. Lok Sabha in India is
to discuss a key constitutional amendment, and there will be four
rounds of voting. In each round of voting, assume that the ruling party has a
60% chance
of winning, i.e. getting the resolution passed by majority vote. Further
assuming that the
voting rounds are independent of each other, what is the probability that:
a. The ruling party will win 0 rounds, 1 round, 2 rounds, 3 rounds or all 4
rounds of
voting? (5 Marks)
b.The ruling party will
win at least 1 round? (5 Marks)
**********
NMIMS Global Access
School for Continuing Education
(NGA-SCE)
Course: Essentials of HRM
Internal Assignment Applicable for December 2019 Examination
Assignment Marks: 30
1.
Kanye Apparels Pvt. Limited is a home grown brand. It has come long way from
being
a
family business to a mid-sized organisation. Traditionally they always believed
in
appraising
employees through checklist method. Recently many employees have come
out
being very vocal about their displeasure on the traditional way of appraisal
and feel
it
is an unjust way of assessing them. You have been hired as a consultant to
propose a
new
appraisal system. Also, conclude by justifying your selection for the choice of
appraisal
method. (10 Marks)
2.
Alaya infrastructure is a small sized organisation having 150 employees. The
organisation
never had a formal induction training. You are their first ever HR Manager
and
you strongly feel the need to have induction training. You are asked to present
the
concept
and need for induction training to senior management. Conclude by
emphasizing
on the importance/advantages of induction training.
(10
Marks)
3.
A web content creation organization name Natika which is into humor based
content is
expanding
and wants to hire a social media intern. Advertisement has to be placed for
the
vacancy. Based on this
a.
Write a job description for social media intern for the above organisation. (5
Marks)
b.
Write job specification for the above profile. (5 Marks)
**********
NMIMS Global Access
School for Continuing Education
(NGA-SCE)
Course: Strategic Management
Internal Assignment Applicable for December 2019 Examination
Assignment Marks: 30
1.
You have been appointed as a Strategy Consultant to a Swiss shoe making
brand namely
“Bally”
wanting to enter India. Which one of Porter’s Generic Strategies would you
choose
to
be operational in India & explain the reasons in detail behind your choice
of strategy?
Once
the strategy has been chosen, explain the categories of customers you would
target?
(10
Marks)
2.
UNIQLO is a Japanese casual wear designer, manufacturer and retailer that
wishes to
enter
India’s Retail market. Conduct a PESTLE analysis for Uniqlo in India &
suggest
whether
Uniqlo should enter India or otherwise. (10 Marks)
3.
You are the Chairman of Isuzu Motors in Japan. Your Indian subsidiary Isuzu
India has
managed
to gain only under 2% of the market share so far & Competitor brands such
as
Maruti
& Hyundai account for 50% & 17% of the market shares respectively.
a.
What turnaround strategies can you suggest to arrest the decline of revenues
&
profitability
of your company? (5 Marks)
b.
In your opinion, would it be considered appropriate to pursue a Combination
Strategy?
State
your response with appropriate justifications & reasons. (5 Marks)
**********
NMIMS Global Access
School for Continuing Education
(NGA-SCE)
Course: Business Ethics, Governance & Risk
Internal Assignment Applicable for December 2019 Examination
Assignment Marks: 30
1. India's water crisis is often attributed to
lack of government planning, increased corporate
privatization, industrial and human waste and government corruption. In
addition, water scarcity in India is expected to worsen as the overall
population is expected
to increase to 1.6
billion by year 2050. Can you recommend two policy changes with details
of how this will address the water crisis issue for increasing population of
India in an ethical
manner. (Your answer must have logical points that make sense. Do online
research to find
solution to the water problem) (10 Marks)
2. Protecting data
privacy is urgent and complex. This protection is necessary because of
the all-pervasive, technology-driven and information-intensive environment,
typical of
today’s corporations. Multiple risks involved in data management is propelling
information/data protection to the top of the corporate management agenda. What
according
to you are the two ethical risks faced by the business in relation to data
protection and can you choose and explain any two Data Protection Principles
applicable to
businesses in India? (10 Marks)
3. In Chandrapur, renamed the coal city, Western
Coalfield Ltd’s (WCL), a public sector
coal mining company’s, overburden dumps are located very close to the river
beds. The
Mana and Lalpeth mines, especially, have dumped so much over-burden in the Irai
river that
the river-bed has risen by several meters. Coal mining so close to rivers may
also cause
damage to the mines themselves. During heavy rains river water enters the mines
even now,
making coal extraction very difficult. The move to allow coal mining activities
up to 250
meter from river banks has angered environment groups, especially in Vidarbha,
an
area currently reeling under floods, and where major rivers like Wardha and
Irai are already
heavily polluted because of coal mining. If the mines are moved closer, such
incidents will
rise, posing danger to mine workers. WCL will also incur losses. Mining has
also adversely
impacted river fauna. The forest land is turning into a desert and the wild
life, specially tigers
are disappearing. Somehow we have failed to intelligently sustain and manage
the resources
of nature, the primary source of all supply chain.
a. Do you think
environmental sustainability is an ethical principle? Elaborate on any two
issues/principles involved in environmental ethics. (5 Marks)
b. How can business
embed environment protection/sustainability within overall business
strategy? Elaborate on any two critical ideas/processes/steps. (5 Marks)
**********
NMIMS Global Access
School for Continuing Education
(NGA-SCE)
Course: Financial Institutions and Markets
Internal Assignment Applicable for December 2019 Examination
Assignment Marks: 30
1.
You are appointed as a Senior financial research analyst in a reputed firm.
Your manager
asks
you to advise him on the different ways to test market efficiency. Discuss the
ways for
testing
market efficiency which will help the firm’s investment to earn excess returns.
(10
Marks)
2.
Mr. Prakash wants to start up his venture. He has no idea about the investment
stages which
forms
the building block for the start-up business and therefore, seeks help from his
financial
advisor
Mr. Sharma. Discuss the three stages of venture capital financing to Mr.
Prakash
(10
Marks)
3.
Ms. Sunita, after completing her graduation, has recently joined a bank. With a
steady
income
now and good growth prospects for her career, she intends to save regularly and
increase
the amount of savings gradually over the years. Her colleagues in the bank have
advised
her investing in Mutual Funds (MFs), as a suitable option for her. However, Ms.
Sunita
is
not at all familiar with MFs and has some queries such as:
a.
What are mutual funds and why should she be investing through mutual fund? (5
Marks)
|
b. What are the various types of mutual funds?
Prepare a detailed answer for her queries.
|
(5 Marks)
|
NMIMS Global Access
School for Continuing Education
(NGA-SCE)
Course: Insurance & Risk Management
Internal Assignment Applicable for December 2019
Examination
Assignment Marks: 30
1.Mr. Rohan is appointed
as the risk manager in a reputed insurance firm. Discuss the strategy
on
how he could mitigate risk using different technique of risk management. (10
Marks)
2.
Sheetal and her husband are working in a reputed multinational company. They
both are well
settled
and are maintaining a decent lifestyle. Since they are working for the private
company,
their
parents asked them to buy a retirement plan which can compensate their
lifestyle even
after
their retirement. Assume yourself to be sheetal’s insurance advisor. Discuss
the three
broad
steps which you will consider for managing their retirement Plan. (10 Marks)
3.
Which method of premium calculation would be used in each of the below cases:
a.
Same rate of premium is charged from individuals under the same situation (5
Marks)
b.
Method frequently used by commercial fire insurance companies (5 Marks)
**********
NMIMS Global Access
School for Continuing Education
(NGA-SCE)
Course: International Banking and Foreign Exchange Management
Internal Assignment Applicable for December 2019 Examination
Assignment Marks: 30
1.
A dealer has the following position in GBP against INR:
Spot
– GBP 20 million Long
Three
months forward – GBP 20 million short
The
spot was executed at an average rate of 100.50 and the forward rate was
100.75.
The
dealer now wants to close his position. If the prevailing swap quotes are as
follows,
what is the profit/loss in squaring off his position?
GBP/INR
Spot: 100.6510/100.6530
3-month
Swap: 9135/9170 (10 Marks)
2.
Mr. Mehta was a businessman and was planning to expand his operations to other
countries
as well but he was not very sure about the forex market and also how his
business
would get affected by various factors. He decided to meet a bank manager
who
can help him understand these factors. If you are the manager help him
understand
the various factors that would cause the fluctuation in the exchange rate
which
may affect his business as well. (10 Marks)
3.
Neha has completed her MBA and has joined the Treasury department of a bank.
During
training her manager explained her that any open currency position may
give
rise to exchange rate risks. If the dealer leaves this position unhedged, he
carries
the risk that the exchange rate might turn adverse the next day. He wanted
her
to prepare report on:
a)
Position limits on a currency that a dealer can carry during regular trading
hours.
(5
Marks)
b)
Position limits on a currency that a dealer can carry over to the next day up
to this
limit.
(5 Marks)
**********
NMIMS Global Access
School for Continuing Education
(NGA-SCE)
Course: Treasury Management in Banking
Internal Assignment Applicable for December 2019 Examination
Assignment Marks: 30
1.
Explain the process (in terms of Risk/ Returns/ Ratings etc.) to select bonds
in both Rising
and
declining interest rates scenarios. Select one bond each from the below bonds
with long
term
and short term maturities (eg 10 years as long term bond and 1-3 years as short
term
bond)
and evaluate their risk/ return parameters such as Maturity, YTM etc.
Suggest
which of these will outperform/ underperform in current interest rate
scenarios.
(Assume
interest are being paid annually)
|
Symbol
|
Coupon
Rate
|
YTM
|
Face
Value
|
Last Traded
Price
|
Maturity
Date
|
|
NHAI
|
8.3
|
5.6384
|
1,000
|
1,235.00
|
25-Jan-27
|
|
NHAI
|
8.2
|
5.6276
|
1,000
|
1,133.00
|
25-Jan-22
|
|
SBIN
|
9.95
|
7.886
|
10,000
|
11,445.00
|
16-Mar-26
|
|
IRFC
|
8
|
5.1262
|
1,000
|
1,137.00
|
23-Feb-22
|
|
IIHFL
|
12
|
14.6823
|
1,000
|
992.5
|
2-Apr-20
|
|
IIFCL
|
8.66
|
6.034
|
1,000
|
1,152.11
|
22-Jan-24
|
|
HUDCO
|
7.64
|
5.9595
|
1,000
|
1,180.00
|
8-Feb-31
|
|
IIFCL
|
8.91
|
5.8239
|
1,000
|
1,350.00
|
22-Jan-34
|
|
M&MFIN
|
9
|
9.0053
|
1,000
|
1,022.01
|
6-Jun-26
|
(10
Marks)
2.
Explain ALM process in banks. Discuss the impacts of Positive and Negative Gaps
on the
profitability
of a bank in different interest rates scenarios. You are required to analyze
the
above
impact with the help of following balance sheet excerpts of a bank:
TABLE
GIVEN BELOW
|
Balance Sheet for Hypothetical Bank
|
|
|
Particulars
|
Assets
|
Yield
|
Liabilities
|
Cost
|
|
Rate sensitive
|
500
|
8.00%
|
600
|
4.00%
|
|
Fixed rate
|
350
|
11.00%
|
220
|
6.00%
|
|
Non-earning
|
150
|
100
|
|
|
|
Equity
|
80
|
|
|
|
|
1000
|
1000
|
|
|
|
Scenarios
for Impact analysis:
1.Interest
rates increased by 1%
2.Interest
rates decreased by 1%
(10
Marks)
3.
Case Study:
While
current accounts and savings accounts have different objectives, the banks
stand to
benefit
from the low cost of servicing these deposits. In the current scenarios it has
been
observed
that private banks such as HDFC bank, Kotak bank etc. are able to raise higher
saving
account / current account deposits compared to their PSU counterparts. Also the
other
income
is now becoming more significant as a % share of total income of private sector
banks
compared to PSUs.
In
relation to above scenarios, analyze the following (With examples):
a.
Why PSU banks are not able to raise money from low cost saving and current
account
deposits
ratios? What impact would it have on their profitability? (5 Marks)
b.
What are the reasons behind increase in share of other income in total income
for private
sector
banks as compared to PSU banks. (5 Marks)
**********
