M.B.A. DEGREE EXAMINATION, APRIL 2017
Second Semester
PRACTICE OF COMMERCIAL BANKING
(2013 onwards)
Time 3 Hours Maximum 75 Marks
Part A x 3 15)
Answer all questions.
All questions carry equal marks.
1. Outline the functions of commercial banks.
2. What are EMIs?
3. What precautions should be taken by a banker while
opening account for administrators and executors?
4. What do you understand by bullion market?
5. Briefly explain the significance of 'mortgage' in banking.
Part B x 10 50)
Answer all questions, choosing either or
All questions carry equal marks.
6. Critically evaluate the nationalisation of banks in
India.
Or
Examine the reforms in the financial sector which
impacted banking industry in India.
Sub. Code
632203
RW-040
2
Wk 11
7. Describe the problems associated with retail lending
by banks. How do bankers overcome them?
Or
Discuss the significance of the services like RTGs
and NEFT in contemporary banking.
8. What are joint stock companies? What care is to be
taken while opening and conducting accounts in the
names of such companies by bankers?
Or
''Government securities are securities issued by a
Government to raise funds necessary to pay for
expenses/investments'' Elucidate.
9. Outline the procedures that banks follow for lending
against securities.
Or
How are the bank accounts of Hindu undivided
family managed? How do they differ with other
accounts?
10. ''Pledging is offering assets to a lender as collateral
for a Discuss.
Or
Do mortgages result in non-performing assets? How
are NPAs handled?
RW-040
3
Wk 11
Part C 10 10)
(Compulsory)
11. An open bearer cheque for Rs. 7,000 drawn by your
customer is presented for payment. The balance in his
account is Rs. 6,600. The presenter, while talking to the
ledger keeper, comes to know that the balance is short
and pays Rs. 500 by a pay in slip and informs the ledger
keeper about the credit and gets his cheque passed. The
drawer, when he comes to know of this, complained to the
manager and ask for a refund of the sum of Rs. 7,000.
How will you, as a banker deal with the situation?
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