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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
ASSIGNMENT
DRIVE WINTER 2014
PROGRAM MBADS (SEM 4/SEM 6)MBAFLEX/ MBA (SEM 4)
PGDBMN (SEM 2)
SUBJECT CODE & NAME MA0044 &INSTITUTIONAL BANKING
BK ID B1818
CREDITS 4
MARKS 60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Q.1. Institutional banking refers to meeting the financial needs of the institutional clients by
financial institutions, including commercial banks. Explain the challenges of institutional banking.
Answer:Institutional Bankingisaspecializeddivisionwithinabankthat offersacomprehensivesuite
of productsandservicesforlarge institutionsbothlocallyandabroad. In particular they can provide
complex financing and advisory functions for corporate and government clients who may require
tailored capital products. In addition they may also advise on surrounding debt, equity capital
markets, risk management and transactional banking.
Institutional banking usually incorporates services such as evaluating mergers & acquisitions,
investmentsanddivestments,managingtreasuries etc. Institutional banking helps clients to create
corporate strategies and develop opportunities for growth on a national and global level.
Institutional banking provides clients with
Q.2. Explain the role of Development Finance Institutions (DFIs) in infrastructure Development.
What is Risk mitigation? Write the simplification of procedures and removing red-tapism.
Answer:A DFI is defined as "an institution promoted or assisted by Government mainly to provide
development finance to one or more sectors or sub-sectors of the economy.” The institution
distinguishesitself by a judicious balance between commercial norms of operation, as adopted by
any private financial institution,anddevelopmental obligations.DFIs adopt the "project approach" -
emphasizing the viability of the project to be financed – against the "collateral approach". Apart
from provision of long-term loans, equity capital, guarantees and underwriting functions, a

2. developmentbank normally is also expected to upgrade the managerial and the other operational
pre-requisites of the assisted projects.
Thus, the basic emphasis of a DFI is on long-term finance for industrial and infrastructure projects
and on assistance foractivities or sectors of the economy where the risks are higher than what the
othertraditional financialinstitutionslike banksmay be willingtoassume.In fact, in the olden days,
banks were only meeting the short term working capital needs of trade and business and were
generally averse to lending for the long term.
Q.3. Explain the legal structure of Micro Finance in India (MFI). Explain the challenges faced by
MFI.
Answer:Microfinance isasource of financial servicesforentrepreneursandsmall businesses lacking
access to banking and related services. The two main mechanisms for the delivery of financial
services to such clients are:
(1) relationship-based banking for individual entrepreneurs and small businesses; and
(2) group-based models, where several entrepreneurs come together to apply for loans and other
services as a group.
In some regions, for example Southern Africa, microfinance is used to describe the supply of
financial servicestolow-income employees,whichis closer to the retail finance model prevalent in
mainstream banking.
For some, microfinance is a movement whose object
Q.4. Explain the major considerations in trade finance. Explain the methods of payment in
international trade. Write the services available for exporters.
Answer:Trade Finance isa specifictopicwithinthe financial servicesindustry.It'smuchdifferent,for
example, than commercial lending, mortgage lending or insurance. A product is sold and shipped
overseas,therefore,ittakeslongerto get paid. Extra time and energy is required to make sure that
buyersare reliable andcreditworthy.Also,foreignbuyers - justlike domesticbuyers - prefertodelay
paymentuntil theyreceiveandresellthe goods.Due diligenceandcareful financialmanagementcan
mean the difference between profit and loss on each transaction.
The following factors and considerations apply to financing in general.
Financing can make the sale: Favorable payment terms make a product more competitive. If the
competition offers better terms and has a similar product, a sale can be lost.In other cases, the
exporter may need financing to produce the goods or to finance other aspects of a sale, such as
promotion and selling costs, engineering
Q.5. Write brief introduction of International Development Association (IDA). Explain the
operations of IDA and financial support to India by IDA.

3. Answer:The International Development Association (IDA) is an international financial institution
whichoffersconcessional loansandgrantsto the world'spoorestdeveloping countries. The IDA is a
member of the World Bank Group and is headquartered in Washington, D.C., United States. It was
established in 1960 to complement the existing International Bank for Reconstruction and
Development by lending to developing countries which suffer from the lowest gross national
income, from troubled creditworthiness, or from the lowest per capita income. Together, the
International DevelopmentAssociationandInternational BankforReconstructionandDevelopment
are collectively generally known as the World Bank, as they follow the same executive leadership
and operate with the same staff.
Q.6. Explainthe role of technology in Institutional Banking. Write the advantages of technology in
Institutional Banking.
Answer:The InvestmentBankingdivisionisasectorthat workson bringingtogetherthe advisoryand
financing, equity securities, asset management, treasury and capital markets, and private equity
activities of any group to complete the CIBM structure, while also providing a complete list of
financial productstothe clientstheyserve.There are increasingnumberof bankingandinstitutional
servicesthatare beingconsideredbyseveralcustomersastheyworkclosely with different projects
such as finance exporting, both onshore and offshore, to provide structured solutions.
The clients are well serviced by dedicated client servicing teams, which combine relationship
managers, product specialists, and industry specialists to develop customized financial solutions.
These small groups, in turn, form the
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )