NMIMS Semester 3 April 2025 Banking & Finance Assignment
Marketing of Financial Services
Q1. How does the strategic allocation of assets contribute to the overall effectiveness of Financial Planning, and what are the key considerations and benefits that individuals or organizations should keep in mind when implementing an asset allocation strategy? How come this Asset Allocation Strategy involves understanding the importance of diversification, risk management, and aligning asset with long-term financial goals? Explain the pedagogics from Financial Planner Perspective.
Q2. How do Indian commercial banks employ innovative marketing strategies to promote their financial services, and what impact does this have on consumer behavior and the broader banking industry? This includes understanding the role of digital marketing, customer segmentation, and product differentiation in enhancing the visibility and adoption of financial products. How these marketing efforts shape industry trends and consumer preferences. Ultimately, explain the paradigm highlights the critical role of marketing in the success of commercial banks in India.
Q3A. In what ways is the Indian government enhancing community welfare through the marketing of financial services at post offices and other public venues, and how does this initiative impact the broader financial inclusion landscape? This involves examining the role of government-sponsored programs and initiatives in promoting financial literacy and access to banking services.
Q3B. How the Digital Marketing plays an influential Role in Customer Relationship Management? Elaborate any 4 to 5 Distinct features of CRM Digital Marketing Cruciality / Importance for Banks & Other Institutions Financial Services Marketing.
Retail banking
Q1. The Retail Banking segment has become extremely competitive and hence it has become challenging for Retail banks to setup strategies to establish their presence, and grow in the market by reaching to as many customers as possible. Discuss the various Corporate level marketing strategies deployed for the same. Also discuss the need and relevance of distribution management
Q2. The banking transactions has seen a drastic shift in the payment mechanism especially post covid. Discuss the relevance of a payment system in the context of the retail banking scenario by enlisting the various payment systems. Explain any three such payment systems in detail.
Q3. Retail banks have faced a long-standing challenge in the form of repayment defaults which may convert to non-performing assets (NPAs) in many cases. Thus banks need to critically evaluate their lending process. Discuss the following aspect of Credit provision in Retail banking
a. Discuss the basic lending principles followed by retail banks.
b. Discuss the components of the credit score and the importance of the CIBIL score.
Cost & Management Accounting
Q1. The stock in hand of material as on 1st September was 500 units at Rs. 10 per unit. The following purchases and issues were subsequently made. Prepare the Stores Ledger Account showing how the value of the issues would be recorded under FIFO method.
Purchases
6th Sept. 100 units at Rs. 11
20th Sept. 700 units at Rs. 12
27th Sept. 400 units at Rs. 13
13th Oct. 1,000 units at Rs. 14
20th Oct. 500 units at Rs. 15
17th Nov. 400 units at Rs. 16
Issues
9th Sept. 500 units
22nd Sept. 500 units
30th Sept. 500 units
15th Oct. 500 units
22nd Oct. 500 units
11th Nov. 500 units
Q2. Discuss the role of management accounting in shaping strategic decisions within an organization. Provide examples of how management accounting practices can influence long-term planning and sustainability.
Q3 (a) Calculate Break-Even Point from the following particulars. Fixed Cost Rs.1,50,000
Variable cost per unit Rs.10
Selling price per unit Rs.15
Q3 (b) Analyze the differences between standard costing and budgetary control. How do these tools help in managing operational performance within an organization?
Commercial Banking System & Role of RBI
1. Capital formation is important for economic growth of any country. It helps in making a particular country self-sufficient in such a way that it does not have to be dependent on other nations for foreign investments. Explain the different factors affecting capital formation.
2. Commercial banks are life-line of any economy. They play a very important role in development of trade & commerce in the country. Describe different functions of Commercial banks and do SWOT analysis of Commercial Banks.
3. One of the critical source of income of commercial banks is interest income which bank earns from interest on loans and advances to the customer. Advances may be classified as fund based and non-fund based. In today’s scenario of increasing Non Performing Assets (NPA) of the bank, banks are focusing more on non-fund based loans.
a) Discuss any three fund based loans and its advantages.
b) Discuss any three non-fund based loans and its advantages.
Corporate Finance
1. Mr. Joshi is the Finance Manager at M/s Vriddhi Impex. The Company is looking at lateral growth and diversification into garment making from cloth making. For doing this, there needs to be put up a factory with all the latest machinery for cutting and stitching garments. The cost of acquisition of land, setting up the factory and buying the machinery works out to Rs. 100 lacs. It is estimated that the project will start generating revenue immediately from year 1. The Net revenue (after tax) for the next 5 years is Rs. 20 lacs, 30 lacs, 35 lacs, 45 lacs, 48 lacs.
A new loan is available to Vridhi Impex at 9% p.a. interest rate (net of tax). Mr. Joshi has another proposal which gives him a return of 12% p.a. and hence he does not want to invest below this rate. Assist Mr. Joshi to evaluate the project proposal using NPV and IRR. (Show all calculations for comparing it with the alternative proposal also). Should he go ahead with the project proposal?
2. Parag is evaluating 3 options for investment of his surplus money of Rs. 15,00,000/- for a period of 5 years.
i. Invest it in a Debenture which gives him a return of 12% compounded quarterly.
ii. Invest in a Corporate Deposit at a rate of 9% compounded bi-annually.
iii. Invest it in a Business Proposal which gives him the following returns.
Considering the risk involved, the discounting factor is considered @ 11%.
Year CF
1 250,000
2 350,000
3 575,000
4 525,000
5 645,000
As his finance advisor which option would you suggest him. Provide reasons.
3. a) In the following Balance sheet, calculate the Current Ratio and the Acid Test Ratio for both years Mar 2024 and Mar 2023. What do they indicate about the company’s financial position and the movement over the years?
Tata Motors
Standalone Balance Sheet
——————- in Rs. Cr. —————–
Mar 24 Mar. 23
EQUITIES AND LIABILITIES
SHAREHOLDER’S FUNDS
Equity Share Capital 766.50 766.02
Total Share Capital 766.50 766.02
Reserves and Surplus 29,374.83 21,701.37
Total Reserves and Surplus 29,374.83 21,701.37
Money Received Against Share Warrants – –
Total Shareholders Funds 30,141.33 22,467.39
1.72 2.46
NON-CURRENT LIABILITIES
Long Term Borrowings 5,235.67 10,445.70
Deferred Tax Liabilities [Net] 49.78 51.16
Other Long Term Liabilities 1,392.16 1,411.78
Long Term Provisions 1,936.92 1,588.75
Total Non-Current Liabilities 8,614.53 13,497.39
CURRENT LIABILITIES
Short Term Borrowings 8,535.37 8,426.74
Trade Payables 8,826.46 7,162.60
Other Current Liabilities 8,830.41 9,805.30
Short Term Provisions 1,133.92 408.89
Total Current Liabilities 27,326.16 25,803.53
Total Capital And Liabilities 66,083.74 61,770.77
ASSETS
NON-CURRENT ASSETS
Tangible Assets 11,990.26 12,129.14
Intangible Assets 2,353.79 2,413.18
Capital Work-In-Progress 645.03 575.65
Intangible Assets Under Development 588.92 509.30
Fixed Assets 15,578.00 15,627.27
Non-Current Investments 30,315.57 29,181.62
Deferred Tax Assets [Net] 1,558.65 1,477.26
Long Term Loans And Advances 101.89 114.40
Other Non-Current Assets 3,321.96 3,870.27
Total Non-Current Assets 50,876.07 50,270.82
CURRENT ASSETS
Current Investments 1,993.50 3,142.96
Inventories 3,470.38 3,027.90
Trade Receivables 2,765.16 2,307.72
Cash And Cash Equivalents 5,150.96 1,414.65
Short Term Loans and Advances 132.19 132.29
Other Current Assets 1,695.48 1,474.43
Total Current Assets 15,207.67 11,499.95
Total Assets 66,083.74 61,770.77
b) Monica has a debenture of Face value Rs. 100/- @ 8.5%. Calculate its current yield if:
i) Market Price is Rs. 98.90
ii) Market Price is Rs. 95.20
iii) Market Price is Rs. 105
What inference can you draw from this about the relation between Market price and yield?
Financial Institutions and Markets
Q1. As a financial advisor at your advisory firm, you have a client who is seeking to diversify their investment portfolio by venturing into capital market instruments alongside their existing investments. This discussion will enable your client to make informed decisions regarding their investment strategy and portfolio diversification. Assist your client by providing comprehensive insights into various capital market instrument including their key characteristics.
Q2. Sunshine Ltd. Corporation, a fast-growing technology start-up, is poised for expansion and seeks to raise capital to fund its ambitious growth plans. The company’s management team, led by CEO John Ceth, recognizes the importance of strategically accessing the primary market to secure the necessary funds. As an advisor to the company, help the corporation to provide a brief overview on the numerous techniques as how the corporation can raise fresh capital in the primary market.
Q3A. “The capital market, a crucial component of the global financial system, serves as a platform for investors to buy and sell securities, facilitating the allocation of capital to businesses and governments. However, amidst the myriad opportunities for growth and investment, instances of scams and fraudulent activities have tarnished the integrity of the capital market “. Provide examples of regulatory interventions and their impact on restoring investor confidence. Conclude with recommendations for enhancing regulatory effectiveness in combating financial misconduct.
Q3B. India’s financial sector plays a crucial role in driving economic growth and stability. As MBA students specializing in finance, it is imperative to have a comprehensive understanding of the regulatory landscape governing financial institutions in India. Discuss the various financial Regulatory Institutions in India with their functions.
