M.B.A. DEGREE EXAMINATION,
NOVEMBER 2017
Third Semester
CREDIT MANAGEMENT
(CBCS 2013 onwards)
Time 3 Hours Maximum 75 Marks
Part A x 3 15)
Answer all questions.
All questions carry equal marks.
1. Define Capital Adequacy Ratio.
2. What is the need for Financial Inclusion?
3. What is meant by Economical Appraisal?
4. What is stamping of documents?
5. What is off-site supervision?
Part B x 10 50)
Answer all questions choosing either or
All questions carry equal marks.
6. Explain the lending options and strategies.
Or
State the principles of credit management.
Sub. Code
632305
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7. Explain the issue relating to priority sector lending.
Or
What are the problems in lending to Tiny sector?
8. Discuss the factor considered in Financial Appraisal
and Technical Appraisal of projects.
Or
What are the steps involved in preparing a project
proposal for availing credit?
9. What is encumbrance report? Explain it roles and
importance.
Or
Explain why banks need security document and
explain the types of bank security documents.
10. Explain the role of a bank in the recovery of NPA.
Or
What are the procedures and possibilities available
for rehabilitation of sick units?
Part C 10 10)
(Compulsory)
11. Read the following case and answer the questions.
You are the Head of Credit Risk of PQRZ Bank. You
recently attended a conference, where you have learned
that a few banks have exited ABC Company, due to lack
lustre performance and rumours of internal problems. To
your discomfort, you find that there is no reduction in
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facilities in your bank; on the other hand, there was an
increase in the recent past. The relationship team reports
that although there are concerns, the company has taken
the right steps to rectify the situation, which has been
highlighted in the recent annual review.
However, within a few months ABC Company applies for
bankruptcy resulting in credit losses. You feel that the
credit risk monitoring is inadequate.
What steps would you suggest to improve the credit
monitoring within the bank?