1.Differenciate between Primary and Secondary Markets?
2.“Financial institutions provide the means and mechanism of transferring command over resources from those who have an excess of income over expenditure to those who can make use of the same with view to adding to the volume of productive capital”. Discuss.
3.In the insurance sector a numbers of reforms have been introduced in the recent past. Explain them in brief?
4.How IDFC has emerged as a company supporting infrastructure projects?
5.Profitability, Liquidity, Safety and Social Welfare are the major principles which commercial banks strive to incorporate in their working. Explain.
6. Write a detailed note on the objectives, functions and contribution of IDBI.
7. What is the need for development banks in India? Explain the objects and scope of Development Banks?
8.State the role objectives of financial institutions in India?
Case Study # Lendingkart to offer its credit risk analytics software to financial institutions
Lendingkart, an online lender to small and medium enterprises (SMEs), will offer its credit risk analytics software as a service for other financial institutions in 2017, and aim to double its reach in the next six months, a top company executive said.
“We plan to offer our analytics technology to other NBFCs (non-banking financial companies) and financial institutions sometime in 2017,” said Lendingkart’s co-founder Harshvardhan Lunia in a telephonic interview. “We aim to increase our reach across various credit product, geography and customer segments by monetizing our data analytics and credit scoring platform, which other lenders can use to evaluate the credit worthiness of the borrowers...Also, it will help us to disburse more loans without increasing our book size thus, increasing returns of assets for us,” Lunia added in an email response.Since its inception in 2014, the online NBFC, Lendingkart Finance Ltd has disbursed 7,000 loans to SMEs in over 450 cities. The company expects this number to cross 10,000 covering over 800 cities in next six months. Lendingkart Finance and Lendingkart Technologies Pvt. Ltd are part of the Lendingkart Group. Lendingkart Technologies has built analytics software to evaluate borrowers’ credit worthiness.
Founded by Lunia and Mukul Sachan, Lendingkart underwrites working capital loans online to SMEs, which have an annual turnover of Rs12 lakh to Rs1-1.5 crore. On an average, these SMEs are lent Rs5.5-6 lakh at an annualized interest rate ranging between 16% to 24%, for a duration of six to 12 months. Lendingkart claims to have a loan application approval rate of 22-23%. The credit risk analytics technology analyses the borrower or an SME on the basis of over 2200 variables and data points, which includes industry type, business cash-flows and transactions, income tax return filings of the business, its previous loan and repayment records, among others. This is the technology that Lendingkart plans to share with other financial institutions.Lunia explains there are two possible ways in which it could monetize this service. “Using our (risk analytics) technology, we could co-lend with other financial institution in cases where SMEs have larger (capital) needs. The other way is that we charge (the financial institutions) for using our technology,” he said. However, Lunia added that it is too soon to forecast how much revenue Lendingkart will earn from its technology.
Lendingkart, which has 350 employees across offices in Ahmedabad, Bengaluru and Mumbai, has raised over $40 million from Betelsmann India Investment, Darrin Capital Management and Mayfield India, among other investors. The fintech company competes with Bengaluru-based Capital Float (Zen Lefin Pvt. Ltd), Instakash Technlogies Pvt. Ltd, Neogrowth Credit Pvt. Ltd, IndiaLends (GC Web Ventures Pvt. Ltd), among others.
In May, Capital Float raised $25 million (Rs170 crore) in an investment round led by US-based Creation Investments. In August, Mumbai-based NeoGrowth raised Rs15 crore from Frontier Investments Group and IndiaLends raised about Rs6.5 crore from DSG Consumer Partners, Siddharth Parekh and other angel investors.
1. What the case is all about? Provide detail in your words?
2. Do you believe such software really help improving financial institutions? If Yes, How?
3. What two different possible ways are suggested by Lunia to monetize the given service?
Question No. 1 Marks - 10
The advance value of LIC policy is linked with ………….. Value.
Question No. 2 Marks - 10
SBI´s new training initiative "Strategic Training Unit" is located at ……….
Question No. 3 Marks - 10
The portion of total deposits of a commercial bank which it has to keep with RBI in the form of cash reserves in termed as
Question No. 4 Marks - 10
SBI´s Archieve Center is located at
Question No. 5 Marks - 10
Chalpathi Rao committee was meant for restructuring of ……………. Banks.
Question No. 6 Marks - 10
Real Time Gross Settlement (RTGS) is managed by
Question No. 7 Marks - 10
1st August of every year is observed as
1.KYC Filing day
2.KYC Fraud Prevention Day
4.Computer Security Day
Question No. 8 Marks - 10
Dalal Street is located in………………. City.
Question No. 9 Marks - 10
CDSL stands for Central …………………… Services Limited of India.
Question No. 10 Marks - 10
On which of the following banks the Reserve Bank of India depends?
Question No. 11 Marks - 10
A diff swap is also known as a quanto swap.
Question No. 12 Marks - 10
NEFT and RTGS are……………….. Systems.
Question No. 13 Marks - 10
……………. Investores are high worth individuals who provide seed capital for start-ups in return for a minority share in business.
Question No. 14 Marks - 10
The eurocurrency market is small, relative to national markets.
Question No. 15 Marks - 10
A major part of the eurocurrency market is interbank activity true.
Question No. 16 Marks - 10
An agreement to exchange fixed interest rate payments on a loan for floating interest rate payments is an ………………...rate swap.
Question No. 17 Marks - 10
A ………………..is a bank deposit held in a country that does not issue that currency in which the deposit is denominated.
Question No. 18 Marks - 10
Currency swaps have expanded less rapidly than interest rate swaps because they require …………... capital backing under the Basle rules.
1.Not less than
Question No. 19 Marks - 10
Very popular form of Investments, called mutual funds fall under which sector of economy?
Question No. 20 Marks - 10
ICICI, HDFC, and Yes bank are form of ………………… types of banks
Question No. 21 Marks - 10
Treasury biils are used for ……………….. Type of requirments.
Question No. 22 Marks - 10
In term of PMLA, records of cash transaction of Rs 10 lacs and suspicious transaction are required to be maintained for a period of ……… Years.
Question No. 23 Marks - 10
DEMAT is an instrument of …………….. Market Sector.
- Capital Market
- Money Market
Question No. 24 Marks - 10
The New Industrial Policy of India came in which year………….
Question No. 25 Marks - 10
The eurocurrency market is principally concerned with…………….term lending False
Question No. 26 Marks - 10
Monetary policy of India is launched by………………. In India?
- HDFC and ICICI
Question No. 27 Marks - 10
Supporters of the portfolio approach to the eurocurrency argument argue that the growth of the eurocurrency market has not been ………….. because the eurobanks cannot create credit.
Question No. 28 Marks - 10
A …………………….. is a bond issued outside of the country in the currency of which it is denominated.
Question No. 29 Marks - 10
Short-termism´ describes a concentration by firms on …………………..-term profits.
Question No. 30 Marks - 10
Problems arose in the 1990s in the newly emerging markets because losses in one market frequently cause ………….. to become temporarily risk averse.
Question No. 31 Marks - 10
Safes are less safe for banks than are most other derivatives.
- Can´t Say
Question No. 32 Marks - 10
A ……………….coupon swap is a combination of an interest rate swap and a fixed rate currency swap.
Question No. 33 Marks - 10
Floating rate eurobonds become popular when interest rates are very ……………………
Question No. 34 Marks - 10
The default risk on futures is greater than on swaps.
- Can´t Say
Question No. 35 Marks - 10
It is possible to combine a zero coupon bond with an interest rate swap to produce a diff swap.
- Can´t Say
Question No. 36 Marks - 10
………………. Bill is a bill of exchange without any consideration, or quid pro quo.
Question No. 37 Marks - 10
BSE stands for ……………….. Stock exchange.
Question No. 38 Marks - 10
Comment on the statement: The small implied changes in expected interest rates suggest that the market felt that interest rates had reached a peak.
- Can´t Say
Question No. 39 Marks - 10
………….. Is the simultaneous purchase and sale transactions in a security or a commodity, undertaken in different markets to profit from price differences.
Question No. 40 Marks - 10
Which is not an instrument of money market?
- Call Money
- Equity Share