MBFI Quiz Key
MBFI Quiz Key
MBFI Quiz Key
Tiruchirapalli 620014
Managing Banks and Financial Institutions
Pre- Mid Term Quiz
Total Marks:
Number : Time : 1 hour
Rs in Crores
31.3.2009 31.3.2010
Net Bank Credit 50000 60000
Investments
SLR investments 40000 55000
Non SLR 10000 12000
investments
Off balance sheet 35000 43000
exposure
For the sake of simplicity, assume that all investments are held in
HTM category. For the financial year ending 31.3.11
a. What will be the total priority sector advance target for the bank
if the bank is a domestic scheduled commercial bank ?
b. What will be the target for direct agriculture lending, if the bank
is a domestic scheduled commercial bank ?
c. What will be the total priority sector advance target, if the bank is
a foreign bank ?
d. What will be the export credit target if the bank is a domestic
scheduled commercial bank
e. What will be the direct agriculture target, if the bank is a foreign
bank ?
As ANBC is higher than OBE , it is considered. The previous year’s
numbers are considered ( again, logically coming year numbers
cannot be considered). Here hence numbers for FY 2010 are
considered.
ANBC = 60000 + 12000 ( the non SLR investments )= 72000
a. Domestic priority target is 40% ( 28800)
b. Domestic direct agri is 13.5% ( 9720)
c. Foreign priority is 32% ( 23040)
d. Export domestic = nil
e. Agri foreign = nil
40 Following are the details of bank on the reporting Friday 6
Liabilities Rs in Assets Rs in Crores
Crores
Liabilities to the 1000 Current 500
banking system account
balances
with other
banks
Current account 2000 Interbank 1000
balances deposits of
maturity
more than 30
days
Current portion of 2000
savings account
balances
Time portion of 6000
savings account
balances
Term deposits 10000
Provisions 500
Contingent 1250
liabilities
What is the CRR and the SLR that the bank has to maintain?
Current CRR is 6% and SLR is 25%
When you net off , you net off assets and liabilities from and to the
banking system. Logically, it cannot be netted off against liabilities to
others.
Hence CRR , it is
6% X [( 1000 – 500) + 2000 + 2000 + 6000 + 10000] or 1230
For SLR , it is