Download GTU MBA 2019 Summer 3rd Sem 3539224 Banking And Insurance Bi Question Paper

Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 3rd Sem 3539224 Banking And Insurance Bi Previous Question Paper

Page 1 of 2


Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3 ? EXAMINATION ? SUMMER 2019

Subject Code: 3539224 Date:11/05/2019
Subject Name: Banking and Insurance (BI)
Time: 2.30 pm to 5.30 pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Q. 1 Explain the following terms in short. (Each of 2 Marks) 14
a) Credit Card
b) Insurer
c) Digital Payment
d) ULIP
e) KYC
f) Group Insurance
g) Term Loan

Q.2 (a) Explain in brief the role and main functions of Reserve Bank of India? 07
Q.2 (b) Are you in favour of digital banking services? Yes or No. Justify your answer
properly.
07
OR
Q.2 (b) What is Electronic Fund Transfer? Discuss its advantages and disadvantages
along with suitable examples.
07

Q.3 (a) Explain the essential principles of an insurance contract. 07
Q.3 (b) ?Insurance Regulatory and Development Authority (IRDA) plays pivotal role
in the development of insurance industry in India? Comment on this
statement.
07
OR
Q.3 (a) What do you mean by Priority Sector Lending? Which are the different
categories included under priority sector?
07
Q.3 (b) Compare the traditional life insurance plans and market related variable life
insurance plans along with suitable examples.
07

Q.4 (a) Write a short note on marine insurance contract. 07
Q.4 (b) Explain any one insurance product of your choice offer by Public Sector and
Private Sector Organizations offering Insurance Products in India.
07
OR
Q.4 (a) Define life insurance contract? Explain the various provisions of life
insurance contract?
07
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Page 1 of 2


Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3 ? EXAMINATION ? SUMMER 2019

Subject Code: 3539224 Date:11/05/2019
Subject Name: Banking and Insurance (BI)
Time: 2.30 pm to 5.30 pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Q. 1 Explain the following terms in short. (Each of 2 Marks) 14
a) Credit Card
b) Insurer
c) Digital Payment
d) ULIP
e) KYC
f) Group Insurance
g) Term Loan

Q.2 (a) Explain in brief the role and main functions of Reserve Bank of India? 07
Q.2 (b) Are you in favour of digital banking services? Yes or No. Justify your answer
properly.
07
OR
Q.2 (b) What is Electronic Fund Transfer? Discuss its advantages and disadvantages
along with suitable examples.
07

Q.3 (a) Explain the essential principles of an insurance contract. 07
Q.3 (b) ?Insurance Regulatory and Development Authority (IRDA) plays pivotal role
in the development of insurance industry in India? Comment on this
statement.
07
OR
Q.3 (a) What do you mean by Priority Sector Lending? Which are the different
categories included under priority sector?
07
Q.3 (b) Compare the traditional life insurance plans and market related variable life
insurance plans along with suitable examples.
07

Q.4 (a) Write a short note on marine insurance contract. 07
Q.4 (b) Explain any one insurance product of your choice offer by Public Sector and
Private Sector Organizations offering Insurance Products in India.
07
OR
Q.4 (a) Define life insurance contract? Explain the various provisions of life
insurance contract?
07
Page 2 of 2


Q.4 (b)

Are you in support of having health insurance policy or against it? Justify
your answer with appropriate reasons either for support it or against it.

07
Q.5 CASE STUDY
A quality of assets held by banks is a critical indicator of the health of the
financial system. A high quality of assets reflects the level of bank?s credit
risk and efficiency in allocation of resources to the productive sector. Non-
Performing Assets (NPA) are loans given by a bank or financial institutions
wherein the borrower defaults or delay the interest or principal payments. As
per the RBI norm, any interest or principal delayed beyond 90 days known as
NPA. Further it is classified in to Standard Assets, Sub Standards Assets,
Doubtful Assets and Loss Assets. NPA puts negative impact on the
development of an economy. Currently, the Indian Banking sector facing the
problem of high level of Non-Performing Assets and a recent report revealed
by CARE rating puts the Indian economy on the top 5 countries with highest
amount of bad loan in the world with NPA ratio of 9.9. Some of the reasons
behind this situation include, defective lending process, lack of demand,
ineffective recovery mechanism, natural calamities, industrial sickness,
changes in government policy, use of outdated technology, willful defaults,
poor credit appraisal system and managerial deficiencies. Therefore, it is
essential to take some remedial measures immediately. Now banks and
financial institutions saddled with bad loans have multiple options to manage
their NPA like One time settlement scheme, Lok Adalats, Debt Recovery
Tribunals, Corporate Debt Restructuring (CDR), SARFAESI Act and Assets
Reconstruction Companies. The provisions of Indian laws do not facilitate
speedy and effective enforcement of securities. Hence in order to make the
process faster and result oriented recently newer mechanism like Insolvency
and Bankruptcy Code, 2016 (IBC Code, 2016) , Formation of National
Company Law Tribunal (NCLT) and Prompt Corrective Action (PCA) have
been initiated by regulators. It is expected to solve the issue of bad loan in a
quick and efficient manner for Indian banking sector.


14


















Q.5 (a) Identify the causes of high level of NPA in the Indian Banking sector. 07
Q.5 (b) Which are the tools available for Banks to manage their NPA? 07
OR
Q.5 (a) What is a Non-Performing Assets (NPA)? What are the types of NPA and
reasons of NPA?
07
Q.5 (b) Which are the newer mechanism of NPA recovery and which are the old
mechanisms? Why a regulator has initiated newer mechanisms?
07

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This post was last modified on 19 February 2020