OL ST.

XAVIER'S COLLEGE
(AUTONOMOUS)
KOLKATA

5th SEMESTER EXAMINATION

DECEMBER 2022
B.COM.

Friday, 09, 2022

December
BCHDE5312 09:00 AM to 12:00 Noon
3 hours
BANKING AND INSURANCE Full Marks : 80

READ THESE INSTRUCTIONS FIRST:

Of the questions attempted, the answers to only the first required number of questions (as stipulated
in the question paper) will be evaluated. So please do not attempt extra questions

Use fountain pen or ball-point pen of blue or black ink.

Answer in your own words as far as practicable.
Do not write anything on the question paper other than your Roll No.

At the end of the examination, fasten all your work securely together.
The marks are given in brackets | | at the end of each queston or part question.

The question paper consists of 3 pages.

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 Of thequestions attempted. the answers to only the first required numberof
questions(asstipulated in thequestion paper) will beevaluated.
So, PLEASE DO NOT ATTEMPT EXTRA QUESTIONS.

GROUP A
Answer ANY THREE Questions. 3x5-15]
1. Explain the concepts of NEFT and RTGS in detail.
[2.5+2.5]
2. How does cash credit help in the arrangement of short-term working capital?

3. Discuss the role of credit bureaus in credit appraisal and credit granting process.

4. Write a short note on hull insurance.

5. According to the Banking Regulation Act, 1949, state the activities which a bank can take

up in its normal course of operation.

GROUPB
Answer ANY FIVE Questions. 5x7-35]
6. (a) Differentiate between hazard and peril.
(b) What is bancassurance? [3+4]
7. (a) CASA score of a bank gives away the degree of operational effectiveness it has' - Give
your comments.
(b) What do you understand by the 'Asset Liability Management' of a Bank? 4+3]
8. Explain the mechanism for securitization of standard assets by using a SPV.

9. Explain the process of securitization of stressed assets by Asset Reconstruction

Companies.
10. Information Technology Enables Services have a great impact on banking services.' Do
you agree with this statement? Justify your answer.

11. Differentiate between hypothecation and mortgage with examples.

12. Explain the implications of Basel II norms with respect to each
of the pillars.
GROUP C
Answer ANY TWOQuestions.
[2x5-301
13.Identify and explain the 'Principles of Insurance' with reference to the following cases:
[3x5=15]1
(a) Ram had a saree shop which
caught fire and as a result, a part of the stock that was
stored was destroyed. The shop was insured for
its full value of
claimed the full amount. The insurance 20,00,000. Ram
company's surveyor examined the damage
and estimated that the loss was
only 10,60,000. How much claim is Ram
receive? Did he violate any principle of insurance eligible to
when he made the full claim?
Explain

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 b) Lakshman has taken a marine insurance policy to cover the goods exported by him
Iinder the policy, goods have been insurea aganst damage likely to be caused by sea

water. During the voyage, a hole was caused at the bottom of the ship. Through this
hole, sea water has entered into the ship and damaged the goods insured. If seepace ic
a peril covered by the marine policy, can Lakshman claim for damages? What will he
the 'Proximate Cause' in this scenario? it it is proved that the hole was caused duo to.
negligence at the time of loading the cargo, will he get the claim? Explain

el ita ants to take health insurance for all the members of her family which includes
her husband, son and dependent parents. Is she eligible to do so? She also wants to
take a health insurance for her colleague who is not dependent on her. Is she
permitted to do so? Explain

14. (a) From the following information, comment on which bank is performing well and
explain the relevance of each indicator:

Bank Operating Profit / | Net Profit /Interest Income | Net Interest Margin /
Total Assets Total Assets /Total Income Total Assets
Bank A 1.2 0.89 85.52 2.55
Bank B 1.3 0.76 95.39 1.98
Bank C 0.9 0.55 76.22 2.93

(b) How do the Debt Recovery Tribunals assist in the recovery of credit?
[9+6]
15. Write short notes on:
5+5+5]
(a) Reverse mortgage
(b) Loan syndication
c) Credit monitoring and recovery

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