Banking Presentation Part 1 - 2023 Overview
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Questions and Answers

What are the types of banks included in the new age banking structure?

  • International Banks and Cooperative Banks
  • Small Finance Banks and Payments Banks (correct)
  • Commercial Banks and Investment Banks
  • Microfinance Institutions and Credit Unions

    • Which of the following instruments are classified as negotiable instruments?

  • Stocks and Bonds
  • Credit Cards and Loans
  • Promissory Notes and Cheques (correct)
  • Deposits and Currency Notes

    • Which function of the RBI relates to the tools of monetary control?

  • Regulating foreign direct investment
  • Setting interest rates for loans
  • Managing the money supply through CRR and SLR (correct)
  • Overseeing banking fraud investigations

    • What distinguishes digital rupee from UPI?

    <p>Digital rupee is a government-backed currency, while UPI is just a payment system</p> Signup and view all the answers

    What is a critical aspect of the Negotiable Instruments Act related to cheques?

    <p>Failure to honor a cheque can lead to criminal penalties under Section 138</p> Signup and view all the answers

    Which of the following is not considered a type of financial asset in the Indian financial system?

    <p>Mutual funds</p> Signup and view all the answers

    Which of the following best describes the role of banks within the Indian financial system?

    <p>Financial intermediaries</p> Signup and view all the answers

    Which of these is an example of a financial market?

    <p>Money market</p> Signup and view all the answers

    Which type of institution is not directly regulated by the Reserve Bank of India (RBI)?

    <p>NBFCs</p> Signup and view all the answers

    Which of the following components does not belong to the category of financial institutions?

    <p>Forex market</p> Signup and view all the answers

    What is the primary focus of the syllabus in the banking course?

    <p>Application of concepts in corporate life</p> Signup and view all the answers

    Which aspect of banking performance measures is NOT mentioned in the content?

    <p>Capital Adequacy Ratio (CAR)</p> Signup and view all the answers

    What is one of the expected outcomes for students studying banking history?

    <p>Understanding the basics of the banking industry</p> Signup and view all the answers

    How does the content suggest the number of classes may change?

    <p>Depending on class participation and depth of discussion</p> Signup and view all the answers

    What is a key concern about the teaching approach stated in the syllabus overview?

    <p>Focus on theory only</p> Signup and view all the answers

    Which of the following best describes the teaching style mentioned for the banking course?

    <p>Incorporation of corporate stories with theory</p> Signup and view all the answers

    What impact does class participation have according to the syllabus?

    <p>It may alter the number of teaching hours</p> Signup and view all the answers

    Which component is essential for understanding banking performance measures as mentioned?

    <p>Basic banking concepts and needs</p> Signup and view all the answers

    What is the primary purpose of reinsurance?

    <p>To reduce the risk exposure of insurers</p> Signup and view all the answers

    What does the concept of a Marital Woman’s Property Act (MWPA) primarily deal with?

    <p>Legal rights of married women regarding property ownership</p> Signup and view all the answers

    Which type of insurance is characterized by the option to purchase coverage on a case-by-case basis?

    <p>Facultative reinsurance</p> Signup and view all the answers

    What is a significant trend in the insurance industry related to document management?

    <p>Implementing electronic insurance accounts</p> Signup and view all the answers

    Which of the following is NOT listed as a prescribed textbook for insurance studies?

    <p>Fundamentals of Risk Management</p> Signup and view all the answers

    In the context of insurance education, what does ICA stand for?

    <p>Internal Assessment Component</p> Signup and view all the answers

    What is the primary focus of retrocession in the insurance industry?

    <p>To transfer risk from one reinsurer to another</p> Signup and view all the answers

    Which government website would provide information on insurance regulations in India?

    <p><a href="https://irdai.gov.in/">https://irdai.gov.in/</a></p> Signup and view all the answers

    What is a defining characteristic of money market instruments?

    <p>They are secure due to high credit ratings of issuers.</p> Signup and view all the answers

    Which of the following best describes the types of institutions that typically make up the money market?

    <p>Non-banking finance corporations, commercial banks, and corporate houses.</p> Signup and view all the answers

    Which financial instruments are traded in the money market?

    <p>T-Bills, call money, commercial papers, and certificates of deposit.</p> Signup and view all the answers

    What does the term 'high liquidity' imply in the context of the money market?

    <p>Funds can be easily converted into cash without significant loss.</p> Signup and view all the answers

    What does the term FinTech refer to?

    <p>The use of technology to innovate financial services.</p> Signup and view all the answers

    What is typically traded in the primary money market?

    <p>Initial Public Offerings (IPOs) and private placements.</p> Signup and view all the answers

    Which statement about the secondary money market is accurate?

    <p>It facilitates trading of existing financial instruments.</p> Signup and view all the answers

    What role do mutual funds play in the context of the money market?

    <p>They can be involved in both primary and secondary money market activities.</p> Signup and view all the answers

    What characterizes intraday trading?

    <p>Buying and selling stocks within the same day</p> Signup and view all the answers

    Which of the following describes a futures contract?

    <p>An agreement to sell a stock at a predetermined price on a set date</p> Signup and view all the answers

    What is the primary purpose of a forex trading account?

    <p>To facilitate trading in different world currencies</p> Signup and view all the answers

    Which of the following options does NOT belong to the types of commodities traded in India?

    <p>Stock options</p> Signup and view all the answers

    What does the term 'ask price' refer to in trading?

    <p>The price at which an investor is looking to sell a stock</p> Signup and view all the answers

    In commodity trading in India, which exchange is NOT mentioned as a recognized platform?

    <p>BSE</p> Signup and view all the answers

    Which strategy involves selling a stock in anticipation of a price decline?

    <p>Short selling</p> Signup and view all the answers

    What distinguishes fundamental analysis from technical analysis?

    <p>Fundamental analysis involves evaluating a company's financial health, while technical analysis looks at price trends.</p> Signup and view all the answers

    Study Notes

    Banking & Insurance Presentation

    • Presenter: Parag Shah, CA, MBA (Fin), LLB(Gen)
    • Experience: Over 25 years in BFSI, including 10 years as CXO at Banks/NBFCs
    • Presentation Handle: "The Coaching Vista" (Mentorship Vertical)
    • Source: RBI publications, Articles, Books, and personal speaker experiences

    Banking Part 1

    • This is the first part of a presentation on Banking
    • No further details provided in the slides regarding the specific content

    Context Setting (2023)

    • Review of 2023, possibly from CNBC
    • Focus is on the context, setting the stage for the discussion but doesn't dive into specific details beyond that

    Expectations

    • Students are encouraged to be proactive and ask questions
    • The content will not just be theoretical but will include corporate examples of theory applications.
    • Marks will depend on the understanding of the syllabus, question style, and presentation structure for the Q. Paper

    Context Setting (Indian Economy)

    • Slides mention background and influencing factors of Indian economy
    • A separate presentation (PPT) is expected to cover this topic

    Overview of Syllabus

    • Syllabus and recommended reading for broad topics are provided
    • Presentation order of topics may vary
    • Number of class hours may depend on level of discussion and practical cases
    • Application of concepts in corporate life is emphasized over verbatim textbook definitions

    Syllabus (Part 1 of 3)

    • Covers Banking history, principles, and performance measures (NIM, NII)
    • Discussion of banks' role in capital markets and depository functions
    • Types of banks (scheduled/non-scheduled, small finance, payment banks, NBFC/Neo Banks)
    • Banking instruments (loans, instruments, calculations, etc.)
    • Tools of monetary control

    Syllabus (Part 2 of 3)

    • Covers the history and basics of insurance and types of insurance plans (life insurance, endowments, whole life, term plans)
    • Underwriting and claims processes
    • Reinsurance, MWPA (Married Woman Prop Act)
    • Electronic insurance, shift towards electronic forms
    • Topics in this section also mention detailed explanations in class rather than in the slides (i.e. for the mutual funds/forex sections)

    Syllabus (Part 3 of 3)

    • Covers NPAs (Non Performing Assets) – its effects, recovery techniques, and identification solutions
    • Additional topics for banking part 3 are not explicitly described in the slides

    Prescribed Textbooks and References

    • Jyotsna Sethi, Nishwan Bhatia, "Elements of Banking and Insurance" (3rd Edition, PHI, 2023)
    • Dr. Sunil Kumar, "Essentials of Banking and Insurance" (2nd Edition, JSR Publications, 2020-21, Reprint 2023)
    • LM Bhole, "Financial Institutions and Markets" (6th Edition, Tata McGraw-Hill, 2017)
    • Additional web-based resources are listed: allbankingsolutions.com, rbi.org.in, policyholder.gov.in, irdai.gov.in

    ICA (Interactive Class Activities)

    • Presentation assignments (team-based) covering 2 weeks of August, 3-4 weeks of September, and 1-2 weeks of November 2024.
    • Quizzes (groups of two)
    • Mid-term exam (20 marks)
    • Term end exam (5th December 2024 onwards)

    Context Setting: Indian Financial System

    • Framework for financial transactions within a country
    • This section provides high-level definitions on the topic, without further details.

    Key Aspects of a Financial System

    • Financial Assets: Loans, deposits, bonds, equities
    • Financial Institutions: Banks, mutual funds, insurance companies
    • Financial Markets: Money market, capital market, forex market
    • Regulators: RBI, IRDA (mentioned in the financial system diagram.)

    Indian Financial System Diagram

    • Visual representation details concerning financial markets and institutions.

    Money Market Basics

    • Definition: Market for short-term financial assets (typically with maturity of one year or less).
    • Key features: High liquidity and short maturity.
    • Participants: Non-banking finance corporations (NBFCs), commercial banks, and corporate houses

    Money Market Features

    • High liquidity: Short-term financial assets are easily convertible to cash.
    • Secure investment: Issuers usually have high credit ratings.
    • Fixed returns: Maturity values tend to be predetermined.

    Types of Money Market Instruments

    • Treasury Bills (T-Bills): Issued by RBI on behalf of the central Government.
    • Commercial Papers (CPs): Unsecured promissory notes issued by large corporations, businesses, and institutions.
    • Certificates of Deposits (CDs): Financial assets issued by banks with a fixed interest rate.
    • Inter-Corporate Deposit (ICD): Unsecured borrowing by corporations

    Capital Market Basics

    • Definition: Market for financial securities like bonds and stocks, enabling buying and selling of existing debt/equity securities.
    • Function: Channelizing surplus funds from investors to institutions for productive use..
    • Participants: Individual/institutions for buying/selling/exchange of securities.

    All about the Bond Market

    • Definition: Debt instrument providing periodic interest payments.
    • Key characteristics: Face value, Coupon rate, Coupon, Maturity, Call provisions, and Put provisions.

    All about Stocks/Equity

    • Definition: A marketplace for buying and selling stocks/shares.
    • Participants: Investors, financial institutions, intermediaries, stock brokers.
    • Tools: Bank accounts, Demat accounts for holders/ trading account for traders, Stock Brokers.
    • Exchanges: BSE, NSE

    Options in Trading (besides stocks)

    • Trading can also involve commodities (energy, metals, food, livestock/meat), futures and options contracts, and forex trading.

    All About Trading (Futures, Options, Forex)

    • Futures and Options: Agreements to buy/sell an asset at a specific price on a future date, derivatives.
    • Forex: Decentralized trading market for currencies.

    Concepts about Trading (Stock Market)

    • Stock Exchanges: Listing and trading of securities (Examples: Sensex, Nifty); regulations by SEBI
    • Online vs. Offline trading
    • Fundamental/Technical analysis
    • Intraday vs. Delivery trading

    Concepts about Trading(Stock Market) continued

    • Bid Price: Price at which a dealer wants to purchase a share
    • Ask Price: Price at which a dealer wants to sell a share
    • Short Selling: Selling borrowed securities in the anticipation of a price decline.

    Concepts about Trading (Stock Market) continued

    • Upper and lower circuit limits: Limit on the amount of price fluctuation for particular stocks to control volatility in trading.
    • Insider trading: Trading based on non-public information. This is illegal and is discussed.
    • ISIN: International Securities Identification Number, unique code for securities.
    • PE Ratio: Price/Earnings ratio (stock price/ earnings per share).

    Broad Differences: Stocks/Bonds

    • Stocks: Equity instrument, dividends, voting rights, less guaranteed return; potential for higher return, and are a representation of ownership
    • Bonds: Debt Instrument, payment of interest, preferential treatment, guaranteed return (to a point.)

    Class Participation Time

    • Learning from previous slides with possible corporate real-life examples related to the given sections.

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    Related Documents

    5 Banking 1 of 4 PDF

    Description

    Join us for the first part of an insightful presentation on banking, led by expert Parag Shah. This session will provide a contextual overview of the banking landscape in 2023, incorporating corporate examples and encouraging student engagement through questions.

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