QUESTIONS WITH BULLET POINT ANSWERS Q. 1.

What are the macroeconomic forces shaping banking operations across the globe? Globalization Liberalization & deregulation Privatization Disintermediation Market orientation Q. 2. What are the visible features of the global banking space today? Customization of products Customer sophistication Heightened competition Prudential regulations Technological innovation Banks are on e-superhighway Q. 3. Which are the capital components of the Banks/ Financials Institutions? Financial Capital - own and loan funds Human/ Intellectual capital talent back up Physical Capital infrastructure facilities including technology Relationship Capital brands, customers etc

Q.4. Why are Banks as financial intermediaries accorded a special status in the financial system? Banks as financial intermediaries occupy a special status because banks are a part of the Development process of the country instrumental in Life Cycle Wealth mapping of individuals reach out to unbanked/ underbanked due to financial inclusion Q.5. What specific roles Banks as part of the development process of the country play? Asset transformation Money transmission Credit Allocation Risk Transfer/Mitigation Intergenerational Wealth transfer Denomination intermediation (Mutual Fund) Q.6. What are the cardinal principles of banking? Safety of funds Superior Liquidity

 Profitability Q.7. If you are appointed as Chairman of IDBI Bank which critical dimensions of the banking will be your top priority? Organizational revitalization to have focused attention on growing areas creation of business verticals Innovation in customer experience/ customer value Creation Human Resources Development Risk Management to be accorded top priority Technology adoption in product design and delivery Asset Liability Management Q.8. What is the rationale for Government proposal for capital infusion in Public Sector Banks? To strengthen the credit risk profile of the Banks by boosting Tier I Capital Adequacy Ratio Q.9. From risk management perspective which is the ideal financing option? A mix of Own Funds (Equity) Loan Funds (Debt) Rented Funds (Lease Finance) Q.10. Risks in banking parlance predominantly refer to what? Variation or uncertainty in level of return on assets Shortfall in realisation from assets Preventing Frauds Ensuring adequacy of insurance of assets Q.11. Why Banks have been and will continue to be subject to significant publicauthority regulation and supervision? Banks play a key role in driving economic performance of the economy Banks deal in other peoples moneya fiduciary nature of business Potential for financial fraud Possibility of serious social costs associated with bank failures Q.12. In Retail Banking risks are mitigated by multiple approaches. What are they? Product Programme Guidelines for each product like Housing Loan, Mortgage Loan, Auto Loan, Educational Loan, etc. Know Your Customers (KYC) norms Credit scoring models Legal/ Technical/ Risk Containment Unit (RCU) due diligence

Q.13. RBI has made Risk Management, an integral part of Prudential Regulations, mandatory for Banks. Why? Banks are increasingly speculating in the market for trading gain Banks are exposed to a higher degree of risk due to huge AssetLiability mismatches Failure of Banks has wider social and economic spillover effects Banks are diversifying into varied range of activities through Private Pool of Capital (PPC) Private Equity, Mutual Funds etc. Q.14. In infrastructure projects being financed through Public Private Partnership (PPP) routes, risk analysis assumes critical significance because Why? Project returns are spread over longer time Need to enhance certainty/ predictability of cash flow Project parameters NPV, IRR, DSCR are subject to high level of uncertainty Banks should not finance a bad project or fail to finance a good project Projects are capital intensive, highly risky and are of longer gestation period Q.15. What is financial engineering? What are the financially engineered derivative products? What is the rationale? The process of evolution of different new techniques of financial analyses and new financial instruments to enable financial market participants to hedge risks and cope more effectively with the emerging conditions is known as financial engineering. Swaps, Options, Financial futures, Swaptions ,Forwards etc Hedging Risk exposure

Q.16. What are the various ways by which Risk exposure by Banks can be effectively mitigated? Client diversification Wholesale banking, Retail banking, Investment banking, Transaction banking, etc Geographical diversification Product innovation Q.17. Retail banking products have better risk appeal for Banks visvis wholesale banking products why? Diversification of risk across large volume Higher return potential Known customer segment Branch channels are in close proximity to the customer base

Q.18. Multilateral Banks like World Bank (IBRD), ADB, AfDB, JBIC etc are increasingly participating in project financing in emerging market economies. Why? Projects are profitable/ socially desirable Project risk are mitigated through a bundle of package contracts through ICB (International Competitive Bidding) Better security pool Projects are backed by Credit enhancement tools like guarantee, standby line of credit, Escrow mechanism, rollover letter of Credit etc Q.19. How is IDBI Banks Risk profile in the global financing space is primarily determined? Depth of pocket due to strong capital base Q.20. Basel framework for Banking Supervision prescribed by Bank for International Settlement (BIS), an affiliate of World Bank has provided global regulatory standards for Banks/ Financial Institutions. What are the key objectives? a competitive level playing field for Banks/FIs operating globally Preparing Banks as vehicles of development for the emerging globalize era Healthy competition among countries Adoption of common standards of risk mitigation tools Q.21. What are the Rationale for Bank capital? Capital can absorb possible losses by providing a basis for depositors confidence Banks bailout packages are socially detrimental due to use of tax payers money Q.22. What are the merits of BASEL II over crude Capital Accord I (BASEL I)? Better internal control and governance through supervision and disclosure requirements Q.23. Why was it felt to have a relook at BASEL Capital Accord I? Higher volatility in financial market across the globe Significant degree of financial innovation

 Collapse of Barings PLC, a 233 year old British Bank in February 1995 Capital Base of Banks did not match with their true risk profiles Global financial crisis, 1997 (Russian crisis 1998) Q.24. Why BASEL III calibrating the global standards for capital adequacy and Liquidity in 2010 were necessitated? Mainly to avoid another financial crisis increase Loss absorbency capacity of Banks increase Liquidity Coverage Ratio (LCR) of Banks increase Net Funding stable Ratio (NFSR) of Banks Q.25. Frauds in Retail Banking space can be mainly attributed to Lack of core competency to detect fraud Shallow supporting Credit data Lack of culture of credit risk profiling System deficiency Legal remedies Absence of institutional machinery for Retail Risk pooling Q.26. Which financial ratio is a better indicator of risk? Debt Equity Ratio (DER) Q.27. What are the sources of Operating Risks in Banks? People Process Technology Force majeure events Q.28. Corporate Governance standards were advocated /prescribed in the aftermath of large scale corporate scands in USA. Who recommended the standards? Sir Adrian Cadbury Committee (1992) Sir Richard Greenbury Committee (1999) Ronnie Hampel Committee (1998) Blue Ribbon Committee (1999) Nigel Turnbull Committee (1999) Q.29. Why do you feel you will be useful to the organization? Ans. Sir, throughout my academic/professional career I have been sincere, dedicated and committed to my goals. My set of softer skills of communication, motivation, team

building, negotiation and counseling have been enabling factors for me to deal with varied temperaments of different situations. I have demonstrated my sincerity in completing whatever tasks have been assigned to me from time to time. I am confident that I will prove to be an asset to any organization that acquires my services. Q.30. Why do you feel that you deserve placement in our Bank? Sir, placement in your esteemed Bank will be a definite recognition of my academic and professional acumen. During the last two years of my management course I have kept myself abreast with the changing face of global Banking. The role of the Banks as torchbearers of development process of the countries and particularly in reaching out to the socially deprived class have impressed me the most. I am committed to making my career in banking. Sir, given an opportunity, I will contribute my best to the all-round growth of the Bank. Q.31 What are your strong points? Grounding in management skills with specialization in finance/marketing/HR etc Dedication and commitment to work performance Strong numerical ability Strong zest and zeal, Ability to work under pressure Tremendous patience Team spirit (set of Complementary skills) Leadership skill Ability to handle multiple tasks Punctuality and time management

Q.32. What are your weaknesses? I always try to achieve perfection in whatever I do Over-seriousness. Sometimes I find it difficult to delegate to others knowing fully well that delegation divides the load I tend to expect others to work as hard as I work

Q.33. Why Gujarat is ahead in development perspective vis--vis other states? Priority on economic infrastructure growth like road, port , airport, power , telecommunication , water utilities which contribute to development of the state Strong NRI base Government initiative to invite private entrepreneurs from any part of the world through programmes like Vibrant Gujarat. Rich endowment of natural resources like minerals, agricultural resources, petrochemicals, water resources, the state is progressing industrial growth and employment generation

Long stretch of coastline facilitating port sector growth Strong entrepreneurial vision

Q.34. What are the strengths of Gijarats Economy ? - minerals, petrochemicals, agricultural resources, marine resources Q.35. If you are appointed as Chief Minister of Gujarat , what will be your top priority ? Sustained drive for infrastructure development of the state Make Gujarat a model for other states to follow Industrialization which creates employment opportunities and leads to the economic use of the rich resource endowment of the state Development of eco-tourism where the state has great potential Development of higher education , skill building and health services for the masses Reorient the state administration for the development purpose Use the potential of the Banks and financial institutions to play a pro-active role

Q.36 If you are promoted as Deputy General Manager, which Department will you like to be posted ? Sir , I am indifferent as to the Department to which I may be posted . I will continue to exhibit superior work performance in any Department that acquires my services. Q.37 If you are posted to a hardship center in say Jharkhand , will you go ? Sir, I am already working in a hardship center. I have no preference for any particular center . I am willing to go to any center as per Banks convenience. According to me there in no hardship center . Hardship , if any will strengthen my abilities . I am prepared to go to any place in the country. Q.38. What changes would you like to bring in IDBI Bank ? Sir , IDBI Bank is already having extensive presence throughout the length and breadth of the country. IDBI is already a household name . I would like IDBI Bank to have - more rural penetration - acquire critical mass by way of branch network through organic/inorganic growth - better visibility of the channels especially branch channels - customer-centric product mix - Staff to be innovative in predicting customer needs and seizing market opportunities

Q. 39. Are women suitable for banking jobs which require hard skills now a days ? Sir. In a globalized environment , women better fit into the white collar jobs in Banks . Women by virtue of their set of softer skills are able to match the customer sophistication of the emerging scenario. Many of the foreign banks and new generation private banks are seen to be recruiting more women employees as women score over men in catering to the emerging banking needs. Q.40. What value have you learnt from your mother ? Sir , mother is my first teacher . I have learnt the basic values of life from her. She was in Government service . The way she was balancing her work and life without compromising her role as home maker as well as in her official responsibilities, had a deep impact on me. By observing her kitchen, I learnt the basic management skills. Her skill in building children and at the same time catering to the emotional needs of her in-laws was exemplary. Q.41. What is your goal in life ? Sir, to excel as a professional, especially in banking and financial services. I strongly intend to do something for the poor and marginalised class of the society. Now a days banks are called upon to play a dynamic role in socio-economic upliftment of the masses. I cherish to take forward the message of financial inclusion for the greater good of the people in the North-Eastern region. Q.42. Why did you pursue management as your curriculum ? Sir, management had great appeal to me as the subjects have relevance to day to day affairs of the individual as well as the society and the country at large. Individuals, societies and countries are engaged in a large variety of trade and commerce activities in an exchange economy to maximize human welfare. Trade is the engine of economic growth. I took up management as my curriculum to keep myself abreast with the latest in management to optimize welfare of the society. Q.43. What was your choicest subject in Management ? Sir, Personnel Management was my choicest subject and area of specialisation. In the present day environment, Personnel Management function is known as Human Resources Development which is a strategic function of a corporate entity. Human Resources Development function encompasses, acquisition of human resources(recruitment), utilization of human resources by their proper placement (posting of people to various functional areas), preservation of human resources through salary and incentive administration and development of human resources through training and career advancement opportunities. I have a natural liking for HR function.

Q.44. How is your knowledge being used in IDBI Bank? Sir, I find my knowledge of management directly relevant to my desk in the bank. My management background helps me to grasp and appreciate the corporate banking function. Accounting , business law and financial managementhave direct relevance to the day to day corporate banking activities. Knowledge of marketing helps me to market banks products in a competitive market environment. Knowledge of management has been very handy for my functional efficiency in the bank especially in MCG. Q.45. You are working as Cash officer . If I send a bearer cheque with my dog to the bank , will you pay as bearer cheques are always bearer cheques ? Sir,Though bearer cheques are always payable to the bearer and necessary protections are afforded to the paying banker , looking to the Indian Laws, no prudent banker will effect cash payment to the dog because the dog cannot acknowledge payment of cash. This may happen in UK where laws are very stringent but not in India. Q.46. Suppose a customer gets angry and slaps you , how will you handle the situation ? Sir, the customer is no wrong. We are in business today because of customers. Customer is the king. If the customer slaps me, I will try to analyse the circumstances which prompted him to slap me whem I am in the bank to help him. If the dog bites us we will not bite the dog.There will not be any dent to my commitment to excellence in customer value creation. I will make the customer realize his mistake. Rather this will be an opportunity to deepen my relation with him. Patience ultimately pays. Q.47. What role do banks play in the economy? Sir, Banks in India have been a part of the development process. The special role played by banks can be summarized as under. - Asset Transformation collecting deposits which are unproductive and giving loans for creation of productive assets of the economy - Banks have definite information cost advantage which individual depositors donot have - Money transmission as per monetary policy - Credit allocation as per priority sector lending policies - Intergenerational wealth transfer father depositing money in daughters name - Payment system(RTGS)

- Denomination intermediation I have Rs.5000. I may not be able to subscribe to a bond of face value Rs.1,00,000. Mutual funds as a financial intermediary can pool together small savings and participate in high value denominations. Banks intermediate between small savers and entities issuing high denomination instruments. Q.48. Whether you like back office job or front office job? Why? Sir, I like challenging job assignments. Front office jobs will offer opportunities to interact with customers and develop my people handling skills. Front office is a marketing function. I want to excel in that function. Q.49. What are the functions of Ralationship Managers in Banking? Customer Relationship Management (CRM) is an innovation of the present day banking where the bankers are increasingly required to market themselves. The real challenge is to attract the customers, retain the customers and translate the small value customers to high value customers. The Relationship Managers nurture existing relationships, deepen the relationships and and create new relationships. Q.50. How do you differentiate IDBI Bank from other PSU Banks? In the liberalized environment, when the development financing institution model failed in India, IDBI was forced to convert itself into a universal bank in keeping with the sweeping changes in the working environment. But as a new generation universal bank IDBI Bank exhibits the characteristics of private sector efficiency with public ownership. The continues play role of a development bank with infrastructure financing on top of the agenda. The Bank is a financial super market offering a basket of products to suit the diverse needs of the customers in the wholesale as well as retail segments. With Government holding at 65% , IDBI BANK has a better competitive edge compared to other PSU banks. Q.51. What is your Hobby ? Writing poems, Gardening, Reading, Outdoor games, Stamp collection etc Q.52. Name two women Deputy Governors of RBI . Smt Usha Thorat;Smt Shyamala Gopinath. Q.53. Name a few high profile successful women executives in corporate sector especially in banking sector. Smt .Naina Lal Kidwai;Smt Chanda Kochhar;Smt Indra Nooyi, Ms Sikha Sharma

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Q.54. What are CRR and SLR ? CRR:A certain percentage of demand and time liabilities to be deposited by every bank with RBI;SLR:A certain percentage of demand and time liabilities to be held in liquid investments and approved Government of India securities. Q.55. What are the names of the Central Banks of India, UK,USA ? RBI , Bank Of England , Federal Reserve respectively. Q.56. What is financial inclusion ? Sir,The spirit of financial inclusion is to bring un-banked and under-banked areas and people to the banking fold. Banks, both in developed and developing countries, have realized that reaching out to the poor and marginalized is profitable. There is a slogan that Poor are bankable and rural banking viable. Recommended by a committee under the chairmanship of Mr. C Rangarajan , former Governor of RBI in 2006 , financial inclusion is taking deep roots to reach the message of banking to the lowest strata of the society. Q.57. What do you mean by microfinance? Sir, the world of microfinance refers to banks extending small loans to borrowers without bank accounts and credit history. Having achieved widespread recognition as a development tool, microfinance has been promoted by many national government and multilateral agencies eager to bridge the financial inclusion gap. Microfinance is seen as an opportunity to help people get out of poverty in a business way, not to make money out of poor people. Q.58. What are the various financial markets? Capital market primary market (IPOs) and secondary market (Stock ExchangesBSE and NSE) . It is regulated by SEBI. Equity Shares, Preference shares, debentures ,bonds etc. are capital market instruments. Money Market basically inter-bank market is regulated by RBI. Money market instruments are call money , notice money , commercial paper, certificate of deposit, treasury bills ,bills discounting etc. Discount Market Derivative market swaps , options, futures and swaptions are instruments Commodity Future Market metals, agriculture goods , power are traded. NCDEX , Power Exchange are examples of commodities exchanges. Forward Markets Commission regulates these exchanges.

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Q.59. What are the initiatives being taken by Government for development of Assam? Rs.31000 crores was allotted from PMs fund in 2008 for development of better road and rail links and other infrastructure development Rs.550 crorse was allotted for rural electrification of villages in border districts Initiative insetting up of hydel power, gas-based power plants and gas-cracker project in different parts of the state for infrastructure development Focussed attention on agriculture and rural development for employment generation Institution building for sustainable development of the state Development of N-E Air corridor for Airlines to increase operations Higher education and skill development for employment opportunities Dedicated policies for development of the state with focus on people centric policies aiming at empowerment of the people and self governance. Rs.17000 crores allotted for development of an Integrated transport comprising inland waterways , road and port facilities and dedicated rail connectivity with Bangladesh. Thrust on development of agro-industries( bamboo, wood grass) Development of ecotourism for employment A number of projects are being thrown to private sector under PPP model for infrastructure development. NEDFi is being positioned to play a proactive role in interacting with both domestic and international financial institutions for development of the state by harnessing local resources and create synergy between Govt and lenders. A number of Hydro-power units are being promoted as the state has potential

Q. 60. What is the difference between BPLR and Base rate? Why Base rate was introduced? After deregulation of interest rates in mid-1990s, RBI advised the banks to introduce Board approved Bench Mark Prime Lending Rates in 2003 to act as bench marks for pricing of loans. The BPLR is arrived at taking into account all inclusive cost of capital, regulatory cost for CRR and NPA provisioning, operating expenses and profit mark-ups. However, banks in a competitive landscape in their eagerness to attract customers have been lending at rates much below the BPLR. AAA rated companies are able to raise funds from the market at rates much lower than the cost of funds of the banks BPLR is meant for prime borrowers. Effectively, sub-prime borrowers who can not raise money from the market are forced to borrow from banks at higher rates. Since BPLR frame-work has not stood the test of time, RBI directed banks to switch to Base Rate with effect from July 01, 2010 so that no Bank can lend at rates below the base rate. The base rate system was necessitated by the failure of the earlier BPLR system to produce transparency in lending rates as well as its inability to effectively transmit

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monetary policy signals from the central bank. Banks will determine their actual lending rates on loans with reference to the base rate and by including such other customer-specific charges as considered appropriate. With the introduction of the base rate system, all category of loans will be prices only with reference to the base rate with a few exceptions. However, currently RBI permits dual rates i.e BPLR linked loans will continue till reset of interest rate or the closure of the loan or the customer voluntarily accepts base rate. Though bankers are insisting for a sunset clause for switching from BPLR to Base rate, RBI, keeping in view its role as the watchdog of the financial system, is not agreeable to the demands of the banks. Currently BPLR of IDBI Bank is 13.25% and Base rate is 8%. Q.61. What is Fund Transfer Pricing(FTP)?What are the advantages? Aggregate indicators like Net Interest Margin (NIM), Return on Assets (RoA), Return on Net Worth (RoNW), Cost of funds and Yield on assets are inadequate to identify individual sources of profit and loss. FTP is mechanism to calculate net income at individual deal, client, product, segment, branch, regional level. In FTP an internal price is explicitly assigned to each deployment and funding. The internal price represents the internal value/cost of the transaction on the value date. In other words, FTP is the engine to decompose the aggregate margin into various operating groups who have contributed to the margin. Every deposit raised/funds lent are internally priced based on FTP for the corresponding maturity and remain logged till maturity. Net Interest Income (NII): o For Deposit = FTP on deposit less actual rate paid o For loans = Actual return on loans less FTP on loans Business units performance is judged by NII and risk adjusted NII. NII on deposit + NII on Loans + NII on Investments + NII of Treasury = Banks NII. Advantages: Appropriate Pricing of assets and liabilities Enables business focus: encourage product/segment/business line which are more profitable and discourage which are less profitable Business guidance to operating units are directed through a single parameter i.e Transfer Price Performance measurement of product/segment/unit Transfers non-transaction related risks like interest rate risk, portfolio credit risk etc to central ALM unit /CRMG Operational units focuses on their respective functions to maximize their Net Income Formulation of incentive structure based on objective assessment of performance.

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FINANCIAL STATEMENTS AND RATIOS Q.62. What does a Balance Sheet represent? A Balance Sheet depicts the financial position of an entity as on a particular date. It shows assets owned and liabilities owed as on a particular date. Q.63. What does a P & L statement represent? A Profit and Loss Account shows the operating performance of an entity during a period of time i.e whether an entity has earned profit or incurred loss. Q.64. What does a Cash/ Fund Flow statement represent? A Cash/Fund flow statement shows where from cash/funds have come and where gone during a period. It shows sources and uses of cash/funds from operations, investment and financing activities. Q.65. Define Net Worth or Equity. Net worth is defined as what remains after outside liabilities are paid off. It is also defined as total of tangible assets net off outside liabilities. Total of share capital plus reserves minus intangibles also is called Net Worth or Equity. Q.66. What do you mean by Leverage or gearing? Leverage , an American concept or gearing , a British concept , refers to mix of debt and equity funds. It is a relationship of borrowed funds to owned funds. Owned funds or equity are costlier than debt or borrowed funds as interest on debt funds are tax deductible and dividend on equity is an appropriation of profit. Q.67. What is difference between Reserve and Provision? Reserve means any amount written off or retained by way of providing for depreciation, renewal or diminution in the value of assets or retained by way of providing for any unknown liability I e. that part of profit which is set aside for any unknown liability. It is an appropriation of profit. Practically reserve is an undistributed profit retained just to provide for any liability or prospective losses. Reserve may be capital reserve, general reserve, specific reserve or secret reserve. Provision means any amount written off or retained by way of providing for depreciation, renewals or diminutions in the value of assets or retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy. Provision is a charge against profit i.e Profit and Loss account should be debited for this purpose and the

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same is created for a known liability as well as known reduction in the value of an asset which cannot be ascertained properly.

Q.68. What are intangible assets? Intangibles but valuables like Goodwill, Patents, Copy wrights and fictitious assets like miscellaneous expenses not written off , Business Loss or Deferred Revenue Expenditure like Research And Development expenditure. Q.69. What is the difference between cash flow and fund flow statements? Cash flow is basically a statement that shows the movement of cash during the year. This is on actual cash/bank transaction basis. It takes the opening cash balance, adds all cash inflows and deducts all cash outflows to arrive at closing cash flows. The objective of the cash flow statement is to know where from cash was generated and where applied during the year. Fund flow statement on the other hand discloses the movement of funds during the year. This is based on balance sheet basis where all increases/decreases in assets and liabilities are considered whether on cash basis or credit basis. In this statement the overall increase/ decrease in the total volume of working capital is only considered. The objective of the fund flow statement is to know the increase/decrease in assets and liabilities i.e where from funds come and where gone. Q.70. What are contingent liabilities? Liabilities which are contingent to happening of certain events, are called contingent liabilities. Deferred Payment /Loan Guarantees , Under Writing Commitment and Letter of Credit contingent liabilities till devolvement after which these become contingent assets. Q.71. What is the difference between Financial Accounting, Cost Accounting and Management Accounting? Financial Accounting: is a process and set of procedures for recording summarizing, classifying, analyzing and reporting financial transactions. Financial accounting is concerned with preparation of Balance Sheet, Profit and Loss Account and Cash Flow Statement of the entities indicating the financial position as on a particular date, the operating results during a period of time and where from funds have come and where gone during the period. Cost Accounting: The technique and the process of ascertaining the amount of expenditure incurred in or attributed to particular products, processes or services. This involves collecting, classifying, processing and analyzing costing data either for product costing or cost control/reduction purposes. Management Accounting: The application of financial accounting and cost accounting data to generate information to aid managerial decision making in its functions or promoting maximum efficiency and in formulating and coordinating future plans and subsequently in measuring the efficacy of their execution.

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Q.72. What is capital adequacy Ratio? What is the rationale for capital? Risk-Adjusted Capital Adequacy Ratio(CAR), a regulatory measure prescribed by BASLE , Switzerland based Bank for International Settlement(BIS), an affiliate of the World Bank in 1988 is originally known as Capital Accord I . BIS is the Central Bank of the Central Banks of the member countries. Governors of Central Banks are members of BIS. Capital Adequacy Ratio establishes a relationship between capital funds on the liability side and risk-adjusted assets on the asset side of the banks balance sheet and requires banks to mandatorily adhere to internationally accepted minimum capital standards to contain risk. The rationale for capital adequacy are given as under: Expected losses are to be covered by earnings and provisions and hence need to price risk appropriately Unexpected losses or losses beyond normal range of operations have to be met by capital. Capital Adequacy Ratio as a regulatory measure scores over the conventional Debt Equity Ratio(DER) followed by RBI due to the following: CAR is a holistic measure as it links capital fund on liability side to assets on the asset side of the balance sheet unlike DER which took into account both debt and equity from liability side only ignoring asset side altogether It takes into account the quality and composition of the assets on the asset side by attaching risk weights to various category of assets It takes into account off-balance sheet exposure items like Deferred Payment/Loan Guarantee, Under-Writing commitments and Letter of Credit by attaching proper risk weights as banks in their eagerness to earn fee based income take huge exposure in off-balance sheet items. Rationale for thrust on capital of Banks are as under: Capital is a key factor to assess safety and soundness of a bank Adequate capital serves as a safety net for a variety of risks to which an institution is exposed in the course of its business Capital absorbs possible losses , thus providing a basis for depositor confidence in the bank Capital determines the maximum level of assets (loan) of a bank. Q.73. What is Basel Capital Accord I / BASEL II/ BASEL III norms ? What is the rationale? Capital Accord I In the midst of the progress towards unregulated banking and the internationalization of financial markets, based on the Cooke Committee recommendations in 1988 , BIS introduced Basel Capital Accord I which prescribed each bank operating in international market to maintain capital equal to 8% of the risk adjusted assets initially to contain credit risks. In 1996 , the initial accord was extended to include market risk. The capital accord is an international unified standard prescribed with the following three objectives: i) To increase stability of the international banking system and harmonize competitive conditions between banks ii) To strengthen the capital bases of the banks which were deemed to be too low

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iii) To restrict both on and off balance sheet activities However, RBI as an added precaution required the Indian Banks to graduate to a level of capital equal to 9% of the risk adjusted asset phased over a period of time. The total capital would comprise of Tier I and Tier II capital as under: Banks Capital I ------------------------------------Tier I capital Tier II Capital - Equity share capital - Revaluation reserves - Reserves created out of - Provision and loan operating profit and loss reserves disclosed in the Balance Sheet - Perpetual non-cumulative - Subordinated bonds preference shares - Hybrid capital instruments Tier II capital can be upto 100% of Tier I capital Basel Capital Accord II Objectives: To realign banks capital with risk profile (bridge economic capital with regulatory capital) Unlike Capital Accord I which concentrated entirely on capital , need was felt to strengthen internal control and governance of the individual banks To set universally recognized standards to replace crude minimum capital of 8% for a weighted bundle of banks credit risks devised in 1988 To ensure better safety and soundness of the financial system Need to have a re-look at the Capital Accord was necessitated due to the following: Volatility of the financial markets Significant degree of financial innovation Collapse of the Barings plc, a150 year old British Bank in 1995 Financial crisis (Asia 1997) and (Russia 1998) Risk for internationally active banks have been complex Fear that capital requirement did not match a banks true risk profile

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BASEL II 3 Pillars

Minimum Capital Requireme nt

Supervisory Review Process - A system of dialogue between banks and supervisors on the ground that not even the most elaborate rules in the Pillars I can deal with the peculiarities of each institution.

Market Discipline - To ensure that the investors, depositors and supervisors are not blinded by science, there is a set of public disclosure

requirement.

Weighted Risks

Definition of Capital

Credit Risk

Market Risk

Operating Risk

Standardiz ed Approach (SA)

Internal Rating Based Approach (IRBA)

Foundation IRB

Basic Indicator Approach

Standardiz ed Approach (SA)

Advanced Measuremen t Approach

Advanced Approach (AIRB)

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Basel Capital Accord III In the aftermath of global financial crisis, central bankers and bank regulators from across the globe met at Basel on September 12, 2010 and reached a deal on new capital rules known as BASEL III in an effort to create a more stable financial system and ensure that the interconnected global banking system does not face another crisis such as that which led to tax payer funded bailouts in 2008 and 2009. The BASEL III agreement was reached in Switzerland by central bank governors and top supervisors from27 countries after a year of horse-trading and lobbying that involved banks and governments seeking to protect their national interest.The accord requires the banks to hold basic levels of top-quality capital known as common equity equal to at least 7% of the banks risk adjusted assets. The new capital ratio represents a substantial increase from the current requirement of 2% with a phase-in period extending in part to January 2019 ( 4% threshold imposed on US banks after the 2009 stress test). The 7% component is expected to include a 2.5% conservation buffer of capital. If capital levels at a bank dipped below this buffer, it could face tighter restrictions on its dividend and executive compensation policies. On the other side of the spectrum, banks whose capital cushions exceed the new requirements are likely to face pressures from analysts and investors to start repurchasing shares or raising dividend payments, The banking industry apprehends that tougher capital requirements may force it to curtail lending as banks keep more money in reserve, a move that could take a toll on shuttering economies in the developed world. Q.74. What are prudential guidelines? Income Recognition Asset Classification Provisioning Risk-adjusted Capital Adequacy Transparency and Disclosure Exposure Limits to individual companies/groups Compliance of Know Your Customer(KYC) Norms Compliance of Anti-Money Laundering(AML) Guidelines Q.75. Definition and rationale of Debt Equity Ratio, Current Ratio, Quick Ratio, ROI, DSCR, FACR, Break Even Point, NPV, IRR, EPS, P/E multiple. Long Term Debt Debt Equity Ratio = ---------------------Equity or Total Outside Liabilities (TOL) -------------------------------------Equity

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Debt Equity Ratio indicates the financial condition or financial health of the entity. It indicates long term solvency of the firm. It is an indication of risk to the banker as debt is a contractual liability carrying fixed rate where as equity has ownership interest with no mandatory obligation to pay dividend. Current Assets Current Ratio = --------------------Current Liabilities Quick Assets(CA inventory) Test Ratio = -------------------------------------Current Liabilities

Current ratio and quick ratio are liquidity measures and indicate liquidity or short term solvency i.e ability to meet short term or immediate obligations. Return (Gross Profit Depreciatio) Return on Investment(ROI) = -----------------------------------------Investment(NFA+CA+Investment +FLR) FLR = Future Lease Rental Receivable ROI indicates the earning power of the assets. Net Profit+Depreciation+Interest+Lease Rental Debt Service Coverage Ratio = --------------------------------------------------------Instalment of Principal + Interest+Lease Rental Debt Service Coverage ratio (DSCR) indicated the debt service capacity of the borrower. DSCR indicates how many times the available funds from operation provides a cover for debt obligation . It is a ratio of availability and obligation. Net Fixed Assets Fixed Assets Coverage Ratio (FACR) = -------------------Long Term Liabilities FACR indicates the security cover for the term liabilities i.e How many times the net fixed assets provide a cover of security for the term liabilities. Security Margin indicates excess of net fixed assets over long term liabilities as a percentage of net fixed assets. Net Fixed Assets Long Term Liabilities Security Margin(%) = ------------------------------------------------Long Term Liabilities Break Even Point(BEP) is the level of activity at which there is no profit or no loss .BEP is the level of activity at which the unit starts earning profit . Fixed Cost BEP = ------------Contribution Fixed Cost Operating Break Even Point = ------------------------- X Capacity Utilisation % Contribution per unit

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Fixed Cost - Depreciation Cash Break Even Point = ------------------------------- X Capacity Utilisation % Contribution per unit Cash BEP is the level of activity at which there is no cash profit or cash loss i.e profit or loss without taking into account non-cash items like depreciation and amortization of miscellaneous expenses. Net Present Value (NPV) Total of future cash inflows net off cash outflows discounted at the cost of capital. Internal Rate of Return (IRR) Internal Rate of Return is the discount rate at which NPV is zero. It is otherwise known as Break Even Yield or DCF yield or marginal efficiency of capital. IRR is the minimum desirable rate of return from the view point of stake holders who are internal to the project. Earning Per Share(EPS) EPS is generally considered to be the single most important variable in determining the companys share price. It is also a major component used to calculate the P/E valuation ratio. Net Profit Dividend on Preference Shares EPS = ---------------------------------------------------Average Outstanding Shares EPS serves as an indicator of companys profitability. P/E Multiple Market price per share P/E multiple = --------------------------Earnings per share P/E multiple shows how many years earnings are reflected in the market price and indicates the investors confidence in the management of the company. Q.76. What are the potentials/promises/advantages of Retail sector to IDBI ? A. Retail sector has huge potential for IDBI Bank in the present juncture. The following are the major perceived benefits. - Retail sector will help in increasing the share of high yielding assets/advances - Huge potential for fee based income - Help in pushing up the share of low-cost CASA - The sector will enable volume growth in business as there is shrinkage of normal corporate advances due to financial disinter mediation and competition from market

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(Larger corporates with strong balance sheet tapping market directly for their funds requirement due to better visibility and cheaper resources) - The sector offers potential for risk diversification due to volume growth and the consequential savings in capital which otherwise would have been provided to contain risk Q.77. Indian Banks including Foreign Banks are looking at Retail sector as a thrust area. Is it because the Banks have to comply with the priority sector target? A. No, as loans to corporate sector no longer seem lucrative, the Retail segment is emerging as a promising business segment for Banks. No longer are the Retail advances considered only for meeting priority sector requirement. Banks both in the public as well as private sector are chalking out strategies to strengthen their presence in this sector because of the following. - Small retail loans help Banks to spread credit risks through diversification of asset base - Retail loans provide opportunity for fee based income as predominantly Banks provide working capital facilities in the nature of cash credit, overdraft and bill discounting apart from non-fund based limits like Letter of credit, Bank guarantee and foreign exchange limits - Also there is scope for low cost funds through CASA growth - The external collaterals are easy to obtain - Mostly assistance is provided based on intimate knowledge of the past financials, Size, net-worth, resilience, the counter parties with whom they are trading, the current growth trajectory and the management record - Banks explore opportunities for trade finance, cash management services, forex advisory services and venture capital - Credit requirements of Retail sector are often predictable. They are often in need of short term funds at times of a sudden bunching of orders, whenever there is an inventory pile up or when receivables are blocked. Q.78. What are economic merits of Retail sector ? A. -Generates employment opportunities by adopting labor intensive techniques -Wider dispersion of economic benefits -Promotes entrepreneurship -Economic use of available raw material as units are located in close proximity to the source of raw material Q.79. How do you perceive growth opportunities in Retail business in IDBI Bank vis--vis other giants in the Banking space? Despite IDBI Bank being a new entrant to the banking business and facing competitive environment, IDBI Bank perceives huge growth potential in Retail sector which has a promising potential for a developing country like India. IDBI Bank has extensive presence throughout the length and breadth of the country and known for nurturing industry tiny, small, medium,large and mega projects . Forces of globalization offer tremendous growth opportunities in financing small and medium enterprises.

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IDBI Bank has excellent connectivity and relationship with national and international agencies engaged in promoting small and medium enterprises.

Q.80. What are the popular trade finance products? The popular trade finance products include Letter of Credit Guarantee Bills Discounting Pre-shipment/Post shipment Financing Factoring Banks buying credit sales when the buyer as well as the seller are in the same country. SBI and Canara Bank have factoring subsidiaries. Forfaiting Banks buying credit sales when buyer and seller are in different countries. EXIM Bank is now the only forfaitor. Term loan Q.81. Define Globalization. Whether it is beneficial or detrimental to Banking business? Loosely defined, globalization is the convergence of economies and cultures and harmonization of markets and regulations that is gradually turning the world into a single economic and cultural place. Globalization is definitely beneficial to the banking business as technovation (technological innovation) in communication engineering has linked the major business centers of the world offering growing business opportunities to the banks. Q.82. What is your perception of the changing role profile of Indian Banks in the emerging market environment? Banks as financial intermediaries play the following important roles Asset transformation mobilizing funds, which are idle assets in the hands of the depositors and investing in productive industrial assets. Information support - Banks are in a better position to provide information on vital aspects of business by in house Research and Development. Dispersion of funds investing money in those pockets where there is potential for industrial promotion and resource endowment. Intergenerational wealth transfer parents depositing money/taking insurance policies for the benefit of children. Denomination Intermediation Mutual Funds pooling scattered and small savings and investing in securities of higher denominations say for example Debenture having face value Rs.100000 in which small investors cannot invest. Provide a range of advisory and fee based services Contribute to the growth and stability of the financial system by regulating the flow of money in tune with the Monetary Policy. Q 83. You have been in IDBI Bank for a while. What do you know about IDBI?

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IDBI was set up as the apex development bank of the country by an Act of Parliament i.e IDBI Act 1964 to operate in close proximity to the development policy of the country. The predominant functions of IDBI were providing long term loan, coordinating the activities of the banks and financial institutions engaged in lending money to industry and promoting industry and institution building for the financial system .Our entire funds were coming from subsidized sources as IDBI was accorded a special status. IDBI was provided with all necessary protections. Liberalization of macro economic policies and diminution of controls and regulations brought in sea change in our operating environment. To cope up with the changing environment, IDBI was converted into a bank to have critical mass in terms of branch network to mobilize cheaper funds and lend on competitive terms.

Q.84. What are the challenges IDBI Bank faces? IDBI Bank, a new generation bank faces the following challenges. Access to cheaper funds in absence of critical mass i.e branch network Competition in raising deposits and lending money at market rates Trained manpower for retail, trade finance, RETAIL, Agriculture business Attracting, retaining, utilizing and preserving quality manpower in absence of market related salary. Inability to market IDBI Bank as we dont have necessary marketing skills as IDBI was never required to market. Asset Liability Management as the bank mobilizes short term funds through CASA and lends to finance long gestation infrastructure projects. Risk Management credit risk, market risk and operating risk stemming from the hazards of the market economy. Wave of disinter mediation as depositors as well as the borrowers prefer to tap the market directly for better visibility and higher yield/cheaper resources. Q.85. How do you feel the challenges can be translated into opportunities? Organizational redesign in tune with the changing business scenario we have gone for business vertical system to have focused attention on segmental business growth Change in the mind set we have to reinvent ourselves in response to the demands of the time Global scale product design to suit the customers from across the globe Technovation harnessing technology for better product delivery and customer value creation today IDBI is on e-Super Highway offering e-banking , mobile banking , anywhere banking , plastic money , digital cash etc Innovation predicting the customer needs, hearing the unheard and designing products accordingly Service excellence rendering value added customer service to differentiate us in the competitive market scenario attracting , retaining and translating small value customers into high value customers Communication making communication as an organizational culture in translating the vision into action through unified drive 24

Q.86.

Strategic HR Policy focused attention on acquisition of quality manpower, utilization thereof by proper placement planning , preservation and development of human resources through training , market related incentive package , proper retention strategy and talent management Research & Development creating business intelligent groups for sensing business opportunities by interacting with business group across the globe / inviting the business group heads to share their vision at periodic intervals deepening existing relations and mobilization of new relationships Business Mix strategic thrust on diversification into structured financing , retail banking , fee based business and CASA growth What are the areas you know having growth potential for IDBI Bank ? I perceive the following areas to have huge potential for growth. Infrastructure financing-financing of road, port(sea port and airport), power, telecom, water utilities, urban infrastructure projects etc Trade finance Agrifinance RETAIL sector Cluster financing Microfinance Venture capital and Vulture capital Fee based activities project appraisal, merchant appraisal, loan syndication, business reengineering, financial engineering, capital structuring, corporate debt restructuring, forex advisory services, portfolio and wealth management services Banc assurance marketing insurance products of insurance majors. IDBI Bank has the depth of pocket and staying power and unique Balance sheet to compete in the market

Q.87. What transformation have you witnessed in IDBI in the recent past? Originally created as an apex Development Financing Institution (DFI), IDBI acted as a wholesale bank operating in close proximity to the development policy of the country with specialization in provision of long-term finance to industry, coordination of activities of banks engaged in lending to industry, industrial promotion and institution building. IDBI was provided with protection as a part of the business and entire resources were coming to us without any effort. With liberalization and deregulation of macro economic policies and gradual phasing out of protectionism in the 1990s, the operating environment for DFIs underwent seachange forcing them to transform into universal banks. To have critical mass by way of branch network to mobilize cheaper resources and have necessary competitive edge, IDBI Bank and subsequently United Western Bank were merged with IDBI. On recommendation of the business reengineering consultants, IDBI Bank was converted into business verticals ICG, LCG, MCG, RETAIL, AGRI, PBG etc to have focused attention on diversified business growth and customer value creation.

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From total manual operations IDBI has moved into hitech operations -today our entire operations are technology driven IDBI is on e-Super Highway enabling quicker product design and delivery. We have put in place Asset Liability Management and Risk Management practices as part of our strategy to cope up with changing business environment Treasury operations have been centralized with market driven operations Funds Transfer Pricing has been introduced to sensitise the operating departments to the pricing of products so as to optimize NII From statutory regulation we have moved to prudential regulation by way of income regulation, asset classification, provisioning, capital adequacy, transparency and disclosure. Diversification into Life Insurance (IDBI Fortis Life Insurance) and Private Equity to take advantage of the market opportunities Increased customer focus Proactive and dynamic HR policy with focus on induction of fresh talent from the market to supplement the required skill profil

Q.88. Why do you aim to be a Business Analyst? Sir, I aspire to excel as a Business Analyst as I find the role very stimulating and challenging. The present day business demands a blend of Technical Skills, Managerial abilities and Domain Knowledge. During my 2.5 years of experience as a Software Testing Engineer I have worked in almost every aspect of the Software Development Lifecycle. The Software Development Lifecycle comprises of Requirements Gathering, Requirements Analysis, Test Planning, Test Execution and Defect Analysis. Though I enjoy the Test Planning, the Test Execution and the Defect Analysis phase, I enjoy the Requirements Gathering and the Requirements Analysis phase of the SDLC the most. It involves: 1. Thorough understanding of the needs of the clients. 2. Every person in the team can contribute to the understanding of the requirement. Thus showcasing new possibilities and in turn expanding the horizon of understanding. Hence brainstorming during Requirement Analysis. 3. Then documenting the entire process taking into account the minutes of the Requirement Analysis. 4. Conducting a review meeting for sensing the various problems that may arise and attempting cost effective solutions to those problems. 5. Last step would be charting the final course of action which would ensure optimal use of available resources, improve efficiency of operation and ensure the completion of the project on time. Q.89. What are the functions/duties of a Business Analyst? Sir,ultimately the goals of a Business Analyst are

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1. Scanning the entire environment for factors that may affect business and sensing the various problems the enterprises are likely to face and attempting cost effective solutions. 2. To ensure optimal use of available resources i.e men ,money, material and minutes . 3. Ensure that the project is completed as per schedule. Even if the entire project is not completed, the tasks which merit high priority should be completed on the scheduled delivery date. 4. Improve project efficiency by reducing rework. To ensure that there is less of rework. One needs to look at the reason why the defects persist and look at various ways to get rid of the defects etc. Q.90. What do you understand by the concept Business Analysis? Sir,business analysis may broadly be defined as scanning the entire environment in which the business operates for factors that may affect and sensing the various problems the enterprises are likely to face and attempting cost effective solutions. The scope of business analysis may encompass analysing the set of tasks, knowledge and techniques required to identify business needs and determine solutions to business problems. Solutions may include Business Process Reengineering or Business Process Improvement. Business Process Re-engineering or Business Process Improvement may simply be defined as Re-engineering or Improving any existing Business Process so as to ensure: 1. Optimal use of available resources i.e men , money, material and minutes . 2. Project is completed as scheduled. Even if the entire project is not completed, the tasks which merit high priority should be completed on the scheduled delivery date. 3. Improve project efficiency by reducing rework. To ensure that there is less of rework. One needs to look at the reason why the defects persists and look at the various ways to get rid of the defects etc. Business Process Improvement can be achieved in the following ways: o Thoroughly understanding the needs of your client. o Every person in the team can contribute to the understanding of the requirement. Thus showcasing new possibilities and in turn expanding the horizon of understanding. Hence brainstorming during Requirement Analysis. o Then documenting the entire process taking into account the minutes of the Requirement Analysis. o Conducting a review meeting to discuss the problems that would arise and the solution to those problems.

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Last step would be charting the final course of action which would optimal use of available resources, improve efficiency of operation and ensure the completion of the project on time.

Q.91. How would your MBA degree help you in achieving this goal? Sir,todays business enterprises are operating in an excitingly challenging and dynamic environment. The enterprises need man power resources with multi-tasking abilities. To be successful in the emerging scenario, a business analyst requires a complete blend of Technical Skills, Managerial abilities and Domain Knowledge. My technical qualification plus 2.5 years of industry experience as a Software Testing Engineer have contributed in building a strong Technical Background and also introduced me to the Banking Domain. From PGSEM I look forward to getting a good grounding in managerial skills and update my knowledge in the related business areas. I am sure the course would definitely add value to my pursuit of excellence in any organization that acquires my services. Q.92. You have 2.5 years of experience in the IT Industry. With this experience how would you contribute to the MBA classroom? Sir,the classroom is a pool of talent and a wide range of Industry experience ranging from 2 to 14 years. In addition, different individuals bring to the class room their own uniqueness, knowledge and ethnic culture. It will provide an excellent platform for exchange of ideas. Learning by experience sharing amongst such people becomes very enriching. My accumulated experience over the years as a student as well as more than two and half years work experience in an IT major will enable me to interact with the class meaningfully. Each person in the classroom can contribute to my learning process and I can contribute by being an active learner. I have learnt the basic values of life from my family. The class will definitely stand to benefit from the values I have inculcated in my life and the set of softer skills like communication, motivation, negotiation and team building. Q.93. What is the do-one-thing-at-a-time mindset? Sir,the do-one-thing-at-a-time mindset means focusing on a single task at a time. Gone are the days when one was expected to be the Master of a Trade. Today it is not only expected but appreciated if an individual is the Jack of All Trades. Responding to changing scenarios, each one of us has to adorn different hats at different times. Also the transition between the roles has to be done flawlessly and effortlessly. As for me I am playing multiple roles like a daughter, a sister, a team mate, a configuration controller for my team, an ambassador of Infosys at the client location and last but not the least an MBA aspirant. Each role expects me to be a different person at different times. So many responsibilities have brought to forth my Multitasking Abilities, People Management Skills and Time Management Skills. Also I have learnt to prioritise the tasks at hand and harmonise the different roles expected of me. Over all tough and trying times have not only made me more resilient but also brought out the best in me and made me more responsible for my actions.

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Q.94. Give one instance where Multitasking Abilities, People Management Skills and Time Management Skills have helped you achieve your motive. Sir, at each and every step of my life it has been expected of me to showcase qualities like Multitasking Abilities, People Management Skills and Time Management Skills. But it was only recently that I became aware of these expectations. I was in Mumbai, at the client location, for Knowledge Transitions sessions, when I got to know that I have been short listed for the Interview process of the IIMB PGSEM. I had to co-ordinate with my team mate to get the Approval letter signed by my DM. Cordial relations with my team mate made the process absolutely smooth. At the client location I represent my company and its values, primarily I am the ambassador for my company. All eyes are firmly set on how skillfully I perform my tasks and deliver the best. There is no room for mistakes. At the same time I want to fulfill my personal aspirations, hence need to manage time for preparing for this interview without letting it affect my work. Q.94. Traditionally women are judged by their attire, best fit for home making and marriages are their top priority. What will be your comment? Sir,today women by virtue of their softer skills better fit into modern day business environment. Todays women are multitasking by balancing both their personal and professional lives. They should not be judged by their attire but by their multifarious work performance. For women in todays world there is much more to be achieved beyond the realms of marital existence. Women have excelled in the field of white collar jobs.

Q.95. What did you learn as the Vice-Captain of the Girls Baseball team? Sir,the best lesson I have learnt is Success is not permanent and failure is not fatal . United we stand divided we fall . Team spirit and winning edge are valuable inputs learnt during the tenure. There is no limit to the limited potential of a person. We can stretch to any extent as the situation warrants. Inter-school competitions offered a range of exciting events to test our talent and tenacity. Also as Vice-Captain of the Baseball team, it was a terrific experience to build rapport with people from outside our circle of influence.

Q.96. Perfection is an achievement. Why do you consider it a short coming? Sir, achieving perfection is a credo. I always strive to achieve perfection. But the world is imperfect. We have to live with imperfection. We should aim at perfection in our vocation, career, pursuit or obsessive passion. But we should be content with what we achieve within the limitations of available resources. Never the less relentless pursuit of excellence in what we do should be our motto.

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Q.97. There are so many social issues, why did you choose Blood Donation? Sir, I have a deep passion for blood donation because the noble activity has direct link to serving humanity as life saving blood is made available to the needy patients at a critical time. I find a great challenge in this activity. There is poverty amidst plenty. Patients across the globe need blood. But they donot have access to the source and the type of blood available. The blood donors donot know who needs what type of blood at what point of time. I intend to play a critical role to bring the two groups together. I will work with some NGOs to create a Blood Bank , a market for blood where donors and receivers can operate without inhibition. A data base will be created for quick reference and future use which will give instant information about the availability of blood. I intend to work with media to create awareness among the donors the urgency of pronouncing heir oath to serve the humanity at large.

Q.98.What have you done so far to address this issue? Sir,I have started discussion with a few prominent NGOs like Bharat Sevashrama , The Indian Red Cross Society etc to create a data base about availability and type of blood with each Blood Bank and to network the Blood Banks. A few of my friends are working on media planning for blood donation drive in rural areas.

Q.99. Dont you think this issue is being addressed by NGOs like The Red Cross Society. What is the different thing that you would do to create awareness? Sir, the issue is being addressed but there is vast scope for improvement. The facility has not percolated to the village level .I am deeply touched by the plight of the large rural masses in the villages who have been deprived of the basic medical facilities. I feel there is scope for setting up Blood Banks at municipality level with facilty for storage of blood for local use. I propose to organize blood donation camps at municipality level to educate the public.

Q.100. How would the experiences in your life so far help you achieve this noble cause? Sir, I have been eye witness to large infant mortality and delivery deaths in rural areas. I feel timely availability of blood will definitely save many lives. Blood donation campaigns organized in school and college have demonstrated that public are not averse to donate blood. But facilities need be created in close proximity. I feel international agencies like UNESCO, UNICEF etc should be roped in to share their global experiences in this regard. Health services being accorded the status of soft infrastructure, Governments across the globe are initiating proactive measures for wider reach of basic health services.

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Q.101. What are special features and scope of Transaction Banking ? Transaction Banking basically refers to the banking operations which culminate in the transactions in the books of the banks. Under transaction banking commercial banks provide a gamut of innovative and customized solutions to meet the diverse needs of the corporate clients. The range of services include - Cash Management Services(CMS) to corporate and institutional clients helping in payments, collections, information management, accounts service and liquidity management solutions for fee based income - Trade Finance products for import/export operations- opening LC, supply chain financing, document handling etc. - Government Businesses agency business - Capital market services Initial Public Offering(IPO), Follow-on public offer, private placement, Qualified Institutional Placement(QIP), Book-running Lead Manager, GDR/ADR/ECB/FCCB operations etc. - Security services- custodial services, broker-dealer services, funding, valuation reports on portfolio, back office outsourcing etc. Transaction Banking has huge potential for growth. Q.102. What is the advantage/disadvantage of Core Banking System? Core Banking Solution is a departure from branch channel based distributive system to centralized decision making system. Core Banking Solution is basically a technology driven response to the growing market orientation and business growth of banks The major advantages are optimum utilization of available resources, mapping out of products in retail space and prompt response to customer needs. The major disadvantage is inability to provide personalized service to specific segment of the customers. Q.103. Now IDBI Bank is working with different business verticals. What are the advantages/disadvantages ? In a fiercely competitive environment, to provide focused attention to business growth and customized solutions to different business segments, business verticals were created. As the Indian economy is growing and the banking needs are emerging, the banks have to suitably realign their operations to effectively respond to the challenges. Our verticalization is a response to competitive banking landscape and the sweeping changes in the operating environment. Q.104. Banks in India are increasingly resorting to Trade Finance. What are the prerequisites for Trade Finance operations? With globalization of business, countries with differing resource endowments are increasingly resorting to trade to optimally utilize the resources and increase gains and enhance welfare. Foreign trade is the engine of economic growth. When the trading operations of a country grow, bankers perceive huge business opportunities fund based as well as non-fund based, preshipment and post-shipment financing, LC discounting, remittance, payment, collection etc. The following are necessary for active trade finance operations: - dedicated talent pool conversant with trade finance operations - knowledge of Uniform Customs and Practices (UCP) - knowledge of FEDAI Rules - web-enabled technological platform to provide leading edge trade solutions

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suite of trade finance products networking and correspondence relationship with banks in different countries an active treasury

Q.105. 10 Point recipe for success. i) ii) iii) iv) v) vi) vii) viii) ix) x) Dream A dream of becoming a successful professional and strategy to execute it Values Enduring success is always built in strong foundation of values you stand for Zest & Zeal Never lose your zest & zeal for earning Excellence Passion for excellence pays Self Confidence Build self-confidence Team Spirit Ability to become an integral part of a cross culture team is necessary Take care of yourselves Ability to handle stress and deal with emerging challenges Perseverance Perseverance can make miracles happen Be innovative and have a broader social vision. Never let success go to your head. Maintain a sense of modesty and humility.

Q.106. On completion to MBA you are appointed as Chief Executive Officer of a growing company. Spell out your action plan. Entrepreneurial Vision Foreseeing and acting on opportunities Seeing value where others miss it Taking Risk as per companys risk appetite Seize first mover advantages Unlocking the potential of the people

Thrust on Growth Both profitable and sustainable A means to delivering value and not an end in itself Prosperity and increasing the quality of the life of people.

Achieving Excellence Timely completion of projects within time and cost budget Optimizing the use of assets Striving to be lowest cost producer Sourcing cheaper resources

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Building Trust Always acting in a competent and responsible manner Building a culture of mutual respect based on trust across all stakeholders i.e. investors, employees, suppliers, customers and community at large

Sustainable Development Meeting the needs of the present generation without compromising the needs of the future generation. To be an integral part of business philosophy. Providing safe and healthy working environment. Use of environment friendly technology. Concern for socio-economic development of the community.

Q.107. As new age business manager, what are the major challenges you foresee? Keeping pace with continuously changing business environment Cut throat competition Working with cross cultural teams Meeting deadlines and targets Often have to make do with limited recourses Blend knowledge, skills, ambitions and experience of a diverse work group Success depends on others work performance. Information overload Do hard work Energizing and motivating team May have duties that are more clerical than managerial.

GOOD LUCK

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