Session 1 1.

CASA Ratios for Kotak, HDFC, Yes The CASA (current and savings account) ratio is the ratio of deposits in the current and savings accounts of a bank to its total deposits. A high CASA ratio indicates that a higher portion of the banks deposits come from current and savings accounts. This means that the bank is getting money at low cost, since no interest is paid on the current accounts and the interest paid on savings account is usually low. According to 3QFY12 Results Update, Kotak Mahindra Bank's CASA ratio improved to 27.7% from 25.7% on account of healthy 24% QoQ increase in savings bank balances boosted by high interest rates offered on savings bank deposits post deregulation of savings bank rates. For HDFC Bank, CASA ratio remained the best in the industry at 52.7% (51% after adjusting for one-offs). Yes Bank has a CASA ratio of 11% at Rs 4,839 crore. 2. Ownership of cooperative banks The Co-operative Bank is not itself a true co-operative as it is not owned directly by its members, but by a holding company which is a co-operative, it is wholly owned by Co-operative Banking Group, whose sole shareholder is the (member-owned)Co-operative Group. Its customers may, however, choose to become Co-operative Group members and hence indirectly acquire an ownership interest in the Bank, earning dividend on their account holdings and borrowing with the Bank. Cooperative banks are owned by their customers and follow the cooperative principle of one person, one vote. They are often regulated under both banking and cooperative legislation. They provide services such as savings and loans to non-members as well as to members, and some participate in the wholesale markets for bonds, money and even equities.Many cooperative banks are traded on public stock markets, with the result that they are partly owned by non-members. Member control is diluted by these outside stakes, so they may be regarded as semi-cooperative. Local branches of cooperative banks elect their own boards of directors and manage their own operations, but most strategic decisions require approval from a central office. Principles 2-4 of the "Statement on the Co-operative Identity" can be interpreted to require that members must control both the governance systems and capital of their cooperatives. A cooperative bank that raises capital on public stock markets creates a second class of shareholders who compete with the members for control. In some circumstances, the members may lose control. This effectively means that the bank ceases to be a cooperative. Accepting deposits from non-members may also lead to a dilution of member control. 3. Can life and medical insurance be offered by same company? Composite insurance is not allowed in India. However it is allowed in some countries. 4. Who does financial planning for ultra NHIs (likes of Ambanis)? Family Offices for ultra-HNIs. They are dedicated to a particular family. Single and multiple 5. Who currently manages the original Standard Chartered MF? Standard Chartered MF is being managed by Infrastructure Development Finance Corporation (IDFC).It acquired the Standard Chartered Mutual Fund for $205 million having around Rs.14000 crore in assets of which Rs.4000 crore was in equity while rest was in debt. Standard Chartered continues to distribute mutual fund products but does not manage funds and focuses on consumer and commercial banking. 6. What is the ABN Amro MF called now/who manages it? ABN Amro MF is now known as BNP Paribas Mutual Fund.

BNP Paribas Asset Management India Private Limited has been appointed as Asset Management Company of BNP Paribas Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated February 15, 2011 executed between BNP Paribas Trustee India Private Limited and BNP Paribas Asset Management India Private Limited. ABN AMRO Asset Management had undergone a global integration with Fortis Investments in the second quarter of 2008 and its name changed to Fortis Mutual Fund. Fortis Mutual Fund then informed that subsequent to a global restructuring of Fortis Group, Fortis Investment Management is now a part of BNP Paribas. There has been an indirect change in the control of Fortis Investment Management and Fortis Trustee. Consequent to this change, Fortis Mutual Fund shall be renamed as BNP Paribas Mutual Fund; the AMC shall be renamed as BNP Paribas Asset Management and the Trustee Company shall be renamed as BNP Paribas Trustee India Pvt Ltd. As a part of the internal re-organization within the BNP Paribas group, BNP Paribas Investment Partners S.A., 99.83% owned by BNP Paribas, acquired 100% of the capital and voting rights of Fortis Investment Management NV/SA (FIM) from Fortis Bank SA /NA (84.67%) and from BGL BNP Paribas (15.33%) in cash on April 01, 2010.

Session 2 1. Question related to KIM (Mutual Fund) The Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the scheme/Mutual Fund, due diligence certificate by the AMC, Key Personnel, investors rights & services, risk factors, penalties & pending litigations etc. investors should, before investment, refer to the Scheme Information Document and Statement of Additional Information available free of cost at any of the Investor Service Centres or distributors or from the website www. -----. The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations 1996, as amended till date, and filed with Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM. 2. What is meant by inward and outward clearing in banks? Inward clearing means the cheques received by the bank from other banks. Inward clearing cheques are the cheques drawn by the bank/branch customers on their account in favour of other parties. On receipt of the inward clearing, the cheques are posted to the various accounts on which they are drawn -meaning the accounts of the cheque issuer or drawer with the bank is debited to the account and the payment is made to the bank presenting the cheque. So if in your bank statement there is a debit as inward clearing, it means that your account has been debited with the amount of cheque you have issued to someone for that amount. Since you will be having details as to the issue of cheques, you can find out . The debit indicates that the cheque has been paid. If the balance was insufficient to pay the inward cheque, the bank will have returned the same to the presenting bank and would have debited your account with cheque return charges. Outward Clearing refer to instruments that are deposited by customers that are drawn on other banks that need to be presented at clearing. That can be further devided to 1.Local Clearing(instruments drawn on banks in that city) 2.Outstation Clearing(Instruments drawn on banks outside the city) These may be within the country or on banks in other country. 3. What are the risk weights for home loans in Basel I and II? Basel I Home loans to public with LTV ratio of 75% and loan up to Rs. 30 lakh- risk weight is 50%

Housing loans to public with LTV ratio of 90% and loan above to Rs. 30 lakh- risk weight is 125%

Basel II House loan ( Maximum given loan is Rs. 50 Lakh ) = 50% risk weight House loan ( more than Rs. 50 Lakh ) = 75% risk weight

4. What is the one big initiative taken by the RBI and banks for the customers? While the customer expectations have kept rising, the services to common person have not improved to expected levels.Therefore, RBI in 2003 constituted a Committee on Procedures and Performance Audit in Public Services (CPPAPS) under Chairmanship of Shri S.S. Tarapore, former Deputy Governor of the Reserve Bank. The CPPAPS examined the areas of interaction of customers and common person with the banks and the quality of service rendered. The Committee recommended that a Banking Codes and Standards Board of India (BCSBI) should be set up in India as an organization to evaluate and oversee observance of a code of conduct by banks so that there is healthy and virtuous pressure on the banks to provide good customer service on par with best practices. The initiative to establish the Board is driven by the banks themselves as this would lead to the empowerment of their customers for a higher level of satisfaction with regard to the services offered, through a significant and enduring improvement in customer services. Internationally, such codes are developed by associations of bankers as self-regulatory exercises. The IBA and the BCSBI have drawn up the voluntary codes in general terms and the codes will be followed by detailed Guidance Notes on each of the code. The adherence to the codes by banks will be monitored by BCSBI. The central task of the Board would, therefore, be to ensure that the subscriber banks file detailed compliance reports to the Board on observance of voluntary codes and that they are followed rigorously.If, after a thorough assessment the Board is still not satisfied with the compliance, the Board could contemplate sanctions. 5. Do medical insurance companies themselves tie with hospitals? Yes. For eg. Apollo Munich Health Insurance Company (the tie-up between the Apollo Group of Hospitals, Asia's largest healthcare group and Munich Health, part of Munich Re, Europe's largest insurer and reinsurer) Session 3 1. SWIFT The Society for Worldwide Interbank Financial Telecommunication ("SWIFT") operates a worldwide financial messagingnetwork which exchanges messages between banks and other financial institutions. SWIFT also markets softwareand services to financial institutions, much of it for use on the SWIFTNet Network, and ISO 9362 bank identifier codes (BICs) are popularly known as "SWIFT codes". Major roles of swift, the cooperative society: a) Provides proprietary communication platform, software and services to exchange financial information securely and reliably. Banks and financial institutions are given SWIFT ID(bank identifier codes) for secure financial messaging as part of the swift network. SWIFT is used to send payment orders that are used to settle accounts of the banks. For CLS (cross currency deals): All debits (net settlement) swift message are generated at bank's Back Office and for all credits CCIL generates and credits to bank's respective Nostro accounts. b) Brings financial community together to collaborate on market practices and standards and to consider solutions to issues of mutual interest. 2. What is BCSBI?

Banking Codes and Standards Board of India (est. 2005; Mumbai, India) is an independent and autonomous watch dog to monitor and ensure that the Banking Codes and Standards adopted by the banks are adhered to in true spirit while delivering their services. The main aims and objects of the Society shall be: 1. To plan, evolve, prepare, develop, promote and publish voluntary comprehensive Codes and Standards for banks, for providing for fair treatment to their customers. 2. To function as an independent and autonomous watch dog to monitor and to ensure that the banking Codes and Standards voluntarily adopted by banks are adhered to, in true spirit by banks in delivering the services, as promised, to their customers. 3. To conduct and undertake research of the Codes and Standards currently in vogue in and outside India. 4. To enter into covenants with banks on observance of the codes and standards and for that purpose to train employees of such banks about the Banking Codes. 5. To help people affected by natural calamities. 6. To advertise and publish promotional literature in newspapers and otherwise about the Codes and Standards for the guidance and knowledge of the public through Web site, advertisements in the newspapers, magazines, journals, TV/Radio, hoardings or any other mode which the Society may deem fit. 7. To take up specific assignments, if any, in the areas coming under the Society's objects as projects, turnkey solutions or on any other terms of contracts with in-house resources or with the participation of outside agencies in order to fully implement the Code. 8. To organize teaching and training courses, conferences, seminars, lectures and similar other activities relating to the Codes and Standards or implementation of the said Codes and Standards. 9. To publish journals, reports, pamphlets, books, booklets, research papers in furtherance of the objects of the Society. 10. To maintain close contacts with Indian Banks' Association, other similar institutions, Boards and organizations having similar objects or allied objects by way of subscription, enrolment as a member thereof, financial or other kind of assistance, collaboration, cooperation and in any manner as the Society may deem fit. 11. To initiate, establish and participate in collaborative activities with other institutions / organizations having similar objects within and outside the country. 12. To establish, acquire, maintain and manage facilities such as offices, other accommodation, library, computer centers, etc. 13. To institute and award fellowships, scholarships, prizes and medals to meritorious persons, in accordance with the Rules framed by the Society. 14. To undertake any project or activity in furtherance of the objects of the Society. 15. To do any or all other lawful things as the Board may deem fit for the attainment of all or any of its main or other objects.

3. What is Octopus (from the world of cards)? One of the world's leading smart card payment systems. It uses rechargeable, contactless(RFID) cards for electronic payments both online and offline in Hong Kong. Can be used for payments at convenience stores, supermarkets, fast-food restaurants, parking meters, transport, POS applications like service stations and vending machines. Loyalty programs are also associated with the card. Usage: >20 Mn cards in circulation ( 3 times hong kong population), Used by 95% population in HK, 11 Mn transactions worth USD 13 Mn everyday.

Session 5 1. What is RBS Royalties? Insurance benefits : Royalties International and Royalties Cheque, Multi trip Travel Insurance, Purchase protection policy, Car Rental Loss Damage Waiver policy The domains covered are: Cashback New current account customers can earn 2% cash back up to 125 on qualifying debit card purchases for the first 6 months. It is needed to open an account on or after 23rd May and pay in at least 1,000 every month. Travel Service - upto 10% on flights, holidays and more can be saved when booked through Royalties Membership Services. Protection - register for Mobile Phone insurance and you're covered for one mobile phone and SIM card against accidental or malicious damage, loss and theft up to a value of 750. 2. What is Mpesa? M-Pesa (M for mobile, pesa is Swahili for money) is the product name of a mobile-phone based money transfer service for Safaricom, which is a Telkom Kenya and Vodafoneaffiliate. M-Pesa was initially developed by Sagentia before transitioning to IBM. M-Pesa is a branchless banking service, meaning that it is designed to enable users to complete basic banking transactions without the need to visit a bank branch. The continuing success of M-Pesa in Kenya has been due to the creation of a highly popular, affordable payment service with only limited involvement of a bank. The service enables its users to: Deposit and withdraw money Transfer money to other users and non-users Pay bills Purchase airtime

3. US 64 famous for? The US-64 was Indias largest and oldest mutual fund scheme with around 1.9 crore individual investors. Most of these are loyal investors who have remained invested with the scheme through thick and thin. In the volatile and most often rigged stock market system of India, the UTI, and its US-64 scheme in particular, provided small investors with a stable source of income. Over the years small investors have depended upon UTI for safety of principal, regular income and liquidity. The decision to freeze repurchase, therefore, was a rude shock as it did away with one of the most important features of the scheme, viz., easy liquidity. Against the backdrop of falling interest rates, declining returns in equity market and absence of alternative investment opportunity, the small investors flocked in droves to the scheme in the recent past. The US-64 scheme mobilized Rs. 42.3 billion for FY 2001 (30% growth). There was a decline in redemptions (repurchases), and the net flow into the US-64 scheme was Rs. 21.1 billion compared to Rs 5.5 billion in the FY 2000. Despite the tremendous faith reposed in the UTI by the small investors, the UTI has once again failed to live up to its name. The Finance Minister, already dogged by one controversy after another, was apparently quite uneasy with the decision, but refused to own up responsibility (UTI directly reports to Finance Ministry and is not under purview of SEBI, the market watchdog). The UTI Chairman had to resign and a limited repurchase program was announced to generate some confidence among investors. Simultaneously, an enquiry was ordered into the investment decisions of the UTI in the past, large-scale redemptions by big corporates just before the book closure in June 2001, and the linkages of the UTI officials with the brokerages. On 20th July, a probe has been ordered. The writing was on the wall ever since the meltdown in the tech-stocks, the weightage of which had increased significantly in recent times. Coupled with this, the disconnect between the net asset value (NAV) and sale/repurchase prices offered arbitrage opportunity to the investors. This got accentuated as

over time coporate investors found it a good place to park their funds. As on December 2000, in value terms, more than 50% of corpus consisted of investments by corporates. Thus, although the scheme was for the small investors it attracted lots of corporate funds, and the corporates, in the course of time, actually benefited from insider information and tended to destabilise the scheme by sudden massive withdrawals. The US-64 had exposure to equity to the extent of 66% of its corpus, in flagrant violation of Deepak Parekh Committee recommendations, to reduce equity exposure to 49%. It did not sell the shares even when the market touched the historic high of 6000 points and its NAV had surpassed the repurchase price. Not only it had high exposure to equity, there was a high exposure to momentum stocks like Global Tele, Himachal Futuristics, Softwares Solution and Zee Telefilms in which rise/fall is steeper than the rest of the market. This was clearly an attempt to reap the maximum benefits of the stock market boom. But the UTI, like other mutual funds, overlooked the composition of the US-64 scheme. 4. Difference betwwen insurance and MF advertisements (regulatory) Celebrity endorsement can be used in insurance but not in MF advertisements. To avoid mis-selling of funds, over the years, Sebi has laid down a series of guidelines and regulations on how MFs should advertise their schemes and services. In the US, although there are strict regulations to govern advertisements of MFs, it allows the use of celebrities. For instance, legendary Beetles singer, Paul McCartney, endorsed Fidelity MF in a televised commercial in 2005. MFs arent supposed to assure returns. When a celebrity endorses a product, experts say that his star value may induce investors to follow the advice without considering the risks involved. 5. Which fund house in India since its inception has not given any commission to its distributors? Quantum Mutual Fund In accordance with SEBIs recent directive, where mutual funds are allowed to pay prescribed transaction charges for subscription application received through distributors, Quantum Mutual Fund, Indias first and only direct-to-investor mutual fund, has announced Zero transaction charges for all subscriptions received through distributors. The fund house has also published details of commissions paid to distributors zero commissions paid since inception till date on its website: www.QuantumMF.com. 6. What is 401 k? A qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis. Employers offering a 401(k) plan may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan. Earnings accrue on a tax-deferred basis.