Banking Finance Interview Questions
Questions Answers Views Company eMail

how trading goes in stock markets. ie in bse how we are knowing that a companys share is increasing or decreasing?

5 6974

accounting principles? types of deperciation? types of ratios?

Karvy,

3 9934

Suggest me where i can do certification course on capital management/wealth management through distance in and around Bangalore.

1493

what are the determinants of dividend policy

11 24545

Difference between the BSE and NSE not their expansion

Wipro,

17 41434

what is the difference between debenture and preference share

Indiabulls, Newland Agro Industries,

14 67087

Why are bond prices inversely related to interest rates ?

ICFAI,

5 19288

what is sensex,nifty and what is difference between those two

Wipro,

4 7907

on which basis sensex and nifty will be maesured and also how the infletion rate measured

3 7041

WHAT IS BOTTOMLINE AND WHAT IS TOPLINE?

Brand Factory, Future Group,

8 37090

Are Bankrate, Discount rate and Repo rate the same in Indian context?

4 7118

What is Basel II, is it helpful?

3 9104

what is the difference between profit and gain?

Capital IQ, Grail Research,

25 101165

what is the difference between commercial banking and investment banking?

Capital IQ,

8 33605

what is post-issue capital of the company

1 13760


Post New Banking Finance Questions

Un-Answered Questions { Banking Finance }

What are your views on the cashless economy?

586


When was NABARD set up?

756


Define IPC.

876


What measures can be taken from rural development?

581


How to calculate beta for a specific company?

630






What Is Non-traditional Options?

613


Read the case given below and answer the questions given at the end. Krutika Designers Ltd is an Indian company engaged in designing shirts for an international shirt manufacturer. Its operations are currently restricted to designing shirts for the Indian market. The firm is interested in extending its operations to the European markets, but is restricted by its lack of knowledge about the latest fashions and trends prevailing there. Hence, the firm has decided to open an office in Finland for establishing a network in Europe that will give the firm access to the needed information. The firm feels that its does not have the capability of sustaining itself in the foreign markets in the long-term, and will be able to generate additional revenue from these activities only for the next 5 years. After that, the Finnish office will have to be closed down. The firm anticipates an initial investment of Rs.14 million. The project is expected to generate the following cash flows over the 5 years period. Year Cash flow (Finnish Marks) 1 2 3 4 5 10,00,000 20,00,000 50,00,000 50,00,000 30,00,000 These cash flows are expressed in terms of today’s money. The firm can claim depreciation in India according to the Straight Line Method. The salvage value from the project is expected to be nil. The Finnish Government does not provide any incentives for foreign investments. However, currently it is making an attempt to have better economic ties with India. Hence, it has decided to extend a loan of 50,000 marks to Krutika Designers. The loan will be at a concessional interest rate of 7%. The loan is to be repaid in 5 equal annual installments which will include the interest payments. The project will generate additional borrowing capacity of Rs.5 million for the firm. However, as the firm does not have any firm contract with the international shirt manufacturer, its domestic revenues are expected to be very volatile. Therefore, there is no surely that the firm will be able to absorb the tax benefits arising out of depreciation and additional borrowing capacity. The firm does not intend to indulge in any illegal money transfers. The current spot rate for the Finnish Mark is Rs.7.25/FM. The inflation rates in India and Finland for the next 5 years are expected to be 8% and 3% respectively. The exchange rate is expected to move in tandem with the inflation rates. Indian tax rate is 35% while Finnish tax rate is 40%. India and Finland have entered into a tax treaty whereby the earnings of the residents of one country are taxable in that country only. In India, the nominal risk-free interest rate is 11%. The same is 6% in Finland. The Indian nominal interest rate (including risk-premium) is 15%, while that in Finland is 9%. The nominal all-equity rate in India is 18%. 1. Comment on the financial viability of the project. 2. What are the different circumstances in which nominal all-equity discount rate and real all equity discount rate should be used for discounting the cash flows? Explain the rationale behind it. 3. Comment on the financial viability of the project if the firm is sure about being able to absorb the tax benefits arising out of depreciation and increased borrowing capacity. 4. Explain the concept of exchange risk and how it affects an international project. 5. How can the financial structure of a project be used to overcome repatriation restrictions? What are the additional benefits of such maneuvers?

1758


When were banks nationalized?

602


What are the different benchmarks against which ratios are compared?

569


Do you know what negative interest rate policy is? Why does Japan adopt it?

577


What is the amounts owed to a company that are not going to be paid

554


Explain the difference between accretion and amortization?

558


compare cumulative & non-cumulative shares

578


Explain what is MF or Minimum Fill Order?

752


Explain share capital?

622