@[604027:shobhit220185]: please share you experiences when you are done with your GD/PI.
thanks in advance.
@[578187:SUNMUDULI] You are correct - I agree with you
all the best all the candidates of gd/pi today
@[596627:mba1987_k] dude u didn't understand the concept. Lemme simplify, think u have 3 friends who want Rs 100, A will return Rs 156 after 8 yrs, B will return Rs 154 in 8 yrs, C will return Rs 140 in 5 yrs. Of course A gives best return amount, but look at the extra time also!
So, u need to keep the base time constant & calculate the best return in min possible time for all 3. I hope this helps
@[578187:SUNMUDULI]
As a banker everyone is taught "Its ok if you are not able to get new customers, but dont lose an existing customer". BBC already has a relationship with us and also has previous exp in handling 2 such instances and moreover bank would always prefer a 100% recovery payable even though sonyo's return is good. There is every chance you might lose BBC if you are going to choose anyother bid. Personally, as a banker i would not want to lose BBC.
@[596710:vjtiwari] Is it wise to retain a customer at the cost of profit? So what if you can't give this loan to BBC, does that mean u 'll never give a loan to it in future? If u turn down an old client also, that won't sever the old relationship. BBC also being into business would understand this decision of the bank and would find another bank this time. Also, Sonyo might turn out to be a better revenue generating client than BBC in future. The only hard & fast rule of thumb in business, is look at the present profit & create wider client base.
@[578187:SUNMUDULI] I think bank never want to close the loan early..as long as it is getting interest..which is the basis of a bank..
@[596627:mba1987_k] Its not about pre-mature closure. It's about best ROI in the shortest time. Kya pata kal ho na ho?
@[272808:nikkigs35] u can call the bank HR and finally i think by this time they have stopped pucking up the phone! I am also in the same situation like you! so best is we can carry the attested copies along!
@[578187:SUNMUDULI]
Relationship matters a lot in banking. and moreover one more point i said was bank would always want to get a 100% recovery payable rather 85% recovery payable in 5 years. And if they get 85% recovery that would hit their NPA ratio as well. You want to do business with BBC in future but there is uncertainty over it. They might not. Vice-versa, I would rather continue my relationship with BBC and will find other new customers
@[596710:vjtiwari] I don't see how this will hit Net Present Assets? With 13% p.a for 5 yrs @ 85% recovery u get more, than 8% p.a for 7 yrs @ 100% recovery. Also at the end of 5th yr u can invest that return in a better way, than having that locked for 2 extra yrs! The lower the lock-in period the better is the probability of having more liquidity
@[578187:SUNMUDULI] i second actually !!
Once the loan recovery starts only 15% in case of sonyo is left as NPA and not entire 100% is NPA.
Bank wants longetivity in loan only in case when they have option to adjust rates with market rate as in case of floating loans, but since no such case is there, i dont find any favorable point to stretch it.
furthermore you see NIM is increasing in case you go for SONYO on yearly basis.
so all in all looks okay if goes with SONYO
Just realized NPA is Non-performing assets, not Net-present assests
@[232639:balrbhar] Dude, I am not from banking sector, so not aware of many jargons. Plz explain what's NIM?
neither do I. :-)
NIM is net interest on margins
if you see annualized returns are better for sonyo as compared with other two counterparts, so it gives more room to play with money.
@[232639:balrbhar] Thnx a lot. I think you explained my point better
@[232639:balrbhar] now this is valid point I understood.Thank you for ur analysis.. ð
any one finished GD & PI..Please share ur experience..That will be really helpful to us......
Kaveri Amma is a 40 yr old woman who has 2 daughters - 1 is married and the other is doing her 10th standard. She works in a cooperative where 35 other women support her. She makes ropes in the cooperative and earns Rs.600/ month. She was looking for alternative ways of making a little more money. She knew how to make a special kind of pickle. She bought the required stuff - tomatoes 8kg at a total cost of Rs.30, 1.5 l of oil at Rs.90, 40, 200 gm bottles at Rs.20, miscellaneous ingredients (ginger, garlic etc.) at Rs.57.
She had an earning of Rs.203 from this venture. She used to sell these bottles at Rs. 10/bottle when market price for such pickle was Rs.16. Since she was handpicking her tomatoes her quality was also maintained. A friend told her that if she did this exercise just 4 times a month then she would be able to earn more than what she is presently earning with her rope trade. A young graduate Sheela heard about Kaveri Amma âŽâĒs business and offered her a loan of Rs.15000 to set up pickle making unit plus a Rs. 5000 grant. Should Kaveri accept this offer?
She had an earning of Rs.203 from this venture. She used to sell these bottles at Rs. 10/bottle when market price for such pickle was Rs.16. Since she was handpicking her tomatoes her quality was also maintained. A friend told her that if she did this exercise just 4 times a month then she would be able to earn more than what she is presently earning with her rope trade. A young graduate Sheela heard about Kaveri Amma âŽâĒs business and offered her a loan of Rs.15000 to set up pickle making unit plus a Rs. 5000 grant. Should Kaveri accept this offer?
tell your opinion guys, with valid points..
@[578398:amdeep] what is the 5000 Rs grant?I dont understand..can u please let me know