CAIIB · ABFM

ABFM in 7 DAYS _ CAIIB SYLLABUS PRIORITY _ Module-wise numerical case studies

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Business and Financial Management — CAIIB.

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Q

What is the primary focus of Module E in CAIIB ABFM syllabus?

A

Module E covers extra and integrative topics that consolidate understanding across all ABFM modules, including numerical case studies and priority revision areas for the CAIIB exam.

Q

What is the formula for calculating Operating Profit Margin in bank performance analysis?

A

Operating Profit divided by Net Interest Income plus Non-Interest Income.

Q

Which type of questions dominate the CAIIB ABFM paper in terms of marks?

A

Numerical case studies and application-based questions dominate, often carrying higher weightage; candidates must be comfortable with calculations related to capital adequacy, NPA provisioning, and financial ratios.

Q

What is the Altman Z-Score used to predict in financial analysis?

A

It predicts the probability of corporate bankruptcy within two years.

Q

What is the formula for Net Interest Margin (NIM) used in CAIIB case studies?

A

NIM = (Interest Income - Interest Expense) / Average Earning Assets × 100; it measures how effectively a bank generates income from its interest-bearing assets relative to interest paid.

Q

What does the Cash Credit (CC) limit represent in working capital finance?

A

Maximum amount a borrower can withdraw against pledged stocks or receivables.

Q

How is Return on Assets (RoA) calculated in bank performance analysis?

A

RoA = Net Profit after Tax / Average Total Assets × 100; a RoA of 1% or above is generally considered satisfactory for Indian commercial banks.

Q

How is the Inventory Turnover Ratio calculated in credit appraisal?

A

Cost of Goods Sold divided by Average Inventory held during the period.

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