JAIIB Case Studies, Attempt Case Study MCQs & Download PDF

Q1. A company is evaluating a capital project requiring an initial investment of ₹12,00,000. The project generates cash inflows of ₹2,50,000 in Year 1, ₹3,50,000 in Year 2, ₹4,00,000 in Year 3, ₹4,50,000 in Year 4, and ₹3,00,000 in Year 5. The cost of capital is 10%. PV factors at 10% are: Year 1 = 0.909, Year 2 = 0.826, Year 3 = 0.751, Year 4 = 0.683, Year 5 = 0.621. What is the NPV of the project?

Q2. An investor deposits ₹60,000 at the end of each year into a fixed deposit account earning 9% per annum for 6 years. The present value annuity factor at 9% for 6 years is 4.486. Management is comparing this with an annuity due arrangement where deposits are made at the beginning of each year. What is the present value of the ordinary annuity?

Q3. A bank is assessing the creditworthiness of a borrower who has applied for a term loan. The borrower’s EBIT is ₹24,00,000, annual interest obligation is ₹6,00,000, principal repayment per year is ₹4,00,000, and the tax rate is 30%. The credit officer uses DSCR to evaluate repayment capacity. What is the Debt Service Coverage Ratio (DSCR)?

Q4. A company’s capital structure consists of equity capital of ₹50 lakh (cost 16%), preference capital of ₹20 lakh (cost 12%), and term debt of ₹30 lakh (pre-tax cost 10%). The corporate tax rate is 35%. Management wants to compute the WACC to evaluate a new project. What is the Weighted Average Cost of Capital (WACC)?

Q5. Using the Capital Asset Pricing Model, a financial analyst is estimating the required return on an equity investment. The risk-free rate is 7%, the expected market return is 15%, and the beta of the security is 1.30. The company’s CFO wants to use this to determine the minimum acceptable return for a new equity-funded project. What is the cost of equity using CAPM?

Q 6 to 10 Case Study: Deepak is revising India’s foreign investment framework. He learns that FDI (Foreign Direct Investment) involves long-term investment in productive assets, while FII (Foreign Institutional Investment) involves short-term portfolio investment in stocks and bonds. He also studies the rules applicable to FDI from neighbouring countries, especially Pakistan, which requires government route approval.

Q6. Which of the following correctly describes FDI compared to FII?

Q7. Regarding FDI from Pakistan, which of the following is correct?

Q8. Which of the following is a major risk associated with FII investments?

Q9. India joined the IMF in which year and what is its status?

Q10. Which of the following statements about the World Bank Group is correct?

Q11 to Q12Case Study: Ms. Durga Devi, a visually impaired customer, approaches Central Bank of India to open a savings account. She lives alone and there is no one to accompany her as a witness. The bank officer is unsure how to proceed with the account opening formalities.

Q11. Can the bank open a savings account for Ms. Durga Devi despite her visual impairment?

Q12. Regarding cheque book facility for visually impaired persons, which statement is correct?

Q13 to Q14Case Study: XYZ Finance Ltd. (an NBFC) wants to register itself as an NBFC-MFI (Microfinance Institution) with RBI. The company has Net Owned Funds (NOF) of Rs. 4 crore and is registered in Assam (a North-Eastern state). Its qualifying assets constitute 80% of net assets.

Q13. Does XYZ Finance Ltd. meet the minimum NOF requirement for an NBFC-MFI?

Q14. Does XYZ Finance Ltd. meet the qualifying asset requirement for NBFC-MFI registration?

Q15 to Q16Case Study: Sunrise Bank receives a large cash deposit of Rs. 6 lakhs from an NGO named ‘Jeevan Seva’ on June 5th, and another cash deposit of Rs. 5 lakhs from the same NGO on June 28th. The bank’s compliance officer is examining the reporting obligations.

Q15. What reporting obligation does the bank have regarding the cash transactions by Jeevan Seva?

Q16. Under PMLA, what is the minimum imprisonment term for the offence of money laundering?

Q17. Mr. Vikram’s CC account has Drawing Power = ₹15 lakh and Outstanding = ₹14.5 lakh. The outstanding has been above the DP for 20 days. What is the SMA classification?

Q18. XYZ Bank’s General Provision for Substandard Assets is to be calculated. The bank has ₹80 crore in Substandard Assets (secured) and ₹20 crore in Substandard Assets (unsecured). What is the total provision required?

Q19. Mrs. Sita makes an online transfer of ₹50,000 from her bank account. The amount is debited but the beneficiary does not receive it. She reports the issue to the bank on the same day. Within how many days must the bank resolve this complaint?

Q20. Mr. Rajesh deposits ₹1,00,000 in a bank FD at 11% per annum for 6 years. Using the simple interest method for approximation, what is the future value?