1.
PAPER 1 - PRINCIPLES & PRACTICES OF BANKING
PAPER 1 - PRINCIPLES & PRACTICES OF BANKING
Objective
:
The candidates would be able to acquire knowledge in the following :
- Various functions associated with banking.
- Practice and procedures relating to deposit and credit,
documentation, monitoring
and control.
-
An insight into marketing of banking services and banking technology.
Module A - Indian Financial System
(1)
Recent developments in the Indian Financial System; market structure and
Financial
Innovation.
RBI, SEBI, IRDA etc. their major functions, (2) Role and Functions of Banks -
Regulatory
provisions / enactments governing Banks, (3) Retail Banking : Approach,
Products,
Marketing etc., (4) Wholesale Banking; International Banking; (5) Role and
Functions
of Capital Markets, (6) Role and Functions of Mutual Funds, (7) Role and
Functions
of
Insurance Companies - Bancassurance, (8) Importance of Risk Management in
Bankstypes
of
Risk-Impact and Management Factoring & Forfeiting, (9) Alliances / mergers
/
consolidation
(10) ADR / GDR / Off Balance Sheet Items, (11) Participatory Notes, (12) Credit
Information
Bureau Ltd., (13) Fair Practices for Debt Collection, (14) Basel-II, (15)
Banking
Codes and
Standard Boards
Module B - Functions of Banks
Deposits :
Banker-Customer
relations - Know your Customer(KYC) guidelines-Different Deposit
Products
- services rendered by Banks - Mandate and Power of Attorney;
Banker’s
lien - right of set off - garnishee order - Income tax attachment order etc.
Payment
and collection of Cheque - duties and responsibilities of paying and collecting
banker-protection
available to paying and collecting banker under NI Act - endorsements -
forged
instruments - bouncing of cheques and their implications
Opening
of accounts for various types of customers - minors - joint account holders -
HUF -
firms -
companies - trusts - societies - Govt. and public bodies Importance of AML
Credit :
Principles
of lending - various credit Products / Facilities - working capital and term
loans -
Credit
Appraisal Techniques - Approach to lending; - credit management - credit
monitoring -
NPA
Management
Different
types of documents; Documentation Procedures; Stamping of documents Securities
-
Different modes of charging - types of collaterals and their characteristics
Priority Sector
Lending -
sectors - targets - issues / problems - recent developments - Financial
Inclusion
Agriculture / SMEs / SHGs
/ SSI / Tiny Sector Financing
New Products & Services -Factoring, Securitisation, Bancassurance,
Mutual Funds etc.
Credit Cards / Home Loans / Personal Loans / Consumer Loans - Brief
outline of procedures
and practices
Ancillary
Services : Remittances, Safe Deposit lockers etc.
Module C : Banking Technology
Electronic Banking - Core Banking - Electronic Products
Banking Technology - Distribution Channels - Teller Machines at
the Bank Counters - Cash
Dispensers - ATMs - Anywhere Anytime Banking - Home Banking
(Corporate and Personal)
Electronic Payment Systems
On line Banking - Online enquiry and update facilities - Personal
identification numbers and
their use in conjunction with magnetic cards of both credit and
debit cards, smart cards,
signature storage and display by electronic means, cheque
truncation, microfiche, note and
coin counting devices.
Electronic funds transfer systems - plain messages (Telex or data
communication) -
structured messages (SWIFT, etc...) - RTGS
Information Technology - Current Trends - Banknet, RBI net,
Datanet, Nicnet, I-net, Internet,
E-mail, etc...- Role and uses of technology up gradation - Global
developments in Banking
Technology - Information Technology in finance and service
delivery Impact of Technology on
Banks - Protecting the confidentiality and secrecy of data -
effect on customers and service
quality - Computer Audit -Information System Audit.
Information System Security and Disaster Management.
Module D - Support Services - Marketing
of Banking Services Products
Marketing Management - Meaning, Importance and Functions -
Marketing of Services -
Product Research & Development - Test Marketing of Bank
Products - Product Life Cycle -
Product Modification - New Product Development - Packaging and
Branding of Bank
Products - Diversification - Pricing of Bank Products and Services
- Objectives, Strategies and
Methods - Factors Influencing the Pricing Decisions, Importance of
Pricing. Distribution -
Factors Influencing - Direct and Indirect Channels of Bank
Products - Physical Distribution -
Channel Functions and Services - Promotion - Promotion Mix and
Role of Promotion in
Marketing - Marketing Information Systems.
Role of DSA / DMA in Bank Marketing
Channel Management
Selling Function in a Bank
Portfolio and Wealth Management
Tele Marketing / Mobile Phone Banking
PAPER 2 : ACCOUNTING & FINANCE FOR
BANKERS
Objective:
The candidate would be able
to acquire the knowledge of the basics of financial
mathematics and basics of
accountancy and develop an understanding of the basic
financial concepts.
Module A - Basics of Business Mathematics
Calculation of
Simple Interest and Compound Interest -Fixed and Floating Interest Rates -
Calculation of
EMIs - Calculation of front end and back end interest -Calculation of Annuities
-
Calculation of
provisions for NPA and risk weights for Basel II - Interest calculation using
products /
balances
Bonds -
Calculation of YTM - Duration - Bond Pricing - Premium and Discount - Bond
valuation
rules
preliminary method, definition of debt, rules on compounding in respect of loan
accounts,
penal interest etc.
Capital
Budgeting - Discounted cash flow - net present value - pay back methods
Depreciation -
different types - methods of calculation
Foreign
Exchange Arithmetic for beginners
Module B - Accounting in Banks / Branches
Definition & Scope and Accounting Standards-Nature and purpose
of accounting; historical
perspectives-Origins of accounting principles-accounting standards
and its definition and Scope.
Generally Accepted Accounting Principles - USA
Transfer Price Mechanism
Basic Accountancy Procedures - Concepts of accountancy - entity
going concern - double
entry systems, Principles of conservatism - revenue recognition
and realization - accrual and
cash basis.
Record keeping basics - Account Categories - Debit and Credit
Concepts - Journalizing -
Maintenance of Cash / Subsidiary Books and Ledger -Trial Balance -
Adjusting and Closing
Entries - Day Book and General Ledger Posting.
Module C - Bank Accounting and Balance
Sheet
Rules for bank accounts, cash / clearing / transfer vouchers /
system - subsidiary book and
main day book - General Ledger - Branch v/s Bank Accounts
Bank Balance Sheet Structure - accounts - categories - Assets,
Liabilities and Net Worth
Components.
Accounting for NPA / Provisioning / Suit Filed Accounts.
Preparation of Final Accounts - Final Accounts of Banking
Companies.
Disclosure requirements.
Module D - Other Accounts
Partnership
accounts - partner’s fixed capital accounts - Current accounts - loan accounts
-
treatment of
intangibles like goodwill - admission / retirement / death of partner.
Company
accounts - classes of Share Capital - issue/ forfeiture of Shares - issue of
Bonus Shares.
Bank
Reconciliation Statement - Capital & Revenue Expenditure / Depreciation /
Inventory
Valuation /
Bill of Exchange / Consignment Account / Joint Venture - Special Accounts -
Leasing and
Hire - Purchase Company accounts - Accounts of Non - Trading Concerns -
Accounting
from incomplete records - Receipts and Payments Account - Income and
Expenditure
Account, Ratio Analysis.
Module E - Computerized Accounting
Accounting in
electronic environment - methods - procedures - security - rectification.
Core banking
environment is to be highlighted. Standard books maintained for different
accounts are
to be shown as model.
PAPER 3: LEGAL & REGULATORY ASPECTS
OF BANKING
Objectives:
The candidates
would be able to acquire knowledge in
·
the legal & regulatory framework
of the banking system
·
and the various laws and enactments
affecting day to day Banking operations
Module A - Regulations and Compliance:
The questions
in this section will be with reference to legal issues and problems
A. Provisions
of RBI Act 1935, Banking Regulation Act 1949 Banking Companies
(Acquisition
and transfer of undertakings Act 1970 & 1980)
B. Government
and RBI’s powers
- Opening of
new banks and branch licensing
- Constitution
of board of directors and their rights
- Banks share
holders and their rights
- CRR / SLR
concepts
- Cash /
currency management
- Winding up -
amalgamation and mergers
- Powers to
control advances - selective credit control - monetary and credit policy
- Audit and
Inspection
- Supervision
and control - board for financial supervision - its scope and role
- Disclosure
of accounts and balance sheets
- Submission
of returns to RBI etc.
- Corporate
Governance
Module B - Legal Aspects of Banking
Operations
Case laws on
responsibility of paying /collecting banker
Indemnities /
guarantees - scope and application - obligations of a banker - pre cautions and
rights-laws
relating to bill finance, LC and Deferred Payments - Laws relating to
securities -
valuation of
securities - modes of charging securities - lien, pledge, mortgage,
hypothecation
etc -
registration of firms/companies - creation of charge and satisfaction of
charge.
Module C - Banking Related Laws
Law of limitation
Provisions of Bankers Book Evidence Act
Special features of Recovery of Debts Due to Banks and Financial
Institutions Act, 1993
(a) TDS, (b) Banking Cash Transaction Tax, (c) Service Tax, (d)
Asset Reconstruction
Companies
The Securitisation and Reconstruction of Financial Assets and
Enforcement of Security
Interest Act, 2002
(a) The Consumer Protection Act, 1986, (b) Banking Ombudsman, (c)
Lok Adalats
(d) Lender’s Liability Act
Module D - Commercial Laws with reference
to Banking Operations
Indian
Contract Act, 1872 (Indemnity, Guarantee, Bailment, Pledge and Agency etc)
The Sale of
Goods Act, 1930 (Sale and Agreement to Sell, Definitions, Conditions and
Warranties,
Express and Implied, Right of unpaid Seller etc)
The Companies
Act, 1956 Definition, Features of Company, Types of Companies,
Memorandum,
Articles of Association, Doctrines of Ultravires, indoor Management and
Constructive
Notice, Membership of Company - Acquisition - Cessation, Rights and Duties of
members and
register of members, Prospects and Directors.
Indian
Partnership Act, 1932 Definition and types of partnership, relation of partners
to one
another -
Relation of partners to third parties, Minor admitted to the benefits of Partnership,
Dissolution of
firm, Effect of non - registration - The Transfer of Property Act (i) Foreign
Exchange
Management Act 2000, (ii) Prevention of Money Laundering Act (iii) Right to
Information Act, (iv) Information Technology Act.
2.
2.
Compulsory Paper - I : ADVANCED BANK
MANAGEMENT
MODULE
- A : Economic Analysis
The fundamentals of
Economics : Scarcity and Efficiency - Microeconomics & Macroeconomics
in brief - Types of
economies - Market, Command and Mixed Economies - Macroeconomics :
Business cycles - Money
and banking - Unemployment & inflation - Interest rate determination
and various types of
interest rates.
Indian Economy (a)
Overview of the Indian economy including recent reforms (b)Interaction
between fiscal, monetary
& exchange rate policies in India - Financial Markets (i) Money Market
(ii) Capital Market (iii)
Foreign Exchange Market - globalisation and its impact - Challenges
ahead - Banking &
Finance - current issues
MODULE
- B : Business Mathematics
Concept of time Value of Money
- Net Present Value - Discounted Cash Flow - Sampling methods
- presentation of data -
analysis and interpretation of sample data - hypothesis testing - Time
series analysis - mean /
standard deviation - co-relation - Regression - covariance and volatility -
Probability distribution -
Confidence interval analysis - estimating parameters of distribution -
Bond valuation - duration
- modified duration.
Linear programming -
decision making-simulation - Statistical analysis using spreadsheets.
Features of Spread sheet -
Macros, pivot table, statistical and mathematical formulae.
MODULE
- C : HRM in banks
Fundamentals of HRM,
development of HRM in India, Relationship between HRM and HRD,
Structure and functions of
HRD, Role of HR professional, Human implications of organizations;
training and development,
attitude and soft skills development, role and impact of training, career
path planning and
counseling, employee behaviour, theories of motivation and their practical
implications, role
concepts and analysis, self development., Performance Management and
appraisal systems; Reward
/ punishment and compensation systems., HRM and Information
Technology, information
and data management, knowledge management.
MODULE
- D : Credit Management
Principles of Credit
Management Credit Appraisal Analyzing Financial Performance -
Relationship between items
in Balance Sheet and Profit and Loss Account. Trend Analysis,
Comparative Statement -
Common size Statement, Preparation of projected Financial
Statements. - Ratio
analysis - Interpretation and analysis of different Ratios, Limitation of the
use
of ratios. Statement of
Sources and Applications of Funds.
Structuring a Credit
Proposal - Working Capital Concept and Management Appraisal techniques
for different constituents
- trade cycle - credit rating - Technical and economic feasibility studies -
Credit Rating - Rating
Methodology - Objectives and benefits of rating - Term Lending - Debt
Service Coverage Ratio -
Cash Flow Analysis - Cash Budget - Bill Finance - Deferred Payment
Guarantee - Credit Scoring
- Credit Delivery System - Documentation - Post sanction
supervision, Control and
monitoring of credit - Consortium finance, Multiple banking, Syndication
of loans. Infrastructure
financing.
Dealing with credit
defaults, Stressed assets, Corporate Debt restructuring, SARFAESI, NPAs,
recovery options,
write-off. Disclosure of the list of defaulters : objectives and procedure.
Appraisal methodology for
different type of clients / products.
Compulsory Paper - II : BANK FINANCIAL
MANAGEMENT
MODULE
- A : International Banking
Forex Business; factors
determining exchange rates, Direct and indirect quotations, spot /
forward rates, premium and
discount, cross rates.
Basics of forex
derivatives; forward exchange rate contracts, Options, Swaps. Correspondent
banking, NRI accounts
Documentary letters of
Credit - UCPDC 600, various facilities to exporters and importers. Risks
in foreign trade, role of
ECGC, types of insurance and guarantee covers or ECGC. Role of Exim
Bank - Role of RBI and
exchange control - Regulations in India, Role and rules of FEDAI - Role of FEMA
and its rules
MODULE
- B : Risk Management
Risk-Concept - Risk in
Banks - Risk Management Framework - Organisational Structure - Risk
Identification - Risk
Measurement / - Sensitivity - Basis Point Value (BPV) - Duration -Downside
Potential - Value at Risk,
Back Testing - Stress Testing - Risk Monitoring and Control - Risk
Reporting -
Market Risk
identification, Measurement and management / credit risk - rating methodology,
risk weights, eligible
collateral for mitigation, guarantees; credit ratings, transition matrices,
default probabilities,
Credit risk spreads, risk migration and credit metrics , Counterparty risk.
Credit exposures, recovery
rates, risk mitigation techniques, - / Operational and integrated Risk
Management - Risk
management and capital Management - Basel-II - Current guidelines on risk
Management
MODULE
- C : Treasury Management
Concepts and function;
instruments in the treasury market, development of new financial
products, control and
supervision of treasury management, linkage of domestic operations with
foreign operations.
Interest rate risk,
interest rate futures
Mix / Pricing of Assets,
Liabilities - On-Balance Sheet Investment and Funding Strategies - Stock
options, debt instruments,
bond portfolio strategy, risk control and hedging instruments.
Investments - Treasury
bills, money market instruments such as CDs, CPs, IBPs
Securitisation and
Forfaiting; refinance and rediscounting facilities.
Derivatives - Credit
Default Swaps / Options
MODULE
- D : Balance Sheet Management
Prudential norms-Capital
Adequacy. Implementation of Basel-II guidelines : RBI guidelines.
Banks Balance Sheet -
Components of assets / Liabilities / ALM Implementation - RBI Guidelines
- Gap Analysis -
Mechanics, Assumptions, and Limitations - Illustrations of Actual Gap Reports -
The Relationship Between
Gap and Income Statement - Funding Liquidity - Trading / Managing
Liquidity - Contingency
Funding - Business Strategies : Profit and profitability analysis, Asset
Classification -
provisioning - effect of NPA on profitability, Shareholder value maximization
&
EVA - profit
planning-measures to improve profitability. Disclosure guidelines.
Elective Paper - I : CENTRAL BANKING
Module
- A : Rationale and Functions of Central Bank
1. Evolution and Functions
of Central Banking : Evolutions of Theory and Practice of Central
Banking, Development of
Central Banks in Developed and Developing countries.
2. Functions of a Central
Bank : Banker to Government, Banker to Banks, Monetary policy
Functions, Currency Issue
and Management, Payment system function, Maintaining
Internal and External
values of currency, Regulation, Facilitation and supervision of
Financial System,
Promotional Functions to support growth and other National
objectives, Development of
Financial Markets, Institutions and communication policies.
3. Contemporary Issues :
Desirability, Autonomy and independence, Credibility,
accountability and
transparency of a Central Bank, conflict with fiscal policies.
Module
- B : Central banking in India
1. Reserve Bank of India :
Organisational evolution, Constitution and Governance, Major
organizational and
Functional Developments over time, Recent Developments, RBI Act.
2. India Specific Issues :
Banking Regulation Act, FEMA, Banking Ombudsman Scheme,
Financial Sector reforms,
other financial regulators and division of functions. Institutions
set up by RBI; NABARD,
IDBI, DFHI, IRBI, UTI.
3. Glossary of Central
Banking Terms.
Module
- C : Monetary Policy and Credit Policy
1. Monetary Policy :
Objectives, Reconciling dual objectives, The Taylor Rule, Indicators of
Policy, instruments of
policy (Bank Rate, OMO, CRR, SLR etc.), policy Transmission
mechanism and channels,
transparency of policies, Lags in policy.
2. Credit Policy :
Objectives, Theory and Practice, Instruments.
3. An over view of Fiscal
Policy : Importance of Budgets, Union Budget, State Budget,
Finances of Union and
State Governments, Finance Commission.
4. Striking balance
between inflation and growth through monetary and fiscal policies.
Module
- D : Supervision and Financial Stability
1. Indian Financial System
: Constituents of Indian Financial Markets and their Regulation.
Evolution of Bank
Regulation and supervision.
2. Financial Stability :
Financial Development Vs Financial stability, Risks to Financial
stability, Early warning
signals and remedial action, Liquidity Management, Regulation
and supervision of Banks,
Risk Management in Banks, The Basle Norms, Prudential
Norms, Effect of
liberalisation and Globalisation on Financial Stability, Linkage to
International Financial
Stability, International standards and codes. Role of Supervisor
under Basel-II.
Elective Paper - II : INTERNATIONAL
BANKING
Module
- A : International Banking and Finance
1) International Banking
i) Global Trends and
developments in International Banking
ii) International
Financial Centres, Offshore Banking Units, SEZs.
iii) Profitability of
International Banking operations
iv) Correspondent Banking
and inter - Bank Banking
v) Investment Banking,
Wholesale Banking, Retail Banking, Merchant Banking
vi) International
Financial Institutions : IMF, IBRD, BIS, IFC, ADB
vii) Legal and regulatory
aspects
viii) Risk Management
2) International Finance
i) Fundamental Principles
of Lending to MNCs, documentation and Monitoring
ii) International Credit
Policy Agencies and Global Capital Markets
iii) Raising resources :
Availability features and risks of various Equity and debt products
like ECBs, ADRs, ECCBs and
other types of Bonds etc, Syndication of loans
iv) Project and
infrastructure Finance : Investments both in India (FII & FDI) and abroad,
Joint ventures abroad by
Indian Corporates. Investment opportunities abroad for
resident Indians.
v) Financing of mergers
and acquisitions
Module
- B : Foreign Exchange Business
i) Foreign Exchange
Management Act (FEMA) and its philosophy
ii) Different types of
Exchange Rates
iii) RBI and FEDAI : their
role in regulating Foreign Exchange Business of Banks / other
Authorised Dealers.
iv) Rules regarding rate
structure, cover operations, dealing room activities and risk
management principles,
including correspondent Bank arrangements.
v) NRI customers and
various banking and investment products available to them under
FEMA.
vi) Remittance facilities
Module
- C : International Trade
1) Regulations covering
international trade
i) Various Aspects of
International Trade, Government policies, DGFT and their schemes,
Customs procedures, Banks'
role in implementing these policies and schemes
ii) WTO- its impact
iii) Balance of payment,
balance of trade, Current account and capital account convertibility.
iv) Documents used in
Trade : bill of exchange, invoice, Bill of lading, Airways bill, Insurance
policy etc.
v) Role of Banks in
foreign Trade
vi) Letters of credit;
importance in international trade, various types of LCs, settlement of
disputes, UCP 600,
INCOTERMS.
vii) Exchange control
relating to foreign trade. Returns required to be submitted to RBI
2) Import / Export Finance
i) Laws governing trade
finance viz, FEMA, NIAct, Indian stamp Act, EXIM policy, RBI /
FEDAI guidelines
ii) Role of Banks,
including EXIM Bank, in financing Foreign Trade, various facilities to
Exporters and importers
including project finance, Forfaiting and Factoring
iii) Risks involved in
foreign trade finance : Country risk, Currency risk, Exchange risk, legal
risk etc, Role of ECGC.
Module
- D : Derivatives
1. Treasury operations of
banks and corporates
2. Derivatives as hedging
instruments, types of instruments available in Indian Market.
3. RBI rules and
guidelines regarding derivatives
4. Mathematics of
derivative valuation and pricing
5. Risk assessment of
derivatives, Lessons from recent crisis in derivatives market.
Elective Paper - III : RURAL BANKING
Module
- A : Rural India
Demographic features;
Population, occupation, literacy, socio-economic development
indicators, health,
nutrition and education, - urban migration.
Characteristics of Rural
Society; Caste and power structure - rural social stratification,
Economic Features;
Economic life of rural people, share in National income -Trends in per
capita income, rural money
markets, rural indebtedness, rural poverty - main causes and
methods of measuring rural
poverty.
Rural infrastructure;
Transport, Power, Markets and other services.
Agriculture Economy;
Structure and characteristics of Indian agriculture, Role of
agriculture in economic
development, agriculture-industry linkages, Resources and
technical changes in
agriculture, constraints to agriculture development, Emerging issues
in Indian Agriculture.
Rural Development Policy;
Govt. policies and programmes for rural farm and non-farm
sectors. Economic reforms
and its impact on rural economy.
Rural Issues; Development
issues, Management Issues, Marketing issues, Pricing issues,
Module
- B : Financing Rural Development
Regulation of Rural
Financial Services; Function and policies of RBI in Rural Banking,
NABARD-Main functions,
role, refinance support. Lead bank approach, State level and
District level Credit
committees.
Rural Credit Institutions;
Co-operative Credit Societies and Banks, Land Development
Banks, Regional Rural
Banks, Commercial Banks. Role of Information and communication
technologies in rural
banking-Models, Financial inclusion & inclusive growth for rural
development banking, rural
insurance micro insurance scheme, concept of Business
Facilitators and Business
Correspondents in rural financing.
Financing agriculture /
allied activities; Crop Loans-Assessment, Sanction, Disbursement,
rephasement. Term loans
for irrigation, Farm mechanization, Godowns / cold-storage
facilities etc. Financing
allied agriculture activities like Horticulture, Fisheries, Social forestry,
etc. Finance against
Warehouse / cold storage receipts
Financing Rural Non-Farm
Sector (RNFS); Importance of RNFS, Segments in RNFS, Role of
Development and
Promotional Institutions in RNFS
SME Finance; Definition of
SME .Importance to Indian economy. Financing of SME
and small enterprise
Refinance from SIDBI. Project funding techniques and requirement
assessment. Cluster based
approach and joint finance with SIDBI.MSMED Act
2006, CGTMSE, Working
capital assessment of SMEs. Risk rating of SME proposals,
role of rating agencies
and rating methodology. Revival of sick units; revival package
and implementation,
Stressed assets under rehabilitation. Debt restructuring mechanism
for SMEs
.
Module
- C : Priority Sector Financing and Govt initiatives
Components of priority
sector. RBI guidelines.
Government initiatives;
Poverty alleviation programmes / Employment programmes / Production
oriented programmes-rationale
and philosophy, progress and impact, problems and deficiencies.
Rural housing and Urban
housing schemes under priority sector, their refinance, Educational
Loans
Module
- D: Problems and prospects in Rural Banking
Role of rural banking.
Problems of Rural branches
of Commercial banks - transaction costs and risk costs.
Technology based Financial
Inclusion.
Emerging trends in rural
banking-financing poor as bankable opportunity, Micro Credit, Self
Help Groups / NGOs,
linkages with banking, latest guidelines of GOI and RBI.
Elective Paper - IV : FINANCIAL ADVISING
MODULE
- A : Introduction to Financial Advising
Indian financial and
investment industry, participants in the Indian finance system, Indian
economic and social
environment, Role of Regulators viz., RBI, SEBI etc.
Financial counseling-
Essentials in financial counseling, Profile of effective counselor, Basic
communication principles,
Elements of non-verbal behavior, Attending and Listening skills,
Counselor leading
responses, understanding and meeting client's needs through financial
planning, evolution of
financial planning as a profession. Marketing of financial services.
Fundamental Investment
concepts, The Time Value of Money, Risk-Reward Trade-Off,
Diversification -Spreading
Risk, Investment Timing,
Direct Investment - What
Are They and Who Uses Them?
MODULE
- B : FINANCIAL PLANNING
Financial Planning, Role
of a Financial planner, Fundamental investment concepts, Asset
classes, Asset allocation
towards a financial plan, working with clients, gathering initial /
additional information
from the client, understanding investor's risk appetite, meeting the
client's objectives, Asset
Allocation, Good practices in financial planning, Content of a
comprehensive financial
plan, Recommending financial planning strategies to investors,
Asset allocation the
strategic tool - Selection of Investment and Insurance Products,
Implementation, ongoing
Service, Using stop loss, understanding market behaviour.
MODULE
- C : FINANCIAL INVESTMENT PRODUCTS
Financial investment
products - Portfolio analysis & selection, Efficient markets, Securities
markets - Primary market,
Secondary market, Depository & investment process, regulatory
framework, fundamental and
technical analysis-basic philosophies and underlying
assumptions - Bond and
Money markets, Indian debt markets - Securities traded in debt
market, Commodities
Market, Insurance products, Pension products, Mutual fund industryproducts
& services, Banking
products, Investment in Real estate. Cash generation and
return on investment.
Statutory provisions
regarding starting of business / industrial units by NRIs / MNCs.
MODULE
- D : TAXATION
Income Tax law, important
definitions-person, Assessee, Agriculture income, capital /
Revenue receipts /
expenditure, Gross total income, Total income, residential status, Heads
of income viz. salaries,
income from house property, profits and gains of business or
profession, Capital gains,
income from other sources, Income exempt from tax, Permissible
deductions from gross
total income , income tax return, tax deducted at source
Tax planning strategies-
House wife, Salaried person, Businessman, persons having income
from more than one source,
Retirement planning and taxation, Tax triggered investments
Estate Planning, Will,
Administration of an estate, Passing of an asset, Tax planning through
wills and trusts, Taxation
of Terminal benefits.
Elective Paper - V : CORPORATE BANKING
MODULE
- A : Corporate Banking and Finance
Corporate Banking :
Meaning and importance, various services provided viz.,
Cash Management, Salary
Payment, Debt Management, Factoring and Forfaiting,
Trusteeship, Custodial
services, Business advisory, Off shore services, Trade services,
Forex Management, etc.
Corporate Deposits :
Importance of Institutional deposits vis-a-vis retail deposits
Corporate Finance :
Working capital finance, Fund and Non fund based limits and Import-
Export finance. Corporate
Debt Restructuring.
MODULE
- B : Investment Banking
1) Meaning and scope of
Investment Banking, Evolution, overview of current state of
Investment Banking in
India.
2) Merchant Banking :
Advisory services for equity / debt issues, Management, placement
and distribution of equity
/ debt.
3) Mergers and
Acquisitions, Divestitures : Identification, Structuring, Negotiation and
Execution, arranging
finances etc.
4) Corporate advisory
services : Capital restructuring, Project advisory, Private equity and
Venture capital, Loan
Syndication etc.
MODULE
- C : Project and Infrastructure Finance
Characteristics of Project
Finance - Technology selection, Assessment of technical
collaborator - Market
Analysis : International competitiveness and SWOT analysis - Assessing
the project cost - Means
of financing projects - Estimation of project cash flows - Use of free and
equity cash flow valuation
for assessing projects - Financial Analysis : Break-even point
analysis, Decision tree,
Scenario analysis and Internal Rate of Return, Sensitivity analysis
Common risks in projects -
Risk mitigation methodologies in projects - Securitisation as a tool
for risk mitigation -
Project planning - Network techniques for project implementation -
Disbursement, supervision
and follow up of project by lender - Infrastructure financing cash
flow deal agreement with
parties involved - SPV - Monitoring and follow-up of the project
Elective Paper - VI : RETAIL BANKING
MODULE
- A : Introduction
History and definition,
role within the bank operations, Applicability of retailing concepts
distinction between Retail
and Corporate / Wholesale Banking
MODULE
- B : Retail Products
Retail Products Overview -
Customer requirements, Products development process,
Liabilities and Assets
Products / Description of Liability products, Description of Asset
Products, Approval process
for retail loans, Credit scoring.
Important Asset Products -
Home Loans - Eligibility,
Purpose, Amounts, Margin, Security, Disbursement, Moratorium,
Prepayment issues,
Repayments / Collection.
Auto / Vehicle Loans -
Eligibility, Purpose, Amounts, Margin, Security, Disbursement,
Moratorium, Prepayment
issues, Repayments / Collection.
Personal Loans
Eligibility, Purpose, Amounts, Security, Disbursement, Moratorium,
Prepayment issues,
Repayments / Collection.
Educational Loans
Eligibility, Purpose, Amounts, Security, Disbursement, Moratorium,
Prepayment issues,
Repayments.
Credit / Debit Cards -
Credit Vs Debit Cards, Eligibility, Purpose, Amounts, Margin, Security,
Process of using the
cards, Billing Cycle, Credit Points.
Other Products /
Remittances / Funds Transfer
MODULE
- C : Marketing / Selling of retail products, MIS and Accounting
Retail Strategies; Tie-up
with Institutions for Personal loans / Credit cards / Educational loans,
with OEMs / Authorised
Dealers for Auto / Vehicle loans, and with Builders / Developers for
Home loans
Delivery Channels -
Branch, Extension counters, ATMs, POS, Internet Banking, M-Banking.
Selling Process in retail
products-Direct Selling Agents.
Customer Relationship
Management - Role and impact of customer relationship
management, Stages in
customer relationship management process.
Regulations and compliance
Technology for Retail
Banking - Static information, Account opening, basic loan
origination data etc.
Updated information like income details at different frequencies.
Transaction information
from disbursement till final settlement of the loan amount.
Analytics / Alerts.
Accounting entries - Loan
process and the relevant accounting including EMI Computation.
MODULE
- D : Other issues related to Retail Banking
Securitisation, mortgage
based securities.
Trends in retailing - New
products like Insurance, Demat services, online / Phone Banking,
Property services,
Investment advisory / Wealth management, Reverse Mortgage - Growth of
e-banking, Cross selling
opportunities.
Recovery of Retail Loans -
Defaults, Rescheduling, recovery process. SARAFAESI Act, DRT
Act, use of Lok Adalat
forum. Recovery Agents - RBI guidelines.
Elective Paper - VII : CO-OPERATIVE
BANKING
MODULE
- A : Principles and Laws of co-operative Banking Law and rules relating to
Co-op
Banks
Principles of Co-operation
- brief overview of structure of co-operative credit institutions -
Membership - Legal aspects
of banking operations - Banking related laws - Provisions of
Bankers Book Evidence Act
- Special features of Recovery of Debts Due to Banks and
Financial Institutions
Act, 1993 -Securitisation and Reconstruction of Financial Assets and
Enforcement of Security
Interest Act, 2002-The Consumer Protection Act, 1986 - Banking
Ombudsman
MODULE
- B : Co-operative Banking Operations
Deposits, Credit &
Investment Management
Different Deposit Products
- Deposit Policy - Credit Management Loans and advances -
Priority sector lending -
MSME financing - Personal Finance - Banker - Customer relations -
Garnishee orders and
Attachment orders, Bankers' right of lien, set-off and appropriation -
Indemnities and Bank
Guarantees; Loan Policy - Management of NPA - Investment
Management - CRR / SLR
Management - Financial Markets - guidelines of RBI / NABARD in
regard to investment -
Money Market - Call money - Repos and Reverse Repos - Foreign
Exchange Market - Debt
market - Bancassurance - Meaning and Scope of Investment Policy
MODULE-
C : Technology, Risk management
Technology Banking -
Electronic Payment systems / core banking solutions - Electronic funds
transfer systems - RTGS -
Risk Management - Exposure limits-Asset Liability Management -
Capital Adequacy -
Basel-II - Profit and Profitability - Approach of Banks to profitability -
Effects
of NPA on profitability -
A profitability Model
MODULE-
D : Supervisory and Regulatory aspects
Banking Regulation Act (As
applicable to Co-op. Banks) - Role of R.B.I. -Supervision
and control - Branch
licensing-Inspection / audit-Statutory / Reserve requirements -
R.B.I. guidelines on
Deposits, Advance, Priority sector lending, Weaker section lending,
Control Returns -
Recommendations of Marathe Committee, Madhav Rao Committee
and Vaidyanathan committee
- Role of Directors and Corporate Governance Best Practices -
Management Information
System.
Elective Paper - VIII : HUMAN RESOURCES
MANAGEMENT
Module
- A : Human Resources Management
1) Concepts, Policies and
Practices : Fundamentals of HRM; Importance of Human Capital,
Management of
transformation, New insights into HR Management and contemporary
issues, Relationship
between HRM and HRD; Structure and Functions, Policies and
Practices, Role of HRD
professional, Development of HRM in India.
2) Behavioural Dynamics in
organizations; Person - Job Fit, Group Dynamics, Group
Problem Solving and
effectiveness, Leadership and Team building, Change
Management, Human Response
- Implications of benchmarking; TQM, BPR, ISO 9000
Series and other techniques
for Organizational improvement and Management of
Service Industry; Quality
Circles. Six Sigma and its implication in organizational
development.
3) Organizational Change
and Development; Responsibility Charting, Conditions for
Optimal Success, Role of
Change Agent and Managing Change.
4) HRM in Banks :
Traditional Role of Human Resources Department in Banks,
Expectations from HR
Department, Conflict of new initiatives with work culture and
capacity, Major HRM
challenges facing Banks, Core Banking and HR challenges,
5) Knowledge management in
Banks; Need for Knowledge Management Officer,
Role in the Banks, HRM and
Information Technology, Information and Database
Management, Preparation
and updation of Manuals and job cards, Linkage with
Educational Institutions.
Module
- B : Building an HR strategy
1) Strategy Formulation
and implementation; Need for a distinctive HR strategy,
Formulating the strategy;
connecting strategy to organization, aligning HR Systems
with decision framework,
Relationship between Sustainable strategic success and
performance of the
organization, Execution of strategy : Role of CEO, Executive team,
and line Managers,
Succession Planning, HRD Audit, Effectiveness of HRD, Best HR
practices in banks.
2) Organizational
Communication; Barriers to Communications, Steps for effective
communication in the
organisation
3) Manpower Planning;
Recruitment, Selection, Placement and Promotion. Recruitment
Vs Outsourcing : Concept
and Feasibility of Outsourcing, advantages, disadvantages
and constraints,
Compensation; incentive system linked to productivity, dealing with
attrition.
4) Performance Management
and Appraisal Systems : Performance Appraisal System,
Role of P A S, Emerging
Trends, 360 degree performance Appraisal, Appraisal Vs
Feedback, Competency
Mapping, Key Performance Areas (KPA)
Module
- C : Motivation, Training and Skill Development
1) Human implications of
Organisations; Learning and instructions, Learning Processes,
Employee Behaviour, Theories
of Motivation and their practical implications, Motivational
strategies, Reward and
Incentive schemes, job enrichment, job rotation. Employee
Development strategies and
Techniques.
2) Training and
Development; Attitude development, Role and impact of training, Career
Path Planning and
Counseling, Changing face of Banking, Future of Bank Education,
Identification of Training
Needs.
3) Training Methodology;
subject matters of Training, Training infrastructure in Banks,
outsourcing of Training,
On - the job training, Management of conflict between Training
and operations due to
manpower constraints, Development of soft skills and
communications. Developing
competencies through e-learning, virtual learning and self
directed learning.
Training measurement and impact.
Module
- D : Personnel Management and Industrial Relations
1) The personnel functions
: Legal aspects of personnel functions, trade unionism and
Industrial Relations;
Industrial Relations and Negotiations in the Indian Banking Industry,
Collective Bargaining
Concepts; Bipartite Settlements in Banking, Employee Welfare;
Policies and Schemes.
2) Grievance Redressal and
Discipline; Mechanism and Processes, Discipline
Management including
Domestic Enquiry, Role of Management and Functions, Conflict
Management and Resolution,
Frauds in Banks, Risks attached to Delegation of Financial
Powers; Precautions and
Controls, Need for a vigilance Dept in Banks, Diversity and
Gender Issues, Dealing
with the cases of Sexual harassment.
3) Workers' Participation
in Management, Experience of Employee Participation in Indian
banking industry.
Elective Paper - IX : INFORMATION
TECHNOLOGY
Module
- A : Introduction to Information Technology
Impact of IT on Banking :
Changing Financial Environment and IT as a Strategic Response
Hardware (H / W) -
Software : (S / W)
System Software :
Operating Systems (Desktop
OS / Server OS) Windows (Desktop / Server) / UNIX (H. P. Unix,
Sun Solaris, Linux, IBM
AIX)
Computer Languages - 1st
Generation Languages (Assembly), 2nd Generation (Fortran,
Algol, Cobol), 3rd
Generation (C, C++, C# and JAVA etc.) and 4th Generation Languages
(Clipper, Power Builder,
SQL etc.) and 5th Generation Languages (Logic Programming
Languages)
Database Management System
and Relational Database Management Systems (Oracle10g,
MS SQL-2005, MySQL)
Application Servers
(Oracle 10AS, BeWeblogic, WebSheare )
Web Servers (IIS, Apachi
etc.)
Web Browsers (IE 7.0,
Firefox etc.)
Application Software :
Packaged Software, Custom built Software etc.
Computer Networks,
Equipment & Data Communication:
Computer Networks :
Network Layers, Topologies, Protocols, IP Address Mechanisms, LAN,
WAN, VLAN, Intranet,
Extranet, Internet,
Network Equipments :
Cables (BNC, Twisted Pair, Fibre Optics), Connectors, I/Os, Patch
Panel, Jack Panels,
Network Racks.
Data Communication : CLL,
Leased Lines, MPLS, VPNS, ISDN, Satellite Links, Wi Fi, Wi Max.,
Network / Security
Equipments: Modems, Hubs, Switches, Bridges, Routers, Firewalls, NIDS,
HIDS, IPS
Module
- B : Systems and Design
Systems Design &
Analysis(Data modeling, Entity Relationships, Generic Data Modeling,
Semantic Data modeling
Normalization( from 1st to 3rd and BCNF, 4th & 5th level of
normalization)
Software Development Life
Cycle (SDLC) - Various phases of SDLC, In-house / Out-sourcing,
Software Project
Management, Computer Aided Software Engineering (CASE) Tools.
System Architecture :
Clients (Hardware / Software), Servers (Hardware / Software). Client
Server Architecture, 3
Tier Architecture, N-Tier Architecture etc.
Data Warehousing - Data
Mining tools
MIS and Organization
Support Systems - DSS, EIS, GDSS, Groupware and Multimedia
Business Intelligence -
Expert Systems, Artificial Neural Networks (ANN)
Grid Computing,
Virtualization and Consolidation.
Module
- C : Applications in Banking
Centralized Banking System
/ Core Banking System / System Administration, Database
Administration,
Application Server and Application Administration, Network Administration,
Domains, ISPS, Hosting,
Data Downloads / Uploads, Band widths, Data Centre, Data
Storage Devices, Data
Backups / Restoration, Disaster Recovery Centre
Delivery Channels - ATM,
EFTPOS, Phone Banking, Internet Banking, SMS Banking, Mobile
Banking, Credit / Debit
Cards, Smart Cards
E-Mails, SMS alerts
E-Commerce - Secure
Electronic Transfer (SET), Payment Gateways (Credit card / Debit
cards), Authentication of
payments etc.
PKI - CCA, CA, RA, Digital
Certificate, Digital Signature, Non-repudiation of Origin, Nonrepudiation
of Receipt.
Service - Level Agreement
Module
- D : Security, Controls and Guidelines
Threats to Information
System : i) Physical (Insiders / outsiders) ii) Viruses, Worms, Trojan horse,
Malwares, Software bombs,
Phishing, Spoofing, Spamming, denial of service attacks etc.
Information System
Security Measures, Policy, controls, ISO, 17799, BS7799, IS4477, IS
Audit, BCP / DRP, IT Act
2000, Basel guidelines for E-banking, Various RBI Committee
Reports on Information
Systems.
IT
Service Delivery & Support : Service level management practices, Operations
management - work load
scheduling, network services management, Preventive
maintenance, Systems
performance monitoring process tools, techniques, Functionality
of hardware, software,
data base. Drafting of RFP, system specifications, SLAs,
Capacity planning &
monitoring, Change management processes / scheduled, emergency
in configuration of
production systems, application of patches, releases etc., Incident
& problem management
practices, System resiliency tools and techniques - fault tolerance,
elimination of single
point of failure, clustering.
Elective Paper - X : Treasury Management
Module
- A : An overview
1. Financial markets
2. Treasury
- Objectives of Treasury
- Structure and
organization
- Functions of a Treasurer
- Responsibility of a
Treasurer
Module
- B : Treasury operations
1. Liquidity Management -
CRR / CCIL / RTGS
- Objectives, sources and
deployment
- Internal control,
Netting
2. Cost centre / Profit
centre, integrated treasury, Planning & control, Risk analysis
3. Treasury instruments
Module
- C : Treasury & International Banking
- Global scenario and
treasury operations
- Exchange rate mechanism
- Dealing and trading
operations : control and orderly conduct, moral and ethical codes,
checks and balances
- Revaluation : Mark to
market and profit calculations, VaR (Value at risk)
- Components of
multi-currency balance sheet
Module
- D : Risk Management
- Treasury and investment
policy
- Structure : Front
office, Back office and Mid office
- Accounting, valuation
and exposure norms
A. Role of information
technology in treasury management
B. Regulation and
compliance
C. Internal & External
audit
Elective Paper - XI : Risk Management
Module
- A : An overview
a) Risk definition /
policies
- Risk Process-Risk Organization
- Key risks-Credit risk,
market risk, operational risk, liquidity risk, legal risk, interest
rate risk and currency
risk
b) Asset Liability
Management
- ALM Concept
- ALM organization
- ALCO techniques / tools
- Simulation, Gap,
Duration analysis, Linear and other statistical methods of control
c) Risk measurement &
Control
- Calculation
- Risk exposure analysis
- Risk management /
mitigation policy
- Risk immunization policy
/ strategy for fixing exposure limits
- Risk management policy
and procedure
- Risk adjusted return on
capital
- Capital adequacy norms
d) Risk management
- Capital adequacy norms
- Prudential norms
- Exposure norms
- Concept of Mid office
- Forwards
- Futures
- Options
- Strategies and Arbitrage
opportunities
- Regulatory prescriptions
of risk management
Module
- B : Credit Risk Management
- Introduction
- Basel-I
- Three pillars of
Basel-II and Capital for Operational risk
- Frame work for risk
management
- RBI guidelines on risk
management
- Risk rating and risk
pricing
- Methods for estimating
capital requirements
- Credit risk -
standardized approach
- Credit risk - advanced
approach
- Credit rating / credit
scoring and rating system design
- Credit Bureaus
- Stress test and
sensitivity analysis
- Internal Capital
Adequacy Assessment Process (ICAAP)
- Introduction to
structured products
Module
- C : Operational Risk
- Introduction, Basel-I
& II
- RBI guidelines
- Likely forms of
operational risk and causes for significant increase in operational risk
- Sound Principles of
Operational Risk Management (SPOR)
- SPOR - organizational
set up and key responsibilities of ORM
- SPOR - policy
requirements and strategic approach for ORM
- SPOR identification,
measurement, control / mitigation of pperational risks
- Capital allocation for
operational risk, methodology, qualifying criteria for banks for
the adoption of the
methods
- Computation of capital
charge for operational risk
Module
- D : Market risk
- Introduction and
definition
- Prescriptions of Basel-I
& II
- Liquidity risk
- Interest rate risk
- foreign exchange risk
- Price risk (Equity)
- Commodity risk
- Treatment of market risk
under Basel
a) Standardized duration
method
b) Internal measurement
approach - VaR
Module
- E : Risk Organization and Policy
- Risk Management Policy
- Inter - linkages to -
Treasury
- Credit
- ALCO
