Module 1

Module 1: Introduction to the Business of banking and financial – Services Management (6 hours)

1. Introduction to the course.
2. Indian Banking System:
   • Role as financial intermediary.
   • Role of money market.
   • History and reforms in Indian banking sector & classification of types of banks: Scheduled Commercial Banks (SCBs), Regional Rural Banks, Small finance banks.
3. Role of the Central Bank; analysis of monetary policy instruments & assessment of latest monetary policy announcement by RBI.
4. Global Financial Crisis: Origins, Causes and implications for banking sector Insurance services, Mutual funds, securities trading, universal banking and credit rating.

Module 2

Module 2: Banks Financial Statement Analysis (6 hours)

1. Analysis of Bank Financials: Analysis of Banks balance sheet using Ratio Analysis as a tool. Identify sources of banks funds & uses of funds

Module 3

Module 3: Tools for Management and Hedging against risk. (6 hours)

1. Managing credit risk: Management, treatment and credit risk models & mitigation.
2. Managing market risk, regulating bank capital: Approaches to VaR calculation, BASEL norms for prudential lending and capital adequacy.
3. Interest Rate and Liquidity Risk Management in Banks: Asset Liability Management (ALM) in a bank.

Module 4

Module 4: Providing Loans to Business and Consumers (6 hours)

1. 1. 1. Lending Business Firms and Pricing Business Loans: Lending concept and principles.
      2. Different types of corporate banking services loan products (Working Capital financing – Cash Credit and WCDL, Bill discounting; explanation of each product).
      3. Consumer Loans, Credit cards and real estate lending.
      4. Credit appraisal process and credit delivery in banking.
      5. Credit Monitoring, sickness and review
         • Triggers of financial distress
         • Debt restructuring and rehabilitations of sick units.
      6. Altman’s Z Score.
      7. Retail Banking: KYC, retail lending free – based products.

Module 5

Module 5: Global trends in Banking and Financial Services (6 hours)

1. Foreign exchange and trade finance, Future of Banking and Financial – Services.
2. Group Project Presentations.

Course Description

Market for financial services is rapidly changing around the world. Banks are the oldest and most familiar financial institutions, which continue to change and adapt to the new ways of doing business in this technology driven times. This course provides a comprehensive understanding of financial service industry and the role of banking in this industry. The course covers topics including the principal services provided by banks, how they are regulated by governments and role of central banks in a country, their performance evaluation and challenges faced by them in the global economy today.

Course Outcomes& Learning levels

By the end of this course students will be able to:

1. Evaluate the role of central bank and monetary policy regulations.
2. Analyze the performance of banks based on measures studies in the course.
3. Prepare a case study based on a banking crisis of recent past.
4. Identify different kinds of risks that banks undertake in their day-to-day activities.
5. Determine the criteria and priority set for different types of customers and loans provided by banks.
6. Identify future trends in financial services with a global perspective.

Evaluation Pattern

*Based on assignments / Tests / Quizzes / Case Studies / Projects / Term paper / Field visit report.

Recommended Texts & Reference Books/ Materials:Text Book:

1. Management of Banking and Financial Services (4th Edition) – Padmalatha Suresh & Justin Paul, Pearson.

Reference Book:

1. Peter S Rose and Sylvia C Hudgins, Bank Management and Financial Services. McGraw Hill Education.
2. Kanhaiya Singh and Vinay Dutta, Commercial Bank Management. McGraw Hill Education.
3. Annual reports of various Banks in India and Speeches made by RBI Governor and Deputy Governors.
4. Students are expected to follows news related to the course in various newspapers including Mint, Business Line, Business Standard, Financial Express, Economic Times.