BA 4003

Banking Financial Services

HBS > Professional Electives > Banking Financial Services
Course ID
BA 4003
Level
Post Graduation
Semester
Semester III

OBJECTIVES:
• Grasp how banks raise their sources and how they deploy it and manage the associated risks
•  Understand e-banking and the threats that go with it.
•  Understand about other asset based and fund based financial services in India

UNIT I INTRODUCTION TO INDIAN BANKING SYSTEM AND PERFORMANCE EVALUATION
Overview of Indian Banking system – Structure – Functions – Key Regulations in Indian Banking sector –RBI Act, 1934/ 2006 –Banking Regulation Act, 1949– Negotiable Instruments Act 1881/ 2002 – Provisions Relating to CRR – Provision for NPA’s – Overview of Financial Statements of banks – Balance Sheet – Income Statement – CAMEL

UNIT II MANAGING BANK FUNDS/ PRODUCTS & RISK MANAGEMENT
Capital Adequacy – Deposit and Non-deposit sources – Designing deposit schemes and pricing of deposit sources – loan management – Investment Management – Asset and Liability Management – Financial Distress –Signal to borrowers – Prediction Models – Risk Management – Interest rate – Forex – Credit market –operational and solvency risks – NPA’s – Current issues on NPA’s – M&A’s of banks into securities market

UNIT III DEVELOPMENT IN BANKING TECHNOLOGY
Payment system in India – paper based – e payment –electronic banking –plastic money – emoney –forecasting of cash demand at ATM’s –The Information Technology Act, 2000 in India – RBI’s Financial Sector Technology vision document – security threats in e-banking & RBI’s Initiative.

UNIT IV ASSET BASED FINANCIAL SERVICES
Introduction – Need for Financial Services – Financial Services Market in India –NBFC – RBI framework and act for NBFC – Leasing and Hire Purchase – Financial evaluation – underwriting – mutual funds

UNIT V INSURANCE AND OTHER FEE BASED FINANCIAL SERVICES

Insurance Act, 1938 –IRDA – Regulations – Products and services –Venture Capital Financing –Bill discounting –factoring – Merchant Banking – Role of SEBI

TOTAL: 45 PERIODS

OUTCOMES:
• Understand the overall structure and functions of Indian Financial System
•  Gain knowledge about regulations governing the Indian Banking system
•  Price various types of loans proposed by banks to various prospective borrowers with different risk profiles and evaluate the performance of banks
•  Familiarise the students with the concept of e-banking
•  In-depth understanding of fee-based and fund-based financial services in India

REFERENCES :

1. Padmalatha Suresh and Justin Paul, “Management of Banking and Financial Services, Pearson, Delhi, 2017.
2. Meera Sharma, “Management of Financial Institutions – with emphasis on Bank and Risk Management”, PHI Learning Pvt. Ltd., New Delhi 2010
3. Peter S. Rose and Sylvia C. and Hudgins, “Bank Management and Financial Services”, Tata McGraw Hill, New Delhi, 2017