MBA C 314

KLU BUSINESS SCHOOL COURSE HANDOUT 2012-2013 TITLE OF COURSE: LEVEL: SEMESTER OFFERED: NO. OF MODULES: Overview of Banking MBA III V SUBJECT AREA: NO. OF SESSIONS: CREDITS: Banking L: 3 3 T: 0 P: 0

PRE-REQUISITE COURSES, IF ANY: COURSE COORDINATOR: COURSE INSTRUCTOR: I M Ram Prasad I M Ram Prasad SECTION: A SECTION: B

1) Course Objectives: The Course gives the overview of Financial System , Indian Banking System , the present scenario, the different types of banks, products and services. 2) Scope: The course aims at providing the students with knowledge of the money, banking and the credit management sectors in the economy and their operational uses. 3) Course Syllabus: Unit I: Indian Financial System – The Financial System , Nature , Evolution and Structure, The functions of Financial Intermediaries , Financial Instruments , The Role Of Financial System in Economic Development , The Indian financial System. The Origin and Growth of Banking – History , The Indian Banking System , Commercial Banking in India , functions of Commercial banks , Challenges and trends in banking , Universal banking , CRM in Banks , Are banks dying?. Unit II: Sources and uses of Funds in a Bank: A Bank’s Balance sheet – Statement of Sources and uses of Funds, A bank’s Profit and loss Account, Books of Accounts in Banks. Deposit products – Types of bank deposits offered by banks, Interest rates offered on different types of deposits, Composition of bank deposits. Credit policy – Need for Credit policy , Components of Credit Policy , Credit policy pursued by the government , Credit culture. Lending Activities – lending Activity, Basics of Requirements for lending Unit III: Retail banking – retail Banking Scenario, Types of consumer Loans, Limitations of Credit Scoring. Corporate Banking- The nature of corporate banking, Developments in Corporate banking, Consortium finance, multiple banking Arrangements, loan Syndication, The Syndication process. Rural Banking – Sources of Rural Finance, Credit delivery Mechanism in Rural finance, Multi Agency Approach, Regional rural banks (RRBS), Service Area Approach (SAA), National Bank for Agriculture and rural Development (NABARD) Unit IV: Securitization – Meaning Securitization, Process of Securitization, Fee- based Services – letters of Credit – Bank guarantees, Subsidiary, Services, off balance Sheet Activities. Plastic money – introduction , parties to the transaction , Salient Features , concepts of a Credit Card , Distinction between credit card , charge Card , Debit card and Operational aspects , product Augmentation , Credit card business in India , the Emerging Scenario. Management of IPO – reasons for going public, management of public issues and initial public offerings, Marketing of Issues, Post, issue Activities.

Unit V: Regulatory Framework: RBI, Structure, Role of RBI, Banking Regulation and Supervision, Monetary policy, Banking Regulation Act – SEBI. Banking law and Regulations – Legal perspectives of banking, overviews of Laws Related to banking. Banking regulation Act, 1949 – Business of Banks, Business prohibited for banks, licensing of banking companies , Restrictions on loans and Advances , Management of banking Companies. 4) Learning Support: a) Recommended Text Book(s): 1. Indian Financial System, M. Vohra, Anmol Publications. 2. Banking Law and Practice in India, P.N. Varshney, Sultan Chand & Sons-24th Edition 2010. b) Reference Books:1. Financial Institutions and Markets- Structure, Growth and Innovations, L.M. Bhole & Jitendra Mahakud, Tata Mc Graw Hill- 5th Edition. 2. Bank Management and Financial Services, Peters S. Rose and Sylvia C. Hudgins, Tata Mc Graw Hill- 7th Edition. c) Journals to be referred: 1. International Journal of Bank Marketing. 2. International Journal of Central Banking. 5) Brief Session Plan: Module I II III IV V Schedule of Sessions Topic(s) Indian Financial System Sources and uses of Bank fund Retail, Corporate and Rural Banking Securitization, Plastic Money Regulatory framework Total No. of Sessions 06 07 07 07 06 33

6) Detailed Session Plan: Session No. Date 2/8 1 I The Indian Financial System Unit No. Content Topics to be covered Indian Financial System: Nature Evolution and Structure, The functions of Financial Intermediaries Financial Instruments
The Role of Financial system in Economic developments, The Indian Financial system.

Case Study

Reference

Chapter I

2

6/8 8/8

I

The Indian Financial System The Indian Financial System The origin and growth of Banking

Chapter II Chapter II

3

I

4

9/8

I

The origin and Growth of Banking History

Chapter II

11/8 5 13/8 6 I The origin and growth of Banking I The origin and growth of Banking

The Indian Banking system Commercial Banking in India, Functions of Commercial Banks Challenges and trends in Banking , Universal Banking, CRM in Banks , Are Banks dying

Chapter II

Chapter II

22/8 7 8 24/8 27/8 9

29/8 10 30/8 11 3/9 12 5/9 13 7/9 14 10/9 15 16 12/9

Case StudyIndian Bank and its Turn Around strategy (ICMR) 1 Placement Training- 1 Sources and Uses of funds in a Sources and Uses Bank: A banks Chapter II of Funds in a Balance sheet – III Bank statement of sources and Uses of funds A banks profit Chapter Sources and Uses and loss account, III II of Funds in a Books of Bank accounts in Banks Deposit Products Chapter types of bank IV II Deposit products deposits offered by banks Interest rates on Chapter different types of IV II Deposit products deposits, composition of bank deposits Credit policy Chapter V need for credit II Credit policy policy and components of credit policy Credit policy Chapter V pursued by the II Credit policy government, credit structure Lending Activity, Chapter Lending Basics of VI II Activities requirements of lending activity Case The Rise and Fall of Global Trust Bank ( ICMR)

Study2
7/9

17 18 19
14/9 11/9 12/9

Placement Training- 2 III III Retail Banking Retail Banking Retail Banking Scenario Types of Consumer Loans Limitations of credit scoring
Corporate Banking, The nature of Corporate Banking, Development of Corporate Banking

Chapter IV Chapter IV

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25/9

III

Corporate Banking

Chapter V

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26/9

III

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28/9

III

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III

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24
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III

Consortium Corporate Finance, multiple Banking Banking Arrangements Loan Corporate SyndicationBanking Loan syndication Process Rural BankingSources of Rural finance, Credit RRBs delivery mechanism in Rural Finance Service Area RRBs, NABARD Approach, NABARD

Chapter V

Chapter IV

ChapterIX

ChapterIX

25 26 27
10/10 5/10 9/10

Case Study3 Placement Training- 3 IV Securitization SecuritizationMeaning of Securitization process Fee Based Services, Letter of Credit, bank guarantees, Subsidiary, Services, Off Balance sheet Activities Plastic Money Management of IPO, Reasons for Chapter X

28
12/10

IV

Fee based services Fee based services Plastic Money

ChapterXI ChapterXI ChapterXII Chapter-

29 30 31
16/10 17/10

IV IV IV

going public
18/10

XII ChapterXII ChapterXII

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26/10

IV

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30/10

IV Case Study4 Placement Training- 4 V
2/11

Management of Public issues and Initial public offerings, Marketing of Issues , post , issue Activities

34 35 36
31/10 1/11

Regulatory Frame work Banking Regulations an Overview Banking Regulations an Overview

37
6/11

V

38
7/11

V

39

V

Banking Regulations an Overview

9/11

40
13/11

V

Banking Regulations act 1949

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V

Banking Regulations act 1949

Regulatory Frame work ; RBI Structure Role of RBI Banking Regulation and Supervision, Monetary policy Banking Regulation ActSEBI Banking law and RegulationsLegal Perspectives of Banking, Over view of laws related to Banking Banking Regulation Act1949-Business of Banks Business prohibited for Banks, licensing of banking companies, Restrictions on loans and advances, management of banking companies

ChapterXIII ChapterXIII ChapterXIII ChapterXIII

ChapterXIII

Chapter XIII

14/11

42 43 44 45
16/11 23/11 27/11

Case Study5 Placement Training- 5 Placement Training-6,7,8

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28/11

7) Self Learning Topics: Serial No. 1. 2. 3. Content Banks Loans Forms of Money Topics to be covered Are Banks Dying Loan Syndication process Plastic Money Source(s) of material Internet http://www.minneapolisfed.org/publication s_papers/pub_display.cfm?id=1139 Internet www.investopedia.com Internet www.business-standard.com

8) Teaching and Evaluation: a. Course(s) taught by a single instructor (theory) is referred to as single section course and course(s) taught by group of instructors in more than one section is referred to as multisection courses. b. The teacher for single section courses or associated with multi-section courses is referred to as Instructor. c. In case of multi- section courses, the team is led by an instructor known as Course Coordinator. For single section courses, an Instructor will be designated as Course Coordinator. Course Coordinator is also an instructor in multi-section course. d. A team of instructors, under the leadership of Course Coordinator, work together for meeting all requirements of teaching, evaluation and administrative aspects of the course. The Course Coordinator has the responsibility of conducting the course with the cooperation of all instructors in the team. e. Handout shall be given to the students on the first day of the class. f. Students will be assessed on continuous basis with a weightage of 40 per cent. The comprehensive examination carries a weightage of 60 per cent. 9) Evaluation Scheme: a) Continuous Assessment: Max Marks: 40 SR. COMPONENT DURATION WEIGHTAGE NO. Internal assessment Exams (Test1&2) 1. (75% of the higher score and 25% of the lower 1 ½ hours 15 score will be considered) Surprise Test - objective or descriptive 10 to 20 2. 5 (Best of the two tests will be considered) minutes 3. 1 Week 5 Assignment 4 5. i. Case Study/Reading Seminar Class attendance I Hr 10 5

Total 40 Two internal assessment exams will be conducted for all courses during the semester. The internal exams will be conducted for 30 marks which in turn will be scaled to 15 marks. The schedule of exams will be notified by the Principal. ii. Student’s attitude means, the student’s inclination, openness and fervor to learning and honoring the instructions of the faculty member concerned. Participation means, the student’s involvement in the class activities including answering the specific and overhead questions the faculty member puts from time to time during a session under interactive style of delivery in the class room or lab or an activity hall. Good behavior on and off the premises, punctuality and regularity in attending classes are the issues coming under discipline.

iii.

A Surprise Test is of objective or subjective nature decided by the faculty concerned and is conducted without prior intimation. There will be two such tests in a semester. iv. Home assignments (Written) are given in each course by the faculty member concerned. There will be one assignment in each semester in each course. The assignments shall be submitted before the deadline fixed by the respective faculty member. The defaulter shall lose marks allotted for that assignment and in no case, marks will be awarded retrospectively. v. Under case analysis exercise, students are given a case by the faculty concerned and students are required to analyze the case. Marks are awarded to each student separately based on the analysis. In case of computer related courses, computer programming exercise may be given instead of case analysis. vi. Live projects and Reading seminars will be implemented and evaluated as per the guidelines provided. vii. Class attendance is monitored by each faculty member and based on the percentage of attendance marks are awarded by the faculty member concerned. viii. In order to maintain transparency in evaluation, the answer sheets of all components should be shown to the students within one week of conducting the tests and quiz. If a student is not convinced with the marks awarded he/she can apply for recheck. However, the student can apply for recheck on the day of returning the answer sheet within the classroom only. ix. It shall be the responsibility of the Course Coordinator to display solution key on the notice board immediately after the evaluation component with evaluation scheme. The instructor should stick to the evaluation scheme announced while checking the answer sheets. x. Submission of final grades to the Examination Committee is the sole responsibility of the Course Coordinator. xi. A comprehensive examination of three hour-duration is held at the end of the semester for 100 marks. This carries a weightage of 60 per cent. b) General Structure of the Question Paper for the Comprehensive Examinations: S. Pattern Marks No. Section A: Questions based on concepts, theories, etc. shall be 1. included in this section. Each question carries one or two marks. 10x1=10 All questions are compulsory to answer. Section B: Question based on the application of concepts, models, 4 x 10 = 40 2. problem-solving, etc. would be included in this section. Students marks have to answer 5 out of 7 questions. Section C: Students have to write a written case analysis. There is 3 1 x 10=10 no choice provided. Total 60 marks

10) Attendance: a. It is mandatory for a student to achieve 75% attendance in each course. Failing to meet the minimum attendance requirements shall be cause for detention of a student from appearing for an examination in a course. b. A student has to attend all the continuous assessment components and other evaluation components conducted by the University. c. Attendance will carry 5 per cent weightage in each course. d. Marks will be awarded for attendance in each course as per following:

11) Chamber Consultation:

% of Attendance Marks awarded ≥ 95 5 ≥ 90 and < 95 4 ≥ 85 and < 90 3 Day Time ≥ 80 and < 85 2 ≥ 75 and < 80 From: 1 Thursday 3:00p.m. To: 4:30p.m.

Signature Course Instructor

Signature HOD

Signature Director