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IBS Hyderabad

Academic Year – 2014-15
Course Handout
Course Name: Bankin !anaement Semester: III
Faculty Name: Suryanarayan Mohapatra
Room No: 209 Wing No: F
Consultation Hours:
Mobile No: 991263843 !mail: "uryan#mohapatra$gmail#%om
Course "b#ecti$e: &hi" %our"e i" 'e"igne' to gi(e the "tu'ent a %omplete (ie) o* the entire gamut o* ban+ing
a%ti(itie" "tarting *rom ,peration" to -en'ing o* (ariou" type" loan". Re%o(ery Management an' /n%illary01ara
2an+ing /%ti(itie"#
%eanin "utcomes: /t the en' o* the %our"e a "tu'ent i" e3pe%te' to be rea'y to )or+ in a 2an+ a" an entry
le(el e3e%uti(e0Manager#
&ecommended Book: Bankin 'rinci()es and 'ractices by !r* !*+* ,o(inat-
C".&S/ ".0%I+/
NO CHAPTER &TOPIC FROM SYLLABUS HBS
Case
RBI
Document
IBSCRC Additiona
Mate!ia
Case
No
Sou!ce
" INDIAN FINANCIAL SYSTEM:
Natu!e and e#oution$ Roe o% %inancia
s&stem in economic de#eo'ment$ Indian
Financia s&stem(St!uctu!e) *Financia
ma!+ets$ inst!uments$ !e,uato!s and
inte!media!ies-
( Financia
Ma!+et
St!uctu!e
*"-
(( Re'o!t On
Cu!!enc&
and
Finance(
./"/
RBI
. BANKING SYSTEM IN INDIA0
O!i,in$ natu!e and st!uctu!e$ T&'es o%
Ban+s and t1ei! Functions$2Sc1edued
3an+s$ Comme!cia 3an+s$ Pu3ic secto!
3an+s$ '!i#ate secto! 3an+s *Od and ne4
,ene!ation 3an+s-$ co(o'e!ati#e Ban+s$
RRBs$ Loca a!ea 3an+s$ NBFCs$
Mutua& aided co(o'e!ati#e societies5$
RBI(t1e Cent!a Ban+( St!uctu!e$ Roe
and Functions o% RBI
( E#oution
o% Ban+in,
In India *.-
(
RBI
Brochure
(
(
Re'o!t On
Cu!!enc&
and Finance
(
(
RBI
RBI
6 SOURCES AND USES OF FUNDS IN
BAN7S 0 Basic st!uctu!e o% Ban+
Baance s1eet
( ( ( ( (
8 KYC NORMS OF RBI
VARIOUS TYPES OF CUSTOMERS
Indi#idua$ 9oint$ S'ecia t&'e o%
custome!s *mino!s$ Iite!ates$ Lunatics
$D!un+a!ds$ Pa!danas1in adies- HUF (
%i!ms ( com'anies ( t!usts ( societies (
:o#t; and 'u3ic 3odies Cont!actua
!eations1i's %o! #a!ious 3an+in,
t!ansactions
(
(
7YC
no!ms o%
RBI *6-
( (
RBI Maste!
Ci!cua! on
7YC No!ms

RBI
<
= DEPOSIT PRODUCTS:
T&'es De'osit P!oducts ( se!#ices
!ende!ed 3& Ban+s$ T1e '!ocedu!e to o'en
a de'osit account$ Nomination %aciit&$
De'osit insu!ance; Deduction o% ta> at
sou!ce$ O'e!ationa inst!uctions i+e
o'e!ations ?oint&$ se#e!a&$ ette! o%
mandate$ 'o4e! o% atto!ne& etc; Rene4a
and E>tension$ '!ematu!e e>tension o%
De'osits; Uncaimed De'osits; Settement
o% deat1 caims Cacuation o% Inte!est and
TDS; De'osit mi>$ Im'o!tance o% CASA
de'osits$ Cost o% De'osit$ Fi>ation o%
Benc1 ma!+ P!ime endin, Rate) and Ne4
Base Rate Mec1anism
(
(
(
Not just
Banking –
Making a
positive
difference in
customer’s
life
(
Model
Deposit
Products
and
Procedures
b Indian
Banks’
!ssociation
CLM
M@/AB IBSCR
C
B
A I N T E R N A L E C A L U A I O N*NCP("-
D RIGHTS AND DUTIES OF A
BANKER
Ri,1ts o% a Ban+(Lien$ Seto%% and
a''!o'!iation) Duties o% a Ban+e!( Dut&
o% Sec!ec& and Dut& to 1onou! c1eEues$
Ri,1ts and o3i,ations o% a custome!
(
(
(
(
A ne4 Ban+
Mana,e!Fs
Diemma *"-
(
(
Banker"
#ustomer
Relationship
CLM
M@/A=
(
IBSCR
C
(

"/ BANKING ACTIVITIES0
Retai 3an+in,$ co!'o!ate 3an+in,$
*G1oesae Ban+in,-) SME Ban+in,$
Ru!a Ban+in,$ Mic!o %inance$ Geat1
mana,ement*P!i#ate 3an+in,-$ T!easu!&
mana,ement$ Cas1 mana,ement se!#ices$
Me!c1ant 3an+in,$ Inte!nationa 3an+in,)
Note on
t1e
Ban+in,
Indust!&
*<-
( ( ( D(6""(
/""
HBS
"" NEGOTIABLE INSTRUMENTS0
Ne,otia3iit& #s; T!ans%e!$ Pa!ties to a
c1eEue$@B;E@P!omisso!& Notes$ saient
%eatu!es o% a c1eEue$ C!ossin,s and
endo!sements$ Pa&ment and coection o%
C1eEue$ Duties and !es'onsi3iities o%
'a&in, and coectin, 3an+e!('!otection
a#aia3e to 'a&in, and coectin, 3an+e!$
3ouncin, o% c1eEues and t1ei!
im'ications;
(
(
(
(
(
Cases
Decided 3&
a; Om3uds
man *8-
3;Consume
! Fo!um
*<-
Ne,otia3e
Inst!uments
Act("AA" *.-
(
a$ Negotia
bilit "
a
technica
l Note
b$ Is
Negotia
ble
Instrum
ents !ct
a Boon%
(
(
(
RBI
RBI

".
"6
CASH / LIQUIDITY MANAGEMENT IN
BANKS
( RBI
Maste!
Ci!cua!s
on
a; CRR@
SLR
3; P!io!it
&
Secto!
Ad#an
ces *=-
( ( ( RBI
"8 CREDIT POLICY0
C!edit 'oic& o% RBI$ si,ni%icance o% c!edit
'oic& %o! Ban+s$ E>'osu!e No!ms$ and
Dee,ation o% Po4e!s; C!edit cutu!e
(
RBI
Maste!
Ci!cua!s
on
E>'osu!e
No!ms
*B-
(
#redit
Polic in
Banks
( RBI
"<
LENDING ACTIVITIES:
P!inci'es o% endin,$ #a!ious c!edit
'!oducts@ Faciities$ C!edit A''!aisa$(
C!edit !atin,@ C!edit sco!in, c1a!t;
Automated C!edit a''!aisa mec1anisms$
A Note on
Ban+ Loans
*=-
(
(
(
(
Ma+in, a
Lendin,
Decision
*6-
CLMISC@/
/D(
IBSCDC
( D(.D"(
/.=
(
HBS
(
"= I N T E R N A L E C A L U A I O N*NCP(.-
"B PRIORITY SECTOR LENDING:
Cassi%ication and De%inition$ Ru!a
C!edit Dei#e!& mec1anism( Comme!cia
Ban+s@ RRBs@ LABs@Co(o'e!ati#e
institutions$ NABARD$ Mic!o%inance$
Financia incusion
YES BAN7
Mainst!eami
n,
De#eo'men
t into Indian
Ban+in,
*B-
( Latest RBI
:uideines
on P!io!it&
Secto!
C!edit
( D(6""(
/=6
HBS
"A RURAL BANKING AND MICRO
FINANCE
Re'o!t on
T!ends and
P!o,!ess o%
Ban+in, in
India
RBI
"D SME FINANCING:
Mic!o$ Sma$ Medium ente!'!ises H
de%inition and cassi%ication$ Go!+in,
ca'ita assessment( Na&a+ committee
!ecommendations$ A''!aisa$ monito!in,$
institutiona @ in%!ast!u!a su''o!t and
nu!sin, o% sic+ indust!ies
( ( Latest RBI
:uideines
on SME
Lendin,
RBI
./ RETAIL BANKING:
Basics o% !etai 3an+in, P!oducts and
se!#ices$ De'osit '!oducts$ Pe!sona$
Consume!$ Housin, oans$ Educationa
oans$ Pastic mone&$ :od Loans etc
( ( Model
&ducation
'oan Polic
b Indian
Banks’
!ssociation
." CORPORATE BANKING0
Natu!e o% co!'o!ate 3an+in, and !ecent
de#eo'ments$ muti'e 3an+in,
a!!an,ement$ Conso!tium %inance and
oan s&ndication; In%!ast!uctu!e %inance (
ta+eout %inancin,
( ( Latest RBI
:uideines
on
Co!'o!ate
Ban+in,
RBI
.. MERCHANT BANKING0 Mana,ement
o% Pu3ic issues0 Reasons %o! ,oin,
'u3ic$ and ei,i3iit& no!ms$ O%%e!
document and !e,uato!& %!ame 4o!+ %o!
'u3ic issues *SEBI no!ms-$ ma!+etin, o%
issues and 'ost issue acti#ities;
a; Motia
Os4a
Financia
Se!#ices
Ltd; An
IPO in
India *".-
(
(
(
(
(
(
D(A/B(
/D<
<6A.B
HBS
HBS
b. (oing
Public$
!dventure
s in
#apital
Markets
C
.6 NON FUND BASED SERVICES0
Lette!s o% c!edit and t&'es o% LCs$ Ban+
,ua!antees$ So#enc& ce!ti%icates$ etc;$
( (
(
(
(
a$'etter of
#redit
b$Bank
(uarant
ee
"
( (
RBI
.8 I N T E R N A L E C A L U A T I O N*NCP(6-
.< TECHNOLOGY IN BANKING0
Co!e Ban+in, (Tee! Mac1ines (
Cas1 dis'ense!s H ATMs$ Home
3an+in, *Co!'o!ate and 'e!sona-$
Eect!onic Pa&ment s&stems
ECS*C!edit-$ ECS*De3it- $EFT$
RT:S$ NEFT$ C1eEue t!uncation$
MICR tec1noo,&$ Tee ma!+etin,@
Mo3ie P1one 3an+in,$ DSA@DMA in
Ban+ Ma!+etin,
( (
Impact of
)echnolog
in Public
*ector
Banks
(
Ban+ Iuest(
Oct(Dec(
./"/
(
D(=/B(
/"/
IIBF
.= PARA BANKING SERVICES:
Remittance o% %unds0 D;D@MT@PO$
Coection o% C1eEues and D!a%t$
Cea!in, House$ Sa%e De'osit oc+e!s
and sa%e custod& a!tices$ Banc
assu!ance$ sae o% mutua %unds$
IPO@FPO sein,
Int!oduction
to Mutua
Funds *"<-
(
( (
(
(
(
D(6"/(
""B
(
HBS
RBI
.B LE:AL ASPECTS OF LENDIN:0
Documentation$ stam'in,$ e>ecution$
c1a!,e c!eation$ c1a!,e !e,ist!ation$
Limitation act
( ( #ardinal
Principles
of 'ending
IBSCR
C
.A RECOCERY MANA:EMENT0
Im'o!tance o% !eco#e!&$ !e'a&ment
cutu!e$ '!udentia no!ms(
Cassi%ication o% Assets$ Income
!eco,nition and '!o#isionin,$ CAR$
Secu!itiJation
Nu!sin, and Re1a3iitation o% oan
accounts
(
Latest RBI
:uideines
on
P!udentia
No!ms
(
RBI
.D
6/ PRECENTICE$ REMEDIAL AND
LE:AL MEASURES OF
( ( Ban+ Iuest(
Oct(Dec(
RECOCERY0
DRT$ Lo+ Adaats and SARFAESI
Act;
(
(
Innovation
s in
Recover
Manageme
nt
./"/
IIBF
6" CUSTOMER SERCICE0
:oi'u!ia Committee
!ecommendations$ Om3udsman
sc1eme; Consume! Fo!ums
(
(
T1e
Om3udsman
Sc1eme(
.//=
(
(
(
Damoda!an
and
:oi'u!ia
Committee
!ecommenda
tions
RBI
6. REGULATORY FRAME WORK0
P!o#isions o% RBI Act "D6<$ Ban+in,
Re,uation Act "D8D$ Base no!ms$
Onsite and O%% site su!#eiance$
statements and !etu!ns
(
(
Su'e!#ision
o% t1e Indian
Financia
S&stem
(
(
(
( (
BREP
@/.=
RBI
IBSCR
C
66 EMERGING TRENDS IN
BANKING:
Banking in
India"
Issues and
#hallenges
for the
+uture
Expectations from Students
a# Stu'ent" mu"t report to the re"pe%ti(e "e""ion" )ell be*ore the announ%e' time# -ate%omer"
)ill not be permitte' to 4oin the %la"" a*ter the "%he'ule' time# 5* late. the atten'an%e *or that
"e""ion )ill be mar+e' a" ab"ent#
b# Rea' the 6a"e Stu'y 0 material )ell prior to the %la"" 'i"%u""ion# 7e0"he i" al"o e3pe%te' to
rea' the %hapter in'i%ate' in the %our"e plan a" the *a%ulty 'ire%t"#
%# 5n the %la"" 'i"%u""ion "tu'ent i" e3pe%te' to parti%ipate a%ti(ely an' %ontribute to in'i(i'ual
an' group learning# !(aluation i" ba"e' on a%ti(e parti%ipation#
'# !(aluation i" a %ontinuou" pro%e"" at 52S# !(ery "tu'ent nee'" to be a)are o* the timeline"
gi(en in the "e%tion belo)# /b"en%e *rom the"e e(aluation" )ill mean non a)ar'ing o* mar+" in
that parti%ular %omponent
e# Where(er appli%able. group a""ignment" re8uire ea%h "tu'ent to %ontribute to the group e**ort#
&hi" enhan%e" group e**e%ti(ene"" an' lea'" to greater appre%iation o* )or+ing in group"#
*# Formal 're""ing i" "ugge"te' *or all "tu'ent"# 9o not roam in the a%a'emi% area0 atten'
%la""e" in %happal" 0 "hort" 0 in*ormal t "hirt"
g# Stu'ent" are e3pe%te' to "ho) high regar' an' appre%iation *or in %la"" 'i"%ipline an' 'e"i"t
*rom u"ing mobile phone"# &hi" 'i"turb" the %la"" ambien%e an' unne%e""arily 'i(ert"
attention o* other "tu'ent" a" )ell a" the *a%ulty member#
h# !a%h *a%ulty ha" been gi(en a "%he'ule' %on"ultation hour# :tili;e thi" time to meet the *a%ulty
an' %lari*y 'oubt" i* any. "ee+ e3planation" an' get mentore' i* nee'e'#
i# /tten'an%e i" %ompul"ory in all "e""ion"# 7o)e(er re*er to gui'eline" in your a%a'emi%
han'boo+ *or e3%eption"#
Evaluation Timelines
Keeping in line with continuous evaluation at IBS the following schedules have been drawn. Students are expected to
go through the dates / sessions mentioned and prepare accordingly.
Component Component
Number
xpected slot / due
date
!ar"s declaration by #eightage
Class $articipation % Session %% Session %& %'
Class $articipation & Session && Session &( %'
Class $articipation ( Session (' Session (% %'
Non Class $articipation % Session ) Session * %'
Non class participation & Session %+ Session %, %'
Non Class $articipation ( Session &- Session &- %'
nd exam .t the end of the semester -'
/otal %''
$erformance till !idterm will be announced by end of session No. %+ in each course which means each student will "now
his / her performance in one C$ and two NC$s. /he final result will be declared after the end examinations. Before
the student ta"es the end examination he / she will be aware of the progress in each course up to an extent of +' mar"s.
Students not ta"ing the evaluation according to the timelines mentioned above will not be given another opportunity
excepting in rare circumstances of extreme illness or hospitali0ation.
Brief profile of the Faculty Member
$rof. Suryanarayan !ohapatra is a 1aculty of 1inance at IBS2 3yderabad. 3e has extensive !anagement experience in
the ban"ing sector spreading over &4 years. 3e also served in an I/ Consulting company as .ssociate 5$ during
&'%'6&'%%.