MBAF: 310 TREASURY MANAGEMENT

Time Allowed : 3 Hours M.M:70

Objective: The objective of this course is to analyze the major concepts, theories of

treasury management in logical and critical manner.

Course Contents:

UNIT-I

Scope and Function of Treasury Management: Objectives of Treasury, Structure and

Organization, Responsibilities of Treasury Manager, Function of treasury – Centralized

vs. Decentralized. Domestic Cash Management: Short Term/Medium Term Funding –

Meaning and Importance of Cash Management, Objectives of Cash Management, Cash

Flow Cycle, Cash Flow Budgeting and Forecasting, Electronic Cash Management

UNIT-II

Medium term and Long term Funding: FDs/NCDs/Term Loans, Securitization; Cost

Centre / Profit Centre: Financial Planning and Control, Capital Budgeting, Risk Analysis;

Liquidity Management: Objectives, Sources of Liquidity, Maturity Concerns: Projected

Cash Flow and Core Sources-Contingency Plans.

UNIT-III

Treasury’s role in International Banking: Changing Global Scenario and Treasury

Functions, Treasury Structure- Front and Back Office, Forex Cash Management –

Positions vs. Cash Flows- Funding Alternatives, Control of Dealing Operations – Trading

Limits – Trading and Operational Policy – Moral and Ethical aspects, Confirmations,

Revaluation Mark to Market and Profit Calculations.

UNIT-IV

Regulation, Supervision and Compliance: The Need and Significance of Internal and

External Audit, The Objectives, Role and Functions of Reserve Bank’s Supervision and

Exchange Control Departments, RBI requirements, Recent Developments in the Central

Bank’s Policy Framework.

Suggested Readings:

1. Steven M. Bragg , “Treasury Management: The Practitioner's Guide”, Willey Publication.

2. Robert Cooper, “Corporate Treasury and Cash Management”, Palgrave Macmillan

Publishers.

3. S.K. Bagchi, “Treasury Risk Management”, 2nd Edition, Jaico Publishing House

4. V. A. Avadhani, “Treasury Management In India”, Himalaya Publishing House

5. Indian Institute of Banking and Finance, “Theory and Practice of Treasury and Risk

Management in Banks” Taxman Publishers.

6. Indian Institute of Banking and Finance, “Treasury Management, Macmillan Publishers.

Note:

1. The list of cases and specific references including recent articles will be announced in the class at

the time of launching of the course.

2. The examiner is required to set nine questions in all. The first question will be compulsory

consisting of seven short questions covering the entire syllabus. In addition, eight more questions

will be set comprising two questions from each unit. The students shall be required to attempt five

questions in all selecting one question from each unit in addition to compulsory Question No. 1.

All questions shall carry equal marks.