Post-Graduate Diploma in Management

(Banking & Financial Services) 2021-23

Term I

Course Title: Introduction to Banking & Financial Services

By Prof N R Bhusnurmath

1
Course Description:

Introduction to Banking & Financial Services is an introductory course to kick-off the Post-
Graduate Diploma in Management (Banking & Financial Services).

Financial services both banking and non-banking have developed in India to cater to the evolving
needs of the economy and people. As through the world this evolution has been going on for
ages and now this sector caters to the financial needs of the retail (individuals) as well as the
businesses, small and large. From providing the individuals finances for white goods and houses
to providing financial products to facilitate businesses to insurance, the sector meets the many
and varied needs of people and firms.

At the end of the course, students should be familiar with the following financial services & products.

The course would be delivered in two parts- Banking and other financial services.
1. Financial System in India
2. Commercial Banking services and products
3. Business model of banking in India
4. Regulatory & Legal Aspects in Banking
5. Payment systems in India
6. Asset Financing, Leasing and Hire Purchase
7. Factoring Forfaiting and Bills Discounting
8. Housing Finance
9. Insurance
10. Venture Capital & Private Equity
11. Investment Banking
12. Mutual Funds

Learning Objectives:

The course will aim at achieving the above learning outcomes in alignment with the
goals of the PGDM program at IMT, especially the following:

a. Demonstrate technical and analytical capabilities in Indian and global context. [Goal
1.1]
b. Demonstrate effective communication skills. [Goal 1.2]
c. Critically analyze situations to suggest innovative future growth opportunities [Goal
3.1]
d. Demonstrate techno-savvy capabilities to manage integrated environments. [Goal 3.2]

Pedagogy:

The emphasis of the course would be on understanding the products and the business.
The pedagogy, therefore, will be a mix of lectures, case discussion, assignments and a
group project.

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 Reading Material
As there no single book which would cover the canvas of financial services with a focus on India, the
discussions in the class will be based on readings and cases. Readings and cases will be distributed to the
students

Reference Books
 Financial Services in India: Concept and Application (SAGE Texts) – by Rajesh Kothari
 Financial Services – by Dr R Shangmugham (Wiley)
 Financial Services – M. Y. Khan
 Financial Markets and Financial Services- Vasant Desai

Online Resources
http://www.rbi.org.in
http://www.bseindia.com
http://www.nseindia.com
http://www.sebi.gov.in
http://www.finmin.nic.in
http://www.moneycontrol.com
http://www.mca.gov.in
http://www.icai.org

Evaluation
Assessment Methods in Alignment with Intended Learning Outcomes
Students will be evaluated on the basis of case analysis, project, quizzes, class participation, individual
assignments, and end-term exam. The weightage given to each of these units is listed below:
Specific Assessment Method Weightage Intended subject learning outcome (2.1)
to be assessed
Group Assessment Methods 30%
Group Project Submission 30% Ability to analyse market data and give
recommendations to facilitate decision
making.
Individual Assessment Methods 70%
Class Participation & individual 10% Understanding of the concepts discussed in
assignment class
Individual quiz & assignment 20% Understanding of the concepts discussed in
class
End-term Exam 40% Understanding of concepts, markets,
practices and regulations.
Ability to apply these to business situations.

Note : The evaluation may be changed depending on the developments . Students will be kept informed

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 Sessions Plan
Part A

Session Topic Deliverables

1 Introduction Evolution of Financial Services & Products

2 Financial System in India Brief history of Indian financial system

3 Introduction to Banking
4 The Business of Banking
5 Bank’s Financial Statements
6 Regulatory Aspects in Banking
7 Legal Aspects in Banking
8 Payment & settlement System
9 Non Banking Financial
Services
Financial Institutions in India
Instruments, Markets & Regulators
Evolution of Banking History of Banking in
India
Banking Structure and recent developments
The Banking Business Model
Products & Customers
Revenue and expenses
Recent developments in banking
Balance Sheet of Banks
Profit & Loss
Source & Uses of Bank’s Funds
Why banks are regulated?
Risks in banking business
CRR, SLR & LCR
Banking Regulation Act
Banker –Customer Relation Ship Negotiable
Instrument Act
Anti Money Laundering
Role Of RBI
Clearing Corporation of India, NPCI
Credit Cards, UPI, Money Wallets etc
Definition Types of NBFC
RBI Regulations

10 Asset Finance Companies Leasing

(AFCs) Types of Leases Hire Purchase
Difference between Leasing & HP

11 Factoring & Forfaiting What is Factoring What is Forfaiting

Types of Factoring & Forfaiting

12 Housing Finance Housing Finance Companies (HFCs) RBI Regulations

13 & 14 Insurance Life & General Insurance Business models of

Insurance Pension Products

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15 & 16 Mutual Funds Mutual Funds structure in India Types of Mutual
Funds
Mutual Funds Business Model

17 Venture Capital & Private Venture Capital- Business Model Private Equity-
Equity Business Model

18 Investment Banking What is Invest Banking Investment Banking

Services
SEBI Rules for Merchant Banking
19 Wealth Management Services Personal Planning
Advisory services

20 Misc Financial Services Stock Broking

Credit Rating Agencies Financial Advisory Services
Depository Services
Online trading platforms
Online lending platforms
Peer-to-peer lending
Crowd funding