Course Outline: Banking & Financial Services (FIN2125)

Area: Finance | Credit: 3

Programme: PGDM | Duration: | Term: IV
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Instructor’s Name :
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PART 1
INTRODUCTION
Banking and Financial Services sector is set to grow exponentially in India due to the
introduction of new products, innovation in technology, expanding distribution, networking
and increasing customer awareness of financial products. The banking sector plays
an important role in the economic development of any country. It is the most dominant segment
of the Indian financial sector.

The course is designed to provide the participants with an insight into the financial institutions,
specifically the Banks, their functions, services, working under various regulatory measures
combating various global challenges including the current COVID-19 crisis for orderly
functioning of the economy. It will additionally indicate how the Indian banking system and
the financial structure is impacted by international standards and systems.

Financial intermediation involves management of assets and liabilities as well as the inherent
risks in an efficient manner and building up confidence and trust of the stakeholders in the
system. The students will be coached on different facets of assets, liabilities and risk
management for prudent bank management.

Being a dynamic course aiming at a comprehensive study of the ever-evolving banking

domain, the students will be required to keep themselves abreast of the latest developments in
the monetary policies and regulations and relevant measures in both domestic and international
markets. Comprehending latest notifications of RBI, the regulator, is imperative. Students are
expected to participate in the classroom discussions, assignments, group projects and ensure
scholastic engagement on the discussion table.

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COURSE OBJECTIVES (CO)
The course aims at the following:

1. To get an overview of the Indian Financial system and specifically the Banking sector.
2. To have clear insight of the regulatory framework, various measures and reforms
pertaining to the functioning of the banks, the monetary and socio-economic policies,
all of which assist in ensuring catering to various financial needs of the economy in an
efficient manner thereby ensuring economic growth.
3. To have a clear understanding of credit monitoring, credit appraisal techniques, loan
pricing in the context of banking with concepts of risk management and sustained
profitability.
4. To understand in detail various risk management aspects of banking.
5. To comprehend Assets and Liabilities Management techniques in line with the
international standards.
6. To have a deep understanding about products and services innovation and support
services, technology trends in banking.
7. To comprehend customer relationship management (CRM) in the context of banking.
8. To have an idea about important concepts like Priority Sector Lending, Microfinance,
Retail Finance.
9. To understand the impact of COVID-19 on the banking sector and initiatives taken by
the Regulator or authorities to face the unprecedented challenges and streamline the
economy.

COURSE LEARNING OUTCOMES (CLO)

At the end of this course, students would be able to:

CLO 1: Acquire and have in-depth conceptual knowledge of the basics of Indian banking
system. (PLO1)
CLO 2: Examine and assess various aspects, policies and procedures of banking including
evaluation of the performance of banks, risk management, implications of monetary policy and
current reforms and developments in the sector. (PLO2)
CLO 3: Critically review and express their opinions about various facets and procedures of
banking including financial statement analysis, analysis of risk management framework,
reforms and developments in the sector to address opportunities as well as face various
challenges especially during trying times or periods of financial crisis, thereby being able to
explain the crucial role, implication and significance of the banking sector in the economy
from various perspectives. (PLO3)

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COURSE CONTENT
• Overview of the Indian Financial System
• Various Aspects of Banking for Comprehensive Understanding
• Banking Technology
• Customer Relationship Management in the Context of Banking
• Support Services in the Context of Banking

PRESCRIBED TEXT BOOK

TEXTBOOK

Management of Banking & Financial Services (4th Edition) by Padmalatha Suresh & Justin
Paul

OTHER READINGS AND REFERENCES

Principles & Practices of Banking, IIBF (5th Edition)
Handbook of Banking Information by N.S. Toor (50th Edition)
Credit Appraisal, Risk Analysis & Decision Making by Dr. D. D. Mukherjee (10th Edition)
Bank Financial Management, IIBF (Latest Edition)
Banking Principles & Operation by M.N. Gopinath (Latest Edition)

POLICY ON PLAGIARISM:
Plagiarism of any kind and to any extent would attract penalties. The assessment would be
‘zero’ for that particular component, with no further opportunity to improve. Repetition of the
offence would result in failure in the subject.

3
ASSESSMENT SCHEME AND WEIGHTAGE:
{a} END-TERM

Weightage Duration (in Open/Close CLO

Evaluation
(%) minutes) Book Tested

End-Term 30 120 Open CLO 3

{b} OTHER ASSESSMENTS

Sl. Unit of
Evaluation Item Weight Time CLO
No. Evaluation
Between 8 - 12 CLO 2
1 Assignments Individual 25
sessions
2 Quiz 1 Individual 10 Post 7th session CLO 1

3 Quiz 2 Individual 10 Post 15th session CLO 1

Project Report & NA

Presentation + 1
Individual
4 Case Study 20 20th Session
+ Group
Presentation &
Discussion
Class NA
5 Individual 5 NA
Participation

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 PART 2: SESSION PLAN
Session Topics Pedagogy Reading
Suresh & Paul: Chapter-1
Sections - IV, V;
The Indian Financial System & Banking
1 Lecture Principles & Practices of
System: An Overview
Banking (IIBF): Unit 1

Suresh & Paul: Chapter-1

Section - V Annexures,
Banking Sector Reforms, Lecture,
2 Principles & Practices of
Banking Regulation discourse
Banking (IIBF): Chapter 2

Lecture,
Monetary Policy, NDTL & Its discourse, Suresh & Paul: Chapter-2
Computation; Impact of COVID-19 on exercises Sec- I & II, Annexure I;
3-4
Banking System & RBI Initiatives (applications & Recent RBI Notifications
problem and Circulars
solving)
Lecture,
exercises
Suresh & Paul: Chapter - 3
5 Banks’ Financial Statements (applications &
problem
solving)
Risk Management in Lecture,
Banks (including overview exercises Suresh & Paul: Chapter
of IBC, SARFAESI Act), (application 11; Principles & Practices
6-7
Capital - Risk, Regulation based) of Banking (IIBF) Module
& Adequacy, Basel A, Unit 8
Accords

Quiz 1 (10% weightage)

Lecture,
8 Asset - Liability Management discourse Suresh & Paul: Chapter 12

Assignment 1 (Assignment 1 & 2: 25% weightage)

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 Suresh & Paul: Chapter –
Sources of Funds: Concepts, Deposit
9 Lecture 4, Sections: I, II. III, IV
Pricing, Importance of CASA

Uses of Funds: Concepts, Suresh & Paul: Chapter –

Lecture,
Credit Appraisal, Forms of Lending, 5; Principles & Practices
exercises
10-11 Principles of Lending, Loan Pricing, of Banking (IIBF):
(application
Profitability Analysis Module B, Unit 19,
based/problems)
relevant sections

Assignment 2 (Assignment 1 & 2: 25% weightage)

Retail Banking: Nature & Scope; Financial Suresh & Paul: Chapter –
Services: Credit Card, Housing Finance, 13, Sections II, III;
Lectures,
12-13 Consumer Loans, Personal Loans; Chapter – 17, Sections III,
Discourse
Customers Relationship Management IV; IIBF Module A, Unit
(CRM) 3.1; Module B, Unit 25
Suresh & Paul: Chapter
Innovation in Products & Services; 22; Principles & Practices
Case Studies,
14 Support Services of Banking (IIBF):
Lecture
Module D: relevant
sections
Priority Sector Lending & SME Financing; Principles & Practices of
Lecture, Case
15 Micro-Finance; Self Help Groups & Banking (IIBF): Module
Discussion
Financial Inclusion B, Unit 20, 22, 30

Quiz 2 (10% weightage)

Principles & Practices of

Modes of Charging Securities, Types of
Banking (IIBF): Module
16 Collaterals Lecture
B, Unit 27-28

Suresh & Paul: Chapter 7;

Principles & Practices of
Credit Monitoring; NPA Management:
Banking (IIBF) Module B,
17 Prudential Norms, Provisioning, Lecture
Unit 29, Current Reports
Resolution
of RBI and on other
platforms
Suresh & Paul: Chapter
Banking Technology, Business Process 16; Principles & Practices
18 Lecture
Re-engineering of Banking (IIBF) Module
C (Relevant portions)

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 Lecture
Guest Lecture on Contemporary Banking
19 (Specific Topic: NA
Practices/Services
TBD)
Case Discussion (Case: Bank of India:
Financial Reporting Policies) + Project
20 NA NA
Work & Presentation

PART 3: SUPPLEMENTARY INFORMATION

* Project & Other Details – Each group / team will be allocated a particular topic for in-depth
research and analysis. Each team has to submit a report on the completion of the 20th session.
Report should be maximum of 10 pages (12 font size with 1.5 line spacing). Presentations will
be during the 20th session (a ppt needs to be prepared accordingly based on the report).
Additionally, a case discussion needs to be carried out as well by each team. Topic will be
allotted in due course.
PLO MAPPING FOR THE COURSE
Addressed CLO
by No.
PLO# Program Objective
Course?
(Yes / No)
Application of Fundamentals CLO 1
PLO1 Traits: Demonstrate application of functional / conceptual knowledge Yes
to business situations
CLO 2
Problem Identification and Solution
PLO2 Traits: Demonstrate ability to identify a problem, critically assess Yes
various alternatives and suggest appropriate solution

Integrative Thinking CLO 3

Traits: Demonstrate ability to identify inter-linkages among functional
PLO3 Yes
areas within an enterprise and assess the impact of external
environment on its performance
NA
Effective Communication
PLO4 Traits: Demonstrate proficiency in Oral and Written Communication No

Ethical Responsibility NA
PLO5 Traits: Demonstrate awareness and assess impact of ethical behavior No
on business
Leadership NA
PLO6 Traits: Demonstrate capability to take leadership role in a business No
situation