IBS Hyderabad (Academic Year 2022-23)

Course Handout
Program MBA
Course Code SLBK 603
Course Title International Banking Semester IV
Faculty Name D. Sreenivasa Chary Room No F-208
Mobile No 9849709741 Email dschary@ibsindia.org
Consultation Hours (Day/time): Wednesday, 2:00-3:00pm

Program Outcomes (PO):

At the successful completion of the MBA Program, the students are expected to achieve the following
outcomes.
PO-1 Critical Thinking
PO-2 Effective Communication
PO-3 Social Interaction
PO-4 Effective Citizenship
PO-5 Ethics
PO-6 Environment and Sustainability
PO-7 Self-directed and Life-long Learning
PO-8 Initiative/Leadership
PO-9 Employability
PO-10 Teamwork
PO-11 Cross-Functional Skill Development
PO-12 Demonstrate Mastery in Analytics

Course Description:
The course provides an idea about the routine activities of a foreign exchange designated bank
branch. It covers various types of non-resident accounts, exchange rate determination for various
types of foreign exchange transactions, exchange and trade control in India, trade finance, investment
opportunities in India etc. It provides knowledge and skills to students, so that they can handle
matters related to trade credit as an entrepreneur and an intrapreneur.

Course Objectives:
The course is designed to –
 Appraise the students about the international monetary system and international banking
operations
 Outline the constituent elements of foreign exchange market in India and abroad
 Formulate exchange rates for different customer transactions.
 Assess the risks involved in international trade transactions
 Sketch the regulatory framework for international banking operations in India

Course Learning Outcomes (CLO):

At the end of the course, the student shall be able to –
CLO-1. Comprehend the day-to-day activities in a foreign exchange designated bank
branch.
CLO-2 Assess and analyzer international financing decisions
CLO-3 Determine and forecast exchange rates
CLO-4 State the measures to be taken to mitigate risks in international transactions and
take advantage of opportunities in the global markets.

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 IBS Hyderabad (Academic Year 2022-23)

.
Course Learning Program Outcomes Pedagogy Assessment
Outcomes (CLO) (PO)
CLO-1 PO-1, PO-8, PO-9, PO- Lecture, Excel Quizzes, Assignments
11. Workbooks
CLO-2 PO-1, PO-2, PO-7, PO- Lecture, Case Method, Case Analysis
11 Excel Workbooks
CLO-3 PO-1, PO-2, PO-3, PO- Case Method, Excel Problem Solving &
5, PO-6, PO-10, PO-12 Workbooks, Data Based Presentations
Insight
CLO-4 PO-1, PO-2, PO-9, PO- Case Method, Excel Case Analysis & Live
10, PO-11. Workbooks, Practice Projects
Insight Videos

Recommended Text Book:

Foreign Exchange Practice, Concepts & Control: by C. Jeevanandam16th Edition, Sultan Chand
& Sons

Suggested reference books:

International banking operations by Indian Institute of Banking and Finance, 2nd edition, Macmillan
publications.

Digital Resources:

A] ACADEMIC/NPTEL/SWAYAM:
S. Course Title & Link Proposed by
No. (Proessor/Institute)
1 International Business Prof.Sushil Vachani
https://www.edx.org/course/international-business-environment-and- IIM Bangalore
global-stra
2. Exchange Rate Mechanism IIBF
https://www.youtube.com/watch?v=_xRyblnP-Yk
3. International Banking Services IIBF
https://www.youtube.com/watch?v=l6D4NDr59r8

B] INDUSTRY INSIGHT:
S. No. YouTube Video Title & Link Speaker/Event/Organization
EXIM Policy Videos / Publications / Resources
1
https://www.eximbankindia.in available on the site
Monetary Policy Statements Governor, RBI
2.
https://www.youtube.com/watch?v=NyWxYFe8slU
UCPDC-600 Yogi Channel
3.
https://www.youtube.com/watch?v=OqwaLCm-A6E

C] DATA INSIGHT:
S. No. Resources Weblink
1 Reserve Bank of India. Rbi.org.in
2 Indian Institute of banking & finance http://www.iibf.org.in/

3 Ministry of Commerce and Industry https://commerce.gov.in/trade-

promotion/foreign-trade-policy-and-procedure/

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 IBS Hyderabad (Academic Year 2022-23)

4 Director General of Foreign Trade https://www.dgft.gov.in/CP/

5 ECGC Limited https://main.ecgc.in/english/

D] OTHER RESOURCES:
S. No. Resources Weblink
1. Bank Quest (Articles) http://www.iibf.org.in/
2. RBI Annual Report Rbi.org.in
3. Trends & Progress in banking Rbi.org.in
4. RBI Master Circulars / Directions Rbi.org.in

Digital Tools:
Software/Packages: MS Office especially MS-Excel (whichever is applicable)

Detailed Session Plan:

Sessi TOPIC LEARNING CASE DETAILS Chapter
on OUTCOMES
01 Introduction to  Become familiar
International with Globalization
banking concept and
understand
significance of
international trade.
 Appreciate the role
of international
banking in the
economy of a
country.

02 Foreign  Conversant with the

Exchange international foreign
Foreign Exchange Markets
Market in India exchange markets,
and Transactions
and abroad their timings,
HBS Case: 9-205-
players,
016
intermediaries,
regulators etc.
03 International  Conversant with the World Trade Organization
Financial organization and HBS: 9-703-015
organizations functions of WTO (Background Note)
and trade blocks International institutions
 Appreciate the roles HBS: 9-796-116
of IMF, IBRD, BIS, (Background Note)
IFC, ADB, etc. in
international
finance
04 International  Understand the The economic gains from
Trade theories importance of trade- Comparative

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 IBS Hyderabad (Academic Year 2022-23)

international trade advantage:

and exchange HBS 9-796-183
system (Background Note)
 Explain the essence
of theories of
international trade.
05 Balance of  Comprehend the Reading the Balance of
Payments BOP statement, its Payments
constituent HBS: 9-705-02
elements, and (Background Note)
analyze them
06 International  Become conversant A glance at the web site of
banking products with the deposit, any forex designated bank
and services loan and service branch, to know
products offered by
a foreign exchange
designated bank
07 Correspondent  Appreciate the need
banking for correspondent
banking
relationship and
understand the
different services
provided by the
correspondent
banks
08 Day to day  Elucidate the A glance at the web site of
Foreign various transactions any forex designated bank
Exchange in a foreign branch, to know the
transactions in a exchange transactions and application
Designated Bank designated bank of applicable exchange rates
branch branch like
Currency /. T.C
purchase and sale;
opening of L.C,
Negotiation/
purchase /collection
of export bills etc.,
 Ascertaining the
different exchange
rates applicable for
different business
transactions
09 Basics of  Understand the two Solving the practical
Exchange ways quotes for problems in the class

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 IBS Hyderabad (Academic Year 2022-23)

Arithmetic various transactions

and their
constituent
elements there in
10 Exchange rate  Calculate exchange Solving the practical
determination for rates for export and problems in the class
Export and import trade
Import transactions and
transactions and cancellation there
their cancellation of
11 TEST 1 Sessions 1-10 Chapters 1-5,12,32

12 Exchange rate  Calculate exchange Solving the practical

determination for rates for export and problems in the class
Forward other than trade
contracts and transactions and
their cancellation cancellation there
of
13 Rollover of  Compute the payoff Solving the practical
contracts for rollover of problems in the class
forward contracts
14 Salient features  Comprehend the
of FEMA FEMA regulations
related to Non-
resident accounts,
remittances in and
out of India, and
foreign investments
15 Non -Resident  Conversant with the
Accounts opening and Accounts in India by Non-
operations in the Residents (www.rbi.org.in)
non-resident
accounts
 Compare and
contrast the NRO,
NRE, FCNR
accounts
 Understand the
need for opening
the RFC account
16 Foreign currency  Explain the opening RBI Master circulars
accounts for the and maintaining the
resident Indians RFC D, EEFC,
DDA and other
foreign currency

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 IBS Hyderabad (Academic Year 2022-23)

accounts permitted
to be opened by
resident Indians
Remittance of  Comprehend the RBI Master circulars
17 Foreign remittance facilities
Currency available to NRIs
 Understand the
remittance facilities
available to resident
Indians
18 International  Describe the Protecting Foreign Investors
Capital Flows foreign investments HBS: 9-706-044
in India, and (Background Note)
analyze their
differentiating
features
19 Methods of  Understand, the
settlement in different methods
International of settlement of
Trade and INCO international trade
terms transactions like Note on International Trade
advance payment, Finance.
direct export, HBS: 9-211-007
Collection of Bills, (Background Note)
letters of credit etc
 Able to explain the
significance of
INCO terms
20 Exchange and  Appreciate the Export and Import of goods
Trade control method of exchange and services
mechanism in control by RBI and (www.rbi.org.in)
India trade control by
DGFT
21 TEST 2 Sessions 12-20 Chapters
5,12,17,18,23,30,31, and
Reading material
 Define a Noble Group
22 documentary credit, HBS Case :9-210-021
Documentary and state the
Credits different types of
letters of credits and
the various parties
to a letter of credit
 Describe the L.C
Mechanism

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 IBS Hyderabad (Academic Year 2022-23)

23 Negotiation of  Conversant with the Practical exercises

documents under salient features of
L.C UCPDC-600
 Precautions to be
taken while
negotiating
documents under
L.C
24 Bank Finance for  Able to explain Financial assistance to
Exports and packing credit, Exporters and Importers:
Imports import loan, http://www.eximbankindia.i
discounting n
&purchase of bills
etc.,
25 Incentives to  Enumerate the RBI master circular
Exporters various benefits
available to exports
26 EXIM Bank  Understand the role Exim Bank web site
of EXIM Bank in
promotion of export
27 Risk  Elucidate the
Management in different types of
International risks in
Trade international trade
28 Credit risk  Explain the A note on credit Derivatives
Management importance of HBS: 9-205-111
foreign exchange (Background Note)
derivatives and
credit derivatives in
International trade
29 Insurance and  Appreciate the role
risk management of ECGC in Export
trade
 Understand the
importance of
marine insurance in
export trade
30 Alternate sources  Examine; A note on Depository
of finance to Factoring, Receipts
Exporters Forfaiting HBS: 9-803-026
ADR, GDR, etc. as (Background Note)
alternate sources
for export finance.
31 Test 3 Sessions 22-30 Chapters:
7,10,11,19,24,27,28,32,33

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 IBS Hyderabad (Academic Year 2022-23)

32 Basel norms on  Explain the impact Trade finance treatment

trade finance Basel Capital under Basel norms
norms (Basel I-II www.bis.org
/III) and leverage
requirements to
trade finance by
banks
33  Comprehend the Latest Exim Policy
Foreign Trade salient features of (www.eximin.net)
Policy of India the foreign trade
policy of India.

Local/National/International Perspective:

Session Mapped Topic(s) in

Article/Case/Minor Project Pedagogical Tool
No. Session Plan

26 International Banking Current Exchange rates sheet of a Bank Simulation

Case: Risk management at Wellfleet
Risk Management in
32 bank- all that glitters is not gold HBS:9- Discussion
Banks
110-011

SDG Sensitization:

Session Mapped Topic(s) in

Topic Specific Learning Outcomes Pedagogical Tool
No. Session Plan
8,9,10, Exchange Rate
Quality Education Group Discussion
12,13 Mechanism

Data Based Insight:

RBI Master Circulars and Master Directions, Guidelines for international trade by Ministry of commerce and
industry, case laws on international trade.

Evaluation Scheme and Timelines:

Keeping in line with continuous evaluation at IBS the following evaluation schedule has been drawn. Students
are expected to go through the dates / sessions mentioned and prepare accordingly.

Component Expected slot Marks

Component Weightage
Number / due date declaration by
Test - 1 1 11 13 20
Test - 2 2 21 25 20
Project Report 3 31 33 10
Class Participation 4 33 33 10
End Exam At the end of the semester 40
Total 100

Expectations from Students:

a. Students must report to the respective sessions well before the announced time. Latecomers will not
be permitted to join the class after the scheduled time. If late, the attendance for that session will be
marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the
chapter indicated in the course plan as the faculty directs.
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 IBS Hyderabad (Academic Year 2022-23)

c. In the class discussion student is expected to participate actively and contribute to individual and
group learning. Evaluation is based on active participation.

Use and Adoption of Software/Analytical Tools/Packages:

All the software/analytical tools/packages subscribed by the institute can be used widely for regular learning
and also project work. The institute offers access to various online databases through KNIMBUS platform.
Any other tools/packages to be used shall not infringe copyright of the provider.

Plagiarism policy:
Any infringement of copyright/patent/trademark is not appreciated and shall be viewed seriously. The students
are suggested to take proper help/support from the faculty members in this regard. So that students don’t get
into this infringement aspect either knowingly/unknowingly.

Project Work/Report Guidelines:

 A group of Projects are suggested to the students in a Google sheet.
 Each student can select a project of his / her choice.
 The projects are normally related to cases on UCPDC, INCO Terms, Exchange rate determination,
Non-resident accounts, Negotiation of documents under LC, etc.
 The students are supposed to cull data from authentic sources like RBI/ICC/ Case Laws etc.
 The project work is assigned after Test -1, but The final report is to be submitted at the end of 30th
session.

***************************End of International Banking********************

9
 ICFAI BUSINESS SCHOOL, IFHE, HYDERABAD
MBA SEMESTER – IV
Course Handout (AY 2022 – 2023)

Course Mergers & Acquisitions Total Credits 3

Name of the Faculty Member Abhishek Sinha Room No F -215
Email Id abhisheksinha@ibsindia.org Mobile No 8019104234
Consultation Hours 8.30 to 9.15 (TUE)

Course Objectives:

Mergers and Acquisitions continue to be amongst the preferred strategic options available to the companies seeking to grow and
prosper in the rapidly changing global business scenario. The objectives of this course are two-fold. First, the course is intended to
provide a comprehensive background in the strategic, economic, financial and organizational aspects of mergers, acquisitions and
divestments. Secondly, the course will seek to provide a practical framework for managerial decision making in the context of
acquisition activities, (for example, the determination of exchange ratios between the common stocks of the acquired and acquiring
companies). It will feature inputs from contemporary readings and popular case studies on the subject.

Learning Outcome:

This course focuses on the major aspects of mergers and acquisitions as well as other corporate restructuring transactions: deal
strategy, deal analysis, and deal design. We will cover the reasons why these transactions are done, the mechanics of the transactions,
the valuation of the firms involved, various aspects of deal structure, and the roles of the parties involved. As such, this course allows
the students to pull together material covered in previous finance courses, while also linking financial decision-making with the
overall strategy of the firm and dabbling in law, accounting, and organizational behavior.

Recommended Text Book:

 Mergers, Acquisitions, and Other Restructuring Activities: An Integrated Approach to Process, Tools, Cases, and Solutions -
Donald DePamphilis (Academic Press), 9th edition

Page 1 of 6
Session Plan:

Sessions Detailed Syllabus Chapters in Cases / Papers to be Discussed Videos and other resources
the Text
Book

1-2 Introduction to Mergers and Chapters 1 1. Stanley Black & Decker, Inc. https://www.youtube.com/watch?v=W
Acquisitions environment. (211067-PDF-ENG) (HBS Case) BHzCDgEtVQ
Participants in the Mergers
and Acquisitions Process. Do
M&As pay off for share-
holders, bondholders and
society?

3-6 Economic rationale of
mergers.Common
motivations for Mergers and
Acquisitions (Theories of
mergers), Merger Strategy,
Synergy considerations,
Regulatory considerations.
Chapters 1 1.Chase Manhattan Corp.: The Making of https://www.youtube.com/watch?v=D
and 2 America's Largest Bank _7i87DqEvk
298016-PDF-ENG (HBS Case)
2. Assessing Procter &Gamble’s Acquisition
of the Gillette. (DePamphilis Case 1.2)

7-9 M&A Process-The steps: Chapters 4 1. Exxon Mobil Buys XTO Energy in a Bet https://www.youtube.com/watch?v=L
The ten phases: Building the and 5. on Natural Gas. USA pgBGO0aO-Y
Business and the ( DePamphilis Case 5.2)
implementation plans, Search
and screening, Negotiation,
Due diligence, developing the
integration plan, Closing,
Implementing Post closing
integration and Conducting a
Post-closing Evaluation. Role
of HR and cultural issues in
merger success.

Page 2 of 6
 CP Test-1

10-12 Integration: The Role of Chapter 6 1.Be https://www.youtube.com/watch?v=g

integration in Successful 1. The Royal Bank of Scotland: Masters of G9xNElFzRk
Mergers and Acquisitions, Integration
Viewing Integration as a 404026-PDF-ENG https://www.youtube.com/watch?v=R
Process. ( HBS Case) fgYDZ4U2i0
13-16 Merger and Acquisition Chapters 7, 8, 1. Acquisition of Cadbury by Kraft: How https://www.youtube.com/watch?v=y
valuation, Analyzing risk, 9 and 10. Sweet is the Deal? (ICMR Case) MlT4qSB8jw
Calculating free-cash flows,
Alternative approaches to
valuation Applying income or
Discounted cash flow (DCF)
methods. Applying Market-
based (Relative Value)
methods. Estimating market
value of firm’s debt. Valuing
firms under special situations.
Valuing synergies. Valuing
options. Real options and
their impact on
M&As.Valuing liquidity and
control.
17-18 Financial Modeling Basics – Chapter – 9 1.AT&T’s acquisition of NCR https://www.youtube.com/watch?v=K
for valuations 195239-PDF-ENG Rofnruubjk
(HBS case)

CP Test-II

Page 3 of 6
19-23 Deal structuring. Choosing
the form of payment and
financing. Deals that are
immediately taxable to the
selling shareholders.
Framework for structuring the
terms of exchange: Finding
the win-win deal. Exchange
ratio implications.
Chapters 11 https://www.youtube.com/watch?v=d
and 12. Mahindra Satyam Merger with Tech 1GVWsJUFy8
Mahindra: Arriving at the
Share Exchange Ratio (ICMR Case)
Evaluating M&A deals: Floors, caps and
collars.
( 209138-PDF-ENG )
(HBS case)

24-26 Leveraged buyout structures Cha3`pter 13 1.Valuing a cross border LBO: Bidding on the https://www.youtube.com/watch?v=C
and valuation. Overview. Yell Group 1zuu8LBtzc
Common forms of LBOs. 204033-PDF-ENG
Critical success factors. (HBS Case)
Analyzing LBOs. 2.Kinder Morgan,Inc- Management
Buyout(HBS case) 207123-PDF-ENG

27-28 Corporate Takeover market: Chapter 3 1. Evaluating M&A deals-How Poison Pills
Takeover tactics and Anti Work (HBS case)
takeover defenses. 208061-PDF-ENG

CP Test-III
29-30 Share repurchases Chapter 3 https://www.youtube.com/watch?v=N
TOpui17Ku4

31-32 Alternative business and Chapters 16 1.Determining Ownership Distribution in a https://www.youtube.com/watch?v=n

restructuring strategies. and 17 Joint Venture(DePamphilis case 14.1) khYG9wqGFQ
Critical success factors for
Business Alliances. Strategic
and operational plans,
Resolving Business Alliance

Page 4 of 6
 Deal-structuring issues.
33 Cross- border M&As, Chapter 18 1.Wal-Mart’s International Strategy Illustrates https://www.youtube.com/watch?v=N
Structuring and Financing the challenges and the Potential of Global mSTTYH1Mgg
Cross-Border Transactions, Expansion(DePamphilis case 17.3)
Valuing cross-border
transactions.

Reference Books:

1. Mergers, Acquisitions and Corporate Restructurings (MAC): Patrick A. Gaughan(Wiley M&A Library)(Sixth Edition)
2. Mergers, Restructuring and Corporate Control: Weston, Chung, Hoag (Prentice Hall)
3. Harvard Business Review on M&A: HBS Press

Page 5 of 6
Evaluation Plan

Component Weightage Remarks Due after session Evaluation due after session
CP 10% 33
NCP Test – 1 15% 10 13
NCP Test – 2 15% 20 23
NCP Test – 3 20% Project Work 30 33
End Semester Exam 40%
100%

*Project work will begin after the Test-2 and will run along with scheduled sessions, making scope for continuous learning and
feedback. It will require students to work on real world M&A problems and developing solutions for valuation, due diligence and
raising finances, and will have flavors of companies in manufacturing and services industries, and early stage businesses.

Components of the Project work and their respective weightage are as follows:

 Application of tools and frameworks of analysis – 5

 Development of financial model – 10
 Report/Memorandum writing – 5

******************************************End of Mergers & Acquisitions***************************************

Page 6 of 6
 IBS Hyderabad (Academic Year – 2022-23)

Course Handout
Program : MBA
Course Code : SLF1609
Course Title : Portfolio Management and Mutual Funds
Semester : IV
Faculty Name : Dr. M. V. Narasimha Chary
Cabin No: F-206
Consultation Hours (Day/time): Thursday, 3:30-4:00pm
Mobile No: (+91) 9849039664
Email: chary@ibsindia.org

Program Outcomes (PO):

At the successful completion of the MBA Program, the students are expected to achieve the following outcomes.

PO-1 Critical Thinking

PO-2 Effective Communication
PO-3 Social Interaction
PO-4 Effective Citizenship
PO-5 Ethics
PO-6 Environment and Sustainability
PO-7 Self-directed and Life-long Learning
PO-8 Initiative/Leadership
PO-9 Employability
PO-10 Teamwork
PO-11 Cross-Functional Skill Development
PO-12 Demonstrate Mastery in Analytics

Course Description:
Understanding the fundamental principles and the dynamics of the stock picking aspect and risk diversification
process is very important. The course would enhance the conceptual knowledge of the student with respect to
understanding the different asset classes, asset allocation and portfolio management. The course would also
enhance the critical thinking of the students and financial advisory skills. It also equips the students to manage
a portfolio; also set up practice for personal financial planning of clients. The course also requires the students
to complete a comprehensive project on constructing a portfolio and its performance evaluation that would
enhance their report writing and presentation skills. Topics covered in the course examines the theoretical basis
and practical approach to the management of stocks and fixed income investment portfolios, which can be
applied to both personal as well as professionally managed funds like Mutual Funds. A distinctive feature of
the course is the extensive use of excel simulations to demonstrate the portfolio optimization process and
discussion of various stocks and fixed income investment portfolios strategies. A brief list of topics includes
Portfolio analysis, Portfolio diversification, Portfolio optimization suing Markowitz and Sharpe’s method,
Lintner’s method of short sales, Asset pricing, Equity portfolio management strategies, portfolio revision,
Evaluation of portfolio performance, Bond portfolio management strategies, Overview of Indian mutual funds
– NAV, SID, KIM, SAI, KYC, CAS, FACTA; Types of mutual funds and options – SIP, SWP, STP.

Course Objectives
The course is designed to:
• Appraise the importance to prepare investment policy statement.
• Equip the student with portfolio construction, management and rebalancing skills.
• Elucidate various asset pricing models and portfolio selection models.
• Expound various equity and bond portfolio management strategies.
• Apply portfolio evaluation tools in mutual fund industry.

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 IBS Hyderabad (Academic Year – 2022-23)

Learning Outcomes
At the end of the course, the student shall be able to:
CLO-1: Understand objectives and constraints of an investor in the changing business environment and
develop an investment policy statement best suited for him/her.
CLO-2: Construct optimal portfolio(s) suited for him/her and rebalance the same based on the changing
business environment and their choices/preferences.
CLO-3: Review various equity and bond portfolio management strategies employed by investment industry.
CLO-4: Employ various asset pricing models to evaluate his/her portfolio’s performance and take necessary
action(s).
CLO-5: Understand mutual funds, various documents, investment plans and regulatory framework associated
with mutual funds.

Course Learning Program Outcomes (PO) Pedagogy Assessment

Outcomes (CLO)
CLO-1 PO-1, PO-2, PO-7, PO-8 Lecture, Questionnaire Assignments, Risk
Profiling
CLO-2 PO-1, PO-2, PO-7, PO-8, PO-9, Lecture, Case Method, Project Report &
PO-10, PO-12 Excel Workbooks, Data Presentations
Based Insight
CLO-3 PO-1, PO-5, PO-9, PO-11 Excel Workbooks, Problem Solving, Live
Practice Insight Videos Projects
CLO-4 PO-1, PO-2, PO-7, PO-9, PO- Case Method, Excel Case Analysis
10, PO-12 Workbooks
CLO-5 PO-1, PO-2, PO-7, PO-9 Lecture, Mutual Fund Assignments, Live
Regulations Projects

Recommended Text Book:

 Modern Portfolio Theory and Investment Analysis by Edwin J. Elton, Martin J. Gruber, Stephen J.
Brown, William N. Goetzmann, 8th Edition, 2016, Wiley India (EGBG)

Suggested reference books:

 Analysis of Investments and Management of Portfolios by Reilly & Brown, 10th Edition, 2012,
Cengage Learning (RB)
 Investments by Zvi Bodie, Alex Kane, Alan J Marcus & Pitabas Mohanty, 10th edition, 2019, Mc Graw
Hill Education (BKMM)
 Portfolio Management and Mutual Funds, The ICFAI Foundation for Higher Education (IFHE),
Hyderabad, September, 2020, Ref. No. PMMF-TB-IFHE – 092020

Digital Resources:

A] ACADEMIC/NPTEL/SWAYAM:
S. No. Course Title & Link Proposed by
(Professor/Institute)
1. Security Analysis and Portfolio Management NDLI Series (IIT
http://ndl.iitkgp.ac.in/document/Z2JzN0ZmU2VhdW5kODBJdWRCTmg3 Kharagpur)
Rkkray9sUis4eDhucDBYVzdYcElQT1lkaUp4ODdPS3Jqd29zeEtPa1lnU
GlkRkJkdXlUREsxbUV5UXZWb1JQT0E9PQ

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 IBS Hyderabad (Academic Year – 2022-23)

B] INDUSTRY INSIGHT:
S. No. YouTube Video Title & Link Speaker/Event/Organization
1. Constant Dollar Plan The Audiopedia
https://www.youtube.com/watch?v=3m-wYP46TsU
2. Securities and Exchange Board of India (Mutual Funds) Securities and Exchange Board
Regulations, 1996 [Last amended on April 17, 2020] of India (SEBI)
https://www.sebi.gov.in/legal/regulations/mar-2020/securities-and-
exchange-board-of-india-mutual-funds-regulations-1996-last-
amended-on-april-17-2020-_41350.html
3. Know about AMFI: Association of Mutual Funds
1. Introduction in India (AMFI)
2. Objectives
3. Committees
4. Code of Ethics
5. Members
https://www.amfiindia.com/know-about-amfi

C] DATA INSIGHT:
S. No. Resources Weblink
1. Prowess Database https://prowessiq.cmie.com/
2. Ministry of Finance https://finmin.nic.in
3. Technical Analysis https://tradingview.com
4. Money Control https://www.moneycontrol.com
5. Stock Reports / Stock Screeners https://trendlyne.com
6. Stock Exchanges https://www.nseindia.com
https://www.bseindia.com
7. Reserve Bank of India https://www.rbi.org.in
8. Securities and Exchange Board of India https://www.sebi.gov.in

D] OTHER RESOURCES:
S. Resources Weblink
No
.
1. Article(s) Fama, Eugene F., and Kenneth R. French, 1993, ‘‘Common Risk Factors in the Returns
on Stocks and Bonds,’’ Journal of Financial Economics 33, 3–56.

Carhart, Mark M., 1997, ‘‘On Persistence in Mutual Fund Performance,’’ Journal of
Finance 52, 57–82.
2. Report(s) Emerging India in a Multipolar World: Report by Morgan Stanley
https://www.morganstanley.com/im/publication/insights/articles/article_talesaugust2022
india_A4.pdf

INDIA INVESTMENT MARKETBEAT Q2 2022: Report by Cushman and Wakefield

https://www.cushmanwakefield.com/en/india/insights/india-investment-marketbeat

INVESTMENT IN INDIA: Report by India Brand Equity Foundation (IBEF)

https://www.ibef.org/economy/investments

3. Survey(s) NCAER-NSE Business Expectations Survey for 2022–23

How Households Save and Invest: Evidence from NCAER Household Survey

3
 IBS Hyderabad (Academic Year – 2022-23)

4. News Item Buffet, Shiller share a worry on Indian Equity

https://www.livemint.com/market/mark-to-market/buffett-shiller-share-a-worry-on-
indian-equity-11641838173976.html

Warren Buffett spots value in this sector but Indian investors ignoring it
https://economictimes.indiatimes.com/markets/stocks/news/warren-buffett-spots-value-
in-this-sector-but-indian-investors-ignoring-it/articleshow/90698389.cms

Why Isn’t Fed Hiking Impacting Inflation?

https://www.morganstanley.com/ideas/thoughts-on-the-market-zezas

Morgan Stanley expects 50 bps repo rate hike in next RBI policy meet
https://www.aninews.in/news/business/morgan-stanley-expects-50-bps-repo-rate-hike-
in-next-rbi-policy-meet20220919125551/

Digital Tools:
Software/Packages: MS Office especially MS-Excel/E-Views

Detailed Session Plan:

Case /Reading
Session
Topic / Key Concepts Learning Outcomes article/ Lecture / Chapters
No.
Activity
Introduction to Portfolio
Management, Necessity of investment
policy, Inputs to a policy statement,
Investment motives or goals (long
term high priority/low priority and  Understand the concept of
short-term high priority/low priority portfolio management
goals) Risks in investment,  Be aware of investment
Investment constraints, goals and constraints
Risk Profiling
Characteristics of Portfolio,  Appreciate the risk and
Activity
Diversification, Risk and Return return characteristics of 1, 4 & 5
1-4
characteristics the asset classes (EGBG)
Demonstration
Asset allocation, Risk Profiling  Know the importance of
through Excel
Questionnaires, Utility Analysis – coefficient of correlation
Absolute and Relative Risk Aversion; between the returns of
Risk Tolerance functions different assets in portfolio
Combinations of two risky assets management
revisited (short sales not allowed):
Perfect positive correlation, perfect
negative correlation, zero correlation,
intermediary correlation.
Investment
 Construction of minimum
Management at 6, 7 & 9
Minimum Variance Portfolio, variance portfolio with and
Harvard (EGBG)
Efficient Frontier (with and without without short sales
5-8 Management
short sales), Single Index Model, Beta  Work on the portfolio
Company (ICMR 7&8
Estimation and Forecasting optimization
Case ID: (RB)
FINC/056)

4
 IBS Hyderabad (Academic Year – 2022-23)

Publication Year:
2009
Portfolio Revision – Constant Dollar  Apply formula plans and
Demonstration
9-10 Value Plan, Constant Ratio Plan, analysis of pros and cons Hand-out
through Excel
Variable Ratio Plan of such plans
Sessions: 1 to 10
Chapters:
11 TEST-1 EGBG - 1,4,5,6,7,9
RB – 7,8
Class Handouts
A Portfolio
Restructuring
 Construct an optimal
Dilemma (ICMR
portfolio with and without
Portfolio Optimization - Markowitz Case ID: 11&12
short sales
risk return optimization, Sharpe’s FINC/144) (EGBG)
12-14  Appreciate Lintner’s
optimization, Lintner’s method of Publication Year:
definition of short sales
Short Sales 2018 2 (RB)
 Work on risk profiling of
an investor
Demonstration
through Excel
 Understand asset pricing
Asset Pricing – CAPM, APT – models 8, 12, 13
Principle of No Arbitrage,  Know about how to encash & 16
Equilibrium model, Estimation, the arbitrage opportunities Article(s) (EGBG)
15-17
Comparison with Multi Index model, in case of market Discussion
Fama French 3 factor model, Other disequilibrium 9, 10 &
Portfolio Selection Models  Be aware of advanced 13 (RB)
asset pricing models
Berkshire
Hathaway (HBS
Equity Portfolio Management Case ID: 709449)
Strategies – Active v/s Passive Publication Date:
Management Strategies, Index Funds, January 20, 2009
Customized funds, Core & Satellite 27 & 28
 Analyze pros and cons of
Portfolios Investment (EGBG)
18-20 various equity portfolio
Passive portfolio management Fables: Exposing
management strategies
Strategy, Style Analysis, Attribution the Myths of 16 (RB)
Analysis, Evaluation of actively "can't Miss"
managed portfolios, Benchmark Investment
based performance evaluation Strategies by
Aswath
Damodaran
Sessions: 12 to 19
Chapters:
21 TEST-2 EGBG – 8,11,12,13,16,27,28
RB – 2, 9,10,13,16
Class Handouts

5
 IBS Hyderabad (Academic Year – 2022-23)

Evaluation of Portfolio Performance –

Return based (Money Weighted v/s Measuring
Time Weighted), Early and Mutual Fund
Composite Portfolio Performance  Evaluate the performance Performance
measures – Sharpe’s ratio, Treynor’s of fund managers in terms (HBS Case ID:
25
22-24 ratio, Jensen’s alpha, Sortino ratio, of asset allocation, stock 298139)
(EGBG)
Information Ratio, Tracking Error, selection and market Publication Date:
Fama’s decomposition of overall timing May 25, 1998
return, Market timing ability, Stock (Revised: Feb 20,
selection ability, Performance 2007)
attribution analysis
Bond Portfolio Management –
 Analyze pros and cons of
Duration, Shift and Immunization, Demonstration 21&22
25-26 various bond portfolio
Passive, Semi-Active and Active through Excel (EGBG)
management strategies
Strategies in managing bond portfolio
Overview of Indian Mutual funds,
Structure of mutual funds. Types of
 Be aware of the basics of
mutual funds, advantages and Discussion on an
mutual funds 24 (RB)
disadvantages of mutual funds, NAV, offer document of
27-28  Familiarize with various and
NFO, Offer document, Scheme a selected mutual
documents associated Hand-out
Information Document (SID), Key fund scheme
mutual funds
Information Memorandum (KIM),
Scheme Additional Information (SAI)
Thompson Asset
Procedure for purchase and
Management
redemption of units, KYC, CAS, How
(HBS Case ID:
to read fund fact sheet, FACTA,
914565)
Types of Mutual Fund Plans and  Assess various investment
29-30 Publication Date Handout
Options, Systematic Investment Plan plans in mutual funds
July 10, 2014
(SIP), Systematic Withdrawal Plan
(SWP) and Systematic Transfer plan
Demonstration
(STP)
through Excel
Discussion on
SEBI guidelines and other regulatory  Be aware of regulatory
legal aspects
31 aspects of mutual funds. Role of aspects of mutual funds Handout
related to mutual
AMFI
funds
 Hands-on experience of R (Statistical
32-33 Portfolio Optimization using R using R for portfolio programming Handout
optimization language)

Local/National/International Perspective:

Session Mapped Topic(s) in

Article/Case/Minor Project Pedagogical Tool
No. Session Plan
Investment Policy
3 Statement, Investor Risk Profiling Activity Questionnaire
Goals and Constraints

6
 IBS Hyderabad (Academic Year – 2022-23)

SDG Sensitization:

Session Mapped Topic(s) in

Topic Specific Learning Outcomes Pedagogical Tool
No. Session Plan
Critically evaluate the Governance
Equity Portfolio
issues of a company
17-19 Management Group Discussion
Focus on ethnical and sustainable
Strategies
investing

Data Based Insight:

A large dataset (atleast 5 years) would be extracted from the Prowess dataset for all the constituent companies
of Sensex. The same dataset would be used to deliver multiple topics in the course such as ‘risk and return’ and
allied concepts like beta that would be helpful in valuation, technical analysis and allied concepts, to evaluate
the performance of index over a period of time. Also, students shall get a hands-on experience of using R for
portfolio optimization. Such an exercise would not only induce the interest of the students towards these topics
but it would also go a long way in developing a data backed approach towards almost any concept in their future.

Evaluation Scheme and Timelines:

Keeping in line with continuous evaluation at IBS the following evaluation schedule has been drawn. Students
are expected to go through the dates / sessions mentioned and prepare accordingly.

Component Expected slot / Marks

Component Weightage
Number due date declaration by
Test - 1 1 11 13 15
Test - 2 2 20 22 15
Project Report 3 31-33 33 20
Class Participation 4 33 33 10
End Exam At the end of 40
the semester
Total 100

Expectations from Students:

a. Students must report to the respective sessions well before the announced time. Latecomers will not be
permitted to join the class after the scheduled time. If late, the attendance for that session will be marked
as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the
chapter indicated in the course plan as the faculty directs.
c. In the class discussion student is expected to participate actively and contribute to individual and group
learning. Evaluation is based on active participation.

Use and Adoption of Software/Analytical Tools/Packages:

All the software/analytical tools/packages subscribed by the institute can be used widely for regular learning
and also project work. The institute offers access to various online databases through KNIMBUS platform. Any
other tools/packages to be used shall not infringe copyright of the provider.

Plagiarism policy:
Any infringement of copyright/patent/trademark is not appreciated and shall be viewed seriously. The students
are suggested to take proper help/support from the faculty members in this regard. So that they don’t get into
this infringement aspect knowingly/unknowingly.

Project Work/Report Guidelines:

The design thinking aspect has been a part of the project work in terms of giving flexibility to the students in
stock picking, selecting various tools/techniques to evaluate the stocks performance, employ various strategies
to construct portfolios, using different ways to optimize the portfolio’s performance and a template for reporting
portfolio performance. The students shall construct portfolios and track the performance continuously and report
all the actions taken to optimize the portfolio’s performance.

7
 IBS Hyderabad (Academic Year – 2022-23)

The following are the guidelines/instructions to be followed for the project work/report.
1. Each student has to assess their risk/return preferences, investments goals and constraints.
2. Based on the above assessment, each student should choose minimum 3 companies to construct a portfolio.
Please ensure that there is no replication of portfolios.
3. The stock picking can be done by way of replication of any index or based on the buy calls given by stock
brokers or investment analysts. You can also do the company valuation to understand whether the stock is
undervalued/overvalued.
4. Continuously track your portfolio by observing price movements, E-I-C factors and technical analysis for
all the stocks included in the portfolio at different times from November 1, 2022 to January 31, 2023.
5. Track the portfolio performance on a daily basis and act accordingly; which means there could be some
addition/deletion of stocks in the existing portfolio. Note the criterion based on which the decision is taken
so that it is useful for post-hoc analysis. You can maintain an excel sheet for recording all the activities
along with the price, quantity and action details. Your work should be presented in a single excel workbook
including separate worksheets for each stock selected, its tracking information and replaced stock details,
if any.
6. Assess the performance of the portfolio by comparing with benchmark portfolio (Nifty or Sensex or suitable
index) and provide explanations. (You may use different valuation measures such as Sharpe’s Ratio,
Treynor’s Ratio, Sortino’s Ratio, Jensen’s Alpha, Appraisal Ratio, Information Ratio, Fama Decomposition
etc. to assess the portfolio’s performance).
7. You are required to submit 3 reports (6+8+6 marks):
(i) Initial report (By November 26, 2022)
(ii) Interim report (By December 24, 2022)
(iii) Final report (By January 28, 2023)
8. The initial report should include the following. It will be evaluated for 6 marks.
a. Investment Policy Statement
i. Investor Objectives
ii. Investor Constraints
b. Tentative macro asset allocation
9. The interim report should include the following. It will be evaluated for 8 marks.
a. Selection of stocks based on
i. Fundamental Analysis
ii. Technical Analysis
iii. Any other suitable criteria (as suggested above)
b. Construct a minimum variance portfolio
10. The final report should include the evaluation of your designed portfolio against a benchmark portfolio
using various measures. It will be evaluated for 6 marks.
11. All the relevant content has to be submitted in ms-word document and all calculations have to be submitted
in ms-excel workbook. The first page of the ms-word document should provide the details of the Student
Name, Enrolment Number and the Section. Both the files should be named after the student followed by
his/her enrolment number (last four digits in brackets).
12. Parameters for evaluation: Portfolio strategy and construction, Portfolio composition, Portfolio performance
evaluation, Comparison with other similar portfolios along with interpretation and suggestions.

*************End of Portfolio Management and Mutual Funds ******************

8
 IBS Hyderabad (Academic Year – 2022-23)
Course Handout
Course Code : SLF1610
Course Title : Project Appraisal and Finance (PAF) Semester: IV
Faculty Name : Dr. Ranajee

Mobile No: 9705180749 Email: Ranajee@ibsindia.org

Course Description:
Students examine the important tools and techniques useful in developing their decision-making skills in the
context of a business organization especially for investments in projects and way to finance them.
Course Objectives
At the end of the course, students are expected to:
 Learn project financing in depth including assessing the real option values embedded in the projects.
 Learn different models of financing projects by creation of SPVs.
 Be financial architects to model the financial deals to mitigate project risks.
Learning Outcomes
1. Develop required skills for project structure and detailed project report.
2. Demonstrate analytical skills in Project appraisal.
3. Evaluate the effectiveness of different project financing techniques.
4. Identify and implement aspects of environment and social cost benefit analysis in an organization.
Recommended Text Book:
 Project Finance, The ICFAI Foundation for Higher Education (IFHE), Hyderabad, September, 2020, Ref. No.
Ref. No. PF – 032010CBM05.
Suggested reference books:
 Projects by Prasanna Chandra, 8th Edition, 2013, McGraw Hill Education (India) Private Limited,

Case
/Reading
Session Chapte
Topic Key Concepts Learning Outcomes article/
No. rs
Lecture /
Activity
To explain the students as to how Students will get an overview of
to appraise the project and how project appraisal and financing and its
Introduction project financing is different from importance to corporate.
corporate financing Chapter
1-2
I

To explain different methods of To understand the importance of 1.Business

Cost of Capital calculation of cost of capital. cost of capital and how its effect on Valuation
project selection and Cost of
Chapter
3-5 capital *
2. Note on VII
APV *

Project Cash- To prepare project cash flows and Students will be able to select best 1.MIRR a
flow Estimation project selection criteria out the available projects. better
and Project measure * Chapter
6-7 Selection VIII

Capital To explain project selection under Students will be able to select

8-9 Rationing and capital rationing projects in fund restricted situation XIII
Project Selection Prepare them for simulation game
Page 1 of 3
 IBS Hyderabad (Academic Year – 2022-23)

Risk Analysis Risk Analysis and Project To understand various risks in Chapter
and Project Selection: Sensitivity Analysis, projects and ways to mitigate risk IX,X
Selection: Scenario Analysis, Ratio Analysis
Sensitivity and Simulation
10-12
Analysis,
Scenario
Analysis, Ratio
Analysis and
Simulation

Details to be Decided in consultation with students on the chapter

13-14 Project Work XIII
Multiple Projects and Constraints

Real-options in Capital Students will be able to appreciate 1.Investment

Budgeting: Decision Trees and that projects have real options Opportunitie
Real-options Black Scholes Morton models embedded in them which can effect Chapter
15-17 s as Real
Application of Real options project selection Options * XIV

Project Finance: To explain how project fiancé can To understand how what is project
Introduction, be used and how it is different finance and how corporate risk can
Project Finance from corporate finance be mitigated using project finance
Chapter
18-20 v/s Corporate
Finance, Use of II
project Finance

Social Cost- To explain what is SCBA and To understand

benefit Analysis various methods of calculation of Social Cost-benefits of Projects
of Projects ERR Chapter
21-23 XI, XII
LM and UNIDI
O approaches

Structuring To explain Structuring Project

Project Finance: Finance: company
Sources of
Financing,
Students will be able to understand
Choice of Chapter
24-27 Financing,
and apply different models of project
structuring. VI
Factors Affecting
Financing, Effect
of Valuation

Project Finance Project Finance in Emerging Students will understand the current
in Emerging markets scenario Chapter
28-30 markets III

Forming a Forming a Project Company Students will understand the

Project Preparation of DPR usefulness of creation of SPV in
Company financing risky projects. Chapter
31-33 Detailed Project IV, V
report

Page 2 of 3
 IBS Hyderabad (Academic Year – 2022-23)
Expectations from Students
a. Students must report to the respective sessions well before the announced time. Latecomers will not
be permitted to join the class after the scheduled time. If late, the attendance for that session will be
marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the
chapter indicated in the course plan as the faculty directs.
c. In the class discussion student is expected to participate actively and contribute to individual and group
learning. Evaluation is based on active participation.
Evaluation Timelines
Keeping in line with continuous evaluation at IBS the following evaluation schedule has been drawn.
Students are expected to go through the dates / sessions mentioned and prepare accordingly.

Component Component Expected slot / Marks Weightage

Number due date declaration by
th
Test I 1 11 session 13th session 15
Test II 2 21st session 23nd session 15
Project report 3 31-33 session 33rd session 20
Class Participation 4 33rd session 33rd session 10
End exam At the end of Exams dept Exams dept 40
the semester shall plan and shall plan and
communicate communicate
Total 100

**************End of Project Appraisal and Finance (PAF) *****************

Page 3 of 3
 Strategic Financial Management (SFM)
MBA (Academic Year – 2022-24), Semester-IV
IBS Hyderabad

Course Handout

Course Title : Strategic Financial Management Semester : IV

Faculty Name : Dr. M.V.S. Kameshwar Rao Room No : F-015
Consultation Hours : 5.00 PM to 5.45 PM Mobile No : 9848493657
Email : kamesh@ibsindia.org

MBA Programme Outcomes:

PO Number IBS - Programme Outcome (MBA)

1 Critical Thinking
2 Effective Communication
3 Social Interaction
4 Effective Citizenship
5 Ethics
6 Environment & Sustainability
7 Self-Directed & Life-Long Learning
8 Initiative/Leadership
9 Employability
10 Teamwork
11 Cross Functional Perspectives
12 Mastery in Analytics

1|P a g e
 Strategic Financial Management (SFM)
MBA (Academic Year – 2022-24), Semester-IV
IBS Hyderabad

Course Description:
The role of CFO has gained importance ever since the business world has become Volatile, Uncertain, Complex and Ambiguous. Every major strategic
decision that is taken in an business entity has concurrence and support of a CFO. This is ample proof that finance decisions are not only operational. The
“Value Mentor” is the role of CFO now than a “Bean Counter” or a “Finance Controller”. This course strongly builds on the prior knowledge of the
participants in the fundamental course on Financial Management and select finance elective courses. Participants, who are exposed to a course on
Corporate Strategy, appreciate this course better. This course is an attempt to give the participants the strategic flavor of finance function, by highlighting
the importance of a CFO in Implementing Strategy, Nudging Performance, and Providing Flexibility.

Course Objectives:
 To introduce to the linkages of Corporate Finance Functions with other Corporate Functions
 To reinforce certain essential concepts and frameworks of Corporate Strategy and Value Drivers
 To develop the capability to differentiate a Strategic Finance Decision from an Operating Finance Decision
 To impart the skill of applying popular models, frameworks and tools of Strategic Financial Analysis
 To sensitise that Strategic Finance Decisions need multi-dimensional optimization
 To inculcate the core philosophies viz., “Financing for Value” and “Finance for Growth”

Course Learning Outcomes:

Upon completion of this course, students will be able to
CLO-1 Comprehend the linkages of Corporate Finance Functions with other Corporate Functions.
CLO-2 Develop clarity on concepts of corporate strategy and identify Value Drivers
CLO-3 Differentiate between Strategic Finance Decision and Operating Finance decision
CLO-4 Apply various popular models, frameworks, and tools of Strategic Financial Analysis
CLO-5 Critically evaluate various dimensions that determine the success of a Strategic Corporate Finance decision
CLO-6 Estimate the impact of Strategic Finance Decisions on Value and Growth of business entities

Recommended Text Book:

 Strategic Financial Management: Managing for Value Creation by Prasanna Chandra, 2nd Edition, Tata McGraw-Hill

Suggested reference books:

 Corporate Finance: Theory and Practice by Aswath Damodaran, 2nd edition, Wiley Publishers
 Quantitative analysis of financial decisions by Mao, J.C.T., 2nd edition, Macmillan.
 Damodaran on Valuation by Aswath Damodaran, 2nd edition,Wiley Publishers.


2|P a g e
 Strategic Financial Management (SFM)
MBA (Academic Year – 2022-24), Semester-IV
IBS Hyderabad

Course Outline:

Ses.No Topics Learning Outcomes Case/Article Additional

Readings
1 Strategic Financial Management 1. CFOs & Strategists: The Article
Understanding the strategic
Introduction to the course Forging a Common Itself
angle of all Finance Functions
Link – Harvard Article
2-3 1. VRIO framework 5. Chapters-2
Corporate Strategy, Objective, Choice –
2. Resource Based View and 4 of Text
Environment, Business Scope, Competitive
3. Core Competency Book
Positioning, Sustainable Competitive
4. Evergreen Business and
Advantage
Corporate Strategies
4-7 1. Balance Score Card Approach 1. Maverick Lodging - Chapter-3 of
Measuring Performance: 2. Action Profit Linkage Case Text Book
3. Mckinsey’s Health Metrics
8-10 Strategic Value Based management 1. Marakon Approach 1. Generating Higher
Strategic Decision Making Framework, Value 2. Alcar Approach Value at IBM (A) - Chapter- 12
Based Management System, Marakon 3. McKinsey Approach Case of Text Book
Approach, Alcar Approach, McKinsey 4. Market Value Added
Approach, MVA Approach and EVA Approach 5. Economic Value Added
6. Total Shareholder Return
7. Total Business Return
8. Cashflow Return on
Investment
11 Test 1
12-16 1. EPS-EBIT Analysis 1. Nokia OYJ: Financing the Chapter-6 of
 Financing Decisions: Theories and Value
2. ROE-ROI Analysis WP Strategic Plan - Case Text Book
Creation- Relevance and Irrelevance of
3. Marginal Cost of Capital
Capital Structure, Determinants, Research
Schedule
Evidence
4. Cashflow Volatility Approach

3|P a g e
 Strategic Financial Management (SFM)
MBA (Academic Year – 2022-24), Semester-IV
IBS Hyderabad

Ses.No Topics Learning Outcomes Case/Article Additional

Readings
17-21 Investment Decisions: Handling Complex 1. Risk Adjusted Rate of Return 1. San Francisco Chapter-8 of
Dependent and Independent Investment 2. Certainity Equivalent Factor International Airport Text Book
Decisions, Handling Risk. Ranking Conflicts, 3. Hillier Model and Quantum Secure's
Size Disparity, Time Disparity, Life Disparity, 4. Sensitivity Analysis SAFE for Aviation
Mutually Exclusive, Budget Constraints 5. Scenario Analysis System – Case
6. Simulation Analysis 2. Merck & Co.:
7. Decision Tree Analysis Evaluating a Drug
8. Real Option Analysis licensing Opportunity
- Case
22 Test 2
23-25 1. ABC Analysis 1. Working Capital In The
Liquidity Decisions: Managing Components 2. Days of Sales Outstanding Time Of Covid-19:
of Working Capital, Estimating Requirement, 3. Ageing Schedule Cimpress And The
and Financing 4. Apollo Venture Debt -
Case
26-27 1. Dividend 1. Ford Motor Co.'s Value
Profit Distribution Decisions: Disappearing or 2. Buyback Enhancement Plan (A) -
Reappearing Importance of Dividends 3. Bonus Case
4. Stock Split
28-29 Risk Management Decisions: Risk 1. Risk Management Process 1. Honeywell, Inc. Chapter 9 of
Management Process, Typical Enterprise 2. Broad Techniques Integrated Risk Text Book
wide Risk 3. Altman’s Z-Score of Default Management - Case
Risk

4|P a g e
 Strategic Financial Management (SFM)
MBA (Academic Year – 2022-24), Semester-IV
IBS Hyderabad

Ses.No Topics Learning Outcomes Case/Article Additional

Readings
30-31 Financial Analysis, Planning and Forecasting: 1. Higgin’s sustainable Growth 1. Harmonising Demand
Model Forecasting and
2. Growth with Internal Equity Supply at Mahindra
3. Time Series Forecasting and Mahindra
32-33 Strategic Cost Management: 1. Activity Based Costing 1. Assante Teaching Chapter 8 of
2. Target Costing Hospital: Activity Text Book
3. Life Cycle Costing Based Costing
4. Experience Curve

Expectations from Students

a. Students must report to the respective sessions well before the announced time. Latecomers will not be permitted to join the class after the scheduled
time. If late, the attendance for that session will be marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the chapter indicated in the course plan as the faculty
directs.
c. In the class discussion student is expected to participate actively and contribute to individual and group learning. Evaluation is based on active
participation.
d. Evaluation is a continuous process at IBS. Every student needs to be aware of the timelines given in the section below. Absence from these evaluations
will mean non awarding of marks in that particular component
e. Each faculty has been given a scheduled consultation hour. Utilize this time to meet the faculty and clarify doubts if any, seek explanations and get
mentored if needed.

Evaluation Timelines

Keeping in line with continuous evaluation at IBS the following evaluation schedule has been drawn. Students are expected to go through the dates / sessions
mentioned and prepare accordingly.

5|P a g e
 Strategic Financial Management (SFM)
MBA (Academic Year – 2022-24), Semester-IV
IBS Hyderabad

Component Component Expected slot / Marks Weightage

Number due date declaration by
Class Participation 1 Session 33 Session 33 10
Test I 2 Session 11 Session 14 15
Test II 3 Session 21 Session 25 15
Project Work 4 Session 33 Session 33 20
End exam 5 40
Total 100

Electronic and Web resources: Swayam Videos, Syndicated Databases

*Project work will begin after the Test-2 and will run along with scheduled sessions, making scope for continuous learning and feedback. It will require
students to work on real world strategic financial management problems and developing solutions for raising capital and maximizing value for
shareholders, and will have flavors of companies in manufacturing and services industries.

Components of the Project work and their respective weightage are as follows:

 Application of tools and frameworks of analysis – 5

 Development of financial model – 10
 Report/Memorandum writing – 5

*********************Endo of Strategic Financial Management ***************************************************

6|P a g e
 IBS Hyderabad (Academic Year – 2021-23)
Course Handout
Program : MBA
Course Code : SLBK601
Course Title : Risk Management in Banks Semester: IV
Faculty Name : Dr Kaushik Bhattacharjee
Room No : E006(-1)
Consultation Hours : Monday 4.30PM-5.30PM
Mobile No : 9849252843
Email : kaushik@ibsindia.org

Course Description: Banks accept deposits from public for the purpose of lending and investment.
The deposits so collected from public are to be invariably repaid to the customer on demand together
with interest if any, but the realization of assets created out of deposits/ borrowings is fraught with
several risks. The course covers in details the different types of risks faced by banks in lending and
investment of funds like credit, market, operational, liquidity and interest rate risks. A student at the
end of the course will be able to understand and appreciate the due diligence to be exercised by a
bank in conducting business.

Course Objectives: Provide comprehensive understanding of the various types of credit, market and
operational risks faced by the banks and their quantification.
• Analyze Asset Liability Management (ALM) satements to explain Interest Rate Risk (IRR)
and Liquidity risk.
• Illustrate management of risk through application of financial derivatives and Value at
Risk(VaR)
• Sketch the regulatory mechanism to control risks in Banks.
• Estimate capital requirements of a Bank, by applying Internal rating models.

Course Learning Outcomes: Upon completion of this course, students are expected to:
1. Identify different types of risks in banks, measure and price them
2. Apply different types of risk management techniques such as application of VaR and
derivatives to manage risk.
3. Evaluate the management practices and process for risk management in Banks.

Recommended Textbook:
 Risk Management in Bank, IUP Publication, 2020 edition

Suggested Reference books:

 Risk Management in Banking Joel Bessis, Wiley, 2nd edition.
 Risk Management and Financial Institutions, John C Hull, Wiley, 3rd.edition
 IBS Hyderabad (Academic Year – 2021-23)
Course Outline
Session Case /Reading article
Topic Learning Outcomes Chapters
No. / Lecture / Activity
01-02 Introduction to  Define the term Risk and Class room discussion I
Risk differentiate it from
Management Uncertainty
 Identify the various sources
of exposures and risks in
Banks
03-04 Risks in  Classify, comprehend, Why Manage Risk? I
Banking compare the different types [HBS: 9-294-107]
risks faced by banking
industry and explain them
with suitable examples.
Approaches to  Appreciate the need for risk Citigroup 2007: I
Risk management and explain the Financial Reporting
Management different approaches to risk and Regulatory
management in a financial or Capital [HBS: 9-111-
banking business. 041]
05-06 Credit Risk in  Recall the definition of - II
Banks credit risk; understand the Class room discussion
different types of credit risks
in banks.
 Illustrate the impact of credit
risk on the functioning of a
Bank.
 Estimate
 Probability of Default
 Loss given at Default
 Exposure at Default
 Effective Maturity

07-08 Measuring and  Apply techniques to measure Class room discussion II
Managing the and price the credit risk.
Credit risk  Credit Risk Measurement
and Mitigation by Credit
Derivatives
 Employ the following
approaches to measure credit
risk to make capital charge.
 Standardized approach
 Internal Ratings based
approach Method
 IBS Hyderabad (Academic Year – 2021-23)
09-10 Market Risk in  Recall the definition of Class room III
Banks Market risk; understand the discussion.
different types of Market
risks in banks.
 Illustrate the impact of
Market risk on the
functioning of a Bank.
 In depth Analysis of various
tools to measure market risk
like
 Sensitivity Analysis
 Value at Risk (both
parametric and Non
parametric)
 Back testing
 Stress Testing

11 TEST-1 Sessions 1 to 10 Chapters – I, II and III

12-13 Measuring and  Apply techniques to measure III
Managing the and price the Market risk. Market Risk
Market risk  VaR-estimation, maping and Management at ABN
back testing AMRO
[ICMR- FINA022]

14 -15 Managing  Recall the definition of Classroom VII

Operational Operational risk; understand Discussion
Risk the different types of
operational risks in banks.
 Illustrate the impact of
operational risk on the
functioning of a Bank.
 Conversant with the
computation of
 Gross and Net Profits
 Income from
different Business
lines
 IBS Hyderabad (Academic Year – 2021-23)
16-17 Measuring and  Apply techniques to measure Practical exercises. VII
managing and price operational risks.
Operational  Employ the techniques to
risk
monitor & control and
mitigate the operational risk
 Employ the following
approaches to measure the
risk and make capital charge.
 Basic Indicator
Approach
 Standardized approach
 Advanced
Measurements Method.

18-19 Interest Rate  Recall the definition of Financial Risk IV

Risk Interest rate risk; understand Management at UBS
Management the different types of Interest [ICMR-FINA015]
rate risks in banks.
 Illustrate the impact of Practical Exercises
Interest rate risk on the
earnings of a Bank.

20-21 Measuring and  Apply techniques to IV

Managing the measure and price Interest Interest Rate
Interest rate rate risk. Derivatives
risks  Employ the techniques to [HBS: 9-294-095]
monitor & control and Note on Credit
mitigate the Interest rate Derivatives
risk. [HBS: 9-205-111]
 Understand the following
techniques / concepts.
 Repricing Schedules
 Gap analysis
 Interest rate sensitivity
 Duration
 Simulation
22 TEST-2  Sessions 12 to 21 Chapters: III, IV, VII

23-24 Managing  Recall the definition of RBI Mater Circular on

Liquidity in Liquidity risk; understand ALM in Banks VI
Banks the different types of
Liquidity risks in banks.
 Illustrate the effect of
Liquidity risk on the
functioning of a Bank.
 IBS Hyderabad (Academic Year – 2021-23)
 Describe the organizational
set up in Bank to cope up
with the Liquidity
 Conversant with assessing
the liquidity position based
on
 Stock approach
 Flow approach
25-26 Asset Liability  Draw Asset Liability Banc One IX
Management in statements. Corporation: Asset
Banks  Interpret the following and Liability
Management
statements [HBS: 9-294-079]
 Maturity profiling.
 Structural Liquidity. RBI Mater Circular on
 Dynamic liquidity. ALM in Banks
 Interest rate Sensitivity

27-28 Measuring and  Define foreign exchange V&X
Managing risk.
Foreign  Explain the tools and
Exchange Risk techniques for managing
foreign exchange risk
 Understand the mechanism
of Foreign exchange and
Credit derivatives
29-30 Risk  Summarize the prevailing Classroom discussion VIII
Management risk management framework on risk management
Framework in in the Indian Banking structure in banks to
India Industry to meet Credit, cope up several banks
Market, operational,
Liquidity and Interest rates
in Banks

31 TEST-3  Sessions 23 to 30 Chapters – V, VI, VIII, IX, X

32-33 Regulatory  Conversant with Basel I, XII &

Mechanism to Basel II and Basel III Management of XIII
Control Bank norms. Risks in Indian
Risk  Relate the Basel norms for Banking: Basel-III
and its Implications
measuring and managing the [IBSCDC: B-
risk in banks. CM0011].
 IBS Hyderabad (Academic Year – 2021-23)

Expectations from Students

a. Students must report to the respective sessions well before the announced time. Latecomers
will not be permitted to join the class after the scheduled time. If late, the attendance for that
session will be marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to
read the chapter indicated in the course plan as the faculty directs.
c. In the class discussion student is expected to participate actively and contribute to individual
and group learning. Evaluation is based on active participation.
d. Evaluation is a continuous process at IBS. Every student needs to be aware of the timelines
given in the section below. Absence from these evaluations will mean non awarding of marks
in that component
e. Each faculty has been given a scheduled consultation hour. Utilize this time to meet the
faculty and clarify doubts if any, seek explanations and get mentored if needed.

Evaluation Timelines
Keeping in line with continuous evaluation at IBS the following evaluation schedule has been
drawn. Students are expected to go through the dates / sessions mentioned and prepare
accordingly.

Component Component Expected slot / Marks declaration by Weightage

Number due date
Class 1 33rd Session Within 3 days from 33rd 10
Participation Session
th
Test I 2 11 Session Within 3 days from the 15
date of Test
nd
Test II 3 22 Session Within 3 days from the 15
date of Test
nd
Project report 4 22 Session Within 3 days from the 20
date of
End exam At the end As per Exam’s Within 3 days from the 40
of semester schedule. date of Exam
Total 100

Electronic and Web resources: Swayam Videos, Syndicated Databases

 IBS Hyderabad (Academic Year 2022-23)
Course Handout
Program MBA
Course Code SLBK602
Course Title Treasury Management Semester IV
Faculty Name Anita C Raman Room No F-204
Mobile No 9849709741 Email Anitac@ibsindia.org
Consultation Hours (Day/time): Wednesday 6.30-7.30

Program Outcomes (PO):

At the successful completion of the MBA Program, the students are expected to achieve the following outcomes.
PO-1 Critical Thinking
PO-2 Effective Communication
PO-3 Social Interaction
PO-4 Effective Citizenship
PO-5 Ethics
PO-6 Environment and Sustainability
PO-7 Self-directed and Life-long Learning
PO-8 Initiative/Leadership
PO-9 Employability
PO-10 Teamwork
PO-11 Cross-Functional Skill Development
PO-12 Demonstrate Mastery in Analytics

Course Description:
Treasury operations are complex and usually sophisticated; a treasurer requires to appreciate the intricacies
and interdependences of various players, intermediaries, and regulators across various markets in order to make prudent and wise
financial and investment decisions. While making these decisions, the treasurer’s require to comprehend various
organizational risks and adopt appropriate risk management practices to mitigate them. Topics include the
scope and functions of the treasury, integrated treasury, asset liability management, foreign exchange
management, and financial system with a focus on the money market and cash management.

Course Objectives:
The course is designed to –
 To develop an understanding of the role of treasury for corporate and financial Institutions
 To make the students appreciate the foreign exchange and money markets and the instruments in each
of the markets
 To help students appreciate the role of risk management in financial services companies and for
corporates
 To help student understand the role of control in treasury department

Course Learning Outcomes (CLO):

At the end of the course, the student shall be able to –
CLO-1. Appraise the role and functions of treasury for corporate and financial Institutions
CLO-2 Sense the complexities in the foreign exchange and money markets
CLO-3 Learn how to manage risk in financial services companies and corporates
CLO-4 Evolve a corporate treasury control system in their organization

1
 IBS Hyderabad (Academic Year 2022-23)
Course Learning Program Outcomes (PO) Pedagogy Assessment
Outcomes (CLO)
CLO-1 PO-8, PO-9 Lecture, Excel Workbooks Quizzes, Assignments
CLO-2 PO-1, PO-2, PO-3, PO-11 Lecture, Case Method, Case Analysis
Excel Workbooks
CLO-3 PO-1, PO-2, PO-5, PO-6, Case Method, Excel Project Report &
PO-10, PO-12 Workbooks, Data Based Presentations
Insight
CLO-4 PO-8, PO-9, PO-10, PO- Case Method, Excel Problem Solving, Live
11. Workbooks, Practice Projects
Insight Videos

Recommended Text Book:

Treasury, Investment and Risk Mgt, 2nd Edition, IIBF, Taxman Publishing

Suggested reference books:

Treasury management, ICFAI Foundation For Higher Education (IFHE), Hyderabad
Anthony Saunders and Marcia Cornett: Financial Markets and Institutions - An Introduction to the Risk
Management Approach. 2nd edition, Tata McGraw-Hill.
Treasury Management: The practitioner’s Guide, Steven M Bragg
Treasury risk Management: S K Bagchi
Treasury’s War: Juan Zarate
Treasury Markets and Operations: Hong Kong Institute of Bankers
Treasury Fundamentals, Antonio Morelli
The Handbook of Global Corporate Treasury: Rajiv Rajendra

Digital Resources:

A] ACADEMIC/NPTEL/SWAYAM:
S. No. Course Title & Link Proposed by
(Proessor/Institute)
1. Treasury Management Certification
https://www.nism.ac.in/certifications/ Examination
2. Introduction to Treasury Management SSN Murthy
https://www.youtube.com/watch?v=YM-YPBc0W3I IIBF

B] INDUSTRY INSIGHT:
S. No. YouTube Video Title & Link Speaker/Event/Organization
1. Monetary Policy Statement 2022 Governor, RBI
https://www.youtube.com/watch?v=NyWxYFe8slU
2. Banking Trends on Banking & Treasury Speeches & Interviews
https://www.rbi.org.in/Scripts/BS_ViewSpeeches.aspx

C] DATA INSIGHT:
S. No. Resources Weblink
1 Reserve Bank of India. ( Statistical tables Rbi.org.in
relating to banks
2 Prowess Database https://prowessiq.cmie.com/
3 Indian Institute of banking & finance http://www.iibf.org.in/

4 Ministry of Finance https://finmin.nic.in

5 Money Control https://www.moneycontrol.com
6 Stock Reports / Stock Screeners https://trendlyne.com

2
 IBS Hyderabad (Academic Year 2022-23)

D] OTHER RESOURCES:
S. No. Resources Weblinks
1. Bank Quest (Articles) http://www.iibf.org.in/
2. RBI Annual Report http://www.Rbi.org.in
3. Trends & Progress in banking http://www.Rbi.org.in
4. RBI Master Circulars / Directions http://www.Rbi.org.in

Digital Tools:
Software/Packages: MS Office especially MS-Excel (whichever is applicable)

Detailed Session Plan:

Session Topic Learning Outcomes Case /Reading Chapter
No article/ Lecture /
Activity
1 An introduction to  Describe the functions of the Financial 1
Financial System. System
 State the Constituents of the financial
System

2-3 Financial Markets  Enumerate the basic features of various 3,7

Financial Markets: Money market,
Equity Market, Corporate Debt Market,
Government Securities Market. Mutual
Funds Market, Forex Market,
Derivatives Market, Credit market,
Insurance Market, Pension Funds
Market, Real Estate Market,
Commodities Market, Alternate
Investments Market etc.,
4 Financial Assets  Appraise the role of Financial Assets and
Financial Intermediaries in the Financial
System
5 -6 Money Markets  Summarize the functioning of money 2
markets and describe the role of financial
Intermediaries
 Describe the method of Trading,
Payment, and settlement of money
market instruments.

7 An introduction to  Understand the definition, nature and 8

Treasury Management scope of Treasury Management
8 Corporate Treasury  Appreciate the Role of Treasurer in a
Company, and explain the importance,
challenges and priorities of Corporate
Treasury.
9 Role &Functions of  Understand and differentiate the role of The Finance Function
Treasurer, Controller Treasurer from Controller in a Global
and CFO Corporation
(HBS- R0807K)

3
 IBS Hyderabad (Academic Year 2022-23)
10-11 Integrated Treasury  Role of Front, mid and back office Securities Trading: 8,11
operations Front, Middle and
 Know the structure and Organization of back Office. HBS
Integrated Treasury case ( 9 – 110-070)
 Understand the need and role and
functions of Integrated Treasury.
12 Monetary & Credit  Describe the influence of Monetary Necessity and 9
Policy policy on Money Markets, and the recent Invention: Monetary
developments in the Monetary and Policy Innovation and
Credit Policy. Subprime Crisis
(HBS-9-709-041)
13 TEST I MCQ Test covering topics covered in 1-12 sessions Weightage: 20

14 Financing Decisions  Appreciate the role of the treasurer in

sourcing the funds from various markets
15 Traditional Functions of  Cash Management and maintenance of 8
a Treasurer in Banks CRR and SLR

16 Cash / Fund  Understand what is Cash and Liquidity Cash Management 9

Management Management Practices in Small
 Understand Cash management objectives Companies: (9-699-
and Cash flow forecasting 047)
 Understand Working capital
management, Excess liquidity: short-
term investing, Optimal cash
management models
17 An introduction ALM  Understand the need and objectives of 9, 4
ALM (paper-II)
 Know the importance of Price Matching
and Maturity Matching

18-19 ALM- Stock Approach  Conversant with the concepts related to

& Flow Approach Stock Approach and inferences there
from
 Asses Liquidity gap using Structural
liquidity and Dynamic Liquidity
techniques.
20 ALM - Implementation  Conversant with the concepts related to 4 (paper-
Risk Sensitive Gap, Duration etc II)
 Understand the ALM implementation
steps and the role of committees
21 TEST II Test covering topics covered in 12-20 sessions Weightage: 20

22-23 Foreign Exchange  Understand Foreign Exchange, Foreign Foreign Exchange 4

Markets Exchange Markets, Players, products, Markets and
intermediaries, regulators and Transactions (9 – 205
transactions – 016)

24 -25 Foreign Exchange  Understand Forex Quotations, Merchant 4

Arithmetic Quotes
 Understand foreign exchange exposures.
Formulate different hedging strategies
affecting exchange rate movements

4
 IBS Hyderabad (Academic Year 2022-23)
26 -27 Forex Hedging  Understand foreign exchange 4,7
applying derivatives exposures. Formulate different
hedging strategies affecting
exchange rate movements
 Understand Currency Arbitrage
 Get to know history and exchange
systems in the world
 Exchange for casting – PPP, IRP
28-29 Investment Portfolio of  Understand the components of
Bank Investment Portfolio
 Understand the Investment portfolio
of Banks- RBI Guidelines;
Investment Management
 The relevance of Components of
Bank’s Investment Policy
 Investment management strategies
 Valuation of Investment Portfolio –
Models of Investment
30-31 Internal Treasury  Understand the structure and Introduction to 12
Control Organization of Treasury; internal Control
Accounting and control; Process (9 – 105 –
 Understand the Various Measures of 040)
Control
 Insight into Information systems and
Reporting Standards; Measuring
Treasury Performance
32 Treasury Risk  Understand the interest risk 10
Management management and Credit risk
Management in Treasury /ALM
context.
33 Best Practices in  Conversant with the best practices 13
Treasury Management of Treasury management in India
Latest Trends in and abroad.
Treasury Management  Become aware of the reports on
Treasury by different Research
organizations

Local/National/International Perspective:

Session Mapped Topic(s) in

Article/Case/Minor Project Pedagogical Tool
No. Session Plan
Monetary & Credit
9 Latest trends in the market Group discussion
Policy
Significance and importance of ALM
14-18 ALM Approach Group Discussion
statements

SDG Sensitization:

Session Mapped Topic(s) in

Topic Specific Learning Outcomes Pedagogical Tool
No. Session Plan

8 Integrated Treasury Quality Education Group Discussion

5
 IBS Hyderabad (Academic Year 2022-23)

Data Based Insight:

Evaluation of Performance of Banks using the data available from RBI web site. (Statistical tables relevant to
banks in India.)
.
Evaluation Scheme and Timelines:
Keeping in line with continuous evaluation at IBS the following evaluation schedule has been drawn. Students
are expected to go through the dates / sessions mentioned and prepare accordingly.

Component Expected slot Marks

Component Weightage
Number / due date declaration by
Test – 1 1 11 13 20
Test – 2 2 23 25 20
Project Report (On going) 3 15 / 30 17 / 33 10
Class Participation 4 33 33 10
End Exam At the end of the semester 40
Total 100

Expectations from Students:

a. Students must report to the respective sessions well before the announced time. Latecomers will not be
permitted to join the class after the scheduled time. If late, the attendance for that session will be marked as
absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the chapter
indicated in the course plan as the faculty directs.
c. In the class discussion student is expected to participate actively and contribute to individual and group learning.
Evaluation is based on active participation.

Use and Adoption of Software/Analytical Tools/Packages:

All the software/analytical tools/packages subscribed by the institute can be used widely for regular learning and also
project work. The institute offers access to various online databases through KNIMBUS platform. Any other
tools/packages to be used shall not infringe copyright of the provider.

Plagiarism policy:
Any infringement of copyright/patent/trademark is not appreciated and shall be viewed seriously. The students are
suggested to take proper help/support from the faculty members in this regard. So that students don’t get into this
infringement aspect either knowingly/unknowingly.

Project Work/Report Guidelines:

 A group of Projects are suggested to the students in a Google sheet.
 Each student can select a project of his / her choice.
 The projects are normally related to Money markets, Forex Markets, Government Securities market, ALM
Process etc .
 The students are supposed to cull data from authentic sources like RBI/IBA/ IIBF etc.
 A part submission of the report is done at the end of 15 th session and the final report is to be submitted at the end
of 30th session.