12MBABI333 Banking & Financial Services syllabus for MBA


Unit-1 Banking 8 hours

Banking: Meaning and Definition, Evolution of Indian Banks.Types of banks -Public Sector, Regional Banks, Performance of PublicSector banks, Private Sector Banks.Commercial banking: Structure, Functions - Primary & secondary function,Role of commercial banks in socio economic development, Servicesrendered. Credit creation and Deployment of Funds. Bank Clearing House:Clearing Procedure.Hi-tech Banking: Modern technology in Banking, Core banking, E Banking,ATM, EFTS, RTGS, Internet Banking, Mobile Banking.

Unit-2 Bank and Customer 8 hours

Bank and Customer: Relationship between the Banker and the Customer.Types of accounts and Deposits, Forms of lending. Bank`s obligation tocustomers.Documents & Procedure for loan.Asset Liability Management in banks: Components of Liabilities andComponents of Asstes, Significance of Asset Liability management, Purposeand objectives. ALM as co ordinated Balance Sheet management.Banking Instruments- Cheque, bank draft, e-cheque, Travellers cheque,credit card, cheque cards, Debit card.Concepts of Universal Banking

Unit-3 International Banking 6 hours

International Banking: Exchange rates and Forex Business, Correspondentbanking and NRI Accounts, Letters of Credit, Foreign currency Loans,Facilities for Exporters and Importers, Role of ECGC, RBI and EXIM Bank.

Unit-4 Merchant banking 6 hours

Merchant banking: Origin, Services rendered by Merchant bankers,Functions of Lead managers, SEBI Guidelines for Merchant bankers.Non-Banking Finance Companies: Functions, RBI Guidelines, PrudentialNorms.

Unit-5 Money Market 8 hours

Money Market: Structure – Organised and Un organized Market, Call MoneyMarket, Bills market, Market for Government Securities.Money market Instruments: Treasury Bills, Repurchase Agreements /Reverse Repo, Commercial bills, Commercial papers, Certificate of deposit.

Unit-6 Housing Finance 8 hours

Housing Finance: Types, Institutions and banks offering Housing Finance,Procedure and Interest rates.Income Tax Implication.Leasing: Concept, Steps in Leasing Transactions, Types of Lease, Legalframeworks, Advantages and dis advantages of Leasing, Contents of a LeaseAgreement, Matters on Depreciation and Tax, Problems in leasing, Factorsinfluencing Buy or Borrow or Lease Decision.Hire Purchasing: Concepts and features, Hire Purchase Agreement,Comparison of Hire Purchase with Credit sale, Installment sale and Leasing.Banks and Hire Purchase. Reverse mortgage.Problems related to outright purchase, Hire purchase and Leasing.

Unit-7 Credit rating 6 hours

Credit rating: Definition and meaning, Process of credit rating of financialinstruments, Rating methodology, Rating agencies, Rating symbols ofdifferent companies. Securitization of debt: Meaning, Features, SpecialPurpose Vehicle, Types of securitisable assets, Benefits of Securitization,Issues in Securitization.Factoring:Meaning,Definition,Functions,Types,CostofFactoring.Forfeiting.

Unit-8 Venture Capital 6 hours

Venture Capital: Concept, features, Origin in India and the current IndianScenario.Depository System: Objectives, activities, interacting systems, role ofdepositories and their services, Advantages of depository system -NSDL andCDSL. The process of clearing and settlement through Depositories,Depository Participants.(QUESTION PAPER: Full Theory Case study-Problem on leasing, hirepurchase, outright purchase.)

Last Updated: Tuesday, January 24, 2023