Semester III

Elective-I Bank Management

University Examinations 50 Marks Internal Assessment 50 Marks Total 100 Marks

Unit-I: Nature of Banking Business: Socio, Economic and legal environment of banking business in India- Official regulation and control over banks in India: Banking Regulation Act 1949, Reserve Bank of India Act, 1934, Banking Companies Act, 1970 etcDiversification of Banking in India. Unit-II: Forms of Banking: Branch Banking, Unit banking, Group Banking, Chain Banking, Process of Bank Management. Location policies and decisions, organizational structure of commercial banks in India, Department set up of head office, zonal office, Regional office and Branchy Offices. Delegation of authority in banks, management of deposit and advances. Unit- III: Bank balance sheet: Management of assets and liabilities in banks- profitability and productivity in banks, Management of large sized branches and rural branches. Internal control and performance budgeting system. Preparation of Bank profit & loss A/C and balance sheet, income recognition and asset classification norms. Unit- IV: Human resource development in banks: manpower planning, recruitment, training, promotion, and motivation. Bank marketing: Product planning and Development. Computerization of Banks: Need, application, progress, problems, current issues and problems of management of banks in India. Unit-V:

Management of Bank Technology: Electronic Banking, core banking, ATMs, online banking. Personal identification number and their use in conjunction with magnetic cards(Debit & credit cards), smart cards, signature storage and display by electronic means, cheque truncation, microfiche, note and coin counting devices. Electronic funds transfer systems- Different sources, its effect on customers and service quality. Books for Reference: 1. R. Keshavnathan: Banking and Insurance management, Academic excellence publication. 2. Singh, Bhattacharya: Banking sector management, Discovery publishing house.

Semester - III Elective-II Banking Law and Practice

University Examinations 50 Marks Internal Assessment 50 Marks Total 100 Marks

Unit I: Banker- customer relationship: Definition and Meaning of Banker and Customer- permitted activities of commercial banks in India,- General and special features of their relationship , Their rights and duties. Unit II: Business environment of Commercial Banks, Negotiable instrument act and various methods of granting advances viz Cash credit, bills discounting and term loan finance. Other instruments parties if Nis crossing endorsement- payment and collection of cheques- forged instruments- bouncing of cheques and their implications- various laws affecting bankers. Unit III: Funded services- working capital finance, bill Discounting, Export Credit, Term
Lending. Non funded service- LC, Guarantees, collection of Documents Clearing and Settlement Processes Value added Serviced RTGs, CMS, Salary A/cs Various forms of financing methods under non fund based limits viz Bank guarantees and letters of credit etc Appraisal of Fund Based limits and non fund based limits viz ratio analysis, MPBF method of assessing working capital requirement.

Unit IV: Banking services Remittances Safe custody safe deposits vaults collections
Deposits accounts- opening operations and closures- Fixed Deposits- Saving accountcurrent account- Deposits scheme for NRIs, other Deposits schemes, mandate and Power of Attorney- Nomination Facility Insurance of Bank Deposits.

Unit V: Balance sheet management and Profit and Loss Management - Management of
Nonperforming assets - Capital Adequacy under Basel II guidelines, Asset liability Management and various other risk management

Reference Book: 1. D K Murthy, Indian Financial System, IK International Private Limited. 2. H R Machiraju, Modern Commercial Banking, New Age International 3. Parameswaran R, Natarajan S, Kandasami K P, Banking Law and Practice, S.Chand Publications 4. RBI Guidelines.

Semester III Elective-III MERCHANT BANKING AND FINANCIAL SERVICES

University Examinations 50 Marks Internal Assessment 50 Marks Total 100 Marks

UNIT-I - Overview of Indian Financial System-Development Since 1991- Role of Financial Intermediaries- Various Financial Intermediaries. Merchant Banking in IndiaRecent Developments and challenges ahead- Institutional structure functions of Merchant Banking SERA-SEBI guidelines- FRMA relation with stock exchange. UNIT-II-Capital Market- Instruments-Traditional and Emerging (ECB, ADR, GDR) Capital Marketing in India-Operations in Primary Markets-Instruments involved-Role of SEBI. Secondary Markets Stocks Exchanges in India-National Stock Exchange (NSE) Stock Holding Corporation of India (SHCIL)-Share Trading- Introduction to Derivatives and Commodities UNIT-III Issues Management- Role of Merchant Banking in appraisal of projects, Designing capital structures and Instruments- Issue Pricing Preparation of Prospectus selection of bankers, advertising, consultants, etc. Role of Registrars and Brokers offer to sales- book building- Green shoe option- E- IPO Private Placements Bought out Deals Off shore Issue, Post issue activities. UNIT-IV - Money Market Nature and role of Money market in India Instruments in Money Market viz, CPs, CDs,Bill of exchange, ICDs, Treasury Bill Role of DFHI/STCI in Money Market ECBs. UNIT-V Financial Services Credit rating Factoring and forfeiting leasing and hire purchasing- Securitization of debts-Housing finance Merchant Banking services and functions, Mutual Funds, FIs & FIIs- Venture Capital REFERENCE BOOKS 1. Indian Financial Services- M.Y. Khan 2. Marketing of Financial Services- V. A. Avdhani 3. Advance Financial Management- Kohak 4. SEBI Guidelines on Merchant Banking. 5. Indian Financial system Machiraju 6. A Manual of Merchant Banking- J.C. verma 7. International Financial Centers- Bhalla V.K and Dilbag, singh 8. Management of Financial Services- Bhalla V.K.

Semester III

Elective-IV Bank Credit, Treasury, and Risk Management

University Examinations 50 Marks Internal Assessment 50 Marks Total 100 Marks Unit-I: Meaning of Bank credit, Basic credit terms, the origin of credit, socio-economic perspective of credit, the place of credit in the enterprise, cost of credit, the various types of credit, introduction to the credit function, the collection systems and procedures and credit practice. Unit- II Credit and collection policy, factors/components of the credit and collection policy, the analysis of credit information, the role of credit agencies, analysis of final statements of an enterprise, credit risk/ standards, credit granting, documents and records of credit transactions, effective management and control regarding credit and collector. Unit-III The influence of the total business environment on credit management, the role and management task of credit manager, credit reporting, the effectiveness of the credit and collection policy, alternative collection procedure, credit insurance. Unit-IV Introduction to strategic credit management, goals and objectives of the organization and the credit function, formulating credit strategies, selection and evaluation of credit strategy. Treasury management: Meaning, objectives, concept, functions of integrated treasury, process of globalization, evolving role of treasury as profit center, organization and treasury.

Unit-V: Risk management: Definition of risk and risk management, risk management processrisk identification, measurement, monitoring and control. Types of risks- Business risks, credit risk, market risk, earning risk, liquidity risk, operational risk, control risk, capital interest rate risk and management- factors influencing interest rates, theories on interest rates- Liquidity Adjustment Facility (LAF), Fixed income securities- Pricing, valuation and yield. Bond portfolio Management

Books for Reference: 1. ITBF, Risk Management, Macmillan, New Delhi 2. Bhasaran, R: An introduction to fund and Investment management in Banks, Bankers Institute of Rural Development.

Semester IV Elective-I Rural Banking

University Examinations 50 Marks Internal Assessment 50 Marks Total 100 Marks

Unit I- Introduction to rural banking- Features of Rural Economy in India, Principles and functions of rural banking, function of Apex MSCB, DCCB, functions and role of RBI, NABARD, functions and objectives of RRB. Unit II- Sources of rural finance- Institutional sources Co-operative credit Agencies Structure of Co-operation credit in India Weakness of co-operative credit agencies Taccavi loans Need transfer of taccavi funds to co-operatives Suggestions to improve the working co-operative credit agencies. Non-Institutional sources Money-lending Friend and relatives Government Sources. Unit III- Agriculture and Rural Banking- Pattern of Agricultural loans in India. Rural indebtedness causes and measures, purpose of agri loan and advance, utilization of loans, security and repayment of loans. Issue of Farmers suicide Crop insurance Unit IV- Regulation- Regulation of Rural Financial Services: Regulatory framework of RFIs Reserve Bank of India and its policy and functions in Rural Banking, Liberalization and deregulation of interest rates in RFTs. Measures taken under 20 points programme in rural banking Unit V- Recent Trends- Financing poor as bankable opportunities Micro credit: Summit declaration and follow up SHG/Linkage with banking Alternative financial institutions/ NGO involvement Reforms in rural credit system De regularization Prudential norms DAP/IMOU, turnaround strategies.

Reference Books 1. R.M. Srivastava: Management of financial institutions in India. 2.Vasanth Desai: Nature and problems of commercial banking in India. 3. Vasanth Desai: Development Banks: Issues and Options. 4. Ruddar Datta & K.P.M. Sundharam (2004), S.Chand and Company Lrd. Ram Nagar, New Delhi.- Indian Economy. 5. S. C. Ray -Agricultural Indebtedness in India 6. Dr. C.B. Memoria, Dr. B.B Tripathi Kitab Mahal, Allahabad.Agricultural Problems in India.

Semester- IV Elective-II Bank Marketing

University Examinations 50 Marks Internal Assessment 50 Marks Total 100 Marks Unit I- Marketing Management - Meaning, Importance and Functions of marketing management - Marketing of Services characteristics of service marketing, measuring service for banking services, market segmentation for banking services. Unit II- Product Research & Development - Test Marketing of Bank Products Product Life Cycle -Product Modification - New Product Development - Packaging and Branding of Bank Products - Diversification - Pricing of Bank Products and Services Objectives, Strategies and Methods - Factors Influencing the Pricing Decisions, Importance of Unit III- Pricing and Promotion factors influencing pricing of bank products, Promotion - Promotion Mix and Role of Promotion in Marketing - Marketing Information Systems. Role of DSA / DMA in Bank Marketing Init IV- Customer Relationship- Definition and Meaning of Banker and Customer Permitted activities of Commercial Banks in India General and Special Features of their relationship, Their rights and duties. Unit V- Channel Functions and Services -, Channel Management, Factors Influencing Direct and Indirect Channels of Bank Products - Physical Distribution Selling Function in a Bank, Tele Marketing / Mobile Phone Banking References 1. Adam, C., Marketing financiar-bancar, Editura Mirton, Timioara, 2007 2. Badoc, M., Marketing management pur les societs financires (banques, societs dassurances), ditions dOrganisations, Paris, 1995. 3. Estelami, H., Marketing Financial Services, Dog Ear Publishing Ltd., 2007. 4. Guru, C., Online banking in transition economies: the implementation and development of online banking systems in Romania, International Journal of Bank Marketing, Vol. 20 No. 6, 2002. 5. Hoffman, K.D., Bateson, J.E.G., Essentials of services marketing, The Dryden Press, 1997. 6. Lenskold, J.D., Marketing ROI: The Path to Campaign, Customer, and Corporate Profitability, McGraw-Hill, 2003. 7. Vaglio, N., Clapp, B., Shift Happens: The New Age of Bank Marketing: How Changing Lifestyles And Customer Experience Are Challenging Bank Marketers, 2008.

Semester- IV
Elective III

International Banking and Foreign Exchange

University Examinations 50 Marks Internal Assessment 50 Marks Total 100 Marks

Unit-I Introduction: Importance of the study of Banking Systems. Developed and Less Developed Money Markets, Their Characteristics. Importance of Developed Money Market in a Banking System. English Banking System Bank of England, Origin and growth, organizational Structure, Functions, London Money Market, EURO Currency. Unit- II Federal Reserve System: Origin, Organizational Structure and Working, Unit Banking and factors for its growth in USA. New York Money Market Constituents and working, Comparison between London Money Market and New York Money Market. Unit-III German Banking System: Deutche Bundes Bank German Central Bank Organization, structure and functions. Bank of Japan- Structure and Working, Commercial Banking system of Japan, Industrial Banking in Japan Unit-IV Indian Banking: Reserve Bank of India: Functions, Monetary and Credit Policy-its evaluation; Achievements and failures of R.B.I. Indian Money Market, Constituents, Characteristics, defects and measures. International Financial Institutions: I.M.F. and I.B.R.D. Objectives, Functions, Assistance to India by these Institutions. Unit-V Interest, inflation and exchange rates: Covered and uncovered parities - Overshooting. Functioning of foreign exchange markets: Foreign exchange risk - Currency futures and Swaps - Options and hedges; Multinational Banking.

Volatility in exchange rates: Market intervention - Capital account convertibility Models of currency crisis International Monetary System Reforms. Books recommended: 1. Sayers, R.S. Modern Banking 2. Basu, S.K. Contemporary Banking Trends. 3. Saxena, K.B. International Banking: Banking Theory and Principal Banking Systems (Hindi) 4. Machenize, K. Banking Systems of Great Britain, French, germany and U.S.A. 5 P Krugman and M. Obstfeld, International Economics: Theory and Policy, 5/e, Pearson Education, 2000 6. G Gandalfo, International Finance and Open Economy Macroeconomics, 2/e, Heidelberg, Spinger Verlag, 2002 7. Adrian Buckley, Multinational Financial Management, Prentice Hall, 3/e, 2003. 8. R Caves, J A Frankel and R W Jones, World Trade and Payments: An Introduction, 9/e, Pearson Education, 2002 9. P B Kenen, International Economics, Cambridge University Press, 2000.

M.B.A. Semester IV University Examinations 50 Marks Internal Assessment 50 Marks Total 100 Marks Course No. 408 Paper No. XXXII Group- A/B/C/D. PROJECT REPORT AND VIVA VOCE (Project Report Based On Marketing/ Financial/HRM/Information System/Banking Management) (Practical training and Project work) ---------------------------------------------------------------------------------------------------------Objectives: To make MBA Students aware of the industrial environment by self experience, in plant training is essential. 1) For this every student shall have to under go practical training of six weeks in a private / public / government / semi government, large size business organization during vacation at the end of the second semester. 2) A candidate will be admitted to the III semester provided he / she has undergone practical training. He / she should submit a certificate to this effect to the University Dept. /School/ College/ Institute. 3) The candidate shall after completion of the practical training submit either an observation report or a detailed project report (based on the in plant training) in area of proposed specialization. 4) If a student is submitting an observation report, the conditions are as follows : a) Observation report should be submitted at the end of IV semester. b) Candidate should carry out a survey project during IV semester. The project topic should be approved and finalized by the guide. The survey work should be related to the area of specialization. The survey report (project report) should be submitted at the end of IV semester. 5) A Student not submitting observation report but the desires of submitting a project report based on in plant training should follow the following procedure.

a) Student should expressly state the desire of preparing a project report and get it approved from the guide. b) Student should carry out activity of preparation of a project report based on in plant training in III semester in consolations with the guide. The topic of the project report should be in the area of specialization. The project report should be submitted at end of IV semester. The Student will be expected to work under the close supervision of the project guide. Project Topic should be in the area of specialization and should necessarily include fieldwork in addition to library study. The project shall include data collection data analysis and interpretation and implication for management decision-making in the functional area concerned. The student will study live business situation and use the same as inputs in project preparation. There will be regular project classes (4 hours a week) including preparation for viva vice. The student will be expected to make a presentation of the project towards the end of the IV semester out of the 100 marks assigned to the project report, project work will carry 50 marks and viva of the project report carries 50 marks. Project report will be assessed by the internal teacher for 50 marks and viva of the project will be arranged by the Head. The committee for conducting viva-vice for MBA at the end of IV semester shall consists of four members of which two will be external members (outside university area) and the other two will be form the university area one of whom shall be the project guide and the other one is Head of the Dept. Head of the Dept will submit a panel of 10 Examiners to Hon. Vice chancellor through the Director of the School of which two examiners will be nominated by the Vice chancellor as per specialization. This exercise is part of Internal Assessment. . The project report should be submitted in one Computer typed copy to the University / College. No. Student shall be permitted to take admission in III semester unless he / she submit the implant training certificate.