JAI HIND COLLEGE AUTONOMOUS

Syllabus for S.Y.BBI

Course :Banking Insurance

Semester : III

Credit Based Semester & Grading System

With effect from Academic Year 2018-19

 List of Courses

Course: Banking Insurance Semester: III

NO. OF
SR. COURSE NO. OF
COURSE TITLE LECTURES
NO. CODE CREDITS
/ WEEK

SY

15 CBBI301 MUTUAL FUND MANAGEMENT 4 3

16 CBBI302 FINANCIAL MARKETS 4 3

17 CBBI303 IT IN BANKING & INSURANCE - I 4 3

18 CBBI304 DIRECT TAXATION 4 3

19 CBBI305 FINANCIAL MANAGEMENT 4 3

20 CBBI306 AN OVERVIEW OF BANKING SECTOR 3 2

21 CBBI307 MANAGEMENT ACCOUNTING 4 3

2
 SEMESTER III
Course
Code MUTUAL FUND MANAGEMENT 03 Credits
CBBI301

THEORY 60 lectures

Sub Unit Unit – I: Introduction to Mutual Fund 15 lectures

1. History & Origin, Definition, Meaning, Characteristics, Ad-
vantages, Disadvantages, Limitations of Mutual Funds, Ethics in
Mutual Fund. Entities involved – Sponsor, Trust, Trustee, Asset
Management Company, Registrar and Transfer Agent ( RTA) and
Fund Houses in India.
2. Legal Framework - Role of regulatory agencies for Mutual funds –
SEBI, RBI, AMFI, Ministry of Finance, SRO, Company Law
Board, Department of Company’s affairs, Registrar of Companies.
3. MF guidelines on advertisement , Accounting , Taxation and Valu-
ation norms, Guidelines to purchase Mutual Funds, Investor pro-
tection and MF regulations, Grievance mechanism in MF in India.
Unit – II: Classification of Mutual Fund 15 lectures
1.  Types of Mutual Fund- (introduction and Characteristics)

 Functional/Operational – Open ended, close ended, Interval

 Portfolio – Income, Growth, Balanced, MMMF

 Geographical/ Location – Domestic, Offshore

 Miscellaneous - Tax Saving Funds, Exchange Traded

Funds, Balance Funds, Fixed Term Plan, Debt Funds, Sys-
tematic Investment Planning & Systematic Transfer Plan

 Multi cap fund

 Midcap fund

 Sector fund and thematic fund

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 2. Portfolio Maturity, Calculations of NAV, Entry Load, Exit Lood ,
holding period return.
Unit – III: Fund Selection Criteria 15 lectures

1. Fund Rating and Ranking – Its need and importance. Basis of Rat-
ings, Interpretation of Funding Rating by CRISIL, CARE and
ICRA, Selection Criteria – (Size, Stability, Credit Portfolio, Per-
formance)Performance Measurement – Rolling Returns and
Benchmarking

2. Yield To Maturity and Bond Valuation

Unit – IV: Financial Planning in Mutual fund 15 lectures

1. Basics of Financial Planning – Financial Planning Steps, LifeCy-

cle, Wealth Cycle, Risk Profiling, Asset Allocation, Contingency
Funds.

2. Investors Guide Towards Financial Planning – Eligibility for

investment in MF, KYC (Individuals, Micro SIPs, Institutional In-
vestors,Fund Category Guidance) ( Long Bond Funds, Short Bond
Funds, Ultra Short Bond Funds) , Need for Financial Advisor, Dif-
ference between Advisor and Distributor, Colour Coding MF prod-
ucts, Bank FD’s V/s Mutual Funds, Dividend V/s Growth Option
3. Developing Model Portfolio for Investors – Model Portfolios
meaning, Step by Step Approach of Building Model Portfolio
ICA Written test – 20 marks
(Internal Case based presentation – 20 marks
Continuous
Assessment)

4
 Course
Code FINANCIAL MARKETS 03 Credits
CBBI302

THEORY 60 lectures

Sub Unit Unit – I: Indian Financial System 15 lectures

1. Introduction, Meaning, Functions of financial system,Indian finan-
cial system from financial neutrality to financial activism and from
financial volatility to financial stability, Role of Government in
financial development, Overview of Phases of Indian financial
system since independence (State Domination – 1947-1990, Finan-
cial sector reforms 1991 till Financial Sector Legislative Reforms
Commission 2013), Monitoring framework for financial conglom-
erates

Unit – II: Financial Markets in India 15 lectures

1. A) Indian Money Market – Meaning, Features, Functions, Im-
portance, Defects, Participants, Components of Organized
and Unorganized markets and Reforms

B) Indian Capital Market - Meaning, Features, Functions, Im-

portance, Participants, Instruments, Reforms in Primary and
Secondary Market.

C) Indian Stock Market - Meaning and functions of Stock Ex-

change- NSE and BSE.

2. A) Equity Market – Primary Market, IPO, Book Building, Role

of Merchant Bankers, ASBA , Green Shoe Option, Issue of
Bonus shares, Right Shares, Sweat Equity shares, ESOP.

B) Indian Debt Market –Market Instruments, Listing, Primary

and Secondary Segments

Unit – III: Commodity Market 15 lectures

1. A. Introduction to commodities market - Meaning History &

origin, Types of commodities traded.

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 B. Structure of commodities market in India.

2. A. Participants in commodities market, Trading in commodi-

ties in India(cash & derivative segment)
3. A. Commodity exchanges in India & abroad

B. Reasons for investing in commodities

Unit – IV: Derivatives Market 15 lectures

1. A. Introduction to Derivatives market - Meaning, History &

origin

B. Elements of a derivative contract

2. A. Factors driving growth of derivatives market

B. Types of derivatives, Types of underlying assets, Partici-

pants in derivatives market, Advantages & disadvantages of
trading in derivatives market

3. A. Current volumes of derivative trade in India

B. Difference between Forwards & Futures

ICA WRITTEN TEST – 20 MARKS

(Internal CASE BASED PRESENTATION – 20 MARKS .
Continuous
Assessment)

6
 Course
Code INFORMATION TECHNOLOGY IN BANKING & INSURANCE - I 03 Credits
CBBI303

THEORY 60 lectures

Sub Unit Unit – I: Introduction to Electronic Commerce 15 lectures

1. E-Commerce Framework, E-Commerce and media convergence, anato-
my of E-Commerce Applications,

2. Types of Ecommerce, Advantages and Disadvantages, Models based on revenue

models, Protocols (Hypertext Transfer Protocol, Simple Mail Transfer Protocol

3. E-Commerce Consumer and Organization Applications, , Secure Sockets Layer,

TCP,IP), Encryption & Decryption & Types of Encryptions, Digital Signature

Unit – II: Networking 15 lectures

1. Data Communication, Components, Introduction and types Network
(LAN , MAN, WAN), Network Topologies (Star, Bus, Ring, Tree, Mesh,
Wireless mesh, Network Structure, Network Media, Satellite Communi-
cation, Network hardware

Unit – III: MS-Office: Packages for Institutional Automation 15 lectures

1.

Ms-Word: Usage of Tables, smart art tools, Chart, Header Footer bookmark,
hyperlink, mail merge, Macros, Page layout, utility and converting word as PDF
files.

2.

Ms-Excel: Manipulating data, Working with charts, Using formulas and logical
operators, Creating and using name ranges, Creating Formulas that uses refer-
ence to cells in different worksheets.

3. Power Point: Create Slides, Insert Image, Shapes, Smart Art,

Chart, Animation, Page Designing, Slide Transition, View Page,
Print Review and Set-up

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 Unit – IV: Web Designing 15 lectures

1. Introduction to the Web.

Introduction to HTML.

2. Formatting Text Using Tags.

Images, List.

Creating Hyperlinks & Types and Anchors.

3. Tables, Complex Tables,

Frames.

Videos, Audios Forms.

ICA PRACTICALS – 40 MARKS

(Internal
Continuous
Assessment)

8
 Course
Code DIRECT TAXATION 03 Credits
CBBI304

THEORY 60 lectures

Sub Unit Unit – I: Definitions and Residential Status 15 lectures

1. Basic Terms (S. 2,3,4)
Assesse, Assessment, Assessment Year, Annual Value, Business,
Capital Assets, Income, Previous Year, Person, Transfer.
2. Determination of Residential Status of Individual, Scope of Total
Income (S.5)
Unit – II: Heads of Income - I 15 lectures
1. Salary ( S.15-17)
2. Income from House Property(S. 22-27)

3. Profit & Gain from Business and Profession(S. 28, 30,31,32, 35,
35D,36,37, 40, 40A and 43B)
Unit – III: Heads of Income - II 15 lectures

1. Capital Gain (S. 45, 48, 49, 50 and 54)

2. Income from other sources (S.56- 59)

3. Exclusions from Total Income (S.10) (Exclusions related to speci-

fied heads to be covered with relevant heads of income)
Unit – IV: Computation of Total Income & Taxable Income 15 lectures

1. Deductions from Total Income

S. 80C, 80CCC, 80D, 80DD, 80E, 80U, 80TTA
2. Computation of Taxable Income of Individuals

ICA WRITTEN TEST – 20 MARKS

(Internal WRITTEN TEST – 20 MARKS .
Continuous
Assessment)

9
 Course
Code FINANCIAL MANAGEMENT - I 03 Credits
CBBI305

THEORY 60 lectures

Sub Unit Unit – I: Introduction to Finance and Financial Management 15 lectures

1. Introduction to Finance:
• Meaning and definition of finance
• Importance finance
• Types of Finance: Public and Private
• Sources of finance
1.Long Term Sources : Term Loans, Debentures, Bonds, Zero
Coupon bonds, Convertible Bonds, Equity shares, Preference
shares, CD, CP, Public Deposits
2.Short Term sources: Bank Finance, Trade Credit ,Other Short
Term Sources
3.Venture Capital and Hybrid Financing
2. Financial Management
• Meaning and Importance of Financial Management
• Scope of Financial Management
• Functions and Objectives of Financial Management
• Primary Objective of Corporate Management
• Agency Problem
• Organization of Finance Function
• Emerging role of Finance Managers in India.
3. Objectives of the Firm
• Profit Maximization and Shareholders Wealth Maximization,
• Profit V/s Value Maximization
Unit – II: Financial Goal Setting & Time value of Money 15 lectures
1. Financial Goal Setting
 Introduction
 Financial Forecasting – Meaning, Techniques, Benefits
 Approaches to Financial Planning
 Economic Value Added (EVA)– Measurement &
Components
 Free Cash Flow (FCF)
2. Time Value of Money
 Concept
 Present Value
 Annuity

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  Techniques of Discounting
 Techniques of Compounding
Unit – III: Investment Decisions: Capital Budgeting 15 lectures

1. Capital Budgeting
• Nature of Capital Budgeting
• Purpose of Capital Budgeting
• Capital Budgeting Process
• Types of Capital Investment
• Basic Principle of Measuring Project Cash Flows
• Increment Principle, Long Term Funds Principle, Exclusion of
Financial Cost Principle, Post Tax Principle
• Probability technique for measurement of cash flow
• Capital Budgeting Techniques: Net Present Value Profitability
Index and Discounted Pay Back Method.
• A Comparison; Project Selection Under Capital Rationing
(Note: Problems on computation of cash flow, ranking of projects
on various techniques, selection and analysis with / without capital
rationing)
Unit – IV: Financial Decisions 15 lectures

1. Cost of Capital :
 Introduction and Definition of Cost of Capital
 Measurement of Cost of Capital
 Measurement of WACC using book value and mar-
ket value method.
 Measuring Marginal Cost of Capital

2. Capital Structure Decisions:

 Meaning and Choice of Capital Structure
 Importance of Optimal Capital Structure
 EBIT -EPS Analysis
 Capital Structure Theories
 Dividend Policies (Walter & Gordon)
ICA WRITTEN TEST – 20 MARKS
(Internal WRITTEN TEST-20 MARKS
Continuous
Assessment)

11
 Course Foundation Course – III (AN OVERVIEW OF BANKING
Code 02Credits
SECTOR)
CBBI306

THEORY 60 lectures

Sub Unit Unit – I: An Overview of Banking Industry 15 lectures

1.  Definition of Banks, Types of Banks, Principles of Banking
 Banking System in India, Overview of RBI, Public, Private,
Co-operative, Payment Bank, Regional Rural Banks
 Emerging trends of banking - Universal banking, electronic
banking, globalization of banking.
 Brief history of banking sector reforms from 1991-2000 and
Current developments in banking sector
 Regulatory Architecture – Overview of Banking Regulation
Act 1949, Banking Regulation Act(Amendment 2015), Pay-
ment and Settlement Act 2007, Negotiable Instrument Act
1881, BIS, Basel I, II and III.
 Bank Crises in India
 Critical Evaluation of Banking Industry in India
Unit – II: Commercial Banking and Customer – Banker Rela- 15 lectures
tionship
1.  Definition and meaning of Commercial Bank, Evolution of
Commercial Banking in India, Functions of Commercial Bank ,
Services offered byCommercial Bank.
Retail Banking – Meaning, Features, Significance of Retail
Banking and Overview of its products
Corporate Banking -Meaning, Features, Significance of Corpo-
rate Banking and Overview of its products
 Rural Banking - Meaning, Features, Significance of Rural
Banking and Overview of its products
 Banking Ombudsman – Meaning and Functions
Unit – III: Universal Banking & Technology in Banking sector 15 lectures

1. A) Universal Banking
 Concept of Universal Banking, Evolution of Universal
banking ,Services to Government, Payment & Settlement,
Merchant Banking, Mutual Fund, Depository Services,
WealthManagement, Portfolio Management Bank assur-
ance, NRI Remittance.

2. B) Technology in Banking
 Features, norms and Limitations of E- banking, Mobile

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 Banking, Internet Banking, RTGS, POS Terminal, NEFT,
IMPS, Brown Label ATM’s, White Label ATM’s, NUUP,
AEPS, APBS, CBS, CTS, Digital Signature , M- Wallets ,
Online opening of bank accounts – savings & current, and
application for credit cards, loan.
 Applicability of KYC norms in Banking Sector.
Unit – IV: Microfinance & Financial Inclusion 15 lectures

1. A) Microfinance
 Introduction, Need and Code of Conduct for Microfinance
Institutions in India,
 Advantages, Purpose, Limitations and Models of SHG –
Bank Linkage Program.
 Role of NABARD and SIDBI,
 Portfolio Securitization,
 SHG-2, NRLM and SRLM ,
 Priority Sector and its Classification
2. B) Financial Inclusion
 Need & Extent
 RBI Committee Report of Medium Term Path on Financial
Inclusion 2015, World FindexReport 2015, NISM Report
2015, (Only Brief Extracts relating to bank account hold-
ings and credit taken and contrast between developing and
developed nations.)
 Features & Procedures of Pradhan Mantri Jan Dhan Yojana,
and PM Mudra Yojana.
 Features, procedures and significance of Stand up India
Scheme for Green Field
ICA WRITTEN TEST-20 MARKS
(Internal CASE BASED PRESENTATION – 20 MARKS
Continuous
Assessment)

13
 Course
Code MANAGEMENT ACCOUNTING 03 Credits
CBBI307

THEORY 60 lectures

Sub Unit Unit – I: Introduction to Management Accounting 15 lectures

1. Meaning and Definition,Scope, Functions, Objectives, Im-
portance, Role of Management Accounting, Management Ac-
counting Framework, Tools of Management Accounting.
Unit – II: Financial Statement analysis 15 lectures
1. Introduction to Corporate Financial Statements :
Understanding the Balance sheet and Revenue statements with the headings
and sub headings, Uses of financial statements, Users of Financial Statements.

2. A.
Financial Statement Analysis :
Introduction and Meaning of Financial Statement Analysis,
Steps, Objective, Types of Analysis.
 Ratio analysis: Meaning, classification, Du Point Chart,
advantages & limitations.
 Balance Sheet Ratios: Current Ratio, Liquid Ratio, Stock
Working Capital Ratio, Proprietary Ratio,Debt Equity Ra-
tio, Capital Gearing Ratio.
B. Revenue Statement Ratios: Gross Profit Ratio, Expenses
Ratio , Operating Ratio, Net Profit Ratio , Net Operating
Profit Ratio , Stock Turnover Ratio, Combined Ratio, Re-
turn on Capital employed (Including Long Term Borrow-
ings), Return on proprietor’s Fund (Shareholders Fund and
Preference Capital , Return on Equity Capital, Dividend
Payout Ratio, Debt Service Ratio, Debtors Turnover, Credi-
tors Turnover.
Unit – III: Working Capital Management 15 lectures

1. Concept, Nature of Working Capital, Planning of Working Capital,

Estimation/Projection of Working Capital Requirements in case of
Trading and Manufacturing Organization
Operating Cycle.
Unit – IV: Management of Profits/Dividend Policy 15 lectures

1. Meaning, Types, Factors influencing dividend policy, Forms of

dividend.Determinants of Dividends Policy: Factors; Dividend Pol-
icy in India; Bonus Shares (Stock dividend) and Stock (Share)
Splits; Legal, Procedural; and Tax Aspects associated with Divi-

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 dend Decision.

ICA WRITTEN TEST 20 Marks

(Internal WRITTEN TEST 20 Marks
Continuous
Assessment)

15