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LUMBINI BANIJYA CAMPUS

(Affiliated to TU)

REVISED CURRICULUM

(w.e.f 2020)

MASTERS OF BUSINESS ADMINISTRATION – BANKING AND FINANCE (MBA-BF)

(an autonomous program)

LUMBINI BANIJYA CAMPUS

BUTWAL, NEPAL

January, 2020

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LUMBINI BANIJYA CAMPUS

Butwal, Nepal

Programme: MBA -BF, Masters of Business Administration- Banking and Finance

No. of Semesters: Four

Duration of Course: 2 yrs.

Evaluation System: 50% In-semester Assessment and 50% Semester-end Evaluation

Programme Objective

The general objective of the MBA -BF is to produce multi- talented, skillful, dynamic

and intelligent MBA graduates absolutely fit for Local and Global Markets in the area

like Banking, Finance Companies, Micro Finance, Co-operatives, and other Financial

Services.

Upon Completion of the MBA-BF Students will gain the following:

They can display competence, knowledge and skill in key business functional

areas like accounting, finance, marketing, and management

The verbal and writing skill for communication will be enhanced

The capacity to work in team professionally and effectively shall be enriched

Scholars can develop an understanding of diverse and rapidly changing global

business environment

All the graduates will be equipped with detail knowledge about operation of

banking and financial intuition

MBA scholars could apply decision making techniques, using both qualitative

and quantitative analysis to management issues

Students will be able to analyze and evaluate ethical issues that occur at all

levels of business decision making

Upon completion of degree scholars will be able to access and analyze risk

associated with business organization

The strategic analysis using both theoretical and practical application would

become easier for the students

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The Grading System #

The grading system of MBA-BF (Master in Business Administration- Banking and

Finance) in Lumbini Banijya Campus is as follows:

GPA: Grade Point Average

CGPA: Cumulative Grade Point

Grade Cumulative Grade Point

Average CGPA

Remarks

A 4.0 Distinction

A- 3.70-3.99 Very Good

B+ 3.30- 3.69 First Division

B 3.0- 3.29 Second Division

B- 2.70-2.99 Pass in individual subject

F Below 2.70 Fail

The students shall receive their grades in semester-end final academic transcript only

in letter grades and CGPA scores.

Minimum Eligibility for Admission and Admission Procedures

A graduate degree under 10+2+3 or 10+2+4 patterned under any discipline

securing at least 45 marks in aggregate including languages from a

recognized university in Nepal or abroad.

Candidates who have passed bachelor/master degree through

correspondence/open university system from any other university are also

eligible to appear LBC-MAT (Lumbini Banijya Campus Management

Admission Test)/Entrance Test.

The LBC-MAT/Entrance Test is based on GMAT.

Duration of the Course

The duration of the MBA-BF program shall extend over four semesters (two

academic years). The maximum duration for the course will extend for five years.

# Means revised

# The Grading System of Executive Council Passed On 2074-08-05 Meeting No. 1581.

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Medium of Instruction

The medium of instruction for all subjects, and examinations shall strictly be in

English.

Attendance

Students are required to attend for not less than 80 percent of the classes in

each subject in order to be eligible to appear semester-end examinations.

The statement of attendance shall be displayed on the notice board by the

institution at the end of every month.

A student who remains continuously absent from class for 7 days without prior

admission shall not be permitted to take the semester-end examination of the

concerned subject.

Scheme of Examination

Each course will have two components: Internal Assessment and Semester-

end Examination.

Each course will carry 100 marks of which 50 percent marks will be allotted

for internal assessment and the rest for semester-end examination.

The duration of the written examination shall be:

3 CR- 4 hrs

2 CR- 3 hrs

1 CR- 2 hrs

Semester-end examination papers will be evaluated by two external

examiners, and average marks will be awarded in each paper.

Evaluation System

a. Internal Assessment

The internal assessments will contain 50 percent of the total weightage. The

concerned faculty shall be responsible for internal evaluation which will consist of

all or any combination of the following:

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I. Attendance- Independent and Compulsory

II. Quizzes and Oral Tests

III. Workshop Practices

IV. Assignments

V. Term Papers

VI. Essay Writing

VII. Project work

VIII. Case Studies, Analysis and Discussion

IX. Presentations

X. Class Participation

XI. Books/Journal/Article Review and Presentation

XII. Any other tests deemed suitable by the concerned faculty members

b. Semester-end Examination

There shall be semester-end examination which carries 50 percent marks of the

total weightage.

Internship Programme

Students are required to undertake internship for practical exposure on what they

have learned in the classroom for a period of minimum 8 to maximum 12 weeks

or at least minimum 45 days. Students are required to submit the internship

project report in the prescribed format. The evaluation of the internship shall be

based on confidential report of the host organization (40 percent) and presentation

of the internship project report in a seminar (60 percent) by the examiner.

Dissertation

The students are required to undertake a research assignment and prepare an

integrative research report in prescribe format. Students are required to attend

Viva-Voce examination and give a seminar presentation. The weight given to

Viva and Research Report will be 50 percent each. For the evaluation of the

research report, concerned authority shall appoint an external examiner.

The MBA-BF is a two year program spread over four semesters. They shall be at

least sixteen weeks of teaching in each semester before commencement of

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semester-end examinations. One lecture hour per week per semester is assigned

one credit. That is, a two credit hours course has 32 class hours.

Together these courses add up to a total of 60 credits: 30 credits for foundation

and business core courses, 18 credits for finance and investment related courses, 6

credits for elective courses, and 6 credits for internship and dissertation projects.

Foundation and Business Core Courses

Managerial Communication

Economics for Managers

Statistics for Managers

Management Principles and Organizational Behaviour

Human Resource Management

Accounting for Managers

Operations Management

Management Information System

Financial Management

Business Research Methods

Business Environment and Strategic Management

Econometrics

Marketing Management

Finance and Investment Core Courses

Commercial Banking Operations and Regulations

Financial Decision Analysis

Credit Analysis and Advances

Investment Management and Security Analysis

Project Appraisal and Valuation

International Finance

Financial Risk Management

Corporate Taxation

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Students must select three courses for their electives. These elective courses must be

selected from anyone of the following three groups and the total credit for three

courses is six credits.

Elective Group I Corporate Finance and Capital Markets

FIN 601 Advanced Corporate Finance

FIN 602 Financial Institutions and Services

FIN 603 Seminar in Finance

Elective Group II Rural Finance for Agriculture and Entrepreneurship

FIN 604 Micro Finance

FIN 605 Entrepreneurial Finance and Venture Capital

FIN 606 Seminar in Rural Finance

Elective Group III Investment Banking

BNK 607 Central Banking and Monetary Management

BNK 608 Bank Risk Management

BNK 609 Seminar in Banking

Internship and Dissertations

Internship

Dissertation

Non-Credit Courses (Soft skills and Ability Enhancement Activities)

Market Exposure Program (Field Visits)

Campus to Corporate (Lecture Series)

Corporate Etiquettes

Business Ethics and Social Responsibility

CRM and Public Relations

Executive Writings

Data Analysis Software Workshop.

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Subject Details

Semester 1st

S.No. Course

Code

Subjects Credits Lecture

Hrs.

1. MGT 505 Managerial Communication 2 32

2. ACC 506 Accounting for Managers 3 48

3. ECO 507 Economics for Managers 3 48

4. MGT 508 Management Principles and

Organization Behaviour

2 32

5 STS 510 Statistics for Managers 3 48

6. MGT 517 Management Information System 2 32

Total 15

Semester 2nd

S.No. Course

Code

Subjects Credits Lecture

Hrs.

1. FIN 509 Financial Management 3 48

2. MGT 511 Marketing Management 2 32

3. MGT 512 Business Research Methods 2 32

4. MGT 514 Human Resource Management 2 32

5. BNK 515 Commercial Banking Operations and

Regulations

3 48

6. STS 516 Econometrics 3 48

Total 15

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Semester 3rd

S.No. Course

Code

Subjects Credits Lecture

Hrs.

1 MGT 513 Operations Management 2 32

2. FIN 518 Financial Risk Management 2 32

3. FIN 519 Financial Decision Analysis 2 32

4. BNK 520 Credit Analysis and Advances 2 32

5. FIN 521 Investment Management and Security

Analysis

2 32

6. MGT 525 Business Environment and Strategic

Management

3 48

7. Elective I 2 32

8. DIT 528 Dissertation 3 48

Total 18

Semester 4th

S.No. Course

Code

Subjects Credits Lecture

Hrs.

1. ACC 526 Corporate Taxation 2 32

2. MGT 522 Project Appraisal and Valuation 2 32

3. FIN 527 International Finance 2 32

4. Elective II 2 32

5. Elective III 2 32

6. INT 523 Internship 2 32

Total 12

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MGT 505: MANAGERIAL COMMUNICATION

Credits: 2

Lecture Hours: 32

Course Objectives:

The Goal of this course is to help students develop knowledge and skills that a

manager needs to effectively communicate with various stakeholders and build

sustain of productive workforce. The students learn how to communicate in a

supportive and persuasive manner, manager, manage conflict, build and lead a team,

and produce effective presentations and written reports.

Course Description:

This course, while familiarizing students of advanced business studies with the

fundamentals of business communication, offers an intensive practice of effective

business communication-written, oral, and non-verbal so that Business Graduates can

apply the skills, experiences and knowledge in their career and beyond. The course

follows the seminar model of classroom teaching, in which students participate in in-

class discussions and presentations.

Course Details:

Unit 1: Communication Fundamentals 7 LHs

Understanding Why Communication Matters, Communicating as a

Professional, Communication Process, Communication Barriers, Ethical and

Legal Communication, Intercultural Communication, Interpersonal

Communication and Business Etiquette, Non-verbal Communication, Digital,

Social, and Mobile Communication.

Unit 2: Managerial Writing 7 LHs

Three-Step Writing Process, Writing Routine and Positive Messages, Writing

Negative Messages, and Writing Persuasive Messages.

Unit 3: Writing Reports, Proposals, and Business Plans 6 LHs

Unit 4: Researching for Effective Communication 6 LHs

Primary and Secondary Research, Primary and Secondary Sources, Search

Strategies, Evaluating Sources, Documenting Sources, Plagiarism.

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Unit 5: Business Writing and Language Research Format 2 LHs

Make your Message Inviting: Choose Fonts, Writing Headings, Use White

Space, Insert Graphics.

Unit 6: Writing Employment Messages and Interviewing for Jobs 2 LHs

Unit 7: Meetings, Presentations and Building Effective Teams. 2 LHs

Suggested Readings:

Bovee, C.L., Thill, J.V. and Raina, R.L. ( 2017) Business Communication Today,

thirteenth edition. New York: McGraw-Hill.

Hartley, P. and Bruckmann, C.G. ( 2014). New York: Routledge.

Verma, S. (2014) Business Communication: Essential Strategies for Twenty-first

Century Managers. New Delhi: Vikas Publishing House Pvt. Ltd.

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ECO 507: ECONOMICS FOR MANAGERS

Credits: 3

Lecture Hours: 48

Course Objectives:

The basic objective of this course is to make the students aware of the various

economic issues that they are expected to face as managers at the corporate level and

to equip them with the tools and techniques of economic analysis for improving their

decision-making skills. It will thus give the opportunity to examine a number of

contemporary and emerging economic concepts and issues. The course will enable

students to consider the complexity of this issue, explore the available literature and

apply concepts to real business scenarios.

Course Description:

This course consists of the introduction to managerial economics, concept of profit,

demand function and price elasticity of demand and their use in business decision

making; pricing theories and techniques; some macroeconomic issues in Nepal like

National income, Business cycle, inflation etc; role of government in the economy.

Learning Outcomes

After the successful completion of the paper, the students will be able to:

Explain the concept of objectives of the firm and profit in business decision

making;

Use the tools of demand analysis in practical decision making;

Determine optimal use of inputs in business practice;

Set optimal prices, price discriminate and form strategies in business

practice;

Describe how the current macroeconomic issues affects the business and

industry;

Describe the role of government in the economy.

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Course Details:

Unit 1: Introduction to Managerial Economics 6 LHs

Nature, Significance and Scope of Managerial Economics, Concept of Profit:

Economic Versus Business Profit. Objective of the Firm- Profit Maximization,

Sales-Revenue Maximization.

Case study and Numerical Problems

Unit 2: Demand analysis 8 LHs

Demand Function; Measurement and Application of Price Elasticity of

Demand; Relation between Price Elasticity and Revenue; Meaning and

Techniques of Demand Forecasting (Qualitative methods- Consumer's Survey

and Opinion Poll; and Quantitative Method- Time Series and Regression

Analysis).

Case study and Numerical Problems

Unit 3: Production and Cost Analysis 10 LHs

The Production Function, Optimal Employment of One Variable Input,

Optimal Employment of Two Variable Inputs, Cobb-Douglas Production

Function Concept and Properties; Economies of scale, Economies of Scope.

Short Run Total Cost and Per Unit Cost Curves, Long Run Total Cost, Long

Run Total and Marginal Cost.

Case study and Numerical Problems

Unit 4: Market Structure and Pricing Theory 14 LHs

Pricing under oligopoly- Cartel arrangement, price leadership and kinked

demand curve model, Strategic behavior and Game Theory-Meaning and

importance, Concept of pay-off matrix and Dominant strategy with its

applications; Nash equilibrium and prisoner‘s dilemma; Pricing techniques-

Multiple product pricing, Peak load pricing, Price discrimination.

Case study and Numerical Problems.

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Unit 5: Macroeconomic Issues and Policies 5 LHs

National income- Concept, Measurement and Difficulties, Business cycle

(Phases and Management of Cyclical, Concept of Inflation fluctuations.

Macroeconomic policy- Policy Goals and Policy Tools (Monetary Policy and

Fiscal Policy), Macroeconomic Indicators of Nepalese Economy.

Case study

Unit 6: Market Efficiency 5 LHs

Market Failure- Concept and Sources (Market power, Externalities, Public

Goods and Incomplete Information), Government Response to market failure.

Case study

Suggested Readings:

Mankiw N.G. (1998) principle of microeconomic, Orlando, The Dryelen Press

Salvatore, D. Managerial Economics. New York: McGraw Hill.

Petersen, H.C. and Lewis, W.C. Managerial Economics. New Delhi: Pearson

Education Ltd.

Pappas, J.L. and Hirschey, Fundamentals of Managerial Economics. New York: The

Dryden Press.

Mansfield, E. Managerial Economics. New York: W.W. Norton and Co. Publication

of Ministry of finance, CBS and NRB.

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STS 510: STATISTICS FOR MANAGERS

Credits: 3

Lecture Hours: 48

Course Objectives:

The purpose of this course is to impart knowledge and skills of statistical techniques

and their application to business problems and to make informed decisions. The

emphasis will be on the concepts and application rather than derivation or technical

details. Students will learn concept that enable them to understand topics such as

market research, corporate risk and quality control, which they are supposed to

encounter with later in their professional career.

Course Description:

This course deals with the statistical tools and techniques and their applications to

management .The topics covered are: summary of data, measures of central tendency,

dispersion, probability, theoretical distribution, estimation, hypothesis testing,

correlation and regression and time series analysis.

Course Details:

Unit 1: Probability 10 LHs

Basic Probability: Concept, Importance, Approaches, Additive and

Multiplicative Law

Conditional probability: Baye‘s Theorem

Probability Distribution: Binomial and Poisson (Discrete probability

distribution), Normal distribution (Continuous probability distribution)

Text and Reading: Chapter 4 and 5 (Statistics For management - Richard and

Levin)

Unit 2: Summary of Data 2 LHs

Measurement and Scale, Frequency Distribution, Bar diagrams and Pie chart,

Histogram, Stem leaf display

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Text and Reading:

Chapter 2 (Statistics for Management)

Note: (Discuss in brief about the use of bar diagrams, Pie chart, Trend Line,

Cross Tabulation and Scatter Diagrams in the report)

Unit 3: Descriptive Statistics 4 LHs

Measures of Location: Mean, Median, Mode (Concept Base Decision

making)

Measures of Dispersion: Mean Deviation, Standard Deviation, Variance,

Coefficient of Variation, Five Numbers Summary.

(Case will be asked from this chapter)

Text and Reading:

Chapter 3 (Statistics for Management)

Chapter 3 (Essential of Statistics for Business and Economics)

Unit 4: Correlation and Regression 5 LHs

Correlation: Simple, Rank, Partial and Multiple correlation, Coefficient of

Multiple Determination

Regression Analysis: Simple and Multiple Regression Equations, Standard

Error, Test of significance of correlation coefficient.

(Case will be asked from this chapter)

Text and Reading:

Chapter 12, 13 and 14 (Statistics for Management)

Chapter 14, 15 and 16 (Essential of Statistics for Business and Economics)

Unit 5: Inferential Statistics 23 LHs

Estimation: Theory, Criteria of Good Estimator, Point and Interval Estimate,

Estimation of Sample Size, Relationship among Errors Risk and Sample Size.

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Hypothesis: Meaning of Hypothesis, Types of Errors in Hypothesis, One-

tailed and Two-tailed Test.

Parametric Tests: Z-test (One Sample and Two Samples), t-Test (One

Sample, Two Independent Sample, Paired Sample), F-test (Variance Ratio

Test), ANOVA (One way and Two way)

Non-parametric test: Chi-square Test: Test for Goodness of Fit (Except

binomial and Poisson fit), Test for Independence of Attributes; Wilcoxon

Signed Rank Test; Mann Whitney U test; Krushkal Walli‘s H test.

(Case will be asked from this chapter)

Text and Reading:

Chapter 7, 8, 9 11 and 14 (Statistics for Management)

Chapter 18 (Essential of Statistics for Business and Economics)

Unit 6: Time Series Analysis 4 LHs

Moving Average, Seasonal Variation, Exponential Smoothing and Ordinary

Least Square Linear and quadratic trend.

Text and Reading:

Chapter 15 (Statistics for Management)

Chapter 17 (Essential of Statistics for Business and Economics)

Suggested Readings:

Anderson, D.R., Sweeney, D.J., & Williams, T.A., Essentials of Statistic for Business

and Economics, Thomson Learning.

Levin, R. I., & Rubin, D.S., Statistics for Management, Prentice Hall.

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MGT 508: MANAGEMENT PRINCIPLES AND ORGANIZATIONAL

BEHAVIOUR

Credits: 2

Lecture Hours: 32

Course Objectives:

The main objective of the study is to provide comprehensive knowledge on

management process and organizational behaviour to the MBA-Banking and Finance

students. Similarly, this course will equip students with the latest developments in the

field of management and organizational behaviour. Furthermore, it aims to

acquainting the students with management and organizational behaviour as a

discipline, basic function in organization, economy and society, as a process and as a

personal challenge, adventure and opportunity. Furthermore, this course aims

gaining a solid understanding of emerging concepts, trends and issues in management

and organizational behaviour in the workplace from an individual, group, and

organizational perspective and to obtain frameworks and tools to effectively analyze

and approach various organizational situations. Lastly, this course carries the ethical

issues designed to equip students with skills that are necessary for making ethical

decisions in one’s adult and professional life.

Course Description:

This course provides a comprehensive analysis of individual and group behavior in

organizations. Its purpose is to provide an understanding of how organizations can be

managed more effectively and at the same time enhance the quality of employees

work life. Topics include motivation, rewarding behavior, stress, individual and group

behavior, conflict, power and politics, leadership, job design, organizational structure,

decision-making, ethics and social responsibility, communication and organizational

change and development.

Learning Outcomes

At the completion of this course paper students should be able to:

describe the concept of management, its process and organization.

explain the management process and its link to organizational success.

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identify and analyze the environmental issues in making management process

more competitive.

assess the emerging trends and concepts in management as well as its

implication. Recognize the importance of corporate governance, ethics and

social responsibility. Identify management practices currently going on in

Nepali organizations.

recognize the concept of organizational behaviour at individual, group and

organizational level.

analyze and assess individual behavior in organizations, including diversity,

attitudes, job satisfaction, emotions, moods, personality, values, perception,

decision making, and motivational theories.

analyze and assess group behavior in organizations, including communication,

leadership, power and politics, conflict, and negotiations.

analyze and assess organizational level behaviour in organizations, including

culture, change and development.

The following issues or topics have been selected for the course. Each issue or topic

will be explored in relation to existing literature, its relevance and practices in the

Nepalese context.

Course Details:

Unit 1: Organization, Management and Management Process 2 LHs

Organization and management in theory, Changing perspectives on

organization, Managers vs. Entrepreneurs, Components of management

process, The new workplace, The organization‘s environment, Organization-

Environment Relationships, The environment and organizational

effectiveness.

Unit 2: Modern Concepts In Management And Organizational Structure 2 LHs

Micro and macro Management, Virtual and open source management,

Globally distributed management, Global and international management,

Business ecosystem-networked management, Green management, Smart

management, Sustainability management, Impression management,

Knowledge management, Business process outsourcing, Organization

Structure, Basic types of organizational structure, Virtual organization,

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Boundaryless organization, Leaner organization: Downsizing, The Flatter

Organization, The flat organization, The Flatarchies, The holocratic

Organization.

Unit 3: Corporate Governance, Ethics and Social Responsibility 2 LHs

Corporate Governance, Domains of Corporate governance, Effective corporate

rating system, Managerial ethics, Ethical decision making, Emerging ethical

issues in organizations, Social responsibility and organizations, Approaches to

social responsibility, Managing social responsibility, On-going practices of

management in Nepalese firms.

Unit 4: Introduction to Organizational Behaviour 1 LHs

Organizational Behaviour and the disciplines that contribute to the OB field,

Basic assumptions in OB, Developing an OB model, Emerging Issues in

Organizational Behaviour.

Unit 5: Diversity, Attitudes and Job satisfaction, Emotions and Moods 5 LHs

Diversity: demographic characteristics, levels of diversity and discrimination;

implementing diversity management strategies, Concept of attitude,

Components of attitude, Relationship between attitudes and behaviour, major

job attitudes, Measuring job satisfaction, Impact of satisfied and dissatisfied

employees on the workplace, Concept of emotions and moods, Relationship

between affect, Emotions and moods, Sources of emotions and moods,

Emotional labour, Emotional dissonance, Emotional intelligence, OB

applications of emotions and moods.

Unit 6: Personality and Values, Perception and Individual Decision-making,

Learning and Motivation 10 LHs

Personality and Determinants of personality, Myers-Briggs Type Indicator

personality framework with its strength and weakness, Other personality traits

relevant to OB, Values and its significance at the workplace, Terminal versus

Instrumental values, International values, Perception and Factors influencing

perception, Attribution theory, Common shortcuts in judging others, Link

between perception and decision making, Learning and Principles of learning,

Basic Learning Theories, Behaviour modification, Motivation and its process,

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Early theories of motivatn (Maslow‘s Need Hierarchy, Two-Factor Theory,

Theory X and Theory Y), Contemporary theories of motivation (self-

determination theory, reinforcement theory, equity theory/organizational

justice), Managerial implications.

Unit 7: Groups and Work Teams, Leadership, Power, Politics, Conflict, and

Negotiations, Culture, Change and Development 10 LHs

Group and Group Dynamics, Work Teams, Leadership and Approaches to

leadership, Authentic leadership, Charismatic leadership, Transformational

leadership, Distributive leadership, Managerial implications, Power and Bases

of power, Organizational politics, Causes and consequences of political

behaviour, Conflict and Conflict process, Conflict management strategies and

techniques, Bargaining strategies in negotiation, The negotiation process,

Third-party negotiations, Stress Management, Organizational culture and its

components, Functional and dysfunctional effects of organizational culture on

people and the organizations, Creating an ethical organizational culture,

Spirituality and organizational culture, Organizational Change and Forces for

change, Resistance to change, Overcoming resistance to change, Approaches

to managing organizational change, OD interventions.

Suggested Readings:

Griffin, R.W. (2013). Management: Principles and Applications. New Delhi:

Cengage Learning

Luthans, F. (2011).Organizational behavior: An evidence-based approach. New

York: McGraw-Hill Irwin.

Robbins,S.P., &Decenzo, A.D. (2009). Fundamentals of Management.Delhi: Pearson

Education

Robbins, S. P., Judge, T. A., &Vohra, N. (2013).Organizational Behavior. New

Delhi: Pearson education.

Shermerhorn, J. R., Hunt, J. G., & Osborn, R. (1996).Organizational behaviour. New

York: J. Wiley.

Mullins, L. J. (1991). Management and organizational behaviour. London: Pitman

publishing.

Schermerhorn, J. R. (1996). Management and organizational behaviour. New York:

Wiley.

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MGT 514: HUMAN RESOURCE MANAGEMENT

Credits: 2

Lecture Hours: 32

Course Objectives:

The course aims to achieve a good insight into the theoretical discussions about the

dynamics of human resource management and understand and critically discuss the

many ways in which HRM contributes to the success and survival of an organization.

Through the discussion on the various strategies that management needs to put in

place to ensure effectiveness in the acquisition, utilization, training and development,

maintain and reward employees students will able to Identify and contribute to better

decisions about the design of strategies for organizing cooperation and managing

conflicts in workplace labor management relations.

Course Description:

This course will equip students with framework for understanding and analyzing the

nature of Human Resource Management works and the determining factors of HR

management success. Major topics will include paradigm shifts in HR management

concepts and practices like role of Managers, Human Assets dimensions, and HR

research issues, Employee Empowerment, HR Interests, and Sustainability of HR,

HRM Practices context of Nepal

Learning Outcomes

Students who successfully complete this paper will be able to:

describe how the field of human resource management of business are

changing including the roles of managers in business and corporate houses;

explain the latest developments and contributions of human resource

management theory, research and practice;

demonstrate the value of emerging human resource management concepts and

the implications for contemporary HRM practices in Nepal;

assess the way knowledge of developed and shared within human resource

management issues

apply knowledge of HRM ideas to analyze human resources issues in Nepal

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Course Details:

Unit 1: Introduction to HRM 6 LHs

HRM and Functions of HRM, Changing environment of HRM, Using HRM

to Attain Competitive Advantages, The legal and Ethical Context of HRM,

The Model of Strategic Change and HRM, HRM Paradigms; Universalism vs.

Particularism, Trends in HRM and the Roles of HR Managers.

Unit 2: Acquisition of Human Capital 6 LHs

Human Resource Planning and its linkage to Corporate Planning, Factors

affecting HRP, Strategic Human Resource Planning (SHRP), Succession

Planning, Replacement Planning, Resourcing and Recruitment Methods,

Selection Procedure its Validity and Reliability, Socialization, Legal and

Social Constraints on Employment, The Trend and the Reality of HRP in

Nepalese Business Organization, Recruitment and Selection Practices in

Nepal.

Unit 3: Empowering and Development of Human Assets 4 LHs

Human Resource Development Concept, Training and Development Methods;

On the Job and Off the Job, Performance appraisal Process and Methods,

Training and development practices by Nepalese Business Organizations,

Career development, Career Planning and Talent Management.

Unit 4: Job Design and Analysis 5 LHs

Job Design, Methods of Job Design and analysis, Job Evaluation and Rewards,

Job Design and Job Analysis; Impact of job design on Motivation,

Productivity and QWL, The reality of Job design and Analysis in case of

Nepalese Business Organization.

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Unit 5: Sustaining Employee Interest 7 LHs

Compensation philosophy and compensation components, Methods, Trends

and determinants of Compensation, Trade Union and its types and forms,

Union influence in compensation programs, Industrial relations context,

Discipline and disciplinary procedures, Grievance procedures, Collective

bargaining, Issues and practices of labor management relation in Nepal.

Unit 6: International Human Resource Management (IHRM) and e-Human

Resource Management 4 LHs

Domestic Human Resource Management (DHRM) and International Human

Resource Management (IHRM), Reasons for Growing Interest in IHRM,

Managing International HR Activities, Nature of e-HRM, e-HR activities.

Suggested Readings:

Ashwathappa, K. Human Resource Management, Tata McGraw Hill, New Delhi

Aswathappa K., and Sadhna Dash. International Human Resource Management. Mc

Graw Hill, New Delhi.

Cynthia D. Fischer, Lyle F Schoenfeldt, James B Shaw. Human Resource

Management, Biztantra, New Delhi.

Gary Dessler. Human Resource Management. Pearson Education, New Delhi

Adhikari Dev Raj. Human Resource Management. Buddha Academic Enterprises

Pvt. Ltd.

Gupta. C.B. Human Resource Management. Sultan Chand & Sons, New Delhi

Luiz R. Gomez Mejia, David B. Balkin, Robert L. Cardy. Managing Human

Resource, PHI Learning, New Delhi.

Mamoria, C.B. and S.V. Gankar. Human Resource Management. Himalaya

Publishing House, Mumbai.

Rao, P.L., Comprehensive Human Resource Management. Excel Bo

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ACC 506: ACCOUNTING FOR MANAGERS

Credits: 3

Lecture Hours: 48

Course Objectives:

This course is designed to familiarize the students to the basic concept of cost and

management accounting. After the completion of this course students will able to

understand accounting information and to analyze different situation of the business.

Especially students will able to take decisions under different situation for better

planning and control. Similarly students will also be able to cope with the practical

accounting and budgetary system in different organizations.

Course Description:

This course will enable students to understand the concept, tools and techniques of

managerial accounting. It covers Fundamental of Accounting, Cost Management,

Cash Flow Analysis, Cost-volume-profit Analysis, Planning, Control & Performance

measurement and Accounting Practices in Nepalese Banking and Financial Sector.

Course Details:

Unit 1: Fundamentals of Accounting 4 LHs

Financial Accounting, Cost Accounting and Management Accounting.

Management Accounting versus Financial Accounting versus Cost

Accounting. Users of accounting information. Qualitative characteristics of

accounting information. Accounting principles, concepts and conventions.

International Financial Reporting Standards (IFRS). Nepal Financial

Reporting Standards (NFRS). Professional ethics and social responsibility.

Behavioral Accounting.

Unit 2: Cost Management 7 LHs

Cost concept and classification of cost. Segregation of semi-variable cost

using two point method and regression method. Measurement of : co-relation,

coefficient of determinant, standard error of estimate, standard error of

coefficient. Testing of significance. Reporting based on marginal and

absorption costing. Cost reconciliation statement.

26

Unit 3: Cash Flow Analysis 7 LHs

Cash and cash equivalent Assets. Classification of Cash flows. Preparation of

Cash Flow Statement under Direct and Indirect method. Ratios that Measures

Cash Flow Statement. Analysis and Interpretation of Cash flow statement.

Unit 4: Cost-Volume-Profit Analysis and Decision Making 12 LHs

CVP Analysis : Concept, Objectives, Assumptions, Limitations. Approaches

of CVP Analysis. CVP Analysis for single product and multiproduct. CVP

Under Condition of Uncertainty and Resource Constraints. Decision Making

and its Process. Decision regarding: Make or buy, Drop or continue, Accept or

Reject a Special Offer and Sale or Further Processing.

Unit 5: Planning, Controlling and Performance Measurement 12 LHs

Concept and objectives of budgeting. Preparation of master budget for

manufacturing and trading companies. Variance analysis for controlling the

performance: Material Variance ( Single Material) ,Labor Variance, Fixed

Overhead Variance and Variable Overhead Variance.

Unit 6: Accounting Practices in BFIS 6 LHs

Accounting Practices in Nepalese Organizations: Commercial Banks,

Development Banks, Finance Companies, Micro Finance Companies,

Cooperatives and Money Changer (Project work).

Suggested Readings:

Garrison, R. H., Noreen, E. H., & Brewer, P.C. (2009), Managerial Accounting, New

Delhi: Tata McGraw Hill Education Pvt. Ltd.

Hilton, R.W., Ramesh, G., & Madugula, J. (2008), Managerial Accounting, New

Delhi: Tata McGraw Hill Education Pvt. Ltd.

Maheshwori, S. N., Maheshwori, S. K. and Maheshwori, S. K. (2014), Financial

Accounting, Noida: Vikas Publishing House Pvt. Ltd.

27

MGT 513: OPERATIONS MANAGEMENT

Credits: 2

Lecture Hours: 32

Course Objectives:

The course is designed to make students familiar with different types of production,

material handling, maintenance management, inventory management, and quality

management. It will also enhance the knowledge of students regarding process and

resource management, appropriate tools and techniques needed for understanding the

operational situation. The course is also designed to make students to conceptualize

about the supply chain and logistics management.

Course Description:

For various types of operations that produce tangible goods of intangible services, the

course covers issues and topics in operations management such as process

measurement, bottleneck management, and service improvement. Process

synchronization and improvement; statistical quality control techniques and six sigma

approaches have been simplified under the course.

Learning Outcomes

After completion of the course, students will be able to:

Familiar about the operations management

Conceptualize about quality management

Provide the insight over the inventory management

Describe and apply maintenance management

Analyze supply chain management

Assess about the process and resource management

28

Course Details:

Unit 1: Introduction to Operations Management 6 LHs

Operations Systems , Product Design, Plant Location, Layout Planning,

Modern Practices of Production Management, Desired Output, Limited

Resources, Product Design Criteria, Work Study, Method Study, Work

Measurement, Various Techniques of Method Study and Work Measurement

,Operations Management in the Developing World.

Unit 2: Quality Management 7 LHs

The Concept of Quality and its Effect on Productivity, Quality Problems and

Causes Inspection V/S Quality: Seven Stages of Quality, ISO 9000 & ISO

14000, Quality Circles and Process Improvement teams, Seven Tools of

Quality Circles, Pareto Chart, Cause and Effect Diagram, Histogram, Scatter

Diagram, Control Charts, Check Sheets, Total Quality Management (TQM),

Strategic implications of TQM, Six Sigma.

Unit 3: Maintenance Management 4 LHs

Concepts and Functions of Maintenance, Different Types of Maintenance:

Breakdown, Scheduled, Preventive, Predictive, Condition Maintaining, Total

Productive Maintenance (TPM), Concept of OEE (Overall Equipment

Effectiveness) and Problem, Concept of ―5S‖ in House Keeping.

Unit 4: Inventory Management 5 LHs

Inventory Models, ABC Analysis, Just-in-Time (JIT) systems, Material

Requirements Planning (MRP),Lead-time Management, Pareto Principles,

Work In Process (WIP): Lean Manufacturing, Line Balancing, Statistical

process Control(SPC), Economic Order Quality(EOQ) and Breakeven

Analysis to Reduce Total Inventory Cost. Role of Information Technology in

Supply Chain.

29

Unit 5: Supply Chain Management 7 LHs

Basic Concept & Philosophy of Supply Chain Management, Various flows

(Cash, Value and Information), Supply Chain Strategies ,Purchasing and

Supplier Management , Measuring Supply Chain Performance, Customer

Relationship Management(CRM) Vs SCM, Benchmarking and

Implementation, Outsourcing- Value Addition in SCM.

Unit 6: Service Operations and Resource Management 3 LHs

New Service Development, Managing Service Experiences, Process Analysis

and its Applications, Yield management, Manufacturing and Service Process

Selection.

Note: It is desirable to include about 40% numerical question for final

examinations.

Suggested Readings:

Adam and Ebert, Production and Operations Management, New Delhi: Prentice-Hall

of India Private Limited.

Dahlagaard Jens. J, Kristensen K and Kanji G.K., Fundamentals of Total Quality

Management Process analysis and improvement, London and New York: Taylor and

Francis.

Raghuram G. (I.I.M.A.) –Logistics and Supply Chain Management (Macmillan)

Krajewski and Ritzman, Operations Management,Delhi: Pearson.

Chase,J acobs, Aquilano and Agrawal, Operations Management for Competitive

advantage,New Delhi: Tata McGraw-Hill Publishing Company Limited.

Chopra, Sunil and Meindl, Peter. Supply Chain Management: Strategy, Planning &

Operation. Pearson Education.

Donald J. Bowersox, David J. Closs and M. Bixby Cooper, Supply Chain

Management. The McGraw Hill Cos.

Donald J. Bowersox and David J. Closs. Logistical Management: The Integrated

Supply ChainProcess,Tata McGraw Hill, 17th Edition, 2008.

Heizer, J., Render, B., and Rajasekhar, J. (2008), Operations Management, Pearson

Education.

Fitzsimmons and Fitzsimmons, Service Management, Irwin/McGraw-Hill.

Metters, King-Metters, Pullman, Walton, Successful Service Operations Management,

Thomson.

30

MGT 517: MANAGEMENT INFORMATION SYSTEM

Credits: 2

Lecture Hours: 32

Course Objectives:

The course is designed to discuss about the impact of information system in business

process and in transforming business. It emphasizes on application of information to

business management. The aim of this course is to bring home a systematic knowledge

of the information system and its use in management process so that it can be

appreciated and understood for application in business and industry.

Course Description:

The course will provide business school students an in-depth look at how today‘s

business firms use information systems to achieve corporate objectives. Information

systems are one of the major tools available to business managers for achieving

operational excellence, improving decision making and achieving competitive

advantage. In this course, student will find the comprehensive overview of

information systems used by business-firm.

Learning Outcomes

Students who successfully complete this paper will be able to:

identify how information systems are transforming business and what is their

relationship with respect to globalization;

conceptualize why information system is essential for running and managing a

business;

appraise the systems that serve the different management groups in a business;

assess the impact of information systems on organization;

evaluate various majors of network security and infrastructures for managers

demonstrate database management system and their use in improving business

performance and decision making;

31

Course Details:

Unit 1: Information System in Global Business 4 LHs

Perspectives on Information System: Concepts, dimensions and business

perspective on information system; The Role of Information Systems in

Business; Contemporary approaches to information systems: technical

approach, behavioral approach.

Unit 2: Global E-business and Collaboration 8 LHs

Business Processes and Information Systems: business processes, how

information technology improves business processes; Types of information

system: systems for different management groups, system for linking the

enterprise; collaboration and social business: business benefits of collaboration

and social business, building a collaborative culture and business process,

tools and technologies for collaboration and social business.

Unit 3: Information System, Organizations and Strategy 7 LHs

Organizations and Information System, How information system impact

organizations and business firms: economic impacts, organizational and

behavioral impacts, implications for the design and understanding of

information system; Strategies formulated by information system, Key

applications of strategic information system, Network-based strategies, the

business value chain model.

Unit 4: Databases and Information Management 6 LHs

The database approach to data management, Database management system,

locating data in databases, creating the databases, SQL: basics DDL and DML

statements, DBMS components, Relational database model.

Unit 5: Securing Information System 7 LHs

System vulnerability and Abuse: Malicious Software , Hackers and Computer

Crime, Internal threats, Software vulnerability; Organizational Framework for

Security and Control: Information System Controls, Risk Assessment,

Security Policy, Disaster Recovery Planning and Business Continuity

Planning, The role of Auditing; Tools and Technologies for Safeguarding

Information Resources: Identity Management and Authentication, Firewalls,

Encryption and Public Key Infrastructure; Ensuring System Availability.

32

MIS Project

1. Project Work:

The students are required to undertake a project work. The project work can be

done individually or in group (at max 3 students). The project report should be

original, and the reproduction of others‘ work is strictly prohibited. The

weightage of the project work and final semester-end examination are

allocated as follows:

Title Weightage

Project Work 30

Semester-End Examination 70

Total 100

2. Objectives of the Project:

To explore the Management Information System (MIS) of the company under

study and get practical exposure to existing system including software and

hardware, networking, security system for information protection and system

for different departments and manager for decision making.

3. Justification:

Information systems are one of the major tools available to business managers

for achieving operational excellence and improved decision making. In this

regard, providing business students to explore the Management Information

System of business firms through the project work is an essential aspect. The

project will benefit students in the following ways:

Provide comprehensive overview of information systems used by

business firms,

Present an in-depth knowledge at how today‘s business firms use

information system to achieve corporate objectives, and

After the completion of the project, students will be able to participate

in, and even lead, management discussions of information systems for

their firms.

33

4. Project Format:

Layout of the preliminary pages:

The project report includes preliminary pages in the following order –

the declaration, supervisor's recommendation, acknowledgements,

table of contents, list of tables, list of figures and abbreviations.

Title Page

Declaration

Supervisor’s Recommendation

Acknowledgements

Table of Contents

List of Tables

Abbreviations

Format of the main body of project work report:

CHAPTER I: INTRODUCTION:

Background

Profile of organization

Review on MIS

Objective of the study

Significance

Methods

Limitations

Organization of the study.

CHAPTER II: DATA PRESENTATION, ANALYSIS AND

FINDINGS

Hardware and software

Networking

Security system

System for different departments and management groups

Findings

CHAPTER III: SUMMARY AND CONCLUSION

Summary

Conclusion

34

References

Appendices

5. Evaluation criteria for project work report

Evaluation Items Marks assigned

Elementary Section 02

Introduction Section 04

Data presentation and Analysis Section 08

Summary and Conclusion Section 02

Language 02

References 02

Viva-Voce 10

Total 30

* Viva-Voce will be conducted by external examiner appointed by HOD of Research

and Development/ MBA Director/ Campus Chief.

Suggested Readings:

Kenneth C. Laudon, Jane P. Laudon, Management Information System, Managing the

Digital Firm, Fourteenth edition, Pearson education.

James A O‘ Brian, George M Marakas, Ramesh Behl, Management Information

System, Tenth edition, McGraw Hill Education.

Turban, Rainer, Potter, Introduction to Information Technology, Second edition,

Wiley.

35

FIN 509: FINANCIAL MANAGEMENT

Credits: 3

Lecture Hours: 48

Course Objectives:

The basic purpose of this course is to develop analytical framework of financial

decision making among students and acquaint them with the tools, techniques and

processes of financial management in a corporate business setting.

Course Description:

This course covers the broad area of financial management – investment and

financing decisions. The course begins with an introduction to financial management

and its environment and acquaints students with skill of analyzing financial

statements for financial decision making. Then it moves to the valuation of securities

along with determination of cost of capital and required rate of return. Next it deals

with investment decision making and finally, covers long- and short-term financing

aspects of businesses.

Learning Outcomes

Students who successfully complete this paper will be able to:

understand the role of financial management, and the financial market

environment in which corporate financial decisions are made,

analyze financial statement for financial decision making,

value debt and equity securities,

estimate required rate of return and cost of capital,

estimate cash flows and appraise capital investment projects,

decide long-term financing mix and analyze their impact on firm‘s value, and

manage current assets and current liabilities of a corporate firm.

Course Contents

The course will cover the following broad area of financial management. Each topic

will be explored in relation to current literature, its relevance and practices in

Nepalese context.

36

Course Details:

Unit 1: Introduction 3 LHs

Role of Managerial Finance, Goal of The Firm, Managerial Finance Function,

Corporate Governance and Agency Theory, The Financial Market and

Environment: Financial Institutions and Markets, Regulation of Financial

Institutions and Markets in Nepal.

Unit 2: Financial Tools 9 LHs

Financial Statements and Ratio Analysis: The Stockholders‘ Report, Using

Financial Ratios, Liquidity, Activity, Debt Management, Profitability and

Market Ratios, Cash Flow and Financial Planning, Analyzing Firm‘s Cash

Flow, Financial Planning Process, Cash Budget, Preparing Pro-Forma Income

Statement and Balance Sheet.

Time Value of Money: The Role of Time Value in Finance, Single Amount,

Annuities, Mixed Streams, Compounding Interest More Frequently, Special

Application of Time Value.

Unit 3: Valuation of Securities 6 LHs

Interest Rates: Determinants of Interest Rate, Term Structure and Yield Curve,

Importance of Valuation of Securities, Bond Valuation, Stock Valuation:

Common Stock and Preferred Stock Valuation. Key Determinants of Bond

and Stock Valuation.

Unit 4: Risk and Required Rate of Return 6 LHs

Risk and Return Fundamentals, Risk and Return for Single Assets, Risk and

Return for Portfolio, The CAPM Model. The Cost of Capital: Overview of

Cost of Capital, Cost of Long Term Debt, Preferred Stock and Equity,

Weighted Average Cost of Capital, Marginal Cost of Capital.

Unit 5: Investment Appraisal 12 LHs

Identifying Relevant Cash Flow; Cash Flow Versus Accounting Income,

Timing of Cash Flow, Sunk Cost, Opportunity Cost and Externalities, Cash

Flow Estimations, Introduction to Risk in Capital Budgeting, Risk Adjusted

Discount Rate, Capital Budgeting Techniques: Payback Period, Net Present

Value, PI, Internal Rate of Return, MIRR, Crossover Rate, Comparing NPV

and IRR.

37

Unit 6: Long Term Financial Decision 6 LHs

Factors Affecting Capital Structure, Capital Structure Issues; Operating

Leverage and Business Risk, Financial Leverage and Financial Risk, Role of

Financial Manager in Managing Operating and Financial Risk, Optimal

Capital Structure and Firm's Value.

The Basics of Dividend Policy, Dividend Relevance and Irrelevance Theories,

Information Content or Signaling Hypothesis, Types of Dividend Policy,

Other Forms of Dividend.

Unit 7: Management of Current Assets 6 LHs

Working Capital Fundamentals and Firm's Profit, Financing Operating Current

Assets, Cash Conversion Cycle, Inventory Management: EOQ Model and Inventory

Control Methods, Account Receivables Management: Credit Policy, Monitoring

Receivables; Cash Management and Target Cash Balance, Cash Management

Techniques.

Suggested Readings:

Gitman, L.J., Zutter, C. J.,Principles of Managerial Finance, 13th Ed., Pearson

Ehrhardt, M.C., Brigham, E.F., Corporate Finance A Focused Approach, Cengage

Learning.

MBerk, J., DeMarzo, P., Corporate Finance: The Core, Global Edition, Pearson.

38

MGT 512: BUSINESS RESEARCH METHODS

Credits: 2

Lecture Hours: 32

Course Objectives:

The objective of this course is to develop the research skills of the students in

investigating into the business problems with a view to arriving at objective findings

and conclusions and interpreting the results of their investigation in the form of

systematic reports. The course will enable students to consider the complexity of the

research issues, explore the available literature and apply concepts to real business

scenarios.

Course Description:

This course will equip students with a framework for understanding and analyzing the

nature of Research/Business Research and its applicability in real life situation of

business world. The major areas covered under the study are Basics of Research,

Problem Identification, Research Designs, Measurement and scaling, Data Collection

procedures and analysis followed by writing a research Proposal and Research

Reports.

Learning Outcomes

Students who successfully complete this paper in MBA-BF will be able to:

explore the foundation of research.

enhance their' capacity to analyze the research problem.

describe about the different types of research designs and their application.

apply the concept of qualitative and quantitative approach of research with

measurement and scaling techniques.

conceptualize with different types of data collection and sampling methods

with their practical use.

use techniques of data collection and analysis for their research problem.

enhance their capabilities to understand the types and format of proposal,

research report and writing of research paper.

39

Course Details:

Unit 1: Basics of Research 3 LHs

Meaning; Objectives; Concept of theory and empiricism; deductive and

inductive theory; Characteristics of scientific research method; Concept;

Construct; Operational Definition; Variables; Research Process; Nature and

Scope of Business Research; Type of Business Research.

Unit 2: Problem Identification & Formulation 3 LHs

Identification of Research problem; Research objective; Research Question;

Literature Review: Phases and format; Theoretical Framework; Citation and

References'(APA); Hypothesis, Qualities of a good Hypothesis, Testing of

hypothesis; Type I and Type II errors.

Unit 3: Research Design 3 LHs

Concept of Research design; Features of a good research design; Classification

of Research design: Exploratory Research design, Descriptive Research

design, Comparative Research design, Interventional Research design.

Unit 4: Measurement and scaling 5 LHs

Concept of measurement; Sources of Management Problems; Validity and

Reliability; Levels of measurement: Nominal, Ordinal, Interval, Ratio;

Concept of Scale; Attitude Scaling Techniques: Rating Scales viz. Likert

Scales, Semantic Differential Scales, Constant Sum Scales, Graphic Rating

Scales, Ranking Scales, Paired Comparison & Forced Ranking.

Unit 5: Data Collection 8 LHs

Types of data: Primary and Secondary data; Sources of Data: Primary source

and secondary source; Methods of Primary Data Collection: Questionnaire,

Interview, Observation; Component of Questionnaire writing, Questionnaire

design, Pilot Testing, Questionnaire Administration; Sampling Concept:

Population, Element, Sampling frame, Sample, Sampling unit, Sampling,

Census; Characteristics of a good sample; Sampling vs Non-Sampling Error;

Methods of Sampling Design: Probability Sampling Design, Non-probability

Sampling Design; Determining sample size.

40

Unit 6: Data Analysis 8 LHs

Data Preparation: Editing, Coding, transformation of data from excel sheet to

SPSS, Basic data analysis: frequency, percentages, mean, standard deviation,

bar charts, pie charts), Reliability test, Test of Normality; Parametric test: t test

for single mean, t test for difference of two means (Independent sample t test),

One way ANOVA; Non Parametric test: Mann-Whitney U test, Chi square test

for Goodness of fit, Wilcoxon Sign Rank Test, Kruskal Wallis test, Friedman

test; Analysis of Variance: One way and two‐way Classifications; Factor

Analysis.

Unit 7: Report and Research Paper Writing 2 LHs

Proposal: Types and Contents; Types of research reports; Structure of

Research report; Report writing and Presentation; Layout of a Research Paper;

Paper writing and Presentation.

Suggested Readings:

Business Research Methods - Donald Cooper & Pamela Schindler, TMGH.

Foundation of Behaviour Research- Kerlinger, F.N., Surjeet Publication, New Delhi.

Business Research Methods- Zikmund,W.G., Thomson South-Western, New York:

The Dryden Press.

Chawla, D. & Sondhi, N. (2014). Research Methodology: Concepts and Cases. New

Delhi: Vikash Publishing House.

Pant, P. R (2016). Social Science Research Thesis Writing. Kathmandu: Buddha

Publication.

Research Methodology for Management with SPSS, Majhi & Khatua, HPH

Research Methodology - C.R.Kothari.

41

MGT 525: BUSINESS ENVIRONMENT AND STRATEGIC

MANAGEMENT

Credits: 3

Lecture Hours: 48

Course Objectives:

The purpose of this course is to familiarize the students with the business environment

condition prevailing in Nepal and globally and understand its impact to business (BF)

and the purpose of this course is to provide exposure of strategic options and their

rationalities and familiarize students with the prevailing strategic practices both in

global and domestic context. After the completion of this course, the students will be

capable of understanding dimensions of strategic decisions viz. innovation, rationality

and legitimacy, and thereby making strategic decisions to pursue competitive

advantage.

Course Description

This type of course is designed to provide the nature and scope of business

environment and identify the suitable organizational arrangement for competitive

advantage.

Learning Outcomes

Students who successfully complete this paper will be able to:

explain the nature and scope of business environment and identify the suitable

organizational arrangement for environment scanning.

familiarize the nature of economic environment and various factors that

constitute the total economic environment.

identify the importance of business active participation in culture.

explore the various opportunities and challenges of global business.

inculcate students with the foundation of strategic management that is

expected to be the cushion for understanding the strategic nature of decisions.

familiarize students with both generic business strategies and other grand

strategic options along with the supportive tools to make choice of most

suitable strategy amongst them.

execute procedures and techniques of strategy implementation.

familiarize students with proactive actions and control techniques.

42

BUSINESS ENVIRONMENT

Course Details:

Unit 1: Framework of Business Environment 3 LHs

Concept, Component and Significance of Business Environment; Business

and Environment Interface; Environmental Scanning: Process, Techniques

/Methods and Types, Emerging business environment in Nepal.

Unit 2: General Environment (PEST) Factors 13 LHs

Political and Legal Environment: Components of Political Environment;

Government and its Branches: Legislative System, Executive System,

Judiciary System and Other Constitutional Bodies; Business-Government

Relationship; Government Ownership of Nepalese Business; Main Provisions

of Some Current Acts of Nepal: Private Firm Registration Act, Partnership

Act, Company Act, Cooperative Act, Bank and Financial Institutions Act,

Industrial Enterprise Act, Income Tax Act, Value Added Tax Act, Patent

Design and Trade Mark Act, Foreign Investment and Technology Transfer

Act, Labour Act.

Economic Environment: Economic Dimensions of an Economy: Gross

Domestic Product, Sectoral Shares, Agricultural Output, Inflation, Money

Supply, Foreign Trade; Privatization and Liberalization; Special Economic

Zone (SEZ) and Export Promotion Zone (EPZ).

Socio-Cultural Environment: An Introduction to Socio-Cultural

Environment; Socio-Cultural Components: Attitude and Belief, Religion,

Language, Education, Family Structure and Social Organizations; Geo-Socio

Cultural and Demographic Environment in Nepal.

Technological Environment: Introduction; Business and Technology;

Human Factors and Technology; Technology Policy; and Technology

Transfer; R&D Environment; Information Technology Policy, 2009;

Electronic Transactions Act, 2007; Present Level of Technology Adopted by

the Nepalese Business.

43

Unit 3: Global Business Environment 6 LHs

Meaning and Levels of Globalization; Factors Influencing Globalization;

Effects of Globalization; MNCs Regional Economic Groupings of Nations;

Regional Trade Agreements in Asia: SAFTA, SAPTA, BIMSTEC, ADB;

Global Organizations: WTO, IMF, WB; Nepal's Membership of WTO:

Opportunities and Threats for the Nepalese Business.

STRATEGIC MANAGEMENT

Unit 4: Introduction 3 LHs

Framework of Strategic Management; Strategic Management Model;

Characteristics of Strategic Management; Formality in Strategic Management;

Mission; Vision; Strategic Intent; Strategic Objective vs. Financial Objective;

Long-Term Objectives; Significance of Strategic Management.

Unit 5: Strategy Formulation and Choice Techniques 14 LHs

The Strategic Position: The Macro-Environment:

PEST/PESTEL/PESTELG Framework, Building Scenarios. Industries and

Sectors: Competitive Forces – The Five Forces Framework, the Dynamics of

Industry Structure; Competitors and Markets: Strategic Groups, Market

Segments, Competitor Analysis, and Blue Oceans and Red Oceans;

Opportunities and Threats; Strategic Capabilities: Foundation of Strategic

Capabilities: Resources and Competences, Dynamic Capabilities, Threshold

and Distinctive Capabilities, ―VIRO‘ Strategic Capabilities as a Basis of

Competitive Advantage; Diagnosing Strategic Capabilities: Benchmarking,

the Value Chain and Value System, Activity Systems, SWOT, Managing

Strategic Capability. Strategic Purpose: Mission, Vision, Values and

Objectives, Owners and Managers, Stakeholder Expectations: Stakeholder

Groups, Stakeholder Mapping, Power. Social Responsibility and Ethics;

Culture and Strategy: What Is Culture and Why It Is Important; Strategic

Drift.

Porter's Generic Strategies: Cost Leadership, Differentiation, and Focus;

Grand Strategies (Concentration, Market Development, Product

Development, Innovation, Vertical and Horizontal Integration, Concentric and

44

Conglomerate Diversification, Joint Venture, Strategic Alliance,

Retrenchment/Turnaround, Divesture, Liquidation, Bankruptcy); Corporate

Level Analytical Tools: BCG and GE Nine-Cell Matrices; Business Level

Analytical Tools – Grand Strategy Selection Matrix and Grand Strategy

Cluster.

Unit 6: Strategic Implementation, and Evaluation and Control 9 LHs

Concept and Steps of Strategy Implementation; Business Policy;

Operationalization of Strategy: Annual Objectives; Functional Tactics

(Finance, Marketing, Human Resource, R&D, Production Operations, and

MIS); Installing Information System; Installing Reward System;

Institutionalization: Structure, Types, Matching Structure with Strategy;

Resource Allocation, and Budgeting and Role of Leadership in Strategy

Implementation.

The Process of Evaluating Strategies; A Strategy-Evaluation Framework:

Reviewing Bases of Strategy, Measuring Organizational Performance, Taking

Corrective Actions; Characteristics of an Effective Evaluation System;

Difference between Strategic and Operational Control; Strategic Control

Tools: Premise Control, Strategic Surveillance, Implementation Control, and

Special Alert Control.

Case Analysis: Almost in each unit.

Suggested Readings:

Pant Prem R. Business Environment in Nepal. Buddha Academic Publishers and

Distributors, Kathmandu.

Suresh BediBusiness Environment, Excel, New Delhi.

Aswathappa, K. BusinessEnvironment for Strategic Management, Himalaya

Publishing House, Bombay.

Cherunilam, F. Business Environment Himalaya Publishing House, Bombay.

45

Pearce, J. A., & Robinson, R. B., Strategic Management: Formulation,

Implementation, and Control. New Delhi: Tata McGraw Hill.

Porter, M. E., Competitive Strategy, New York: The Free Press.

Johnson, G., Whittington, R., Scholes, K., Angwin, D., &Regner, P. Exploring

Strategy: Text and Cases , New Delhi: Pearson.

Thomson, A., & Strickland, Strategic Management, New Delhi: Tata McGraw Hill.

David, F. R., Strategic Management: Concepts and Cases, New Delhi: Prentice Hall.

Hitt, M. A., Ireland, R. D., Hoskisson, R. E., &Manikutty, S., Strategic Management:

A South-Asian Perspective. New Delhi: Cengage Learning.

Dess, G. G., Lumpkin. G. T., & Eisner, A. B., Strategic Management: Text and

Cases. New Delhi: Tata McGraw Hill.

46

STS 516: ECONOMETRICS

Credits: 3

Lecture Hours: 48

General Objectives:

Objective of the course is to introduce the students to basics of theory and application

of econometric methods. This course introduces modeling techniques by using

econometric methods and their applications in management discipline. Emphasis is

on understanding and interpreting relations among economic variables which have a

direct impact on the way business is conducted in the world market. The course would

take hands-on approach to help students get comfortable with working with dataset.

The course would address the problems typically encountered in conducting empirical

econometric research, in evaluating results and testing hypotheses in making

predictions.

Course Details:

Unit 1: The Basic Regression Model 20 LHs

Meaning of Econometrics and Regression Analysis, Methodology of

Econometrics, The Estimated Regression Equation, A Simple Example of

Regression Analysis, Ordinary Least Squares: Estimating Single, Independent

Variable Models with OLS, Estimating Multivariate Regression Models with

OLS, Evaluating the Quality of a Regression Equation, Describing the Overall

Fit of the Estimated Model; Example of the Misuse of R2 ,

Learning to Use

Regression Analysis: Steps in Applied Regression Analysis; The Classical

Model: The Classical Assumptions, The Normal Distribution of the Error

Term, The Gauss-Markov Theorem and the Properties of OLS Estimators (

With Proof ); Normality: P-P Plot and Q-Q plot. Standard Econometric

Notation, Hypothesis Testing: The t-Test- Examples of t Tests, Limitations of

the t-Test, The F-Test of Overall Significance, Using E-Views, STATA or

Gretl wherever concerned for practical purpose.

(Case will be asked from this Chapter)

47

Text and Reading:

Part One -Single Equations Regression Models (Page no. 15-295), Basic

Econometrics (5th

edition)

Unit 2: Extensions of the Basic Regression Model 10 LHs

Semi log, Double log , Reciprocal, and Polynomial equations and Cobb

Douglas Production Function, Using Dummy Variables( More than two

categories and more than two dummies), Slope Dummy Variables Dummy

Dependent Variable Techniques: The Linear Probability Model, The Binomial

Logit Model, Other Dummy Dependent Variable Techniques; Simultaneous

Equations: Structural and Reduced Form Equations; Using EViews , STATA

or Gretl wherever concerned for Practical purpose.

Text and Reading:

Part One - Single Equations Regression Models (Page no.15-295), Basic

Econometrics (5th

edition)

Unit 3: Violations of the Classical Assumptions 9 LHs

Specification: Choosing the Independent Variables, Omitted Variables,

Irrelevant Variables, Specification Searches, Lagged Independent Variables;

Specification: Choosing a Functional Form, The Use and Interpretation of the

Constant Term, Alternative Functional Forms, Problems with Incorrect

Functional Forms; Multicollinearity: Perfect versus Imperfect

Multicollinearity, The Consequences of Multicollinearity, The Detection of

Multicollinearity, Remedies for Multicollinearity, Choosing the Proper

Remedy; Serial Correlation: Pure versus Impure Serial Correlation, The

Consequences of Serial Correlation, The Durbin–Watson d Test, Generalized

Least Squares; Heteroskedasticity: Pure versus Impure Heteroskedasticity, The

Consequences of Heteroskedasticity, Testing for Heteroskedasticity, Remedies

for Heteroskedasticity; Using EViews , STATA or Gretl wherever concerned

for Practical purpose.

48

Text and Reading:

Part Two –Relaxing the Assumption of the Classical Model (Page no. 339-

492), Basic Econometrics (5th

edition)

Unit 4: Time Series Models and Forecasting 9 LHs

Time-Series Models: Koyck Distributed Lag Models, Serial Correlation and

Koyck Distributed Lags, Granger Causality, Spurious Correlation and Non-

Stationarity; The Identification Problem; Forecasting: Meaning of

Forecasting, Complex Forecasting Problems, AR, MA and ARIMA Models;

Using EViews , STATA or Gretl wherever concerned for Practical purpose.

Text and Reading:

Part Three –Topics in Econometrics (Page no. 553-652), Basic Econometrics

(5th

edition)

Part Four –Simultaneous-Equation Models and Time Series Econometrics

(Page no. 709-820), Basic Econometrics (5th

edition)

Suggested Readings:

Studenmund, A. H., Using Econometrics: A Practical Guide, 6th

Edition. Addison

Wesley.

Maddala, G.S., Introduction to Econometrics, Third Edition. Singapore: John Wiley

& Sons.

Gujarati, D., Basic Econometrics, McGraw-Hill.

Pindyck, Robert S. and Daniel L. Rubinfeld. Econometric Models and Economic

Forecasts, New York: McGraw-Hill, Inc.

Dougherty, Christopher, Introduction to Econometrics. Oxford University Press.

Wooldridge, Jeffrey, Introductory Econometrics: A Modern Approach. South-

Western College Publishers.

49

MGT 511: MARKETING MANAGEMENT

Credits: 2

Lecture Hours: 32

Course Objectives:

The purpose of this course is to impart knowledge of marketing principles and service

marketing scopes to the students and familiarize them with the prevailing marketing

practices both in global and domestic context. After the completion of this course,

students will be capable of making marketing decisions and service marketing

practices in order to pursue competitive advantage in their business enterprises.

Course Description:

This course will equip students with framework for understanding and analyzing the

nature of marketing works and the determining factors of marketing management

success. Major topics will include paradigm shifts in marketing management concepts

and practices like role of marketers, service marketing dimensions, marketing

research issues, customer‘s expectation and their perceptions, marketing control

service marketing in context of Nepal

Course Details:

Unit 1: Introduction 6 LHs

Marketing management: Meaning, Philosophies and Process; Customer Value

and Satisfaction in Marketing; Value Delivery Network and Value Chain;

Marketing challenges. Meaning and Nature of Services, Classification of

Services and Marketing Implications, Service Marketing Triangle, Managing

Services Encounter, Marketing Planning for Services, Service and

Technology, Services Marketing process.

Unit 2: Market Analysis and Formulation of Marketing Strategy 6 LHs

Marketing Information System: Concept, Marketing Environment: Buyer

Behavior: Meaning, Process and Determinants; Competitor Analysis:

Meaning, Process and Strategies; Market Research for Identifying Customers;

Process of Market Segmentation; Identifying Market Segments and Selecting

50

Target Market – Consumer Market and Business Market; Developing and

Communicating the Positioning Strategies

Unit 3: Execution of Marketing Strategy 8 LHs

Concept and Components of Marketing Program; Product Development and

Brand Positioning; Repositioning the Product in the Market through Product

Life-Cycle Analysis; Selecting the Pricing Objective and Pricing Methods,

Strategies for Both; Service and Product Managing Price Changes for Market

Sustainability; Channel and Logistics Management Decisions; Selecting the

Distribution Strategies; Promotion and Integrated Market Communication;

Developing and Selecting the Promotional Strategies, Concept and Methods of

Marketing Control

Unit 4: Customer Expectation and Perception of Services 6 LHs

Concept: Expectation and Perception, Factors Influencing Customers

Expectation, Customer Perception, Approaches and Dimensions of Service

Quality, Service Gaps Models Research for understanding Customers

Expectation, Criteria for as effective Services Research Programs, Critical

issues of consumers in Nepalese Business.

Unit 5: Service Marketing in Nepal 6 LHs

Service Marketing Environment in Nepal; Nature, Growth, Problems and

Prospects of Service Marketing in Nepal, Major Service Sectors Industries in

Nepal; Banking Services; Corporate Branding, Branding of Banking and

Financial Institution, Segmentation and Integrated Marketing Communication

Practices in Nepalese Banking Service; Hospitality Services, Tourism

Services, Health and Insurance Services, Communication and Information

services, Construction and Transportation, Foreign Employment.

51

Suggested Readings:

Kotler, Keller, Koshy and Jha, Marketing Management: A South Asian Perspective,

Pearson.

Aaker, Strategic Market Management, John Wiley & Sons.

Cravens, and Piercy, Strategic Marketing, TATA Mc-Graw-Hill.

Kotler, Kartajaya, and Setiawan, Marketing 3.0, John Wiley & Sons.

Koirala, Marketing Management, MK Publication.

Ramaswamy, and Namakumari, Marketing Management, Vikas Publication.

Stanton, and Walker, Fundamentals of Marketing, McGraw-Hill International

Editions.

Zeithaml V. A. and Bitner M. J. .Services Marketing,. Tata McGraw Hill, New Delhi.

Lovelock C. H. & Wirtz, J. Service Marketing: People, Technology, Strategy. Pearson

Education.

Hoffman, K. D. J. & Bateson, E.G. Essential of Service Marketing: Concepts

Strategies and Cases, Thomson South Western.

Kurtz D. L. and Clow K. E. Services Marketing. Biztantra, New Delhi.

52

BNK 515: COMMERCIAL BANKING OPERATION AND

REGULATIONS

Credits: 3

Lecture Hours: 48

Course Objectives:

This course provides an overview of operating and overall theoretical knowledge

required to manage commercial banking activities efficiently and to equip the

students with necessary foundation to prepare financial statement, mitigate different

types of ever changing risks, manage liquidity and reserve, deposit mobilization,

assets and liabilities, capital requirement, and other functions. The course also aims

to familiarize students with the banking regulations for commercial banks in Nepal

and recent issues on banking system of Nepal.

Course Description:

This course provides an overview of the functioning and managing banking activities,

risk management for changing interest rates, liquidity and reserve management,

managing and pricing deposits, managing assets and liabilities, the management of

capital, lending policies and procedures, other functions of commercial banks, project

work and seminar on real estate, mergers and acquisition, E-banking and consumers

loans provided by commercial banks in Nepal.

Course Details:

Unit 1: Overview of banking system of Nepal 4 LHs

Introduction: Origin and necessity of bank and financial institutions, an

overview of Nepalese financial system, role of banks in financial system,

Commercial banks in Nepal: Evolution, development, Functions and current

situations, Role of commercial banks for socio-economic development.

Unit 2: Deposit Mobilization and its pricing 8 LHs

Meaning and nature of bank's deposit, Types of deposits offered by banks;

Current, saving, Fixed, call, FCY account, Demand/notice, KYC, Interest

rates offered on different types of deposits, Deposit marketing and customer

care services, Pricing of deposit-related product: pricing deposits at cost plus

53

profit margin, using marginal cost to set interest rates on deposits, and pricing

based on the total customer relationship and choosing a depository, and NRB

directives regarding the deposit collection, mobilization and pricing.

Unit 3: Lending of Funds and its management 8 LHs

Types of loans, Funded and Non-funded loans, Lending Principles, Lending

policies and procedures, Interest determination of loans, Security against

loans, Loan classification and provisioning, Non- performing loan and

performing loan, NRB Directives: Provisions relating to interest rates,

Provisions relating to classifications of loans and loan loss, Provisions relating

to single borrower and Limitation of sectorial credit and facilities, Provisions

relating to lending to deprived sector.

Unit 4: Agency Functions of Bank 4 LHs

Different types of agency functions; Utility payment services, Advisory

services, E- banking, Mobile banking, DMAT Account, ASWA/C-ASWA

service, Stock Brokering, Bancassurance, QR code, Card services.

Unit 5: Management of Capital and Risks 8 LHs

Management of capital: Capital and risk, Risk mitigation, types of capital in

use, calculation of capital requirement: Capital adequacy ratio, Basel I, Basel

II and Basel III, planning to meet capital needs and NRB directives relating to

Mitigation of risk and practice of Nepalese commercial Banks

Unit 6: International Banking 6 LHs

International Banking Relationship, Types of international banking

organizations, Corresponding banking, International saving and Investment,

Exchange rates; Cross rates, Quotation rates, Factors affecting exchange rates,

International remittances, International settlements; Meaning and settlement

through Nostro, Vostro, Loro and Mirror account, SWIFT/TT/RTG.

54

Unit 7: Bank Regulatory Environment 5 LHs

Regulatory framework, Reason for bank regulations, Power and functions of

bank regulator, Role of NRB in regulation, Regulatory provisions: on BAFIA,

SEBON and Office of Company Registrar

Unit 8: Current Issues in Nepalese Banking Industry 5 LHs

Project work and seminar on Financial Literacy, E-Banking, Merger and

Acquisition, Consumer Loan and Financial Statements of commercial banks,

KYC, AML/CFT.

Suggested Readings:

Peter, S. R. Commercial Bank management.McGraw-Hill.

Mehrotra, S.J. New Dimensions of Bank Management. New Delhi: Skylark

Publications.

Padmalatha, S. & Paul. J- Management of Banking and Financial Services,Dorling

Kindersley.

Thapa, R.B and Rawal, D.Principles and practices of Nepalese Banking, Kathmandu:

Buddha Academic Enterprises.

Harper, A.Commercial Bank Management.London: International Student.

Padmalatha S. & Justin P. Management of Banking and Financial Services. India:

Dorling Kindersley.

NRB Unified Directives

NRB Act 2002

BAFIA, 2073

Asset (Money) Laundering Prevention Rule, 2016

Merger and Acquisition Bylaw, 2073

55

FIN 519: FINANCIAL DECISION ANALYSIS

Credits: 2

Lecture Hours: 32

Course Objectives:

This course aims to provide an understanding of the concept and principles of

financing structure and thus develop analytical skill particularly in taking

appropriate financing decision.

Course Description

The course covers specific area of financial decision making. The course begins with

an introduction to capital structure theory and acquaints students with skills of

analyzing different types of short term, intermediate term and long term sources of

funds for making financial decision. Then it deals with various aspects of financial

restructuring and its governance aspects.

Learning Outcomes

Students who successfully complete this paper will be able to:

familiarize with the conceptual framework of capital structure theory

compare cost and benefits of different sources of short term financing

examine term loan as a source of financing and analyze leasing versus

purchasing of assets for making decision

evaluate long term debt, preferred stock and common stock as sources of long

term financing

explain different aspects of financial restructuring and its governance aspects

Course Details:

Unit 1: Capital Structure Theory 5 LHs

Introduction; Approaches to Capital Structure: NI Approach, NOI Approach,

and Traditional Approach; Modigliani and Miller Position: Arbitrage

Argument; Corporate and Personal Taxes; Effect of Bankruptcy Costs and

Agency Costs; Pecking Order Theory; Empirical Evidence Concerning Capital

Structure.

56

Unit 2: Short Term Financing Decision 7 LHs

Sources of Short Term Financing, Unsecured Sources -Trade Credit, Accruals,

Commercial Paper. Secured Sources- Bank Loans, Inventory Financing,

Account Receivable Financing; Costs of Sources of Short-Term Financing.

Unit 3: Intermediate Financing 7 LHs

Term Loans: Characteristics of Bank Term Loan, Terms of Loan, Loan

Installment and Repayment Schedule; Lease Financing: Significance, Types of

Leasing (Operating, Financial, Sales and Lease Back, Direct), Determination

of Lease Rent By Lesser; Leasing Versus Owning Decision (Present Value

Cost and IRR Method of Analysis)

Unit 4: Long Term Financing 7 LHs

Rights of Holders of Common Stock; Nature of Voting Rights: Cumulative

and Non-Cumulative Voting; Preemptive Right; Use of Rights in Financing:

Value of Rights and Effect on Shareholders Wealth. Characteristics and

Instruments of Long Term Debt, Decision on The Use of Long Term Debt,

Characteristics and Use of Preferred Stock Financing. Refunding Decision of

Debt and Preferred Stock under Present Value Approach

Unit 5: Financial Restructuring and Its Governance Aspects 6 LHs

Reduction of Capital; Re-Organisation of Share Capital; Buy-Back of Shares:

Concept and Necessity; Procedure for Buy-Back of Shares by Listed and

Unlisted Companies; Domestic & International Trends Relating to

Governance Practices Pertaining to Corporate Restructuring; Shareholder

Democracy in Restructuring Process; Regulatory Compliances including

Compliances Under the Companies Act; Case Studies on Governance Failures

and Restructuring; Practical Cases in Corporate Restructuring, Approaches to

Prevent Liquidation and Insolvency

Suggested Readings:

Van Horne, James C., Financial Management and Policy: PHI, New Delhi.

Weston, J. Fred and Thomas E. Copeland, Managerial Finance: The Dryden Press,

NY .

Copeland, T.E., Weston, J.F., Shastri, K., & Katz, J.M., Financial Theory and

Corporate.

Policy: Pearson, New Delhi.

57

BNK 520: CREDIT ANALYSIS AND ADVANCES

Credits: 2

Lecture Hours: 32

Course Objectives:

The objectives of the course is to enhance the knowledge of students on Credit

Analysis and Advances of banking business. The course is also enriching the students’

understanding about various banking products on retail and corporate front, mater

the risk and credit Processes followed by a banker. The course also gives emphasis on

enhancing critical analytical skills needed to a banker while considering the

qualitative and quantitative aspects of a client’s proposal. The course also focuses

light on Understanding of documentation and monitoring processes.

Course Description

This course is designed to discuss the general concept of Credit Analysis and

Advances for the business students. It will equip students with a framework of

understanding and analyzing the data by using various banking techniques regarding

Credit and Advance analysis. Major topics include the Principles of Lending, Types

of Borrowers, and Types of credit facilities, Credit appraisal and Credit Rating. Letter

of Credit, Risk management in Banks, Documentations, Retail Loans and Financial

statement analysis.

Learning Outcomes

Students who successfully complete this paper will be able to:

Develop key concepts of credit analysis from a micro perspective

Apply credit analysis to assess borrowers in real cases

Conceptualize various products and processes in retail & corporate lending

organizations with team structure and key terms

Perform ratio analysis and cash flow analysis

Take decision on how, whom and what to lend, controlled, monitored and

managed manner

Identify and work-out problem loans

Evaluate auto loans and Housing loans

58

Course Details:

Unit 1: Principles of Lending and Borrowings 4 LHs

Principles of Lending: Safety, Liquidity, Profitability, Purpose of Loan, Risk

Diversification, Viability, Social Necessity, Security, Cash flow generation,

Loan tenure, and Productive sector (regulated lending). Model Credit Policy:

Importance, Constituent of credit policy, Credit Product Papers, Manuals and

Credit Process, Borrower types: Individual/Institutional (proprietorship/

partnership/pvt.ltd./public limited co./government organizations/cooperatives)

Unit 2: Credit Delivery and Risk Aspects of Lending 4 LHs

Lending process for delivery of Bank Credit, Pricing of Loan, Funded Credit

Facility: Cash Credit, Working Capital Loan, Demand Loan, Overdraft Loan,

Non Funded Credit Facility: Letter of Credit, Bank Guarantee, Bills Finance,

Exemptions, Unsecured Loan, Secured Loans, Security concept. Credit Risk;

Characteristics of Credit Risk, Indicators of Credit Risk, Mitigating Credit

Risk; International Guidelines and Standards for Credit Risk Management.

Unit 3: Consumer Lending 4 LHs

Consumer Lending; Concept; Secured & Unsecured Consumer Loan Types of

Consumer Lending; Non Installment Loans, Installment Closed End Credit

such as; Home Loan; Auto Loan, Hire Purchase loans, Revolving Open End

Credit such as; Credit Cards, Personal Loan, Loan Against Shares, Education

loans, Professional Loans, Gold Loans, Mortgage Loans NRB Regulation;

Loan to Value Ratio, Debt servicing capacity, Loan Limit, Restriction for

Loan, Finance Charges, Consumer Protection

Unit 4: Credit Appraisal 4 LHs

Credit Appraisal: Validation of Proposal; Dimensions of Credit Appraisals,

Six ―C‖ s, Structuring of Loan Documents, Credit Scoring & Risk Rating,

Credit Worthiness of Borrower, Purpose of Loan, Source of Repayment,

Collateral Details, Credit Risk Analysis (Business/ Industry/ Repayment/ Cash

low/ security/ Succession/ Management/ Financial) and Credit Information;

Role and Importance of Credit Information.

59

Unit 5: Non Funded Credit Facilities and Loan Commitments 4 LHs

Bank Guarantees; Meaning and Types, Letter of Credit; Meaning and Types of

Letter of Credit, Differences between Bank Guarantee and Letter of Credit,

Establishing Letter of Credit, Parties involved in Letter of Credit, Basic

Documents and Risk Assessment in Letter of Credit, Loan Commitments;

Meaning and potential credit risk in Loan Commitments.

Unit 6: Risk Management in Banks 4 LHs

Asset and Liability Management - Concept of ALM – Objectives – Functions

– Process – Measurement; Non-Performing Assets; Concept of NPAs,

Provisioning norms for NPAs Causes for NPA & Recovery Management;

Legal ways of recovering bank loans (Auction/DRT case filing) Non Banking

Assets; Concept of NBA, Management of NBA

Unit 7: Credit Administration, Monitoring & Review 4 LHs

Bank Documentation, Types of Securities, Methods of Creating Charge over

Securities, Differences between various methods of Creating Charge over

Securities, Loan Covenants, Credit File, Credit Evaluation Memo, Sanction &

Disbursement, Follow up mechanism for monitoring, Indicator of Problem

Loans, Handling Problem Loans

Unit 8: Financial Statement Analysis 4 LHs

Financial Analysis; Ratio Analysis – Liquidity Ratio, Solvency Ratio,

Profitability Ratio, Efficiency Ratio, Performance Analysis, Elements of Cash

Flow Statement, Non-Financial Analysis; Qualitative Aspects of the Clients,

Analysis of Personal Income. (This unit designed for Project and Case

Analysis).

60

Suggested Readings:

Uppal RK, Rimpi Kaur, Banking Sector Reforms in India, New Century Publications,

New Delhi.

Agarwal OP, Banking and Insurance, Himalaya Publishing House, Mumbai

VijayaragavanIyengar, Introductioin to Banking, Excel Books, New Delhi

The Indian Institute of Bankers, Modern Banking, Mumbai.

Indian Institute of Banking and Finance, Risk Management, Mumbai.

Morton Glantz, Johnathan Mun, (Latest Eds.), The Banker's Handbook on Credit Risk

Implementing Basel II, Academic Press is an imprint of Elsevier.

Garrison, R.H., Noreen, E.H., & Brewer, P.C. (Latest Eds.), Managerial Accounting,

New Delhi: Tata McGraw Hill Education Pvt. Ltd.

Hilton, R.W., Ramesh, G., &Madugula, J. (Latest Eds.), Managerial Accounting, New

Delhi: Tata McGraw Hill Education Pvt. Ltd.

BAFIA (Nepal Rastra Bank)

All NRB Directives (‗Unified Directives to BFIs‘ by NRB)

Various Publications of NRB and Ministry of Finance Nepal.

Commercial Bank Act Nepal

Nepal Rastra Bank Act

Chandra Kant Sapkota and Dirgha Bahadur Rawal ―Commercial Bank Management‖,

Buddha Publication.

61

FIN 521: INVESTMENT MANAGEMENT AND SECURITY

ANALYSIS

Credits: 2

Lecture Hours: 32

Course Objectives:

The basic purpose of this course is to provide the students with knowledge of

principles and theories of investment and develop analytical skills for appraisal of

securities and management of investible funds from the viewpoint of investors

particularly in the context of Nepal.

Course Description

This course provides a broad overview of investment environment, trading of

securities in financial market, mutual fund and other investment companies, capital

allocation and optional risky portfolios, equilibrium in capital market and market

efficiency, fixed income securities analysis, common stock analysis, economic and

industry analysis and active portfolio management. This course also provides an

overview of these topics in the context of Nepal.

Learning Outcomes

Students who successfully complete this paper will be able to:

Understand investment opportunities and investment environment.

familiarize with financial market and trading system of securities.

construct risky and complete portfolios given the risk aversion of investors

use CAPM and APT approach in making investment decision

analyze security in terms of risk and return.

evaluate portfolio performance.

Course Details:

Unit 1: The Investment Environment 1 LHs

Types of investment; investment process; financial markets and the economy;

ongoing trends of investment; and investment environment in Nepal.

62

Unit 2: Financial Market and Trading of Securities 4 LHs

Market and Instruments: the money market and capital market; equities

securities; stock and bond market indexes. Trading of Securities: issue of

securities; trading of securities; markets for trading securities—trading on

exchanges, trading on the OTC market; trading costs; buying on margin; short

sales; and regulation of securities markets, Dematerialization of securities.

Unit 3: Mutual Funds and Other Investment Companies 3 LHs

Investment companies; types of investment companies; mutual funds; costs of

investing in mutual funds; mutual fund investment performance; and mutual

funds in Nepal.

Unit 4: Risk Aversion, Capital Allocation and Risky Portfolios 8 LHs

Risk Aversion: risk and risk aversion; capital allocation across risky and risk-

free portfolios; portfolios of one risky and a risk-free asset; the capital market

line; portfolio of two risky assets. Optimal Risky Portfolios: diversification

and portfolio risk; the Markowitz portfolio selection model.

Unit 5: Equilibrium in Capital Market 8 LHs

The Capital Asset Pricing Model: introduction; security market line;

practicality of the CAPM; extensions of the CAPM. Arbitrage Pricing Theory:

arbitrage opportunities and profits; the APT and well-diversified portfolios; a

multifactor APT.

Unit 6: Securities Analysis 6 LHs

Fixed-income Securities Analysis: bond characteristics; bond pricing and

default risk; bond yields; bond prices over time; the term structure of interest

rates: the term structure under certainty; measuring the term structure; interest

rate uncertainty and forward rates. Common Stock Analysis: Technical

analysis and Fundamental analysis

Unit 7: Portfolio Performance Evaluation 2 LHs

Measuring investment returns; the conventional theory of performance

evaluation; performance measurement with changing portfolio composition;

market timing; evaluating performance evaluation; and performance

attribution procedures.

63

Suggested Readings:

Bodie, Z., Kane, A., Alan, M. J. & Mohanty, P. (2015). Investments (10th ed). New

Delhi: Tata McGraw Hill.

Reilly, F. K. & Keith, C.B. (2012). Investment analysis and portfolio management

(10th ed). New Delhi: Cengage Learning (India) Private Limited.

Sharpe, W.F., Gordon, J.A., & Jeffery, V.B. (1998). Investments (6 th ed). New

Delhi: Prentice Hall of India Ltd.

64

MGT 522: PROJECT APPRAISAL AND VALUATION

Credits: 2

Lecture Hours: 32

Course Objectives:

The main objective of the study is to provide comprehensive knowledge on project

appraisal and valuation to the MBA-Banking and Finance students. Similarly, this

course will equip students with the underlying concepts in the field of project

appraisal and valuation. Furthermore, this course will have all the elements that

would go into reviewing a potential investment opportunity. It is not a detailed course

in one category, such as financial accounting, but it ties economic appraisal and

valuation analysis together. Moreover, this course takes the path to evaluating the

opportunity to its fullest after one has gone through basics of strategy, finance, and

accounting. It is aimed at students who expect at some point in their careers to

evaluate the performance, prospects, and value of a business.

Course Description:

This module has been designed around the core areas of project planning, investment

appraisal, social cost-benefit analysis, project risk, distributional effects, valuation and

impact assessment. It covers both private and public sector investment and appraisal

techniques. The techniques of project financial and economic analysis and impact

assessment are becoming increasingly important as methods for choosing between

projects where resources, both financial and human, are limited. The use of

recognized assessment techniques for project proposals has become mandatory as part

of the selection and justification process for projects funded by the international

financial institutions. However, while financial and economic issues relating to

resource allocation for projects, development programs and policies are all important,

policy makers and development banks and institutions are increasingly concerned

with other issues – including the environmental, social, gender, health, poverty and

welfare impacts of projects. This course covers project appraisal and evaluation,

investment appraisal techniques, social-cost benefit analysis, valuation basics, risk

and uncertainty analysis in project appraisal, distributional issues and social cost,

65

environmental and social impact assessment (ESIA) and project monitoring and

appraisal system in Nepal.

Learning Outcomes

At the completion of this course students should be able to:

define and describe project appraisal and evaluation, an activity often referred

to as project assessment.

recognize the investment appraisal techniques that are used in the private

sector.

explain and analyze the theoretical and applied background to social cost-

benefit analysis.

discuss the basics of valuation and recognize its application in Nepalese

context.

analyze the impact of risk and uncertainty within the context of project

appraisal.

analyze some of the important issues associated with the impacts of projects

on the distribution of income in country and how SCBA may be used to take

these distributional issues into account.

assess the environmental and social impact assessment (ESIA) of project.

assess the practice of project appraisal in Nepalese context and in international

development agencies.

Course Details:

Unit 1: Project Appraisal and Evaluation 2 LHs

Concept, the Project Cycle, Process of Project Planning, Project Planning

Techniques, Project Quality Factors and Basic Needs, the Measurement of

Project Performance.

Unit 2: Investment Appraisal Techniques 2 LHs

Introduction, Cash Flow Estimation, Private Sector Appraisal Techniques

66

Unit 3: Social Cost-Benefit Analysis 4 LHs

Social Cost-Benefit Analysis Introduction, Basic Steps in Social Cost-Benefit

Analysis, The Social Discount Rate, Applications of Cost-Benefit Analysis,

Standings, Value Assumptions, and Legitimacy of cost-benefit analysis, The

strengths and Limitations of Social Cost-Benefit Analysis, SCBA(Social Cost

Benefit Analysis) in Developing Countries (Focus on Nepalese Context).

Unit 4: Valuation Basics 7 LHs

Approaches to Valuation, Valuation Using Multiples, Real Options & Brand

Valuation, and Identifying frequently made errors in Valuation, Sector

Analysis and Case Studies, Application of valuation in Nepalese Context.

Unit 5: Risk and Uncertainty Analysis in Project Appraisal 4 LHs

Introduction, Risk and Uncertainty, Sources and measurement of risk,

Techniques for Risk Analysis, Risk and Large Projects, and Project Selection

under Risk (Ways of Incorporating Risk in Project Selection).

Unit 6: Distributional Issues and Social Cost-Benefit Analysis 4 LHs

Introduction, Measurement of Income Distribution, Theoretical Basis for

Welfare or Distributional Weighting, Regional Weights, Multi-Criteria

Analysis.

Unit 7: Environmental and Social Impact Assessment (ESIA) 4 LHs

Introduction, Laying the Foundation, Impact Assessment, Reporting and

Decision Making, ESIA tools, Emerging forms of assessment, Impact

Mitigation/Enhancement and Monitoring.

Unit 8: Project Monitoring and Appraisal System in Nepal 5 LHs

Concept of Project Monitoring, Methods of Monitoring, Appraisal System

Adopted by Nepalese Government, Financial Institutions and NGOs, Project

Valuation and Appraisal Methods Adopted by UN System Selected in

Banking and Financial Institutions, Reviewing of UNIDO, OECD, ADB,

World Bank Project Evaluation Techniques.

67

Suggested Readings:

Boardman, A. E. (2014). Cost-benefit analysis: Concepts and practice. Boston:

Pearson.

Broardman, A. E., Greenburg, D. H., Vinning, A. R., & Weimer, D. L. (2001.). Cost-

Benefit Analysis (2nd ed.). Boston: Pearson Education, Prentice Hall.

Chand, p. (2017). Projects Planning Analysis, Selection, Financing, Implementation

and Review. Chennai: MC Grew Hills Education Pvt. Ltd.

Glasson, J., Therivel, R., & Chadwick, A. (2005). Introduction to environmental

impact assessment. London: Routledge.

Maylor, H. (2010). Project management. Harlow, England: Financial Times Prentice

Hall.

Damodaran, A. (2006). Damodaran on valuation: Security analysis for investment and

corporate finance. Hoboken, NJ: John Wiley & Sons.

Damodaran, A. (2002). Investment valuation: Tools and techniques for determining

the value of any asset. New York: Wiley.

Curry, S and Weiss, J. (2002) Project Analysis in Developing Countries. The

Macmillan Press Ltd.

Agrawal, G.R. (2003). Project Management in Nepal. Kathmandu: M.K. Publishers

and Distributors.

68

FIN 527: INTERNATIONAL FINANCE

Credits: 2

Lecture Hours: 32

Course Objectives:

The main purpose of this course is to provide an understanding of the framework for

corporate financial decision-making in a multinational context. The course also

intends to introduce various risks and management strategies associated with

international finance.

Course Description:

Companies operating globally are different from their domestic counterparts due to

their expose to foreign exchange fluctuations, political risks, etc. To address these

realities the course begins with a background of globalization, multinational

enterprises and international monetary system. Then the course moves onto the

balance of payment, foreign exchange markets, the determination of exchange rates

along with international parity conditions. It further addresses foreign exchange

exposures – transaction, operating and translation. Next, the core of financial

management – capital budgeting, capital structure including the cost of capital and

working capital management in the context of MNEs are covered. Finally, the course

covers foreign direct investment and associated risk.

Learning Outcomes

Students who successfully complete this paper will be able to:

Familiarize with the conceptual knowledge of globalization and multinational

enterprises.

Familiarize with BOP, its effect on export and import, devaluation and

overvaluation of money.

Role of foreign exchange in emerging markets economy.

Compare cost and benefits of different sources of short term financing.

Examine term loan as a source of financing and analyze leasing versus

purchasing of assets for making decision.

69

Course Details:

Unit 1: Globalization and MNES 5 LHs

Globalization: Reasons Behind Globalization, Discontent and Support,

Achievements, and Common Issues of Globalization, Market Failure: Causes

and Source. Globalization and International Business; rise of Multinational

Corporations; Process of Overseas Expansion, Globalization Process; and

Difference Between Multinational and Domestic Financial Management.

Unit 2: Balance of Payments 6 LHs

Balance of Payments – Features, Importance, Derivation BOP, Components of

BOP, Factor causing to shift BOP curve, monetary approach to BOP, fiscal

approach to BOP, surplus and deficit BOP and BOP comparison with IS, LM

curve, international trade flows; and factors affecting international trade flows

and its effect on BOP. Foreign Trade Policy in Nepal.

Unit 3: Foreign Exchange Market and Foreign Exchange Rate Determination

7 LHs

Foreign Exchange Market: geographical extent of foreign exchange market;

functions of foreign exchange market; market participants; transactions in

interbank market. International Parity Conditions: prices and exchange rates;

interest rates and exchange rates. Foreign Exchange Rate Determination:

function, types, determination exchange rate, correction BOP at flexible and

fixed exchange rate system, disequilibrium the balance of payment approach;

asset market approach to forecasting; disequilibrium; exchange rates in

emerging markets; and forecasting in practice.

Unit 4: International Monetary System 2 LHs

History of international monetary system; contemporary currency regime;

fixed versus flexible exchange rates; emerging markets and regime choices;

and monetary unification and the Euro.

70

Unit 5: Global Cost of Capital and Capital Structure 5 LHs

Global Cost of Capital: weighted average cost of capital; demand for foreign

securities; cost of capital for MNCs compared to domestic firms. Financial

Structure: optimal financial structure; optimal financial structure and the

MNE; and financial structure of foreign subsidiary.

Unit 6: Multinational Capital Budgeting 4 LHs

Complexities of budgeting for a foreign project; project vs. parent valuation

Unit 7: FDI and Risk Analysis 3 LHs

Reasons and benefits of FDI; country risk; political risk factors; financial risk

factors, types and techniques for the assessment of country risk.

Suggested Readings:

Eiteman, D. K. Arthur I. S. Moffett, M. H. & Pandey, A. (2007). Multinational

Business Finance. Delhi; Dorling Kindersley (India) Pvt. Ltd.

Madura, Jeff. (2015). International Financial Management (12th ed). Singapore:

Thomson South-Western.

Shapiro, A. C. (2015). Multinational Financial Management (9th ed). New Delhi:

Wiley India Pvt. Ltd.

71

FIN 518: FINANCIAL RISK MANAGEMENT

Credits: 2

Lecture Hours: 32

Course Objectives:

The basic purpose of this course is to develop a foundational concept of financial risk

management and to acquaint the students with the tools, techniques, and processes of

identifying, measuring and controlling risk exposure in an effective manner.

Course Description:

The course offers an introduction into the evolving and expanding practice of

financial risk management, including knowledge of the process of identifying,

quantifying and managing various risk exposures. The course analyzes and discusses

the various sources of risk, particularly market, credit, and operational risks.

Learning Outcomes

Students who successfully complete this paper will be able to:

familiarize with the conceptual framework of financial risk management

measure and hedge market risk

measure and control operational risk

measure and manage credit risk

The following topics have been selected for the course. Each topic will be explored in

relation to existing literature, its relevance and practices in the Nepalese context.

Course Details:

Unit 1: Introduction to Financial Risk Management 6 LHs

Risk Versus Return for Investors and Companies. Approaches to Managing

Risk. Scope of Risk. Measuring Risk. Calculating Risk. Financial Risk and

Actuarial Risk. Types of Financial Risk. Managing Financial Risk. Use of

Derivative Securities to Manage Risk; Option, Future Swap.

72

Unit 2: Market Risk Management 10 LHs

Sources of Market Risk; Currency Risk, Fixed Income Risk and

Immunization, Equity Risk and Commodity Risk. Measurement of Market

Risk. Value at Risk (VAR) Measure; Concept, Parameters and Elements of

VAR.

Unit 3: Operational Risk Management 8 LHs

Importance of Operational Risk. Identifying Operational Risk. Assessing

Operational Risk - Comparison of Approaches and Actuarial Models.

Managing Operational Risk - Capital Allocation and Insurance, Mitigating

Operational Risk and Conceptual Issues.

Unit 4: Credit Risk Management 8 LHs

Settlement Risk. Overview of Credit Risk. Measuring Credit Risk. Credit Risk

Diversification. Credit Derivatives and Structured Products. Managing Credit

Risk - Measuring the Distribution of Credit Losses, Expected Credit Loss and

Credit VAR.

Suggested Readings:

Philippe Jorion. Financial Risk Manager Handbook.

John Hull. Options, Futures and Other Derivatives.

Peter Christofersen. Elements of Financial Risk Management.

Jonathan Mun. Modeling Risk: Applying Monte Carlo Simulation, Real options

Analysis, Forecasting and Optimization Techniques.

John Marthinsen. Rish Takers: Uses and Abuses of Financial Derivatives.

Allen, Steve L. Financial Risk Management: A Practitioner's Guide to Managing

Market and Credit Risk

73

ACC 526: CORPORATE TAXATION

Credits: 2

Lecture Hours: 32

Course Objectives:

This course is designed to explore the students with basic principles underlying the

provisions of tax laws & tax planning in Nepal and expose them to real life situations

involving taxation and to equip them with techniques for taking tax sensitive

decisions. It also aims to introduce students about practical aspects of tax planning as

an important managerial decision making process.

Course Description:

This course includes conceptual foundation of taxation, and income tax provisions in

Nepal. Capital Gain taxation, Value Added Taxation, Custom and Excise Duty and

tax planning scope in Nepal provided by Income Tax Act 2058

Learning Outcomes

Students who successfully complete this paper will be able to:

explain the conceptual foundation of taxation including concept, objectives,

types, Canons of taxation, historical development of tax laws in Nepal and

definition of related terms.

conceptualize the tax laws provision relating to business and investment in

Nepal and computation of tax liability of profession, sole trading business,

partnership business and corporate business houses.

exercise capital gain taxation and its computation in Nepal under Income Tax

Act-2058.

explain and understand Value Added Tax (VAT) system and its computation

under Value Added Tax Act 2052.

explore custom duty and excise duty practices in Nepal.

evaluate tax planning and its scope in Nepal provided by Income Tax Act-

2058.

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Course Details:

Unit 1: Introduction to Taxation 1 LHs

Sources of Government financing in Nepal- Concept, objectives, types, canons

of taxation-Historical development of tax law in Nepal-Definition of key

terms.

Unit 2: Income Tax in Nepal 12 LHs

Source of income as per Income Tax Act 2058-Tax exempted organization,

Tax exempted income, Deduction not allowed-Tax rates, tax exemption, and

tax rebate-Withholding payments (tax deduction at source)-Assessable income

form investment-Amounts included in business income-Amounts excluded

from business income-Allowable deductions and reductions-Tax credit

(Medical tax credit and foreign tax credit)-Computation of assessable income,

taxable income and tax liability of business-Set off and carry forward of losses

including inter-source and inter-head adjustments.

Unit 3: Provision of Capital Gain Tax in Nepal 4 LHs

Meaning of Capital Gains and Capital Losses-Types of Assets-Provisions

relating to Capital Gains Tax in Income Tax Act 2058-Disposal of asset and

liability-Computation of capital gain tax.

Unit 4: Value Added Tax in Nepal 4 LHs

Meaning of value added tax-Types of value added tax-Origin and evolution of

Value Added Tax in Nepal-Provision relation to value added tax in Nepal-

Computation of Value Added Tax-Collection, realization and refund of VAT-

Penalties, Actions and Appeal-VAT mechanism in Nepal.

Unit 5: Introduction of Customs Duty and Excise Duty 4 LHs

Concept of customs duty and excise duty-Provision of customs duty and

excise duty in Nepal.

Unit 6: Scope of Tax Planning in Nepal 7 LHs

Concept of tax evasion and avoidance-Concept and objectives of tax planning-

Tax planning and tax management for natural person and artificial person-Tax

planning for capital structure, location, lease vs. purchase and timing of

activity.

75

Project Work

Students shall be provided with different Income Tax Forms for practical work

Suggested Readings:

Nepal Government. Budget Speech and Finance Act (Recent)

Nepal Government. Double Taxation Avoidance Treaties with various countries.

Nepal Government. Income Tax Act 2058 with amendments. Kathmandu: Ministry

of Law, Justice and Constituent Assembly.

Nepal Government. Income Tax Rules 2059 with amendments. Kathmandu: Ministry

of Law, Justice and Constituent Assembly.

Nepal Government. Value Added Tax Act 2052 with amendments. Kathmandu:

Ministry of Law, Justice and Constituent Assembly.

Nepal Government. Value Added Tax Rules 2053 with amendments. Kathmandu:

Ministry of Law, Justice and Constituent Assembly.

Dhakal, K.D., Pandey, B. and Bhattarai, R. Corporate Taxation with Tax Planning

(Updated Edition). Kathmandu: M.K. Publishers and Distributors Pvt. Ltd.

Kandel P.R. Tax Laws and Tax Planning in Nepal (Updated Edition). Kathmandu:

Buddha Academic Publishers.

K.C., J.B. Tax Laws and Tax Planning: Theory and Practice (Updated Edition).

Kathmandu: Khanal Books Prakashan.

Bhattarai, I. and Koirala, G.P. Tax Laws and Tax Planning (Updated Edition).

Kathmandu: Asmita Publication.

Khadka, R. Vat in Nepal. (New Edition), New Delhi: UBS Publisher Distributors Ltd.

Lekhi, R.K. Public Finance. (New Edition), New Delhi: Kalyani Pbulishers

Prasad, B. Direct Taxes: Laws and Practice (Updated Edition). New Delhi: Vishwa

Prakashan.

Singhaniya, V.K. Direct Taxes: Laws and Practice (Updated Edition). New Delhi:

Taxman Publication Pvt. Ltd.

76

Elective Courses

FIN 601: ADVANCED CORPORATE FINANCE

Credits: 2

Lecture Hours: 32

Course Objectives:

The course develops theoretical framework for understanding and analyzing major

financial problems of modern firm in the market environment. The course covers

basic models of corporate capital valuation, including pricing models for primary

financial assets, real assets valuation and investment projects analysis, capital

structure, derivative assets and contingent claims on assets. The course is focused on

developing skills in analyzing corporate behavior in capital markets and the

relationship of agent and principal in raising funds, allocating capital, distributing

returns. It provides necessary knowledge in evaluating different management

decisions and their influence on corporate performance and value. The course

requires the knowledge in micro and macroeconomics, accounting and banking

Course Description:

This course develops theoretical framework for understanding and analyzing major

financial problems of modern company in market environment. The goal of the course

is to help you understand optimal capital structure choices for different corporate.

Learning Outcomes

The students who successfully complete this paper will be able to:

recognize the theoretical concept of corporate finance and its compatibility

with real corporate world

demonstrate and apply different investing techniques

perform the technical aspects of option trading and contingent claims

assess the dimensions of mergers and takeovers

identify the components of capital structure using modeling techniques

77

Course Details:

Unit 1: The Foundation for Proper Financial Analysis of the Firm 6 LHs

The Life-Cycle of The Corporation at the Capital Market: Funds Raising,

Investing and Benchmarks, Returning Money to Investors at the Capital

Market, The Consumption Choice and The First Fisher Separation Theorem,

Net Present Value Rule of Corporate Analysis, The Sources of NPV, The

Differences between Financial Model of Corporate Analysis and Accounting

Model, The Concept of Cost and Profits, The Concept of Money

Measurement, The Concept of Return and Corporate Performance

Measurement. The Value Creation and Building Blocks in Corporate Finance,

The Mission of Chief Financial Officer of The Corporation (CFO), The Role

of Corporate Finance in Building Financial Model of The Firm. Corporate

Finance and Proper Financial Analysis of any Firm in Market Economy.

Unit 2: Investing Policies and Value Creation 8 LHs

What is Risk-Free Investment Project? Competitive Advantage and Value

Creation, Incremental Cash Flows and Incremental Value, Net Present Value

Rule, Its Assumptions and Value Additivity Rule, The Sources for Positive

Net Present Values, Internal Rate of Return (IRR) and Financial Approach to

Corporate Return Analysis, The Limitations of IRR, Modified IRR;

Discounted Payback (DPB), Profitability Index (PI), Economic Value Added

(EVA) and Economic Profit Generated by the Project, EVA Versus NPV,

Capital Budgeting in Inflationary Environment: Nominal Approach, Real

Terms Approach; Use of Sensitivity Analysis in Capital Budgeting, Real

Options: Investment Timing Options, Growth Options, Abandonment Options,

Flexibility Options.

Unit 3: Option Pricing Models and Application in Corporate Finance 6 LHs

The Features of Option, Put-Call Parity, Binomial Pricing Models and the

Principle of Tracking Portfolio, Risk-Neutral Option Valuation. Black-Scholes

Model and its Assumptions, The Methods of Stock Volatility Estimation,

Option Values and Dividends on Underlying Stock, Empirical Biases in

Black-Scholes Formula, Application of Option Pricing in Corporate Finance.

78

Unit 4: Mergers & Takeovers 6 LHs

Types of Mergers and Takeovers, The Principles of Valuation of Mergers and

Takeovers; Stand - Alone Value of The Target and of the Buyer, Efficiency

Theories of M&A Activities: Differential Efficiency, Inefficient Management,

Synergy Effects Theory, The Sources and Types of Synergy, Agency Theories

of M&A, Signaling Theories of M&A, Hostile Takeovers and Free - Rider

Problem, Management Defenses, Prospect and Challenges of Merger and

Acquisition in Banks and Financial Institutions in Nepal.

Unit 5: Financial Modeling for Optimal Capital Structure 6 LHs

Adjusted Present Value (APV): Base Case Value, Side Effects Values;

Multiple Discount Rates, Advantages of APV for Capital Budgeting and

Valuation, The Criteria for Optimal Capital Structure, The Rating (WACC)

Approach to Optimal Capital Structure Analysis, The Assumptions, The

Method, The Limitations. The Adjusted Present Value Approach (APV) to

Optimal Capital Structure Analysis: Assumptions, Benefits, and Implications;

The Target Capital Structure, The Operating Income Approach to Planning for

Optimal Capital Structure, Factors Affecting the Target Capital Structure,

Macroeconomic, Microeconomic and Firm‘s Specific Factors, The Decision-

Making on Capital Structure.

Suggested Readings:

Grinblatt, Titman. Financial Markets and Corporate Strategy. McGraw Hill.

G&T Brealey, Myers. Principles of Corporate Finance.6th Edition.

B&MBrealey/ Myers. Principles of Corporate Finance.6th Edition. Study guide.

Frantz, P. & R. Payne (1999). Study Guide. Corporate Finance. First Edition.

79

FIN 602: FINANCIAL INSTITUTIONS AND SERVICES

Credits: 2

Lecture Hours: 32

Course Objectives:

The course aims at familiarizing the students with the role of financial institutions and

markets. It also helps the applications of principles from finance and economics that

explore the connection between financial markets, financial institutions and the

economy. On the financial markets side, we will learn the term structure of interest

rates, Money Market, Regulation and Structure of financial Markets. On the

institutions side, we will learn Commercial Banks, Insurance companies, Mutual

Funds, the Central Bank and their role of in the economy.

Course Description:

This course develops theoretical framework for understanding and analyzing major

financial market and its system. The course enables to know about the various aspects

of financial markets and institutions.

Learning Outcomes

The student who successfully completes this paper will be able to:

explore the financial system

explain the workings of central bank

perform the operations of money market instruments.

describe and perform working principles commercial bank.

recognize the aspects of finance company, mutual fund and insurance

company

Course Details:

Unit 1: Overview of Financial System 3 LHs

The nature and role of Financial System, Structure of Financial Market,

Financial Intermediaries and Financial Innovations, Types of financial

markets, Financial assets, securities trade in financial markets, lending and

borrowing in the financial system, Importance of financial institutions in

financial market, Development of Capital Market, Internationalization of

financial market.

80

Unit 2: Central Bank 5 LHs

Central Bank: Function, Role and Objectives, Monetary tools of Central Bank,

Role of NRB in money market. Monetary Policy, Transmission mechanism of

Monetary Policy, The International Monetary System, Exchange Rate

Policies, The International Monetary Fund, International Institutions. Major

issues in Financial sector of Nepal.

Unit 3: Money Market and Instruments 8 LHs

Characteristics of the Money Markets, Treasury Bills: Features, Types and

Importance, Interest rate pattern in Money Market, Re- Purchase Agreements

(RPs), Commercial Paper, Bankers Acceptance, Certificate of Deposit,

Eurodollars, Dealer Loan, Primary Dealer, Money Market Derivatives.

Unit 4: Commercial Banking 8 LHs

General principles of bank management, Liquidity and Risk management in

commercial banks, Portfolio Characteristics of Commercial Banks, Process of

Loan Management, Loan types, Equity Capital, Revenue and Expenses,

Analyzing Financial Statements of Commercial Banks, Analysis of Variation,

Leverage, Profitability and Risk, Capital Adequacy and BASEL ACCORD

Managing Liquidity and Risk in Commercial Banks, Consolidation and

Information Technology, Measurement of commercial bank Performance,

Status of commercial banks in Nepal.

Unit 5: Finance Company and Mutual Fund 6 LHs

Finance Companies: Types, Operations, Risk in Finance companies,

Investment Companies: Net Assets Value, Types of Investment Companies,

Mutual Fund Growth and Structure, Mutual Fund Objectives, Fee and

Expenses of Mutual Funds, Mutual Funds in Nepal.

Unit 6: Insurance Companies 2 LHs

Concept, Risk and Return of Insurance Companies, Types of Insurance

Companies: Life and Non- Life, Regulation and supervision of insurance

companies by Nepal Insurance Board. Issues and Challenges of Insurance

Companies.

81

Suggested Readings:

Mishkin, F.S. Financial Markets, Institutions and Money, New York: Harper Collins

College Publishers.

Fabozzi, F.J., Modigliani, F., Jones. F.J. and Ferel. M.J., Foundation of Financial

Markets and Institutions., New Delhi: Pearson Education.

Pathak, B. Indian Financial System: Market, Institution and Services, Pearson

Education India.

Madura, J. Financial Markets and Institutions, New Jersey: Thomas South Western

Shrestha, S. Portfolio Behaviour of Commercial Banks in Nepal, Kathmandu:

Mandala Book Point.

82

FIN 603: SEMINAR IN FINANCE

Credits: 2

Lecture Hours: 32

Class Description for Seminar in Finance

Course objective and method

The finance seminar mainly focuses on current topics in finance. The seminar is

conducted in the form of lectures, discussions, case analyses, work on semester

projects, and student presentations. The aim of the seminar is to familiarize students

with current topics in finance as well as introducing methodologies applicable in

research and academic writing.

Seminar Contents

Discussion topics in the finance seminar will be announced at the beginning of the

seminar. Prior discussion topics have included focus on quantitative and qualitative

research and its application, modern trends in financial research and many more as per

the seminar requirements. Seminar topics will be selected in consultation with

students.

Teaching Materials

Required readings and teaching material will be announced at the beginning of the

semester.

Grading

Final grading will be based on seminar attendance, participation in discussions and a

final seminar paper. The contents, the research and methodology applied in seminar

papers will be taken into account in the final grade. Further details regarding the

grading will be provided at the beginning of the course.

Remarks

All seminar discussions will be conducted in English. Students must complete a

seminar paper or research report as announced by the instructor at the beginning of

the semester. This paper (or report) will be evaluated based on the contents, the

organization of the paper, the research and methodology applied. Students are

expected to be familiar with the APA style of academic writing and must have a

working knowledge of computers and will have to use the Internet for their research

work.

83

FIN 604: MICROFINANCE

Credits: 2

Lecture Hours: 32

Course objectives:

The basic purpose of this course is to develop a conceptual framework of

Microfinance and prepare students to take on roles as policy analysts and technical

advisors on Microfinance. Students will have an appreciation of the broader context

that underpins the Microfinance field, understand how and why the formal credit

market fails to meet the financial needs of the poor and be equipped with a framework

to objectively examine and assess these issues.

Course Description:

The course will provide in-depth knowledge about Microfinance and its trend. It also

provides analytical frameworks that underpin the design of Microfinance tools and

identify areas where challenges and controversies exist. It documents creative and

innovative approaches that are currently being mainstreamed and provide insights on

how the Microfinance frontier could be extended.

Learning outcomes

The students who successfully complete this paper will be able to:

apply thorough knowledge of the concept of Microfinance and how

Microfinance institutions work amongst poorer

recognize how and why the formal credit market fails to meet the financial

needs of the poor

identify about the challenges and controversies facing Microfinance

institutions

argue about legal framework and prudential regulation with specific reference

to the Nepalese context

analyze the financial performance of the MFIs and help to learn emerging

issues

explain the procedure to establish Microfinance in Nepalese context

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Course Details:

Unit 1: Perspective of Microfinance 5 LHs

Concept, Definition, Principles and Evolution of Microfinance, Impact

assessment and Social assessment of MFIs, Criticisms of Microfinance,

Linkages between main stream financial services & Micro-finance, Current

situation and Future perspective of Microfinance sectors in Nepal.

Unit 2: Approaches to Microfinance 3 LHs

Practices and Some innovative and Creative Microfinance models (Special

reference to Nepal), Strengths and Weaknesses of the various Microfinance

approaches.

Unit 3: The Challenge of Financing Agriculture 3 LHs

Context of Agricultural Finance, Challenge of Agricultural Credit,

Agricultural Value Chain Finance, Agricultural Insurance, Role of MFIs in

Agricultural development in Nepal.

Unit 4: Designing and monitoring financial product and services 6 LHs

Lending Products- Meaning and Types, Loan Collateral, Collateral

Substitutes, Alternative Forms of Collateral, Loan Pricing, Risk on lending.

Savings Products- Meaning and Types, Pricing saving products. Micro

insurance, Remittance, Other services- Credit cards and Smart cards.

Unit 5: Current Trends towards Commercialization and Financial Regulation

3 LHs

Commercialization and Financial Regulation, Corporate Governance and

Consequences of Transformation.

Unit 6: Performance analysis 6 LHs

Analyzing financial statements, financial performance ratios, Rating MFIs,

Benchmarking, Social Performance Measurement and Impact performance

evaluation of Microfinance institutions in the framework of World Council of

Credit Unions (WOCCU) Model, Consultative Group to Assist the Poor

(CGAP) Model.

Unit 7: Innovation and Changes in Microfinance sector 4 LHs

Governance of Microfinance, Branchless and Mobile banking, Innovations in

MF, Emerging issues in Nepalese Microfinance sectors.

Unit 8: Procedure to establish Microfinance in Nepal 2 LHs

Project work

85

Suggested Readings:

Christen R.P (2007). Banking Services for the Poor: Managing for Financial

Success, Accion International, Washington DC.

Joanna Ledgerwood. 2001. Microfinance Handbook: An Institutional and Financial

Perspective: Sustainable Banking with Poor. Washington D.C: The World Bank.

Joanna Ledgerwood. 2014. The New Microfinance Handbook: A Financial Market

system Perspective: Washington D.C: The World Bank.

Various publications and articles published from Nepal Rastra Bank.

86

FIN 605: ENTREPRENEURIAL FINANCE AND VENTURE

CAPITAL

Credits: 2

Lecture Hours: 32

Course Objectives:

This course is designed to explore the students to the basic concept of entrepreneurial

finance and venture capital. After completion of the course students will be able to

understand the principles and process of entrepreneurial development will be able to

create new ventures and management and growth of new ventures.

Course Description:

This type course is designed to provide intermediate-level understanding of how to

create, finance, manage and evaluate a startup as well as investing in other companies

as a venture capitalist.

Learning Outcomes

Students who successfully complete this paper will be able to:

identify and apply the elements of entrepreneurship and to entrepreneurial

processes;

recognize the importance of entrepreneurship and identify the profile of

entrepreneurs and their role in economic growth;

use the entrepreneurial mind-set and behave responsibly and ethically in their

roles as entrepreneurs;

creatively analyze the business environment, opportunity recognition, and the

business idea-generation process;

know how to acquire necessary resources and organizational matters of new

venture creation process;

write a business plan that creates and starts a new venture;

apply a strategy for growth and manage the implications of growth;

use capital budgeting that includes cost of capital, leverage and dividend

policy in a financial management context;

87

Course Details:

Unit 1: Overview of the Entrepreneurial Process 3 LHs

Concepts of entrepreneur and entrepreneurship, Importance and

Characteristics of entrepreneurs, Types of entrepreneurs, Benefits and

potential risks of entrepreneurship, Myths of Entrepreneurship, Factors

affecting growth of Entrepreneurship in Nepal, Role of Entrepreneurship in

Economic Development.

Unit 2: Developing the Business Idea 5 LHs

Feasibility analysis of Industry, Market , Product or service and Finance ;

Business plan – Meaning, Significance, contents, formulation and presentation

of Business Plan, Common errors in Business Plan formulation .

Unit 3: Organizing and Financing a New Venture 4 LHs

Challenges of new venture start-ups, Pit falls in selecting new ventures,

Critical factors for new venture development, Why new ventures fail, Sources

of Finance for New Venture.

Unit 4: Planning for the future 5 LHs

Managing cash flow. Securities Law Considerations When Obtaining Venture

Financing.

Unit 5: Creating and recognizing venture value 8 LHs

Valuing early stage venture, Basic venture capital valuation Method, adjusting

VCSCs for multiple round, and adjusting VCSC for Incentive ownership.

Unit 6: Structuring financing for the growing venture 3 LHs

Professional Venture Capital, Professional venture investing cycle Other

Financing Alternatives, Security Structures.

Unit 7: Exit and turnaround strategies 4 LHs

Harvesting the Business Venture Investment, Financially Troubled Ventures:

Turnaround Opportunities. Real Estate Investment Ventures, The application

of entrepreneurial finance to entities that focus on creating social value.

88

Suggested Readings:

Entrepreneurial Finance (Fifth Edition) by Leach and Melicher. Cengage Learning.

Holt , D.H. Entrepreneurship and new Venture creation , Prentice Hall.

Paul Gompers and Josh Lerner, The Venture Capital Cycle, Cambridge, MIT

Press, 1999.

Josh Lerner, Venture Capital and Private Equity: A Casebook, New York, John

Wiley, 2000.

89

FIN 606: SEMINAR IN RURAL FINANCE

Credits: 2

Lecture Hours: 32

Class Description for Seminar in Finance

Course objective and method

The rural finance seminar mainly focuses on current topics in rural finance. The

seminar is conducted in the form of lectures, discussions, case analyses, work on

semester projects, and student presentations. The aim of the seminar is to familiarize

students with current topics in rural finance as well as introducing methodologies

applicable in research and academic writing.

Seminar Contents

Discussion topics in the rural finance seminar will be announced at the beginning of

the seminar. Prior discussion topics have included focus on quantitative and

qualitative research and its application, modern trends in rural finance research and

many more as per the seminar requirements. Seminar topics will be selected in

consultation with students.

Teaching Materials

Required readings and teaching material will be announced at the beginning of the

semester.

Grading

Final grading will be based on seminar attendance, participation in discussions and a

final seminar paper. The contents, the research and methodology applied in seminar

papers will be taken into account in the final grade. Further details regarding the

grading will be provided at the beginning of the course.

Remarks

All seminar discussions will be conducted in English. Students must complete a

seminar paper or research report as announced by the instructor at the beginning of

the semester. This paper (or report) will be evaluated based on the contents, the

organization of the paper, the research and methodology applied. Students are

expected to be familiar with the APA style of academic writing and must have a

working knowledge of computers and will have to use the Internet for their research

work.

90

BNK 607: CENTRAL BANKING AND MONETARY

MANAGEMENT

Credits: 2

Lecture Hours: 32

Course Objectives:

This course provides an overview of the functioning of Central Bank and monetary

policy along with NRB directives, regulatory framework, Offence and punishment

provisions, capital adequacy framework, economic situation and progress matrix of

monetary policy of Nepal, IMF, World Bank and forex management.

Course Description

This course will include the major roles and functions of Central bank, regulations

and directives to commercial banks and financial institutions. The course also

provides current monetary policy, global and domestic economic outlooks, monetary

management including liquidity and foreign exchange management.

Learning Outcomes

Students who successfully complete this course will be able to:

execute the functioning and regularity aspects of Central Bank;

take precaution about punishment for violation of regulations so that

institution and the employees will be more trustworthy;

familiarize with the minimum capital needed for different classes of banks and

finance companies so that they will be financially strong to get competitive

advantages rather than dealing unfair competition;

apply knowledge or idea to run organizational operations smoothly based on

banking acts and monetary policy;

understand functions of IMF and World Bank and foreign exchange dealings

91

Course Details:

Unit 1: Introduction to Central Banking 8 LHs

Central Bank in the Financial System, Evolution, Characteristics, Objectives,

Philosophy and Functions of Central Banks, Relationship Between Central

Bank and Govt, Central Bank and Commercial Banks, Modern Central

Banking, Autonomy of Central Bank, Separation Between Supervisory and

Monetary Authorities.

Unit 2: NRB Directives and Prudential Regulatory Framework 6 LHs

Capital Adequacy Framework: Basel I, Basel II and Basel III; Regulating

BFIs, Microfinance Financial Institutions and Infrastructure Development

Bank; Upgrading, Merger and Acquisition need, Need and Significance of

Regulation, Prudential Regulation: Scope of Regulations, Effect of

Deregulation, Bank Examination/Regulation, Methods of Bank Examination,

Brief introduction to AML/CFT.

Unit 3: Offences and Punishment 3 LHs

Banking Offences, Restrictions, Punishment Proceedings and Disposal of the

suits.

Unit 4: An overview of Monetary Policy of Nepal 6 LHs

Money and its Functions, Theories of Money Demand: Quantity theory,

Keynesian theory and Portfolio theory; Money Supply: Definition and factors

affecting money supply, High powered money and money multiplier.

Decomposition of high power money; Monetary Policy of Nepal: Objectives,

targets and tools; Roles of Nepal Rastra Bank in monetary and financial

stability, Monetary Transmission Mechanism, Domestic Economic Situation

and World Economic outlook, Features and Progress matrix of Monetary

policy.

Unit 5: International Monetary Institutions 4 LHs

Origin of IMF; Objectives of the fund, Organization and structure of the Fund,

Function of the fund, Fund borrowings, General Arrangements to Borrow,

Fund Lending, Special Drawing Rights; World Bank: functions, Membership

organization, Borrowing and lending activities, Nepal and the World Bank.

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Unit 6: Foreign Exchange and Reserve Management 5 LHs

Management of Foreign Exchange, Foreign exchange rate determination:

theories of foreign exchange, fixed vs flexible exchange rate systems,

Relationship with International Monetary Intuitions, Foreign Currency

Investment; Provisions on Monetary Policy; Foreign exchange rate Act.

Suggested Readings:

NRB Act

Monetary Policy

BAFIA

NRB Directives

Banking Offence and Punishment Act

Ahmed, A.K.N. Deregulation and Central Bank Autonomy. University Press Ltd,

Dhaka.

Dekock, M.H. Central Banking Mishkin, Frederic, S. The Economics of Money,

Banking and Financial Markets. HarperCollins, New York.

Sheng, Andrew. Bank Supervision. Principles and Practice. EDI Working Paper.

Smith, Gray.Money, Banking and Financial Intermediation. Heath and Company,

Lexington, D.C.

Vittas, Dimitri. Financial Regulation. The World Bank, Washington.

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BNK 608: BANK RISK MANAGEMENT

Credits: 2

Lecture Hours: 32

Course Objectives:

The course is designed to gain a detailed knowledge pertaining to Risk Management

in Banking Industry. It emphasizes on how different types of Risk may affects banking

industry and how these risks can be managed. The aim of this course is to provide

deep knowledge of Risk and Risk management to business students so that they can

apply the same for managing the Risk in Banking Industry.

Course Description:

The course designates the entire set of Risk management processes and models

allowing banks to implement risk-based policies and practices. It covers all techniques

and management tools required for measuring, monitoring and controlling Risks in

banking industry. Similarly, it emphasizes on Risk Models to determine the

aggregate Risk in a financial portfolio. Moreover, it deals with the Banking

Regulations which subjects banks to certain requirements, restrictions and guidelines,

designed to create market transparency between banking institutions and the

individuals and corporations with whom they conduct business. Furthermore, it

highlights with Risk Management Processes to manage different types of Risks in

Banking Industry.

Learning Outcomes

Students who successfully complete this paper will be able to:

identify what are the different types of Risk, how they affect banking industry

and what are the techniques for Risk Management.

evaluate Asset Liability Management (ALM) for measuring, monitoring and

managing the market Risk of a bank.

conceptualize different components of Risk Modeling in Banking Industry.

assess different types of regulations pertaining to Risk Management in

Banking Industry.

gain knowledge on Risk Management Processes for managing Risks in

Banking Sector.

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Course Details:

Unit 1: Introduction 5 LHs

Banking Risk: Concept, Types: Credit Risk, Liquidity Risk, Interest Rate Risk,

Foreign Exchange Risk, Market Risk, Operational Risk, Other Risk (Country

Risk, Performance Risk etc.); Component of Risk Management System: Risk

Identification, Risk Management and Risk Control.

Unit 2: Asset Liability Management (ALM) 6 LHs

ALM Overview, Benefits of ALM, ALM Process, Asset-Liability

Management (ALM)-Organization and Techniques, Hedging Issues: Interest

rate exposure, the natural exposure of commercial bank, hedging policies.

Unit 3: Risk Models 8 LHs

Risk Measures: Measuring Uncertainty, Sensitivity, Volatility, Value at Risk

(VaR) and Capital: VaR and Risk Management, Potential Loss, Measuring

expected and unexpected losses, Loss percentiles of the normal distribution,

Issues and advances in modelling VaR and Portfolio risks, Risk Based Capital;

Valuation: Accounting Standards, Market to Market Valuation, Mark-To-

Model Versus Full Mark-To-Market Valuation.

Unit 4: Banking Regulations 7 LHs

Regulatory Issues: The need for regulation, the dilemmas of the regulator;

Capital Adequacy: Risk-based Capital Regulations, The implications of capital

requirements; The ‗Current Accord‘ Capital Regulations: The Cooke Ratio

and Credit Risk, Market Risk, Derivatives and credit risk, Interest rate risk;

The New Basel Accord.

Unit 5: Risk Management Process 6 LHs

The basic building blocks of risk management processes: Bottom-up and Top-

Down Processes, Transversal Process Building Blocks; Risk Models and Risk

Processes, Risk Processes and Business Policy; Three basic transversal

processes: Process1-Setting up Risk and Return Guidelines, Process 2-

Decision-Making, Process 3-Risk-Return Monitoring; Bank Wide Risk

Management: Risk Management Differs across Risk, Different Risks Fit into a

Single Framework.

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Suggested Readings:

Joel Bessis, ―Risk Management in Banking‖, John Wiley & Sons, LTD, Second

Edition, 8th

April, 2002.

R.K. Mishra, I.S Yadav and A. P Kumar, ―Risk Management in Banking, Insurance

and Financial Services, Academic Foundations, 2014.

Michel Crouhy, Dan Galai and Robert Mark ―The essentials of Risk Management‖,

Mc Graw Hill Education.

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BNK 609: SEMINAR IN BANKING

Credits: 2

Lecture Hours: 32

Class Description for Seminar in Finance

Course objective and method

The banking seminar mainly focuses on current topics in banking. The seminar is

conducted in the form of lectures, discussions, case analyses, work on semester

projects, and student presentations. The aim of the seminar is to familiarize students

with current topics and issues in banking as well as introducing methodologies

applicable in research and academic writing.

Seminar Contents

Discussion topics in the banking seminar will be announced at the beginning of the

seminar. Prior discussion topics have included focus on quantitative and qualitative

research and its application, modern trends in banking research and many more as per

the seminar requirements. Seminar topics will be selected in consultation with

students.

Teaching Materials

Required readings and teaching material will be announced at the beginning of the

semester.

Grading

Final grading will be based on seminar attendance, participation in discussions and a

final seminar paper. The contents, the research and methodology applied in seminar

papers will be taken into account in the final grade. Further details regarding the

grading will be provided at the beginning of the course.

Remarks

All seminar discussions will be conducted in English. Students must complete a

seminar paper or research report as announced by the instructor at the beginning of

the semester. This paper (or report) will be evaluated based on the contents, the

organization of the paper, the research and methodology applied. Students are

expected to be familiar with the APA style of academic writing and must have a

working knowledge of computers and will have to use the Internet for their research

work.