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Overview of Banking

Program : PGPM Class of : 2012

Credit : 3 Sessions : 30

Course Code : SL BK 605

AIM1. An understanding of the basic concepts and principles of banking. 2. Comprehensive understanding of various banking functions and activities

Learning Outcomes

7. Acquire knowledge of concepts relevant to banking8. Ability to understand statutory and regulatory norms and compliance

requirements

9. Ability to Explain the rationale of the functions performed by banks10.Able to evaluate the lending requirements of retail and commercialbusiness entities

11.Able to assess the amount of credit requirements12.Demonstrate knowledge of contemporary topics in the area of banking

REFERENCE BOOKS AUTHOR / PUBLICATION

Banking Theory Law and Practice Sundaram / Varshney. Sultan Chand and Sons

Publisher - 2004

Principles & Practice of Banking Indian Institute of Bankers- Macmilan

Practical Banking Advances Bedi, H.L. / Hardikar, V.K. UBSPD publishersand distributors

Bank Credit Management S.Murali & K.R.Subbakrishna, Himalaya

Publishing House, 2008 Edition

BankingPrinciples and OperationsM.N.Gopinath, Snowwhite Publication, 2010

Edition

Indian Financial System and Commercial

Banking

IIBF, Mc Millan Publications (Latest Edition)

Management of Banking & Financial Services Paul, Justin / Suresh, Padmalatha. Pearson

2007

Detailed Syllabus

Indian Banking System: The Financial

Systems the Functions of Financial

Intermediaries.

The Origin and Growth of Banking: of

Banking, Functions of Commercial Banks,,

Banking in the New Millennium.

Banker Customer Relationship: Types of

Accounts, Types of Relations, KYC Norms,

Banker Customer relationship, Rights and

Duties of Banker/ Customer.Sources &Uses of Funds: Bank Balance sheet,

Sources & Uses of Funds in a Bank, Form ofBalance Sheet of Banking Companies, Different

Schedule under Banking Regulation Act.

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Provisions of NI Act: Negotiable Instruments-

Bills of Exchange, Cheques, Promissory Notes,

Features of negotiability, Validity, Crossing,

Endorsement, Specific reference to paying

Banker, Collecting Banker- Protection- Penal

Provisions for Cheque Returns.

Regulatory requirements in respect of Cash

Reserve Ratio (CRR), Statutory Liquidity

Ratio (SLR), Capital Adequacy

Requirements (CAR), On site and Off site

inspection - Risk based supervision DepositManagement: Importance of Deposit, Types of

Deposit in India, USA & Europe. NRI Deposits

Cost of Deposit & its impact on Profitability,

concepts of Fixed & Floating Rate of Interest,

Deposit Insurance. Calculation of Service

charges for non maintenance of minimumbalance, interest on SB, penalty for premature

closure of term deposits, etc.

Cheques: Special Features Negotiability,

Validity, Crossing & Endorsement

Cash Management: Importance of CashManagement issues, Cash at Counter, Vault &

Currency Chest.

Lending Activities: Lending activity, Basic

requirements for lending.

Credit Policy: Need for Credit Policy,Components of Credit Policy, Credit PolicyPursued by the Government, Bench Marks

Exposure Norms, Credit Culture.

Retail Banking: Basics of Retail Banking,

Forms of Retail Banking and Emerging issues

Corporate Banking: The nature of corporate

banking, Developments in corporate banking,Consortium finance, Multiple banking

arrangements, and Loan syndication

Rural Banking & Micro Finance: Sources of

rural financeRegional Rural Banks (RRBs)

Service Area Approach (SAA) National Bankfor Agriculture and Rural Development

(NABARD), Microfinance- Models of

microfinance, Financial Inclusion.

Follow up & Recovery:NPAs, Classification,

IRAC Norms, SARFAESI Act OVERVIEW

ONLY with special reference to Enforcement ofSecurities Interest.

Fee-based Services: Feebased Services

L/C,B/G, Subsidary services, Bancassurance,

Demat Account, Safe Deposit Locker , Mutual

Funds, E-Banking: Different types of plastic

money, Concept of a credit card, Distinction

between Credit card, Charge card and Debit

card, Mechanics of a credit card transaction,Credit card as an augmented retail financial

product, Credit card business in India, The

merging scenario - CRM, (AWB, ATM, Mobile

Banking Internet Banking) Delivery Channels

(Payment & settlement services) , Online

Banking, CBS,NEFT, RTGS

Banking Regulation Act 1949 Business of

banking companies, Management of banks,

Restrictions on business, role of RBI, Statutory

returns

Recommended Cases

Sl Case No. Name of the Case

1 INB005IRC Indian Retail Banking: Attracting

more MNC Banks

2 INV0003K Rural Banking Shifting Paradigm

3 COT0006 Indian Banking Industry and Bank of

Baroda: The Need for Organisational

Transformation

4 ECC0026 US Financial Crisis: Is Credit Card

Debacle in the making?

5 SEP0003 Micro Finance : A case of Grameen

Bank, Bangladesh

6 INA0109 Credit Cards and Business Growth

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Suggested Schedule of Sessions

TopicNo. of

SessionsIndian Banking System 1

Origin and Growth of Banking 1

Banker Customer Relationship 2

Sources & Uses of funds 1

Regulatory Requirements of CRR,

etc

2

Deposit Management 3

NI Act 2

Cash Management 1Lending Activities 2

Credit Policy 1

Retail Banking 1

Corporate Banking 1

SME Banking 2

Rural Banking & Microfinance and

Financial Inclusion

2

Follow-up & Recovery 2

Fee-based services

Managementof Public issues

2

E Banking 3

Banking Regulation Act 1949 1

Total 30