COMSATS Institute of Information Technology

Department of Management Sciences

Course Title Commercial Banking

Program MBA/MBA-E
Course Instructor Dr. Waheed Akhter
E-mail Akhter.waheed@gmail.com
Course Code:
Credit Hours 03

Course Description

Commercial Banks are the most important and unarguably the most complex financial institution
in any economy. An understanding of the operations and functions of a commercial bank is
imperative for any finance graduate. The objective of this course is to provide students with the
essential insight into functions and forms of commercial banks, their regulatory environment and
their operational and managerial activities. The course covers history of banking, banking
practices, laws and application in Pakistan. It also provides an overview of role of Sate Bank of
Pakistan as regulatory body and custodian of banking system in Pakistan. As a part of this
course, the study of Islamic banking and finance holds a pivotal importance ranging from
individuals to small businesses to corporate empires to researchers to policy makers and
government around the Muslim world.

Methodology

Training instruments will include:

• Lectures: theoretical discussion of each topic as laid down in course outline.
• Handouts/ Notes
• Assignments
• Discussions

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Learning Objectives

1. To study the selected theoretical and applied aspects of commercial banking.

2. To understand and learn various techniques related to Asset Liability Management,
Investment Management and evaluating bank performance.
3. The students will have the opportunities to practice written and oral communication skills
through class participation and presentation of class projects.

Course Grade
The final grade will be determined as Follows
1st Sessional 10%
2nd Sessional 15%
Terminal Examination 50%
Quizzes, Assignments, Project Report 25%
Total 100%

Consultancy Service

During this programme consider me as your consultant. You are free to discuss the progress of
your courses any time you want. However to avoid inconvenience setting up of appointment is
recommended.

Reference Material
• Commercial Banking: The Management of Risk, 4th Edition, by Benton E. Gup and
James W. Kolari, John Wiley and Sons Ltd. Singapore
• Practice & Law of Banking by Dr. Israr H. Siddiqi, Royal Book Company, Karachi.
• “Meezan Bank guide to Islamic Banking”, (2006), by Dr. Muhammad Imran Ashraf
Usmani, Darul Ishat, Karachi.

Week Topics to be Covered

1 Functions and forms of Banking, Factors affecting Banking and Market Shares
2 Framework for Evaluating Bank Performance, Analyzing Bank performance with

2
 Financial Ratios
3 Overview of Asset Liability Management (ALM)
4 Techniques of Asset Liability Management (ALM): Futures, Options and Swaps
5 Credit Evaluation Process: Credit Scoring, Credit rating, Financial Analysis, Ratio

Analysis, Common Statement Analysis

6 Commercial and Industrial Lending: Principal Lending Activities, Collateral,

Lending process.
7 Bank Capital Management:

8 Off-Balance Sheet Activities:

9 Electronic Banking:
10 Specialized Credit Institutions: National and International
11 Islamic Contract, Sale, Valid Sale, Types of Sale

12 Islamic modes of financing: Musharakah, Mudarbah, Ijarah (Leasing) etc.

13 Fatwas :Sale on Installments, Halal Stocks, Financial and Economic Issues

14 Class Presentations: Group Projects

15 Class Presentations: Group Projects