M.COM (PREVIOUS) II.

BANKING AND BUSINESS FINANCE Paper - I MONETARY SYSTEM AND FINANCIAL INSTITUTIONS IN INDIA UNIT - I Monetary and other financial assets. Money supply and measures of money supply in India. Liberalisation and globalisation of the Indian economy. Reserve Bank of India - constitution and functions : Role in Monetary Management. UNIT - II Objectives and instruments of monetary management. Monetary system in India - structure, institutions and functions. Monetary and fiscal policy and reforms. Reforms in banking and finance : Chakravartee Committee Report, Narshimham Committee Recommendations, Vaghual Committee Recommendations, Report of the Task Force on Money Market, Mutual Funds (Basu Committee). UNIT - III Banking and Financial Institutions in India : Commercial banks; Co-operative banks and development banks; constitution, functions; working and evaluation. UNIT - IV Non banking financial institutions : Life Insurance Corporation (LIC), General Insurance Corporation (GIC), Unit Trust of India (UTI), Mutual Funds; functions and operations. Modern information and communication technology : fax, electronic mail service, satellite communication etc. - its use in financial system.

Paper - II BANK MANAGEMENT UNIT - I Bank environment - professionalisation of banking - settings of corporate objectives. Bank organisation : process of bank management - structure and internal organisation of banks - delegation of authority in banks. UNIT - II Branch Vs. Unit banking - examples from abroad. Branch location and branch expansion decisions Financial Management in banks : balance sheet of a commercial bank - management of assets and liabilities in banks - costs and profitability. UNIT - III Personnel Management : Manpower planning - personnel inventory. Recruitment - training, promotion, motivation. Bank marketing : product planning and development diversification and specification, customer services. UNIT - IV Information system for internal monitoring and control, performance budgeting. Competition, Co-ordination and controls of banks. Computerisation : need, application, progress. Current issues and problems. Paper - III BANKING LAW AND PRACTICE UNIT - I Banker-customer relationship : business of Banking - permitted activities of commercial banks in India, definition and meaning of Banker and Customer- general and special features of the relationship, Bankers opinions, Indemnities granted by and to bankers. UNIT - II

Deposit accounts : opening, operations and closures of (a) fixed deposit account (b) recurring deposit account (c) savings account (d) Current Account. Mandate and Power of Attorney - Nomination facility. Special types of customers : minor, married women, lunatic person, illiterate person, customers attorney, joint account holders, partnership firm, joint Hindu family firm, joint stock company, un-incorporated associations, trusts. UNIT - III Negotiable Instruments (NIs) : definitions and features of NIs, Definition, features and drawing of : cheque, bills of exchange, promissory note, demand draft and other NIs, rights and duties of drawer, drawee and payee, holder and holder in due course, holder for value, endorsement, crossings. Payments of Cheques : precautions by paying banker, duties of paying banker, statutory protection, material alternations, forged cheques, payment by mistake, cases where banker must refuse payment, garnishee order, attachment of accounts by tax authorities. UNIT - IV Collection of Cheque : collecting banker as holder for value and agent of customer, duties and liabilities of collecting banker, statutory protection. Bank services : remittances, safe custody, safe deposit vault, merchant banking, hire purchase, leasing, factoring, credit cards, gift cheques, mobile banks and extension counters, letters of credit, purchase and sale of securities, securitisation, guarantees. Paper - IV FOREIGN EXCHANGE AND FINANCING OF FOREIGN TRADE UNIT I Concept of foreign exchange, principles of foreign exchange; foreign exchange markets, Euro-currency markets. Instruments of international remittance; T.T., M.T. Drafts, T.C. foreign currency bills of exchange, letters of credit, tested telex and fax, custodial services. UNIT - II Foreign exchange transactions of commercial banks; buying and selling, spot and forward : real factors responsible for foreign exchange transactions. Foreign exchange quotations : types, direct and indirect, spot and forward, buying and selling.

Process of calculating foreign exchange quotations by banks : use of maxims and the principle of valuer compensee in calculation of quotations. UNIT - III Foreign exchange dealings of banks : need, mechanism and techniques, exchange, cash and account positions of a bank. Over bought and over sold positions of a bank and cover operations; Functions of foreign exchange dealer of a bank. Correspondent bank relationships and accounting mechanism between bank offices : Nostro, Vostro and Loro accounts. Financing of foreign trade by banks : terms and documents. UNIT - IV Financing of exports by banks : pre-shipment credit and post-shipment credit. Financing of imports : bills discounting and letters of credit; parties, procedure, types and features. Convertibility of rupee on current and capital accounts. The foreign exchange regulation and management.

M.COM (FINAL) II. BANKING & BUSINESS FINANCE Compulsory Paper - I FINANCIAL MARKETS UNIT - I Concept and types of money and financial assets. Instruments of Finance : types and characteristics. Money Market in India : Characteristics & operations. UNIT - II Financial Market : Structure, Institution and Operating Mechanism and their role in economic development. Capital Market in India : Constitution, functions and operations, SEBI, its role in promotion and development of capital market in India. UNIT - III Risk assessment and analysis : Measures of risk and techniques of risk analysis.

Credit rating : rationale, institutions, importance. UNIT - IV Financial assets : pricing and interest rates. Bill Market : structure, schemes and mechanism. International financial institutions : International Monetary Fund and World Bank : functions & operations.

Paper - II DEVELOPMENT BANKING UNIT - I Development Banking : concept evolution and present structure. Role of development development in India. UNIT - II Project financing : project report, technical and financial feasibility, economic and commercial viability of the project. Methods for appraising economics viability of a project proposal : cash flow - discounted cash flow - inspection method, cost - benefit ratio, net present value (NPV) and internal rate of return (IRR). UNIT - III Industrial Development Bank of India (IDBI) : constitution, functions and working, its role in promoting industrial development. Industrial Credit and Investment Corporation of India (ICICI) and Industrial Finance Corporation of India (IFCI) and State Finance Corporations : constitution, functions and operations. National Bank for Agriculture and Rural Development (NABARD) : its role in rural development : constitution, functions, operations and refinancing mechanism. UNIT - IV Development Institutions : Unit Trust of India (UTI), National housing Bank (NHB), HUDCO, Tourism Development and Finance Corporation (TDFC) : Role in economic development, functions, financing mechanism and schemes. Small Industrial Development Finance Corporation : constitution, role and operations. banking in entrepreneurship and economic

Balance sheet analysis : technique of ratio analysis, its use and limitations.

Sick Unit : problem, causes, symptoms and remedies - role of the Board of Industrial and Financial Reconstruction. Paper - III QUANTITATIVE TECHNIQUES FOR BANKING AND FINANCE UNIT - I Quantitative techniques for bank management and decision making in banks : an overview. Data collection : tabulation, graphs, charts, major sources of data on banking. Probability : concept - methods of assigning probability, counting principles, probability rules. UNIT - II Sampling : need and techniques, designing questionnaire, sampling distributions, decision making and sampling distribution of X & P variance, coefficient of variance. Matrix algebra and application, optimisation techniques. Time series analysis and index numbers : analysing the seasonal and trend components of bank deposits and credit. UNIT - III Hypothesis : developing, testing, sample estimation, the student t distribution, banking examples. Statistical estimation : simple linear regression and correlation analysis : significance tests, regression analysis for description, regression analysis for prediction of bank deposits and credit. Multiple regression analysis : developing models and application of multiple regression models in banking - dummy variables. UNIT - IV Forecasting techniques : trend based and regression based forecasting models : forecasting of bank deposits and credit. Decision analysis : decision making environment, subjective probability assessment, decision making criteria, decision trend analysis. Application of computers in banks, for forecasting of deposits and credit etc. Optional Paper - A INTERNATIONAL BANKING UNIT - I

Balance of trade and payment - surplus and deficit. International banks and banking, leads and lags, hot money swaps, arbitrage, hedging. Risk management in foreign exchange : calculation of forward quotations of banks, examples. UNIT - II International Monetary Fund (IMF) : Constitution, its role in management of international liquidity and other functions : critical appraisal of its working. World Bank (IBRD) : Constitution, functions and operations. Asian Development Bank (ADB) : constitution, functions and operations. UNIT - III Foreign Exchange Markets : Constituents, mechanism, functions and operations in India. Euro - currency Market : origin, characteristics, functions and operations. Foreign exchange Regulation and Management : Rationale, legislation and state policy. UNIT - IV Export Credit, and Guarantee Corporation (ECGC) : Constitution, functions, schemes, critical appraisal of working. Export Import Bank of India (EXIM Bank), functions and operations. Computerisation of foreign exchange operations of banks.

Optional Paper - B BANKS AND BUSINESS FINANCE UNIT - I Bank advance : types and methods of creating charge over securities and documentation. Financial analysis : techniques for bank lending limitations of ratio analysis. UNIT - II Project financing : institutions and policy, ICICI, IDBI, IFCI, SFCs assessment of credit needs for term lending. Appraisal of a term loan proposal : technical feasibility, financial feasibility, economic viability (cost benefit ratio), NET Present Worth (NPW) and Internal Rate of Return (IRR), examples.

UNIT - III Bank lending and assessment of credit needs for working capital : Tandon and Chore committee reports. Banks and rehabilitation of sick industrial units. Refinance and credit guarantee facilities for banks in India. Role of IDBI, Deposit Insurance and Credit guarantee Corporation (DICGC). Monitoring and follow-up of advance by banks. UNIT - IV Banks role in equity issues and underwriting and in the bill market. Merchant banking : leasing, factoring, venture capital and entrepreneurial development. Credit cards. Current issues and problems. Optional Paper - C RURAL BANKS UNIT - I Theories of rural lending : Real Bills Doctrine, Shiftability Theory and Anticipated Income Theory. Rationale for rural development and its place in the planned economy of India, progressive rural structure. Process of financial intermediation, role of financial intermediaries in rural development. UNIT - II Single agency vs. Multi agency approach to rural credit, institutional framework for rural banking in India. Area development approach to rural lending, salient features and working of the Lead Bank Scheme, Service Area Approach. Poverty Alleviation Programme (IRDP). UNIT - III Principles of Co-operation, three tier structure of Co-operative credit system, structure and operations of Land Development Banks, F.S.S. and LAMPs. Commercial Banks and RRBs : structure, rural operations and problems. Crop loan system : schematic lending, crop insurance scheme. Programmes : Integrated Rural Development

National Bank for Agriculture and Rural Development (NABARD) : constitution, functions, operations and role in financing rural development. UNIT - IV Current issues and problems : problem of overdues, non viability of rural financing institutions. Informal financial sector : types of money lenders, advantages and disadvantages, role of this sector in rural development. Major policy issues : Interest rate controversy : cheap vs. Market rate of interest on deposits and credit, directed credit vs. demand oriented credit.

M.COM (PREVIOUS) II. BANKING AND BUSINESS FINANCE Paper - I MONETARY SYSTEM AND FINANCIAL INSTITUTIONS IN INDIA UNIT - I Monetary and other financial assets. Money supply and measures of money supply in India. Liberalisation and globalisation of the Indian economy. Reserve Bank of India - constitution and functions : Role in Monetary Management. UNIT - II Objectives and instruments of monetary management. Monetary system in India - structure, institutions and functions. Monetary and fiscal policy and reforms. Reforms in banking and finance : Chakravartee Committee Report, Narshimham Committee Recommendations, Vaghual Committee Recommendations, Report of the Task Force on Money Market, Mutual Funds (Basu Committee).

UNIT - III Banking and Financial Institutions in India : Commercial banks; Co-operative banks and development banks; constitution, functions; working and evaluation. UNIT - IV Non banking financial institutions : Life Insurance Corporation (LIC), General Insurance Corporation (GIC), Unit Trust of India (UTI), Mutual Funds; functions and operations. Modern information and communication technology : fax, electronic mail service, satellite communication etc. - its use in financial system. Paper - II BANK MANAGEMENT UNIT - I Bank environment - professionalisation of banking - settings of corporate objectives. Bank organisation : process of bank management - structure and internal organisation of banks - delegation of authority in banks. UNIT - II Branch Vs. Unit banking - examples from abroad. Branch location and branch expansion decisions Financial Management in banks : balance sheet of a commercial bank - management of assets and liabilities in banks - costs and profitability. UNIT - III Personnel Management : Manpower planning - personnel inventory. Recruitment - training, promotion, motivation. Bank marketing : product planning and development diversification and specification, customer services. UNIT - IV Information system for internal monitoring and control, performance budgeting. Competition, Co-ordination and controls of banks. Computerisation : need, application, progress.

Current issues and problems. Paper - III BANKING LAW AND PRACTICE UNIT - I Banker-customer relationship : business of Banking - permitted activities of commercial banks in India, definition and meaning of Banker and Customer- general and special features of the relationship, Bankers opinions, Indemnities granted by and to bankers. UNIT - II Deposit accounts : opening, operations and closures of (a) fixed deposit account (b) recurring deposit account (c) savings account (d) Current Account. Mandate and Power of Attorney - Nomination facility. Special types of customers : minor, married women, lunatic person, illiterate person, customers attorney, joint account holders, partnership firm, joint Hindu family firm, joint stock company, un-incorporated associations, trusts. UNIT - III Negotiable Instruments (NIs) : definitions and features of NIs, Definition, features and drawing of : cheque, bills of exchange, promissory note, demand draft and other NIs, rights and duties of drawer, drawee and payee, holder and holder in due course, holder for value, endorsement, crossings. Payments of Cheques : precautions by paying banker, duties of paying banker, statutory protection, material alternations, forged cheques, payment by mistake, cases where banker must refuse payment, garnishee order, attachment of accounts by tax authorities. UNIT - IV Collection of Cheque : collecting banker as holder for value and agent of customer, duties and liabilities of collecting banker, statutory protection. Bank services : remittances, safe custody, safe deposit vault, merchant banking, hire purchase, leasing, factoring, credit cards, gift cheques, mobile banks and extension counters, letters of credit, purchase and sale of securities, securitisation, guarantees. Paper - IV FOREIGN EXCHANGE AND FINANCING OF FOREIGN TRADE

UNIT

I Concept of foreign exchange, principles of foreign exchange; foreign exchange markets, Euro-currency markets. Instruments of international remittance; T.T., M.T. Drafts, T.C. foreign currency bills of exchange, letters of credit, tested telex and fax, custodial services.

UNIT - II Foreign exchange transactions of commercial banks; buying and selling, spot and forward : real factors responsible for foreign exchange transactions. Foreign exchange quotations : types, direct and indirect, spot and forward, buying and selling. Process of calculating foreign exchange quotations by banks : use of maxims and the principle of valuer compensee in calculation of quotations. UNIT - III Foreign exchange dealings of banks : need, mechanism and techniques, exchange, cash and account positions of a bank. Over bought and over sold positions of a bank and cover operations; Functions of foreign exchange dealer of a bank. Correspondent bank relationships and accounting mechanism between bank offices : Nostro, Vostro and Loro accounts. Financing of foreign trade by banks : terms and documents. UNIT - IV Financing of exports by banks : pre-shipment credit and post-shipment credit. Financing of imports : bills discounting and letters of credit; parties, procedure, types and features. Convertibility of rupee on current and capital accounts. The foreign exchange regulation and management.

M.COM (FINAL) II. BANKING & BUSINESS FINANCE Compulsory Paper - I FINANCIAL MARKETS UNIT - I

Concept and types of money and financial assets. Instruments of Finance : types and characteristics. Money Market in India : Characteristics & operations. UNIT - II Financial Market : Structure, Institution and Operating Mechanism and their role in economic development. Capital Market in India : Constitution, functions and operations, SEBI, its role in promotion and development of capital market in India. UNIT - III Risk assessment and analysis : Measures of risk and techniques of risk analysis. Credit rating : rationale, institutions, importance. UNIT - IV Financial assets : pricing and interest rates. Bill Market : structure, schemes and mechanism. International financial institutions : International Monetary Fund and World Bank : functions & operations.

Paper - II DEVELOPMENT BANKING UNIT - I Development Banking : concept evolution and present structure. Role of development development in India. UNIT - II Project financing : project report, technical and financial feasibility, economic and commercial viability of the project. Methods for appraising economics viability of a project proposal : cash flow - discounted cash flow - inspection method, cost - benefit ratio, net present value (NPV) and internal rate of return (IRR). UNIT - III Industrial Development Bank of India (IDBI) : constitution, functions and working, its role in promoting industrial development. banking in entrepreneurship and economic

Balance sheet analysis : technique of ratio analysis, its use and limitations.

Industrial Credit and Investment Corporation of India (ICICI) and Industrial Finance Corporation of India (IFCI) and State Finance Corporations : constitution, functions and operations. National Bank for Agriculture and Rural Development (NABARD) : its role in rural development : constitution, functions, operations and refinancing mechanism. UNIT - IV Development Institutions : Unit Trust of India (UTI), National housing Bank (NHB), HUDCO, Tourism Development and Finance Corporation (TDFC) : Role in economic development, functions, financing mechanism and schemes. Small Industrial Development Finance Corporation : constitution, role and operations. Sick Unit : problem, causes, symptoms and remedies - role of the Board of Industrial and Financial Reconstruction. Paper - III QUANTITATIVE TECHNIQUES FOR BANKING AND FINANCE UNIT - I Quantitative techniques for bank management and decision making in banks : an overview. Data collection : tabulation, graphs, charts, major sources of data on banking. Probability : concept - methods of assigning probability, counting principles, probability rules. UNIT - II Sampling : need and techniques, designing questionnaire, sampling distributions, decision making and sampling distribution of X & P variance, coefficient of variance. Matrix algebra and application, optimisation techniques. Time series analysis and index numbers : analysing the seasonal and trend components of bank deposits and credit. UNIT - III Hypothesis : developing, testing, sample estimation, the student t distribution, banking examples. Statistical estimation : simple linear regression and correlation analysis : significance tests, regression analysis for description, regression analysis for prediction of bank deposits and credit.

Multiple regression analysis : developing models and application of multiple regression models in banking - dummy variables. UNIT - IV Forecasting techniques : trend based and regression based forecasting models : forecasting of bank deposits and credit. Decision analysis : decision making environment, subjective probability assessment, decision making criteria, decision trend analysis. Application of computers in banks, for forecasting of deposits and credit etc. Optional Paper - A INTERNATIONAL BANKING UNIT - I Balance of trade and payment - surplus and deficit. International banks and banking, leads and lags, hot money swaps, arbitrage, hedging. Risk management in foreign exchange : calculation of forward quotations of banks, examples. UNIT - II International Monetary Fund (IMF) : Constitution, its role in management of international liquidity and other functions : critical appraisal of its working. World Bank (IBRD) : Constitution, functions and operations. Asian Development Bank (ADB) : constitution, functions and operations. UNIT - III Foreign Exchange Markets : Constituents, mechanism, functions and operations in India. Euro - currency Market : origin, characteristics, functions and operations. Foreign exchange Regulation and Management : Rationale, legislation and state policy. UNIT - IV Export Credit, and Guarantee Corporation (ECGC) : Constitution, functions, schemes, critical appraisal of working. Export Import Bank of India (EXIM Bank), functions and operations. Computerisation of foreign exchange operations of banks.

Optional Paper - B BANKS AND BUSINESS FINANCE UNIT - I Bank advance : types and methods of creating charge over securities and documentation. Financial analysis : techniques for bank lending limitations of ratio analysis. UNIT - II Project financing : institutions and policy, ICICI, IDBI, IFCI, SFCs assessment of credit needs for term lending. Appraisal of a term loan proposal : technical feasibility, financial feasibility, economic viability (cost benefit ratio), NET Present Worth (NPW) and Internal Rate of Return (IRR), examples. UNIT - III Bank lending and assessment of credit needs for working capital : Tandon and Chore committee reports. Banks and rehabilitation of sick industrial units. Refinance and credit guarantee facilities for banks in India. Role of IDBI, Deposit Insurance and Credit guarantee Corporation (DICGC). Monitoring and follow-up of advance by banks. UNIT - IV Banks role in equity issues and underwriting and in the bill market. Merchant banking : leasing, factoring, venture capital and entrepreneurial development. Credit cards. Current issues and problems. Optional Paper - C RURAL BANKS UNIT - I Theories of rural lending : Real Bills Doctrine, Shiftability Theory and Anticipated Income Theory. Rationale for rural development and its place in the planned economy of India, progressive rural structure. Process of financial intermediation, role of financial intermediaries in rural development. UNIT - II

Single agency vs. Multi agency approach to rural credit, institutional framework for rural banking in India. Area development approach to rural lending, salient features and working of the Lead Bank Scheme, Service Area Approach. Poverty Alleviation Programme (IRDP). UNIT - III Principles of Co-operation, three tier structure of Co-operative credit system, structure and operations of Land Development Banks, F.S.S. and LAMPs. Commercial Banks and RRBs : structure, rural operations and problems. Crop loan system : schematic lending, crop insurance scheme. National Bank for Agriculture and Rural Development (NABARD) : constitution, functions, operations and role in financing rural development. UNIT - IV Current issues and problems : problem of overdues, non viability of rural financing institutions. Informal financial sector : types of money lenders, advantages and disadvantages, role of this sector in rural development. Major policy issues : Interest rate controversy : cheap vs. Market rate of interest on deposits and credit, directed credit vs. demand oriented credit. Programmes : Integrated Rural Development