DBA 7006  Indian banking financial system

UNIT I  OVERVIEW OF INDIAN BANKING SYSTEM  -  Overview of Indian Banking
System, Functions of banks, key Acts governing the functioning of Indian banking
system  –  RBI Act 1934, Negotiable Instruments  Act 1881, Banking Regulations Act
1948  –  Rights and obligations of a banker, Overview of Financial statement of banks  –
Balance sheet and Income Statement.
UNIT II  SOURCES AND APPLICATION OF BANK FUNDS  -  Capital adequacy, Deposits
and non-deposit sources,  Designing  of deposit schemes and pricing  of deposit services,
application of bank funds – Investments and Lending functions, Types of lending – Fund
based, non-fund based, asset based  –  Different types of loans and their features, Major
components of a typical loan policy document, Steps involved in Credit analysis, Credit
delivery and administration, Pricing of loans, Customer profitability analysis.
UNIT III  CREDIT MONITORING AND RISK MANAGEMENT   -  Need for credit
monitoring, Signals of borrowers’ financial sickness, Financial distress prediction
models  –  Rehabilitation process, Risk management  –  Interest rate, liquidity, forex,
credit, market, operational and solvency risks  –  risk measurement process and
mitigation, Basic understanding of NPAs and ALM.
UNIT IV   MERGERS, DIVERSIFICATION AND PERFORMANCE EVALUATION  -Mergers and Diversification of banks into securities market, underwriting, Mutual funds
and Insurance business, Risks associated therewith. Performance analysis of banks  –
background factors, ratio analysis and CAMELS.
UNIT V  E-BANKING  -  Payment system in India  –  Paper based, e-payments  –  Electronic
banking – advantages – Plastic money, E-money – Forecasting of cash demand at ATMs
– Security threats in e-banking and RBI’s initiatives