Part A: Content Design: Birla Institute of Technology & Science, Pilani Work Integrated Learning Programmes Digital

BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE, PILANI
WORK INTEGRATED LEARNING PROGRAMMES

Digital
Part A: Content Design
Course Title Management of Banks and Financial Institutions

Course No(s) FIN ZG513/PDFI ZG559
Credit Units 4
Credit Model
Content Authors SURENDRA AGARWAL
Course Objectives
No
CO1 Gain basic understanding of the underlying concepts and building blocks related
to the banking and financial services.
CO2 Synthesize and apply financial concepts learned in previous finance courses to
the area of banking and financial services.
CO3 Broad understanding of how banks and financial institutions operate

domestically and globally and develop a quantitative and qualitative
understanding of bank management and how decisions are made.
CO4 Apply management principles and financial techniques to effectively address

difficult issues and challenges in banking such as risk management, regulation,
technology, and competition.
Text Book(s)
T1 Bank management & Financial Services by Peter Rose and Sylvia Hudgins, Eighth Edition,
published by McGraw Hill Education
Reference Book(s) & other resources
R1 “Management of Banking and Financial Services” by Padmalatha Suresh

and Justin Paul, Fourth Edition, Pearson
R2 “Too big to fail “ by Andrew Ross Sorkin, Penguin Book Business

Content Structure
1. Introduction to the Banking and Financial Services

1.1. An Overview of the Changing Financial-Services Sector
1.2. The Impact of Government Policy and Regulation on the Financial-Services
Industry
1.3. The Organization and Structure of Banking and the Financial-Services
Industry
1.4. Establishing New Banks, Branches, ATMs, Telephone Services, and Web
Sites
2. Financial Statements and Financial-Firm Performance
2.1. The Financial Statements of Banks and Their Principal Competitors
2.2. Measuring and Evaluating the Performance of Banks and Their Principal
Competitors
3. Tools for Managing and Hedging Against Risk
3.1. Risk Management for Changing Interest Rates: Asset-Liability Management and
Duration Techniques
3.2. Risk Management: Financial Futures, Options, Swaps, and Other Hedging Tools
3.3. Risk Management: Asset-Backed Securities, Loan Sales, Credit Standbys, and Credit
Derivatives
4. Managing Investment Portfolios and Liquidity Positions for Financial Firms
4.1. The Investment Function in Financial-Services Management
4.2. Liquidity and Reserves Management: Strategies and Policies
5. Managing Sources of Funds for a Financial Firm
5.1. Managing and Pricing Deposit Services
5.2. Managing Non deposit Liabilities
5.3. Investment Banking, Insurance, and Other Sources of Fee Income
5.4. The Management of Capital

6. Providing Loans to Businesses and Consumers
6.1. Lending Policies and Procedures: Managing Credit Risk
6.2. Lending to Business Firms and Pricing Business Loans
6.3. Consumer Loans, Credit Cards, and Real Estate Lending
7. Managing the Future in a Global Marketplace
7.1. Acquisitions and Mergers in Financial-Services Management
7.2. International Banking and the Future of Banking and Financial Services
Learning Outcomes:
No Learning Outcomes
LO1 To learn the many roles and responsibilities of financial services in the economy.
To grasp the importance and implications of the regulatory environment provided
by domestic and global governments and regulatory institutions.
LO2 To understand the different types of organizations used in the banking and
financial service industries and the competition that is involved. To explore how
banks are licensed or chartered by state and federal authorities.
LO3 To delve into bank financial statements and how those statements are used by
managers in determining bank performance. To analyze varying tools applied to
the financial statements used by bank management and the public to uncover
inside problems (such as NPA’s) and how to deal with those problems.
LO4 To understand the options that bankers have with regards to dealing with risk.
Understand the major risks faced by banks and how banks mitigate the risk with
acceptable assets and other techniques.
LO5 To examine how financial futures, options and swap contracts can be used to
address risk and minimize bank losses in a changing market.
LO6 To understand the management and pricing of deposit services and non-deposit
liabilities.
LO7 To discover the importance of equity capital to a bank’s health. Also understand
the evolution and implications of Basel regulations, including Basel I, II, III, and
how they impact domestic banks and financial institutions.
LO8 To gain a broad understanding of the different types of international financial
institutions and the services they provide.
Experiential Learning Components:
1. This course will feature experiential learning components in the form of projects and
assignments (such as case studies, financial modeling, simulation, etc.) that are designed to
enable the participants to learn by doing. This will also form part of the Evaluation
Components for the course.
2. Please note that experiential learning components are integrated into the following
modules:
Module Topic Experiential Learning Component

Financial Statements
Analysis and
Module 2 Excel based analysis
Profitability Analysis
(for selected Banks)
Futures, Options,
Swaps
Module 3 Risk Management Excel based analysis
Lending decision
analysis
Bank Management
project – details will Student Assignment or Case Study
Overall
be shared in due on Bank Management – 15 marks
course
3. We will be building financial models and doing simulation using Microsoft Excel,
hence students will need a laptop/ PC preloaded with Microsoft Excel 2010 (or later) for
facilitating experiential learning.
4. For doing financial calculations it is recommended that students purchase/ obtain a

financial calculator. We recommend the Texas Instruments BA II plus calculator because it is
very intuitive/ easy to operate and also because it is economical to purchase. This calculator
comes in two versions, basic and professional. The basic version is sufficient for our course
work and indeed even for professional exams such as CFA/ FRM. If you do not wish to
purchase a financial calculator then you may fall back on any basic/ standard/ scientific
calculator. If you do buy the financial calculator make sure you become familiar with its
operation and practice throughout the course and not just before the exam.
Part B: Learning Plan
Academic Term Second Semester 2020-2021

Course Title Management of Banks and Financial Institutions
Course No FIN ZG513/PDFI ZG559
Lead Instructor SURENDRA AGARWAL
Contact Hours 1 and 2
Type Content Topic Title Study/HW Resource
Ref. Reference
Pre CH 1.1 Review Course Handout/ List your

expectations from this course
During 1.1 Overview of Banks and the Chapter 1 of text (T1)

CH Financial-Services Sector
Post 1.1 Review reference chapters from Chapter 1 of text (T1)

CH textbook; do the assigned
homework/ experiential learning
activities

Ref. Reference
Pre CH 1.2 Review previous week's topics. Notes/ Slides
During 1.2 The Impact of Government Policy Chapter 2 of text (T1)

CH and Regulation on the Financial-
Services Industry
Post CH 1.2 Review reference chapters from Chapter 2 of text (T1)

textbook; do the assigned
activities
Contact Hour 5
Ref. Reference
During 1.3 The Organization and Structure of Chapter 3 of text (T1)

CH Banking and the Financial-Services
Industry

activities
Contact Hour 6
Ref. Reference
During 1.4 Establishing New Banks, Branches, Chapter 4 of text

CH ATMs, Telephone Services, and (T1)
Web Sites
Post 1.4 Review reference chapters from Chapter 4 of text

CH textbook; do the assigned (T1)
activities

Ref. Reference
During 2.1 The Financial Statements of Banks and Chapter 5 of text (T1)
CH Their Principal Competitors

activities

Ref. Reference
During 2.2 Measuring and Evaluating the Chapter 6 of text (T1)

CH Performance of Banks and Their
Principal Competitors
Post CH 2.2 Review reference chapters from Chapter 6 of text (T1)

textbook; do the assigned
activities

Ref. Reference
During 3.1 Risk Management for Changing Interest Chapter 7 of text (T1)
CH Rates: Asset-Liability Management and
Duration Techniques

activities

Ref. Reference
Pre CH 3.2 Review previous week's Notes/ Slides

topics.
During 3.2 Risk Management: Financial Chapter 8 of text (T1)

CH Futures, Options, Swaps, and
Other Hedging Tools
Post 3.2 Review reference chapters Chapter 8 of text (T1)

CH from textbook; do the
assigned homework/
experiential learning
activities

Ref. Reference

topics.
During 3.3 Risk Management: Asset- Chapter 9 of text (T1)

CH Backed Securities, Loan
Sales, Credit Standbys, and
Credit Derivatives
Post CH 3.3 Review reference chapters Chapter 9 of text (T1)

from textbook; do the
assigned homework/
activities
Contact Hour 17
Ref. Reference

topics.
During 4.1 The Investment Function in Chapter 10 of text (T1)

CH Financial-Services Management

assigned homework/
activities

Ref. Reference
During 4.2 Liquidity and Reserves Chapter 11 of text (T1)

CH Management: Strategies and
Policies

assigned homework/
activities
Contact Hour 20
Ref. Reference

topics.
During 5.1 Managing and Pricing Deposit Chapter 12 of text (T1)

CH Services

assigned homework/
activities
Contact Hour 21
Ref. Reference

topics.
During 5.2 Managing Non deposit Liabilities Chapter 13 of text (T1)

CH

assigned homework/
activities
Contact Hour 22
Ref. Reference

topics.
During 5.3 Investment Banking, Insurance, Chapter 14 of text (T1)

CH and Other Sources of Fee Income

assigned homework/
activities

Ref. Reference

topics.
During 5.5 The Management of Chapter 15 of text (T1)

CH Capital

assigned homework/
activities

Ref. Reference
topics.
During 6.1 Lending Policies and Procedures: Chapter 16 of text (T1)

CH Managing Credit Risk

assigned homework/
activities

Ref. Reference

topics.
During 6.2 Lending to Business Firms and Chapter 17 of text (T1)

CH Pricing Business Loans

from textbook

Ref. Reference

topics.
During 6.3 Consumer Loans, Credit Cards, Chapter 18 of text (T1)

CH and Real Estate Lending

assigned homework/
activities
Contact Hour 31
Ref. Reference

topics.
During 7.1 Acquisitions and Mergers in Chapter 19 of text (T1)
CH Financial-Services Management

assigned homework/
activities
Contact Hour 32
Ref. Reference

topics.
During 7.2 International Banking and the Chapter 20 of text (T1)

CH Future of Banking and Financial
Services

assigned homework/
activities
Evaluation Scheme:
Legend: EC = Evaluation Component; AN = After Noon Session; FN = Fore Noon Session
No Name Type Duratio Weight Day, Date, Session, Time
n
EC-1 Quiz-I Online - 5% February 1-15, 2021
Quiz-II Online 5% March 1-15, 2021
Experiential Case 15%
Learning Study April 1-15, 2021
Assignments
EC-2 Mid-Semester Test Closed 2 hours 30% Saturday, 06/03/2021 (AN)
Book 2 PM – 4 PM
EC-3 Comprehensive Open 3 hours 45% Saturday, 01/05/2021 (AN)
Exam Book 2 PM – 5 PM
Experiential Learning: Students will be required to study and analyse a few case studies related to
the banking and financial institutions and present and submit their analysis. They shall be assessed on
the basis of ability to relate with the contemporary trends and the cognitive knowhow imparted by the
instructor in the classroom.
Notes:
Syllabus for Mid-Semester Test (Closed Book): Topics in Session Nos. 1 to 16 (contact
hours)
Syllabus for Comprehensive Exam (Open Book): All topics (Session Nos. 1 to 32) (contact
hours)
Important links and information:

Elearn portal: https://elearn.bits-pilani.ac.in
Students are expected to visit the Elearn portal on a regular basis and stay up to date with the
latest announcements and deadlines.
Contact sessions: Students should attend the online lectures as per the schedule provided on
the Elearn portal.
Evaluation Guidelines:
1. EC-1 consists of 2 assignments and three quizzes. Students will attempt them through
the course pages on the Elearn portal. Announcements will be made on the portal, in a
timely manner.
2. For Closed Book tests: No books or reference material of any kind will be permitted.
3. For Open Book exams: Use of books and any printed / written reference material
(filed or bound) is permitted. However, loose sheets of paper will not be allowed. Use
of calculators is permitted in all exams. Laptops/Mobiles of any kind are not allowed.
Exchange of any material is not allowed.
4. If a student is unable to appear for the Regular Test/Exam due to genuine exigencies,
the student should follow the procedure to apply for the Make-Up Test/Exam which
will be made available on the Elearn portal. The Make-Up Test/Exam will be
conducted only at selected exam centres on the dates to be announced later.
It shall be the responsibility of the individual student to be regular in maintaining the self
study schedule as given in the course handout, attend the online lectures, and take all the
prescribed evaluation components such as Assignment/Quiz, Mid-Semester Test and
Comprehensive Exam according to the evaluation scheme provided in the handout.

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BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE, PILANI

WORK INTEGRATED LEARNING PROGRAMMES

Course Title Management of Banks and Financial Institutions

CO3 Broad understanding of how banks and financial institutions operate

CO4 Apply management principles and financial techniques to effectively address

Reference Book(s) & other resources

R1 “Management of Banking and Financial Services” by Padmalatha Suresh

R2 “Too big to fail “ by Andrew Ross Sorkin, Penguin Book Business

1. Introduction to the Banking and Financial Services

2. Financial Statements and Financial-Firm Performance

2.1. The Financial Statements of Banks and Their Principal Competitors

3. Tools for Managing and Hedging Against Risk

4. Managing Investment Portfolios and Liquidity Positions for Financial Firms

4.1. The Investment Function in Financial-Services Management

4.2. Liquidity and Reserves Management: Strategies and Policies

5. Managing Sources of Funds for a Financial Firm

5.1. Managing and Pricing Deposit Services

5.2. Managing Non deposit Liabilities

5.3. Investment Banking, Insurance, and Other Sources of Fee Income

5.4. The Management of Capital

6.1. Lending Policies and Procedures: Managing Credit Risk

6.2. Lending to Business Firms and Pricing Business Loans

6.3. Consumer Loans, Credit Cards, and Real Estate Lending

7. Managing the Future in a Global Marketplace

7.1. Acquisitions and Mergers in Financial-Services Management

Experiential Learning Components:

Module Topic Experiential Learning Component

4. For doing financial calculations it is recommended that students purchase/ obtain a

Part B: Learning Plan

Academic Term Second Semester 2020-2021

Pre CH 1.1 Review Course Handout/ List your

During 1.1 Overview of Banks and the Chapter 1 of text (T1)

Post 1.1 Review reference chapters from Chapter 1 of text (T1)

Contact Hours 3 and 4

Pre CH 1.2 Review previous week's topics. Notes/ Slides

During 1.2 The Impact of Government Policy Chapter 2 of text (T1)

Post CH 1.2 Review reference chapters from Chapter 2 of text (T1)

Pre CH 1.3 Review previous week's topics. Notes/ Slides

During 1.3 The Organization and Structure of Chapter 3 of text (T1)

Post 1.3 Review reference chapters from Chapter 3 of text (T1)

Pre CH 1.4 Review previous week's topics. Notes/ Slides

During 1.4 Establishing New Banks, Branches, Chapter 4 of text

Post 1.4 Review reference chapters from Chapter 4 of text

Contact Hours 7 and 8

Pre CH 2.1 Review previous week's topics. Notes/ Slides

Post 2.1 Review reference chapters from Chapter 5 of text (T1)

Contact Hours 9 and 10

Pre CH 2.2 Review previous week's topics. Notes/ Slides

During 2.2 Measuring and Evaluating the Chapter 6 of text (T1)

Post CH 2.2 Review reference chapters from Chapter 6 of text (T1)

Contact Hours 11 and 12

Pre CH 3.1 Review previous week's topics. Notes/ Slides

Post 3.1 Review reference chapters from Chapter 7 of text (T1)

Contact Hours 13 and 14

Pre CH 3.2 Review previous week's Notes/ Slides

During 3.2 Risk Management: Financial Chapter 8 of text (T1)

Post 3.2 Review reference chapters Chapter 8 of text (T1)