Course Outline

Programme: PGDM (FMG-30, IMG-15 & FM-04 & BDA-02)

Name of the Course: Commercial Banking Practices and Treasury Management Credit: 3.0
Term: 4 Academic Year: 2022-23
Faculty: Prof Vandana Gupta Office Contact No.: 581
Email: vandana.gupta@fsm.ac.in
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Introduction:

The course has been designed to impart the subject through an analysis of the functioning of commercial banks.
Course adopts a strategic approach to the issues of structure, regulation, policy- formulation and implementation
techniques in the present day banking scenario. Coverage is given to the areas of bank financial performance,
retail banking, corporate banking, bank treasury, innovations in banking products and technology, asset-liability
management and strategic planning.

Objective:

 To give an insight into the strategic, managerial, regulatory and operating issues facing commercial
banks.
 To study the impact of changes that is taking place globally upon the structure and operations of banking
companies.
 To develop skills among the students to enable them to identify, evaluate and apply knowledge acquired
in an integrated manner within the overall corporate strategy and day-to-day functioning of the banking
companies.

Text Book:

Management of Banking and Financial Services Padmalatha Suresh, Justin Paul Pearson 4th edition

Reference Books:
 Huge Croxford, Frank Abramson and Alex Jablonowski, “The Art of Better Retail Banking”, John Wiley
& Sons Ltd, 2005
 Brian Coyle, “Bank Finance”, Financial World Publishing, 2002
 T R Ramamurthy, “How to Borrow from Banks and Financial Institutions”, Bharat Law House Pvt. Ltd,
2006

Pedagogy :

A mix of lectures, case studies, presentations by the students, group assignments, projects, quizzes etc.

Evaluation Component and weightage:

Quizzes and/or Assignments : 10 %

Class Presentation & Case Analysis : 10 %
Term End Paper/Project : 20 %
Mid Term : 20 %
End Term : 40 %
________
Total 100 Marks
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Session Plan:

Session Session Theme Additional Readings/Cases Questions to

No. explore/Learning outcome
1-2 Fundamentals of banking  Ch. 1 & Handouts  (i) Why banks exist and
 Indian and global banking the key roles banks play in
systems an economy? (ii) How do
 Value chain in banking banks create Credit?
 Banking business lines  Students will gain an
Developing and insight into the banking
understanding business business lines and banking
strategy/business model of business models.
commercial banks
3-5 The Financial Statements of  Ch. 3,4 and 5 & Handouts  Students will learn how
a Bank Readings: bank’s financial
 Framework for analysis of Latest Annual Report of a Bank statements differ from that
bank’s financial and its analysis of manufacturing
statements companies, bank specific
 Bank balance sheet financial ratios and
management framework for measuring,
 Measuring and evaluating evaluating and improving
bank performance. the bank performance
Banking ratios.
6-7 Introduction to the  Ch.11, Handouts  Students will understand
Regulatory aspects of the the regulatory framework
banks and impact of BASEL
norms on the banking
 Introducing Basel norms companies in India
and Basel framework  Students will understand
 Computation of CAR and the impact of capital
RWA adequacy ratio, risk
weightage assets and
transition across the Basel
norms
8-9 Corporate banking Chapters 5,6 and 7  Students will gain an in-
 Economics of corporate Case Analysis: Application of depth understanding of the
banking C’s of Lending (i) economics of corporate
 Evaluating the loan  Case study of Dreuters banking; (ii) types of
application to sanction of lending services and (iii)
loan lending process and credit
risk assessment
techniques used by
banking companies
10 Loan Pricing Chapter 5  Students will be equipped
 Different pricing Numericals and Handouts to understand how loan
techniques for loans pricing is done by
to corporates including different
 RAROC concepts components of risk
11-12 Retail Banking Chapter 13  Students will gain insight
Types of retail lending Evaluating the retail products into retail lending process,
functions for their credit risk and credit evaluation of
understanding the nuances different retail products
Case Analysis: Evaluation of
retail loan applications using
 credit scoring model and six
“C” criteria

Case study on retail lending

13 Payment Services  Ch. 14, 16, Handouts  Students will understand
Management the payment system,
 Exercise on Cash payment infrastructure,
management services payment instruments and
functioning of clearing
and settlement system and
cash management services
offered by banking
companies.
14-15 Trade credit and working Handouts and notes  Students will understand
capital To introduce letter of credit the types of working
financing mechanisms capital instruments, banks
including distinctions between assessment of working
sight versus. time drafts, capital limits and factors
creation of banker’s acceptance that banks consider in
Analyze case of LP granting working capital
Laboratories for granting limits
for working capital

16-17- Treasury Management:  Ch. 12, Handouts and notes  Highlighting the role of
18 Treasury functions in  Exercises and role play on Investment and treasury
banking, liquidity and working of call money department in banking
reserve management market and asset-liability companies.
strategies, asset-liability Game  Understanding how the
management techniques banks raise and deploy
funds and manage asset-
liability mismatches.
19 Micro finance  Notes and handouts Sensitizing the students
about the role, importance
and revenue model of
micro-finance
20 Project Presentations
Chapter (Ch.) numbers pertain to the text book.

For official use: -

As Benchmarked with course content in previous year, the contents of this course: (Please mark the right
option below)
(a) Is totally new
(b) Has not changed at all
(c) Has undergone less than/equal to 20% change  _
_
(d) Has undergone more than 20% change
_
/
Faculty – Prof. Vandana Gupta Area Chair – Prof. Vandana Gupta

Manager (Academics-1) Dean (Academics)