Maharishi Markandeshwar Institute of Management

MBA 3rd Semester

Total Credits: 3
Lectures/ Tutorial per week : 3/0
Evaluation:
External: 60, Internal: 40

MBFI-03: Management of Financial Institutions and Services

Objective: This course is to familiarize the students with the basic concepts of financial services,
its scope and application. Concepts of NBFC, Financial Institutions and various financial
services will be discussed in detail.

Unit I
Introduction to Financial System: Constituents and Functioning; Various Financial
Intermediaries and their role in financial system, Banking Industry in India, constituents, RBI –
Role and functions, Determination of commercial interest rates: fixed and floating, Emergence of
Repo rate as the benchmarks rate in the short term-Floating and fixed rates of interest.

Unit II
Management of capital funds- capital adequacy norms, Liquidity Management, Asset Liability
Management - Gap analysis, Management of Non- performing assets, Securitization: concept,
nature, scope and their implications. Management of Non-Banking Financial Institutions: Types,
Functions and RBI Guidelines

Unit III
Overview of Financial Services: nature, scope and importance etc. Credit Rating: Meaning and
Types and Benefits, Credit Rating Agencies; Objectives and Functions, Plastic Money,
Factoring, Venture Capital.

Unit IV
Leasing Parties involved, Types of lease and their implications, Hire purchase and lease -
differences and implications for the business. Introduction to Insurance, Types, Mathematical
Basis, Principles of Contract of Insurance, Insurance Documents, IRDA, Mutual Funds-
Introduction, Types and working.

Note: Case Studies and current/ latest trends to be compulsorily included in the above said
curriculum with minimum of 1 case per Unit.

Course Outcomes:
MBFI-03.1 Introduction to the Indian Financial System.
MBFI-03.2 Understanding the management of Capital Funds along with the Securitization.
MBFI-03.3 Introduction to various Finncial Services including Credit Rating, Venture Capital etc.
MBFI-03.4 Understanding Leasing & Insurance as the Financial Services.
SUGGESTED READINGS:

1. Fabozzi - Foundations of Financial Markets and Institutions (Pearson Education, 3rd Ed.)
2. Khan M Y - Financial Services (Tata Mc Graw Hill, 1998)
3. Machiraju H R - Indian Financial System (Vikas, 2004)
4. Bhole L M - Financial Institutions and Markets (Tata McGraw-Hill, 3rd edition, 2003)
5. Srivastava ,R.M & Nigam Divya - Management of Financial Institutions (Himalaya,
2003)
6. Gurusamy R - Financial Services & Markets (Thomson, 1st Ed.)