BANKING AND FINANCIAL INSTITUTIONS

Course Code: BBAFN 30602 Credit Units: 04

Course Objective:
The aim of the course is to orient the finance students to the change in the banking industry. The
financial industry much like the computer industry is changing rapidly. The students will be familiarized
with institutions of today and developing an understanding why they are the way they are, and why they
are changing is the core aim of the course. An Indian perspective will be added but conceptually the
Global frameworks will be used.
Course Contents:
Module I: Introduction
Money, Process of Capital Formation., Banking and Financial Institutions and economic development, Role of
Development Banks in Industrial Financing.
Module II: Banking System & Operations.
Banking system and structure in India- Types of banks in operation and their functions, Retail and Wholesale
Banking, Near Banks, Rural Banking. Cooperative Banking. Universal Banking, NBFCs-
International Banking- financing exporters and importers Important ECGC Policies and guarantees governing
export financing) Banking Operation: An overview Principles of Lending, Study of Borrowers & Project Evaluation
Criteria
Module III: Banking Sector Reforms
Provisions of Banking Regulation Act, Prudential Norms - Narsimhan Committee Recommendations, Regulatory
Institutions RBI & SEBI, Basle Committee Recommendations, Asset Liability Management in Commercial Banks.
Module IV: Insurance Institutions
Introduction to Insurance Elements of Insurance Risk, Principles of Insurance, Types of Insurance Life
Insurance and General Insurance Products including unit linked plans, Re-insurance, Bancassurance- concepts,
critical issues & functional aspects. Role of Insurance companies in Industrial Financing.
Module V: Financial Inclusion
Concept, Financial Inclusion in India: Challenges, Scope of Financial Inclusion in banking activities & financial
services.
Micro Finance as a tool of Financial inclusion: Evolution: Grameen Model, Self Help groups.
Progress in India, Principles of microfinance- institutional structures and delivery mechanisms. Enforcement and
savings

Module V: Trends in Banking
Banking Innovations. Marketing of banking services.; Banking Technology - Internet banking, ATMs, mobile
banking; Banking Technology - ECS, debit, credit and smart cards
Securitization (SARFAECI Act, SPV, ARC)
Examination Scheme:
Text & References:
Text:
Khan,M. 3rd Reprint, 1998, Financial Institutions and Markets, Tata McGraw Hill Publishing Company Limited.
References:
Cornett and Sauunders, 1999, Fundamentals of Financial Institutions Management, 1999 McGraw Hill
Publishing Company Limited.
Bhole L.M., Third Edition, Financial Institutions and Markets; Structure, Growth and Innovations, Third
Edition. Tata McGraw Hill Publishing Company Limited.
Patahak.V Bharati Second Edition, The Indian Financial System Pearson Education

Components
P-1 C-1 CT-1 Attendance EE1
Weightage (%) 10 5 10 5 70