Overview of Banking

Program Credit : PGPM : 3 Class of Sessions : 2012 : 30

Course Code : SL BK 605

AIM 1. An understanding of the basic concepts and principles of banking. 2. Comprehensive understanding of various banking functions and activities Learning Outcomes 7. Acquire knowledge of concepts relevant to banking 8. Ability to understand statutory and regulatory norms and compliance requirements 9. Ability to Explain the rationale of the functions performed by banks 10. Able to evaluate the lending requirements of retail and commercial business entities 11. Able to assess the amount of credit requirements 12. Demonstrate knowledge of contemporary topics in the area of banking

REFERENCE BOOKS Banking Theory Law and Practice Principles & Practice of Banking Practical Banking Advances Bank Credit Management Banking Principles and Operations Indian Financial System and Commercial Banking Management of Banking & Financial Services

AUTHOR / PUBLICATION Sundaram / Varshney. Sultan Chand and Sons Publisher - 2004 Indian Institute of Bankers- Macmilan Bedi, H.L. / Hardikar, V.K. UBSPD publishers and distributors S.Murali & K.R.Subbakrishna, Himalaya Publishing House, 2008 Edition M.N.Gopinath, Snowwhite Publication, 2010 Edition IIBF, Mc Millan Publications (Latest Edition) Paul, Justin / Suresh, Padmalatha. Pearson 2007 Accounts, Types of Relations, KYC Norms, Banker Customer relationship, Rights and Duties of Banker/ Customer. Sources &Uses of Funds: Bank Balance sheet, Sources & Uses of Funds in a Bank, Form of Balance Sheet of Banking Companies, Different Schedule under Banking Regulation Act.

Detailed Syllabus Indian Banking System: Systems the Functions Intermediaries. The of Financial Financial

The Origin and Growth of Banking: of Banking, Functions of Commercial Banks,, Banking in the New Millennium. Banker Customer Relationship: Types of

Provisions of NI Act: Negotiable InstrumentsBills of Exchange, Cheques, Promissory Notes, Features of negotiability, Validity, Crossing, Endorsement, Specific reference to paying Banker, Collecting Banker- Protection- Penal Provisions for Cheque Returns.

Regulatory requirements in respect of Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Capital Adequacy Requirements (CAR), On site and Off site inspection - Risk based supervision Deposit Management: Importance of Deposit, Types of Deposit in India, USA & Europe. NRI Deposits Cost of Deposit & its impact on Profitability, concepts of Fixed & Floating Rate of Interest, Deposit Insurance. Calculation of Service charges for non maintenance of minimum balance, interest on SB, penalty for premature closure of term deposits, etc. Cheques: Special Features Negotiability, Validity, Crossing & Endorsement Cash Management: Importance of Cash Management issues, Cash at Counter, Vault & Currency Chest. Lending Activities: Lending activity, Basic requirements for lending. Credit Policy: Need for Credit Policy, Components of Credit Policy, Credit Policy Pursued by the Government, Bench Marks Exposure Norms, Credit Culture. Retail Banking: Basics of Retail Banking, Forms of Retail Banking and Emerging issues Corporate Banking: The nature of corporate banking, Developments in corporate banking, Consortium finance, Multiple banking arrangements, and Loan syndication Rural Banking & Micro Finance: Sources of rural finance Regional Rural Banks (RRBs) Service Area Approach (SAA) National Bank for Agriculture and Rural Development (NABARD), MicrofinanceModels of microfinance, Financial Inclusion. Follow up & Recovery: NPAs, Classification, IRAC Norms, SARFAESI Act OVERVIEW ONLY with special reference to Enforcement of Securities Interest. Fee-based Services: Feebased Services

L/C,B/G, Subsidary services, Bancassurance, Demat Account, Safe Deposit Locker , Mutual Funds, E-Banking: Different types of plastic money, Concept of a credit card, Distinction between Credit card, Charge card and Debit card, Mechanics of a credit card transaction, Credit card as an augmented retail financial product, Credit card business in India, The merging scenario - CRM, (AWB, ATM, Mobile Banking Internet Banking) Delivery Channels (Payment & settlement services) , Online Banking, CBS,NEFT, RTGS Banking Regulation Act 1949 Business of banking companies, Management of banks, Restrictions on business, role of RBI, Statutory returns

Recommended Cases Sl 1 Case No. INB005IRC Name of the Case Indian Retail Banking: Attracting more MNC Banks 2 3 INV0003K COT0006 Rural Banking Shifting Paradigm Indian Banking Industry and Bank of Baroda: The Need for Organisational Transformation 4 ECC0026 US Financial Crisis: Is Credit Card Debacle in the making? 5 SEP0003 Micro Finance : A case of Grameen Bank, Bangladesh 6 INA0109 Credit Cards and Business Growth

Suggested Schedule of Sessions Topic Indian Banking System Origin and Growth of Banking Banker Customer Relationship Sources & Uses of funds Regulatory Requirements of CRR, etc Deposit Management NI Act Cash Management Lending Activities Credit Policy Retail Banking Corporate Banking SME Banking Rural Banking & Microfinance and Financial Inclusion Follow-up & Recovery Fee-based services Management of Public issues E Banking Banking Regulation Act 1949 Total No. of Sessions 1 1 2 1 2 3 2 1 2 1 1 1 2 2 2 2 3 1 30