Mangalmay Institute of Management & Technology

Mangalmay

Institute

Of

Management &

Technology,
Greater Noida

Management of Financial
Institutions and services
MBA-4 th Semester
2010-2011

POONAM

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MBA 2 nd Year – IV th Semester, 2010-2011

Management of Financial Institutions and services
Subject Code: MBA 03

Subject Description:

This course is designed as an experiential learning activity and enables students to

practice such activities as:

• To give an insight into major decisions taken in banking today;

• To provide with an overview of how different areas of the business interact
to produce overall business and financial performance;
• To provide with an understanding of the overall strategy of their financial
institution.
• Students get familiar with the complexity of managing a financial
Institution

• To give them knowledge about the major risks faced by financial institutions
today
• Recent changes took place within the financial services industry.

Goals:

• To enable the students to develop the competency to understand and

take decision while working in Financial Institutions and service .

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Course Objective:

The course is designed to assist students understand and appreciate the

conceptual, strategic, and risk management issues involved in managing financial
institutions and understand the impact of interactions of business areas on
financial performance

Contents:

** To equip the requisite knowledge and skills in following activities :

• Liquidity Risk management;

• Interest Rate Risk management;
• Capital Account management;
• Credit Risk management;
• Financial Derivatives (hedging instruments);
• Private Banking activities;
• Investment Banking activities;
• Distribution Channels;
• Off-Balance sheet activities.
•

** To enable them to take decisions for their Financial needs through Financial
Institutions

** To help them in experiencing and measuring both the immediate and long-term
effects of their decisions in order to gain an overview on how different decisions
operate in relation to each other.

** To enable them to manage a portfolio of loans and securities, ensure that their
Financial Institutions the capital adequacy requirements and that it manages

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liquidity well. All this whilst monitoring various risks in an environment

characterised by volatile interest rates .

COURSE SYLLABUS

Unit I

Financial System and

market

Constituents and function

RBI_ role and Functions

RBI- Regulation of money

and Credit

Monetary and fiscal

policies

Techniques of
regulations and rates

Review of foreign
Exchange Market

Financial Sector reforms

in India

Overview of Financial
Services - Nature

Financial services - scope

and importance

Unit II

Banking Industry in India

Constituents of Banking
Industry

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Banking sector reforms

Determination of
commercial interest rates
–

Fixed

Floating

Management of capital
funds

Capital Adequacy norms

Liquidity Management

Assets & Liability

management - Gap
analysis

Management of Non-
performing Assets

Strategies for making

Commercial Banks viable

Unit III

Securitisation : Concept ,
Nature

Securitisation : Scope and

their implications

Securitisation :of Auto

loans And Housing Loans

Securitisation in India:
DFIs in India

IDBI , ICICI , FCI ,

NABARD , RRBs

State level Institutions

:NBFCs : Their status &
types

Working and strategies

for commercial viability

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Insurance and mutual

Fund organizations

Status & types of above

Ins. And MF org.

Working and strategies

for commercial viabilty

Unit IV

Leasing & Hire Purchase

Industries : Size and
scope

Parties involved in it

Valuation of lease
transaction

Types of lease and their

implications

Hire – Purchase and

Lease : Differences and
implications for Business

Other Financial services :

Factoring

Forfeiting , Discounting
and Re-Discounting of
bills

Consumer credit and

Plastic money

Concept , working of
each

Uses of each

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Pedagogy:

Methods and Tools:

a) Equipments/Software and other teaching aids and tools:

• Laptop, LCD

• OHP

• PowerPoint slides

• White board marker

• News Paper cutting

b) Preferable Method of Teaching:

• Lectures

• Case Study

• Presentation

• Group Discussion

Class Participation

It’s my believe that in addition to class attendance, it is also expected that

students will participate in class discussions. Your contributions to class
discussions, and your absorption and reflection during the interactive components
of the course add to your overall learning as well as to others in the class. The
more you participate, the more you will learn.

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Individual Written Assignments

Opportunities to participate in class assignments are provided. These are activities

completed during class time. These are unscheduled. In-class assignments may
consist of group activities, short writes, and so forth.

Class Group Participation

I will assign one group presentations/discussion to students. Schedule of such

group is given in session schedule. While working in group students will learn

team work approach and co-ordination within team members. All group members

of a group should present themselves on their presentation schedule and every

group members should present their part of the presentation / discussion .

Article:

Articles written by industry professionals or eminent academician play a vital role

in learning new dimensions on various subject topics. It really enhances ones

knowledge and provides insights into the given topic. List of suggested articles for

must read is given in Annexure-3

Case Studies:

Case studies will be performed in group 5-6 individuals. Each group will discuss

case study within the group members and present the case study in the form of

presentation for 10-15 minutes. Listof suggested case studies for must read is

given in Annexure-4

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Evaluation Criteria:

As per UPTU guidelines provided in the syllabus Entrepreneurship Development

will carry maximum marks of 150. Marks bifurcation is below mentioned:

a) End Semester Examinations-ESE: 100 marks

b) Internal Assessment: 50 marks

Internal Assessment will consist of two components:

i. Class Test/Sessional Exams/Cumulative Test (CT): 30

marks

ii. Teacher Assessment (TA): 20 marks

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References:

Text Books:

Fabozzi – Foundation of financial Markets and Instituttions (Pearson Education ,

3rd ed. )

Khan MY – Financial Services (Tata Mc Graw Hill , 1998 )

Machiraju HR - Indian Financial System (Vikas ,2004)

Bhole LM - financial Institutions and Market (Tata Mc Graw Hill , 3 rd Ed. , 2003

) Prasanna Chandra – Fundamentals of Financial Management ( TMH , 20045)

Srivastava , RM & Nigam Divya – Manangement of Financial Institutions

(Himalaya , 2003)

Gurusamy R – financial services & Markets (Thomson , 1 st Ed .)

Newspapers & Magazines:

 The Times of India

 Hindustan Times

 Economic Times

 Business Standard

 Business Line

 Business Today

 Business India

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Session Plan:

Strength Admitted _________ Course : ______________________

Lectur Course to be completed Methodology

e Adopted

UNIT -1 Financial System and Any of the

market mentioned in
-01 Pedagogy

02 Constituents and function ………..Do…….

........

03 RBI_ role and Functions ………..Do……........

.

04 RBI- Regulation of money ………..Do……........

and Credit .

05 Monetary and fiscal ………..Do……........

policies .

06 Techniques of ………..Do……........
regulations and rates .

07 Review of foreign ………..Do……........

Exchange Market .

08 Financial Sector reforms ………..Do……........

in India .

09 Overview of Financial ………..Do……........

Services - Nature .

10 Financial services - scope ………..Do……........

and importance .

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Lectur Course to be completed Methodology

e Adopted

UNIT -1I Banking Industry in India ………..Do……........

.
-11

12 Constituents of Banking ………..Do……........

Industry .

13 Banking sector reforms ………..Do……........

.

14 Determination of ………..Do……........
commercial interest rates .
–

Fixed

Floating

15 Management of capital ………..Do……........

funds .

16 Capital Adequacy norms ………..Do……........

.

17 Liquidity Management ………..Do……........

.

18 Assets & Liability ………..Do……........

management - Gap .
analysis

19 Management of Non- ………..Do……........

performing Assets .

20 Strategies for making ………..Do……........

Commercial Banks viable .

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Lectur Course to be completed Methodology

e Adopted

UNIT-1II Securitisation : Concept , ………..Do……........

Nature .
-21

22 Securitisation : Scope and ………..Do……........

their implications .

23 Securitisation :of Auto ………..Do……........

loans And Housing Loans .

24 Securitisation in India: ………..Do……........

DFIs in India .

25 IDBI , ICICI , FCI , ………..Do……........

NABARD , RRBs .

26 State level Institutions ………..Do……........

:NBFCs : Their status & .
types

27 Working and strategies ………..Do……........

for commercial viability .

28 Insurance and mutual ………..Do……........

Fund organizations .

29 Status & types of above ………..Do……........

Ins. And MF org. .

30 Working and strategies ………..Do……........

for commercial viabilty .

Lectur Course to be completed Methodology

e Adopted

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UNIT-IV Leasing & Hire Purchase ………..Do……........

31 Industries : Size and .
scope

32 Parties involved in it ………..Do……........

.

33 Valuation of lease ………..Do……........

transaction .

34 Types of lease and their ………..Do……........

implications .

35 Hire – Purchase and ………..Do……........

Lease : Differences and .
implications for Business

36 Other Financial services : ………..Do……........

Factoring .

37 Forfeiting , Discounting ………..Do……........

and Re-Discounting of .
bills

38 Consumer credit and ………..Do……........

Plastic money .

39 Concept , working of ………..Do……........

each type of Plastic .
money

40 Uses of each type of ………..Do……........

Plastic money .

ANNEXURE-1: WRIRREN ASSIGNMENT

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GUIDELINES FOR PREPARING WRITTEN ASSIGNMENTS

How to Present?

• Students can submit their assignments in hand written form. Assignments

should not be copied directly from the text books/handouts/batch

mates/internet.

• Assignments cover page must be attached to each assignment.

Submission

• Students are advised to submit his/her assignments within the due date

otherwise it will not be accepted

Evaluation

• Assignments will be evaluated on the basis of content, legibility, ideas and

language (spellings, grammar and structure). Highlighting of key words, use

of graphics and tables and logical progression of the argument in the answer

will be given due weightage.

• Incomplete assignments comprising very brief, sketchy answer or having

illogical answer submitted shall be rejected.

• An assignment once evaluated would not be re-evaluated.

MANAGEMENT OF FINANCIAL INSTITUTIONS AND SERVICES

Subject Code: MBA 03

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Assignment No.: 1

To be submitted in the partial fulfilment of the

Subject “Manangement OF Financial Institutions and Services (MBA 03 ”

Of MBA Programme (2009-2011)

Date of Submission

Submitted To: Submitted By:

Poonam

Faculty

Department of Management

MANGALMAY INSTITUTE OF MANAGEMENT & TECHNOLOGY

GREATER NOIDA

Question for Written Assignment

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ANNEXURE-2 CLASSROOM PRESENTATIONS / DISCUSSION

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Following topics for the classroom presentations are suggested to

students for their better understanding for the subject:

• RBI_ role and Functions

• RBI- Regulation of money and Credit

• Financial Sector reforms in India

• Banking sector reforms

• Management of Non- performing Assets

• Hire – Purchase and Lease : Differences and implications for Business

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ANNEXURE-3: ARTICLES

Following articles are suggested to students for their better

understanding of the subject:

1) Financial System and market

2) Monetary and fiscal policies BY RBI

3) Foreign Exchange Market - Review

4) Overview of Banking Industry in India

5) Capital Adequacy norms in reference to Banks

6) Assets & Liability management - Gap analysis

7) Securitisation of Auto loans And Housing Loans

8) Overview of Insurance and mutual Fund organizations

9) Concept & uses of plastic money

10) Scope of Leasing & Hire Purchase Industries in India

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ANNEXURE-4: CASE STUDIES

Following topics for case studies are suggested to students to be

presented during lectures.

1) Financial Reforms in India

2) Banking Reforms in India

3) Non - Performing assets in reference to bank- effects on Economy

4) Implications of Securitisation of Auto Loans By Banks / FI

5) Implications of Securitisation of Housing Loans By Banks / FI

6) Scope , uses and risk factors of Plastic money in India

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Articles:
To be attached as photocopies as hard copies

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