BBA (Finance Domain): Commercial Banking and ALM

Teacher

Prof Anil Kumar J

Category

Core Courses Elective Course

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Commercial Banking and ALM

Code: CUTM1227

Credit: 4+0+2

Course Objective

  • To gain knowledge on the functioning of a commercial bank, various products and services offered by commercial banks, as well as various risks faced by banks.
  • To facilitate the different techniques for analysing bank performance and evaluating banking stocks.
  • To understand the techniques of asset and liability management at a bank.

Course Outcome (Mapped with Programme Outcome)

# Course Outcome Programme Outcome Mapping
CO1 Utilise a thorough comprehension of banking operations and risk management principles in making informed financial decisions. PO1, PO5
CO2 Attain expertise in evaluating and appraising credit risk within loan applications to facilitate the process of granting loans. PO2, PO5
CO3 Read, interpret, and analyze financial statements within the banking industry to evaluate the financial performance and position of a company. PO3, PO9
CO4 Evaluate the performance of banks and assess the value of banking stocks. PO6, PO9
CO5 Analyse asset and liability management (ALM) and employ diverse techniques of asset and liability management to ensure the smooth operation of the bank. PO2, PO9

Session Plan

Session I

Indian Banking System Banks: Meaning, nature, and Characteristics of the Indian banking system

Banking Explained

https://www.youtube.com/watch?v=aJJoV0xSDqA

Indian Banking System

https://www.youtube.com/watch?v=Qh-hrnH8Pq8

Session II

Functions of commercial banks – primary functions; secondary functions; agency functions and general utility functions

Commercial Banks-Meaning and Functions
https://www.youtube.com/watch?v=wlsOeE346SI

Session III

The structure of the banking sector in India and the role of banks in the development of the economy

Role of Commercial Banks in Economic Development

https://www.youtube.com/watch?v=ikOHymaay8Y

Session IV

Reserve Bank of India, Bank Regulatory Environment.

Functions of RBI
https://www.youtube.com/watch?v=Bqyek4dnycM

Session V

Products and Services Provided by Commercial Banks. Type of Deposit Account: Types of deposits.

Banking Products
https://www.youtube.com/watch?v=Ods6vBB7X7w

Session VI

Process of opening bank accounts, pay-in-slip, cheque book, passbooks, ATM-cum-debit card.

Account Opening Process

https://www.youtube.com/watch?v=VAUuYRxFFS0

Pay-in Slip

https://www.youtube.com/watch?v=0-vrHEtQC64

Cheque

https://www.youtube.com/watch?v=JTX3it0lnjw

ATM-cum-Debit Card

https://www.youtube.com/watch?v=nfQNX1gRDJk

Session VII

Credit Card, advantages of bank account, Loan and Advances: Introduction, classification of loans.

Credit Cards

https://www.youtube.com/watch?v=cYMeZs_EcqE

Basics of Loans and Advances

https://www.youtube.com/watch?v=sJuo-h6nQgI

Types of Loans and Advances

https://www.youtube.com/watch?v=xqSQpIltu-U

Session VIII

Principles of good lending and loan procedures followed by banks.

Principles of Lending

https://www.youtube.com/watch?v=2_TrWGSvJbg

Session IX

Evaluating consumer and commercial loans; core banking solution

Consumer Loans

https://www.youtube.com/watch?v=xpvYhBFHD4s

Commercial Loans

https://www.youtube.com/watch?v=SulpxqBYams

Session X

Capital Adequacy, Non-Performing Assets.

Capital Adequacy Ratio

https://www.youtube.com/watch?v=-y6NSF6cers

Non-performing Assets

https://www.youtube.com/watch?v=G3E6z-w7hzc

Session XI

Bank Performance and Evaluation Financial statements of commercial banks

Session XII

Evaluation of bank performance measures, and valuation of bank stocks.

Session XIII

Liquidity Management, Liabilities Management

Session XIV

Liquidity Management, Liabilities Management

Session XV

Capital Management and Management of Off-Balance Sheet Activities.

Session XVI

Asset and Liability Management: An Overview of Asset and Liability Management (ALM)

Session XVII

Risk in Bank: Credit risk, Interest rate risk

Session XVIII

Market risk, operational risk, liquidity risk

Session XIX

Solvency risk, legal risk

Session XX

Techniques of Asset and Liability Management: Liquidity Gap analysis

Session XXI

Sensitivity analysis

Session XXII

Duration analysis and use of derivatives in ALM

Text Books

  • Banking Theory and Practice by K.C. Shekhar and Lekshmy Shekar: Vikas Publishing House (P) Ltd., 21st Edition 2013.
  • Risk Management In Indian Banks by Dr. K.M. Bhattacharya: Himalaya Publishing House Pvt. Ltd.

Reference Books

  • Banking Theory And Practice by E. Gordon and Dr. K. Natarajan: Himalaya Publishing House Pvt. Ltd.
  • Risk Management in Banking by Joel Bessis: John Wiley & Sons- Fourth Edition
  • Risk Management (CAIIB 2018) by the Indian Institute of Banking & Finance (IIBF): Macmillan Education.

Class Notes

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Prof Anil Kumar J

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Working as an Associate Professor (Finance) in the School of Management, Centurion University, and Management, Bhubaneswar. Completed MBA from Kanchipuram University in 1998 with specialization in Finance and done Ph.D. entitled “The Impact of Inflation on Business Performance under Conditions of Limited Financial Disclosure: Case of Firms Operating in India”. Have 15 years of teaching […]