Course Details
Subject {L-T-P / C} : SM6131 : Commercial Banking { 3-0-0 / 3}
Subject Nature : Theory
Coordinator : Prof. Shigufta Hena Uzma
Syllabus
Overview of Banking: Evolution of Commercial Banking, Customers ‘Deposit Accounts, Risk Profile of
Financial Systems, Banking Instruments, Basics of Lending and Credit Management, Banking Law
Cases, Cash Management, Business Risk and Profitability Planning, Branch Banking, International
Banking and Country Risk Assessment, Development Banking, Banking Sector Reforms, Introduction
to International Banking. Management of Banking Companies: Scheduled and Non – Scheduled
Banks – Origin and Development, Evaluation and Growth of Banking System in India –
Recommendations of Narasimham Committee, Role of Central bank, Banker-Customer Relationship:
Debtor-Creditor Relationship, Bank as a Trustee, Anti-Money Laundering, Deposit Products or
Services, Payment and Collection of Cheques and other Negotiable Instruments. Liquidity
Management: Liquidity–Sources–Measurement Liquidity/Profitability Problem, Theories of Liquidity
Management, Priorities in the Employment of Bank Funds, Problem of Resource Allocation in Indian
Commercial Banks. Capital Adequacy in Bank: Functions of Capital Funds in Commercial Banks –
Capital Adequacy, Basle Norms on Capital Adequacy, Capital Adequacy Norms in Indian Commercial
Banks, Present Position of Capital Adequacy in Indian Commercial Banks. Significance of Investment
Management in Commercial Banks: Fundamental Principles of Security Investment by Commercial
Bank, Management of Security Investment, Reviewing Investment Portfolio, Organization of
Investment Function. ALM & NPA in Banks: Concept of ALM – Objectives – Functions – Process,
Measurement and Management of Risks-Concept of NPAs, NPAs in Indian Commercial Banks,
Prudential Norms, Bank Marketing, Formulating and Implementing Marketing, Relationship Banking,
Fundamentals of Formulating Relationship Banking Strategy.
Course Objectives
- This course focuses on the management of Commercial Banks and their role in the <br />functioning of our economy and financial system.
- To understand the types and functions of commercial banking
- The paper will impart knowledge of various functional areas and risk management in banking sectors.
- To access the legal and regulatory environment under the preview of commercial banking.
Course Outcomes
The paper will impart knowledge of various functional areas and risk management in banking <br />sectors. This course focuses on the management of Commercial Banks and their role in the <br />functioning of our economy and financial system.
Essential Reading
- Reed, E., Cotter R., Gill E., & Smith R., Commercial Banking, Prentice Hall.
- Khubchandani, B. S., Practice and Law of Banking., Macmillan Education.
Supplementary Reading
- Koch, T. W. and MacDonald, S. S., Management of Banking, Thomson South Western.
- Srivastava, R. M., & Nigam, D., Management of Indian Financial Institutions (9thed.)., Himalaya Publishing House.