MMS IV Semester

1. COMMERCIAL BANKING
• Concepts and
fundamentals of
Commercial Banking
• Structure and growth of
banking and various
services
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 1

2. SYLLABUS
Content
Introduction to Commercial
Banking
Banking structure, growth/history of Indian banking,
banking sector reforms
Banking Operations Retail liabilities, retails assets, KYC, ALM and preventive
vigilance
Banking products Fund based and fee based, term loan/working capital,
appraisal process
Legal Aspects of Banking Negotiable Instrument Act, Banking Regulation Act and
RBI circulars
Rural Banking India's agrarian sector and banking, regional rural banks,
priority sector and micro-finance differentiated banks,
financial inclusion.
Treasury
Asset Liability Management
Role and functions of integrated treasury
Interest spread, NIM.
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 2

3. SYLLABUS
Content
Study of Bank financial statement Components of Balance Sheet and Profit and Loss
Statement, important ratios of bank performance-
CAMEL framework, composition of items
contributing to net profit
IRAC Norms / NPA Management Reasons, impact on banking performance and
economy, measures taken to minimize NPA.
Risk Management in Banks Credit, market and operational risks.
Capital Adequacy Norms Importance of capital for banks, Basel I/II/III and
CAR.
Regulatory Role of RBI
Retail banking products
Functions of RBI, role of monetary
policy, prudential norms.
Housing loan, personal loan, automobile
loan, education loan.
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 3

4. OVERVIEW
Chapter 01
Introduction to Commercial Banking
BANKING
SYSTEM
FORMAL
COMMERCIA
L
NON
COMMERCIA
L
INFORMAL
PVT. MOMEY LENDERS
INDIGENIOUS BANKER
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 4

5. History of Indian banking
Vedic period, i.e., 2000 to 1400 BC
(Reference of the Central Banking Enquiry Committee (1931))
Professional banking 500 BC
(Reference of Kautilya’s Arthashastra, dating back to 400 BC)
Joint stock banking
Presidency banks
Imperial Bank of India
Agricultural credit societies & urban co- operatives
Reserve Bank of India Act, 1934
Nationalization of Banks
Private Banks
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 5

6. Chapter 02
Banking Operations
Retail liabilities
Savings account, current account, salary account
Fixed deposits
Recurring deposits
Insurance
Mutual fund , etc.
Retails assets
Any type of loans like personal loan, car loan, education loan, etc.
Credit card, etc.
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 6

7. 12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 7

8. Chapter 03
Banking products
Fund based products
(Interest on Fixed deposits/ savings accounts) - (Interest on Loan)
Fee based products
(Mutual funds, Insurance products demand drafts or guarantees, transfer of funds,
etc.)
Appraisal process
To find out repayment capacity of the borrower
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 8

9. Chapter 04
Legal Aspects of Banking
•Negotiable Instrument Act,
•Banking Regulation Act
•RBI circulars.
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 9

10. Chapter 05
Rural Banking
Small Finance Banks:
Promote financial inclusion by provision of savings and credit to small business units,
small and marginal farmers, and other unorganised sector entities.
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 10

11. Chapter 06
Study of Bank financial statement
CAMELS framework
C-Capital
A-Asset Quality
M-Management
E-Earnings
L-Liquidity
S-Sensitivity
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 11

12. Chapter 07
IRAC Norms / NPA Management
I-Income
R-Recognition
A-Asset
C-Classification
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 12

13. Chapter 08
Risk Management in Banks
Credit, market and operational risks.
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 13

14. Chapter 09
Capital Adequacy Norms
Basel I/II/III
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 14

15. Chapter 10
Treasury
Integration of money market, securities market and foreign exchange operations..
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16. Chapter 11
Asset Liability Management
Interest spread & NIM
Net interest margin is a summary measure of the net interest return earned on income-
producing assets such as loans and bonds
The interest spread is a measure of the bank’s ability to invest in assets yielding more
than the cost of its sources of funding
12/11/2019 DR.YOGESH INGLE PHD NET MMS GDCA & NCMP 16