BANK MANAGEMENT

Name of the Faculty: MR. SUDHEENDRAN.M

Semester III

Programme: Master of Business Administration (MBA)

SCMS-SSTM
COCHIN -683 106
1. Course Outline (Syllabus)

Module Description
No.

1 Origin and kinds of Banks- Unit and branch banking-Universal Banking-

Banking System in India-Central bank-Evolution-Function-control of credit-
Role of RBI-organization and Management.

Commercial Banks- Cooperative Banks- Development banking –NBFC’s-

Unorganised sector-Nationalization and social responsibility of banking –
Privatisation & Infusion of financial efficiency.

2 Commercial Banks-Functions of Commercial Banks-Agency Services-

General Utility Services-Credit creation Limitations of Credit creation.

Practice of Banking-Banker-Customer Relationship-Special Relationship

Law of Limitation-banker as trustee an agent-Appropriation of payment-
Right of lien and setoff-obligation to maintain secrecy-Garnishee order

3 Electronic payment system-Teller Machines-Cash dispensers-ATMs-

Anywhere Anytime Banking-Home Banking-Online enquiry and update
facilities-Personal Identification Numbers –and their use-credit and debit
cards-smart cards-signature storage & display by electronic means-MICR
cheques

4 Electronic Banking and Internet Banking-Electronic Fund Transfer System-

Plain Message-Structure Messages-SWIFT-CHIPS-CHAPS-FEDWIRE-
RTGS-facets of Electronic Central Banking-E-banking transactions-Internet
Banking- security considerations. Rangaraj or Sacraf and Schere
Committee recommendations

5 International Banking-Exchange rate-Documentary letter of credit-Facilities

for exporters and importers-correspondent banking and NRI bank Accounts-
EXIM Banks-ECG Banks-role of FEDAI.

Evaluating Bank Performance-ROE Model-CAMEL’s rating-traditional

GAAP based performance Measures-Profitability Analysis, Balanced
Scorecard.

Mergers and Acquisitions in Banks-Value creation through mergers-motives

behind mergers-valuation procedures-Financial and Non-Financial
considerations in Mergers and Acquisitions.

2
2. Courseware:
Book/ Author Year/ Publisher
Journal edition/volume
title
Introduction to First Edition -2007 Excel Books
Banking. Vijayaraghavan Iyengar
Principles of Macmillan
Banking Indian Institute of Banking & First Edition2005
Finance
Banking 18th Revised Himalaya
Theory,Law & Gordon & Natarajan Edition-2004 Publishing
Practice House
Banking Theory 18th Revised Vikas
& Practice Shekar & Shekar edition Publishing
House.
Basics of Dr.K.M.Bhattacharya & First Edition 2006 Himalaya
Banking and O.P.Agarwal Publishing
Finance House
Management of Justin Paul & First Edition 2007 Pearson
Banking & PadmalathaSuresh Education
Financial
Services
RBI Website http://www.rbi.org.in
Financial Dailies THE ECONOMIC TIMES, THE HINDU BUSINESSLINE, BUSINESS
STANDARD
IIBF Website http://www.iibf.org.in

3
3. Session Plan

Reading reference /
Session
Topics Assignment (Preparatory.
No
Work)

1 Origin and kinds of Banks- Unit and Banking Theory & Practice, Shekhar &
branch banking-Universal Banking- Shekhar Chapter 2

Basics of Banking & Finance,

Bhattacharya & Agarwal, Chapter 1.
2,3 Banking System in India-Central Banking Theory, Law & Practice,
bank-Evolution-Function-control of Gordon & Natarajan,
credit-Role of RBI-organization and Chapters 30 & 35.
Management.
Introduction to Banking,
Vijayaragavan Iyengar,Chapters1 & 2

Financial Institutions and Markets,L M

Bhole & Jitendra Mahakud, Chapter 6
4 Commercial Banks- Cooperative Banking Theory, Law & Practice,
Banks- Development banking – Gordon & Natarajan,
NBFC’s- Chapters 30 & 36

Banking Theory & Practice, Shekhar &

Shekhar Chapter 4, 11 &12.
5 Unorganised sector-Nationalization Banking Theory, Law & Practice,
and social responsibility of banking – Gordon & Natarajan,
Chapters 31

Banking Theory & Practice, Shekhar &

Shekhar Chapter 2&5.
6 Privatisation & Infusion of financial Introduction to Banking,
efficiency Vijayaragavan Iyengar,Chapter 3

Financial Institutions and Markets,L M

Bhole & Jitendra Mahakud, Chapter 5
7,8 Commercial Banks-Functions of Banking Theory, Law & Practice,
Commercial Banks-Agency Gordon & Natarajan,
Services-General Utility Services- Chapters 22
Credit creation Limitations of Credit Banking Theory & Practice, Shekhar &
creation. Shekhar Chapter 2

9,10, Practice of Banking-Banker- Principles of Banking,Indian Institute

11,12 Customer Relationship-Special of Banking & Finance, Macmillan,
Relationship Law of Limitation- Chapters 5,6,7.
banker as trustee an agent- Banking Theory, Law & Practice,
Appropriation of payment- Gordon & Natarajan, Chapters 1 & 4

4
13,14 Right of lien and setoff-obligation to Banking Theory, Law & Practice,
maintain secrecy-Garnishee order Gordon & Natarajan, Chapter 13

Banking Theory & Practice, Shekhar &

Shekhar Chapter 21, 28.
15,16 Electronic payment system-Teller Principles of Banking,Indian Institute
Machines-Cash dispensers-ATMs- of Banking & Finance,
Anywhere Anytime Banking-Home Macmillan,Chapters 12 to 16
Banking-Online enquiry and update
facilities Basics of Banking & Finance,
Bhattacharya & Agarwal, Chapter 5

.www.rbi.org.in
http://www.rbi.org.in/scripts/BS_
ForBankers.aspx

http://www.rbi.org.in/scripts/FAQ
Display.aspx
17,18 Personal Identification Numbers – Principles of Banking,Indian Institute
and their use-credit and debit cards- of Banking & Finance,
smart cards-saignature storage & Macmillan,Chapters 12 to 16
display by electronic means-MICR
cheques Basics of Banking & Finance,
Bhattacharya & Agarwal, Chapter 5

www.rbi.org.in
http://www.rbi.org.in/scripts/BS_
ForBankers.aspx

http://www.rbi.org.in/scripts/FAQ
Display.aspx
19,20 Electronic Banking and Internet Principles of Banking,Indian Institute
Banking-Electronic Fund Transfer of Banking & Finance,
System-Plain Message-Structure Macmillan,Chapters 12 to 16
Messages-SWIFT-CHIPS-CHAPS-
FEDWIRE- Basics of Banking & Finance,
Bhattacharya & Agarwal, Chapter 5

www.rbi.org.in
http://www.rbi.org.in/scripts/BS_
ForBankers.aspx

http://www.rbi.org.in/scripts/FAQ
Display.aspx

5
21,22 RTGS-facets of Electronic Central Principles of Banking,Indian Institute
Banking-E-banking transactions- of Banking & Finance,
Internet Banking- security Macmillan,Chapters 12 to 16
considerations.
Basics of Banking & Finance,
Bhattacharya & Agarwal, Chapter 5

www.rbi.org.in
http://www.rbi.org.in/scripts/BS_
ForBankers.aspx
23 Rangaraj or Saraf and Schere Introduction to Banking,
Committee recommendations Vijayaragavan Iyengar,Chapter 3

www.rbi.org.in
24,25, International Banking-Exchange Financial Institutions and Markets,L M
26,27 rate-Documentary letter of credit- Bhole & Jitendra Mahakud, Chapter
Facilities for exporters and 25.
importers-correspondent banking Websites of RBI,FEDAI,EXIMBANK
and NRI bank Accounts-EXIM and ECGC.
Banks-ECG Banks-role of FEDAI.
Management of Banking & Financial
Services, Justin Paul & Padmalatha
Suresh, Chapter 22

Banking Theory & Practice, Shekhar &

Shekhar Chapter 29, 30.

6
28,29, Evaluating Bank Performance-ROE http://rbi.org.in/scripts/Publicatio
30,31 Model-CAMEL’s rating-traditional nsView.aspx?id=10496
GAAP based performance
Measures-Profitability Analysis,
Balanced Scorecard. http://www.12manage.com/meth
ods_balancedscorecard.html

http://www.ignou.ac.in/edusat/m
ba/ms422/MS-422%20Block-
1/pdf/UNIT3.pdf

http://www.cab.org.in/Lists/Know
ledge%20Bank/Attachments/47/
Analysis%20of%20Financial%20
Statement%20of%20Banks-
Updated.pdf

Evaluating performance of banks

Titl
through CAMEL model: a case
e
study of SBI and ICICI,
Aut
Bodla, B S , Verma, Richa
hor
So
ICFAI Journal of Bank
urc
Management, 5(3) Aug, 2006
e
Pa
ge pp 49-63
s

Balanced Scorecard- Multi Sector

Perspectives
Publisher: ICFAI
Author: Sumati Reddy, Venkata
Nimeesha Posa,
ISBN: 8131408604
No. of Pages: 228

7
 32,33, Mergers and Acquisitions in Banks- Management of Banking &
34,35 Value creation through mergers- Financial Services, Justin Paul &
motives behind mergers-valuation
Padmalatha Suresh, Chapter 19
procedures-Financial and Non-
Financial considerations in Mergers
and Acquisitions. http://www.ficci.com/media-
room/speeches-
presentations/2004/sep/banking/
Session%20III/0

http://www.economywatch.com/
mergers-
acquisitions/international/bankin
g-sector.html

http://www.thehindubusinessline.
com/2004/11/11/stories/2004111
100071000.htm

4. Activities:

Module Tests: Module Tests would be conducted at the end of every module. But the
participants can expect more than one test per module, owing to the depth and coverage of
the topics.

Assignments: Assignments would be provided, the topic of which would be intimated in

advance. The participants are expected to exhibit due diligence in submitting original works,
without resorting to un-warranted practices. In cases of discrepancies, valuation of
assignments would attract weights of the marks of the tests of the corresponding module,
subject to approval of the appropriate authorities.

Class Participation: The participants are expected to actively participate in class room
activities, with more impetus emanating from their part in the learning process. Evaluation
criteria would consist of punctuality in attendance, up-keep of class/ home work notes and
records, pro-active class-room etiquette and academic performance.

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Banking Diary / Notebook: Each student should maintain a Banking diary/Notebook.
Apart from the Classroom learning, Latest News in Financial sector including relevant
Economy & Banking related data can be included in the Diary/Notebook.

INTERNAL EVALUATION:
Module Tests: 15
Presentation & Assignments: 10
Mid-Term Test: 5
End Term Model Test: 5
Class Participation/Banking Diary 5
TOTAL: 40