Sunteți pe pagina 1din 5

INDIAN INSTITUTE OF MANAGEMENT NAGPUR

POST GRADUATE PROGRAM IN MANAGEMENT

2018-19 TERM V

BANKING, FINANCIAL MARKETS AND SYSTEMS

Course Instructor: Balachandran R

Course introduction

Banks are an important part of the financial system. An understanding of banking and financial markets is

a pre requisite for a successful manager in the corporate world. Managers irrespective of their functional

area would find that their path crosses that of banks at some point in their career. In depth knowledge of banking practices and financial markets would help PGP students planning a career in this sector as well as aspirants of other career streams.

Course objectives

The course would provide breadth of knowledge in various aspects of banking i.e. retail, wholesale/corporate banking, trade finance, treasury and wealth management. Branch banking operations and core banking systems would be covered. Digital channels would be emphasized. Latest innovations like Blockchain would be part of the scope. The structure of a bank’s balance sheet, and the regulatory/legal environment in which banks operate would be discussed. Finally, the most trending topic in banking, the genesis and possible resolution mechanisms for non-performing loans including the Insolvency and Bankruptcy Code would be addressed. Participants of the course will learn through case studies the nature of frauds and scams plaguing the banking sector and how to avoid falling prey to them. Anti-money laundering/KYC norms would be discussed.

Ultimately, banks borrow money from depositors and lend it to borrowers, which is the most basic function of a bank. The course will seek to demystify banking and help participants to acquire banking skills in a simple and intuitive way through real life scenarios. Perspectives will be offered from global banking practices compared to India.

Overview of financial markets, including government securities markets, money markets, foreign exchange markets, securitization and syndication, key players, exchanges, systems would be part of the scope.

Pedagogy

A mix of pre read, class room interactions, group projects and extensive usage of case studies. Hands on

experience for interest calculation using spread sheets. XL based simulation of a bank’s balance sheet.

Textbooks for reference

“Management of Banking and Financial Services” 3 rd edition by Padmalatha Suresh and Justin Paul

“Financial Markets and Institutions” 6 th edition by Fredric Mishkin and Stanley Eakins

Evaluation scheme

Evaluation component

Type(Individual/

Weightage

Group)

%

Group Project submission (Report-10%,

Group

20

Presentation-10%)

Quizzes(2,both mandatory, 20% each)

Individual

40

End term exam

Individual

40

Project Submission

The project work will be executed through a team. The team will prepare a credit proposal for a corporate borrower. Further inputs will be shared during the course.

Session wise course outline

Sessi

Topics covered

Case(if any)

Pre class reading

on

Num

ber

1

Demystifying

 

banking,

banking

Executive Summary

industry

structure in

India

2

Banking

Recent

operations.

cases of

money

KYC, Anti

laundering

money

post

laundering-

demonetizat

concepts and

ion

case studies

3

Deposit taking

 

function,

Overview of

lending

products-

overdraft,

personal loans,

mortgage

loans, loan

against

property, auto

loans, student

loans, loan

against

securities

4

Trade finance

LCs,guarant

ees,factorin

g,supply

chain

financing

5

Corporate loan life cycle, from cradle to grave

Credit appraisal of a real life

I

corporate borrower

6

Corporate loan life cycle, from

 
 

cradle to grave

   

II

Case studies

Corporate

involving

malfeasance

willful

case studies

defaults

7

Overview of

 

financial

markets I

8

Overview of

 

financial

markets II

Syndication

and

securitization

markets

9

Retail loan

 

appraisal,

documentation

and security,

loan disbursal

and repayment

Wealth

management

10

Core banking

Demonstrati

systems-

on

of

interest

interest

calculation,

calculation

accounting

using spread

entries basics

sheets

11

Structure of a bank's balance

XL

based

Simulation

sheet

of a bank’s balance sheet

12

Risk

Basel

Management

standards

(page 12-19)

for bank

regulation

13

Regulatory and

 

legal

environment

Central banks

Monetary

policy

14 Digital and

other channels

15 Innovations

and recent

trends in

banking

16 Project

 

presentation

by groups

17 Project

 

presentation

by groups

About the instructor:

Balachandran R has completed his full time PGP from IIM Calcutta (1987-89). His 27 + year career has been primarily with Standard Chartered Bank in Corporate and Investment Banking and Infosys Finacle in Banking Product Management. Since leaving the corporate world, he is now a columnist for Economic Times on fixed income investing, monetary policy, banking and financial markets, and has contributed to Business Standard, Business Line and Business Today as well. He is keenly looking forward to sharing his practical knowledge in banking and financial markets acquired through travelling and working on assignments with financial institutions in many regions including India, United States, Latin America and Middle East. He has been teaching at the IIM’s at Calcutta, Trichy and Udaipur.