Treasury Management

Program Semester : MBA : IV Class of Sessions Credit : 2007 : 33 : 3 Units

Course Code : BKG 604

Objective
The objective of the course is to help the student gain insight into the myriad functions of a treasurer ranging from cash and liquidity management, reserves management, funds management to transfer pricing, risk management and foreign exchange management. Reference Books Treasury Management IBFS Study Material Analysis for Financial Management Fundamentals of Financial Management Practical Financial Management An Introduction to Fund & Investment Management in Banks The Treasurys Hand Book Author / Publication ICFAI ICFAI Robert C. Higgins, McGraw-Hill/Irwin James C. Van Horne, Prentice Hall William R Lasher/ Thomson South Western R Bhaskaran, BIRD Lucknow J P Morgan Fleming System; The money Market Instruments; Various Intermediaries and their Role; Influence of Monetary policy on Money Markets; Regulatory Framework in the Indian Money Market; Recent Developments in the Monetary and Credit Policy. Call Money: Features of Call Market; Developments in Indian Call Markets; Movements of Call Rates; Role of Reserve Bank of India; Call Markets in Other Countries. Treasury Bills: Features of Treasury Bills; Types of Treasury Bills; Issuing procedure of Treasury Bills; Primary Market and settlement Procedures; Features of Treasury Bills Abroad. Certificate of Deposits (CDs): Feature of CDs; Purpose for which CDs are Issued; The Issuing Procedure; The Guidelines. Bill Financing: Concept and Features of Bills of Exchange; Types of Bills; Procedure of Bill

Detailed Curriculum
Scope and Functions of Treasury Management: What is a Treasury Management; Structure and Organization of Treasury Management; Role of CFO; Functions of a Controller; Functions of a Treasurer; Responsibilities of a Treasure. Financial Systems and Financial Markets: Functions of the Financial System; Constituents of the financial System; Need for Various Financial Markets; Role of Financial Assets and Financial Intermediaries in the financial System. Credit Market: The role of credit Market in the financial System; Credit Facilities in the credit Market; Risks Involved and Pricing Decisions; Role of Indian Credit Market. Short Term Instruments.: Introduction to Money Markets The role of Money Market in the financial

Financing; Foreign Bills; Discounting of Bills by NBFCs; Commercial Bill Financing. Repurchase Agreements (REPOs): Nature and Purpose of Repos; Features of Repos; Issuing procedure of Repos. Gilt-Edged Securities Market: Feature of Government securities; Primary Market; Trends in the Government securities Market; Issuing Procedures and Redemptions; Role of RBI. Financial Guarantees: Guarantee; Sources of Guarantees; Specialized Institutions offering Guarantees such as DICGC and ECGC; Polices Covered by DICGC and ECGC. Internal Treasury Control: Structure and Organization of Treasury; Accounting and control; Various Measures of Controls; Insight into Information systems and Reporting Standards; Measuring Treasury Performance. Tax Planning and Treasurer: What is Tax Planning? Avoidance and Evasion; Tax Planning and Treasurer; Computing the Capital Gains; Managing Bankruptcy: Definition of Bankruptcy; Factors Leading to Bankruptcy; Symptoms of Bankruptcy; Bankruptcy Costs; Bankruptcy Prediction Models; Case StudyBarings. Managing Customer and Investor Relationships: Services rendered by Banks; The Indian Banking Services; Investor Relations Programs; Disseminating Information; planning for contingencies; Dealing with Hostile Press. Funds Management in Banks: Cash and Liquidity Management; Reserves Management; Investment Portfolio Management; Transfer Pricing; Asset and Liability Management; Forex Management. Investment Portfolio of Banks: Investment portfolio of Banks; Investment Management; Components of Banks Investment Policy; Valuation of Investment Portfolio. Asset Liability Management: ALM Information Systems; ALM Organization; Liquidity Risk Management; Currency Risk Management; Interest rate Risk (IRR)

Management. Treasury Operations: Integrated Treasury; Structure of Treasury; Operations of Treasury; Dealing and Settlement Procedures.

Suggested Schedule of Sessions

Topic of Coverage Scope and Functions of Treasury Management Financial Systems, Markets and Instruments Financial Guarantees Internal Treasury Control Tax Planning and Treasurer Managing Bankruptcy Managing Customer & Investor Relationships Fund Management in Banks Investment Portfolio of Banks Asset Liability Management Treasury Operations Total Number of Sessions No. of Sessions 2 6 2 2 1 2 2 5 5 3 3 33

Note: Screen indicates syllabus for MidSemester examination.