Bank Management - Bms - New

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BANK MANAGEMENT

(3 Credits)

Objective:
This course aims at enabling the students to understand and to contribute to the
strategic operational policies and practices of commercial bank management in a
competitive environment.

MODULE I - COMMERCIAL BANKING IN INDIA (15)

Unit 1 : Introduction – Scheduled and non-scheduled banks – Origin & Development


- Evolution and growth of banking system in India – Present Structure -
Recommendations of Narasimham Committee –Challenges before Indian commercial
banks – Opportunities for Indian commercial banks – Strengths and weaknesses of
Indian commercial banks – Banking sector reforms

Unit 2: Liquidity – Purpose – Sources – Measurement – Liquidity / profitability


problem – Theories of liquidity management – Priorities in the employment of
bank funds – Problem of resource allocation in Indian commercial banks.

Unit 3: Capital Adequacy in Banks - 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

MODULE II – BANKING OPERATIONS (20)

Unit 1: Credit Management - Cardinal principles of sound bank lending –


Formulating loan policy – Factors influencing loan policy – Contents of loan policy –
Evaluating credit applicant – Loan supervision

Unit 2: Investment Management - Nature and significance of investment management


in commercial banks – Fundamental principles of security investment by commercial
bank – Management of security investment – Reviewing investment portfolio –
Organisation of investment function.

Unit 3: Asset Liability Management and Non-Performing Assets - Concept of ALM –


Objectives – Functions – Process – Measurement and Management of Risks
Concept of NPAs, NPAs in Indian commercial banks, Causes, Suggestions and
steps for containing NPAs, Prudential norms

MODULE III– BANK MARKETING (10)

Unit 1: Concept of bank marketing - Formulating and implementing marketing


strategies for a commercial bank

Unit 2: Relationship banking- Concept, Distinguishing features, Utility,


Fundamentals of relationship banking, Process of developing relationship with
customers, Formulating relationship banking strategy
Suggested Readings:

1. Srivastava, Divya Nigam, Management of Indian Financial Institutions,


Himalaya Publishing House.
2. M. Y. Khan, Indian Financial System , Tata McGraw Hill.
3. Bharati Pathak, Indian Financial System,
4. Gerald Hatler, Bank Investments and Funds Management, Macmillan
5. Stigum, Managing Bank Assets and Liabilities, Dow-Jones Irwin.
6. Dudley Luckett, Money and Banking, MacGraw Hill.
7. Vasant Joshi, Vinay Joshi, Managing Indian Banks- Challenges Ahead”,
Response Books.

Journals:
Professional Banker

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