MBA (Financial Administration) IIIrd Semester (2012-14)

FA301C FINANCIAL DERIVATIVES

Course Objective: The objectives of this course are to explain to the student the risk return trade-off and manage financialrisk through the use of various derivatives and to make them understand operations of derivatives market. Examination Scheme: The faculty member will award internal marks out of 40 based on three assessments of 20 marks each ofwhich best two will be considered. The end semester examination will be worth 60 marks having theoryand cases/practical problems. Course Contents: 1. Financial Risk Management: Concept of Risk, Types of Risk, Types of Financial Risk, RiskManagement Strategies. 2. Introductions to Derivatives: Concept, Types, Forwards Contracts, Future Contracts, Options, SWAPS, Comparison of Forward, Future Options, SWAPS Put Option, Call Option. Participants: Types of Hedgers, Speculators and Arbitragers, Uses of Derivatives, Basic Derivatives terminology: Types of Orders, Recent developments in Derivatives. 3. Option Market: Types of Options, Uses of Options, Payoffs from Options, Trading Strategies involving: Options Bull-Bear, Butterfly Spread, Calendar and Diagonal Spread, Straddles, Stir Ripand Straps, Options Valuation and Pricing. Factors Determining Option Price, Binomial Model, Black Scholes Model, Concept of Delta, Theta, Gamma Vega, Exchange Traded Option: Stock Option, Over the Counter Exchange Option.Options onStock Indices, Currencies and Future Contracts. Put CallParity. 4. Future Contracts: Introduction to Futures Markets, Future Contract and Future Trading, Specification of the Future Contract, Newspaper Quotes, Hedging using Futures, and Index Futures. Basics of Stock Index Future, Interest Rate Futures, Forward rate agreement, Foreign Exchange and Currency Future, Mechanism of Future Contracts, Operations of Margin, Convergence, ClearingProcess, Clearing house and Clearing Margins, Hedging, Difference between Forward and Future, Valuation of forward and futures prices. 5. SWAPS: Introduction to Swaps, Basic Swap Structure, Interest Rate Swaps, Currency Swaps, Mechanics of Swaps Transactions, Swap options. Text Reading: 1. John. C. Hull, “Options, Futures and Others Derivatives”, Latest Edition, Pearson Ed. Asia. 2. Robert A. Strong, “Derivatives: An Introduction”, Latest Edition, Thompson Publications, New Delhi. Suggested Readings: 1. Kolb, “Understanding Future”, PHI Publications, New Delhi, Latest Edition. 2. Redhead, “Futures”, Pearson Education Asia Publication, Latest Edition. 3. N.D. Vohra & B.R. Bagri, “Futures and Options”, Tata-McGraw Hill, Latest Edition. 4. Keith, Redhead, “Financial Derivatives”, Prentice Hall of India, Latest Edition. 5. David A. Dubofsky & T.W. Miller Jr., “Derivatives: Valuation and Risk Management”, OUP, Latest Edition.

MBA (Financial Administration) IIIrd Semester (2012-14)

FA302C DIRECT TAXATION

Course Objective: The objective of this course is to enable students to develop an understanding of direct and indirect taxesand to enable them to calculate taxes. Examination Scheme: The faculty member will award internal marks out of 40 based on three assessments of 20 marks each ofwhich best two will be considered. The end semester examination will be worth 60 marks having theoryand cases/practical problems. Course Content: 1. Introduction to Direct Taxes (An Overview): Income Tax, Wealth Tax. 2. Introduction to Tax Management: Concept of Tax Planning, Tax Avoidance and Tax Evasion. 3. Important Provisions of Income Tax Act. 4. Basic Concepts: Assessment Years, Previous Years, Person, Income, Gross Total Income, Capital and Revenue Receipts and Expenditure, Residential Status and Incidence of Tax, Tax Free Income. 5. Salaries: Meaning, Taxability of Allowances and Perquisites, Permissible Education, Treatment of PF, Gratuity, Computation of Taxable Salary. 6. Income from House Property: Determination of ownership, property Income Exempt from Tax and Computation of Income from House Property. 7. Profits and Gains of Business and Profession: Basis of Charge, Scheme of Provisions, Deductions Expressly Allowed, Expenses Allowed Under Restriction, Depreciation, Computation of Profits and Gains of Business and Profession, Tax Planning, Taxation of Firms & Companies, Mergers & Acquisitions. 8. Capital Gains: Meaning, definition of capital gains, assets not be treated as capital Assets, types of assets and gains, computation of Capital Gains. 9. Income from Other Sources: Computation of Income from Other Sources. 10. Deduction: Deduction Allowed From Total Income, Rebates and Relief. 11. Computation of Total Income of Individual. 12. TDS: Tax Deduction at Source, Advance Payment of Tax, Filing of Returns, Tax Planning in Relation to NRIs. 13. Wealth Tax Act: Important Provisions and Calculation of Wealth and Wealth Tax. Text Reading (Relevant Previous Year): 1. H. C. Meherotra, “Income Tax”, SahityaBhawan, Agra. Suggested Reading (Relevant Previous Year): 1. S. Battacharya, “Indian Income Tax: Law & Practice”, New Delhi, Indian Law House. 2. V K Singania, “Student Guide to Income Tax”, New Delhi, Taxman Publication. 3. V K Singania, “Direct Tax Law”, New Delhi, Taxman Publication. 4. Shripal Saklecha and Anit Saklecha, “Income Tax”, Indore, Satish Printers. 5. Bare Act of Income Tax. 6. Bare Act of Wealth Tax.

MBA (Financial Administration) IIrd Semester (2012-14)

FA 303C PROJECT MANAGEMENT

Course Objective: The Course Objective is to acquaint students with project management method and to develop skills on ProjectPlanning, Analysis, Implementation and Control. Examination Scheme: The faculty member will award internal marks out of 40 based on three assessments of 20marks each of which best two will be considered. The end semester examination will beworth 60 marks having theory and cases/practical problems. Course Contents: 1. Project Planning and Phases: Need And Importance, Phases of Capital Budgeting, Project Analysis Facts, Resource Allocation Framework (Investment Strategies, Portfolio Planning Tools, and Interface between Strategic Planning and Capital Budgeting), Generation andScreening ofProject Ideas. 2. Project Analysis: Market and Demand Analysis, (Including Demand Forecasting), Location Analysis,TechnicalAnalysis and Financial Analysis (Cost of Project, Working Capital Requirement & Its Financing),Social Cost Benefit Analysis. 3. Project Selection: Project Cash Flows, Time Value of Money, Cost of Capital, Appraisal Criteria and Analysis of Risk. 4. Preparing Project Report, Financial Projections, Estimating Costs. 5. Project Financing, Project Appraisal by Financial Institutions. 6. Project Management and Control: Project Organizations, Planning and Control of Project& Human Aspects of Project Management, Project Control Tools (Gantt Charts, Line OffBalance) 7. Network Techniquesfor Project Management: Basic Concepts of Networks, Line Estimationand Determination of Critical Path (For Both PERT and CPM Models), Network CostSystems and Activity Crashing. 8. Project Review: Need for Reviews, Initial Review, Performance Evaluation, Abandonment Analysis, Evaluating the Capital Budgeting Systems. 9. Public and Private Sector Projects. 10. Other Issues: Tax Implications, Environmental, Health and Safety. Text Reading (Latest Edition): 1. Prasanna Chandra. “Project Planning, Analysis, Selection, Implementation and Review”, New Delhi, Tata McGraw Hill Publications, Latest Edition. 2. P. Gopalkrishnan and E. Rama Moorthy, “Text Book of Project Management”. New Delhi, McGraw Hill Publications, Latest Edition. Suggested Reading (Latest Edition): 1. Harold Kerzner, “Project Management: A Systems Approach to Planning, Schedulingand Controlling”, New Delhi, CBS Publications, Latest Edition. 2. Rajive Anand, “Project Profiles with Model Franchise Agency and Joint Venture Agreement”, New Delhi, Bharat Publications, Latest Edition.

MBA (Financial Administration)

IIIrd Semester (2012-14) FA 304C

INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT Course Objective: The objectives of this course is to provide the students in depth understanding of investment techniques asapplied to various forms of securities and acquaint them with the functioning of mutual funds, investmentstrategies and portfolio management Strategies. Examination Scheme: The faculty member will award internal marks out of 40 based on three assessments of 20 marks each ofwhich best two will be considered. The end semester examination will be worth 60 marks having theoryand cases/practical problems. Course Contents: 1. Introduction: Concept of Investment, Investment V/S Speculation, Financial and Economic aspect of Investment, Types, Characteristics and Objectives of Investment.Selecting Investments in a Global Market. 2. Securities Valuation: An Introduction to Security Valuation, Macroeconomic & Market Analysis: The Global Asset Allocation Decision. 3. Valuation of Bonds: Bond Fundamentals, Bond Valuation Models: PV Model, Bonds Yield, Measures Duration, Modified Duration, Immunization Conversity, Bond Value Theorem. 4. Valuation of Equity: Constant Growth Model, Multi-Stage Growth Model, P/E Ratio andEarnings Multiplier Models. 5. Valuation of Preference Shares, Valuation of Warrants, RightsIssued. 6. Risk and Return: Concept of Risk and Return, Systematic and Unsystematic Risk, Multifactor Model of Risk & Return, Efficient Capital Market Theory, Concept of Beta, Capital Assets Pricing Model, SML And CML Valuations. 7. Security Analysis: Stock Market Analysis, Fundamental Analysis and Technical Analysis, DowTheory, Elliott Wave Theory, Efficient Market Theories and Testing. 8. Portfolio Concepts: Portfolio and Security Returns, Diversification, Markowitz Model, Sharp Index Model (CAPM). 9. Factor Models and Arbitrage Pricing Theory. 10. Portfolio Investment Process. 11. Portfolio Evaluation: Measures of Returns, Formula, Plans, Sharpe and Treynor Measures. 12. Portfolio Management Strategies: Bond Portfolio Management Strategies and EquityPortfolioManagement Strategies. Text Readings (Latest Edition): 1. V.K. Bhalla, “Investment Management: Security Analysis and Portfolio Management”, S. Chand and Sons, New Delhi. 2. Frank K. Reilly & Keith C. Brown, “Investment Analysis and Portfolio Management”, Thomson South Western. 3. Donald E. Fisher and Ronald J. Jordan, “Security Analysis and Portfolio Management”, PHI Publication, New Delhi. 4. V.A. Avadhani, “Securities Analysis & Portfolio Management”, Himalaya Publishing House. Suggested Readings (Latest Edition): 1. Edwin J. Elton and Martin J. Gruber, “Modern Portfolio Theory and Investment”, John Wileyand Sons, Singapore. 2. Preeti Singh, “Investment Management”, Himalaya Publications.

3. V.A. Avadhani, “Investment and Security Markets In India”, Himalaya Publication, Bombay. 4. Thomas E. Copeland & J. Fred Weston, “Financial Theory and Corporate Policy”, Addision-Wesley Pub. 5. Prasanna Chandra, “Financial Management Theory and Practices”, Tata McGraw-Hill Pub. 6. Robert A Haugen, “Modern Investment Theory”, Person Education, Prentice Hall. 7. Prasanna Chandra, “Investment Analysis and Portfolio Management”, Tata McGraw-Hill Pub.

MBA (Financial Administration) IIIrd Semester (2012-14)

FA 305C CUSTOMER RELATINOSHIP MANAGEMENT

Course Objectives: The objective of this course is to introduce customer centric operations, process andimplications of CRM. Examination Scheme: The faculty member will award internal marks out of 40 based on three assessments of 20 marks each ofwhich best two will be considered. The end semester examination will be worth 60 marks having theoryand cases/practical problems. Course Content: 1. Introduction: Evolution of CRM, Customer satisfaction, Customer loyalty, Customer experience,Paradigm shift in marketing, Relationship Marketing, CRM, e-CRM, significance and benefits ofCRM to different business organizations and customers. 2. Concepts of CRM: Concept of Customer Lifecycle, Lifecycle stages, Customer Lifecycle Management, Customer Lifetime Value assessment, Customer – Product profitability analysisConsumer Behaviour theories and CRM. 3. CRM Process: CRM Models, Systems Approach to CRM, CRM Process, Objectives, Customer Segmentation, Customer Database, Strategy Formulation, Infrastructure Development, Designing System, Core Processes, Developing People, Customer Retention, Recovering Lost Customers, Terminating Relationships. 4. Customer Experience: Concept, Levels of Experience, Determinants of Customer Experience.Benefits to organization. 5. Database Management: Information Management for Customer Acquisition, Retention, Attrition andDefection, Data Warehousing, Data Mining. 6. CRM Technology: Hardware, Software, Web portals, Call Centres, IT enabled business solutions. 7. Measuring CRM Effectiveness: CRM Metrics – Financial and Non-Financial Measures, Balanced Scorecard. Text Readings (Latest Edition): 1. Sheth, J.N., Parvatiyar, A. and Shainesh, G., “Customer Relationship Management”, TMH. 2. Kincaid, J.W., “Customer Relationship Management: Getting it right”, Prentice Hall. 3. Sheth, J.N. and Parvatiyar, A., “Hand Book of Relationship Marketing”, Sage Publication. 4. Chaturvedi, M. and Chaturvedi A., “Customer Relationship Management – An Indian Approach”, Excel Books. 5. Sugandhi, R.K., “Customer Relationship Management”, New Age International Pub. Suggested Readings (Latest Edition): 1. Mohamed, H.P. and Sagadevan, A. “CRM – A Step by Step Approach”, Vikas Pub. 2. Greengerg, P., “CRM at the Speed of Light”, TMH.

MBA (Financial Administration) IIIrd Semester (2012-14)

FA 306C BUSINESS INTELLIGENCE

Course Objective: The objective of teaching this course is to enable students to integrateknowledge of various functional areas and technologies use for business integration. Examination Scheme: The faculty member will award internal marks out of 40 based on three assessments of 20marks each of which best two will be considered. The end semester examination will be of 60marks. Course Contents: 1. ERP (Enterprise Resource Planning: Overview of ERP, Objective of ERP, ERP Evolution, Trades in ERP ,ERP Technology, Benefits and challenges of ERP,Different types of ERP Software, ERP Implementation & Challenges. 2. SCM (Supply Chain Management: Overview of Supply Chain ManagementIdentifying Supply Chains, Key Supply Chain Management Processes, Evolution ofSupply Chain Management, Creating Value through Supply Chain Management, TheImpact of Globalization on Supply Chain Management, Supply Chain ManagementStrategy, Elements of Supply Chain Management,; Logistics Network Configuration, Data Collection and Validation, Key Features of Network Configuration. Supply Chain Integration. 3. BPR (Business Process Re-Engineering: Evolution of Business and BPR:Introduction, evolution of Organization and Management Concepts, The realities ofthe New Economy, he Twenty-first Century Organization, Re-engineering Defined.Characteristics and Implications of Re-engineered business processes: Characteristicsof Re-engineered processes, Change accompanying business process Re-engineering.The role of information technology, creativity and human resources in Re-engineeringBPR implementation: Re-engineering Implementation Framework, Succeeding at Reengineering,and BPR Barriers. 4. Knowledge Management : The Basics of knowledge Management Concept ofKnowledge Management, KM Myths And Life Cycle, Intelligence, Experience andcommon sense, Data Information and Knowledge, Types of Knowledge and ExpertKnowledge, KM system Life Cycle Knowledge Creation and Knowledge Architecture. 5. Data Mining(DM) & Delaware House (DW): Data Ware Housing Introduction and General Principle, OLTP, DM Architecture fundamentals, Data Mart Approaches to Architecture, DW Process and Design Data Mining Fundamentals Concepts, DMArchitecture, DM Techniques, Issues and Challenges, DM for Research and Business, DM Tools & Application Text Readings (Latest Edition): 1. Janak Shah “Supply Chain Management” by, Pearson Education. 2. Rangaraj, “Supply Chain Management for Competitive Advantage”, TMH. 3. Ailawadi and Singh, “Logistics Management”, PHI. 4. Elias M. Awad and Hassan M. Ghaziri, “Knowledge Management”, Pearson Education. 5. R Radhakrishnan and S Balasubramanan, “Business Process Reengineering: Text and Cases”, PHI. Suggested Readings (Latest Edition): 1. CSV Murthy, “ERP Text and Case Studies”, Himalaya Publishing House, New Delhi. 2. Andy Oppel, “Data Modeling: A Beginner Guide”, Tata McGraw Hill.

MBA (Financial Administration) IIIrd Semester (2012-14)

FA 307C FINANCIAL ANALYSIS & VALUATION

Course Objective: The objective of teaching this course is to explain the basic techniques of financial analysis and business valuation. Appreciate the linkage between industry analysis, strategic business analysis, accounting analysis, financial analysis and prospective analysis. Discuss how to use various different valuation models, as well as the benefits and limitations of those models. Examination Scheme: The faculty member will award internal marks out of 40 based on three assessments of 20marks each of which best two will be considered. The end semester examination will be of 60marks. Course Contents: 1. Introduction: Limitations of GAAP, Phases of Security Analysis, Security Analysis & Efficient Markets, External Analysis & Internal Analysis, Accounting Analysis & Financial Statements, Financial Statement Analysis, The Economic Balance Sheet. 2. Cost of Equity, Free Cash Flow Model & Analysis, Forecasting Free Cash Flows, The Residual Income Model, Employee Stock Options and Valuations, Analyzing Earnings Quality: Expensing versus Capitalizing, Leases, Inventory, Accounts Receivable and SPE's. 3. Intrinsic Value, Financial Statement Analysis/Forecasting, Forecasting and Valuing Cash Flows, Valuing Projects; Review of Project FCF, Forecasting Working Capital, NPV, IRR. IPO Valuation. 4. Corporate Valuation: Adjusted Book Value Approach, Stock and Debt Approach, Direct Comparison Approach, Discounted Cash Flow Approach, Analysis Historical Performance, Estimating Cost of Capital, Forecasting Financial Performance, Determining the Continuing Value, Calculating the Firms Value and Interpreting the Results, DCF, FCFE. 5. Value Based Management and Methods, Mergers & Acquisitions, Restructuring, Venture Capital Method approach to valuing early stage companies, Understand the approach and methodologies VCs use to arrive at the valuation for an investment, staged-financing. Text Readings (Latest Edition): 1. Stephen Penman, “Financial Statement Analysis and Security Valuation”, McGraw-Hill Education. 2. Krishna G. Palepu, Paul M. Healy, “Business Analysis and Valuation: Using Financial Statements, Text and Cases”, South-Western Educational Publishing. 3. Gerald I. White, Ashwinpaul C. Sondhi, Dov Fried, “The Analysis and Use of Financial Statements”, John Wiley & Sons. 4. McAnally, Sommers, Zhang Easton, “Financial Statements Analysis and Valution”, Cambridge Business Publishers. Suggested Readings (Latest Edition): 1. James M. Wahlen, Clyde Pierce Stickney, Stephen P. Baginski, Mark T. Bradshaw, “Financial Reporting, Financial Statement Analysis and Valuation: A Strategic Perspective: A Strategic Perspective”, Cengage Learning. 2. Cheng Few Lee, “Financial Analysis and Planning: Theory and Application” Addison Wesley Publishing Company.

MBA (Financial Administration) IIIrd Semester (2012-14)

FA308C FININCIAL INSTITUTIONS AND MARKET REGULATIONS

Course Objective: The objective of teaching this course is to enable the students to gain acumen, insight and through knowledge relating to the various aspects of corporate finance, emerging financial services and their regulatory frameworks. Examination Scheme: The faculty member will award internal marks out of 40 based on three assessments of 20 marks each ofwhich best two will be considered. The end semester examination will be worth 60 marks having theoryand cases/practical problems. Course Contents: 1. Indian Financial Institutions (An Overview): Institutions at Apex Level, Investment Institutions, Specialized Development Banks, Housing Finance Institutions, Commercial Banks, Regional Rural Banks, Cooperative Banks, Non-Banking Financial Companies, Regulatory Authorities, Board for Financial Supervision, State Financial Corporations, Unit Trust of India, National Housing Bank, Asset Reconstruction Companies. 2. Market Regulators (An Overview): Reserve Bank of India (RBI): RBI Regulations related to NBFCs and Bank, RBI Guidelines related to Money Market. Securities and Exchange Board of India (SEBI): Disclosure and Investor Protection (DIP), Insider Trading (Prohibition) Regulation, Substantial Acquisition of Firms and Takeover Regulation, 2012, Mutual Fund regulation, SEBI Guideline on FII. Forward Markets Commission (FMC): Power and Functions of FMC. Insurance Regulatory and Development Authority (IRDA): The IRDA Act-Power and Functions of IRDA, IRDA Guidelines for Insurance companies. Pension Fund Regulatory and Development Authority (PFRDA): Constitution, Structure, Administration, Power and Functions of PFRDA, Role as Market Regulators and their Different Guidelines on Specific Matters and Issues Related to P.F. and Pension Funds. 3. International Financial Institutions (An Overview): World Bank, IMF, International Bank for Reconstruction and Development, International Finance Corporation (IFC), International Development Association (IDA), International Centre for Settlement of Investment Disputes (ICSID), Multilateral Investment Guarantee Agency (MIGA), General Agreement on Tariffs and Trade (GATT), Asian Development Bank (AsDB). Text Readings (Latest Edition): 1. BhartiPathak, “Indian Financial System”, Pearson Education. 2. M.Y. Khan, “Financial Services”, Tata McGraw Hill. 3. B.S. Bhatia, G.S.Batra, “Management of Capital Markets, Financial Services andInstitutions”, Deep and Deep Publication. 4. Verma J.C., “Credit Rating: Practice and Procedure”, Delhi: Bharat Law House Pvt. Ltd. 5. P.N. Varshney, D.K. Mittal, “Indian Financial System”, Sultan Chand & Sons. 6. SEBI Manual, Taxman. 7. RBI Manual, Taxman. Suggested Readings (Latest Edition): 1. MachirajuH.R.,“Indian Financial System”, Vikas Publishing House Pvt. Ltd. 2. J.C.Verma, “Venture Capital Finance in India”, Response Books. 3. Dr.Brahmaiah, “Lease Financing”, Himalaya Publication. 4. B.S.Bhatia, G.S.Batra,“Management of Financial Services”, Deep and Deep Publications

5. O.S.Gupta, “Insurances: References to L.I.C. 6. Vasant Desai, “The Indian Financial System and Development”, Himalaya Pub. 7. Clifford Gomez, “Financial Markets, Institutions and Services”, PHI. 8. Pathak, “Indian Financial Systems”, Pearson Education. 9. L.M. Bhole, “Financial Institutions and Markets”, TMH. 10. Different Guidelines and Manuals issued by to the Financial Institutions and Market Regulatory Authorities.

MBA (Financial Administration) IIIrd Semester (2012-14)

FA309C RETAIL BANKING

Course Objective: The objective of teaching this course is to enable the students to gain acumen, insight and through knowledge relating to the various aspects of retail banking, its products, the retail banking segment and the processes for managing retail credit. Examination Scheme: The faculty member will award internal marks out of 40 based on three assessments of 20 marks each of which best two will be considered. The end semester examination will be worth 60 marks having theory and cases/practical problems. Course Contents: 1. Introduction to Retail Banking: Concept of Retail Banking, Main Subsets Of Retail Banking Definition And Characteristics Of Consumer Banking- Change in Bankers’ Perception About Retail Banking and Acceptance of Retail Banking As Risk Diversification Tool-Differences Between Retail Banking, Private Banking & Priority Banking-Segmentation- Reasons for Boom in Retail Banking, Economics of Retail Explosion- Threats of Retail Boom-Importance of Retail Banking to Indian Economy-Quality of Life, Consumption Financing, Lifestyle Lending-Other Sources Of Retail Finance- Non Banking Finance Companies-Chit Funds-Company Deposits-Retail Chains of Consumer Products-Installment Credit Advantages of Bank Finance. 2. Retail Banking Activities: Broad categories of retail banking Products and services, deposit products, Personal, Consumer, Housing loans, Educational loans, Gold Loans etc. 3. Retail Products and Channels: Opening of Various types of Bank accounts, All Channels e.g.-Branch Banking-Distribution Channels-Traditional Banking vs. Branch Banking-Technology Based Channels-ATM-Tele Banking-Internet Banking-Kiosk Banking-Advantages & Disadvantages-Types of Retail Banking Products & Services-Savings Avenues-Payment Facilities-Annuities-Mutual Funds-Asset Side Products-Loans-Productive & Consumption Purposes- Consumer Credit Bill Finance to Individuals Products-Major Subsets-Auto Loans-Home Loans and White Goods Loans Education & Personal Loans & Limits Characteristics-Lifestyle-Related Products. 4. Plastic Money: Products-Origin & Evolution-Types-Characteristics- Credit Cards-Meaning & Definition; Operation Of Credit Cards-Mechanism of Credit Card Operation-Advantages/ Benefits of Credit Cards to Banks, to Cardholders & to Merchant Establishments; Profitability; Disadvantages Of Credit Card-Other Types Of Cards, Such as, Debit Cards, Cheque Cards, Charge Cards, Smart Cards etc-Advantages & Disadvantages-Other Liability Products, Asset Products–Secured/Unsecured-Third Party Products-Other Products (Demat). 5. Recent Trends in Retail Banking: Alternate delivery channels – Customer Relationship management vs. Customer Interaction management (CIM)-Technology as a differentiator- International Trends and Tools. Regulatory Aspects: Microfinance - Urban Retail Products-Factoring. 6. Facilities Management: Payment and Settlement Systems in India & abroad (US & Europe-CHIPS, CHAPS, Fed Wire, TARGET & CIPA etc) Clearing House: Manual, MICR, High Value & National Clearing, Clearing Corporation of India Ltd. Etc. Emerging New System: ECS (Debit & Credit) EFT, NEFT, RTGS; LERM, Remittances through non-banking Channels, etc., Remittance Channels; INFINET, BANKNET, SWIFT etc., Risk Factors for Payments Systems, International Standards on Payment Systems, Role and Concern of Central Bank and Participants, Cost Reduction Exercise. 7. Product Management: Concept of Product Management-Role of Innovation in product designing-Positioning-Customer needs assessment–Segmentation–Enhancements–Feedback- Branding-Promotions and schemes. 8. Sales and Distribution Management: Direct Sales- Strategy of Marketing and Sales in

Banks-Relationship Management-CRM-Customer Protection Laws-Customer Satisfaction-Crosse- Channel Selection and Channel Management- DMA, DSA-Empanelment of Channel Partners- Monitoring a Channel Partner-Integrity- Performance Management- Productivity Rewards. 9. Personal Banking: Concept of Private Banking-Private Banking in Indian banks-Why Private Banking-Private Banking in New Generation Bank - HNI Products- Non Resident Indians & Their Accounts with Indian Banks- Investment Opportunities Available to NRIs in India-Wealth Management- Meaning and Constituents of Wealth Management-Advisory Role-Functions & Responsibilities-Financial Planning & Financial advisory responsibilities-Fiduciary role 10. Securitization: SARFAESI Act, Follow up of adultants/recovery- notices, visits NPA Clarifications, OTS-Asset Securitization Act-Meaning and importance as a Risk Transfer/Diversification Measure-Legal framework-Advantages & disadvantages- Procedure of Recovery Under the Act-Sell Down-Buy Out-Risk Diversification Tool - Rating of a pool - Recent Regulatory Guidelines-Problems of implementation in Indian Environment- RBI Guidelines on recovery agents. 11. NPA Management in Retail Banking: Concept, Definition and significance of NPA, Evolution of NPAs management in Indian Banking-New tools of recovery-DRTs, Lok Adalat, One time settlement. 12. Retail Credit and Risk Management: What is Risk-How Banks are affected by Risks-Types of Risks Faced by Banks-Impact of Retail Banking on Bank’s Risk Profile-Risk Prone Area-Indicators of Risk-Risk Mitigating Measures-Risk Measurement-Pricing Of Products Based On Risk Profiles-Management of Risks in Banks-Definition–Credit Vs. Risk-Risks Involved In Various Segments -Validation of Ability/ Intention to Pay-Credit Process (Including Scoring, Outsourcing)-Verification of Loanees- Validation of Ability/ Intention to Pay, Verification of Loanees by Internal Agencies vis, a vis. Outsourcing-Legal Documentation- Need, Process and Time Schedule-Risks Involved in Various Segments of Retail Loans-Operational Risks-Operational Risks Management Strategies-Operational Risks and IT-Delinquency Management-Provisioning Norms-Disaster Recovery Management-Portfolio Management-Credit Bureaus. 13. Regulatory Environment: Need for Regulation in Banking, Internal Regulation-RBI-Business Facilitator-Model-External Regulation-Know - Capital allocation and risk assignment norms-End user monitoring - Basle Norms - Sarbanes Oxley - Business Continuity Management, AML. Text Readings (Latest Edition): 1. Croxford, Hugh et al., “The Art of Better Retail Banking”, John Wiley and sons Inc. 2. Leichtfuss, Reinhold, “Achieving Excellence in Retail Banking”, John Wiley and sons Inc. 3. Keith Pond, “Retail Banking”, Global Professional Pub. Suggested Readings (Latest Edition): 1. Dalip Mehra, “Retail Banking”, Jain Book Depot, Delhi. 2. Indian Institute of Banking & Finance (IIBF), “Retail Banking”, Macmillan Publishers India. 3. O.P. Agarwal, “Fundamentals of Retail Banking”, Himalaya Publishing House. 4. O.P. Agarwal, “Guide to CAIIB: Retail Banking In India”, Skylark Publications

MBA (Financial Administration) IIIrd Semester (2012-14)

FA310C PERSONAL FINANCIAL PLANNING

Course Objective: To enable the students to gain acumen, insight and through knowledge relating to the various aspects of retail banking, its products, the retail banking segment and the processes for managing retail credit. Examination Scheme: The faculty member will award internal marks out of 40 based on three assessments of 20 marks each of which best two will be considered. The end semester examination will be worth 60 marks having theory and cases/practical problems. Course Contents: 1. Introduction to Financial Planning: An overview of Financial Planning Process, General Principles of Cash-Flow Planning, Budgeting, Legal Aspects of Financial Planning and Acquaints, Concepts of Risk Management, Investments, Insurance, Retirement Solutions, Tax and Estate Planning. 2. Risk Analysis and Insurance Planning: Principles of Risk Analysis and Insurance Planning, Identification of Client’s Risk Exposure, Selection of Appropriate Risk Management Techniques. Basic Insurance Products of General and Life Insurance; Analysis of Insurance Needs: Medical, Disability, Life and General Insurance, Determination of the Type and Amount of Insurance Best Suited to the Client’s Situation and Needs. 3. Retirement Planning and Employee Benefits: Identification of Retirement Needs, Significance of Retirement Planning, Analysis Techniques, Review of Retirement Employee Benefits (EPF, PPF, Superannuation Fund etc.), Process of Developing a Retirement Plan, Appropriate Retirement Solutions. 4. Investment Planning: Understanding Investment Needs and Risk Appetite, Solutions for Wealth Creation, Categories of Investments, Evaluation Methods, and Economic Factors, Risk and Return Analysis, Valuation Techniques, Asset Allocation Procedures and Portfolio Performance Assessment. Various Techniques and Concepts used in Portfolio Construction and Management. 5. Tax and Estate Planning: Personal Taxation and Tax Planning- An Overview of Individuals Income Tax and Wealth Tax. Key Tax Components, Estate Planning, Development of Estate Plan, Including Assessment of Important Techniques of Estate Planning: Wills, Gifting Schemes, Powers of Attorney and Joint Property Ownership. 6. Advanced Financial Planning: Development of Comprehensive Financial Plan, Collection and Evaluation of Personal Data, Development, Recommendation and Execution of Appropriate Strategies, Monitoring and Evaluation of Financial Plans, Review of the Legal, Ethical and Regulatory Issues Affecting Financial Plan. Text Readings (Latest Edition): 1. IMS Proschool, “Introduction to Financial Planning”, Tata McGraw Hill Education. 2. Jeff Madura, “Personal Finance”, Pearson Publication. 3. Jack R. Kapoor, Les R. Dlabay, Robert J. Hughes, “Business and Personal Finance”, McGraw-Hill/Glencoe. 4. Madhu Sinha,“Financial Planning: A Ready to Reckoner”, Tata McGraw - Hill Education Suggested Readings (Latest Edition): 1. Sid Mittra, Tom Potts, Leon LaBrecque, “Practicing Financial Planning for Professionals”, RH Publishing. 2. Jeffrey H. Rattiner, “Getting Started as a Financial Planner”, Bloomberg Press. 3. Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley, “Personal Financial Planning”, Cengage Learning.