THIRD SEMESTER - BANKING & INSURANCE
SUBJECT
PAPER TITLE CREDITS MARKS
CODE
MBABI-3001 PROJECT PLANNING AND ANALYSIS 4 100
SECTORAL SUBJECT – 3
MBABI-3002 INTERNATIONAL BANKING 4 100
SECTORAL SUBJECT – 4
MBABI-3003 MANAGEMENT OF BANKING SERVICE OPERATIONS 4 100
SECTORAL SUBJECT – 5
MBABI-3004 LIFE AND GENERAL INSURANCE 4 100
FUNCTIONAL SPECIALIZATION GROUP – A: MARKETING
MARKETING RESEARCH AND CONSUMER
MBABI-M-3005
BEHAVIOUR
MBABI-M-3006 ADVERTISING AND SALES MANAGEMENT 100
4
MBABI-M-3007 INTERNATIONAL MARKETING
MBABI-M-3008 INTERNET MARKETING
FUNCTIONAL SPECIALIZATION GROUP – B: FINANCE
INVESTMENT ANALYSIS AND PORTFOLIO
MBABI-F-3009
MANAGEMENT
MBABI-F-3010 STRATEGIC COST MANAGEMENT
4 100
MBABI-F-3011 FINANCIAL ENGINEERING
MERGERS, ACQUISITIONS AND CORPORATE
MBABI-F-3012
RESTRUCTURING
FUNCTIONAL SPECIALIZATION GROUP – C: HUMAN RESOURCE
MANAGEMENT
MBABI-H-3013 INTERNATIONAL HUMAN RESOURCE MANAGEMENT
MBABI-H-3014 ORGANIZATIONAL DEVELOPMENT
4 100
MBABI-H-3015 LABOUR LAWS
MBABI-H-3016 PERFORMANCE MANAGEMENT
FUNCTIONAL SPECIALIZATION GROUP – D: OPERATIONS
MANAGEMENT
MBABI-O-3017 SUPPLY CHAIN MANAGEMENT
MBABI-O-3018 ADVANCED PRODUCTION MANAGEMENT
4 100
MBABI-O-3019 BUSINESS PROCESS RE-ENGINEERING
MBABI-O-3020 MANAGEMENT OF TECHNOLOGY AND INNOVATION
TOTAL 32 800
Note:- The student has to opt for ONE Specialization Group and select TWO papers out of the papers
offered.
Paper Code: MBABI-3001 PROJECT PLANNING AND ANALYSIS Credit=4
Marks=100
Learning Objectives:
The objective of this course is to promote a sound understanding of the theory and practice of project management.
More specifically it introduces students to the purpose, principles, problems and challenges, concepts, techniques,
and practice of project management and its various facets; impart skills in project planning, execution and control
methods; introduce students to project management software and applications.
Section – A
Introduction to Project Management: Meaning and Definition of a Project, Objectives of a Project, Project Life
cycle; Steps in Project Planning; Generation and Screening of Project Ideas- Generation of ideas, Monitoring
the environment, Regulatory framework for Projects, Corporate Appraisal, Preliminary Screening, Project Rating
Index, Porter model for estimation of profit potential of industries.
Section – B
Market and Demand Analysis- Situational analysis and Specification of objectives, Collection of secondary
information, Conduct of market survey, Characterization of the market, Demand forecasting, Market planning;
Technical Analysis- Study of material inputs and utilities, manufacturing process and technology, product mixes,
plant capacity, location and site, machinery and equipment, structures and civil works, project charts and layouts;
Project Costing and Finance: Cost of project, Cost of production, Means of Financing Project, Working capital
requirements and its financing, Profitability Projections, Projected Cash flow statement and projected Balance
Sheet.
Section – C
Project Appraisal: Time Value of Money, Project Appraisal Techniques- Payback Period, Accounting Rate of
Return, Net Present Value, Internal Rate of Return, Benefit Cost Ratio, Social Cost Benefit Analysis, Assessment
of various methods. Risk Analysis: Measures of Risk, Sensitivity Analysis, Scenario analysis, Break-even method,
Simulation Analysis, Decision Tree Analysis, and Application of project appraisal techniques in current
environment. Social cost benefit analysis (SCBA)- Rationale for SCBA,UNIDO approach to SCBA, Little and
Mirrlees approach to SCBA.
Section – D
Project Management: Need for Project Management, Project Management Framework, forms of project
organization, project control, human aspects of project management, prerequisites for successful project
implementation; Network techniques for project management: Development of project network, time
estimation, determination of critical path, scheduling when resources are limit, PERT and CPM models, Project
review and administrative aspects- initial review, performance evaluation, abandonment analysis
Suggested Readings:
1. M. Patel: Project Management-Strategic Financial Planning Evaluation and Control, Vikas Publishing.
2. Prasama Chandra: Projects - Planning, Analysis, Selection, Implementation and Review, Tata McGraw Hill.
3. Esty, B. C., Modern Project Finance: A Case Book, John Wiley and Sons
4. Robert K. Wysocki, Robert, Bick and David B, Crane: Effective Project Management, John Wiley and Sons.
5. E.C. Benjamin: Modern Project Finance-A case book, John Wiley and Sons.
6. Gatti, S., Project Finance in Theory and Practice: Designing, Structuring, and Financing Private and Public
Projects, Academic Press.
7. I.M.D. Little and J.A. Mirrlees: Project Appraisal and Planning for Developing Countries, Oxford and IBH
Publishing Co.
8. P.K. Nevitt and F.J. Fabozzi: Project Financing, Euromoney Books.
Paper Code:MBABI-3002 INTERNATIONAL BANKING Credit=4
Marks=100
Learning Objectives:
The objective of this course is to familiarize learners with the importance and techniques used for
effective operations and working of the international banking dynamics.
Section – A
International and multinational banking: Introduction to International Banking, Organizational
Features of International Banking: Resident representatives, bank agencies, foreign branches, foreign
subsidiaries and affiliates, consortium banks. Policy Implications of International Banking. Global
trends and developments in International Banking: financial markets interdependence and securitization,
deregulation, technology and financial innovations. Operations of foreign branches of Indian banks.
correspondent banking-Bank accounts–NOSTRO and VOSTRO accounts, SWIFT, CHIPS, CHAPS,
FEDWIRE
Section – B
International Private Banking, Wholesale banking & Retail banking. International inter-bank business,
Profitability of International Banking Operations, Role and function of overseas banking, foreign
lending, international lending policies and practices, the payment mechanism, settlement system
followed in US, UK, and Switzerland and Japan, International financial center’s offshore banking units;
International Financial Institutions: IMF, IBRD, BIS, IFC, ADB, WTO.
Section – C
Investment Banking. The Eurocurrency market, international debt management, Major
recommendations of the various expert group on forex markets, letter of credit mechanism and UCPDC/
URC/ Buyer’s /Sellers credit, bilateral trade, counter trade, high seas sales.
Section – D
Various facilities to exporters and importers including forfeiting and factoring, NRI accounts – Indian
rupee and foreign currency accounts, risk and credit analysis, management of foreign exchange risk,
current banking practice in the analysis and control of foreign portfolio risk, A modern Portfolio Theory
Oriented approach to assessment of the riskiness of bank’s foreign claims, loans to government and
sovereign risk.
Suggested Readings:
1. Baye, M.R.and.Jansen, D.W., Money banking and financial markets, AITBS
2. Bose, R. N., Fundamentals of International Banking, Macmillan India Pvt Ltd.
3. Less, F. A., International banking and finance
4. Rajwade, A.V., Foreign exchange, International Finance, Risk management, Academy of
Business Studies Edtn.
5. Roussakls, E. N. , International banking principles and practice
Paper Code:MBABI-3003 MANAGEMENT OF BANKING SERVICE Credit=4
OPERATIONS
Marks=100
Learning Objectives:
The focus of the course is directed towards the various operations performed in banks and the different
ways of managing risk faced by banks giving knowledge about the use of technology in banking.
Section – A
Introduction to Banking Operations: The Changing Nature of Banking Operations, Trends, Issues
and Challenges. Customer relationship management: CRM, Importance, Need of Customer
Relationship Management, Stages in Development of CRM, Gap analysis, Models of CRM, Aspects of
Managing CRM, A generic model providing a single unified view of CRM, Relevance in banking.
Section – B
Services Design and Delivery Strategies in Banks: Products and Services Offered by Banks,
Response of Banks with Newer Services & Delivery Mechanisms and Delivery Strategies in a Bank.
Information technology in Indian Banks: Key issues and Challenges. Introduction to e-Banking:
Origin of e-Banking, Role of Technology in e-Banking, Significance, latest trends in e-banking,
Constraints.
Section – C
Popular products and services in electronic banking: Internet banking, Mobile banking and other
sources, Market assessment for e-banking services, e-banking: a customer’s perspective. Electronic
payment systems in Banks: Various payment systems: ECS (Debit & Credit) EFT, NEFT,RTGS,
Communication Network.
Section – D
Security Considerations in e-Banking: The Need for Security, Concerns and Risks in e-Banking,
Sources and Types of Risks, Causes of Risks, Disaster Recovery and Contingency Plan, Strategies for
Risk Management, Effective Management of Risk.
Suggested Readings:
1. Vasant C Joshi and Vinay V. Joshi: Managing Indian Banks: Challenging Ahead, Sage Publications.
2. M.L. Tannon: Tannon’s Banking Law and Practice in India, Lexisnexis Butterworths.
3. R K Mittal, A K Saini and Sanjay Dhingra: Emerging Trends in the Banking Sector, Macmillan.
4. Jyotsna Sethi and Nishwan Bhatia: Elements of Banking, Prentice Hall India.
5. S. Padmalatha and Justin Paul: Management of Banking and Financial Services, Pearson Education.
6. K.P.M. Sundaram and P.N. Varshney: Banking Theory Law and Practice, Sultan Chand and Sons.
7. M.N. Gopinath: Banking Principles and Operations, Snowhite Publications.
Paper Code:MBABI-3004 LIFE AND GENERAL INSURANCE Credit=4
Marks=100
Learning Objectives:
The course aims at providing in-depth knowledge of various aspects of Life & General Insurance
including premium computation, underwriting, computation of benefits and knowledge of claims,
nomination, assignment.
Section – A
Computation of Premium: Introduction, Age Factor, Factors of Calculating the Premium, Loadings,
Basic elements and factors in computation of Life Insurance premiums, Extra Premium. Underwriting
Procedure: Classification of risk, Moral hazard, Financial underwriting, Underwriting practices
followed by private and public insurers in India. Computation of Benefits: Introduction, Grace period,
Lapse and non-forfeiture options - Surrender Value, Guaranteed Surrender Value, Paid Up Value.
Section – B
Insurance Documents: Introduction, Documents, Prospectus, Proposal Form, First Premium Receipt,
Policy Document, Endorsement, Renewal Notice, Bonus Notice. Claims: Introduction, Maturity Claim,
Death Claims. Nomination and Assignment
Section – C
Fire Insurance: Introduction, Features, Coverage, Underwriting procedure, Claim procedure. Health
Insurance: Introduction, Features, Types of health Insurance, Coverage, Underwriting procedure,
Claim procedure.
Section – D
Vehicle Insurance: Introduction, Features, Coverage, Underwriting procedure, Claim procedure.
Personal Accidents Insurance: Introduction, Features, Types of Personal Accidents Insurance,
Coverage, Underwriting procedure, Claim procedure.
Suggested Readings:
1. Dheeraj Razdan: Insurance Principles, Application and Practices, Cyber Tech Publication.
2. Neelam Gulati: Principles of Insurance Management, Excel Books
3. Mark S. Dorfman: Introduction to Risk Management & Insurance, Pearson Education.
4. Rao M Gangadhara Sivaramakrishna Sheela (Eds.): New Deal in Insurance, Excel Books.
5. Dhiraj Razdan: Modern Insurance regulations and its supervision, Cyber Tech Publication.
6. Emmett J. Vaughan & Theresa Vaughan: Fundamentals of Risk and Insurance, Wiley India.
7. P.S. Palande, R.S. Shah and M L Lunawat: Insurance in India - Changing Polices and Emerging
Opportunities, Sag Publications.
8. K. C. Mishra and G. E. Thomas: General Insurance - Principles and Practices, Cengage Learning.
Paper Code: MBABI-F-3009 INVESTMENT ANALYSIS AND Credit=4
PORTFOLIO MANAGEMENT
Marks=100
Learning Objectives:
The course has been designed to develop understanding of different concepts relating to analysis of
investment and portfolio management and to provide exposure to derivatives market, its working and
inputs on strategies used in derivatives market.
Section – A
Introduction to Investment Management: Concept and objectives of investment, Difference between
Investment and Speculation, Investment and Gambling, Meaning of Investment Management,
Investment Management Process, Investment Alternatives, Features of Investment Avenues, Types of
Management Strategies, Approaches to Investment. Risk and Return: Concept of Risk, Components of
Investment Risk, Measurement of Risk through Standard Deviation, Regression Equation, Covariance,
Concept of Return, Expected Yield, Actual Yield, Holding Period Yield, Relationship between Risk and
Return Efficient Market Theory: Random walk, Weak form, semi-strong and strong form of market,
Empirical tests, Comparison between random walk.
Section – B
Fundamental and Technical Analysis: Macro-Economic Analysis, Forecasting, Industry Analysis,
Sensitivity of Business Cycle, Industry Life Cycle Analysis, Porter Model of Assessment of Profit
Potential of Industries, Meaning of Company Analysis, Strategy Analysis, Accounting Analysis,
Financial Analysis, and Estimation of Intrinsic Value. Meaning of Technical Analysis, Difference
between Technical and Fundamental Analysis, Assumptions, Tools, Dow Theory, Elliott Wave theory.
Section – C
Portfolio Analysis and Selection: Traditional and Modern Portfolio Theory, Merits of Diversification:
Diversification and Portfolio Risk, Portfolio Return and Risk, Calculation of Portfolio Risk, Markowitz
Theory, Efficient Frontier for two securities, Efficient Frontier for n-securities, Optimal portfolio,
Sharpe single index model, Importance of Beta, Capital Asset Pricing Model, Security Market Line,
Distinction between capital market line and security market line, Zero Beta CAPM, Tax adjusted
CAPM, Limitations of CAPM, Arbitrage Pricing Theory.
Section – D
Portfolio Revision: Meaning, Need, Techniques of Portfolio Revision, Formula Plans, Rules Regarding
Formula Plans, Constant Rupee Value Plan, Constant Ratio Plan, Variable Ratio Plan, Modifications,
Rupee Averaging Technique. Valuation of Security: Valuation of Equity Shares: Balance Sheet
Techniques, Relative Valuation Techniques, Discounted Cash Flow Techniques, Valuation of Bonds:
Bonds with a Maturity Period, Perpetual Bonds, Valuation of Preference Shares.
Suggested Readings:
1. Elton et. al:. Modern Portfolio Theory and Investment Analysis, Wiley Publications
2. Reilly Brown, Investment Analysis and Portfolio Management, Cengage Learning
3. Bodie et, al. Investments, Tata Mcgraw hill
4. Prasanna Chandra, Investment Analysis and Portfolio Management, Tata McGraw Hill.
STRATEGIC COST MANAGEMENT
Paper Code: MBABI-F-3010 Credit=4
Marks=100
Learning Objectives:
The objective of the course is to acquaint the learners with the various methods of cost
determination and tools and techniques of cost control from strategic perspective
Section – A
Strategic Cost Management: Meaning, Nature and Significance of Strategic Cost Management,
Limitations of Traditional Costing, Difference between Conventional Cost Analysis and Strategic Cost
Analysis, Financial, Operational and Strategic Views of Cost, Contemporary Cost Management Tools.
Activity Based Costing and Management: Treatment of Cost, Steps, Advantages, Disadvantages
Section – B
Value Analysis: Meaning of Value Analysis and value addition, Strategic Application of Value
Chain Analysis, Customer Profitability Analysis. Strategic Positioning Analysis, Critical Success
Factors Analysis. Productivity improvement techniques: Various tools and techniques including Kaizen
and Six Sigma.
Section – C
Variance Analysis : Basics of Standard Costs, Material Variances, Labour Variances, Overhead
Variances, Difficulties in Measuring Variances, Evaluation of Control based on Standard Costing,
Numerical Problems. Functional- based planning and control; budgeting – nature, administration
and effectiveness; budgeting cycle; ZBB; performance budgeting; human aspects of budgeting.
Responsibility Accounting, Measuring the performance of investment centre – ROI, RI, EVA,
Behavioural aspects of responsibility accounting, Transfer Pricing.
Section – D
Valuation of Intangible Assets: Meaning of Intangible Assets, Acquired and Generated Assets,
Importance, Methods of Valuation for Goodwill, Brands, Patent. Relevant Indian and International
accounting standards, Current Scenario in India, Numerical Problems. Performance Evaluation :
Traditional Framework of Performance Evaluation, Performance Measurement System, Balanced
Scorecard, Implementation, Strengths and Weaknesses of Balance Scorecard, Behavioral Views,
Rewards to performance, Incentive Compensation. Cost of Quality: Cost of Conformance and Cost of
Non-Conformance
Suggested Readings:
1. John K. Shank , Vijay Govindarajan: Strategic Cost Management, Free Press.
2. Callie Berliner: Cost Management for Today ’s Advanced Manufacturing - The CAM-1
Conceptual Design, Harvard Business School Press.
3. Robert S. Kaplan and Robin Cooper: Cost & Effect, Harvard Business School Press
4. Blocher et. al. Cost Management- A Strategic Emphasis, McGraw -Hill.
5. S C Vaidya and Suveera Gill, Cost Management – A Strategic Approach, 2009
Paper Code:MBABI-F-3011 FINANCIAL ENGINEERING Credit=4
Marks=100
Learning Objectives:
This course aims at developing understanding and analytical skills among participants regarding
applications of Financial Engineering.
Section – A
Meaning of Financial Engineering, Factors Contributing to Growth of Financial Engineering, Financial
Engineering Process and Strategies.
Section – B
Credit Analysis, Risks: sovereign and country risks, industry risks, management factor, financial risk
analysis. Credit ratings: credit spreads, interest coverage ratio and its effect on industries classification,
process of credit ratings.
Section – C
Options: Principles of options, factors affecting option value, option pricing models: single stage and
two stage binomial models, Black Scholes. Strategies: bullish options strategies, bearish options
strategies and neutral strategies, Collar spread. Interest rate options: calls and puts,caps, floors and
collar. Swaps, Interest rate swap: definition, structure of swaps, valuation of swap at outset. Currency
swap: definition, valuation of currency swap.
Section – D
Forwards and Futures: introduction, features, hedging with forward contracts, futures pricing models,
difference between forwards and futures contracts. Hedging with Futures: hedging concepts including
long hedge & short hedge, the basis, risks in hedging. Minimum variance hedge ratio, price sensitivity
hedge ratio and stock index futures hedging, Hedging strategies. Credit Derivatives: Credit default
swap and Total return swap. Application and Case studies.
Suggested Readings:
1. Salih N. Neftci: Principles of Financial Engineering, Academic Press
2. Marshall, Bansal: Advanced Finance Financial Engineering, P.H.I
3. David Dubofsky and Thomas Miller: Derivatives-Valuation and Risk management. Oxford
University Press.
4. Don Chance: An introduction to Derivatives and Risk Management Cengage Press, Delhi
5. James A. Overdahl:Financial Derivatives: Pricing and Risk Management John Wiley & Sons,
Delhi
6. Andrew M. Chislohm: Derivatives Demystified: A Step-by-Step Guide to Forwards, Futures,
Swaps and Options John Wiley & Sons, Delhi
7. Ganguin, Bilardello: Standard & Poor's Fundamentals of Corporate Credit Analysis McGraw
Hill, Boston
8. T.S. Beder,C.M Marshall: Financial Engineering: The Evolution ofa Profession John Wiley &
Sons, Delhi
Paper Code: MBABI-F-3012 MERGERS, ACQUISITIONS AND Credit=4
CORPORATE RESTRUCTURING
Marks=100
Learning Objectives:
Liberalized economy has generated many opportunities of combining businesses to create wealth. The
emphasis is to understand about mergers, acquisition and corporate restructuring.
Section – A
Mergers: Meaning of Merger, Reasons for M&A, Classification of Mergers, Types of Merger:
Horizontal Mergers, Vertical Mergers, Conglomerate Mergers, Accretive Merger and Dilutive Merger,
Reverse Merger: Process and Myths about Reverse Merger. Acquisition: Meaning of Acquisition,
Types of Acquisition: Asset Purchase, Stock Purchase, Difference between Mergers and Acquisition,
Motives behind M & A, Value Drivers in M & A, Reasons for failure of M&A, Process ofM & A:
Planning phase and implementation Phase. M&A Analysis: Synergy Value Determination,
Determination of Price Paid to Target, Financing of M&A: Debt Financing, Equity Financing, Cash
financing., Determination of combined company's new capital structure, cost of equity, cost of capital
and Share Exchange Ratio Determination.
Section – B
Valuation: Meaning, Factors to be considered for Valuation, Types of values: Going concern Value,
Liquidation Value and Market Value, Methods of Valuation: Asset based Valuation method, Earning
based valuation, Market based valuation, Book value approach, Stock and Debt approach, Direct
Comparison Approach and Discounted Cash flow method of valuation. Cross Border Acquisition:
Meaning, Need, Benefits of Cross Border Acquisition and Difficulties in Cross Border Acquisition. Post
Merger Issues: Tools for Integration, Strategies for Post Merger Success, Post merger growth
strategies, Human aspects in mergers and acquisition, Failures in Post-merger Integration and
Successful Post-merger Integration.
Section – C
Corporate Restructuring: Meaning, Conceptual framework, McKinsey 7S Model, Reasons for
restructuring, Barriers to corporate restructuring, Key Elements, Types of corporate restructuring:
Financial. Portfolio and Organisational Restructuring, Hardware and Software Restructuring, Strategic
Options in restructuring, Implications of corporate restructuring for investors, customers, management,
employees and others. Restructuring through Joint Ventures: Meaning, Characteristics, Objective,
Rationales, Reasons for failure of Joint Venture. Restructuring through Buyouts: Leveraged buyouts:
Meaning' of Leveraged buyouts, Types, Criteria for identifying the leveraged buyouts, strategic analysis
investment/divestment. Management Buyouts: Meaning of Management Buyouts, Characteristics,
Benefits; General Economic and Financial factors for Buyouts, Sources of Gains in Buyouts: Tax
Benefit, Management Incentives, Wealth Transfer Effect, Asymmetric Information and Under pricing.
Efficiency considerations.
Section – D
Due Diligence: Concept, Need, Transaction requiring Due-diligence, Process, Types: Financial, Legal,
Operational, Intellectual, IT and Human resource Due Diligence, Due diligence and M&A failure.
Strategic Alliance: Types, Reasons, Implications of Strategic Alliance, Strategic Management of
Alliances. Divestitures: Meaning, Types, Reasons for Divestiture, Benefits of Divestiture. Case studies.
Suggested Readings:
1. Aurora, Shetty and Kale, Mergers and Acquisition, Oxford University Press.
2. Weston, Chung and Hoag, Mergers, Restructuring and Corporate Control, PHI Learning
3. Krishnamurti and Vishwanath, Mergers, Acquisition and Corporate Restructuring, Sage
4. Vadapalli, Mergers, acquisition and Business Valuation, Excel Publication.
5. DePamphilis: Mergers, acquisitions and other restructuring activities, Elsevier Limited
