Syllabus

UNIVERSITY OF MADRAS

M.COM BANK MANAGEMENT

CHOICE BASED CREDIT SYSTEM

REGULATIONS

(w.e.f. 2015-2016)

1. Condition for admission:

A candidate who has passed the B.Com. B.Com/B.A (Corporate Secretaryship), B.Com (Acc Fin) (B.A./B.Com. Co.oper) B.C.S., B.B.A., B.Com (Bank Management), B.A Business Economics or B.A.Economics, B.Sc. (Stat.) or B.Sc.(Maths) Main with Accountancy and costing and Banking as allied / Ancillary subject Degree examination by securing not less than 50% of marks in the aggregate in the Main and ancillary subjects of this University or an examination of some other University accepted by the Syndicate as equivalent thereto subject to such conditions as may be prescribed therefor shall be permitted for appear and qualify for M.Com. Bank Management Degree examination of this University .

2. ELIGIBILITY FOR THE AWARD OF DEGREE:

A candidate shall be eligible for the award of the degree only if he/she has undergone the prescribed course of study in a college affiliated to the University for a period of not less than two academic years, passed the examination of all the four semesters prescribed earning 90 credits and fulfilled such conditions as have been prescribed therefor.

3. Duration of the course

The duration of the course is for two academic years consisting of four semesters.

4. EXAMINATION:

There shall be four examinations, first semester examination at the middle of the first academic year and the second semester examination at the end of the first academic year. Similarly the third and fourth semester examinations will be held at the middle and the end of the second academic year respectively.

5. Course of study and scheme of examinations :

The scheme of examinations for different semesters shall be as follows:

Vide ANNEXURE – A

The following procedure be be followed for Internal Marks:

Theory Papers: Internal Marks 25

Best Two tests out of 3 15 marks

Attendance 5 marks

Assignment/Seminar 5 marks

Practical: Internal Marks 40

Attendance 5 marks

Practical Test best 2 out of 3 30 marks

Record 5 marks

Project:

Internal Marks best 2 out of 3 presentations 40 marks

Viva 40 marks

Project Report 120 marks

6. Requirements for Proceeding to subsequent semesters:

(i) Candidates shall register their names for the First semester examination after the admission in the PG courses.

(ii) Candidates shall be permitted to proceed from the First Semester upto the Final Semester irrespective of their failure in any of the Semester Examination subject to the condition that the candidates should register for all the arrear subjects of earlier semesters along with current (subject) Semester subjects.

(iii) Candidates shall be eligible to proceed to the subsequent semester, only if they earn, sufficient attendance as prescribed therefore by the Syndicate from time to time.

Provided in case of candidate earning less than 50% of attendance in any one of the semester due to any extraordinary circumstance such as medical grounds, such candidates who shall produce Medical Certificate issued by the Authorised Medical Attendant (AMA), duly certified by the Principal of the College, shall be permitted to proceed to the next semester and to complete the course of study. Such candidate shall have to repeat the missed semester by rejoining after completion of final semester of the course, after paying the fee for the break of study as prescribed by the University from time to time.

7. PASSING MINIMUM:

There shall be no Passing Minimum for Internal.

For External Examination, Passing Minimum shall be of 50%(Fifty Percentage) of the maximum marks prescribed for the paper for each Paper/Practical/Project and Viva-voce.

In the aggregate (External + Internal) the passing minimum shall be of 50% .

Grading shall be based on overall marks obtained (internal + external).

8. CLASSIFICATION OF SUCCESSFUL CANDIDATES:

Candidates who secured not less than 60% of aggregate marks (Internal + External) in the whole examination shall be declared to have passed the examination in the First Class.

All other successful candidates shall be declared to have passed in Second Class.

Candidates who obtain 75% of the marks in the aggregate (Internal + External) shall be deemed to have passed the examination in First Class with Distinction, provided they pass all the examinations (theory papers, practicals, project and viva-voce) prescribed for the course in the First appearance.

9. GRADING SYSTEM:

1. Passing Minimum is 50% of the ESE and also 50% of the maximum of that

paper/course.

2. Minimum Credits to be earned:

For TWO year Programme: Best 90 Credits

(Part A (80 Credits) : Core , Elective, Non-major Electives and Extra Disciplinary and

Part B (10 Credits) : Soft skills and Internship)

For THREE year Programme: Best 135 Credits.

(Part A (120 Credits) : Core, Elective, Non-major Electives and Extra Disciplinary and

Part B (15 Credits) : Soft skills and Internship)

For a Semester :

GRADE POINT AVERAGE [GPA] = ∑i Ci Gi / ∑i Ci

Sum of the multiplication of grade points by the credits of the courses

GPA = ----------------------------------------------------------------------------------

Sum of the credits of the courses in a semester

For the entire programme:

CUMULATIVE GRADE POINT AVERAGE [CGPA] = ∑n∑i CniGni /∑n∑i Cni

Sum of the multiplication of grade points by the credits of the entire programme

CGPA= -----------------------------------------------------------------------------------------------

Sum of the credits of the courses of the entire programme

10. RANKING:

Candidates who pass all the examinations prescribed for the course in the first appearance itself alone are eligible for Ranking / Distinction.

Provided in the case of candidates who pass all the examinations prescribed for the course with a break in the First Appearance due to the reasons as furnished in the Regulations under “Requirements for Proceeding to subsequent Semester” are only eligible for Classification.

11. PATTERN OF QUESTION PAPER:

PART –A (50 words): Answer 10 out of 12 Questions 10 x 1 = 10 marks

PART –B (200 words):Answer 5 out of 7 Questions 5 x 5 = 25 marks

PART –C (500 words):Answer 4 out of 6 Questions 4 x 10 = 40 marks

12. APPEARANCE FOR IMPROVEMENT:

Candidates who have passed in a theory paper / papers are allowed to appear again for theory paper / papers only once in order to improve his/her marks, by paying the fee prescribed from time to time. Such candidates are allowed to improve within a maximum period of 10 semesters counting from his/her first semester of his/her admission. If candidate improve his marks, then his improved marks will be taken into consideration for the award of Classification only. Such improved marks will not be

counted for the award of Prizes / Medals, Rank and Distinction. If the candidate does

not show improvement in the marks, his previous marks will be taken into

consideration.

No candidate will be allowed to improve marks in the Practicals, Project, Viva-voce, Field work.

13. TRANSITORY PROVISION:

Candidates who have undergone the course of study prior to the academic year 2015-2016 will be permitted to appear for the examinations under those Regulations for a period of three years i.e., upto and inclusive of April/May 2018 Examinations. Thereafter, they will be permitted to appear for the examination only under the Regulations then in force.

APPENDIX-23(S)

UNIVERSITY OF MADRAS

M.COM - DEGREE COURSE IN BANK MANAGEMENT

CHOICE BASED CREDIT SYSTEM

SYLLABUS (w.e.f. 2015-2016)

PAPER I - INDIAN FINANCIAL. SYSTEM

OBJECTIVES

1. Know the role of Government for economic Development

2. Familiarize with Government budget

3. Know the Indian tax system (Both direct and indirect)

4. Impart Knowledge about Fiscal federalism in India

5. Analyze the role of fiscal policy

UNIT-I

Role of Government in Indian economy Government as an investor, economic stabilizer, an intervention to correct market failures: and promote Welfare - public good; private good, merit good and social good - planning for economic development.

UNIT-2

Government budget: Capital and current- Economic Classification of budget - Sources of revenue - tax and non-tax Revenues - measures of deficit - alternative measures of resource mobilization – their impact on growth, distribution and prices.

UNIT-3

Indian tax system - Structure of taxes - Direct taxes, features of personal income, taxation in India – Corporation. income tax - its failure, tax treatment of depreciation, tax incentives - Indirect taxes: customs and excise duties, sales tax, octroi, property tax, value-added tax; modvat non-tax revenues - Chelliah Committee report.

UNIT-4

Fiscal- federalism in India: Assignment of functions to appropriate levels of governrnent - center- state financial relations in India - problems of state- local financial relations - financial resources to Panchayat Raj and other local governments.

UNIT-5

. Public dept: Source of public debt- trends and composition of public debt burden of public debt- debt management in India link between fiscal and monetary operations - fiscal policy objectives, targets and instruments.

REFERENCES:

1. Musgrave R. A., & Musgrave P. A., Public finance in theory and practice. New York: Mc Grawl-lill. 1976

2. Chefliah R.J., Fiscal policy in under developed countries, Geor Allen end Unwin, 1971.

3. Durvey D.N.; (Ed.), Readings in Indian Public Finance, Chanakya, 4. ChelliahR:J, Tax reforms Committee Report, Government of India, 1992.

4. Government of India, Reports of Finance Commissions. Government of India, Economic survey (Annual report)

PAPER II- CENTRAL BANKING

OBJECTIVES

1. Learn about the organization of the RBI

2. Analyze the various phases of RBI

3. Familiarize with RBIs exchange management and control

UNIT-1

Organization of the RBI Internal organisation - Management - Offices and branches - Banking departments - Public accounts dept. - Public debt dept. - Deposit accounts dept. - Securities dep Issue dept. - Administration dept. -Research and Economic intelligence dept. - Economic dept. - Statistics dept. - RB I financial statements. - Reports - Publications.

UNIT-2

RBI as currency authority - Currency chest .- Seasonal variations in currency circulation - banker: government - agreement with central government - Agreements with state Governments

– Administrative arrangements - Issue of new loans and treasury bill& - Advisor .to Govt.

UNIT-3

Supervision of banks — Deposit insurance — Licensing of banks — Branch licensing policy — Nariman Committee Report — Inspection banks — Credit information service — Education and training of banking personnel.

UNIT-4

RB and credit granting — RBI & Rural credit — Gadgil Committee Report — Agricultural finance Non-agricultural finance — Agricultural refinance corporation — Industrial finance — Refinance — Direct assistance to industry — direct finance for exports — Rediscount assistance — Credit guarantee scheme Commercial paper.

UNIT-5

Exchange management and control — Exchange rates — Exchange control objectives — regulation — authorized dealers — Rupees convertibility —basket rates — Payment for imports

— Other payment Export control — bullion — Jewellery — Currency notes and coins — Foreign investment.

REFERENCES:

1 Deock M.H. Central Banking. London — Granada Publishers, 1974.

2 Asishkumar Roy. The Structure of interest rates in India, Calcutta: World Press Private I 1975.

3 RBI. The Reserve Bank of India—Functions and Working Bombay, RBI. 1990. 4 Vaswani T.A, Indian BankingSystem. Bombay: Lalvani Publishing House. 1970.

PAPER III - COMMERCIAL BANKING

OBJECTIVES

1. Know the banking structure in India

2. Acquaint with banking companies

3. Familiarize with banking operations

4. Learn the role of cooperative banks and their functions

UNIT 1

Banking structure in India — Commercial banks — Public and private sector banks—Co-operative banks — Regional and rural banks — Dantwala Committee Report — Banking functions and services — Foreign Commercial banks.

UN1T-2

Banking Companies Act, 1943— Relationship between banker and customer — General and special features — Duty of secrecy — Right of set-ff-types of customers and account holders

— Partnerships — Joint stock companies — Executors and trustees — Clubs and associations — HUF —Minor — non-resident accounts--Account of Government department/ministries — procedure and practice in opening and conducting the accounts of customers — Steps to be taken on death, lunacy, bankruptcy, winding up — closing of accounts —pass book — duplicate pass book.

UNIT—3

Commercial banking operations—Negotiable Instruments Act — Payment of cheques — protection to the paying banker — return of cheques — liability of drawer—rights and duties of drawee —banker and drawer —endorsement of cheques- types of endorsements — forged endorsements — protection to banker-bills of exchange —types — discounting of bills — due date of bills — dishonor of bills — noting and protesting— commercial paper.

UNIT-4

Services to customers — funds remittance — DD —mail transfer — telegraph/telex transfer— collections— payments — safe deposit lockers — credit cards — customer service — Talwar committee report — deposit mobilization — Bank marketing — market research— marketing tools and strategies market segmentation customer meetings—experience sharing.

UNIT-5:

Co-operative banks and their commercial banking functions- types — district and state co-operative— land development banks — industrial co-operatives — RRBs — Kelkar Committee Report — role — functions— rural banking and farm credit — poverty alleviation program — lead bank scheme — Sarma Committee Report — Service area approach.

REFERENCES:

1. Bidani S.N.. & P.K. Mitra. Bank Finance for Industry, New Delhi, Vision Books, 1988.

2. American Bakers Association, The commercial Banking Industry, Engle wood Clifs (NJ) Prentice Hall inc. 1962

3. Haslem Commercial banking Management: Text and reading, Englewood Clifs, (NJ) Prentice Hall inc. 1986

PAPER IV- QUANTITATIVE TECHNIQUES

OBJECTIVES

1. Know the sampling methods and sampling theory

2. Equipping the use of test of significance and Hypothesis and estimation

3. Analyze the correlation and regression

4. Analyze and interpret the time series

5. To know the introduction of Multivariate analyze

UNIT-1

Sampling methods and sampling theory - basic concepts - sampling distribution and standard error probability Analysis - Basic Concepts and theorems - Expected value - Baye’s-rule - Theoretical distribution - Binomial, Poisson and Normal distributions — meaning. properties and applications - Elementary Decision Theory - meaning, and scope - Decision- rules - Bayesian decision theory.

UNIT-2

Test of significance -Tests of Hypothesis and estimation - Testing sample mean and difference between two sample means - Testing a sample proportion arid difference between two sample proportions using normal distribution and ‘C distribution - Estimation of parameters.

UNIT-3

F- test - characteristics and uses of ’F’ test – Analysis of variance -Chi-square test— meaning properties and uses.

UNIT-4

Correlation analysis - simple -partial and multiple correlation -explained and unexplained Variation –coefficient of determination — testing significance of”?’ - Regression aha1’sis Simple partial and multiple regression analysis—testing significance of beta and regression equations.

UNIT-5

Analysis of Time Series- meaning and importance- components - modes of decomposition - methods for measurement of secular trend, seasonal variations and cyclical variations - introduction to multivariate analysis - Factor analysis - cluster analysis - discriminant analysis - applications in bank management computer packages for statistical analysis - interpretation of results

REFERENCES:

1. Bonini & Hausman : Quantitative analysis for Business Decision.

2. Leonard W Hem: The Quantitative approach to managerial decisions.

3. S P. Gupta; Statistical methods. New Delhi. SultanChad.

4. Richard Levin and David Rubin; Statistics for Management: Prentice Hall of India, New Delhi. 1992

5. Kothari: Quantitative Techniques. Vikas

PAPER V— MERCHANT BANKING AND FINANCIAL SERVICES

OBJECTIVES

1. Know the concept of financial services and their players

2. Learn the merchant banking

3. Analyze the legal aspects of leasing

4. Equip the terms of factoring venture capital

5. Familiarize with stock exchange in India

UNIT —1

The concept of financial services—financial services and economic environment —legal and regulatory framework Securities Contracts (Regulations) Act— Financial institution — other players in the financial

services sector.

UNIT—2

Merchant Banking — procedural aspects of public issues, rights issues — prospectus; regulations and certification — under writing arid managing public issues — SEBI guidelines — pricing of initial public issues—rating of new issues — raising foreign capital — inter corporate loans and fixed deposits

UNIT —3

Introduction to leasing — legal aspects —tax aspects — accounting and reporting for leases —funding of leases — import leasing and cross border leasing — lease structuring and lease agreement — concept and features of hire purchase transaction :_ fiat and effective rates of interest — difference between hire purchase and a lease.

UNIT-4

Factoring —introduction and features —legal aspects — cost of factoring—recent development in the Indian context —factoring VS. bill discounting — consumer finance — credit card — financing schemes for consumer durables. Venture capital — concept and characteristics — evaluation of new project ideas and technology — innovation — venture capital industry in India — venture capital schemes and guidelines —tax and legal aspects — project investment consultation — Mutual funds — credit rating — CRISIL — ICRA.

UNIT-5

Banks, FIs and stock exchange— Organisation and functions of stock exchange in India— Trade in stock exchange - role of depositories— Listing of securities - OTC Exchange. of India — NSE —. Janakiraman Committee Report.

REFERENCES:

1. SEBI Gudelines 1992

2. K.Sriram, Handbook of Leasing, Hire Purchasing & Factoring. ICFAI Publications, 1991

3. J.N.Dhonkhhar, A Treatise on Merchant Banking, New Delhi, Skylark Publications, 1990.

4. Vinod Kothari, Leasing, Hire Purchase and Conumer Ctedit. Wadhwa & Co., 1990.

5. Gladstone, Venture Capital investing, NY, Prentice Hall, 1988.

6. Verma J.C., Merchant Banking, New Delhi: Bharat Law House Pvt. Ltd., 1991.

SEMSTER II

PAPER VI-- MONETARY ECONOMICS

OBJECTIVES

1. Define money and to learn monetary system in India

2. Learn the modern theory of Money

3. Know the supply of Money

4. Familiarize with monetary policy

UNIT 1

Money and the payments system — functions of money — concepts and measurement of money — outside money and outside money — Monetary system iii 1ridiaZ functions of RBI.

UNIT 2

Monetary theory Fisher’s equation of exchange — Cambridge cash balances approach — Keynesian theory — Modern quantity theory (M Friedman) — Constancy of velocity.

UNIT-3

Supply of money: credit creation by commercial banks— money multiplier, factors affecting money supply— effects of budget deficits and BOP disequilibrium on money supply.

UNIT 4

Instruments of monetary control : Role of bank rate— Open market operations — variable reserve requirements — CRR, SLR, selective credit control.

UNIT 5

Monetary policy: Framework, objectives and targets — transmission mechanism of monetary policy -. guide for monetary arrangement - lags in monetary policy current issues in monetary policy — Sukhamoy Chkravorthy Committee Report.

REFERENCES:

1. GuptaS.B., Monetary Economics, 1983.

2. Dornbush R., & S.Fisher, Macroeconomics. New York : McGrawHill. 3 Ed.

3. Reserve Bank of India, Money supply in India, Bombay RBI, 1977.

4. Reserve Bank of India, Money supply in India, Working of the Monetary System in India, Bombay: RBI. 1989.

5. Harris L., Monetary Theory, New York :McGraw Hill, 1985. V.

6 Gibson WE., & G. Kaufman. (Ed.) Monetary Economics — Readings on current issues, New Delhi : Tata McGraw Hill.

PAPER VII - FUNDAMENTALS OF INFORMATION TECHNOLOGY (Theory and Practical)

OBJECTIVES

1. Learn the fundamentals of computer

2. Familiarize with the computerizations in Banks

3. Know the methods of electronic funds transfer and document handling systems

4. Know the use of computer for additional banking application

5. Familiarize with various software applications practically and use of wordstar , Lotus 123, dbase III+

6. Prepare budget by applying lotus 123 and create reports and files based on dbase III+

UNIT-I

Introduction to computers — types of computers — computer hardware — computer software operating systems — programming languages — DBMS — 4th generation language tools — application software — software packages — development and current trends

UNIT-2

Computerization in Banks — Electronic banking — Mechanization in banks — training bankers computerized environment — progress of computerization — master file creation — MIS — CIS -- HERIS DSS — ES — Cases on MIS, DSS and ES — Rangarajan Committee Report — Information technology Computer Audit — Legal aspects of computer uses.

UNIT-3

Electronic funds transfer system — lain messages — structured messages —SWIFT Email Networking — Direct fund settlement systems — CHIPS — two level funds transfer settlement — FED WII— BANKWIRE — point — of— state systems — document handling systems — MICR., OCR — document storage and retrieval systems-- document transmission systems.

UNIT-4

Personal identification numbers — usage with magnetic cards SMART cards —signature storage and display by electronic means — cheque truncation — Microfiche —Note and coin counting device Additional banking applications — Inter-branch reconciliation—Foreign exchange dealings — Investment management systems — cash management systems —branch profit and loss account statement preparation

UNIT—5

Software applications — Wordstar — Lotus 123 — dbase III Plus — Data entry — query operation — graphical operations— computations — printing — preparing summaries — updating and amending file using menus.

PRACTICALS (Using Lotus 1-2-3 and Dbase III Plus)

(a) Lotus 1-2-3 Cash/ProductonJSa1es/Matenal Budgets Flexible Budgets

Break even analysis’ Capital Budgeting

Regression Analysis (with forecasts) Solution bf simultaneous equations Date query

Preparing graphs for given data Ratio analysis

What if decisions

(b) dbase III+

Creating reports/labels/format files Updating files

Summarizing data files

Print format preparation (like pay slips, loan evaluation forms, etc).

Simple programs (e.g. interest calculation, preparing pay roll, exchange rate calculations, calculation of ratios, etc.)

Preparing menus to run the program modules

Note: The written examination will be for a duration of 3 hours and will carry 100 marks. This will be proportionally reduced to 50 and there will be practicals for 3 hours which carry a maximum of 50 marks which will be proportionately reduced to 25. Thus, the final mark for this paper will consists of maximum marks for theory (written examination)and 25 marks for particals.

Equal importance will be given to Lotus 1-23 and dBase III plus.

REFERENCES:

1. Hussain F., Computerization and Mechanization in Indian Banks, Ed., Bombay: Vikas Publishing House, 1988.

2. Srivastava T.N., Mechanization in Banks, Ed., Bombay: RBI, 1987.

3. Report of the Committee on Mechanization in Banking Industry (Rangarajan Committee Report), Bombay: RBI, 1983

4. BajwaK.S., Bank Mechanization, New Delhi: Skylark Publications, 1980.

5. NIBM, Information system and data processing in banking industry, Bombay: NIBM, 1978.

6. Alan Simpson. Understanding dBase III Plus, BPB, 1992.

7. Nelson T. Dinerstein, dBase III Plus for the programmers, Galgotia, 1991.

8. Ralph Mylius, Illustrated Lotus 1-2-3, BPB, 1992.

PAPER VIII - CORPORATE ACCOUNTING AND REPORTING

OBJECTIVES

1. Learn advanced problems in underwriting and final statement of companies

2. Know the liquidation of companies, acquisition, amalgamation, absorption and reconstruction at advanced level

3. Equip with consolidated final statement of holding companies, intercompany holding and social responsibility accounting

4. Know the accounting standards

UNIT—1

Advanced problems in share capital and debenture transactions including underwriting — valuation of goodwill and shares—final statements of companies including the statements to ascertain profits prior incorporation and calculation of managerial remuneration.

UNIT—2

Acquisition — amalgamation — absorption and reconstruction (internal and external schemes) statements of Liquidation of companies.

UNIT-3

Final statements of banking companies — Trial balance Profit and loss account — Balance sheet regional level — module level —circle level — central level —double accounts system — accounting for price level changes — computerization of accounts in banks — Reports prepared at the regional / branch level— the Head Office — to the Management — to the RBI.

UNIT-4

Consolidated final statement of holding companies and subsidiary companies - Inter company holding and owing- treatment of dividends final statement of Insurance companies - Human Resource Accounting - Social Responsibility Accounting.

UNIT-5

Accounting Standards - ICAI guidelines - Mandatory and non mandatory standards.

REFERENCES

1. Shukla M.C., T.S. Grewal, Advanced Accounts, New Delhi Sultan Chand & Co., 1991.

2. Gupta R.L. & M.Radhaswamy, Advanced Accounts’VoL2) New Delhi Sultan Chand

3. Jain S P, & K L Narang, Advanced Accounts, Ludhiana Kalyani Publishers, 1992

4. Meigs .W.B.et. aL, Modern advanced Accounting New York: McGraw Hill, 1975.

5. Chakraborthy H., Advanced Accountancy, Ca1cutta: Nababharathi Publishers.

Note: The proportion between theory oriented and problem oriented question in the University Examination shall be 20:80.

THIRD SEMESTER

PAPER IX - MANAGEMENT OF LENDING

OBJECTIVES

1. Know the principles of lending.

2. Learn the appraisal of working capital

3. Familiarise with term lending

4. Know the various types of securities for lending

5. Equip the methods and procedures of follow up of loans.

UNIT-1

Principles of lending — types of loans and advances — priority sector advances —Self employment schemes — tribal and physically handicapped borrowers — women entrepreneurs— finance of SSI — personal and consumer loans — loans to partnership firms,, government and local bodies —issues in lending- financial adequacy — assessing the borrower—project appraisal — technical feasibility —management competence — economic feasibility—legal and practical points — Guarantee Schemes available to banks.

UNIT-2

Appraisal of working capital — Tandon, Chore Committee Reports — assessing working capital needs — types of working capital’ finance —cash credits — o/d —bills — LCs etc — credit monitoring arrangement— consortium lending — non-fund based lending — bankers analysis of profit and loss account — analysis of balance sheet — ratio analysis — funds flow and cash flow analysis —breakeven analysis — Tandon, Chore and Marathe committee re commendations — preparation of appraisal report.

UNIT—3

Term lending- bank’s involvement — incentives — non-financial appraisal — expansion project — new project — viability of the product—structural and infrastructural analysis —legal formalities — location— project life—cost structure — relevant cash flows —treatment of depreciation —taxation- interest — discounted cash flows —time value of money —future value

— IRR—NPV — Profitability index — banker’s rate — average and effective rate of return — repayment capacity — fixing repayment terms.

UNIT –4

Types of securities —stock —shares — LIP — commodities — immovable properties — Government securities — guarantees by third parties —book debts —methods of changing securities — valuation of securities— procedure for enforcement of securities — essential clauses n documentation — inspection of securities and godowns —release of securities on repayment of debts.

UNIT—5

Fo1Iow up of loans — health codes — Narasimhan Committee on classification of assets

— recovery process — follow up of satisfactory loans — irregular loans — sick : viable — under nursing — sick: non-viable! sticky — advances recalled—suit filed accounts — decreed loans — bad and doubtful debts — Techniques of follow up — QIS — Identification of sick units — Tiwari Committee Report—preparation of rehabilitation programs — implementation of rehabilitation programs — follow up at the branch / regional and head office levels — follow up of loans by RBI —management of non-performing advances —assets management companies

— Loan Recovery Tribunals — Provisions of Revenue Recovery Act.

REFERENCES:

1. Chatterjee A.J., & Sharma D.P., Management Techniques of Bank Lending, Bombay:

2. Bindhi S.N. and Sahae D. B. How bank credit is administered – supervision and follow up, New Delhi, vision books 1988

3. Srinivasa H. V. Banker Handbook of Credit Management, New Delhi, Criterion Publication 1989

4. Gupta L.C Controlling Corporate Sickness – lesions from experiences for manager and banker, New Delhi: Oxford University Press

5. Singh S. P. Bank lending some controversial issues (Ed) Bombay: national Institute of bank Management

PAPER X- MANAGEMENT OF FUNDS

OBJECTIVES

1. Learn the deposit mobilization and their factor.

2. Equip with cash management system

3. Familiarize with investment management

4. Analyze the profitability management

5. Review the capital adequacy.

UNIT-1

Deposit mobilization — types of deposits — term deposits — savings deposits— current deposits— short -term - long-term — NRI deposits – inter bank or inter corporate deposits – factors affecting deposit mobilization — competition from other financial services institutes — capital markets, UTI & insurance companies, private company deposit schemes etc.

UNIT-2

Cash management —branch level —head office level —factors determining cash reserves of banks — cash retention limits —management of cash movements and storage — monitoring cash-operations by commercial banks in money market instruments- treasury bills-commercial papers -certificate of deposits- RB! & Credit policy — SLR - CRH — RBI and credit planning.

UNIT—3

Investment management—investment policy —priorities in allocation of bank funds— investment in government securities — implications on interest income— meeting customer demands for loans — quality and diversification—maturity and yield — flexibility in bank asset management — opportunities available to banks for, better investment management.

UNIT-4

Profitability management—profit planning — long-term profit planning — decision areas— volume of working funds — manpower planning — budgeting and control- present status — parameters — financial intermediation—payment/collection/remittance mechanisms/ancillary services —profitability at the corporate level/Zonal/regional/branch levels

— efficiency ratio-s — growth ratios—effectiveness ratios —manpower ratios — cost effectiveness and cost control — interest expenses —establishment expenses— other expenses.

UNIT-5

Capital adequacy —legal formalities- return on capital -capital adequacy test-cases— inspection. audit & internal control.

REFERENCES:

1. Robinson, R.I. Management of Bank funds, New York: McGraw Hill: Inc.,. 1951.

2. Varde Varsha& Sampat Singh,. Profitability of Commercial Banks, Bombay: NTBM, 1983.

3. L R.Suneja Bankers advances — How they are made and controlled. New Delhi: Bankers PublishinHouse, 1973.

4. Radhaswamy M. and Vasudevan, Commercial Banks, New Delhi S.Chand & Co., 1988.

PARER XI - MANAGEMENT ACCOUNTING

OBJECTIVES

1. To study about the nature, scope and functions of management accounting

2. To study about the various techniques of financial analysis

3. Preparation of Budgets and application of marginal costing techniques for solving various problems

UNIT-l

Nature and scope of management accounting — functions of management accounting — financial counting Vs. management accounting — utility of management accounting— functions of management accountant.

UNIT 2

Analyze of financial statements — techniques of financial analysis—comparative financial statements — common size statements — trend percentages — ratios, interpretation of ratios — profitability ratios — 1iqiidity ratios — turnover 1atios - leverage ratios — debt service coverage ratios.

UNIT—3

Funds flow analysis — concept of funds —sources of funds — uses of funds — preparation of funds flow statements — cash flow analysis — types of cash flows — preparation.

UNIT—4

Budgets and budgetary control —objectives — types of budgets — preparation of budgets — consideration of budgets — zero-base budgeting.

UNIT-5

Cost volume profit analysis— marginal cost — absorption costing Vs. Marginal costing—Contribution— problem of key factor —measurement of profitability — applications of marginal costing.

REFERENCES:

1. Amey L.r., & Egginton D.A. Management Accounting, A conceptual approach, London:

Longman Group Ltd., 1973.

2. Kaplan R.S., and Atkinson A.. Advanced Management accounting New Deli: Prentice Hall of India. 1991.

3. Batty .J, Management Accounting. London: English Language Book Society. 1988.

4. Maheswari S.N., Management Accounting. New Delhi: Prentice Hall of India, 1990

5. Horngren C.T., Management accounting. New Delhi: Prentice Hall of India, 1990.

Note: The proportion between theory oriented and problem oriented questions in the University examination shall be 20:80.

FOURTH SEMESTER

PAPER XII – RESEARCH METHODOLOGY

OBJECTIVES

1. To study about the meaning, purpose, types of research and steps in research

2. To know about the various methods of data collection, processing and analyzing of data

3. To study about the contents of report and steps in drafting a report

Unit 1:

Research — Meaning and purpose — types of research— Pure and applied. survey, case study experimental, exploratory- Research Design — Steps in selection and formulation of research problem — steps in research - review of literature.

Unit 2:

Formulation of Hypothesis — Types, sources — Testing —sampling techniques — sampling error and sample size.

Unit 3:

Methods of data collection, Primary and secondary data — observation — interview — questionnaire — construction of tools for data collection — testing validity and reliability — pilot study and pre-testing.

Unit 4:

Processing and analysis of data — editing — coding — transcription — tabulation - outline of statistical analysis - descriptive statistics - elements of processing through computers - packages for analysis.

Unit 5:

Report writing — target audience - types of reports —contents of reports — styles and conventions in reporting - steps in drafting a report.

REFERENCE:

1. Donald R Cooper, Business Research Methods 7th Ed. McGrawHiIl, 2001

2. William C. E Mory Business Research Methods, Richard D Irwin NJ.

3. Krishnaswami O.R. and M. Ranganatham, Research Methodology for Social Sciences, Himalaya, Mumbaii, 2003.

4. Anderson J. et. al Thesis and assignment writing, Wiley Eastern.

Electives

1 . DEVELOPMENT BANKING

OBJECTIVES

1. To study about the theory of development banking and its role and progress

2. To study about the working of the various financial institutions

3. To know about the various methods of mobilization of resources, capital structure, return on working fund, financial management organization and staff development, government and development bank relation

4. To know about the functioning of world bank and it contribution to the world economy

UNIT—I

Theory of development banking —meaning — role —objectives and scope —functions —problems — practices of development banks —Interplay between financial institutions and economic of small and medium sized industries —overall performance — progress of development banks.

UNIT-2

IDBI — formation — financial resources — working — terms and types of assistance — IFCI — operations —functions — terms and types of assistance — ICICI -operations— functions— terms and types ‘: of assistance — SFCS — NABARD, SIDCS

UNIT—3

Mobilization of resources — acceptance of deposits —sources of resources — capit1 structure — investments of development banks- collaboration with other agencies —profitability

— return on working funds.

UNIT —4

Managerial pattern—management of risk and priorities —establishing goals and strategies—economic and social evaluation of projects — social cost benefit analysis — promotion and innovation — development of small scale industries —financial management — organization and staff development — government and development bank relations.

UNIT –5

World Bank — Various Schemes — Types of Assistance — Contribution to world economy — Policies and performance — World Bank India ADB — functions and assistance.

REFERENCES:

1. Dimond William. Development banks, London: John Hopkins. 1957.

2.Dimond William & Raghaan V.S., Aspects of Development Bank Management, London: John Hopkins, 1982.

3. Saksena R.M. Development Banking in India, Bombay :Vora & Co., 1970.

4. Sikidar S., Development Banking, New Delhi: S.Chand & Co., J985.

5. FCI, Searchlight on Development Banks New Delhi: IFCI, 1984.

6. Lakshman Ran V,.Progress of Development Banks, Allahabad: Chugh Publications, 1986.

2. INTERNATIONAL BANKING

OBJECTIVES

1. To study about international banking and regulatory environment

2. To know about the performance of foreign branches, off shore banking, SDR exchange rate stability etc

3. To study about the role and functions of overseas banking

4. To know about International banking instruments, foreign exchange mechanics and international financial intermediaries

UNIT-I

International banking and regulatory environment internationa1 banking markets. international money Market currency markets—international Credit Market- Eurobond markets —gold and commodity markets including futures market--- foreign market—retail market— money market — capital market.

UNIT-2

Foreign branches—competitive strategies—performance of foreign branches off shore banking— IMF -. objectives and functions — SDR —Liquidity. Problem- Exchange Rate stability Purchase and repurchase.

UNIT-3

Role and function of overseas banking—foreign lending— relations with domestic and international financial markets — banking in major countries -merchant banking - project finance— trade finance syndicated loans—financial packaging —credit information— economic intelligence—information on markets— cash management — computer service — investment facilities.

UNIT—4

International banking instruments — Currency accounts euro cheques —travelers cheques credit cards —.accounts in foreign countries and customers—payment services —

.insurance foreign exchanges — information — passport — introductions — foreign currency deposits — foreign currency loans —foreign bonds.

UNIT—5

Balance of payments —meaning—significance — credit and debts.-organization- foreign exchange mechanics — arbitrage — speculation-purchasing power parity — forward rates and interest rate differentials — flexible exchange rates —gold standard— the adjustable peg — international financial intermediaries

REFERENCES:

1. Kane Daniel R, Principles of internatioia1 finance; New York : Croom Helm Inc., 1984.

2. Coulbeck Neil, The Multinational Banking Industry, Sydney : Croom Helm Inc., 1988.

3 Pippenger John E., Fundamentals of International Finance, Englewood Cliffs, NJ: Prentice

Hall Inc, 1984

4. Bell G.L., et.al. Risks in international bank lending ;New York: Group of thirty, 1982.

5. Donaldson T.H Readings in International communal Banking; London: Macmillan Press Ltd., 1979.

3. RURAL BANKING

OBJECTIVES

1. To study about the concept and need for rural banking

2. To know about the various antipoverty cum development programmes-their basic features and role of banks

3. To study about the role of various institutions, supporting various rural development

4. To know about the credit planning at the grass root level, various schemes and plan which are implement in rural areas

Unit 1

Concept of Rural Banking — Need for Rural Banking — Priority Sector Lending: Terms and Conditions.

Unit2:

Antipoverty- cum--development programmes : Integrated Rural Development Programme (IRDP), scheme for Training of Rural Youth in Self Employment (TRYSEM), development of Women and Children in Rural Areas (DWCRA), scheme for providing Self-Employment to Educate Unemployed Youth (SEEUY), Self—Employment Programme for Urban Poor (SEPUP), Differential Rate of Interest Scheme (DRI), Bio-gas programme and 20 point Economic Programme -their basic fèatuàidro1e of banks

Unit 3:

Institutional Sources of Finance in Rural Areas: Co-operative Banks, Commercial banks Regional Rural Banks — their structure, policy, functions, clientele, progress and problems.

Unit4:

Credit Planning at the Gross Root Level : Lead Bank Scheme, District Credit Plans and Service Area Approach — their basic features.

Unit 5:

Institutions supporting Rural Development: Reserve Bank of India (RET). National Bank for Agriculture and Rural Development (NABARD). District Industrial Centre (DIC), Khadi and Village Industries Commission (KVIC) and Voluntary Organizations — their role. .

EFERENCES:

1. Dhingra, I .C. Rural Banking in India, Sultan Chand & Sons, New Delhi, 1991.

2. Bhat, N.S. Aspects of Rural Banking, Commonwealth Publishers, Delhi 1988.

3. Desai,S.S.M. Rural Banking in India, Himalaya Publishing House, Bombay.. 1986.

4. Sandhu, Banking and Rural Development, 2002

5. Mandal, Role of Banks in Rural Development, 2002

LIST OF EXTRA DISCIPLINARY COURSE FOR OTHER DEPARTMENTS

1.HUMAN RESOURCE MANAGEMENT

OBJECTIVES

1. Learn Human Resource in a competitive environment.

2. Know to acquire and to maintain the human resource

3. Review the conflicts

4. Develop the Human resource

5. Familiarize with the compensation and motivation of Human Resources

UNIT-1

Human Resource in a competitive environment --the individual in an organization— values, attitudes— implications of work behaviour—personality— types of personality — current emphasis on human resource by organization.

UNIT—2

Acquisition and maintenance of Human Resource: Recruiting sources — BSRB — Selection process— devices — orientation, maintenance of Human Resource. Motivation for increase productivity— theory X and theory Y — Carrot and Stick approach — Job enrichment

— Job satisfaction — Quality of Work Life (QWL) — Performance Appraisal — Promotion.

UNIT —3

Conflict — process — sources — organisational goals and personal goals — resolution - leadership — types and effectiveness—Leader vs. Manager — Communication channels — grapevine —informal groups -- Management approach in dealing with informal groups.

UNIT –4

Human Resource Development: training —p1ement and management development— effects of training on human resource — OD —organizational change — change agents — organizational climate — organizational culture —morale and work environment.

UNIT—5

Compensation to human resources — reward and compensation systems — policies and administration — grievance procedure —disciplining the problem employee, safety and health measures — ideals for motivated work force.

REFERENCES:

1. De Cenzo and Robbins, Personnel Human Resources management, Prentice Hall of India, 1991.

2. Werther and Davis, Human Resources and Personnel Management, McGraw Hill 1989.

3. Cascio. Managing Human Resource: Productivity, Quality of Work Life, Profits McGraw Hill, 1989.

4. T.V.Rao (ed) Readings in Human Resource Development Oxford and IBH, 1991.

5. R.S. Dwivedi. Manpower Management, Prentice Hall of India, 1988.

6. S.S.Hugha. Trends and Challenges in India Banking, New Delhi: Deep and Deep Publications.

7. Edgar schien, Organisational Psychology, New Delhi: Prentice Hall of India

8. Uday Pareek, T.V.Rao & D.M. Pestojee, Behavioural Process in Organisation – Readings, Cases and Instruments, Bombay: Oxford – IBH.

9. M.S.Saideen, HRD in Banking Industry, , Bombay: Oxford – IBH.

10. C.B.Mamoria, Personnel Management & Management of Human Relations, Himalayan Publications.

11. Peter F. Drucker, The Practice of Management, Allied Publications.

2.CORPORATE GOVERNANCE AND ETHICS IN BANKING

OBJECTIVES

1. To study about the bank management structure and views on various committees on corporate governance and SEBI regulations

2. To study about the social responsibility of Banks, ethical standards in lending, investment accounting and customer service

3. To know about service quality determinants and measurement of satisfaction

UNIT-1

Bank Management Structure - Board Functions— Accountability to stake holders — Bank audit, Auditor role — Legal provisions relating to management of banks.

UNIT-2

Views on Corporate Governance— Expert Committee Reports on Corporate Governance

— Cadbury Committee Report — Birla Committee Report — Corporate Governance — Practices across the world.

UNIT –3

Corporate Governance Code — Clause 49A — Board Structure — Audit Committee — Transparency and Disclosure obligations — SEBI regulations.

UNIT-4

Banks and Society — Social Responsibility of Banks — Issues and challenges — Ethical Issues in Banks — Ethical standards in Lending, investment. Accounting and Customer Service

UNIT-5

Service quality determinants — Customer Services & Satisfaction — Issues & Concerns

— Measurement of Satisfaction.

REFERENCE:

1. YRK Reddy et.al, Corporate Governance in Banking and Finance, TMH 2002.

2. RC Sekhar, Ethical choices in Business Response Books 1997.

APPENDIX-24 (S)

UNIVERSITY OF MADRAS

M.Com. Degree Course in Bank Management

(With effect from the academic year 2017-2018)

REVISED SYLLABUS

SEMESTER II- CORE PAPER VII- FUNDAMENTALS OF INFORMATION TECHNOLOGY (Theory and Practical)

OBJECTIVES

1. Learn the fundamentals of computer

2. Familiarize with the computerizations in Banks

3. Know the methods of electronic funds transfer and document handling systems

4. Know the use of computer for additional banking application

5. Familiarize with various software applications practically using SPSS and Tally

6. Prepare budget by applying MS Excel and create reports and files using MS Access.

UNIT-I

Introduction to computers — types of computers — computer hardware — computer software operating systems — programming languages — DBMS — 4th

generation language tools — application software — software packages — development and current trends

UNIT-2

Computerization in Banks — Electronic banking — Mechanization in banks — training bankers computerized environment — progress of computerization — master file creation — MIS — CIS -- HERIS DSS — ES — Cases on MIS, DSS and ES — Rangarajan Committee Report — Information technology Computer Audit — Legal aspects of computer uses.

UNIT-3

Electronic funds transfer system — lain messages — structured messages —SWIFT Email Networking — Direct fund settlement systems — CHIPS — two level funds transfer settlement — FED WII— BANKWIRE — point — of— state systems — document handling systems — MICR., OCR — document storage and retrieval systems-- document transmission systems.

UNIT-4

Personal identification numbers — usage with magnetic cards SMART cards —signature storage and display by electronic means — cheque truncation — Microfiche —Note and coin counting device Additional banking applications — Inter-branch reconciliation—Foreign exchange dealings — Investment management systems — cash management systems —branch profit and loss account statement preparation

Unit 5

Software applications—MS-Word—MS Excel—MS-Access--Data entry--- query operation—graphical operations---computations---printing—preparing summaries---updating and amending file using menus-.SPSS---Tally

Practicals( Using SPSS &Tally)

· Chi-square Test

· Anova Table

· Correlation

· Regression Analysis(with forecast)

· Solutions of simultaneous equations

· Preparation of Budgets

· Basics of Tally

· Data query

· Preparing graphs for given data Ratio analysis

· What if decision

· Creating reports/labels/format files

· Updating files

· Summarizing data files

· Print format preparation (like pay slips, loan evaluation forms, etc.)

· Simple Programs (e.g. interest calculations, preparing payroll, exchange rate calculations, calculation of ratios, etc)

· Preparing menus to run the programme table

Note: The written examination will be for a duration of 3 hours and will carry 75 marks. This will be proportionally reduced to 60 and there will be practical for 3 hours which carry a maximum of 100 marks which will be proportionately reduced to 40. Thus, the final mark for the paper will consists of maximum marks 60 for theory (written examination) and 40 marks for practical.

REFERENCES:

1. Hussain F., Computerization and Mechanization in Indian Banks, Ed., Bombay: Vikas Publishing House, 1988.

2. Srivastava T.N., Mechanization in Banks, Ed., Bombay: RBI, 1987.

3. Report of the Committee on Mechanization in Banking Industry (Rangarajan Committee Report), Bombay: RBI, 1983

4. BajwaK.S., Bank Mechanization, New Delhi: Skylark Publications, 1980.

5. NIBM, Information system and data processing in banking industry, Bombay: NIBM, 1978.

6. Alan Simpson. Understanding dBase III Plus, BPB, 1992.

7. Nelson T. Dinerstein, dBase III Plus for the programmers, Galgotia, 1991.

8. Ralph Mylius, Illustrated Lotus 1-2-3, BPB, 1992.

ElectivePaper – INCOMETAX LAW AND PRACTICE

Objectives No ofCredits:

1. To Provide a detailed understanding of the various provisions of IT. Act.

2. To enable the students to about the Assessment Procedures and Tax Planning.

Unit :I Introduction

Meaning of Income – Features of Income Tax -Types- Important Definitions Under the Income Tax Act- Assessee- Types- Rates of Tax- Residential Status- Scope of Total Income-Incomes Exempt from tax.

Unit-II: Income from Salary

Definition-Allowances- Valuation of perquisites –Deductions from Salary- Gratuity- Pension-Commutation of Pension- Leave Salary-Profits in lieu of Salary-Provident Funds-Deductions under Sec.80.

Unit -III:

Income from House property and Income from Capital Gain

Annual Value- Meaning and Computation-Deductions from Annual Value- Legal Provisions-Capital Gain –Meaning – Shortterm and Longterm Capital Gains-Certain Transactions not included as transfer- Cost of Acquisition-Cost of Improvement-Indexation- Capital Gain under different circumstances- Exempted Capital Gains-Computation of Capital Gains.

Unit-IV:

Profits and Gains from Business or Profession

Income from Business or Profession-Allowable expenses-Not allowable expenses- General deductions-Provisions relating to Depreciation- Deemed Business Profits- Un disclosed incomes-Investments- Compulsory maintenance of Books of accounts- Audit of Accounts of certain persons- Special provisions for Computing In comes on estimated basis- Computation of Income from Business or Profession.

Unit-V: E- filing& Submission of Returns

e-filing- Concept- Procedure-26AS-TDS-Traces-Filing of Return-Various Returns -Permanent Account Number (PAN)-Usage of PAN-Concept of Transfer Pricing- Fundamentals.

Note:Questions in Sec. A, B & C shall be in the proportion of 20:80 between Theory and Problems.

Suggested Readings

1.Vinod,K.Singhania, Students Guide to Income Tax, Taxman Publications Pvt. Ltd.

2.Mehrotra-Income Tax Law& Accounts, Goyal, Sathiya Bhavan Publications.

3.Gaur&Narang,IncomeTaxLaw&Practice, Kalyani Publishers.

4.Reddy,T.S.&HariprasadReddy,Y,IncomeTaxTheory,Law&Practice,Margham Publications, Chennai.

5.Murthy.A,IncomeTaxLaw&Practice,VijayNicoleImprintsPvt.Ltd.Chennai

6.Hariharan N, Income Tax Law& Practice, Vijay Nicole Imprints Pvt. Ltd. Chennai

E-Resources

www.incometaxindia.gov.in www.incometaxindiaefiling.gov.in www.onlineservices.tin.egov-nsdl.com www.cleartax.in

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