Course Handout Course Name: Bankin !anaement Semester: III Faculty Name: Suryanarayan Mohapatra Room No: 209 Wing No: F Consultation Hours: Mobile No: 991263843 !mail: "uryan#mohapatra$gmail#%om Course "b#ecti$e: &hi" %our"e i" 'e"igne' to gi(e the "tu'ent a %omplete (ie) o* the entire gamut o* ban+ing a%ti(itie" "tarting *rom ,peration" to -en'ing o* (ariou" type" loan". Re%o(ery Management an' /n%illary01ara 2an+ing /%ti(itie"# %eanin "utcomes: /t the en' o* the %our"e a "tu'ent i" e3pe%te' to be rea'y to )or+ in a 2an+ a" an entry le(el e3e%uti(e0Manager# &ecommended Book: Bankin 'rinci()es and 'ractices by !r* !*+* ,o(inat- C".&S/ ".0%I+/ NO CHAPTER &TOPIC FROM SYLLABUS HBS Case RBI Document IBSCRC Additiona Mate!ia Case No Sou!ce " INDIAN FINANCIAL SYSTEM: Natu!e and e#oution$ Roe o% %inancia s&stem in economic de#eo'ment$ Indian Financia s&stem(St!uctu!e) *Financia ma!+ets$ inst!uments$ !e,uato!s and inte!media!ies- ( Financia Ma!+et St!uctu!e *"- (( Re'o!t On Cu!!enc& and Finance( ./"/ RBI . BANKING SYSTEM IN INDIA0 O!i,in$ natu!e and st!uctu!e$ T&'es o% Ban+s and t1ei! Functions$2Sc1edued 3an+s$ Comme!cia 3an+s$ Pu3ic secto! 3an+s$ '!i#ate secto! 3an+s *Od and ne4 ,ene!ation 3an+s-$ co(o'e!ati#e Ban+s$ RRBs$ Loca a!ea 3an+s$ NBFCs$ Mutua& aided co(o'e!ati#e societies5$ RBI(t1e Cent!a Ban+( St!uctu!e$ Roe and Functions o% RBI ( E#oution o% Ban+in, In India *.- ( RBI Brochure ( ( Re'o!t On Cu!!enc& and Finance ( ( RBI RBI 6 SOURCES AND USES OF FUNDS IN BAN7S 0 Basic st!uctu!e o% Ban+ Baance s1eet ( ( ( ( ( 8 KYC NORMS OF RBI VARIOUS TYPES OF CUSTOMERS Indi#idua$ 9oint$ S'ecia t&'e o% custome!s *mino!s$ Iite!ates$ Lunatics $D!un+a!ds$ Pa!danas1in adies- HUF ( %i!ms ( com'anies ( t!usts ( societies ( :o#t; and 'u3ic 3odies Cont!actua !eations1i's %o! #a!ious 3an+in, t!ansactions ( ( 7YC no!ms o% RBI *6- ( ( RBI Maste! Ci!cua! on 7YC No!ms
RBI < = DEPOSIT PRODUCTS: T&'es De'osit P!oducts ( se!#ices !ende!ed 3& Ban+s$ T1e '!ocedu!e to o'en a de'osit account$ Nomination %aciit&$ De'osit insu!ance; Deduction o% ta> at sou!ce$ O'e!ationa inst!uctions i+e o'e!ations ?oint&$ se#e!a&$ ette! o% mandate$ 'o4e! o% atto!ne& etc; Rene4a and E>tension$ '!ematu!e e>tension o% De'osits; Uncaimed De'osits; Settement o% deat1 caims Cacuation o% Inte!est and TDS; De'osit mi>$ Im'o!tance o% CASA de'osits$ Cost o% De'osit$ Fi>ation o% Benc1 ma!+ P!ime endin, Rate) and Ne4 Base Rate Mec1anism ( ( ( Not just Banking Making a positive difference in customers life ( Model Deposit Products and Procedures b Indian Banks !ssociation CLM M@/AB IBSCR C B A I N T E R N A L E C A L U A I O N*NCP("- D RIGHTS AND DUTIES OF A BANKER Ri,1ts o% a Ban+(Lien$ Seto%% and a''!o'!iation) Duties o% a Ban+e!( Dut& o% Sec!ec& and Dut& to 1onou! c1eEues$ Ri,1ts and o3i,ations o% a custome! ( ( ( ( A ne4 Ban+ Mana,e!Fs Diemma *"- ( ( Banker" #ustomer Relationship CLM M@/A= ( IBSCR C (
"/ BANKING ACTIVITIES0 Retai 3an+in,$ co!'o!ate 3an+in,$ *G1oesae Ban+in,-) SME Ban+in,$ Ru!a Ban+in,$ Mic!o %inance$ Geat1 mana,ement*P!i#ate 3an+in,-$ T!easu!& mana,ement$ Cas1 mana,ement se!#ices$ Me!c1ant 3an+in,$ Inte!nationa 3an+in,) Note on t1e Ban+in, Indust!& *<- ( ( ( D(6""( /"" HBS "" NEGOTIABLE INSTRUMENTS0 Ne,otia3iit& #s; T!ans%e!$ Pa!ties to a c1eEue$@B;E@P!omisso!& Notes$ saient %eatu!es o% a c1eEue$ C!ossin,s and endo!sements$ Pa&ment and coection o% C1eEue$ Duties and !es'onsi3iities o% 'a&in, and coectin, 3an+e!('!otection a#aia3e to 'a&in, and coectin, 3an+e!$ 3ouncin, o% c1eEues and t1ei! im'ications; ( ( ( ( ( Cases Decided 3& a; Om3uds man *8- 3;Consume ! Fo!um *<- Ne,otia3e Inst!uments Act("AA" *.- ( a$ Negotia bilit " a technica l Note b$ Is Negotia ble Instrum ents !ct a Boon% ( ( ( RBI RBI
". "6 CASH / LIQUIDITY MANAGEMENT IN BANKS ( RBI Maste! Ci!cua!s on a; CRR@ SLR 3; P!io!it & Secto! Ad#an ces *=- ( ( ( RBI "8 CREDIT POLICY0 C!edit 'oic& o% RBI$ si,ni%icance o% c!edit 'oic& %o! Ban+s$ E>'osu!e No!ms$ and Dee,ation o% Po4e!s; C!edit cutu!e ( RBI Maste! Ci!cua!s on E>'osu!e No!ms *B- ( #redit Polic in Banks ( RBI "< LENDING ACTIVITIES: P!inci'es o% endin,$ #a!ious c!edit '!oducts@ Faciities$ C!edit A''!aisa$( C!edit !atin,@ C!edit sco!in, c1a!t; Automated C!edit a''!aisa mec1anisms$ A Note on Ban+ Loans *=- ( ( ( ( Ma+in, a Lendin, Decision *6- CLMISC@/ /D( IBSCDC ( D(.D"( /.= ( HBS ( "= I N T E R N A L E C A L U A I O N*NCP(.- "B PRIORITY SECTOR LENDING: Cassi%ication and De%inition$ Ru!a C!edit Dei#e!& mec1anism( Comme!cia Ban+s@ RRBs@ LABs@Co(o'e!ati#e institutions$ NABARD$ Mic!o%inance$ Financia incusion YES BAN7 Mainst!eami n, De#eo'men t into Indian Ban+in, *B- ( Latest RBI :uideines on P!io!it& Secto! C!edit ( D(6""( /=6 HBS "A RURAL BANKING AND MICRO FINANCE Re'o!t on T!ends and P!o,!ess o% Ban+in, in India RBI "D SME FINANCING: Mic!o$ Sma$ Medium ente!'!ises H de%inition and cassi%ication$ Go!+in, ca'ita assessment( Na&a+ committee !ecommendations$ A''!aisa$ monito!in,$ institutiona @ in%!ast!u!a su''o!t and nu!sin, o% sic+ indust!ies ( ( Latest RBI :uideines on SME Lendin, RBI ./ RETAIL BANKING: Basics o% !etai 3an+in, P!oducts and se!#ices$ De'osit '!oducts$ Pe!sona$ Consume!$ Housin, oans$ Educationa oans$ Pastic mone&$ :od Loans etc ( ( Model &ducation 'oan Polic b Indian Banks !ssociation ." CORPORATE BANKING0 Natu!e o% co!'o!ate 3an+in, and !ecent de#eo'ments$ muti'e 3an+in, a!!an,ement$ Conso!tium %inance and oan s&ndication; In%!ast!uctu!e %inance ( ta+eout %inancin, ( ( Latest RBI :uideines on Co!'o!ate Ban+in, RBI .. MERCHANT BANKING0 Mana,ement o% Pu3ic issues0 Reasons %o! ,oin, 'u3ic$ and ei,i3iit& no!ms$ O%%e! document and !e,uato!& %!ame 4o!+ %o! 'u3ic issues *SEBI no!ms-$ ma!+etin, o% issues and 'ost issue acti#ities; a; Motia Os4a Financia Se!#ices Ltd; An IPO in India *".- ( ( ( ( ( ( D(A/B( /D< <6A.B HBS HBS b. (oing Public$ !dventure s in #apital Markets C .6 NON FUND BASED SERVICES0 Lette!s o% c!edit and t&'es o% LCs$ Ban+ ,ua!antees$ So#enc& ce!ti%icates$ etc;$ ( ( ( ( ( a$'etter of #redit b$Bank (uarant ee " ( ( RBI .8 I N T E R N A L E C A L U A T I O N*NCP(6- .< TECHNOLOGY IN BANKING0 Co!e Ban+in, (Tee! Mac1ines ( Cas1 dis'ense!s H ATMs$ Home 3an+in, *Co!'o!ate and 'e!sona-$ Eect!onic Pa&ment s&stems ECS*C!edit-$ ECS*De3it- $EFT$ RT:S$ NEFT$ C1eEue t!uncation$ MICR tec1noo,&$ Tee ma!+etin,@ Mo3ie P1one 3an+in,$ DSA@DMA in Ban+ Ma!+etin, ( ( Impact of )echnolog in Public *ector Banks ( Ban+ Iuest( Oct(Dec( ./"/ ( D(=/B( /"/ IIBF .= PARA BANKING SERVICES: Remittance o% %unds0 D;D@MT@PO$ Coection o% C1eEues and D!a%t$ Cea!in, House$ Sa%e De'osit oc+e!s and sa%e custod& a!tices$ Banc assu!ance$ sae o% mutua %unds$ IPO@FPO sein, Int!oduction to Mutua Funds *"<- ( ( ( ( ( ( D(6"/( ""B ( HBS RBI .B LE:AL ASPECTS OF LENDIN:0 Documentation$ stam'in,$ e>ecution$ c1a!,e c!eation$ c1a!,e !e,ist!ation$ Limitation act ( ( #ardinal Principles of 'ending IBSCR C .A RECOCERY MANA:EMENT0 Im'o!tance o% !eco#e!&$ !e'a&ment cutu!e$ '!udentia no!ms( Cassi%ication o% Assets$ Income !eco,nition and '!o#isionin,$ CAR$ Secu!itiJation Nu!sin, and Re1a3iitation o% oan accounts ( Latest RBI :uideines on P!udentia No!ms ( RBI .D 6/ PRECENTICE$ REMEDIAL AND LE:AL MEASURES OF ( ( Ban+ Iuest( Oct(Dec( RECOCERY0 DRT$ Lo+ Adaats and SARFAESI Act; ( ( Innovation s in Recover Manageme nt ./"/ IIBF 6" CUSTOMER SERCICE0 :oi'u!ia Committee !ecommendations$ Om3udsman sc1eme; Consume! Fo!ums ( ( T1e Om3udsman Sc1eme( .//= ( ( ( Damoda!an and :oi'u!ia Committee !ecommenda tions RBI 6. REGULATORY FRAME WORK0 P!o#isions o% RBI Act "D6<$ Ban+in, Re,uation Act "D8D$ Base no!ms$ Onsite and O%% site su!#eiance$ statements and !etu!ns ( ( Su'e!#ision o% t1e Indian Financia S&stem ( ( ( ( ( BREP @/.= RBI IBSCR C 66 EMERGING TRENDS IN BANKING: Banking in India" Issues and #hallenges for the +uture Expectations from Students a# Stu'ent" mu"t report to the re"pe%ti(e "e""ion" )ell be*ore the announ%e' time# -ate%omer" )ill not be permitte' to 4oin the %la"" a*ter the "%he'ule' time# 5* late. the atten'an%e *or that "e""ion )ill be mar+e' a" ab"ent# b# Rea' the 6a"e Stu'y 0 material )ell prior to the %la"" 'i"%u""ion# 7e0"he i" al"o e3pe%te' to rea' the %hapter in'i%ate' in the %our"e plan a" the *a%ulty 'ire%t"# %# 5n the %la"" 'i"%u""ion "tu'ent i" e3pe%te' to parti%ipate a%ti(ely an' %ontribute to in'i(i'ual an' group learning# !(aluation i" ba"e' on a%ti(e parti%ipation# '# !(aluation i" a %ontinuou" pro%e"" at 52S# !(ery "tu'ent nee'" to be a)are o* the timeline" gi(en in the "e%tion belo)# /b"en%e *rom the"e e(aluation" )ill mean non a)ar'ing o* mar+" in that parti%ular %omponent e# Where(er appli%able. group a""ignment" re8uire ea%h "tu'ent to %ontribute to the group e**ort# &hi" enhan%e" group e**e%ti(ene"" an' lea'" to greater appre%iation o* )or+ing in group"# *# Formal 're""ing i" "ugge"te' *or all "tu'ent"# 9o not roam in the a%a'emi% area0 atten' %la""e" in %happal" 0 "hort" 0 in*ormal t "hirt" g# Stu'ent" are e3pe%te' to "ho) high regar' an' appre%iation *or in %la"" 'i"%ipline an' 'e"i"t *rom u"ing mobile phone"# &hi" 'i"turb" the %la"" ambien%e an' unne%e""arily 'i(ert" attention o* other "tu'ent" a" )ell a" the *a%ulty member# h# !a%h *a%ulty ha" been gi(en a "%he'ule' %on"ultation hour# :tili;e thi" time to meet the *a%ulty an' %lari*y 'oubt" i* any. "ee+ e3planation" an' get mentore' i* nee'e'# i# /tten'an%e i" %ompul"ory in all "e""ion"# 7o)e(er re*er to gui'eline" in your a%a'emi% han'boo+ *or e3%eption"# Evaluation Timelines Keeping in line with continuous evaluation at IBS the following schedules have been drawn. Students are expected to go through the dates / sessions mentioned and prepare accordingly. Component Component Number xpected slot / due date !ar"s declaration by #eightage Class $articipation % Session %% Session %& %' Class $articipation & Session && Session &( %' Class $articipation ( Session (' Session (% %' Non Class $articipation % Session ) Session * %' Non class participation & Session %+ Session %, %' Non Class $articipation ( Session &- Session &- %' nd exam .t the end of the semester -' /otal %'' $erformance till !idterm will be announced by end of session No. %+ in each course which means each student will "now his / her performance in one C$ and two NC$s. /he final result will be declared after the end examinations. Before the student ta"es the end examination he / she will be aware of the progress in each course up to an extent of +' mar"s. Students not ta"ing the evaluation according to the timelines mentioned above will not be given another opportunity excepting in rare circumstances of extreme illness or hospitali0ation. Brief profile of the Faculty Member $rof. Suryanarayan !ohapatra is a 1aculty of 1inance at IBS2 3yderabad. 3e has extensive !anagement experience in the ban"ing sector spreading over &4 years. 3e also served in an I/ Consulting company as .ssociate 5$ during &'%'6&'%%.