Instructions for Assignments (Management of Banking, Term V.

PGDM
2015-17)
General Instructions:
There are 5 group assignments for the course that will carry a total 65%
weightage for the course evaluation. The assignment objectives, instructions,
marks, and deadlines are given in the following pages for each assignment.
Each group has to put in a maximum of 350 contact hours to do proper justice to
the assignments. For groups of 7 members, this works out to 50 contact hours
per student. Since most of the assignments deal with aspects that are of
relevance in the context of todays banking business environment, the
assignments submitted by each group shall be shared (by me) with all students
enrolled in the course. It may be useful from a job-market interview standpoint
as well to go through the assignments done by other groups in addition to your
own work on the assignments.
For some assignments, I have given the deadlines whereas for others, I will
communicate the deadlines on completion of the relevant sessions.

Instructions for Assignments (Management of Banking, Term V. PGDM

2015-17)
Assignment 1: A Friendly Conversation (Total 8 Marks Part 1 3 Marks;
Part 2 - 5 Marks)
Assignment Objective: The primary objective of this assignment is to improve
your understanding of the various macro-issues surrounding the business of
banking and your ability to display a logical approach to the analysis of the
industry.
Part 1: For this part, each group has to summarize the different points of view put
forth by the protagonists in the article on the following eight hotly debated issues
in banking (discussed during the course)

Are banks special or not?

Banks and external macro-environment

Regulation as the provider of incentives/disincentives

Deposit Insurance and Capital Maintenance requirements

Liquidity Maintenance & Management

Risk Management & Financial Innovation

Off- Balance Sheet Activities of Banks & Securitization

Excessive Risk Taking and Bank Failures

The assignment should be submitted in MS-Word or PDF format and must not
exceed 4 pages.
Assignment Deadline: Already submitted by all groups
Part 2: For this part, each group has to take the side of any one of the different
views put forth by the protagonists for each of the eight issues and provide
justifications for why they subscribe to such point of view. The justification must
be based on and related to the concepts covered during the discussions in the
first module of the course.
The assignment should be submitted in MS-Word or PDF format and must not
exceed 8 pages.
Assignment Deadline: Midnight of 18th October 2016
Expected Contact Hours per Group: 40 Contact Hours

Instructions for Assignments (Management of Banking, Term V. PGDM

2015-17)
Assignment 2: Application of the Functional Framework (Total 10 Marks)
Assignment Objective: The primary objective of this assignment is to improve
your ability to apply a systematic framework (the functional framework in this
case) to understand the role of a category of financial intermediaries (e.g.
insurance companies, commercial banks, payment banks, Housing finance
companies etc.)
The functional framework that we have covered during the course is an
interesting and unique framework that allows one to identify the role of a
particular financial market, financial instrument, or a category of financial
institutions in an economy. As per the functional framework, the functions to be
performed by the financial system in an economy remain stable over time, but
the products, markets, and financial institutions that perform the functions
evolve over time. The main driver of such evolution is the carrying out of the
functions in the most efficient (i.e. lowest transaction cost) manner.
Each group has to select a financial product or a category of financial
intermediaries and apply the functional framework. The selected financial
product/financial intermediaries category has to be evaluated in terms of its role
in the six functions. It is not necessary for the product/financial intermediaries to
be involved in all of the six functions and some may be involved in only a few of
the six functions. For the functions in which the financial product/intermediaries
have a role, you are required to
a) Describe the mechanisms by which the function(s) is/are performed by the
product/intermediaries
b) Identify the segment of the economy for which the functions are provided
(e.g. Microfinance Institutions primarily cater to the unbanked/underbanked segment of the population)
c) Identify the competitors/alternatives for performing the same function
d) Rank the competitors/alternatives using non-quantitative arguments
e) Draw up your inferences on the future role of the selected financial
product/financial intermediary category.
The assignment should be submitted in MS-Word or PDF format and must not
exceed 10 pages.

Assignment Deadline: Midnight of 21st October 2016

Expected Contact Hours per Group: 50 Contact Hours

Instructions for Assignments (Management of Banking, Term V. PGDM

2015-17)
Assignment 3: Evaluation of Monetary Policy (Total 12 Marks)
Assignment Objective: The primary objective of this assignment is to improve
your ability to systematically study and evaluate the monetary policy decision
making process of a country and the rationales for the particular decision.
Each group is assigned one country whose monetary policy has to be studied.
You are to apply the monetary policy framework covered during the course and
also clearly identify each component, i.e. the goals, targets, and instruments.
Further, you are to study the minutes of the previous six meetings of the
monetary policy committee and identify the underlying transmission channels
and macroeconomic patterns that they believe to be dominant. You are also
required to analyse the monetary policy announcements to identify changes in
operating instruments and inflation forecasts and evaluate the rationale behind
such changes.

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Country/Region
India
Japan
United Kingdom
Switzerland
Sweden
United States of America
Canada
European Monetary Union
New Zealand
United Arab Emirates
South Africa
Australia
Saudi Arabia
Singapore

The assignment should be submitted in MS-Word or PDF format and must not
exceed 15 pages.

Assignment Deadline: Will be announced after completion of the

Monetary Policy Module

Expected Contact Hours per Group: 60 Contact Hours

Instructions for Assignments (Management of Banking, Term V. PGDM

2015-17)
Assignment 4: Book Review (18 Marks)
Assignment Objective: The primary objective of this assignment is to improve
your ability to relate the various concepts and themes covered during the course
with the views and analyses put forth by reputed academicians and practitioners
in fields and domains relating to banking and the financial sector. The selection
of the books has been done such that a balance is maintained between the
academic side and practical application/applicability.
Each group is assigned one book that has to be reviewed by them. Prior to
commencement of the course, the library was instructed to procure and reserve
the books for the course. I recommend that each group gets their assigned book
issued at the earliest.
For this assignment, you are required to critically review the assigned book. This
would involve the following:
a) Identifying the dominant themes in the book
b) Presenting the key arguments & recommendations put forth by the
author(s)
c) Your analysis of the underlying logic of the arguments and
recommendations (i.e. why the author(s) have put forth such arguments
and recommendations and under what conditions would the same hold
good).
d) Whether you agree/disagree with the author(s) and your reasons for the
same.
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Assigned Book
The Ascent of Money by Niall Ferguson
Slapped by the Invisible Hand by Gary Gorton
A Primer on Money, Banking & Gold by Peter Bernstein
The End of Alchemy by Mervyn King
How Big Banks Fail by Darrell Duffie
Basel III, The Devil & Global Banking by Dimitris Chorafas
Money- The Unauthorized Biography by Felix Martin
The Panic of 1907 by Robert Bruner
The Squam Lake Report by Anil Kashyap & 14 other co-authors
A Short History of Financial Euphoria by John Kenneth Galbraith
After the Music Stopped by Alan S. Blinder
Misunderstanding Financial Crises by Gary Gorton
Hubris by Ray Perman
The Cash Nexus by Niall Ferguson

In case the library has yet to procure the assigned book, please let me know at
the earliest so that I can make alternative arrangements. The assignment should
be submitted in MS-Word or PDF format and must not exceed 20 pages.

Instructions for Assignments (Management of Banking, Term V. PGDM

2015-17)
Assignment Deadline: Will be announced after completion of the Guest
Faculty Sessions
Expected Contact Hours per Group: 100 Contact Hours

Instructions for Assignments (Management of Banking, Term V. PGDM

2015-17)
Assignment 5: Financial Analysis of a Bank (17 marks)
Assignment Objective: The primary objective of this assignment is to improve
your ability to understand and evaluate the financial performance of an assigned
Indian Bank using the concepts covered during the bank financial analysis
module.
You are required to apply the financial analysis concepts to the assigned bank
and perform the analysis of performance of the bank over the three-year period
from 2013-2016. For the ratio analysis, you must use the ratios covered during
the sessions. In case you want to use some other ratios, you may use them over
and above those covered during the sessions. Your final report should contain the
following sections:
a)
b)
c)
d)
e)
f)
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Executive Summary
Introduction and Brief Background of the Bank
Key Financial & Non-Financial Highlights
Common-Size & Trend Statement Analysis
Financial Ratio Analysis
Overall Evaluation of Financial Performance (No need for doing any sort of
valuation)
Bank
IndusInd Bank
State Bank of India
ICICI Bank
HDFC Bank
Punjab National Bank
Yes Bank
IDBI Bank
Federal Bank
DCB Bank
Bank of India
Jammu & Kashmir Bank
Kotak Bank
Karur Vysya Bank
Bank of Baroda

The assignment should be submitted in MS-Word or PDF format and must not
exceed 20 pages. The supporting calculations should be submitted in a separate
MS-Excel File.

Assignment Deadline: Will be announced after completion of the

Financial Analysis Sessions
Expected Contact Hours per Group: 100 Contact Hours

Instructions for Assignments (Management of Banking, Term V. PGDM

2015-17)