MBA AREA-1: FINANCE-

BA 655 SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Unit 1:
Introduction to investment management – Investment Alternatives, Risk and Return, measuring historical and expected risk and return

Unit 2:
Fundamental Analysis – Economic Analysis, Industry Analysis & Company Analysis, Technical Analysis

Unit3:
Behavioural Finance – Heuristic Driven Biases, Frame Dependence, Emotional and Social Influence, Market Inefficiency
Bond Valuation – Characteristics, Prices, Yields, Risks, Yield Curve, Term Structure, Determinants of Interest rates
Bond Portfolio Management – Interest Rate Risks, Active, Passive & Hybrid, Strategies, Interest Rate Swaps
Equity Valuations – Valuation Models

Unit 4:
Portfolio Theory – portfolio risk & return, efficient frontier, optimal portfolio, the Single Index Model Capital Asset Pricing Model, Arbitrage Pricing Theory-Capital Market Line, Securities Market Line
Efficient Market Hypothesis – Random Walk, Efficient Markets

Unit 5:
Portfolio Management Framework, Equity Investment Strategies, Virtual Investment Game

Unit 6:
Term paper on Equity Research

Text Books:

  1. Chandra Prasanna. Investment Analysis and Portfolio Management. Tata McGraw Hills Publishing Company Ltd.: New Delhi, 2012.
  2. Fisher & Jordan. Security Analysis & Portfolio Management. Prentice Hall of India Pvt. Ltd.: New Delhi, 2012.

References:

  1. Valla V.K. Investment Management. S. Chand & Company Ltd.: New Delhi, 2012.
  2. Bodie, Kane, Marcus, Mohanty. Investments. Tata McGraw-Hill, 2012
  3. Sharpe, Alexander, Bailey. Fundamentals of Investment. Pearson Education/PHI, 2012.

BA 656 ADVANCED FINANCIAL MANAGEMENT

Unit 1: Merchant Banking activities
Evolution, Issue Management, Portfolio and Investment management, Role of MB in corporate restructuring, mergers and acquisitions

Unit 2: Raising long term funds
Venture capital, IPO, FPO, private placement, preferential placement, hybrid financing options

Unit 3: Leasing vs Hire purchase decisions
Types and mechanics of leasing, leasing as a financial decision, Pros and cons of leasing, Pros and cons of hire-purchase

Unit 4: Performance management
Value based management, EVA, Balanced scorecard;

Unit 5: Mergers and Acquisitions
Reasons and mechanics of a merger, costs and benefits of a merger, exchange ratio

Unit 6: Insurance
Term paper on any aspect of the insurance sector

Text Book:

  1. Chandra Prasanna. Financial Management. Tata McGraw-Hill Publishing Company: New Delhi, 8th edition.

References:

  1. Khan & Jain. Financial Management. Tata McGraw-Hill Publishing Company: New Delhi, 5th edition.
  2. Machiraju H.R. Merchant Banking. New Age International Publishers, 4th edition.

BA 658 FINANCIAL ENGINEERING

Unit 1:
Introduction to Financial Engineering, Factors contributing to the growth of Financial Engineering, Conceptual & Physical Tools of Financial Engineering, Introduction to Derivatives, Mechanics of Futures Market

Unit 2:
Hedging Strategies using futures, Interest Rates

Unit 3:
Determination of Forwards & Future Prices, Interest Rate Futures

Unit 4:
Market Index -Using Index Futures, Stock Futures, Mechanics of Options Markets -Using Index Options, Using Stock Options

Unit 5:
Properties of Option Market Option Pricing Models-Binomial Option Pricing Model, Black – Scholes Option, Pricing Model

Unit 6:
Derivative Market in India -Trading, Clearing & Settlement Procedures, Regulatory Framework Future & Option Strategies

Text Books:

  1. Hall, John C and Basu, Sankarshan. Options, Futurs & Other Derivatives. Pearson Education: Delhi, 2010.
  2. Marshall, John F. and Vipul K. Bansal. Financial Engineering, Miami: Kolb Publishing Co., 1993.

References:

  1. Wilmott, Paul. Derivatives: The Theory and Practice of Financial Engineering. Wiley: New York, 1999.
  2. Neftci, Salih N. Principles of Financial Engineering. Amsterdam: Elsevier, 2004.
  3. Mason, Scott, Robert Merton, André Perold and Peter Tufano. Cases in Fin ancial Engineering: Applied Studies of Financial Innovation. Englewood Cliffs: Prentice – Hall, 1995.
  4. Smithson, Charles W. Managing Financial Risk: A Guide to Derivative Products, Financial Engineering, and Value Maximization. McGraw Hill: New York, 1998.

BA 659 FINANCIAL INSTITUTIONS AND FINANCIAL SERVICES

Unit 1: Introduction
Overview of financial system, Financial sector reforms

Unit 2: Financial Markets
Capital market — Government securities market, Industrial securities market,
Money market — Call money market, T-bill market, Commercial bill market, Discount market

Unit 3: Regulatory and promotional institutions
RBI – Role of RBI, Monetary policies of RBI
SEBI – Role of SEBI in the primary and secondary market, Investor protection measures
IRDA – Investor protection measures, Reinsurance
PFRDA- Regulation and Development of Pension Systems

Unit 4: Banking
Understanding the functioning of various banks in India (Public Sector/Pvt Sector Banks, Domestic/Foreign Banks, Scheduled/ Non-Scheduled
Banks, Co-operative Banks, Regional Rural Banks, Local Area Banks, Payment Banks, Small Finance Banks), Basel norms, CAMELS rating

Unit 5: Non-banking financial institutions
Insurance companies, Venture capital firms, Credit rating agencies, Depository services, NBFCs, Micro finance institutions, Developmental
Financial Institutions.

Text Books:

  1. Bhole L.M., Jitendra Mahakund : Financial Institutions and Markets, McGraw-Hill Publishing Company, New Delhi, 5th edition

References:

  1. Kohn Meir: Financial Institutions and markets, Oxford University Press, 2nd edition
  2. Khan M.Y: Financial Services, Tata McGraw Hill, 6th edition

BA 660 Management of Banking Operations

UNIT 1: COMMERCIAL BANKING: Origin and evolution of Banks; Growth and structure of Banking System in India, Functions of commercial banks

UNIT 2: RETAIL BANKING: Introduction, definition, role and applicability of retailing concepts. Retail Banking Products (both Liability and Asset Products) and Services Overview; Marketing / Selling of these products and services, Customer Relationship Management (CRM) – Role, impact and stages of customer relationship management. Emerging trends in Retail Banking including Digital Banking and Emerging Payment Methods.

UNIT 3: CORPORATE AND INVESTMENT BANKING: Meaning and importance Products (both Liability and Asset Products) and services viz., Cash Management, Salary Payment, Debt Management, Factoring and Forfaiting, Trusteeship, Custodial services, Business advisory, Off shore services, Trade services, Forex Management, Corporate Deposits, Investment Banking, Merchant Banking services offered by banks, Asset Products

UNIT 4: CREDIT MANAGEMENT
4.1 Types of credit (Term Lending, Working Capital Lending, Fund Based & Non-Fund Based Lending, Documentary Credit etc etc Consortium finance, Multiple banking, Syndication of loans, Financing for Infrastructure)
4.2 Principles of Credit Management
4.3 Credit Appraisal Techniques
4.4 Credit Rating
4.5 Pre and Post sanction supervision
4.6 Credit Monitoring and follow up

UNIT 5: RISK MANAGEMENT
Risk Concept – The Basel Norms -Risk in Banks – Risk Management Framework – Structure Risk Identification – Risk Measurement – Risk Mitigation – Monitoring and Control – Risk Reporting.

UNIT 6: NPA Management/ Dealing with Credit Defaults
6.1. Prudential Norms of RBI on Income Recognisition, Asset Classification and Provisioning pertaining to Advances
6.2 Dealing with credit defaults (Restructuring, Settlements, SARFAESI Act 2002, Debt Recovery Tribunals, other Legal Options including Civil Courts and Lok Adalats, Insolvency & Bankruptcy Code, 2016)

UNIT 7: CENTRAL BANKING: Evolution and Functions of Central Banking; Development of Central Banks in Developed and Developing countries. Functions of a Central Bank, Banking Ombudsman Scheme.

UNIT 8: INTERNATIONAL BANKING: Forex Business, Correspondent banking, Credit to exporters and importers. Risks in International Trade, Role of ECGC, Exim Bank, FEDAI, FEMA.

Text Books:

  1. Advance Bank Management by IIBF published by Macmillan 2011
  2. Retail Banking by IIBF published by Macmillan 2015
  3. Central banking by IIBF published by Macmillan 2011
  4. Bank Financial Management IIBF published by Macmillan 2018