Management of Financial Services

Syllabus

(MBA 912-18) MANAGEMENT OF FINANCIAL SERVICES 

Unit-I

Financial Services: Meaning, Types and Their Importance. Financial Sector Reforms in India, Future Challenges for Indian Banks, Improving Risk Management Systems, Banking and the Management of Financial Services

Mutual Funds and Pensions Funds, Insurance Services, Bank assurances, Reinsurances, Venture Capital –Private Equity –Strategic Secrets of Private Equity, Investment Strategies, Hedge Funds, E Banking, Securitization –Indian Banking and Financial Crisis, Asset Reconstruction Companies, Depositaries, Credit Cards, Micro/Macro Finance, Financial Inclusion, Behavioural Finance.

Depository – Introduction, Concept, Depository Participants, Functioning of Depository Systems, Process of Switching Over to Depository Systems, Benefits, Depository System in India, Dematerialization and Rematerialization. Role, Objectives and Functions of SEBI and its Guidelines Relating to Depository System.

Unit-II

Credit Rating: The Concept and Objective of Credit Rating, Various Credit Rating Agencies in India, Credit Rating Agencies – Importance, Issue, Difference in Credit Rating, Rating Methodology and Benchmarks, Are Indian Credit Rating Credible? International Credit Rating Agencies – Crisis of Confidence?

Leasing: Concept and Development of Leasing, Business, Difference between Leasing & Hire Purchase, Types of Leasing Business, Advantages to Lessor and Lessee. Tax Aspect of Leasing.

Merchant Banking: Origin and Development of Merchant Banking in India Scope, Organizational Aspects and Importance of Merchant Bankers. Latest Guidelines of SEBI w.r.t. Merchant Bankers.

Venture Capital: Concepts and Characteristics of Venture Capital, Venture Capital in India, Guidelines for Venture Capital.

Unit-III

Debt Securitization: Meaning, Features, Scope and Process of Securitization.

Factoring: Development of Factoring Types & Importance, Procedural Aspects in Factoring, Financial Aspects, Prospects of Factoring in India.

Plastic Money: Concept and Different Forms of Plastic Money – Credit and Debit Cards, Pros and Cons. Credit Process Followed by Credit Card Organizations. Factors Affecting Utilization of Plastic Money in India.

Unit-IV

Asset Liability Management: Significances, ALM Process, Techniques – Gap, Duration, Simulation, Value at Risk Value of Equity and Market Value of Equity Perspective.

Risk Management in Banks: Credit Risk Management, Operational Risk Management, Market Risk Management, Corporate Treasury Management, Liquidity Risk Management, Governance Risk and Compliance, Asset Liability Management and Basel 2 – Basel 1 and 2, IPR and Basel 2, Three Pillars, ALM and Interest Rate Swaps, Swaps as a Risk Management Tool, ALM and Capital Adequacy, ALM Software’s.

Note: Relevant Case Studies should be discussed in class.