Advanced Bank Management pattern and syllabus priority CAIIB 2024

Compulsory Paper 1- Advanced Bank Management

Chapters 

Topics 

Module A- Statistics

Definition of Statistics, Importance & Limitations & Data Collection, Classification & Tabulation

Importance of Statistics; Functions of Statistics; Limitation or Demerits of Statistics; Definitions; Collection of Data; Classification and Tabulation; Frequency Distribution

Measures of Central Tendency & Dispersion, Skewness, Kurtosis

Arithmetic Mean; Combined Arithmetic Mean; Geometric Mean; Harmonic Mean; Median and Quartiles; Mode; Introduction to Measures of Dispersion; Range and Coefficient of Range; Quartile Deviation and Coefficient of Quartile Deviation; Standard Deviation and Coefficient of Variation; Skewness and Kurtosis

Sampling Techniques

Random Sampling; Sampling Distributions; Sampling from Normal Populations;  Sampling from NonNormal Populations; Central Limit Theorem; Finite Population Multiplier

Time Series

Variations in Time Series; Trend Analysis; Cyclical Variation; Seasonal Variation; Irregular Variation; Forecasting Techniques

Correlation and Regression

Scatter Diagrams; Correlation; Regression; Standard Error of Estimate

Theory of Probability

Mathematical Definition of Probability; Conditional Probability; Random Variable; Probability Distribution of Random Variable; Expectation and Standard Deviation; Binomial Distribution; Poisson Distribution; Normal Distribution; Credit Risk; Value at Risk; Option Valuation

Estimation

Estimates; Estimator and Estimates; Point Estimates; Interval Estimates; Interval Estimates and Confidence Intervals; Interval Estimates of the Mean from Large Samples; Interval Estimates of the Proportion from Large Samples

Linear Programming

Graphic Approach; Simplex Method

Simulation

Simulation Exercise; Simulation Methodology

Module- B: Human Resource Management

Fundamentals of Human Resource Management

The Perspective; Relationship between HRM & HRD and their Structure and Functions;  Role of HR Professionals; Strategic HRM; Development of HR Functions in India

Development of Human Resources

HRD and its Subsystems; Learning and Development – Role and Impact of Learning; Attitude Development; Career Path Planning; Self-Development; Talent Management; Succession Planning

Human Implications of Organisations

Human Behaviour and Individual Differences; Employees Behaviour at Work; Diversity at Workplace and Gender Issues; Theories of Motivation and their Practical Implications; ‘Role’ : Its Concept & Analysis

Employees’ Feedback and Reward System

Employees’ Feedback; Reward and Compensation System

Performance Management

Appraisal Systems; Performance Review and Feedback; Counselling; Competency Mapping and Assessment of Competencies; Assessment Centres; Behavioural Event Interview (BEI)

Conflict Management and Negotiation

Conflict: Concept & Definition; Characteristics of Conflict; Types of Conflicts; Reasons for Conflict; Different Phases of Conflict; Conflict Resolution; Conflict Management; Negotiation Skills for Resolution of Conflicts

HRM and Information Technology

Role of Information Technology in HRM; HR Information and Database Management; Human Resource Information System (HRIS); Human Resource Management System (HRMS); e–HRM; HR Research; Knowledge Management; Technology in Training; HR Analytics

Module- C: Credit Management

Overview of Credit Management

Importance of Credit; Historical Background of Credit in India; Principles of Credit; Types of Borrowers; Types of Credit; Components of Credit Management; Role of RBI Guidelines in Bank’s Credit Management

Analysis of Financial Statements

Which are the Financial Statements; Users of Financial Statements; Basic Concepts Used in Preparation of Financial Statements; Accounting Standards (AS); Legal Position Regarding Financial Statements; Balance Sheet; Profit and Loss Account; Cash Flow Statement; Funds Flow Statement; Projected Financial Statements; Purpose of Analysis of Financial Statements by Bankers; Rearranging the Financial Statements for Analysis; Techniques used in Analysis of Financial Statements; Creative Accounting; Related Party Transactions

Working Capital Finance

Concept of Working Capital; Working Capital Cycle; Importance of Liquidity Ratios; Methods of Assessment of Bank Finance; Working Capital Finance to Information Technology and Software Industry; Bills/Receivables Finance by the Banks; Guidelines of RBI for Discounting/Rediscounting of Bills by Banks; Trade Receivables Discounting System (TReDS); Non-Fund Based Working Capital Limits; Other Issues Related to Working Capital Finance

Term Loans

Important Points about Term Loans; Deferred Payment Guarantees (DPGs); Difference between Term Loan Appraisal and Project Appraisal; Project Appraisal; Appraisal and Financing of Infrastructure Projects

Credit Delivery and Straight Through Processing

Documentation; Third-Party Guarantees; Charge over Securities; Possession of Security; Disbursal of Loans; Lending under Consortium/Multiple Banking Arrangements; Syndication of Loans; StraightThrough Loan Processing or Credit Underwriting Engines

Credit Control and Monitoring

Importance and Purpose; Available Tools for Credit Monitoring/Loan Review Mechanism (LRM)

Risk Management and Credit Rating

Meaning of Credit Risk; Factors Affecting Credit Risk; Steps taken to Mitigate Credit Risks; Credit Ratings; Internal and External Ratings; Methodology of Credit Rating; Use of Credit Derivatives for Risk Management; RBI guidelines on Credit Risk Management; Credit Information System

Restructuring/Rehabilitation and Recovery

Credit Default/Stressed Assets/NPAs; Wilful Defaulters; Non-cooperative borrowers; Options Available to Banks for Stressed Assets; RBI Guidelines on Restructuring of Advances by Banks; Available Frameworks for Restructuring of Assets; Sale of Financial Assets

Resolution of Stressed Assets under Insolvency and Bankruptcy Code 2016

Definition of Insolvency and Bankruptcy; To Whom the Code is Applicable; Legal Elements of the Code; Paradigm Shift; Corporate Insolvency Resolution Process; Liquidation process; Pre-packed Insolvency Resolution Process for stressed MSMEs

Module - D: Compliance in Banks and Corporate Government

Compliance Function in Banks

Compliance Policy; Compliance Principles, Process and Procedures; Compliance Programme; Scope of Compliance Function; Role & Responsibilities of Chief Compliance Officer (CCO)

Compliance Audit

Role of Risk Based Internal Audit and Inspection; Reporting Framework and Monitoring Compliance; Disclosure Requirements; Accounting Standards; Disclosures under Listing Regulations of SEBI

Compliance Governance Structure

Organizational Structure; Responsibility of the Board and Senior Management; Compliance Structure at the Corporate Office; Functional Departments; Compliance Structure at Field Levels; Internal Controls and its Importance

Framework for Identification of Compliance Issues and Compliance Risks

Compliance Issues; Compliance Risk; Inherent Risk and Control Risk; Independent Testing and Effective Audit Programme; Reporting Framework and Monitoring Compliance; Role of Inspection and Audit; Loan Review Mechanism/Credit Audit; What is Good Compliance

Compliance Culture and GRC Framework

How to Create Compliance Culture Across the Organisation; Governance, Risk and Compliance – GRC Framework; Benefits of an Integrated GRC Approach; Whistle-blower Policy; The Components of a Whistle-blower Policy; Reasons for Compliance Failures

Compliance Function and Role of Chief Compliance Officer in NBFCs

Framework for Scale Based Regulation for Non-Banking Financial Companies; Transition Path; Framework for Compliance Function and Role of Chief Compliance Officer in Non-Banking Financial Companies in Upper Layer and Middle Layer (NBFC-UL & NBFC-ML)

Fraud and Vigilance in Banks

Definition of Fraud; Definition of Forgery; Areas in which Frauds are committed in Banks; Banking and Cyber Frauds; Fraud Reporting and Monitoring System; Vigilance Function in Banks; RBI Guidelines for Private Sector and Foreign