DEPARTMENT OF COMMERCE

ALIGARH MUSLIM UNIVERSITY, ALIGARH

PRINCIPLES AND PRACTICES OF INSURANCE BUSINESS
(PDBI-1001)
P.G. Diploma in Banking Risk & Insurance Management (BRIM)
Ist Semester
Max. Marks -100
Sessional - 30 Marks
Examination - 70 Marks

Unit - I : History and Concept of Insurance: Basic principles; Role and importance of
Insurance in Society; Concept of Micro Insurance; Types of Insurance; Insurance
Documents and Policy Terms & Conditions; Insurance Agents: Role, qualifications,
functions and important of – Insurance Brokers; Direct/Composite/Reinsurance
Brokers in Insurance Market. Selling Process; Customer Services and Consumerism
in Insurance; Documentations and Policy conditions.

Unit-II : Life Insurance: History and Importance; Human Life Value (HLV); Risks of
Individuals in Life Insurance; Financial Planning and Individual Life Cycle; Riders in
Life Insurance Products; Life Insurance Products: Traditional and Non Traditional;
Components in premium determinations; Underwriting: Medical and Non-Medical;
Types of Claims.
Health Insurance: Determinants of Health; Factors affecting the health system in
India; Health Insurance Intermediaries; Underwriting: Medical and Non-Medical;
Health Insurance Products; Stakeholders in Claim Process; Challenges in Health
Insurance; Health Insurance to Poorer Section.

Unit-III : General and Commercial Insurance: History and significance; Various Distribution
channels; Claim settlements and Underwriting; Types of General Insurance:
Personal and Retail Insurance, Shopkeeper Insurance and Motor Insurance; Types of
Commercial Insurance: Property/Fire Insurance; Marine Insurance; Liability
Insurance; Crime Insurance: Fidelity Guarantee Insurance, Money Insurance, and
Burglary Insurance.

Unit-IV : Concept and Importance of Reinsurance: Tax benefits under Life Insurance
Policies; Ethical Behavior; Redressal of Policyholder Grievances; Married Women’s
Property Act Policy; Anti-Money laundering Guidelines of IRDA. Role of Ombudsman
Scheme; IRDA Role in Insurance Sector; Relevant Provisions and Applicability of
Consumer Protection Act 1986; IRDA guidelines related to detection and monitoring
of Insurance Frauds.
Suggested Readings:
1. Principles of Insurance (IC-01), Insurance Institute of India, Mumbai.
2. Practice of Life Insurance (IC-02), Insurance Institute of India, Mumbai
3. Practice of General Insurance (IC-11), Insurance Institute of India, Mumbai
4. Corporate Agent (IC-38), Insurance Institute of India, Mumbai
5. ICFAI Course Book – Life Insurance Vol. I, II, III (LBRARO)

Revised – 01.08.2018
 OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH
ACCOUNTING FOR BANKING & INSURANCE
(PDBI -1002)
P.G. Diploma in Banking Risk & Insurance Management (BRIM)
Ist Semester
Max. Marks -100
Sessional - 30 Marks
Examination - 70 Marks

Unit - I : FINANCIAL ACCOUNTING:

Meaning Importance and Role of Financial Accounting, Accounting Principles,
Concepts & Convention, Recording and Posting of Transactions. Preparation of
Annual Accounts of General Insurance Companies.

Unit - II : BANK BOOK KEEPING:

Special features of Bank, Accounting Slip System, Money at call & Short Notice
Rebate on bills discounted, Provision & Contingencies, schedule of bank advances
including N.P.A.
INSURANCE CLAIM: Loss of stock – Average clause, Salvage, Memorandum
Trading A/c, Consequential Loss Policy.

Unit - III : ANNUAL ACCOUNTS OF BANKS:

Preparation of Final Accounts of Banks as per the provisions of Banking
Regulation Act 1949 (New Provisions of 1992). Profit & Loss A/c and
Balancesheet.

Unit - IV : ACCOUNTS OF INSURANCE COMPANIES:

Types of Books - Statutory Books and Subsidiary Books, Features of Life
Insurance Companies Accounts: Revenue A/c; Surrender, Claims, reinsurance
Annuity, Bonus.
Annual Accounts of Life Insurance Companies, Schedules of Revenue A/c &
Balancesheet according to IRDA

Suggested Readings:

1. Agarwal, A.N. : Higher Science of Accountancy (CHapter of Bank Accounts)

2. Shukla & Grewal : Advanced Accounts
3. Vasvani, T. : The Banker & the Balance Sheet
4. Hingo Rani : Management Accounting
5. Man Mohan & Goyal : Principles of Management Accounting
6. Baig, Nafees : Problems of Managerial Accounting
7. Tondon, B.N. : Practice Auditing
8. Ahmad, N. : Simplied Approach to Financial Accounting

Revised – 01.08.2018
 DEPARTMENT OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH
QUANTITATIVE METHODS
(PDBI -1003)
P.G. Diploma in Banking Risk & Insurance Management (BRIM)
Ist Semester
Max. Marks -100
Sessional - 30 Marks
Examination - 70 Marks

Course Objective: This paper intends to familiarize the students with different
quantitative methods that help the organizations in decision making.

Course Contents:
UNIT – I Statistics for Management: Introduction to Statistics, different laws in
statistics, Measures of Central Tendency: Arithmetic Mean, Weighted
Arithmetic Mean, Median, Mode, Measures of Dispersion: Concept of
variation, purpose of measuring variation, Standard deviation, Mean
Deviation, and Standard error. Correlation: Meaning, Types of correlation,
and its Utility, Karl Pearson Coefficient Method, Rank Correlation Method.
UNIT – II Regression Analysis: Concept and significance, Types: Simple Regression
line and Regression equations, Mathematical properties. Time Series
Analysis: Relevance, causes of variation in time series data and Method of
least square, Parabola curve.
UNIT – III Interpolation and Extrapolation: Introduction, importance and problems
of Interpolating and extrapolating the data. Methods: Graphic Method,
Lagrange Method, Newton’s and Parabolic Curve method.
UNIT - IV Probability Theory: Probability Concept and utility in decision-making,
trial, event, sample space, Priori probability, Multiplication and Addition
Theorem. Probability Distributions: Meaning and properties of Binomial,
Poisson, and Normal distribution.
References:
1. N.D. Vohra, Quantitative Techniques in Management, the McGraw Hill Publications.
2. Gupta & Khanna, Quantitative Techniques for Decision Making, Prentice Hall of India.
3. D.C. Sancheti and V.K. Kapoor, Statistics: Theory, Methods & Application, S. Chand & Sons
4. C.R. Rao and P.R. Krishnaiah, Handbook of Statistics, kk
5. Levin, Rubin & Stingson, Quantitative Approaches to Management, McGraw Hill Publications.
6. Jagdish K. Patel, Handbook of the Normal Distribution, M. Dekker

REVISED – 01.08.2018
 DEPARTMENT OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH
INDIAN FINANCIAL SYSTEM
(PDBI -1004)
P.G. Diploma in Banking Risk & Insurance Management (BRIM)
Ist Semester
Max. Marks -100
Sessional - 30 Marks
Examination - 70 Marks

Unit - I : Introduction of Indian Financial System: Financial System – Meaning &

Feature, Financial System & Economic Development, Categories of
Financial Intermediaries and Financial Assets. Financial Markets: Nature
and Classification of Financial Markets; Money Markets, Primary Markets,
Secondary Markets, Capital Markets.

Unit - II : Indian Banking System - Functioning and Salient Feature of Commercial

Bank, Growth of Public Sector Banks, Private Sector Banks, Foreign Banks,
Development Banks, RRBS, Importance of Commercial Banks in Indian
Economy. Regulation of Commercial Banks in India, Universal Banking in
India.

Unit - III : Central Bank: Concept, Role in Indian Banking System and their
Management, Money market in India – Structures & Organization, Money
Market Instruments: Call Money Treasury bills certificate of deposits,
commercial bills etc. Review of India’s Monitory Policy, New Monitory
Policy Committee: Need, Structure and Role, Review of Credit Policy of
India.

Unit - IV : Mutual Funds –Concept, Types, Function and Development of Mutual Fund
industry in India, Performance of Mutual Fund, SEBI functions & its
provision for Mutual funds, Meaning and scope of hedge funds, Private
Equity (P/E) Funds and Exchange Traded Funds (ETF). Non Banking
Financial Institutions (NBFCs).
Insurance organizations: Insurance Companies – Life and General,
Privatization in Insurance Sector, IRDA. Concept and significance of
Merchant Banks and Investment Banks in India.

Suggested Readings:

1. H.R. Machiraju, Indian Financial Systems (1989), Vikas Publishing House Pvt. Ltd.
2. M. Y. Khan, Indian Financial System, Tata McGraw-Hill (1996)
3. L.M. Bhole, Financial Institution and Markets, Tata McGraw-Hill (1993)
4. Currency and Finance-RBI-Periodical Publications
5. S. Krishna Murthi, Mutual Funds in India, (1996) ICWAI, Calcutta publication.

REVISED – 01.08.2018
 DEPARTMENT OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH
BUSINESS ENVIRONMENT
(PDBI -1005)
P.G. Diploma in Banking Risk & Insurance Management (BRIM)
Ist Semester
Max. Marks -100
Sessional - 30 Marks
Examination - 70 Marks
Objective
This course develops ability to understand and scan business environment
analyse opportunities and take decisions under uncertainty.
Course inputs

UNIT - I Theoretical Framework of Business Environment: Concept and

significance, Elements of environment, Income, Social Security, Investment,
Poverty, Regional Imbalances. Techniques of environmental scanning and
monitoring: SWOT, PESTLE, QUICK, Industry Analysis and Competitor
Analysis Economic Trends;

UNIT - II Economic Environment of Business: Significance and elements of

economic environment; Economic planning in India; Government Policies -
Industrial policy, fiscal policy, monetary policy, EXIM policy; Development
banks and relevance to Indian business; Economic reforms, liberalisation
(LPG) and structural adjustment programmes.
UNIT - III Political and Legal Environment of Business: Components of political
environment; Changing dimensions of legal environment in India; FEMA
Consumer Protection Act, Role of Regulatory Institutions in Indian
Financial System – RBI and SEBI.
UNIT - IV International Environment: Multinational corporations; Foreign
collaborations and Indian business; Economic Union: EU, ASEAN, NAFTA,
BRICS, SAARC etc; Foreign trade policies, International Economic Policies;
International Business Strategy: Development Market Economies, Five
emerging market Economies.
References :
1. Adhikary, M: Economic Environment of Business, Sultan Chand & Sons, New Delhi.
2. Ahluwalia, I.J: Industrial Growth in India, Oxford University Press, Delhi.
3. Alagh, Yoginder K: Indian Development Planning and Policy, Vikas Pub, N. Delhi.
4. Aswathappa, K: Legal Environment of Business, Himalaya Publication, Delhi.
5. Chakravarty, S: Development Planning, Oxford University Press, Delhi.
6. Ghosh, Biswanath: Economic Environment of Business, Vikas Pub, New Delhi.
7. Govt. of India: Economic Survey, various issues.
8. Raj Agrawal and Parag Diwan, Business Environment; Excel Books, New Delhi.
9. Ramaswamy, V.S. and Nama Kumari: Strategic Planning for Corporate Success, Macmillan, New
Delhi.
10. Sengupta, N.K: Government and Business in India, Vikas Publication, New Delhi.
11. Sharan, Vyuptakesh: International Business Concepts, Environment and Strategy, Pearson.

REVISED – 01.08.2018
 DEPARTMENT OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH
MANAGEMENT OF BANKING & INSURANCE INSTITUTONS
(OPTIONAL) (PDBI -1006)
P.G. Diploma in Banking Risk & Insurance Management (BRIM)
Ist Semester
Max. Marks -100
Sessional - 30 Marks
Examination - 70 Marks

Unit - I Funds Management in Commercial Banks

 Reserve Bank of India: Functions. RBI’s monetary policy since independence
 Asset Liability Management (ALM) of Commercial Bank: Concept and
Significance of ALM.
 Management of Loans and Advances, Management of Liquidity, Management of
Primary and Secondary Reserves, Management of Capital Funds.

Unit - II Risk Management in Banking Business:

 Risk Identification in Banking Business, Type of Risk, off Balance Sheet Exposure,
VaR (Value at Risk)
 Risk Regulation – Necessity and Goals, Basel Accord I, II and III.
 Treasury Management: Concept, Role, Organisation, Products, Supervision and
Control.

Unit - III Insurance Sector Reforms in India and Insurance Risk Management:
 Privatisation of Insurance Sector in India: Reasons of Privatisation, Scope of
Privatisation, Malothra Committee Recommendations, Foreign Investment in
Insurance Sector.
 Regulatory Framework of Insurance in India: Insurance Law in India, Grievance
redressal guidelines of IRDA.
 Risk Management: Risk management in insurance organizations, Analyse the
concepts of risk appetite and its uses in the insurance sector, scope of operational
risk within an insurance organization.

Unit - IV *
Life Insurance Policy Conditions: Documents required, Medical Examination,
Nomination, Assignment, Surrender Value, Revival, Alteration, Riders of Life and
health insurance.
 Group Insurance: Nature & Scope, Features, Advantage, Eligible Groups, Different
Group Insurance Schemes, Pradhanmantri Bima Yojna.
 Rural Insurance: Needs, Regulation, Types of policies, Government Schemes.
 Social Insurance: Concept, Nature, Insurance Schemes for Economically Weaker
Section (EWS).
Suggested Readings:
1. Black, Jr. Kenneth and Harold Skipper Jr. (2000), Life and Health Insurance (13th Edition), Prentice-Hall,
Inc., Englewood Cliffs, N.J.
2. Trieschmann, James S., Sandra G. Gustavson, and Robert E. Hoyt (2001), Risk Management and Insurance,
(11th Edition), South-western college Publishing, Cincinnati, Ohio.
3. Rejda, George. E. (2001), Principles of Risk Management and Insurance (7th Edition), Addison Wesley
Longman, Inc., Boston, MS.
4. Alka Mittal & SL Gupta, Principles of Insurance and Risk Management, Sultan Chand and Sons, New Delhi.
5. RM Srivastava and Divya Nigam, Management of Indian Financial Institutions, Himalaya Publishing House.
6. Indian Institute of Banking & Finance, Bank Financial Management, Macmillan Publication.

REVISED – 01.08.2018
 DEPARTMENT OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH
INTERNATIONAL FINANCE
(OPTIONAL) (PDBI -1007)
P.G. Diploma in Banking Risk & Insurance Management (BRIM)
Ist Semester
Max. Marks -100
Sessional - 30 Marks
Examination - 70 Marks
Objective
This course helps students understand the conceptual framework of international finance and
use thereof in making financial decisions.

COURSE INPUTS
UNIT - I Introduction: Meaning and importance of international finance. IMF and World
Bank, International monetary system, International financial system, International
financial markets and instruments, Regulatory framework for financial services.
Balance of payments, BOP trends in major countries, Causes and impact of deficit
and surpluses.
Unit – II International Financial Markets and Instruments: New financial products and
services, Innovative financial instruments, Capital and money markets;
International Financial Instruments : GDRs, IDRs, Euro bonds, Floating rate
instruments, Venture capital: Concept and meaning, Methods.
UNIT - III Exchange Rate Determination and Forecasting: Foreign exchange market and
its functions, Foreign exchange market-cash and spot markets, Foreign exchange
rate, Types of exchange rate, Factors influencing exchange rate, Currency futures,
Exchange rate arrangement in India.
UNIT - IV Foreign Exchange Risk and Management: Management of risk in financial
services, Managing and measuring economic exposures, Management of interest
rate exposures, Leading and lagging, Pricing policy, Asset and liability management
techniques.
References
1. Apte, P .G: International Financial Management, Tata McGraw Hill, New Delhi
2. Buckley, Adrian: Multinational Finance, Prentice Hall, New Delhi.
3. Bhsalla, V.K. Management of Financial Services. Anmol, New Delhi.
4. Gordan, E and K. Natrajan Emerging Scenario of Financial, Himalaya Publishing House.
5. Henning, C.N., W Piggot and W.H Scott: International Financial Management, McGraw Hill,
International Edition.
6. Levi, Maurice D: International Finance, McGraw- Hill, International Edition.
7. O Connor DJ, Bueso AT: International Dimensions of Financial Management; Macmillan, New Delhi.
8. Shaprio, Alan.C: Multinational Financial Management, Prentice Hall, New Delhi.
9. Yadav, SurendraS., P.K Jain and Max Peyrard: Foreign Exchange Markets, Macmillan, New Delhi.

REVISED – 01.08.2018
 DEPARTMENT OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH

RISK MANAGEMENT IN BANK & INSURANCE

(PDBI- 2001)
P.G. Diploma in Banking Risk & Insurance Management (BRIM)
IInd Semester
Max. Marks -100
Sessional - 30 Marks
Examination - 70 Marks

Unit - I : Introduction to Risk. Meaning of Risk. Degrees of Risk. Types of Risk: Static and
Dynamic Risks, Financial and Non-financial risks, Pure and Speculative Risks. Risk
Management: Characteristics of Risk Management, Significance of Risk
Management, Principles of Risk Management, Objectives of Risk Management,
The Process of Risk Management, Methods of Risk Management. Major risks in
banking business.

Unit - II : Risk and uncertainty Determination. Methods of Risk determination; Risk

Adjusted Discounted Rate, Certainty Equivalent Method, Sensitivity Techniques,
Probability Technique, Standard Deviation Method, Coefficient of Variation
Method, Decision Tree Analysis.

Unit - III : Insurance Defined. Classifications of Insurance. How Insurance Companies

Operate. Production of Insurance. What Exposures are Insurable? The Role and
Importance of Competition in Insurance Markets. Legal Aspects of Insurance:
Legal Principles Relating to Insurance. Special Characteristics of Insurance
Contracts.

Unit - IV : Risk Financing: Risk Financing Options, Decision Factors. Property Loss Exposure:
Risk Assessment. Types of Property and of Property Losses. Causes of Property
Loss. Property Valuation. Property Risk Control. Property Risk Financing.

Suggested Readings:

1. Bernstein, Peter L., (1996), Against the Gods, John Wiley and Sons, New York.
2. Skipper Jr. Harold D., and W.R. Feldhaus (Forthcoming) Perspectives on Risk and
Insurance, Irwin/McGraw, Hill, Boston.
3. Bhattacharya, Hrishikas Working Capital Management; Strategies and Techniques,
Prentice Hall, New Delhi.
4. Brenley, Richard A. and Steward C. Myers Corporate Finance; Mcgraw Hill, Int. Ed. New
York.
5. Hampton, John Financial Decision Making; Prentice-Hall, Delhi.
6. Van Horne, J.C. and J.M. Wachowiez Jr. Fundamentals of Financial Management; Prentice-
Hall, Delhi.
7. Khan MY, Jain PK Financial Management; Tata Mcgraw Hill, New Delhi.

Revised date – 23.01.2019

 DEPARTMENT OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH
INFORMATION SYSTEM AND ANALYSIS (PDBI- 2002)
P.G. Diploma in Banking Risk & Insurance Management (BRIM)
IInd Semester

Max. Marks -100

Sessional - 30 Marks
Examination - 70 Marks
OBJECTIVE

The objectives of this course are to develop understanding regarding Information

System along with enhancing the data analysis skills of the students.

Unit - I Data and Information, Information Types, Information Characteristics, Concept of

System, System Component, Information System, Components of Information
Systems (IS), Types of IS, Roll of IS In Global Business, Competitive advantages
with IS, Transaction Processing System, Decision Support System, Management
Information System (MIS) and Executive Support System, System Development
Life Cycle (SDLC).
Unit-II Components of Information Systems; Software, Hardware, Telecommunication
Network, Data Communication, Internet, Internet Services and Applications,
Types of Network (LAN, MAN, WAN), Network Topology, Transmission Modes,
Guided and Unguided Media, TCP/IP Protocol Suite, Electronic Data Interchange
(EDI) and EDI Applications in Banking.
Unit-III E-Banking System, E- Banking Risk and their types, Risk Management,
Information Security, Security Threats & Attacks, Security Measures for E-
Banking Risks. Digital Payment Methods, Digital Currency and its Types. Data
Hierarchy, Data Base Concept, Data Base Management System, Advantages of
DBMS, Overview RDBMS, database keys, Application of DBMS in Banking,
Structured Query Language (SQL).
Unit-IV Hands On Spread Sheet program, Sheet formatting, Fill Handle, Functions and
Formulas (IF & SUMIF, COUNTIF, etc,), Finacial Fuctions, Charts, Sorting and
Filtering, What if Analysis, , Preparation of Employee Payroll Statement and
Invoice, Use of Spreadsheet in Banking Applications.

Suggested Readings:
1. Michal E. Whitman and Herbert J. Mattord, Principles and Practice of Information
Security, CENGAGE Learning 6th India Edition, 2011.
2. Joseph, P.T: E-Commerce, A Managerial Perspective.
3. V: Rajaraman, Analysis and Design of Information Systems, Prentice Hall, New Delhi, 3rd
Edition 2014.
4. Abraham Silberschatz, S. Sudarshan, Henry F. Korth, Database System Concepts, MacGraw
Hill, fourth Edition, 2002.
5. Behrouz A. Forouzan, Data Communications and Networking, Tata McGraw Hill, 4rth Edition,
2006.

Revised date – 23.01.2019

 DEPARTMENT OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH

MARKETING OF FINANCIAL SERVICES (PDBI- 2003)

P.G. Diploma in Banking Risk & Insurance Management (BRIM)
IInd Semester
Max. Marks -100
Sessional - 30 Marks
Examination - 70 Marks

Unit – I Concept of Marketing and Financial Services; Classification of Service

Industry; Characteristics of Service Industry; Difference between Service
Marketing & Goods Marketing; Fund Based & fee Based Services; Strategic
Marketing; Strategic Business Units;

Unit – II The concept of Bank and Insurance Marketing; The behaviour of users –
customer psychology; Market Segmentation; Formulation of Marketing Mix
for banking & insurance services; Bank & Insurance Marketing in Indian
Environment.; Role of & 7Ps of Marketing in Bank & Insurance Sector; Case
Studies.

Unit – III Marketing Environment; Characteristics of the Marketing Environment,

Technological, Social, Governmental and Economic Environment; Customer
Loyalty; Marketing Research Process; Market Positioning; The Product Life
Cycle.

Unit – IV Customer Retention through relationship marketing; Target Marketing;

Undifferentiated & Differentiated Marketing; Molecular Model & Servuction
Model; Marketing Planning & its process; Service Marketing Triangles;
Service Quality – The GAP model for service quality;

Suggested Readings:
1. Cravens, Hills & Woodruff, Marketing Decision Making, Concepts and Strategy (1980), Richard D.
rwin, Inc. Homewood, Illinois 60430 USA.
2. Christopher H. Lovelock, Services Marketing 1984, Prentice Hall, Inc. Eaglewood cliffs, NJ 07632,
USA
3. Philip Kotler, Marketing Management: Analysis, Planning, Implementation and Control (1993),
Prentice Hall of India Pvt. Ltd., New Delhi 110 001.
4. Philip Kotler, Kotler on Marketing (1999), The Free Press, 1230 The Avenue of Americas, NY
10020.
5. Leonard L. Beny and A. Parasuraman, Marketing Services. (1991), The Free Press, A Division of
Macmillan, Inc., 866 Third Avenue, NY 10022.
6. Thomas A Stewart, Intellectual Capital (198), 1163, E. Ogden Avenue, Suit 705-229, Naperville, IL
60563.8535 (USA).

Revised date – 23.01.2019

 DEPARTMENT OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH

BANKING LAW AND PRACTICE (PDBI- 2004)

P.G. Diploma in Banking Risk & Insurance Management (BRIM)
IInd Semester
Max. Marks -100
Sessional - 30 Marks
Examination - 70 Marks

Unit-I : BANKING LEGISLATION : Introduction, evaluation of Baking Law in India

Banking Regulation Act, 1949: Scope of the Act: Definition of Banking. Licensing of
Banking Companies, Maintenance of Assets and Liabilities, Bank Balance Sheet,
RBI Act, 1934; Reserve Bank’s Powers of Inspection and Directions. Restriction
on Loans and Advances, Collection and Furnishing of Credit Information Scheme
of Management for Nationalized Banks.

Unit-III : LAW RELATING TO NEGOTIABLE INSTRUMENTS:

The Negotiable Instruments Act, 1881, Provisions relating to Bills of Exchange,
Promissory Notes and Cheques, their Acceptance and Endorsements. Holder and
holder in-due-course. Circumstances under which the banker may/must refuse to
pay the cheques of customers, statutory protection to paying banker, position of
collecting bankers. Rules regarding the instruments obtained by fraud,
misrepresentation, forgery and illegal means.

Unit-IV : ORGANISATION :
Banks-Their organization and performance appraisal. Organizational structure of
Banks Formulation of Policies & their integration. Policies of Nationalized Banks
or Mobilization of Deposits, Advances of Loans and Credit expansion.

Unit-V : ADMINISTRATION :
Principles of Management: Their application to Bank Management. Delegation of
Authority - Centralization V/s Decentralization. Board of Directors: Concept of
balance Board- Their Advantages to Banks

Suggested Readings:

1. Brech, E.F.L. : The Principles & Practice of Management

2. Drucker, P.F. : The Practice of Management
3. Khertamwala, J.S. : The Negotiable Instruments Law
4. Tannan, M.L. : Banking Law & Practice in Industries
5. Davar, S.R. : Law & Practice of Banking
6. Sherlekar : Business Administration & Management.

Journals
1. Banker (India) 4. Quarterly Journal of Management Development
2. Merchantile Law Reporte 5. Management Today
3. Company Cases 6. Harvard Review

Revised date – 23.01.2019

 DEPARTMENT OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH

FUNDAMENTALS OF ACTUARIAL SCIENCE (PDBI- 2005)

P.G. Diploma in Banking Risk & Insurance Management (BRIM)
IInd Semester
Max. Marks -100
Sessional - 30 Marks
Examination - 70 Marks

Unit - I : Introduction to Statistics Mean-Variance Analysis. Computation of Mean and

Variance. Variance as a Measure of Risk. Discrete Term. Structure Models.
Modeling Stochastic Term Structure. Interest - Sensitive Cash Flows. Valuation of
Interest. Sensitive Cash Flows

Unit-II : Probability Distributions. Various Distributions like Normal, Binomial and

Poisson. Essential Properties of Each. Probability Distributions used in Risk
Management. Rationale of their use. Estimation, Method of Estimation. Use of
Estimates. Monte Carlo Simulation. Use of Monte Carlo Method.

Unit-III : .Regression Theory. Computation of Partial and Multiple Linear Regressions.

Liability Cash Flows. Modeling Liability Cash Flows. Measuring the Effectiveness
of Risk Management. Products with Basic Risk Credit Risk Metrics.

Unit-IV : Mortality Tables. Probabilities of Survival and Death. Computation of Mortality

Rates. Preparation of Mortality Tables. Mortality Tables for Insurance and for
Annulties. Valuation of Life Insurance Risks. Principles underlying it.
Determination of Life Reserves. Meaning. Methods of Calculation of Life Reserve.
Terminal, Initial and Mean Reserves. Actuarial Analysis of Pension Plans.

Suggested Readings:

1. Hossack, I.B., J.H. Polland and B. Zehnawirth (1999), Introductory

Statistics with Applications in General Insurance, COmbridge University Press, Cambridge, England.
2. Babbel, David F. and Graig B. Merrill (1996), Valuation of Interest
Sensitive Financial Instruments, Society of Actuaries, Martingale.
3. Morgan, J.P. (1997), Introduction to Credit Metrics, J.P. Morgan, New York.
4. Bell, David E. and Authure Shleifer Jr. (1995), Risk Management
Course Technology Inc., Cambridge, MA.

Revised date – 23.01.2019

 DEPARTMENT OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH

ASSETS MANAGEMENT (PDBI- 2006)

P.G. Diploma in Banking Risk & Insurance Management (BRIM)
IInd Semester (OPTIONAL)
Max. Marks -100
Sessional - 30 Marks
Examination - 70 Marks
Objective
This course exposes the students to the various concepts of investment management and
provides an in-depth study of various issues there under.
Course Inputs

UNIT - I Introduction: Investment, Features of Investment Programme, Finance Vs

Investment, Real & Financial Assets, Factors of Sound Investment,
Investment Decision process - Return and Risk – Measurement of return &
risk.

UNIT - II Types of Investments: Financial investments -securities and derivatives,

deposits, tax- sheltered investments; Non-financial investment -real estate,
gold and other types and their characteristics; Sources of financial
information.

UNIT - III Fundamental Analysis: Economic analysis, industry analysis and

company analysis.
Systematic Process of Asset Management in an industry: Development
of Assets; Operation, Upgraduation and disposing of assets in cost effective
manner including risk, cost performance.

UNIT - IV Fixed Income Securities: Bonds, debentures, preference shares, and

convertible securities.
Variable Income Securities: Equity shares – Valuation of equity, Shares
based on earnings.
References
1. Agarwala, K.N. and Deeksha Agarwala: Bulls, Bears and The Mouse, Macmillan, New Delhi.
2. Cheney, J. and E. Muses: Fundamentals of Investments, Paul, New York.
3. Clark, James Fransis: Investment- Analysis and Management, McGraw Hill , International Edition.
4. Dalton, John M: How the Stock Markets Works, Prentice Hall, Delhi.
5. Domodran: Investment Valuation, John Wiley, New York”
6. Fabozzi, Frank J: Investment Management, Prentice Hall, International Edition
6. Fischer, Donald, E. and Ronald, J. Jordan: Security Analysis and portfolio Management, Prentice
Hall, Delhi.

Revised date – 23.01.2019

 DEPARTMENT OF COMMERCE
ALIGARH MUSLIM UNIVERSITY, ALIGARH

PRINCIPLES OF PENSION PLANNING (PDBI-2007)

P.G. Diploma in Banking Risk & Insurance Management (BRIM)
IInd Semester (OPTIONAL)

Max. Marks -100

Sessional - 30 Marks
Examination - 70 Marks

Unit –I Introduction: Concept of Pension and basic features of a pension plan,

difference between pension and family pension. Development of Pension
Plan, factors affecting the choice of the pension plan. Type of plans: Defined
Benefit plan and Defined Contribution plan and their basic features.

Unit – II Retirement Planning: Concept and need of retirement plans. Economic

problems of old age, Social issues of ageing and the provision for increasing
longevity, standard of living after retirement. Retirement benefits;
employees provident fund, gratuity and leave encashments.

Unit – III Regulation of Pension: Regulation of pension in India under old and new
pension schemes, Need for pension reform in India, New pension system of
India and its implementation, Basic features of the New Pension Scheme,

Unit – IV Tax Treatment of Pension and Compensations: Taxation of Pension,

commutation of pension and tax thereon, Deduction on contribution to
employees pension fund under EPF Act and certain pension fund u/s 80C,
Deduction in respect of contribution to certain pension funds u/s 80CCC
and Deduction in respect of contribution to pension schemes of central
government u/s 80CCD, Tax treatment of retrenchment compensation and
compensation on Voluntary Retirement Scheme.

Suggested Readings:

1. Gupta N.D., (2006) Pension Plans, The Institute of Chartered Accountant of India, New Delhi.
2. Ahuja, Giris (2008). A Systematic Approach to Income Tax (17th Edition), Bharat LawNew Delhi.
3. Rajan, S.I. (2008), Social Security for the elderly, Routledge, New Delhi.
4. Dr. H.C. Mehrotra, (2019) Income Tax Law and Accounts, Sahitya Bhawan Publications, New Delhi.

Revised date – 08.02.2019

PROJECT REPORT
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