Paper – 1: Advance Bank Management (Compulsory paper)

The topics covered under the syllabus of Advance Bank Management as per
the CAIIB syllabus 2020 are as given below:  
Syllabus of CAIIB (Advance Bank Management)

Topics as per the CAIIB syllabus   Brief Details 

1. The fundamentals of economics 

2. Micro Economics
Module – A: Economic Analysis
3. Macro Economics 
4. Indian Economy

1. Concept of time Value of Money

2. Sampling methods
3. Presentation of data
4. Analysis and interpretation of sample data 
5. Hypothesis testing 
6. Time series analysis  
Module – B: Business
7. Mean
Mathematics
8. Standard deviation 
9. Co-relation 
10. Regression 
11. Covariance and volatility 
12. Probability distribution
13. Linear programming

1. Fundamentals of HRM
2. Structure and functions of HRD
3. Role of HR professional
Module – C: HRM in banks
4. Performance Management and appraisal
systems
5. HRM and Information Technology

1. Principles of Credit Management

2. Credit Appraisal
3. Comparative Statement
Module – D: Credit Management 4. Structuring a Credit Proposal
5. Disclosure of the list of defaulters
6. Appraisal methodology for different type of
clients
 COMPULSORY PAPER - I: ADVANCED BANK MANAGEMENT

MODULE - A: Economic Analysis

The fundamentals of Economics: Scarcity and Efficiency - Microeconomics & Macroeconomics in
brief - Types of economies - Market, Command and Mixed Economies - Macroeconomics:
Business cycles - Money and banking - Unemployment & inflation - Interest rate determination and
various types of interest rates.
Indian Economy (a) Overview of the Indian economy including recent reforms (b) Interaction
between fiscal, monetary & exchange rate policies in India - Financial Markets (i) Money Market
(ii) Capital Market (iii) Foreign Exchange Market - globalization and its impact - Challenges ahead
- Banking & Finance - current issues

MODULE - B: Business Mathematics

Concept of time Value of Money - Net Present Value - Discounted Cash Flow - Sampling methods
- presentation of data - analysis and interpretation of sample data - hypothesis testing - Time
series analysis - mean/ standard deviation - co-relation - Regression - covariance and volatility -
Probability distribution - Confidence interval analysis - estimating parameters of distribution - Bond
valuation - duration - modified duration.
Linear programming - decision making-simulation - Statistical analysis using spreadsheets.
Features of Spread sheet - Macros, pivot table, statistical and mathematical formulae.

MODULE - C: HRM in banks

Fundamentals of HRM, development of HRM in India, Relationship between HRM and HRD,
Structure and functions of HRD, Role of HR professional, Human implications of organizations;
training and development, attitude and soft skills development, role and impact of training, career
path planning and counseling, employee behavior, theories of motivation and their practical
implications, role concepts and analysis, self-development., Performance Management and
appraisal systems; Reward/ punishment and compensation systems., HRM and Information
Technology, information and data management, knowledge management.

MODULE - D: Credit Management

Principles of Credit Management Credit Appraisal Analyzing Financial Performance - Relationship
between items in Balance Sheet and Profit and Loss Account. Trend Analysis, Comparative
Statement - Common Size Statement, Preparation of projected Financial Statements. - Ratio
analysis - Interpretation and analysis of different Ratios, Limitation of the use of ratios. Statement
of Sources and Applications of Funds.
Structuring a Credit Proposal - Working Capital Concept and Management Appraisal techniques
for different constituents - trade cycle - credit rating - Technical and economic feasibility studies -
Credit Rating - Rating Methodology - Objectives and benefits of rating - Term Lending - Debt
Service Coverage Ratio - Cash Flow Analysis - Cash Budget - Bill Finance - Deferred Payment
Guarantee - Credit Scoring - Credit Delivery System - Documentation - Post sanction supervision,
Control and monitoring of credit - Consortium finance, Multiple banking, Syndication of loans.
Infrastructure financing.
Dealing with credit defaults, Stressed assets, Corporate Debt restructuring, SARFAESI, NPAs,
recovery options, write-off. Disclosure of the list of defaulters: objectives and procedure. Appraisal
methodology for different type of clients/ products.
Paper – 2: Bank Financial Management (Compulsory Paper)

The topics covered under the syllabus of Bank Financial Management as per
the CAIIB syllabus 2020 are as given below:  

Syllabus of CAIIB (Advance Bank Management)   

Topics as per the CAIIB syllabus   Brief Details 

1. Forex Business
2. Documentary letters of Credit
Module – A: International Banking 3. Role of Exim Bank
4. Role and rules of FEDAI
5. Role of FEMA and its rules

1. Risk-Concept
2. Risk Identification
Module – B: Risk Management
3. Market Risk identification
4. Current guidelines on risk management

1. Concepts and function

Module – C: Treasury Management
2. Interest rate risk3. Derivatives

1. Prudential norms
2. Banks Balance Sheet
3. RBI Guidelines
Module – D: Balance Sheet Management 4. Funding Liquidity
5. Gap Analysis
6. Asset Classification
7. Disclosure guidelines

PAPER - II: BANK FINANCIAL MANAGEMENT

MODULE - A: International Banking
Forex Business; factors determining exchange rates, Direct and indirect quotations, spot/
forward rates, premium and discount, cross rates.
Basics of forex derivatives; forward exchange rate contracts, Options, Swaps.
Correspondent banking, NRI accounts

Documentary letters of Credit - UCPDC 600, various facilities to exporters and importers.
Risks in foreign trade, role of ECGC, types of insurance and guarantee covers or ECGC.
Role of Exim Bank - Role of RBI and exchange control - Regulations in India, Role and
rules of FEDAI - Role of FEMA and its rules

MODULE - B: Risk Management

Risk-Concept - Risk in Banks - Risk Management Framework - Organizational Structure -
Risk Identification - Risk Measurement/ - Sensitivity - Basis Point Value (BPV) - Duration -
Downside Potential - Value at Risk, Back Testing - Stress Testing - Risk Monitoring and
Control - Risk Reporting - Market Risk identification, Measurement and management/
credit risk - rating methodology, risk weights, eligible collateral for mitigation, guarantees;
credit ratings, transition matrices, default probabilities, Credit risk spreads, risk migration
and credit metrics, Counterparty risk. Credit exposures, recovery rates, risk mitigation
techniques, -/ Operational and integrated Risk Management - Risk management and
capital Management – ‘Basel Norms - Current guidelines on risk management

MODULE - C: Treasury Management

Concepts and function; instruments in the treasury market, development of new financial
products, control and supervision of treasury management, linkage of domestic operations
with foreign operations.

Interest rate risk, interest rate futures, Mix/ Pricing of Assets, Liabilities - On-Balance Sheet
Investment and Funding Strategies - Stock options, debt instruments, bond portfolio
strategy, risk control and hedging instruments. Investments - Treasury bills, money market
instruments such as CDs, CPs, IBPs Securitisation and Forfaiting; refinance and
rediscounting facilities. Derivatives - Credit Default Swaps/ Options

MODULE - D: Balance Sheet Management

Prudential norms - Capital Adequacy. Implementation of ‘Basel Norms guidelines: RBI
guidelines. Banks Balance Sheet - Components of assets/ Liabilities/ ALM Implementation
- RBI Guidelines - Gap Analysis - Mechanics, Assumptions, and Limitations - Illustrations
of Actual Gap Reports - The Relationship Between Gap and Income Statement - Funding
Liquidity - Trading/ Managing Liquidity - Contingency Funding - Business Strategies : Profit
and profitability analysis, Asset Classification - provisioning - effect of NPA on profitability,
Shareholder value maximization & EVA- profit planning-measures to improve profitability.
Disclosure guidelines
Paper – 9: Information Technology (Elective paper)

The topics covered under the syllabus of Information Technology as per the
CAIIB syllabus 2020 are as given below:  

Syllabus of CAIIB (Information Technology)

Topics as per the CAIIB syllabus   Brief Details 

1. Impact of IT on Banking
2. System Software
3. Application Software
Module – A: Introduction to Information Technology 4. Computer Networks
5. Network Equipment
6. Data Communication
7. Max., Network / Security Equipment

1. Systems Design & Analysis

2. Software Development Life Cycle (SDLC)
Module – B: Systems and Design 3. Tools System Architecture
4. Data Warehousing
5. MIS and Organization Support Systems

1. Centralized Banking System

2. Delivery Channels
Module – C: Applications in Banking
3. E-Commerce
4. PKI5. Service – Level Agreement

1. Threats to Information System

Module – D: Security, Controls and Guidelines
2. IT Service Delivery & Support
Elective Paper - IX: INFORMATION TECHNOLOGY
Module - A: Introduction to Information Technology
Impact of IT on Banking: Changing Financial Environment and IT as a Strategic Response
Hardware (H/ W) - Software: (S/ W)
System Software:
Operating Systems (Desktop OS/ Server OS) Windows (Desktop/ Server)/ UNIX (H. P. Unix,
Sun Solaris, Linux, IBMAIX)
Computer Languages - 1st Generation Languages (Assembly), 2nd Generation (FORTRAN,
ALGOL, COBOL), 3rd Generation (C, C++, C# and JAVA etc.) and 4th Generation Languages
(Clipper, Power Builder, SQL etc.) and 5th Generation Languages (Logic Programming
Languages)
Database Management System and Relational Database Management Systems (Oracle10g,
MS SQL-2005, MySQL)
Application Servers (Oracle 10AS, BeWeblogic, WebShare ) Web Servers (IIS, Apache etc.)
Web Browsers (IE 7.0, Firefox etc.)
Application Software: Packaged Software, Custom built Software etc. Computer Networks,
Equipment & Data Communication:
Computer Networks: Network Layers, Topologies, Protocols, IP Address Mechanisms, LAN,
WAN, VLAN, Intranet, Extranet, Internet, Network Equipment: Cables (BNC, Twisted Pair,
Fibre Optics), Connectors, I/Os, Patch Panel, Jack Panels, Network Racks.
Data Communication: CLL, Leased Lines, MPLS, VPNS, ISDN, Satellite Links, Wi Fi, Wi Max.,
Network/ Security Equipment: Modems, Hubs, Switches, Bridges, Routers, Firewalls,
NIDS, HIDS, IPS
Module - B: Systems and Design
Systems Design & Analysis Data modeling, Entity Relationships, Generic Data Modeling,
Semantic Data Modeling Normalization (from 1st to 3rd and BCNF, 4th & 5th level of
normalization)
Software Development Life Cycle (SDLC) - Various phases of SDLC, In-house/ Out-sourcing,
Software Project Management, Computer Aided Software Engineering (CASE) Tools. System
Architecture: Clients (Hardware/ Software), Servers (Hardware/ Software). Client Server
Architecture, 3 Tier Architecture, N-Tier Architecture etc. Data Warehousing - Data Mining
tools
MIS and Organization Support Systems - DSS, EIS, GDSS, Groupware and Multimedia
Business Intelligence - Expert Systems, Artificial Neural Networks (ANN) Grid Computing,
Virtualization and Consolidation.
Module - C: Applications in Banking
Centralized Banking System/ Core Banking System/ System Administration, Database
Administration, Application Server and Application Administration, Network Administration,
Domains, ISPS, Hosting, Data Downloads/ Uploads, Band widths, Data Centre, Data Storage
Devices, Data Backups/ Restoration, Disaster Recovery Centre
Delivery Channels - ATM, EFTPOS, Phone Banking, Internet Banking, SMS Banking, Mobile
Banking, Credit/ Debit Cards, Smart Cards E-Mails, SMS alerts
E-Commerce - Secure Electronic Transfer (SET), Payment Gateways (Credit card/ Debit
cards), Authentication of payments etc.
PKI - CCA, CA, RA, Digital Certificate, Digital Signature, Non-repudiation of Origin, Non-
repudiation of Receipt.
Service - Level Agreement
Module - D: Security, Controls and Guidelines
Threats to Information System: i) Physical (Insiders/ outsiders) ii) Viruses, Worms, Trojan
horse, Malwares, Software bombs, Phishing, Spoofing, Spamming, denial of service attacks
etc. Information System Security Measures, Policy, controls, ISO, 17799, BS7799, IS4477, IS
Audit, BCP/ DRP, IT Act 2000, Basel guidelines for E-banking, Various RBI Committee Reports
on Information Systems.
IT Service Delivery & Support: Service level management practices, Operations
management - work load scheduling, network services management, Preventive
maintenance, Systems performance monitoring process tools, techniques, Functionality of
hardware, software, data base. Drafting of RFP, system specifications, SLAs, Capacity
planning & monitoring, Change management processes/ scheduled, emergency in
configuration of production systems, application of patches, releases etc., Incident &
problem management practices, System resiliency tools and techniques - fault tolerance,
elimination of single point of failure, clustering.