Concept of Money: An introduction to money, as a standardized unit of exchange.
Concept of Interest: What 'Interest' is; Simple and Compund Interest.
Compounding and CAGR: Effective Interest (Yield); CAGR & its usage.
Time Value of Money: Future Value, Present value, NPV, IRR with illustrations & the Excel functions.
Inflation: Inflation and Nominal Rate, Inflation Rate and Real Rate.
Identifying Risk: Types of risk a Financial Institution faces.
Measuring & Managing Risk: Factors considered to measure risk; risk management techniques such as diversification.
The Risk-Return Framework: You will understand how return changes with the associated risk.
Concept of Business and its Classification: A brief discussion on the concept of Business and how it is structured.
Accounting Principles: An overview of key accounting principles (such as Going Concern Concept, Conservatism Concept, Accrual Concept etc.)
The Accounting Process: The overall flow right from Transaction, through General Ledger till Financial Statements. Also, the Double Entry Method.
Recording Financial Transactions: How financial transactions are recorded; passing Debit and Credit entries.
Depreciation: Explanation of Depreciation and Amortisation.
Suspense Account and Trial Balance: The purpose of the Suspense account and Trial Balance.
Profit & Loss (P&L) Statement: The components of a P&L Statement - measures of profitability, and items of expense. The format of a P&L Statement.
Cash Flow Statement: The concept of a Cash Flow Statement and its break-down into Financing, Investing and Operational Cash flows.
Balance Sheet: A detailed discussion on various components of a Balance Sheet, such as Current Assets, Owner's Equity, Contingent Assets & Liabilities etc.
Live Examples: A discussion on the Balance Sheet with a live example.
|TOTAL RECOMMENDED LEARNING HOURS||5.5|
Raising Capital: The broad ways of raising capital for a business.
Equity and Equity Instruments: The types of equity instruments and key attributes (such as redeemability, convertibility etc.).
Depository Receipts (DRs): How Depository Receipts (ADRs and GDRs), are used.
Debt: Sources of debt; the concept of debt instruments.
Issuance of Debt Instruments: The issuance process; key features of Debt Securities such as, Face Value, Maturity Period etc.
Classification of debt instruments: Classification , basis tenor & Issuer.
Bonds & Money Market instruments: Key - and often poorly understood - concepts such as Coupon & Yield. Types of Money Market Securities, such as: T-Bills, CDs, CPs, Repos.
The Capital Structure decision: How different factors affect the decision; concept of WACC
Investment Cycle: The stages: Financial planning, Risk profiling, Asset allocation, Portfolio Maintenance; the role of Asset Management Companies (AMCs).
Mutual Funds (MFs): The structure of a fund, key features (entry load, exit load, NAV) and benefits.
Categorization of MFs: Categorisation of MFs basis liquidity, Investment objective & Invesment plan.
The Investment decision: The trade-off between Returns, Safety and Liquidity.
|Financial Markets: Generic Framework||
Trade Life Cycle: Issuance, Pre-trade, Trade, Post trade, and Asset servicing.
Issuance: Types of Issues & the entire Issuance Process.
Pre-Trade Analysis & the Trade: The systems needed for pre-trade; trading process followed in different markets.
Post-Trade: The stages of Post Trade - Clearing, Settlement, Settlement Conventions. Post trade systems and Monitoring systems".
Asset Servicing: The steps in Asset Servicing such as, Income collection, Corporate actions, etc.
Role of Banks: Managing the issuance process, Research and Proprietary trading.
|Financial Markets: Equity||
Working of a Stock Market: A basic understanding of how stock trading works.
Stock Market Participants: The participants of a stock market and their roles, such as: Brokers, Custodian Banks, Depositories, and Clearing Firms; understanding a Demat account.
Stock Indices: What indices are; Key markets and their indices (Nifty/Sensex of India, DAX of Germany etc.). Determination of share prices and market sentiment.
Stock Valuation: Calculating the value of a stock basis Mark to Market (MTM); estimation of Realised and unrealised losses.
|Financial Markets: Bond and Currencies||
Bond Markets: Various participants & their roles: Government/corporation, commercial banks, investment managers/mutual funds, depository & clearing corporation, regulators.
Bond pricing and valuation of bonds: Based on Present Value. Understanding Coupon, bond price and yield.
Money markets - Bank rate and repo rate: Money Market Instruments - the difference from Bonds.
Foreign Exchange Markets: Players, traded currencies etc.
Exchange Rates and its key drivers: Factors affecting the Exchange Rate, Market Conventions; Spot, Tom & Forward Rates.
Valuation of currencies: Valuation of currencies, with an illustration.
|TOTAL RECOMMENDED LEARNING HOURS||6.5|
The Financial Framework: The players in the world of finance - Market Players, Regulators etc.
Banks & NBFCs: What a bank does; categories of banks in India; how NBFCs are different.
Regulators & Regulations: Regulators for Financial Institutions (such as RBI, NHB). Key regulations such as Basel Norms, Reserve requirements etc.
Key Concepts: Flat & Reducing balance interest rates, Pledge, Hypothecation & Mortgage, etc.
Banking Business Overview: A bank's business model; Related concepts: Cost of Funds, Net Interest Income (NII) and Spread.
The Business Offerings of a Bank:
Channels: The channels a bank uses; features of each.
Overview: The organisational stucture of the Retail banking division.
Liability Products: Types of liability (deposit) products -Saving Accounts, Current Accounts, Term Deposits, and NRI deposits. Key processes around CASA and Fixed deposits.
Asset Products: Categorization basis security, repayment and interest rate; typical loan products such as Home loans, Auto loans, credit cards, etc. The typical loan lifecycle.
Other Services: Such as, Remittances, Mutual Funds & Insurance etc.
Introduction: The Organisational Structure, including Transaction Banking and Product Management.
Classification of Products: Fund and Non-Fund based products, basis Purpose, Maturity, Revolving and One-Off etc.
Funded & Non Funded Facilities: Types of Funded Facilities such as Working Capital Loans, Long Term Loans; Non funded facilities such as LCs & Cash Management.
International Trade - Payment Methods:
Credit Evaluation: Qualitative and Qunatitative Analysis required for Credit Evaluation.
SME Banking: Small and Medium Enterprise (SME) Banking and its difference from Corporate Banking.
|Specialized Divisions & Support Functions||
Investment Banking: An introduction to Investment Banking, its purpose and its functions - Mergers & Acquisitions, Loan Syndication, Issue Management, etc.
Financial Markets and Treasury: An overview of the Financial Markets and Treasury division.
Private Banking and Wealth Management: An introduction to Private Banking and Wealth Management; the typical Private Banking workflow.
Rural and Agricultural Banking: A discussion on Rural Banking; agricultural credit across the value chain.
Other Functions: Sales & marketing; Asset and Liability Management (ALM) ; Human resource management; Legal & compliance, etc.
|Non Banking Finance Companies (NBFCs)||
Introduction to NBFCs: An overview of NBFC sector in India; their categorisation.
Business Offerings of an NBFC: Deposits, Lending, Leasing & Hire purchase, etc.
Banks Vs. NBFCs: A comparison on the basis of products, services and regulations.
Introduction to Payment Systems: The players in a payment system; key terms - clearing, settlement, float, correspondents, etc.
Clearing and Settlement: The process of clearing and settlement with examples. RTGS & Deferred Net Settlement systems.
Categorisation of Payments:
Risk Management Process: An introduction to the three steps of the Risk Management.
Typical causes of Financial Crises: The root causes of the financial crises.
Risk Management Process: Mapping types of risk to the functions of a bank; Var methodologies; the Basel Norms for Capital Adequacy.
|Banking and Regulatory Compliance||
Negotiable Instruments Act: A brief description about the rules around key negotiable instruments.
UCPDC: The UCPDC and its key features.
SARFAESI Act: A brief description about the SARFAESI Act and its usage.
Know Your Customer (KYC) and Anti Money Laundering (AML): A discussion on customer identification procedures, monitoring of transactions, and its reporting.
|Technology in Banking||
A Core Banking System (CBS): Technology in banks; understanding a CBS.
Different modules of a CBS: An overview of the modules in a CBS such as General Ledger, Loan Module, MIS, Risk Management, etc.
Other technology applications: Cheque Truncation - how it works.
|TOTAL RECOMMENDED LEARNING HOURS||15.5|
|Excel Getting Started||
Introduction: A brief discussion on what is MS-Excel and why excel is used
Basic Terms and Actions: A discussion on some frequently used key terms (such as - "Comments", "Cell Name" etc.), and basic actions (such as - cell resizing, cell merging etc.).
Formatting the Cells: General and conditional formatting
|Excel - Managing Data||
How to work on large data sets:
|Excel - Calculations||
Mathematical Operators, Text Operators, Logical Operators to perform simple calculations.
|Excel - Formulae||
Use mathmatical formulae, (such as - SUM, PRODUCT, SUBTOTAL etc.), and logical functions (IF-THEN).
|Excel for Presentations||
Representing Data, Creating Charts in Excel (detailed discussion on the use of Bar, Line and Pie charts).
|TOTAL RECOMMENDED LEARNING HOURS||9.5|