CAIIB Syllabus - IIBF CAIIB Exam Pattern & Syllabus in Detail

• Bank Exam Quiz
• Banking Awareness
• Current Affairs
• Static GK

Linear programming – decision making-simulation – Statistical analysis using spreadsheets.

Features of Spreadsheet – Macros, pivot table, statistical and mathematical formulae

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

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 types of clients/ products.

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

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

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.

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

1. Evolution and Functions of Central Banking: Evolutions of Theory and Practice of Central Banking, Development of Central Banks in Developed and Developing countries.
2. Functions of a Central Bank: Banker to Government, Banker to Banks, Monetary policy Functions, Currency Issue and Management, Payment system function, Maintaining Internal and External values of currency, Regulation, Facilitation and supervision of Financial System, Promotional Functions to support growth and other National objectives, Development of Financial Markets, Institutions and communication policies.
3. Contemporary Issues: Desirability, Autonomy and independence, Credibility, accountability and transparency of a Central Bank, conflict with fiscal policies.

1. Reserve Bank of India: Organizational evolution, Constitution and Governance, Major organizational and Functional Developments over time, Recent Developments, RBI Act.
2. India Specific Issues: Banking Regulation Act, FEMA, Banking Ombudsman Scheme, Financial Sector reforms, other financial regulators and division of functions.
3. Institutions set up by RBI; NABARD, IDBI, DFHI, IRBI, UTI.
4. Glossary of Central Banking Terms

1. Monetary Policy: Objectives, Reconciling dual objectives, The Taylor Rule, Indicators of Policy, instruments of policy (Bank Rate, OMO, CRR, SLR etc.), policy Transmission mechanism and channels, transparency of policies, Lags in policy.
2. Credit Policy: Objectives, Theory and Practice, Instruments.
3. An overview of Fiscal Policy: Importance of Budgets, Union Budget, State Budget, Finances of Union and State Governments, Finance Commission.
4. Striking balance between inflation and growth through monetary and fiscal policies.

1. Indian Financial System: Constituents of Indian Financial Markets and their Regulation. Evolution of Bank Regulation and supervision.
2. Financial Stability: Financial Development Vs Financial stability, Risks to Financial stability, Early warning signals and remedial action, Liquidity Management, Regulation and supervision of Banks, Risk Management in Banks, The Basel Norms, Prudential Norms, Effect of liberalization and Globalization on Financial Stability, Linkage to International Financial Stability, International standards and codes. Role of Supervisor under Basel Norms.

1. Demographic features: Population, occupation, literacy, socio-economic development indicators, health, nutrition and education, – urban migration. Characteristics of Rural society: Caste and power structure – rural social stratification,
2. Economic Features: Economic life of rural people, share in National income -Trends in per capita income, rural money markets, rural indebtedness, rural poverty – main causes and methods of measuring rural poverty.
3. Rural infrastructure: Transport, Power, Markets and other services.
4. Agriculture Economy: Structure and characteristics of Indian agriculture, Role of agriculture in economic development, agriculture-industry linkages, Resources and technical changes in agriculture, constraints to agriculture development, Emerging issues in Indian Agriculture.
5. Rural Development Policy: Govt. policies and programmes for rural farm and non-farm sectors. Economic reforms and its impact on rural economy. Rural Issues: development issues, Management Issues, Marketing issues, Pricing issues.

1. Regulation of Rural Financial Services; Function and policies of RBI in Rural Banking, NABARD Main functions, role, refinance support. Lead bank approach, State level and District Level Credit committees.
2. Rural Credit Institutions; Co-operative Credit Societies and Banks, Land Development Banks, Regional Rural Banks, Commercial Banks. Role of Information and communication, technologies in rural Banking-Models, Financial inclusion & inclusive growth for rural development banking, rural insurance micro insurance scheme, concept of Business, Facilitators and Business Correspondents in rural financing.
3. Financing agriculture/ allied activities; Crop Loans Assessment, Sanction, Disbursement, rephasement. Term loans for irrigation, Farm mechanization, Godowns/ cold-storage facilities etc. Financing allied agriculture activities like Horticulture, Fisheries, Social forestry, etc.
4. Finance against Warehouse/ cold storage receipts.
5. Financing Rural Non-Farm Sector (RNFS); Importance of RNFS, Segments in RNFS, Role of Development and Promotional Institutions in RNFS SME Finance; Definition of SME. Importance to Indian economy. Financing of SME and small enterprise Refinance from SIDBI. Project funding techniques and requirement assessment. Cluster based approach and joint finance with SIDBI. MSMED Act 2006, CGTMSE, Working capital assessment of SMEs. Risk rating of SME proposals, role of rating agencies and rating methodology. Revival of sick units; revival package and implementation, Stressed assets under rehabilitation. Debt restructuring mechanism for SMEs.

1. Components of priority sector. RBI guidelines. Government initiatives; Poverty alleviation programmes/ Employment programmes/ Production oriented programmes-rationale and philosophy, progress and impact, problems and deficiencies. Rural housing and Urban housing schemes under priority sector, their refinance, Educational loans

1. Role of rural banking – Problems of Rural branches of Commercial banks – transaction costs and risk costs. Technology based Financial Inclusion. Emerging trends in rural banking-financing poor as a bankable opportunity, Micro Credit, Self Help Groups/ NGOs, linkages with banking, latest guidelines of GOI and RBI.