¨          Meaning and Definition of Finance

¨          Importance of Finance

¨          Types of Finance: Public and Private

¨          Sources of Finance:

(1)       Long Term Sources: Term Loans, Debentures, Bonds, Zero Coupon Bonds, Convertible Bonds, Equity Shares, Preference Shares, CD, CP, Public Deposits.

(2)       Short Term Sources: Bank Finance, Trade Credit, Other Short Term Sources.

(3)       Venture Capital and Hybrid Financing.

(B)       Financial Management:

¨          Meaning and Importance of Financial Management.

¨          Scope of Financial Management.

¨          Functions and Objectives of Financial Management.

¨          Primary Objective of Corporate Management.

¨          Agency Problem.

¨          Organization of Finance Function.

¨          Emerging Role of Finance Managers in India.

(C)       Objectives of the Firm:

¨          Profit Maximization and Shareholders Wealth Maximization.

¨          Profit v/s Value Maximization.

¨          Introduction.

¨          Financial Forecasting – Meaning, Techniques, Benefits.

¨          Approaches to Financial Planning.

¨          Economic Value Added (EVA) – Measurement and Components.

¨          Free Cash Flow (FCF).

¨          Concept.

¨          Present Value.

¨          Annuity.

¨          Techniques of Discounting.

¨          Techniques of Compounding.

¨          Nature of Capital Budgeting.

¨          Purpose of Capital Budgeting.

¨          Capital Budgeting Process.

¨          Types of Capital Investment.

¨          Basic Principle of Measuring Project Cash Flows.

¨          Increment Principle, Long Term Funds Principle, Exclusion of Financial Cost Principle, Post Tax Principle.

¨          Probability Technique for Measurement of Cash Flow.

¨          Capital Budgeting Techniques: Net Present Value; Profitability Index and Discounted Payback Method.

¨          A Comparison: Project Selection Under Capital Rationing.

(Note: Problems on computation of cash flow, ranking of projects on various techniques, selection and analysis with / without capital rationing.)

¨          Introduction and Definition of Cost of Capital.

¨          Measurement of Cost of Capital.

¨          Measurement of WACC using book value and market value method.

¨          Measuring Marginal Cost of Capital.

(B)       Capital Structure Decisions:

¨          Meaning and Choice of Capital Structure.

¨          Importance of Optimal Capital Structure.

¨          EBIT-EPS Analysis.

¨          Capital Structure Theories.

¨          Dividend  Policies (Walter and Gordon).

(B)       Learning: Meaning and Definition of Learning-The Learning Process, Principles of Learning, Theories of Learning-Classical conditioning, Operant Conditioning, Social Learning Theory, Learning through Reinforcement, Learning by Observing, Learning through Experience.

(C)       Perception-Meaning, Factors Influencing Perception, Attribution Theory, Improving Perceptions- Johari Window, Empathy.

(D)       Workplace Emotions, Values and Ethics: Meaning of Emotions, Cognitive Dissonance, Emotional Dissonance, Managing Emotions at Work (Emotional Labor) – The Six Universal Emotions.  Meaning and Types of Values, Sources of Value systems, Values across Cultures, Values and Ethical Behaviour.

(E)        Individual Decision Making: How are Decisions made in organization, Decision Making process, Decisional Styles.

(B)       Power and Politics: Meaning of Power, Bases of Power, Power Tactics, Organizational Politics, Reasons for Organizational Politics, Managing Organizational Politics.

(C)       Negotiations: Meaning, Process, Strategies, Third Party Negotiations, Crisis Negotiations, Focus Areas of Negotiations.

(E)        Virtual teams and Group Cohesiveness: Structure, Types, Stages in Management of Virtual teams, Features of Cohesive Groups, Effects/Consequences/Impact of Group Cohesion.

(F)        Group Decision-Making: Advantages, Disadvantages, Assumptions, Managing Group Decision-Making, Strength and Weakness of Group Decision-Making.

(B)       New design options: Team structure, Virtual organizations, Boundary less organizations

(C)       Organization structure differentiation: Strategy, Organization size, Technology & Environment, Organizational Designs and employee behaviour.

(D)       Organizational Climate: Impact of Communication, Impact of Rewards & Punishment, Quality work life with reference to Banking & Insurance, Job Frustration-Sources, Causes, Effects, Ways to Overcome Frustration, Impact of Frustration on Banking and Insurance companies.

(B)       Issue of organization behaviour in Banks

(C)       Strategies to manage issues of organization behaviour in banks

(D)       Case Studies – Transfer, Promotion, Separation.

¨          The role of risk management

¨          Enterprise Risk Management (ERM)

¨          History of  financial disasters and risk management failures

¨          2007 financial crisis

¨          Introduction to Derivatives

¨          Forward, Future and option contracts

¨          Hedging through Derivatives contract

¨          Fixed-income securities

¨          Fixed-income risk management through derivatives

¨          Rating agencies

¨          Information required for evaluation of credit risk,

¨          Procedure for Credit Risk Management,

¨          Credit Lifecycle,

¨          Loan Review Mechanism,

¨          RBI guidelines on Credit Rating Framework in Banks,

¨          Introduction of Basel Norms and calculation of capital adequacy ratio

¨          Linear Value-at-Risk (application to market, credit and operational risk)

¨          Option valuation

¨          Risk-adjusted return on capital (RAROC) & beta calculation

¨          Risk management of derivatives (application to convertible risk)

¨          Interest rates and measures of interest rate sensitivity