(1)     Introduction to Traditional Financial Services: 

• Financial Services:
• Concept, Objectives/Functions, Characteristics, Financial Service Market, Financial Service Market Constituents, Growth of Financial Services in India, Problems in Financial Services Sector, Banking and Non-Banking Companies, Regulatory Framework.
• Factoring and Forfaiting:
• Introduction, Types of Factoring, Theoretical Framework, Factoring Cost, Advantages and Disadvantages of Factoring, Factoring in India, Factoring v/s Forfaiting, Working of Forfaiting, Benefits and Drawbacks of Forfaiting, Practical Problems.
• Bill Discounting:
• Introduction, Framework, Bill Market Schemes, Factoring V/s Bill Discounting in Receivable Management.

(2)     Issue Management and Securitization:         

• Issue Management and Intermediaries:
• Introduction, Merchant Bankers / Lead Managers, Underwriters, Bankers to an Issue, Brokers to an Issue.
• Stock Broking:
• Introduction, Stock Brokers, Sub Brokers, Foreign Brokers, Trading and Clearing/Self Clearing Members, Stock Trading (Cash and Normal) Derivative Trading.
• Securitization:
• Definition, Securitization v/s Factoring, Features of Securitization, Pass Through Certificates, Securitization Mechanism, Special Purpose Vehicle, Securitisable Assets, Benefits of Securitization, New Guidelines on Securitization.

(3)     Financial Services and its Mechanism:        

• Lease and Hire-Purchase:
• Meaning, Types of Lease – Finance Lease, Operating Lease, Advantages and Disadvantages of Leasing, Leasing in India, Legal Aspects of Leasing.
• Definition of Hire Purchase, Hire Purchase and Installment Sale Characteristics, Hire Purchase and Leasing, Advantages of Hire Purchase, Problems of Hire Purchase.
• Housing Finance:
• Introduction, Housing Finance Industry, Housing Finance Policy Aspect, Sources of Funds, Market of Housing Finance, Housing Finance in India- Major Issues, Housing Finance in India – Growth Factors, Housing Finance Institutions in India, National Housing Bank (NHB), Guidelines for Asset Liability Management System in HFC, Fair Trade Practice Code for HFC’s, Housing Finance Agencies.
• Venture Capital:
• Introduction, Features of Venture Capital, Types of Venture Capital Financing Stages, Disinvestment mechanisms, Venture Capital Investment process, Indian Scenario.

(4)     Consumer Finance and Credit Rating: 

• Consumer Finance:
• Introduction, Sources, Types of Products, Consumer Finance Practice in India, Mechanics of Consumer Finance, Terms, Pricing, Marketing and Insurance of Consumer Finance, Consumer Credit Scoring, Case for and against Consumer Finance.
• Plastic Money:
• Growth of Plastic Money Services in India, Types of Plastic Cards- Credit card- Debit Card- Smart card- Add-on Cards, Performance of Credit Cards and Debit Cards, Benefits of Credit Cards, Dangers of Debit Cards, Prevention of Frauds and Misuse, Consumer Protection. Indian Scenario.
• Smart Cards- Features, Types, Security Features and Financial Applications.
• Credit Rating:
• Meaning, Origin, Features, Advantages of Rating, Regulatory Framework, Credit Rating Agencies, Credit Rating Process, Credit Rating Symbols. Credit Rating Agencies in India, Limitations of Rating.

(1)     Introduction to Traditional Financial Services: 

• Financial Services:
• Concept, Objectives/Functions, Characteristics, Financial Service Market, Financial Service Market Constituents, Growth of Financial Services in India, Problems in Financial Services Sector, Banking and Non-Banking Companies, Regulatory Framework.
• Factoring and Forfaiting:
• Introduction, Types of Factoring, Theoretical Framework, Factoring Cost, Advantages and Disadvantages of Factoring, Factoring in India, Factoring v/s Forfaiting, Working of Forfaiting, Benefits and Drawbacks of Forfaiting, Practical Problems.
• Bill Discounting:
• Introduction, Framework, Bill Market Schemes, Factoring V/s Bill Discounting in Receivable Management.

(2)     Issue Management and Securitization:         

• Issue Management and Intermediaries:
• Introduction, Merchant Bankers / Lead Managers, Underwriters, Bankers to an Issue, Brokers to an Issue.
• Stock Broking:
• Introduction, Stock Brokers, Sub Brokers, Foreign Brokers, Trading and Clearing/Self Clearing Members, Stock Trading (Cash and Normal) Derivative Trading.
• Securitization:
• Definition, Securitization v/s Factoring, Features of Securitization, Pass Through Certificates, Securitization Mechanism, Special Purpose Vehicle, Securitisable Assets, Benefits of Securitization, New Guidelines on Securitization.

(3)     Financial Services and its Mechanism:        

• Lease and Hire-Purchase:
• Meaning, Types of Lease – Finance Lease, Operating Lease, Advantages and Disadvantages of Leasing, Leasing in India, Legal Aspects of Leasing.
• Definition of Hire Purchase, Hire Purchase and Installment Sale Characteristics, Hire Purchase and Leasing, Advantages of Hire Purchase, Problems of Hire Purchase.
• Housing Finance:
• Introduction, Housing Finance Industry, Housing Finance Policy Aspect, Sources of Funds, Market of Housing Finance, Housing Finance in India- Major Issues, Housing Finance in India – Growth Factors, Housing Finance Institutions in India, National Housing Bank (NHB), Guidelines for Asset Liability Management System in HFC, Fair Trade Practice Code for HFC’s, Housing Finance Agencies.
• Venture Capital:
• Introduction, Features of Venture Capital, Types of Venture Capital Financing Stages, Disinvestment mechanisms, Venture Capital Investment process, Indian Scenario.

(4)     Consumer Finance and Credit Rating: 

• Consumer Finance:
• Introduction, Sources, Types of Products, Consumer Finance Practice in India, Mechanics of Consumer Finance, Terms, Pricing, Marketing and Insurance of Consumer Finance, Consumer Credit Scoring, Case for and against Consumer Finance.
• Plastic Money:
• Growth of Plastic Money Services in India, Types of Plastic Cards- Credit card- Debit Card- Smart card- Add-on Cards, Performance of Credit Cards and Debit Cards, Benefits of Credit Cards, Dangers of Debit Cards, Prevention of Frauds and Misuse, Consumer Protection. Indian Scenario.
• Smart Cards- Features, Types, Security Features and Financial Applications.
• Credit Rating:
• Meaning, Origin, Features, Advantages of Rating, Regulatory Framework, Credit Rating Agencies, Credit Rating Process, Credit Rating Symbols. Credit Rating Agencies in India, Limitations of Rating.

 (1)     Dividend Decision and XBRL:

• Dividend Decision:
• Meaning and Forms of Dividend, Dividend-Modigliani and Miller’s Approach, Walter Model, Gordon Model, Factors determining Dividend Policy, Types of Dividend Policy.
• XBRL:
• Introduction, Advantages and Disadvantages, Features and Users.

(2)     Capital Budgeting and Capital Rationing:

• Capital Budgeting:
• Risk and Uncertainty in Capital Budgeting, Risk Adjusted Cut off Rate, Certainty Equivalent Method, Sensitivity Technique, Probability Technique, Standard Deviation Method, Co-efficient of Variation Method, Decision Tree Analysis, Construction of Decision Tree.
• Capital Rationing:
• Meaning, Advantages, Disadvantages, Practical Problems.

(3)     Shareholder Value and Corporate Governance / Corporate Restructuring:

• Shareholder Value and Corporate Governance:
• Financial Goals and Strategy, Shareholder Value Creation: EVA and MVA Approach, Theories of Corporate Governance, Practices of Corporate Governance in India.
• Corporate Restructuring:
• Meaning, Types, Limitations of Merger, Amalgamation, Acquisition, Takeover, Determination of Firm’s Value, Effect of Merger on EPS and MPS, Pre Merger and Post Merger Impact.

(4)     Financial Management in Banking Sector and Working Capital Financing: 

• Financial Management in Banking Sector:
• An Introduction, Classification of Investments, NPA & their Provisioning, Classes of Advances, Capital Adequacy Norms, Rebate on Bill Discounting, Treatment of Interest on Advances.
• Working Capital Financing:
• Maximum Permissible Bank Finance (Tandon Committee), Cost of issuing Commercial Paper and Trade Credit, Matching Approach, Aggressive Approach, Conservative Approach.

(1)     Rural Banking:

Rural India: Demographic Features, Characteristics of Rural Society, Economic Features, Infrastructure in Rural Areas, Agriculture Economy, Rural Issues and Rural Development Policies, Sources and Pattern of agriculture in India, Trends in Agricultural Finance.

Institutional Framework: Regulation of Rural Financial Services, Rural Credit Institutions, Financing Agriculture/ Allied Activities, Financing Rural Non Farm Sector, Priority Sector Lending, Rural Housing and Education Loans.

Rural Banking: Financial Needs of the Poor, Role of Rural Banking, Transaction Costs, Risk Costs, Financing Poor as Bankable Opportunities Micro Credit and Self Help Groups.

(2)     Micro Finance: 

Introduction: Emergence of Microfinance, Definition, Meaning and Scope, Importance and Assumptions. Lessons from International Experience.

Models: Models of Microfinance across the world, Portfolio Securitization, SHG-2, National Rural Livelihood Mission, Impact of Microfinance, Impact Assessment and Monitoring, Microfinance and Poverty Assessment Tools.

Financial Products and Services: Objectives, Introduction, The role of MFI – Minimalist V/s Integrated, Financial services/ products, Non – Financial Services, Designing Microfinance Models, Liquidity Management, The Revenue Model of an MFI, Cost, Volume and Profit Analysis, Measuring Operating Efficiency and Productivity in MFI’s, Factors affecting Operating Expenses, Operating Efficiency.

(3)     MSME Finance:

Institutional Framework: Central Government, NIMSME, Indian Institute of Entrepreneurship Guwahati, NIESBUD, NSIC, Organizations under the control of State Government, SIDBI, CGTMSE, SMERA, SSI Association in India, Changing Role of MSME Associations, Policy Orientation and Resource Allocation.

Financing Options and Modes: Financing MSME, Why lend to MSME Sector, Debt Finance, Equity Finance, Options for Financing MSME’s, Financial Products and their Access, Existing MSME Loan Products and their Nature, Common Guidelines for lending to MSME Sector, Factoring, Credit Process, Credit Assessment, Costs and Risks specific to MSME Lending, Risk Rating, Monitoring and Review of Lending.

(4)     Final Accounts of the Banking Companies:

Legal Provision in Banking Regulation Act, 1949 relating to Accounts. Statutory reserves including Cash Reserve and Statutory Liquidity Ratio. Bill purchase and discounted, Rebate of Bill Discounted.

Final Accounts in prescribed form.

Non – performing assets and Income from non – performing assets, Classification of Advances, standard, sub – standard, doubtful and provisioning requirement.

(5)     Risk Management in Rural Finance: 

An Introduction: Objectives, Introduction, Types of risks for MFI’s, Risk Management Framework for MFI’s Indicators of Credit Risk, Portfolio at Risk (PAR), Causes of high Credit Risk, Impact of Delinquencies, Managing Credit Risk, Transaction Risk, Process, System and Technology, Relationship and Portfolio Risk. Cash Planning and Co-ordination between Operation Manager and Finance Manager. Compliance to State Acts, Revised Guidelines on Priority Sector, Compliance to RBI Guidelines on NBFC – MFI’s, Self Regulation.

Author: A. V. Wandrekar

               A. A. Wandrekar

SEVENTH REVISED EDITION 2025