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Course Diary for Banking and Insurance



Financial System: Institutions, Markets- Primary, Secondary, Money & Capital Markets, Instruments of Money Market, Functions & their economic significance UNIT II 12 Hours

Commercial Banks- Functions, Structure of Commercial banks in India- Source of funds, Investment normsfactors determining liquidity of banks- Asset Structure of Commercial banks- Profitability of banks UNIT III 08 Hours

The Concept of Risk & Insurance- Classification of insurance- Life Insurance- Types of General Insurance of Property, Pecuniary Interest, Liability and person- types of polices, fire, marine, motor, engineering, aviation, agriculture, liability and person UNIT IV 12 Hours

Essential of a contract- Principles applicable to insurance business- utmost good faith- insurable interestindemnity- subrogation and contribution- proximate cause- financial principles- premium funds- investmentsreserves- surplus- valuation of funds. Introduction of risk- Risk appraisal- Risk selection underwritingReinsurance- Concepts and methods- Facultative, treaty reinsurance and various methods UNIT V 12 Hours

Growth and development of insurance- Present day Regulatory environment Insurance act, 1938- IRDA act, 1999- Present Market Environment- Intermediaries- Office organization- Departments- FilesCorrespondence- New technology, Controls REFERENCES:1. G. Kotreswar, Risk Management Insurance & Derivatives- Himalaya Publishing House 2. T.T. Seth, Insurance Principles & Practice- S. Chand, New Delhi 3. Course- IC 01,IC 02, IC 11, IC12, IC25 of Insurance Institute of India, Mumbai 4. L.M.Sbole Financial Institutions and Markets, TMH5. K.C. Shekar & Laksamy Sheler, Banking Theory & Practice, Vikas Publication (2001)

LESSON PLAN SUBJECT -BANKING & INSURANCE TOTAL NO. OF HOURS- 36 TOTAL MARKS- 100 CLASS NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 3 2 MODULE NO. 1


SUBJECT TOPIC TO BE COVERED Introduction about Banking & Insurance Financial Institution, Financial assets, Financial Market Chart for Financial System Primary Market, Secondary Market, Money Market Capital Market, Difference between Capital & Money Market Instruments of Money Market- Treasury Bills (T-Bills), Commercial Papers (CPs) Certificate of Deposits, Call Money Market Repurchase Agreement (Repo), Listing and economic significance Commercial banks Introduction Functions of commercial banks Structure of commercial banks in India Source of funds Investment norms & factors determining liquidity of banks Asset structure of commercial banks Profitability of banks Profitability of commercial banks The concept of Risk & Insurance Classification of Insurance- life insurance Types of general insurance- insurance of property, pecuniary interest Liability & persons Types of policies fire, marine, motor Engineering, aviation, agriculture, liability and person

23 24 25 26 27 28 29 30 31 32 33 34 35 36


Essentials of a contract Principles applicable to insurance business utmost good faith (insurance) and insurable interest Indemnity subrogation & Contribution, proximate causes Financial principles, premium funds Investments reserves- surplus valuation of funds Introduction to risk, risk appraisal Risk selection. Underwriting, reinsurance Concepts and methods- factuative, treaty, reinsurance and various methods


Growth and development of Insurance Present day regulatory environment insurance act 1938 IRDA act, 1999 present market environment Intermediaries- office organization & departments Files, correspondence, new technology, control New technology & control

Syllabus for 1st Internal Test Unit 1, Unit 2 For 2nd Internal Test Unit 3, Unit 4, Unit 5

References Books for Banking & Insurance (BCA 503)1. Ravindra Babu. S, Banking & Insurance, Skyward Publishers 2. Jagroop Singh, Banking & Insurance, Kalyani Publishers 3. M Y Khan, Indian Financial System, Tata McGraw Hill Publishers- 5th Editions 4. Meir Kohn, Financial Institutions & Markets, Tata McGraw Hill edition 5. K.C.Shekhar & Lekshmy Shekhar, Banking Theory & Practices, 20th Editions Vikas Publishing


UNIT- 1 Short Answers- 2 marks1. Define Financial System? 2. Name the components of the financial system of any country? 3. Mention the functions of the Financial Systems? 4. What are Financial Markets 5. Name the state owned insurance corporations in India 6. Define ICICI 7. What is a Money Market? 8. Who are the participants of the Treasury Bills (t-bills) market? 9. What is a call money market? 10. Name a money market instrument, which enables collateralized short term borrowing and lending through sale/purchase operations in debt instruments? 11. What instruments are contained in the capital market? 12. What is a primary market? 13. What is book building process? 14. Define a stock exchange? 15. Define DEMATERIALISATION? 16. What are the benefits of having a demat account? 17. Who are the depositories? 18. Name the two depositories in INDIA. 19. Mention the difference between term deposit & certificate of deposit (CD)?

5 Marks Questions1. What is a financial system? Discuss the components of the Financial system 2. What are the characteristics and functions of the financial markets 3. A financial system is a well-integrated system whose parts interact with each other comment 4. Distinguish between money market & capital market 5. Distinguish between primary market & secondary market 6. State the functions of a foreign exchange market

7. What is a capital market? What are its major constituents? 8. What are the characteristics of the Financial system 9. What are the characteristics of T-Bills 10. Distinguish between repo & reverse repo 11. Classify the financial intermediaries functioning in the Indian Financial System and bring out their features 12. Treasury bills are important short-term source of finance for the government- explain 13. Write a short note on (i) Commercial papers (ii) Certificate of Deposit 14. Describe the primary market in India 15. Distinguish between the Primary & Secondary Markets 16. What is listing? What are its advantages & Disadvantages 17. What are the services provided by the stock exchanges? What are the distinctive features of stock markets in India

Essay Questions: - 15 Marks1. What is capital market? Discuss the objective and importance of capital market 2. What are the functions of capital market? Outline the structure of Indian capital market 3. What is a stock exchange? Discuss the shortcoming of Indian stock exchange. Suggest measures for their improvements 4. Distinguish clearly between capital market & money market 5. What do you mean by New Issue Market? Examine in brief the growth of new issues market in India. 6. What do you meant by listing of securities? Which documents are to be filed with the stock exchange for listing of securities? 7. What is the procedure followed at the stock exchange for making purchases and sales? 8. Discuss various capital market reforms that have been announced by the government during 1991 to 2002

UNIT 2 Short Answers:-2 marks1. Define a Bank? 2. Mention the two broad functions of RBI? 3. Why RBI is called Bankers Bank and the lender of the last resort?

4. How are Commercial banks classified? 5. How do we classify the Indian Commercial banks? 6. What are scheduled commercial banks? 7. What are Unsecured loans 8. What are Secured loan 9. What are General Utility services 10. What is NPAs 11. Define e_banking? 12. Mention the Sources of funds of commercial banks? 13. What are the Primary functions of a bank? 14. What is ATM? 15. Define Particular Lien. 16. Explain Pay-in-Slip books? 17. Explain fixed deposits accounts? 18. Explain current account?

5 Marks Questions1. Mention the objectives of RBI? 2. Mention the difference between Public sector and private sector banks 3. Distinguish between Indian Banks & Foreign Banks 4. What are the modes of short-term financial assistance of the commercial banks 5. Mention the different methods of Granting Loans by Banks 6. Explain the features of commercial banks 7. What are NPAs 8. Mention the Asset classification and categories of NPAs 9. What are the various factors affecting liquidity of the banks 10. Explain the term (a) liquidity (b) Profitability of a commercial banks 11. What are commercial banks? Explain their features 12. Write the schematic representation of the structure of commercial banks in India 13. Discuss the various sources of funds of a commercial bank

14. Explain the various factors determining the liquidity of banks 15. Write briefly on the profitability of commercial banks

Essay questions- 15 marks1. Define commercial bank. Discuss the functions of a commercial banks 2. Explain the role of the banks in economic development of a country 3. Discuss the Rights of a commercial banks 4. Briefly explain the obligation of a commercial banks 5. Commercial bank is foundation stone of modern commerce and industry. Explain the statement 6. Write notes on:- (1) Modern functions of bank (2) development functions of banks (3) obligations of banks (4) Rights of a banks 7. Explain different types of banks 8. Define unit banking. What are its advantages & disadvantages? 9. Explain branch banking. Discuss its advantages and limitations 10. What do you mean by group banking? Explain its merits and demerits 11. Discuss the characteristics of good banking system 12. Explain the different types of accounts opened with a bank, which of the accounts is suitable for a businessman and why? 13. Discuss the procedure to open as current account in a bank. 14. Dis