|CAIIB Examination Pattern
|Important Instructions Regarding the Exam
- There are three papers in the CAIIB exam, 2 compulsory papers for all candidates i.e. Advanced Bank Management and Bank Financial Management and 1 elective paper (comprising 11 subjects) of their choice.
- The exam paper will be bilingual i.e. both in English and Hindi Language
- There is no negative marking scheme as per the examination pattern.
- Candidates will be awarded 1 mark for each correct answer.
- The credits for the subject that candidates pass in an attempt can be retained till the expiry of the time limit of passing CAIIB exam.
- Those who secure at least 45 marks in each subject with an aggregate of 50% marks in all subjects of examination in a single attempt will also be declared to have completed the examination.
Information Regarding CAIIB Elective Paper
Elective paper (anyone from the list given below):
- Rural Banking
- Retail Banking*
- Human Resources Management
- Information Technology
- Risk Management
- Central Banking
|Advanced Bank Management
|Bank Financial Management
|CAIIB Syllabus for Advanced Bank Management
Module A- Economic Analysis
The fundamentals of Economics: Scarcity and Efficiency – Microeconomics & Macroeconomics in brief – Types of economies – Market, Command and Mixed Economies – Macroeconomics: Business cycles – Money and banking – Unemployment & inflation – Interest rate determination and various types of interest rates, Indian Economy (a) Overview of the Indian economy including recent reforms (b) Interaction between fiscal, monetary & exchange rate policies in India – Financial Markets (i) Money Market (ii) Capital Market (iii) Foreign Exchange Market – globalization and its impact – Challenges ahead – Banking & Finance – current issues
Module-B Business Management
Concept of time Value of Money – Net Present Value – Discounted Cash Flow – Sampling methods – presentation of data – analysis and interpretation of sample data – hypothesis testing – Time series analysis – mean/ standard deviation – correlation – Regression – covariance and volatility – Probability distribution – Confidence interval analysis – estimating parameters of distribution – Bond valuation – duration – modified duration. Linear programming – decision making-simulation – Statistical analysis using spreadsheets. Features of Spreadsheet – Macros, pivot table, statistical and mathematical formulae
Module -C HRM in Bank
Fundamentals of HRM, development of HRM in India, Relationship between HRM and HRD, Structure and functions of HRD, Role of HR professional, Human implications of organizations; training and development, attitude and soft skills development, role and impact 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
Module D – Credit Management
Principles of Credit Management Credit Appraisal Analyzing Financial Performance – Relationship between items in Balance Sheet and Profit and Loss Account. Trend Analysis, Comparative Statement – Common Size Statement, Preparation of projected Financial Statements. – Ratio analysis – Interpretation and analysis of different Ratios, Limitation of the use of ratios. Statement of Sources and Applications of Funds.
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.
|CAIIB Syllabus for Bank Financial Management
Module A – International Banking
Forex Business; factors determining exchange rates, Direct and indirect quotations, spot/ forward rates, premium and discount, cross rates. 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
Module B – Risk Management
Risk-Concept – Risk in Banks – Risk Management Framework – Organizational Structure – Risk Identification – Risk Measurement/ – Sensitivity – Basis Point Value (BPV) – Duration – Downside Potential – Value at Risk, Back Testing – Stress Testing – Risk Monitoring and 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, Counter party 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
Module C – Treasury Management
Concepts and function; instruments in the treasury market, development of new financial products, control and supervision of treasury management, linkage of domestic operations with foreign operations.
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 Forfeiting; refinance and re discounting facilities.
Derivatives – Credit Default Swaps/ Options.
Module D – Balance Sheet Management
Prudential norms – Capital Adequacy. Implementation of ‘Basel Norms guidelines: RBI guidelines. Banks Balance Sheet – Components of assets/ Liabilities/ ALM Implementation – Gap Analysis – Mechanics, Assumptions, and Limitations – Illustrations of Actual Gap Reports – The Relationship Between Gap and Income Statement – Funding 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
|CAIIB Previous Question Paper
|CAIIB Best Books
|CAIIB Exam 2022
|CAIIB Salary In Hand
|CAIIB Syllabus for Elective Rural Banking
Module – A: Rural India
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, 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. Rural infrastructure: Transport, Power, Markets and other services
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.
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
Module – B: Financing Rural Development
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.
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.
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. Finance against Warehouse/ cold storage receipts. 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.
Module – C: Priority Sector Financing and Government initiatives
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 Module – D: Problems and prospects in Rural Banking 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 bankable opportunity, Micro Credit, Self Help Groups/ NGOs, linkages with banking, latest guidelines of GOI and RBI.
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.
|CAIIB Syllabus for Elective Retail Banking
MODULE – A: Introduction
History and definition, role within the bank operations, Applicability of retailing concepts distinction between Retail and Corporate/ Wholesale Banking
MODULE – B: Retail Products
Retail Products Overview – Customer requirements, Products development process, Liabilities and Assets Products/ Description of Liability products, Description of Asset Products, Approval process for retail loans, Credit scoring.
Important Asset Products – Home Loans – Eligibility, Purpose, Amounts, Margin, Security, Disbursement, Moratorium, Prepayment issues, Repayments/ Collection.
Auto/ Vehicle Loans – Eligibility, Purpose, Amounts, Margin, Security, Disbursement, Moratorium, Prepayment issues, Repayments/ Collection.
Personal Loans Eligibility, Purpose, Amounts, Security, Disbursement, Moratorium, Prepayment issues, Repayments/ Collection
Educational Loans Eligibility, Purpose, Amounts, Security, Disbursement, Moratorium, Prepayment issues, Repayments.
Credit/ Debit Cards – Credit Vs Debit Cards, Eligibility, Purpose, Amounts, Margin, Security, Process of using the cards, Billing Cycle, Credit Points. Other Products/ Remittances/ Funds Transfer
MODULE – C: Marketing/ Selling of retail products, MIS and Accounting
Retail Strategies; Tie-up with Institutions for Personal loans/ Credit cards/ Educational loans, with OEMs/ Authorized Dealers for Auto/ Vehicle loans, and with Builders/ Developers for Home loans Delivery Channels – Branch, Extension counters, ATMs, POS, Internet Banking, M-Banking.
Selling Process in retail products – Direct Selling Agents. Customer Relationship Management – Role and impact of customer relationship management, Stages in customer relationship management process.
Regulations and compliance Technology for Retail Banking – Static information, Account opening, basic loan origination data etc. Updated information like income details at different frequencies. Transaction information
from disbursement till final settlement of the loan amount. Analytics/ Alerts. Accounting entries – Loan process and the relevant accounting including EMI Computation.
MODULE – D: Other issues related to Retail Banking
Securitization, mortgage based securities. Trends in retailing – New products like Insurance, Demat services, online/ Phone Banking, Property services, Investment advisory/ Wealth management, Reverse Mortgage – Growth of e-banking, Cross selling opportunities.
Recovery of Retail Loans – Defaults, Rescheduling, recovery process. SARAFAESI Act, DRT Act, use of Lok Adalat forum. Recovery Agents – RBI guidelines.
- Digital Banking
The broad topics will cover the following:
Digital Banking Products
Cash Deposit Machines
Marketing of Digital Banking Products
New Developments in Digital Banking
|CAIIB Syllabus for Elective Human Resource Management
Module – A: Human Resources Management
- Concepts, Policies and Practices: Fundamentals of HRM; Importance of Human Capital,
Management of transformation, New insights into HR Management and contemporary
issues, Relationship between HRM and HRD; Structure and Functions, Policies and
Practices, Role of HRD professional, Development of HRM in India.
- Behavioral Dynamics in organizations; Person – Job Fit, Group Dynamics, Group Problem
Solving and effectiveness, Leadership and Team building, Change Management, Human
Response – Implications of benchmarking; TQM, BPR, ISO 9000 Series and other
techniques for Organizational improvement and Management of Service Industry; Quality
Circles. Six Sigma and its implication in organizational development.
- Organizational Change and Development; Responsibility Charting, Conditions for Optimal
Success, Role of Change Agent and Managing Change
- HRM in Banks: Traditional Role of Human Resources Department in Banks, Expectations
from HR Department, Conflict of new initiatives with work culture and capacity, Major HRM
challenges facing Banks, Core Banking and HR challenges
- Knowledge management in Banks; Need for Knowledge Management Officer, Role in the
Banks, HRM and Information Technology, Information and Database Management,
Preparation and updation of Manuals and job cards, Linkage with Educational Institutions
Module – B: Building an HR strategy
- Strategy Formulation and implementation; Need for a distinctive HR strategy, Formulating
the strategy; connecting strategy to organization, aligning HR Systems with decision
framework, Relationship between Sustainable strategic success and performance of the
organization, Execution of strategy: Role of CEO, Executive team, and line Managers,
Succession Planning, HRD Audit, Effectiveness of HRD, Best HR practices in banks
- Organizational Communication; Barriers to Communications, Steps for effective
communication in the organization
- Manpower Planning; Recruitment, Selection, Placement and Promotion. Recruitment Vs
Outsourcing: Concept and Feasibility of Outsourcing, advantages, disadvantages and
constraints, Compensation; incentive system linked to productivity, dealing with attrition
- Performance Management and Appraisal Systems: Performance Appraisal System, Role
of PAS, Emerging Trends, 360-degree performance Appraisal, Appraisal Vs Feedback,
Competency Mapping, Key Performance Areas (KPA)
Module – C: Motivation, Training and Skill Development
- Human implications of Organizations; Learning and instructions, Learning Processes,
Employee Behavior, Theories of Motivation and their practical implications, Motivational
strategies, Reward and Incentive schemes, job enrichment, job rotation. Employee
Development strategies and Techniques.
- Training and Development; Attitude development, Role and impact of training, Career Path
Planning and Counseling, Changing face of Banking, Future of Bank Education,
Identification of Training Needs.
- Training Methodology; subject matters of Training, Training infrastructure in Banks,
outsourcing of Training, On – the job training, Management of conflict between Training
and operations due to manpower constraints, Development of soft skills and
communications. Developing competencies through e-learning, virtual learning and selfdirected learning. Training measurement and impact
Module – D: Personnel Management and Industrial Relations
- The personnel functions: Legal aspects of personnel functions, trade unionism and
Industrial Relations; Industrial Relations and Negotiations in the Indian Banking Industry,
Collective Bargaining Concepts; Bipartite Settlements in Banking, Employee Welfare;
Policies and Schemes.
- Grievance Redressal and Discipline; Mechanism and Processes, Discipline Management
including Domestic Enquiry, Role of Management and Functions, Conflict Management
and Resolution, Frauds in Banks, Risks attached to Delegation of Financial Powers;
Precautions and Controls, need for a vigilance Dept. in Banks, Diversity and Gender
Issues, Dealing with the cases of Sexual harassment.
- Workers’ Participation in Management, Experience of Employee Participation in Indian
|CAIIB Syllabus for Elective Information Technology
Module – A: Introduction to Information Technology
Impact of IT on Banking: Changing Financial Environment and IT as a Strategic Response
Hardware (H/ W) – Software: (S/ W)
Operating Systems (Desktop OS/ Server OS) Windows (Desktop/ Server)/ UNIX (H. P. Unix,
Sun Solaris, Linux, IBMAIX)
Computer Languages – 1st Generation Languages (Assembly), 2nd Generation (FORTRAN,
ALGOL, COBOL), 3rd Generation (C, C++, C# and JAVA etc.) and 4th Generation Languages
(Clipper, Power Builder, SQL etc.) and 5th Generation Languages (Logic Programming
Database Management System and Relational Database Management Systems (Oracle10g,
MS SQL-2005, MySQL)
Application Servers (Oracle 10AS, BeWeblogic, WebShare ) Web Servers (IIS, Apache etc.)
Web Browsers (IE 7.0, Firefox etc.)
Application Software: Packaged Software, Custom built Software etc. Computer Networks,
Equipment & Data Communication:
Computer Networks: Network Layers, Topologies, Protocols, IP Address Mechanisms, LAN,
WAN, VLAN, Intranet, Extranet, Internet, Network Equipment: Cables (BNC, Twisted Pair, Fibre
Optics), Connectors, I/Os, Patch Panel, Jack Panels, Network Racks.
Data Communication: CLL, Leased Lines, MPLS, VPNS, ISDN, Satellite Links, Wi Fi, Wi Max.,
Network/ Security Equipment: Modems, Hubs, Switches, Bridges, Routers, Firewalls, NIDS,
Module – B: Systems and Design
Systems Design & Analysis Data modeling, Entity Relationships, Generic Data Modeling, Semantic
Data Modeling Normalization (from 1st to 3rd and BCNF, 4th & 5th level of normalization)
Software Development Life Cycle (SDLC) – Various phases of SDLC, In-house/ Out-sourcing,
Software Project Management, Computer Aided Software Engineering (CASE) Tools. System
Architecture: Clients (Hardware/ Software), Servers (Hardware/ Software). Client Server
Architecture, 3 Tier Architecture, N-Tier Architecture etc.
Data Warehousing – Data Mining tools
MIS and Organization Support Systems – DSS, EIS, GDSS, Groupware and Multimedia
Business Intelligence – Expert Systems, Artificial Neural Networks (ANN) Grid Computing,
Virtualization and Consolidation
Module – C: Applications in Banking
Centralized Banking System/ Core Banking System/ System Administration, Database
Administration, Application Server and Application Administration, Network Administration,
Domains, ISPS, Hosting, Data Downloads/ Uploads, Band widths, Data Centre, Data Storage
Devices, Data Backups/ Restoration, Disaster Recovery Centre
Delivery Channels – ATM, EFTPOS, Phone Banking, Internet Banking, SMS Banking,
Mobile Banking, Credit/ Debit Cards, Smart Cards
E-Mails, SMS alerts
E-Commerce – Secure Electronic Transfer (SET), Payment Gateways (Credit card/ Debit cards),
Authentication of payments etc.
PKI – CCA, CA, RA, Digital Certificate, Digital Signature, Non-repudiation of Origin, Nonrepudiation of Receipt.
Service – Level Agreement
Module – D: Security, Controls and Guidelines
Threats to Information System: i) Physical (Insiders/ outsiders) ii) Viruses, Worms, Trojan horse,
Malwares, Software bombs, Phishing, Spoofing, Spamming, denial of service attacks etc.
Information System Security Measures, Policy, controls, ISO, 17799, BS7799, IS4477, IS Audit,
BCP/ DRP, IT Act 2000, Basel guidelines for E-banking, Various RBI Committee Reports on
IT Service Delivery & Support: Service level management practices, Operations management –
work load scheduling, network services management, Preventive maintenance, Systems
performance monitoring process tools, techniques, Functionality of hardware, software, data
base. Drafting of RFP, system specifications, SLAs, Capacity planning & monitoring, Change
management processes/ scheduled, emergency in configuration of production systems,
application of patches, releases etc., Incident & problem management practices, System
resiliency tools and techniques – fault tolerance, elimination of single point of failure, clustering
|CAIIB Syllabus for Elective Risk Management
Module – A: An overview
- Risk definition/ policies
i) Risk Process-Risk Organization
ii) Key risks – Credit risk, market risk, operational risk, liquidity risk, legal risk, interest rate
risk and currency risk
- Asset Liability Management
i) ALM Concept
ii) ALM organization
iii) ALCO techniques/ tools
iv) Simulation, Gap, Duration analysis, Linear and other statistical methods of control
- Risk measurement & Control
ii) Risk exposure analysis
iii) Risk management/ mitigation policy
iv) Risk immunization policy/ strategy for fixing exposure limits
v) Risk management policy and procedure
vi) Risk adjusted return on capital
vii) Capital adequacy norms
- Risk management
i) Capital adequacy norms
ii) Prudential norms
iii) Exposure norms
iv) Concept of Mid office
viii) Strategies and Arbitrage opportunities
ix) Regulatory prescriptions of risk management
Module – B: Credit Risk Management
2) Basel Norms
3) Three pillars of Basel and Capital for Operational risk
4) Frame work for risk management
5) RBI guidelines on risk management
6) Risk rating and risk pricing
7) Methods for estimating capital requirements
8) Credit risk – standardized approach
9) Credit risk – advanced approach
10) Credit rating/ credit scoring and rating system design
11) Credit Bureaus
12) Stress test and sensitivity analysis
13) Internal Capital Adequacy Assessment Process (ICAAP)
14) Introduction to structured products
Module – C: Operational Risk
1) Introduction, Basel Norms
2) RBI guidelines
3) Likely forms of operational risk and causes for significant increase in operational risk
4) Sound Principles of Operational Risk Management (SPOR)
5) SPOR – organizational set up and key responsibilities of ORM
6) SPOR – policy requirements and strategic approach for ORM
7) SPOR identification, measurement, control/ mitigation of operational risks
8) Capital allocation for operational risk, methodology, qualifying criteria for banks for the
adoption of the methods
9) Computation of capital charge for operational risk
Module – D: Market risk
1) Introduction and definition
2) Prescriptions of Basel Norms
3) Liquidity risk
4) Interest rate risk
5) foreign exchange risk
6) Price risk (Equity)
7) Commodity risk
8) Treatment of market risk under Basel
i) Standardized duration method
ii) Internal measurement approach – VaR
Module – E: Risk Organization and Policy
1) Risk Management Policy
2) Inter – linkages to – Treasury
|CAIIB Syllabus for Elective Central Banking
Module – A: Rationale and Functions of Central Bank
- Evolution and Functions of Central Banking: Evolutions of Theory and Practice of Central
Banking, Development of Central Banks in Developed and Developing countries.
- 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.
Contemporary Issues: Desirability, Autonomy and independence, Credibility, accountability
and transparency of a Central Bank, conflict with fiscal policies.
Module – B: Central banking in India
- Reserve Bank of India: Organizational evolution, Constitution and Governance, Major
organizational and Functional Developments over time, Recent Developments, RBI Act.
- India Specific Issues: Banking Regulation Act, FEMA, Banking Ombudsman Scheme,
Financial Sector reforms, other financial regulators and division of functions. Institutions set
up by RBI; NABARD, IDBI, DFHI, IRBI, UTI.
Glossary of Central Banking Terms.
Module – C: Monetary Policy and Credit Policy
- 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.
- Credit Policy: Objectives, Theory and Practice, Instruments.
- An over view of Fiscal Policy: Importance of Budgets, Union Budget, State Budget,
Finances of Union and State Governments, Finance Commission.
Striking balance between inflation and growth through monetary and fiscal policies.
Module – D: Supervision and Financial Stability
- Indian Financial System: Constituents of Indian Financial Markets and their Regulation.
Evolution of Bank Regulation and supervision.
- 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