PES INSTITUTE OF TECHNOLOGY, BANGALORE SOUTH CAMPUS
Department Of MBA
Lesson Plan
Semester – III
Subject Code: 14MBAFM306
Subject Title: STRATEGIC CREDIT MANAGEMENT
Faculty Name: Divya Mathur
No of Hours / Week: 4 hrs.
Practical Component-01 Hr. /Week
Total no of Lectures: 56
IA Marks: 50
Exam Hours: 3 Hours
Exam Marks: 100
Table -1
Session Plan
Mod Session. Contents
No
No.
1
2
1
Pedagogical Tools
Presentation
Assignments /
additional
work
Credit management in banks- Lecture
Screening of applicationsAppraisal of credit-Sanction
limit.
•Proper understanding of
various aspects related to
credit in banking.
To understand the various Lecture
aspects of policies and
compliances
required
in
banking process.
Post sanction compliance –
Monitoring
supervision
–
Review- Government policies
for credit Extension
Understanding of various
modes of banking.
PPT and
Hand outs
-
Student
Learning
Evaluation
Technique
Class Discussion
PPT and
Hand outs
-
Class Discussion
To
study
the
various Lecture
principles of lending in
banks.
Credit institutions- Principles
of good lending- Borrower
PPT and
Hand outs

3
Class Discussion
Assignments
Cumulative
Coverage
11.53%
4
1
LAB-I
5
6
2
7
2
8
LAB-II
9
study and bankers opinion.
To
study
the
various
principles of lending in
banks.
Credit policy by banksGovernment regulation of
credit -Prudential norms.
To Visit Public Limited Banks
Assess Their Process Submit
Report
Group Activity
To Visit Private Limited Banks
Assess Their Process Submit
Report
Over view of credit policy
and loan characteristics
Objectives, activities,
interacting systems, role of
depositories and their Services
 To understand various
aspects of credit system
To analyze various aspects of
creditorFinancial statement analysisCash flow analysis- Projections
To
understand
various
feasibility issues
Management of the firm and
other factors –Feasibility study
To do credit analysis
Fundamental credit issues Credit analysis-Different types
of borrowers.
Lecture
-
Class Discussion
Lecture
Class Discussion
Case presentation
Lecture
Class Discussion
Case presentation
Assignments
Lecture
Class Discussion
Test
Assignments
Lecture
To Visit NBFCs Assess Their
Role Submit Report
To Visit Post Office Savings
Bank Assess Their Role Submit
Report
lecture
Balance sheet analysis
-
Class Discussion
Case presentation
Assignments
-
Class Discussion
26.92%
26.92%
3
10
11
12
LABIII
13
4
14
15
16
LABIV
17
18
5
for lending
– Forms of advances secured
and unsecured advances- Short
term and long term advances.
lecture
Evaluating consumer loans
Types- Credit analysis of
consumer loans
 The student should be able
To analyze various aspects lecture
related to risk and return.
Risk–return analysis of
consumer loans
Customer profitability analysis and Lecture
loan pricing- Fixed Vs floating rates
Case Study (What do the Black
Monday crash of 1987 and the tech
crash of 2000 tell us about the
efficient Market Hypothesis)
Loan and advances against pledge Lecture
Hypothecation- Mortgage – LienAdvances against goods
Document to title to goods – Life Lecture
insurance policies
Stock exchange securities-Fixed Lecture
deposit receipts
Book debts- Supply bills- Real Lecture
estates – Advance against collateral
securities.
To Visit Foreign Banks Assess Their
Activity Submit Report
To Collect Data From Private
Lenders– Analyse Data Submit One
Article
Agricultural finances and Retail Lecture
lending
Crop
loansCrop
insurance
schemes- DairySericulture
Poultry- Animal husbandry –
Lecture
Horticulture – Gobar gas
Assignments
Class Discussions
Assignments
-
PPT and Hand outs
Class Discussions
Case presentation
Assignments
Class Discussions
PPT and Hand outs
PPT and Hand outs
PPT and Hand
outs
PPT and Hand outs
Class Discussion
Assignment
PPT and Hand outs
Class Discussion
Assignment
PPT and Hand outs
Class Discussion
38.46%
19
20
LABV
20
4
21
22
23
LABVI
24
25
5
26
27
LABVI
28
Kissan credit cards –
NABARD initiatives
Lead bank schemes – Retail banking
advances
To Visit Mutual Funds Companies
Assess Their Process Submit Report
Concept – Retail
banking products – Consumer credit
financing
Financing to small scale industries
and large scale industries
Term lending- Syndicated loan
system- Role of development banks
in industrial finance
Working capital finance- Turnover
method
Modified version of MPBF – Cash
budget approach
Identify the list of Agricultural
finance institutions in Bangalore city
Long term finance-Project
Financing –Industrial sickness and
BIFR.
NPA management –
Introduction- Identification of NPAs
Asset classification- Prudential
normsCapital adequacy
International Banking RegulationBasel II
Prepare a report about various
schemes that
NABARD has introduced to farmers
on Agriculture
International Banking RegulationBasel II
Lecture
PPT and Hand
outs
PPT and Hand
outs
Class Discussion
Lecture
PPT and Hand
outs
Lecture
PPT and Hand
outs
Class Discussions
Test
Assignments
Class Discussions
Test
Assignments
Lecture
PPT and Hand outs
PPT and Hand outs
Lecture
Lecture
Lecture
Class Discussion
Case presentation
Assignments
Class Discussion
Assignments
Class Discussion
Assignment
50%
61.53%
PPT and Hand outs
Lecture
Lecture
Lecture
PPT and Hand outs
PPT and Hand
outs
Class Discussion
Lecture
PPT and Hand
outs
Class Discussion
Case presentation
Assignments
Class Discussion
Assignments
Lecture
PPT and Hand
outs
Class Discussion
Assignments
76.92%
29
asset classification
provisioning – effect of NPA on
profitability
Lecture
PPT and Hand
outs
30
Assessment procedure- Pre-sanction
appraisal
Lecture
PPT and Hand
outs
31
Post sanction supervisionMonitoring systems for existing and
likely NPAs
Write a case involving the actions of
government that has taken during
natural calamities for
farmers
NPAs—Tools to manage
NPAs –Compromise scheme
Lok Adalats, Debt Recovery
Tribunals
Corporate Debt
Restructuring,
Willful defaulters, SARFAESI Act,
Lecture
PPT and Hand
outs
Class Discussion
Case presentation
Lecture
PPT and Hand
outs
PPT and Hand outs
PPT and Hand outs
PPT and Hand outs
Class Discussion
Case presentation
Class Discussion
Case presentation
Class Discussion
Case presentation
Class Discussion
Case presentation
PPT and Hand
outs
PPT and Hand
outs
PPT and Hand
outs
Class Discussion
Case presentation
7
LABVIII
32
33
34
35
8
LABIX
36
Lecture
Lecture
Lecture
Lecture
37
Implementation of Tondon
Committee recommendations
Asset Reconstruction CompaniesCIBIL
 REVISION
38

Lecture
39
LABX
40
41
42
43
REVISION
Experience of the dishonor of
cheques and its after effect in a bank
REVISION
REVISION
REVISION
Review of previous year question
papers
REVISION
Lecture
Class Discussion
Test
Case presentation
Assignments
Class Discussion
Presentations
Assignments
Class Discussion
Case presentation
Class Discussion
Case presentation
88.46%
100%
LABXI
44
45
46
LABXII
Study of profitability of any two
banks for a period of 2 years
Review of previous year question
papers
Review of previous year question
papers
Review of previous year question
papers
The various ways of Corporate
Governance practiced by any one
bank
Table – 2
Presentation Topics
Sl.No.
1
2
3
4
5
6
7
8
Presentation Topic
Government policies for credit extension
Characteristics of different types of loans
Credit analysis of consumer loans
Crop insurance schemes
Retail banking products
Consumer credit financing
Role of development banks in industrial finance
International Banking Regulation
Table – 3
Assignments & Additional Work
Mod No
1
2
3
4
5
6
7
8
1-8
S.No.
Assignment Topics
Questions from module 1
Questions from module 2
Questions from module 3
Questions from module 4
Questions from module 5
Questions from module 6
Questions from module 7
Questions from module 8
Each student have to submit three questions from question bank
 1 question for 3 marks
 1 question for 7 marks
 1 question for 10 marks
Table – 4
Case Study Topics
Case study will be given to the students for
presentation based on previous year question papers problems
S.No.
Particulars
I – VIII
Question Paper, VTU, December 2010
”
Question Paper, VTU, July 2010
”
Question Paper, VTU, December 2009
”
Question Paper, VTU, July 2009
”
Question Paper, VTU, December 2008
”
Question Paper, VTU, July 2008
”
Question Paper, VTU, December 2007
”
Question Paper, VTU, July 2007
”
Question Paper, VTU, December 2006
”
Question Paper, VTU, June / July 2006
”
Question Paper, VTU, December 2004
Mod No
Table – 5
References & Additional Readings
S.No.
1
2
3
4
Particulars
Industrial Finance - Vishwanathan R, Macmillan, New Delhi.
Banking and Financial System - Prasad K, Nirmala and Chandradas.
Himalaya
Publishing House, Mumbai
Managing Banking Risks - Cade, Eddic, Woodhead Publishers, England.
Strategic Credit Management in Banks, Popli.G.S. and Puri S. K. , PHI,
2013