Hailey College of Banking & Finance
University of the Punjab
Lahore
COURSE OUTLINE
Program MBA (Banking & Finance) Course Mr. Faran Ali
Instructor
Year/Semester 2020-22/4th E-mail :
[email protected]Code
Title Banks Credit Management
Rating
Type Elective/Specialization
Pre requisites Basic courses on Business and Banking
Introduction
Objectives To equip the students with practical and first-hand knowledge of credits
marketing, processing, sanction and management in banks
Contents Listed below
Outcome Student will be able to ;
Comprehend the business of Credits and its importance for Banking sector
Learn about different kinds of credit facilities and Risks involved in lending
Learn Different Credit Risk Management Approaches adopted by Banking
sector
Basic difference between lending of Islamic Banks and Conventional Banks
Text Book/s 1) Commercial Banking Management by Peter S. Rose
2) Branch Banking by IBP
3) Lending: Products, Operations and Risk Management by IBP
4) Guide to Islamic Banking by Dr. Imran Usmani
Syllabus (Weekly Scheme) Before Mid-Term Examination
Week Topics
1st Concept of Banking, Evolution of Money and Banking
Concept of Credit and Role of Banking in Economic Development of a Country
Introduction to Conventional Banking
Detailed and practical analysis of working of all departments in banks (cash,
2nd & account opening, remittance, clearing, credit, Trade, Treasury)
3rd
Discussion about importance of having knowledge, regarding all departments in
a bank for an employee who is working in credit department
Types of Credits and its basis i.e. Fund Based and Non Fund based credit facilities,
4th Nature of each credit facility, its respective uses and Risks associated with the
facility(ies) (RF, FAPC, FDBP, FATR, FIM, Term Loans, LC, LG)
Promotion of bank’s credit, appropriate utilization of credit, Capturing new
5th
customers, Bases for allocation of funds for Credits
Defining Risk, Concept of Risk assessment & risk management, 5 C’s of Lending,
6th
Credit Processing and Verification of Credit Worthiness of Customers
Analysis of Credit Proposals and Calculations Involved in Credit Processing,
7th Need for Financial Statements Analysis, Ratios Involved in Analysis,
Interpretations of Ratio Analysis, Assessment of customer financial capacity
Concept of Securities & Covenants, Importance of Securities & Covenants, Types
of Securities involved in Securing Lending i.e.
• Lien
8th
• Pledge
• Hypothecation
• Mortgage
Mid-Term Examination
After Mid-Term Examination
Brief introduction about syndicate loans, its procedure and implications
9th Credit Sanction (Credit Decision Making)
Types of Credit Documents, Execution and Safe Custody
Collateral Securities---Scrutiny, Valuation, Verifications, Documentation, Safe
10th
Custody and Release (Stock Report, search report, DP note, valuation report etc.)
Credit Portfolio Management- Credit Administration Department (CAD) and its
11th
detailed working
Willful default Vs Circumstantial default
12th
Rescheduling & Restructuring of Credits
Collection and Recovery Management, Special Asset Management (SAM)
13th
Managing Litigation and Post Litigation Operations
Concept of Islamic Banking, Types of Riba, Basic difference between Islamic and
conventional lending products
14th
Conditions of valid sale (Bai)
(Murabaha, Modarbah, Diminishing Musharkah)
Preparation of credit proposals in class, Case study analysis
15th & 16th
Presentations, Discussion and Question Answer Sessions
Final Examination
Teaching Strategies Interactive discussion and presentations in class room and
visit of banks to have practical knowledge
Presentation/ Class Mid-Term Final Total
Marks activities/Assignment/ Examination Examination %
Assessment in% Quiz
Criteria 25 35 40 100
Result
Recommendations All Assignments must be completed and presented on time.
Governing Rules
Students are advised to go through the rules and regulations governing their class attendance,
display of College ID Card, use of mobile phones, eating/smoking roaming, general behavior,
etc. on the Campus.
Any violation thereof is punishable under the relevant rules.
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