The Certified Associate of Indian Institute of Bankers (CAIIB) exam is a highly prestigious and coveted banking certification. The course focuses on advanced knowledge and skills relevant to banking and financial services. The syllabus of the CAIIB exam includes a wide range of topics that candidates need to cover to pass the exam.
Before embarking on the journey of breaking down the CAIIB exam syllabus, it is imperative to understand what it encompasses. The CAIIB exam focuses on three papers, namely Advanced Bank Management (ABM), Bank Financial Management (BFM), and Corporate Banking. Each of these papers holds a weightage of 100 marks and consists of questions in the objective and descriptive format.
The ABM paper has five units, namely Economic Analysis, Business Mathematics, HR Management, Marketing Management, and International Banking. The paper aims to equip candidates with an understanding of contemporary business environment, product and business development, customer service, and marketing strategies, among others.
The BFM paper comprises of six units, namely Regulatory Framework of Banks, Risk Management, Treasury Management, Balance Sheet Management, Credit Management, and International Banking. This paper focuses on developing the skills required in optimizing the bank’s revenue and capital management, asset-liability management, interest rate risk management, and credit risk management.
The Corporate Banking paper consists of five units, namely Working Capital Finance, Project Finance, Infrastructure Finance, Financial Analysis, and Credit Rating. This paper primarily focuses on the skills relevant to the corporate banking division, such as analyzing business opportunities, valuing financial securities, and identifying high-return investments.
Now, let us break down the individual units of each paper in more detail.
Advanced Bank Management
1. Economic Analysis – This unit includes a study of the Indian financial system, money and capital markets, macroeconomic fundamentals, and global economic trends.
2. Business Mathematics – This unit is based on the mathematical techniques used in finance, such as time value of money, discounted cash flow analysis, statistical analysis, and bond and stock valuation.
3. HR Management- This unit comprises a study of the human resource aspects in a bank, such as HR policies and practices, recruitment and selection, performance appraisal, training and development, and compensation management.
4. Marketing Management – This unit focuses on the various marketing strategies that a bank uses to position its products, analyze customer behavior, and enhance customer service.
5. International Banking – This unit covers the different aspects of international banking, such as trade finance, foreign exchange, and international funds transfer.
Bank Financial Management
1. Regulatory Framework of Banks – This unit includes a study of the different regulatory bodies governing the banking system in India, prudential norms, statutory compliance, and risk management guidelines.
2. Risk Management – This unit comprises a study of the various types of risks that a bank faces, such as credit risk, market risk, operational risk, and liquidity risk.
3. Treasury Management – This unit focuses on the management of the bank’s treasury functions, such as cash management, investment management, and money market operations.
4. Balance Sheet Management – This unit covers the different techniques used in managing the bank’s balance sheet, such as asset-liability management, interest rate risk, and capital adequacy ratio.
5. Credit Management – This unit includes a study of credit appraisal techniques, loan documentation, credit policy, and monitoring and recovery of loans.
6. International Banking – This unit covers the different aspects of international banking, such as trade finance, foreign exchange, and international funds transfer.
1. Working Capital Finance – This unit includes a study of the working capital cycle, trade finance, cash credit, bank guarantees, and factoring.
2. Project Finance – This unit focuses on project appraisal techniques, financing structures, risk assessment, and credit rating.
3. Infrastructure Finance – This unit covers the different financing options available for infrastructure projects such as road, power, and telecommunication.
4. Financial Analysis – This unit comprises a study of financial statement analysis, sources of finance, ratio analysis, and valuation of securities.
5. Credit Rating – This unit includes a study of the different credit rating agencies in India, the methodology, and the factors affecting credit rating.