Indian Institute of Banking and Finance (IIBF) has released the syllabus and exam pattern of Certified Associate of Indian Institute of Bankers (CAIIB). IIBF conducts the CAIIB exam biannually i.e. twice a year. The objective of the CAIIB exam is to provide advanced knowledge to the candidates necessary for better decision-making covering Credit Management, International Banking, Balance Sheet Management, Risk Management, Treasury Management, Economic Analysis, etc. Bookmark this page, and refer to the revised CAIIB Syllabus 2024 given on this page. 

CAIIB Syllabus and Exam Pattern 2024

CAIIB 2024 July session exam has been scheduled for the 7th, 13th, 14th, 21st, and 27th July 2024, Candidates who are already qualified in the JAIIB Examination can prepare for the CAIIB Examination, which is conducted by the Indian Institute of Banking and Finance for their promotion. By passing the CAIIB Examination, bankers can benefit from additional increments at every scale. It is high time for the candidates to start their preparation with a detailed CAIIB Syllabus. To help you get started, we have summarized some brief information about the CAIIB Examination. 

IIBF CAIIB Syllabus 2024
Exam conducting BodyIndian Institute of Banking and Finance 
Exam Name CAIIB 2024
Exam LevelNational Level
CAIIB Exam Date 20247th, 13th, 14th, 21st, 27th July 2024
Mode of ExamOnline
Types of QuestionsMultiple Choice Type
Number of Papers5 Papers
No. of Questions 100 each paper

CAIIB Registration Form 2024 Out- Click to Apply

CAIIB Exam Pattern 2024

As per the revised CAIIB Exam Pattern 2024, the CAIIB exam consists of five papers, of which four papers are compulsory and one paper is elective. The key points of the CAIIB exam pattern are as follows:

  1. The CAIIB examination is conducted in Online Mode only.
  2. Each paper carries 100 multiple-choice questions of 100 marks.
  3. The time duration allotted to complete each paper is 2 hours.
  4. The exam paper will be bilingual i.e. both in English and Hindi Language.
Advanced Bank Management1001002 hours
Bank Financial Management1001002 hours
Advance Business & Financial Management1001002 hours
Banking Regulations and Business Laws1001002 hours

Elective Papers (choose any one)

  1. Rural Banking
  2. Human Resources Management
  3. Information Technology & Digital Banking
  4. Risk Management
  5. Central Banking
1001002 hours

IIBF CAIIB Syllabus 2024

The new IIBF CAIIB Syllabus 2024 consists of 5 papers, of which 4 papers are compulsory and one paper is elective. All papers are divided into Modules. Candidates have the choice to choose any one of the papers among 5 Elective Papers. Candidates are advised to choose elementary papers wisely and prepare all the topics. We have given a detailed CAIIB Syllabus 2024 in the table below:

Paper 1- Advanced Bank Management

Paper-1 consists of  four modules, these four modules are as follows:

  1. Module A- Statistics
  2. Module B- Human Resource Management
  3. Module C- Credit Management
  4. Module D- Compliance in Banks and Corporate Government

The detailed syllabus of Paper-1 is given below in the table: 

Compulsory Paper 1- Advanced Bank Management
Chapters Topics 
Module A- Statistics
Definition of Statistics, Importance & Limitations & Data Collection, Classification & Tabulation

Importance of Statistics; Functions of Statistics; Limitation or Demerits of Statistics; Definitions;

Collection of Data; Classification and Tabulation; Frequency Distribution

Sampling Techniques

Random Sampling; Sampling Distributions; Sampling from Normal Populations; 

Sampling from NonNormal Populations; Central Limit Theorem; Finite Population Multiplier

Measures of Central Tendency & Dispersion, Skewness, Kurtosis

Arithmetic Mean; Combined Arithmetic Mean; Geometric Mean; Harmonic Mean; Median and

Quartiles; Mode; Introduction to Measures of Dispersion; Range and Coefficient of Range; Quartile

Deviation and Coefficient of Quartile Deviation; Standard Deviation and Coefficient of Variation;

Skewness and Kurtosis

Correlation and RegressionScatter Diagrams; Correlation; Regression; Standard Error of Estimate
Time Series

Variations in Time Series; Trend Analysis; Cyclical Variation; Seasonal Variation; Irregular Variation;

Forecasting Techniques

Theory of Probability

Mathematical Definition of Probability; Conditional Probability; Random Variable; Probability

Distribution of Random Variable; Expectation and Standard Deviation; Binomial Distribution; Poisson

Distribution; Normal Distribution; Credit Risk; Value at Risk; Option Valuation


Estimates; Estimator and Estimates; Point Estimates; Interval Estimates; Interval Estimates and

Confidence Intervals; Interval Estimates of the Mean from Large Samples; Interval Estimates of the

Proportion from Large Samples

Linear ProgrammingGraphic Approach; Simplex Method
SimulationSimulation Exercise; Simulation Methodology
Module- B: Human Resource Management
Fundamentals of Human Resource Management

The Perspective; Relationship between HRM & HRD and their Structure and Functions; 

Role of HR Professionals; Strategic HRM; Development of HR Functions in India

Development of Human Resources

HRD and its Subsystems; Learning and Development – Role and Impact of Learning; Attitude

Development; Career Path Planning; Self-Development; Talent Management; Succession Planning

Human Implications of Organisations

Human Behaviour and Individual Differences; Employees Behaviour at Work; Diversity at Workplace and

Gender Issues; Theories of Motivation and their Practical Implications; ‘Role’ : Its Concept & Analysis

Employees’ Feedback and Reward SystemEmployees’ Feedback; Reward and Compensation System
Performance Management

Appraisal Systems; Performance Review and Feedback; Counselling; Competency Mapping and

Assessment of Competencies; Assessment Centres; Behavioural Event Interview (BEI)

Conflict Management and Negotiation

Conflict: Concept & Definition; Characteristics of Conflict; Types of Conflicts; Reasons for Conflict;

Different Phases of Conflict; Conflict Resolution; Conflict Management; Negotiation Skills for Resolution

of Conflicts

HRM and Information Technology

Role of Information Technology in HRM; HR Information and Database Management; Human Resource

Information System (HRIS); Human Resource Management System (HRMS); e–HRM; HR Research;

Knowledge Management; Technology in Training; HR Analytics

Module- C: Credit Management
Overview of Credit Management

Importance of Credit; Historical Background of Credit in India; Principles of Credit; Types of Borrowers;

Types of Credit; Components of Credit Management; Role of RBI Guidelines in Bank’s Credit


Analysis of Financial Statements

Which are the Financial Statements; Users of Financial Statements; Basic Concepts Used in Preparation

of Financial Statements; Accounting Standards (AS); Legal Position Regarding Financial Statements;

Balance Sheet; Profit and Loss Account; Cash Flow Statement; Funds Flow Statement; Projected

Financial Statements; Purpose of Analysis of Financial Statements by Bankers; Rearranging the Financial

Statements for Analysis; Techniques used in Analysis of Financial Statements; Creative Accounting;

Related Party Transactions

Working Capital Finance

Concept of Working Capital; Working Capital Cycle; Importance of Liquidity Ratios; Methods of

Assessment of Bank Finance; Working Capital Finance to Information Technology and Software Industry;

Bills/Receivables Finance by the Banks; Guidelines of RBI for Discounting/Rediscounting of Bills by

Banks; Trade Receivables Discounting System (TReDS); Non-Fund Based Working Capital Limits; Other

Issues Related to Working Capital Finance

Term Loans

Important Points about Term Loans; Deferred Payment Guarantees (DPGs); Difference between Term

Loan Appraisal and Project Appraisal; Project Appraisal; Appraisal and Financing of Infrastructure


Credit Delivery and Straight Through Processing

Documentation; Third-Party Guarantees; Charge over Securities; Possession of Security; Disbursal of

Loans; Lending under Consortium/Multiple Banking Arrangements; Syndication of Loans; StraightThrough Loan Processing or Credit Underwriting Engines

Credit Control and MonitoringImportance and Purpose; Available Tools for Credit Monitoring/Loan Review Mechanism (LRM)
Risk Management and Credit Rating

Meaning of Credit Risk; Factors Affecting Credit Risk; Steps taken to Mitigate Credit Risks; Credit Ratings;

Internal and External Ratings; Methodology of Credit Rating; Use of Credit Derivatives for Risk

Management; RBI guidelines on Credit Risk Management; Credit Information System

Restructuring/Rehabilitation and Recovery

Credit Default/Stressed Assets/NPAs; Wilful Defaulters; Non-cooperative borrowers; Options Available

to Banks for Stressed Assets; RBI Guidelines on Restructuring of Advances by Banks; Available

Frameworks for Restructuring of Assets; Sale of Financial Assets

Resolution of Stressed Assets under Insolvency and Bankruptcy Code 2016

Definition of Insolvency and Bankruptcy; To Whom the Code is Applicable; Legal Elements of the Code;

Paradigm Shift; Corporate Insolvency Resolution Process; Liquidation process; Pre-packed Insolvency

Resolution Process for stressed MSMEs

Module - D: Compliance in Banks and Corporate Government
Compliance Function in Banks

Compliance Policy; Compliance Principles, Process and Procedures; Compliance Programme; Scope of

Compliance Function; Role & Responsibilities of Chief Compliance Officer (CCO)

Compliance Audit

Role of Risk Based Internal Audit and Inspection; Reporting Framework and Monitoring Compliance;

Disclosure Requirements; Accounting Standards; Disclosures under Listing Regulations of SEBI

Compliance Governance Structure

Organisational Structure; Responsibility of the Board and Senior Management; Compliance Structure at

the Corporate Office; Functional Departments; Compliance Structure at Field Levels; Internal Controls

and its Importance

Framework for Identification of Compliance Issues and Compliance Risks

Compliance Issues; Compliance Risk; Inherent Risk and Control Risk; Independent Testing and Effective

Audit Programme; Reporting Framework and Monitoring Compliance; Role of Inspection and Audit;

Loan Review Mechanism/Credit Audit; What is Good Compliance

Compliance Culture and GRC Framework

How to Create Compliance Culture Across the Organisation; Governance, Risk and Compliance – GRC

Framework; Benefits of an Integrated GRC Approach; Whistle-blower Policy; The Components of a

Whistle-blower Policy; Reasons for Compliance Failures

Compliance Function and Role of Chief Compliance Officer in NBFCs

Framework for Scale Based Regulation for Non-Banking Financial Companies; Transition Path;

Framework for Compliance Function and Role of Chief Compliance Officer in Non-Banking Financial

Companies in Upper Layer and Middle Layer (NBFC-UL & NBFC-ML)

Fraud and Vigilance in Banks

Definition of Fraud; Definition of Forgery; Areas in which Frauds are committed in Banks; Banking and

Cyber Frauds; Fraud Reporting and Monitoring System; Vigilance Function in Banks; RBI Guidelines for

Private Sector and Foreign

Paper 2 - Bank Financial Management

Paper-2 consists of  four modules, these four modules are as follows:

  1. Module A- International Banking
  2. Module B- Risk Management
  3. Module C- Treasury Management
  4. Module D- Balance Sheet Management

The detailed syllabus of Paper-2 is given below in the table: 

Compulsory Paper - 2: Bank Financial Management 
Module - A: International Banking
Exchange Rate and Forex Business

Foreign Exchange – Definition and Markets; Factors Determining Exchange Rates; Exchange Rate

Mechanism; Foreign Exchange Dealing Room Operations; Derivative Products; RBI / FEDAI Guidelines;

Foreign Exchange Arithmetic – Concepts and Examples

Liberalised Remittance Scheme (LRS) and
other Remittance Facilities for Residents

Capital Account Transactions and Current Account Transactions; Key Sections under FEMA vis-à-vis

Liberalized Remittance Scheme; Permissible/Non-permissible Remittances under LRS; Operational

Guidelines; Remittances under LRS for Current Account Transactions; Tax Collected at Source (TCS); LRS

vis-à-vis Capital Account Transactions; Reporting Requirements under LRS

Correspondent Banking and NRI Accounts

Correspondent Banking – Accounts and other Services; Nostro, Vostro and Loro Accounts; Electronic

Modes of Transmission/Payment Gateways – SWIFT, CHIPS, CHAPS, RTGS, etc.; NRI Banking; NRI

accounts – Rupee and Foreign Currency Accounts; Facilities to NRIs; Advances to Non-Residents against

Non-Resident Deposits; Housing Loans to Non-Resident Indians

Documentary Letters of Credit

Definition of Letter of Credit; Types of Letters of Credit; Operations of Letter of Credit; UCP 600 and

Important Articles; Liabilities, Responsibilities and Rights of the Parties; Documents under LC – Scrutiny,

Crystallization, Follow-up for Bills under LC and Safeguards for Banks; Risks Relating to LC Transactions;

Standby Letter of Credit (Similar to Guarantees); Uniform Rules for Bank-to-Bank Reimbursements

(URR–725); International Standard Banking Practice – 745 (ISBP 745); Incoterms; Case Studies

Facilities for Exporters and Importers

Exchange and Trade Control Guidelines for Exporters; Facilities for Exporters;; Export Finance; Gold Card

Scheme for Exporters; Export Data Processing and Monitoring System (EDPMS); Factoring and

Forfaiting; Exchange and Trade Control Guidelines for Importers; Import Finance; Import Data

Processing and Monitoring System (IDPMS); Trade Credit – Supplier’s Credit and Buyer’s Credit; Case

Study on Export Finance

External Commercial Borrowings and Foreign Investments in India

External Commercial Borrowings – Concepts; ECBs – Other Operational Concepts; Reporting

Requirements; Conversion of ECB into Equity; Foreign Investments; Key Concepts; Eligible Foreign

Investors; Eligible Investee Entities; Eligible Investment Instruments; Prohibited Sectors; Rules

Governing Pledge of Shares; Operational Guidelines; Snap Shot of Non-Debt Instruments (NDI) Rules;

List of Documents for Obtention of Foreign Investments; List of Documents for Refund of Foreign


Risks in Foreign Trade – Role of ECGC

Definition of Risk and Risks in International Trade; Country Risk; Export Credit Insurance in International

Trade; ECGC Role and Products; ECGC Policies; ECGC’s Products for Banks; Other Aspects Relating to

ECGC Policies and Guarantees; Some of the Common “To Do Points” under ECGC Policies; Claims

Role of EXIM Bank, Reserve Bank of India, 
Exchange Control in India – FEMA, FEDAI and Others

EXIM Bank – Role, Functions and Facilities; Reserve Bank of India – Role and Exchange Control

Regulations in India; Foreign Exchange Management Act (FEMA) 1999; Role of FEDAI and FEDAI Rules;

Short Notes on Other Topics: ECB and ADR/GDRs and FCCB; 

International Financial Service Centres (IFSC), GIFTCity

Scope of IFSC in India; Opportunities at Gift City; Guidelines relating to setting up of IFSC Banking Units

(IBUs); Role of IFSCA ; Regulatory Framework; Permissible Activities at IBUs; Relaxations for the FPI

(Foreign Portfolio Investors) Entities at GIFT City

Technology in International Banking

Introduction to Digitization in International Banking – An Overview, Evolution of Technology in

International Banking; Benefits and Limitations of Technology in International Banking; Digital Platforms

in International Banking; FINTECH and evolution of FINTECH in International Banking; Delivery channels

under FINTECH in International Banking; Sample process of International Trade Using Blockchain

Technology; Challenges in FINTECH

Module - B: Risk Management
Risk and Basic Risk Management Framework

What is Risk?, Linkages aamong Risk, Capital and Return; 

Why Risk Management? Basic Risk Management Framework

Risks in Banking Business

Risk Identification in Banking Business; The Banking Book; The Trading Book; Off-Balance Sheet

Exposures; Banking Risks – Definitions

Risk Regulations in Banking Industry

Regulation of Banking Industries – Necessities and Goals; The Need for Risk-based Regulation in a

Changed World Environment; Basel I: The Basel Capital Accord; 1996 Amendment to Include Market

Risk; Basel II Accord – Need and Goals; Basel II Accord; Towards Basel III; Capital Charge for Credit Risk;

Credit Risk Mitigation; Capital Charge for Market Risk; Capital Charge for Operational Risk; Pillar 2 –

Supervisory Review Process; Pillar 3 – Market Discipline; Capital Conservation Buffer; Leverage Ratio;

Countercyclical Capital Buffer; Systemically Important Financial Institutions (SIFIs); Risk Based

Supervision (RBS

Market Risk

Market Risk – Concept; Market Risk in Banks; Market Risk Management Framework; Organisation

Structure; Risk Identification; Risk Measurement; Risk Monitoring and Control; Risk Reporting;

Managing Trading Liquidity; Risk Mitigation

Credit Risk

General; Credit Risk Management Framework; Organisation Structure; Risk Identification; Risk

Measurement; Credit Risk Control and Monitoring; Credit Risk Policies and Guidelines at Transaction

Level; Credit Control and Monitoring at Portfolio Level; Active Credit Portfolio Management; Controlling

Credit Risk through Loan Review Mechanism (LRM); Credit Risk Mitigation; Securitisation; Credit

Derivatives (CDs)

Operational Risk and Integrated Risk Management

Operational Risk – General; Operational Risk – Classification; Operational Risk Classification by Event

Type – Definitions; Operational Risk Management Practices; Management Overview and Organisational

Structure; Processes and Framework; Risk Monitoring and Control Practices; Operational Risk

Qualification; Operational Risk Mitigation; Scenario Analysis; Integrated Risk Management; The

Necessity of Integrated Risk Management; Integrated Risk Management – Challenges; Integrated Risk

Management – Approach

Liquidity Risk Management

Liquidity Risk Management – Need & Importance; Potential Liquidity Risk Drivers; Types of Liquidity

Risk; Principles for Sound Liquidity Risk Management; Governance of Liquidity Risk Management;

Liquidity Risk Management Policy, Strategies and Practices; Management of Liquidity Risk; Ratios in

respect of Liquidity Risk Management; Stress Testing; Contingency Funding Plan; Overseas Operations

of the Indian Banks’ Branches and Subsidiaries and Branches of Foreign Banks in India; Broad Norms in

Respect Of Liquidity Management; Liquidity Across Currencies; Management Information System;

Reporting to the Reserve Bank of India; Internal Controls

Basel III Framework on Liquidity StandardsLiquidity Coverage Ratio; Liquidity Risk Monitoring Tools; Net Stable Funding Ratio
Module - C: Treasury Management
Introduction to Treasury Management

The Concept; Functions of Integrated Treasury; The Process of Globalisation; Evolving Role of Treasury

as Profit Centre; Organisation of Treasury

Treasury Products

Products of Foreign Exchange Markets; Money Market Products; Securities Market Products; Domestic

and Global Markets

International Equity and Debt Products

Regulatory Environment; Global Depository Receipts; Indian Depository Receipts; External Commercial

Borrowings; Trade Credits; Rupee Denominated Bonds

Funding and Regulatory AspectsReserve Assets: CRR and SLR; The Liquidity Adjustment Facility (LAF); Payment and Settlement Systems
Treasury Risk Management

Supervision and Control of Treasury; Market Risk and Credit Risk; Risk Measures: VaR and Duration; Use

of Derivatives in Risk Management

Derivative Products

Derivatives and the Treasury; OTC and Exchange Traded Products; Forwards, Options, Futures and

Swaps; Interest Rate and Currency Swaps; Developments in Indian Markets and RBI Guidelines on Risk


Treasury and Asset-Liability Management

Meaning of Asset-Liability Management (ALM), Liquidity Risk and Interest Rate Risk, Role of treasury in

ALM, Use of derivatives in ALM, Credit risks and Credit Derivatives, Transfer pricing, Policy Environment

Module - D: Balance Sheet Management 
Components of Assets and Liabilities in 
Bank’s Balance Sheet and their Management

Components of a Bank’s Balance Sheet; What is Asset Liability Management?; Significance of Asset

Liability Management; Purpose and Objectives of Asset Liability Management; ALM as Co-ordinated

Balance Sheet Management

Capital Adequacy – Basel Norms

Scope of Application; Pillar-1 – Minimum Capital Requirements; Pillar 2- Supervisory Review Process;

Pillar 3 – Market Discipline;

Asset Classification and Provisioning NormsAsset Classification; Provisioning Norms
Liquidity ManagementDefinition; Dimensions and Role of Liquidity Risk Management; Measuring and Managing Liquidity Risk
Interest Rate Risk Management

Essentials of Interest Rate Risk; Sources of Interest Rate Risk; Effects of Interest Rate Risk; Measurement

of Interest Rate Risk; Interest Rate Risk Measurement Techniques; Strategies for Controlling Interest

Rate Risk; Controls and Supervision of Interest Rate Risk Management; Sound Interest Rate Risk

Management Practices; RBI’s Draft Guidelines on Interest Rate Risk in Banking Book

RAROC and Profit PlanningProfit Planning; Risk Aggregation and Capital Allocation; Economic Capital and RAROC

Paper 3 - Advanced Business & Financial Management

Paper-3 consists of  four modules, these four modules are as follows:

  1. Module A- The Management Process
  2. Module B- Advanced Concept of Financial Management
  3. Module C- Valuation, Merger, and Acquisitions
  4. Module D- Emerging Business Solutions

The detailed syllabus of Paper-3 is given below in the table: 

Compulsory Paper - 3: Advanced Business & Financial Management
Module - A: The Management Process
Basics of Management

Definition of Management, The Management Process, Functions of Management, Importance of

Management, Management Thoughts & Approaches, Management Challenges & Opportunities,

Introduction to Strategic Management, Business Environment Analysis


Fundamentals of Planning, Steps in Planning, Importance of Planning, Advantages and disadvantages of

planning, Management by Objectives, Plan Components, Contingency planning, Forecasting & Decision



Introduction and Fundamentals of Organizing, Importance of Organisation, Stages in Organising

Process, The Organising Process, Principles of organizing, Types of Organisations, Organisation

structure, Organisation charts and manuals, The Organisation culture, Authority & Responsibility, Key

Issues in Organisation Structure, Organisational Change, Conflict Dynamics


Functions of Staffing, Objectives of staffing, Nature of staffing, Facets of staffing, Significance of staffing,

System approach to staffing, Recruitment, Selection, Training, Retention and development, Knowledge

and learning management,Performance Appraisal, Human Resource Development


Characteristics of directing, Importance of directing, Elements of directing, Leadership, Motivation,

Communication, Supervision


Basics of Controlling, Characteristics of controlling, Advantages of controlling, Limitations of controlling,

Types of control management, Control process, Relation between planning and control, Control

Techniques, Control technique and Information Technology

Module - B: Advanced Concept of Financial Management
Sources of Finance and Financial Strategies

Equity Capital, Internal Accruals, Preference Capital, Term Loans, Debentures, Alternative Financing

Strategies in the Context of Regulatory Requirements

Financial and Operating Leverages

Financial Leverage, Degree of Financial Leverage and its Behaviour, Operating Leverage, Degree of

Operating Leverage and its Behaviour, Combined or Total Leverage

Capital Investment Decisions

Objective of capital investment decisions, Estimation of project cash flows, Forecasting and its relation

to regulation of capital for short, medium and long term periods, Relationship between sales,

production and other functional budgets, Cash Forecasts, Cost analysis for projects, Methods of

Investment appraisal;Social Cost Benefit Analysis

Capital Budgeting for International Project Investment Decisions

Foreign Investment Analysis, Special Considerations-Foreign & Home Currency Cash Flows, Foreign

Currency Discount Rates Computation, International Portfolio Investment and Institutional Constraints,

Direct and Indirect Channels for International Portfolio Investment, Exchange and Country Risk, Return

and Risk of Foreign Investment, Capital asset pricing model, Arbitrage pricing theory; International

Capital Budgeting Issues involved in overseas projects, Approaches for evaluation of overseas projects,

Evaluation methods, , Impact of transfer pricing

Adjustment of Risk and Uncertainty in Capital Budgeting Decision

Sources & Perspectives on Risk, Sensitivity Analysis, Scenario Analysis, Hillier Model, Simulation

Analysis, Decision Tree Analysis, Corporate Risk Analysis, Managing Risk, Project Selection Under Risk,

Risk Analysis in Practice

Decision Making

Decision Making using Cost-Volume-Profit (CVP) Analysis, Decision Making using Relevant Cost

Concepts, Decision Making using Activity Based Costing, Ethical and Non-Financial Considerations

Relevant to Decision Making

Module - C: Valuation, Merger, and Acquisitions
Corporate Valuations

Approaches to Corporate Valuation, Adjusted Book Value Approach, Stock and Debt Approach, Direct

Comparison Approach, Discounted Cash Flow Approach, Steps involved in valuation using DCF


Discounted Cash Flow Valuation

Estimating Inputs, Approaches to Discounted Cash Flow Models, Various discounted Cash Flow Models,

Dividend Discount Model, Applicability of the Dividend Discount Model,

Other Non-DCF valuation models

Relative valuation model, Equity Valuation Multiples Model, , Enterprise value multiples Model,

Choosing the right multiples,

Book value approach Model, Stock and debt approach

Special cases of valuation

Intangibles –Brand, Human valuation etc., Real estate Firms, Start-up firms, Firms with negative or low

earnings, Financial Service companies, Distressed firms, Valuation of cash and cross holdings, Warrants

and convertibles, Cyclical & non-cyclical companies, Holding companies, E-commerce firms

Mergers, Acquisitions and Restructuring

Types of Transactions, Reasons for Merger, Mechanics of a Merger, Costs and Benefits of a Merger,

Exchange Ratio in a Merger, Purchase of a Division / Plant, Takeovers, Leveraged Buyouts, Acquisition

Financing, Business Alliances, Managing Acquisitions, Divestitures, Holding Company, Demergers

Deal structuring and financial strategies

Negotiations, Payment and legal considerations, Tax and accounting considerations, Tax reliefs and

benefits in case of Amalgamation in India, Financial reporting of business combinations, Deal Financing,

Financing of cross border acquisitions in India

Module - D: Emerging Business Solutions
Hybrid Finance

Advantages and disadvantages of Hybrid securities, Types of hybrid securities, Preference Share Capital,

Features of Warrants, Features of Convertible Debentures, Differences between Warrants and

Convertible debentures, Valuation of Warrants, Valuation of Compulsorily Convertible (Partly or fully)

Debentures, Objective of issuing Warrants and Convertible debentures, Features of Foreign Currency

Convertible Bond (FCCB), Mezzanine Financing, Innovative Hybrids

Start-up Finance

Benefits to startup under the Startup Plan, Startup definition in India, Challenges faced by Startups,

State Startup Policy, Pitch Presentation, Programmes and competitions for startups, Tax exemptions,

Funding, Investor’s outlook in Startups, Funding schemes and programmes, International challenges

and bridges

Private Equity and Venture Capital

Characteristics of Venture Capital Investments, Characteristics shared by Private Equity and Venture

Capital as well as their key distinctions, Financing options available through Venture Capital, Investment

in Private equity, Benefits obtained through private equity, Drawbacks to the practice of private equity,

, Due diligence, Exit Strategies

Artificial Intelligence

History of Artificial Intelligence, Applicability of Artificial Intelligence, Artificial Intelligence in Banking

and Finance, The future scope of Artificial Intelligence, Neural Networks, Control Theory and

Cybernetics, Rational Agents, Motion and Manipulation, Tools and Techniques of Artificial Intelligence,

Artificial Intelligence and Morality

Business Analytics as Management Tool

Essentials of Business analytics, Types of Analytics, Elements of Business Analytics, Big Data Analytics,

Web and Mobile Analytics, Comparing web Vs Mobile Analytics, Importance of Business Analytics

Green and Sustainable Financing

ISO Standards for Green Finance, Building Green Finance, International Best Practices towards Green

Finance, Public Policy in India, Progress of Green Finance in India, Challenges and way forward, Growth

of Regulatory Framework, National Efforts towards Green and Sustainable Financing, RBI Views on

Climate Risk and Sustainable Finance

Special Purpose Acquisition Company

Advantages of SPAC, Disadvantages of SPAC, SPAC Formation and Timelines, The SPAC Merger,

Stakeholders, Characteristics of SPACs, Process, SPAC Capital Structure, Trust Account, Warrants,

Forward Purchase, IPO Agreements, De-SPAC Process

Elective Paper 1  - Rural Banking

Elective paper-1 consists of  four modules, these four modules are as follows:

  1. Module A- A Rural India
  2. Module B- Financing Rural Development
  3. Module C- Priority Sector Financing and Government initiatives
  4. Module D- Problems and prospects in Rural Banking

The detailed syllabus of Elective paper-1 is given below in the table: 

Elective Paper - 1: Rural Banking
Module - A: Rural India
Demographic feature
  1. Population, occupation, literacy, socio-economic development indicators
  2. Health, nutrition, and education, - urban migration.
Characteristics of Rural Society
  1. Caste and power structure - rural social stratification, Economic Features
  2. The economic life of rural people, share in National income
  3. Trends in per capita income, rural money markets, rural indebtedness, rural poverty
  4. Main causes and methods of measuring rural poverty.
Rural infrastructure
  1. Transport, Power, Markets and other services. Agriculture Economy
  2. Structure and characteristics of Indian agriculture, Role of agriculture in economic development, agriculture
  3. Industry linkages, Resources and technical changes in agriculture, constraints to agriculture development, Emerging issues in
  4. Indian Agriculture. Rural Development Policy: Govt. policies and programs for rural farm and non-farm sectors
  5. Economic reforms and their impact on the rural economy.
Rural Issues
  1. Development issues, Management Issues, Marketing issues, Pricing issues
Module - B: Financing Rural Development
Regulation of Rural Financial Services
  1. Function and policies of RBI in Rural Banking, NABARD Main functions
  2. The role, refinance support. Lead bank approach
  3. State-level and District Level Credit committees
Rural Credit Institutions
  1. Co-operative Credit Societies and Banks, Land Development Banks, Regional Rural Banks, Commercial Banks
  2. Role of Information and communication technologies in rural Banking-Models
  3. Financial inclusion & inclusive growth for rural development banking
  4. Rural insurance micro-insurance scheme, the concept of Business Facilitators and Business Correspondents in rural financing
Financing agriculture/ allied activities
  1. Crop Loans Assessment, Sanction, Disbursement, replacement
  2. Term loans for irrigation, farm mechanization, Godowns/ cold-storage facilities, etc
  3. Financing allied agriculture activities like Horticulture, Fisheries, Social forestry, etc
  4. Finance against Warehouse/ cold storage receipts
Financing Rural Non-Farm Sector (RNFS)
  1. Importance of RNFS, Segments in RNFS
  2. Role of Development and Promotional Institutions in RNFS
SME Finance
  1. Definition of SME. Importance to the Indian economy
  2. Financing of SME and small enterprise Refinance from SIDBI
  3. Project funding techniques and requirement assessment
  4. Cluster-based approach and joint finance with SIDBI
  5. MSMED Act 2006, CGTMSE, Working capital assessment of SMEs
  6. Risk rating of SME proposals, the role of rating agencies, and rating methodology
  7. Revival of sick units; revival package and implementation, Stressed assets under rehabilitation
  8. Debt restructuring mechanism for SMEs.
Module - C: Priority Sector Financing and Government Initiatives
  1. Components of priority sector
  2. RBI guidelines.
Government initiatives
  1. Poverty alleviation programs/ Employment programs/ Production oriented programs-rationale and philosophy, progress and impact, problems and deficiencies
  2. Rural housing and Urban housing schemes under priority sector, they’re equity refinance, Educational loans
Module - D: Problems and prospects in Rural Banking
Role of rural banking
  1. Problems of Rural branches of Commercial banks - transaction costs and risk costs. Technology-based Financial Inclusion.
  2. Emerging trends in rural banking-financing poor as a bankable opportunity, Micro Credit, Self Help Groups/ NGOs, linkages with banking, latest guidelines of GOI and RBI.

Elective Paper 2  - International Banking

Elective paper-2 consists of  four modules, these four modules are as follows:

  1. Module A-  International Banking and Finance
  2. Module B-  Foreign Exchange Business
  3. Module C-  International Trade
  4. Module D-  Derivatives

The detailed syllabus of Elective paper-2 is given below in the table: 

Elective Paper - 2: International Banking
Module - A: International Banking and Finance
International Banking
  1. Global Trends and Developments in International Banking
  2. International Financial Centres, Offshore Banking Units, SEZs
  3. Profitability of International Banking operations
  4. Correspondent Banking and inter - Bank Banking
  5. Investment Banking, Wholesale Banking, Retail Banking, Merchant Banking
  6. International Financial Institutions: IMF, IBRD, BIS, IFC, ADB
  7. Legal and regulatory aspects
  8. Risk Management
International Finance 
  1. Fundamental Principles of Lending to MNCs, documentation, and Monitoring
  2. International Credit Policy Agencies and Global Capital Markets
  3. Raising resources: Availability features and risks of various Equity and debt products like ECBs, ADRs, ECCBs and other types of Bonds, etc., Syndication of loans
  4. Project and Infrastructure Finance: Investments both in India (FII & FDI) and abroad, Joint ventures abroad by Indian Corporates. Investment opportunities abroad for resident Indians.
  5. Financing of mergers and acquisitions
Module - B: Foreign Exchange Business
  1. Foreign Exchange Management Act (FEMA) and its philosophy
  2. Different types of Exchange Rates
  3. RBI and FEDAI: their role in regulating Foreign Exchange Business of Banks/ other Authorized Dealers.
  4. Rules regarding rate structure, cover operations, dealing room activities, and risk management principles, including correspondent Bank arrangements.
  5. NRI customers and various banking and investment products available to them under FEMA.
  6. Remittance facilities
Module - C: International Trade
Regulations covering international trade
  1. Various Aspects of International Trade, Government policies, DGFT and their schemes, Customs procedures, Banks' role in implementing these policies and schemes
  2. WTO - its impact
  3. Balance of payment, the balance of trade, Current account, and capital account convertibility.
  4. Documents used in Trade: bill of exchange, invoice, Bill of lading, Airways bill, Insurance policy, etc
  5. Role of Banks in Foreign Trade
  6. Letters of credit; importance in international trade, various types of LCs, settlement of disputes, UCP 600, INCOTERMS.
  7. Exchange control relating to foreign trade. Returns required to be submitted to RBI
Import/ Export Finance
  1. Laws governing trade finance i.e. FEMA, NI Act, Indian Stamp Act, EXIM policy, RBI/ FEDAI guideline
  2. Role of Banks, including EXIM Bank, in financing Foreign Trade, various facilities to Exporters and importers including project finance, Forfaiting, and Factoring
  3. Risks involved in foreign trade finance: Country risk, Currency risk, Exchange risk, legal risk, etc., Role of ECGC.
Module - D: Derivatives
  1. Treasury operations of banks and corporates
  2. Derivatives as hedging instruments, types of instruments available in the Indian Market.
  3. RBI rules and guidelines regarding derivatives
  4. Mathematics of derivative valuation and pricing
  5. Risk assessment of derivatives, Lessons from the recent crisis in the derivatives market.

Elective Paper 3  - Information Technology

Elective paper-3 consists of  four modules, these four modules are as follows:

  1. Module A- Introduction to Information Technology
  2. Module B- Systems and Design
  3. Module C- Applications in Banking
  4. Module D- Security, Controls, and Guidelines

The detailed syllabus of the Elective paper-3 is given below in the table: 

Elective Paper - 3: Information Technology
Module - A: Introduction to Information Technology
Impact of IT on Banking
  1. Changing Financial Environment and IT as a Strategic Response Hardware (H/ W)
  2. Software: (S/ W)
System Software
  1. Operating Systems (Desktop OS/ Server OS) Windows (Desktop/ Server)/ UNIX (H. P. Unix, Sun Solaris, Linux, IBM AIX)
Computer Languages
  1. 1st Generation Languages (Assembly), 2nd Generation (FORTRAN, ALGOL, COBOL)
  2. 3rd Generation (C, C++, C# and JAVA, etc.) and 4th Generation Languages (Clipper, Power Builder, SQL, etc.) and 5th Generation Languages (Logic Programming Languages)
  3. Database Management System and Relational Database Management Systems (Oracle10g, MS SQL-2005, MySQL) Application Servers (Oracle 10AS, BeWeblogic, WebShare ) Web Servers (IIS, Apache, etc.)
  4. Web Browsers (IE 7.0, Firefox, etc.)
Application Software
  1. Packaged Software, Custom-built Software, etc. Computer Networks
  2. Equipment & Data Communication
Computer Networks
  1. Network Layers, Topologies, Protocols, IP Address Mechanisms, LAN, WAN, VLAN
  2. Intranet, Extranet, Internet, Network Equipment: Cables (BNC, Twisted Pair, Fibre Optics)
  3. Connectors, I/Os, Patch Panel, Jack Panels, Network Racks.
Module - B: Systems and Design
Systems and Design
  1. Systems Design & Analysis Data modeling, Entity Relationships, Generic Data Modeling
  2. Semantic Data Modeling Normalization (from 1st to 3rd and BCNF, 4th & 5th level of normalization) Software Development Life Cycle (SDLC)
  3. Various phases of SDLC, In-house/ Out-sourcing, Software Project Management, Computer-Aided Software Engineering (CASE) Tools.
  4. System Architecture: Clients (Hardware/ Software), Servers (Hardware/ Software)
  5. Client-Server Architecture, 3 Tier Architecture, N-Tier Architecture, etc.
  6. Data Warehousing - Data Mining tools
MIS and Organization Support Systems
  1. DSS, EIS, GDSS, Groupware, and Multimedia Business Intelligence
  2. Expert Systems, Artificial Neural Networks (ANN) Grid Computing, Virtualization and Consolidation
Module - C: Applications in Banking
Applications in Banking
  1. Centralized Banking System/ Core Banking System/ System Administration, Database Administration
  2. Application Server and Application Administration, Network Administration, Domains, ISPS, Hosting, Data Downloads/ Uploads
  3. Bandwidths, Data Centre, Data Storage Devices, Data Backups/ Restoration
  4. Disaster Recovery Centre Delivery Channels - ATM, EFTPOS, Phone Banking, Internet Banking, SMS Banking
  5. Mobile Banking, Credit/ Debit Cards, Smart Cards E-Mails, SMS alerts
  1. Secure Electronic Transfer (SET), Payment Gateways (Credit card/ Debit cards), Authentication of payments, etc.
  2. PKI - CCA, CA, RA, Digital Certificate, Digital Signature, Non-repudiation of Origin, Nonrepudiation of Receipt
  3. Service - Level Agreement
Module - D: Security, Controls, and Guidelines
Threats to Information System
  1. Physical (Insiders/ outsiders) ii) Viruses, Worms, Trojan horse, Malware, Software bombs, Phishing, Spoofing, Spamming, denial of service attacks, etc
  2. Information System Security Measures, Policy, controls, ISO, 17799, BS7799, IS4477, IS Audit, BCP/ DRP, IT Act 2000
  3. Basel guidelines for E-banking, Various RBI Committee Reports on Information Systems.
IT Service Delivery & Support
  1. Service level management practices, Operations management - workload scheduling, network services management
  2. Preventive maintenance, Systems performance monitoring process tools, techniques, Functionality of hardware, software, database.
  3. Drafting of RFP, system specifications, SLAs, Capacity planning & monitoring
  4. Change management processes/ scheduled, emergency in the configuration of production systems, application of patches, releases, etc.
  5. Incident & problem management practices, System resiliency tools, and techniques - fault tolerance, elimination of single point of failure, clustering.

Elective Paper 4  - Risk Management 

Elective paper-4 consists of  five modules, these five modules are as follows:

  1. Module A- An overview
  2. Module B- Credit Risk Management
  3. Module C- Operational Risk
  4. Module D- Market risk
  5. Module E- Risk Organization and Policy

The detailed syllabus of the Elective paper-4 is given below in the table: 

Elective Paper - 4: Risk Management
Module - A: An overview
Risk definition/ policies
  1. Risk Process-Risk Organization
  2. Key risks - Credit risk, market risk, operational risk, liquidity risk, legal risk, interest rate risk, and currency risk
Asset Liability Management 
  1. ALM Concept
  2. ALM organization
  3. ALCO techniques/ tools
  4. Simulation, Gap, Duration analysis, Linear and other statistical methods of control
Risk measurement & Control 
  1. Calculation
  2. Risk exposure analysis
  3. Risk management/ mitigation policy
  4. Risk immunization policy/ strategy for fixing exposure limits
  5. Risk management policy and procedure
  6. Risk-adjusted return on capital
  7. Capital adequacy norms
Risk management
  1. Capital adequacy norms
  2. Prudential norms
  3. Exposure norms
  4. Concept of Mid office
  5. Forwards
  6. Futures
  7. Options
  8. Strategies and Arbitrage opportunities
  9. Regulatory prescriptions of risk management
Module - B: Credit Risk Management
Credit Risk Management
  1. Introduction
  2. Basel Norms
  3. Three pillars of Basel and Capital for Operational risk
  4. Framework 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 - an 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
Operational Risk
  1. Introduction, Basel Norms
  2. RBI guidelines
  3. Likely forms of operational risk and causes for a significant increase in operational risk
  4. Sound Principles of Operational Risk Management (SPOR)
  5. SPOR - organizational setup 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
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
Treatment of market risk under Basel
  1. Standardized duration method
  2. Internal measurement approach - VaR
Module - E: Risk Organization and Policy
Risk Organization and Policy
  1. Risk Management Policy
  2. Inter - linkages to - Treasury
  3. Credit
  4. ALCO

Elective Paper 5  - Central Banking

Elective paper-1 consists of  four modules, these four modules are as follows:

  1. Module A-  Rationale and Functions of Central Bank
  2. Module B-  Central banking in India
  3. Module C-  Monetary Policy and Credit Policy
  4. Module D-  Supervision and Financial Stability

The detailed syllabus of Elective paper-1 is given below in the table: 

Elective Paper - 1: Central Banking
Module - A: Rationale and Functions of Central Bank
Evolution and Functions of Central Banking
  1. Evolutions of Theory and Practice of Central Banking
  2. Development of Central Banks in Developed and Developing countries.
Functions of a Central Bank
  1. Banker to Government, Banker to Banks, Monetary policy Functions
  2. Currency Issue and Management, Payment system function
  3. Maintaining internal and External values of currency, Regulation
  4. Facilitation and supervision of Financial System
  5. Promotional Functions to support growth and other National objectives
  6. Development of Financial Markets, Institutions, and communication policies.
Contemporary Issues
  1. Desirability, Autonomy and independence, Credibility
  2. Accountability and transparency of a Central Bank
  3. Conflict with fiscal policies.
Module - B: Central banking in India
Reserve Bank of India
  1. Organizational evolution, Constitution and Governance
  2. Major organizational and Functional Developments over time
  3. Recent Developments, RBI Act.
India Specific Issues: 
  1. Banking Regulation Act, FEMA, Banking Ombudsman Scheme
  2. Financial Sector reforms
  3. Other financial regulators and division of functions. Institutions set up by RBI
  5. Glossary of Central Banking Terms.
Module - C: Monetary Policy and Credit Policy
Monetary Policy
  1. Objectives, Reconciling dual objectives
  2. The Taylor Rule, Indicators of Policy, instruments of policy (Bank Rate, OMO, CRR, SLR, etc.)
  3. Policy Transmission mechanism and channels, transparency of policies
  4. Lags in the policy.
Credit Policy
  1. Objectives, Theory, and Practice, Instruments.
An overview of Fiscal Policy
  1. Importance of Budgets, Union Budget, State Budget, Finances of Union and State Governments, Finance Commission.
  2. Striking balance between inflation and growth through monetary and fiscal policies.
Module - D: Supervision and Financial Stability
Indian Financial System
  1. Constituents of Indian Financial Markets and their Regulation
  2. Evolution of Bank Regulation and supervision
Financial Stability
  1. Financial Development Vs Financial stability
  2. Risks to Financial stability, Early warning signals, and remedial action
  3. Liquidity Management, Regulation, and Supervision of Banks
  4. Risk Management in Banks
  5. The Basel Norms, Prudential Norms, Effect of liberalization and Globalization on Financial Stability
  6. Linkage to International Financial Stability
  7. International standards and codes
  8. Role of Supervisor under Basel Norms.

Click to Download CAIIB Syllabus PDF [Revised]

CAIIB Syllabus 2024: FAQs

Ans. No, there is no negative marking in the CAIIB exam.

Ans. As per revised syllabus, There will be five subjects in the CAIIB exam. In which four subjects are compulsory and one subject is elective.

Ans. Indian Institute of Banking and Finance conducts the CAIIB exam twice a year.

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