CAIIB Exam is conducted by the Indian Institute of Banking & Finance twice a year. CAIIB is generally held in June & December, i.e. after every six months. This exam boosts the career of the bankers in terms of growth, opportunities and salary. CAIIB certification provides advanced knowledge in better decision-making in Treasury management, Risk management, Balance sheet management, Credit Management, International Banking, Economic Analysis, etc. CAIIB consists of two compulsory papers and one optional paper. CAIIB Syllabus is very elaborative. We are giving you a module-wise distribution of every paper according to the IIFB approved syllabus.
CAIIB Syllabus
CAIIB Exam Pattern Overview
| Exam Name | CAIIB |
|---|
| Recruiting Body | IIBF (Indian Institute Of Banking & Finance) |
| Frequency Of The Exam | Twice A Year- June & December |
| Number Of Papers | 3 (2 Compulsory & 1 Elective Paper) |
| Number Of Attempts To Pass | 4 Consecutive Attempts (2 Years) |
| Negative Marking | No |
| Medium Of Instruction | English & Hindi |
| Passing Conditions | 1. Minimum Of 50 Marks Per Paper
2. A 50% Aggregate With A Minimum Of 45 Marks In Each Paper In A Single Attempt |
| Time Duration | 2 Hours For Each Paper |
CAIIB Exam Pattern
| Paper | Type | Number Of Questions | Marks | Time Duration |
|---|
| Advanced Bank Management | Compulsory | 100 | 100 | 2 Hours |
| Bank Financial Management | Compulsory | 100 | 100 | 2 Hours |
| Elective Paper | To Be Chosen From 11 Optional Subjects | 100 | 100 | 2 Hours |
The CAIIB Syllabus is designed so that it informs the candidate on better decision making on financial, risk and general bank management. The syllabus is very extensive, and each paper is divided into several modules. The Candidate can also download the CAIIB Syllabus pdf from the official website of IIBF (Indian Institute of Banking & Finance).
The detailed (module-wise) CAIIB Syllabus is mentioned below. Please check.
CAIIB Syllabus – Compulsory Papers :
CAIIB Syllabus For Compulsory Paper 1- Advanced Bank Management
| Module | Name | Topics |
|---|
| 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 | Buisness 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 | Human Resource Management 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 counselling, employee behaviour, 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 Compulsory Paper 2- Bank Financial Management
| Module | Name | Details |
|---|
| 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, the 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 andControl – 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, Counterparty 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 Securitization and Forfaiting; refinance and rediscounting facilities. Derivatives – Credit Default Swaps/ Options. |
| Module D | Balance Sheet Management | Prudential norms – Capital Adequacy. Implementation of ‘Basel Norm's 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 – FundingLiquidity – 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 Syllabus– Elective Papers
The candidate can choose any one of these 11 subject options as their Elective Paper.
| Optional Subjects | Module A | Module B | Module C | Module D | Module E |
|---|
| Central Banking | Rationale & Functions Of Central Bank | Central Banking In India | Monetary Policy & Credit Policy | Supervision & Financial Stability | – |
| International Banking | International Banking And Finance | Foreign Exchange Business | International Trade | Derivatives | – |
| Rural Banking | Rural India | Financial Rural Development | Priority Sector Financing & Government Initiatives | Problems And Prospects In Rural Banking | – |
| Financial Advising | Introduction Of Financial Advising | Financial Planning | Financial Investment Products | Taxation | – |
| Corporate Banking | Corporate Banking & Finance | Investment Banking | Project & Infrastructure Finance | – | – |
| Retail Banking | Introduction | Retail Products | Marketing/ Selling Of Products, Mis/Accounting | Other Issues Related To Retail Banking | – |
| Co-Operative Banking | Principles & Laws Of Co-Operative Banking And Rule Related To Co-Op Banks | Co-Operative Banking Operations | Technology And Risk Management | – | – |
| Human Resources Management | Human Resources Management | Building An Hr Strategy | Motivation, Training And Skill Development | Personnel Management And Industrial Relations | – |
| Information Technology | Introduction To Information Technology | Systems & Designs | Applications In Banking | Security, Controls And Guidelines | – |
| Treasury Management | Overview Of Treasury Management | Treasury Operations | Treasury And International Banking | Risk Management | – |
| Risk Management | Introduction Of Risk Management | Credit Risk Management | Operational Risks | Market Risk | Risk Organization And Policy |
FREQUENTLY ASKED QUESTIONS
1. Which books are best to prepare for the CAIIB Syllabus?
You can go for books by Macmillan Publishers to prepare for CAIIB Syllabus.
2. Can we change the optional subject in CAIIB?
The optional subject is chosen by the candidate while applying for the CAIIB exam. The option, once selected, cannot be changed during the duration of four attempts.
3. From how many options can I choose my elective/ optional paper?
You can choose your optional paper from 11 optional subjects.
4. Why is the CAIIB Syllabus is so extensive?
To be a certified member of IIBF with better propositions in your career, you need to have extensive knowledge provided by the CAIIB Syllabus. The CAIIB Exam tests this knowledge to accredit you.
Discuss Forum
Mock Tests
Category
