Fixed Income Securities (Valuation, Risk and Risk Management)
– Dr Kedar nath Mukherjee
This Monograph is designed to provide the Readers a reasonable understanding about the Fixed Income Securities market. There may be several books written by eminent international authors on this subject, may be for different levels of readers. But while dealing with this subject at National Institute of Bank Management, especially during the Management Development Programmes of the institute, I felt a true need for a concise reading material in this subject, especially for the beginners who largely interested in knowing the subject in Indian context.
The monograph is divided into several chapters broadly covering the nature of fixed income security market in India, different types of instruments available, different analytical aspects of bonds (e.g. pricing and valuation, yield and return measures, term structure of interest rates, interest rate sensitivity measures, etc.), various interest rate and credit derivatives products (e.g. Forward Rate Agreements, Interest Rate Swaps, Interest Rate Futures, and Credit Default Swaps) available in Indian market, various strategies to manage bond portfolio, and finally risk management for fixed income securities. The coverage of this monograph is set keeping in mind the important aspects of the subject and also the depth of the topics required for beginners to gain expertise in this area in a simple and concise form. This monograph will be helpful for Practitioners in Banks and other Financial Institutions, Regulators, Academics, Students of Finance and Business Management.
Monograph: 2014 – Royal Octavo – vii+143 pp – card cover
Price: Inland: Rs. 500.00 (Postal Charges Extra)
Price: Inland: Rs. 500.00 (Postal Charges Extra)
Financing Infrastructure Projects by Indian Banks
– Dr Vikas Srivastava
Multifaceted risks are involved in bank funding of infrastructure. Apart from asset-liability mismatches – leading to liquidity and interest rate risks, banks face regulatory and political uncertainty associated with these projects. For example, delays on account of land acquisition, environmental clearances, lack of firm power purchase agreement, delays in fuel availability and equipment supply, and issues regarding termination payments in road sector are yet to be addressed completely.
Most of the lending takes place through Project Finance. In the absence of recourse to sponsors, risks in Project Finance are a matter of heavy negotiation and trade-off. Risks can no longer be allocated to "the party best able to bear it" but must be negotiated, mitigated and priced in such a manner that it cannot rebound to the financing banks. This is all the more critical since all debt parties earn a nearly fixed return for taking essentially all project risks post-completion.
Do we have a sufficient pool of skill set in the banking system who recognize that the nature of underlying asset has changed and therefore it requires a different approach to funding (project finance) which deviates from traditional corporate finance in terms of structure and risk sharing. A lack of straightforward answer to some of these questions is itself quite disconcerting. Looking at the knowledge gaps in this field, the monograph focuses on elaborating and describing the contractual, legal and structural issues in the appraisal of infrastructure projects, so as to formulate effective strategies for risk sharing, allocation and mitigation.
Monograph: 2011 – Royal Octavo – vi+50 pp – card cover
Price: Inland: Rs. 300.00 Foreign: US $ 30.00 (Postal Charges Extra)
Linear Financial Derivatives (Equity and Forex)
– Tasneem Chherawala
The Monograph on Linear Financial Derivatives, published by NIBM, is motivated by the course on Financial Derivatives that I was asked to teach to the PGPBF 2008-09 batch of students at National Institute of Bank Management. The Monograph explains the mechanics of basic linear derivative products like Forwards, Futures and Swaps, and their applications. It describes the framework for pricing these products and explains the risks and returns of these products. To make the discussion more meaningful and relevant to the Indian context, it largely describes examples pertaining to the Indian markets.
Monograph : 2009 - Royal Octavo - vii + 87 pp - card cover
Price : Inland : Rs.500.00 Foreign : US $ 50.00 (Postal Charges Extra)
Price : Inland : Rs.500.00 Foreign : US $ 50.00 (Postal Charges Extra)
A Study of Residential Housing Demand in India
– Arindam Bandyopadhyay, S V Kuvalekar, Sanjay Basu, Shilpa Baid & Asish Saha
The empirical research on housing market in India is scarce due to the paucity of information. The monograph on “A Study of Residential Housing Demand in India” is the outcome of a Study conducted by the National Institute of Bank Management (NIBM) for National Housing Bank (NHB) and partially addresses advice of Reserve Bank of India to NHB on studying the housing and real estate sector. This study provides exhaustive empirical research and detailed analysis (both micro and macro level) of current status and future growth potential of housing industry in India, its backward and forward linkages, financing structure and nature of underlying risk.
Broadly, the study analyzes the following key issues:
- Nature of the residential housing demand at present based on ownership vs. rental (individual and corporate), gender-wise, age-wise, education-wise, profession-wise, income class-wise break-up (i.e. based on the purchasing power), etc. and estimation of current demand for housing.
- Correlation of projected housing demand with other economic factors such as induced demand for cement, steel (backward linkage), employment benefits, etc. so that the multiplier effect of housing can be estimated at the national level. Other relevant correlations such as with other assets say car, two-wheeler, TV (for low income group) are also considered.
- Factors reckoned at the time of purchase of houses and nature of their financing.
- Based on published data on demographics, household expenditure, etc., projection of housing demand for the next 5 years using econometric models.
- Broad profile and trends in the projected demand for housing using time series forecasting techniques.
- Identification of emerging trends in housing and housing finance.
- The study also includes correlating the existing profile of housing loan borrowers of select banks and HFCs to understand the correlation between borrower characteristics and loan parameters such as asset quality, delinquencies, period of loans, collateral values, etc. We also examine the link between loan delinquency and value of collateral to further pinpoint the importance of valuation in the housing sector.
- Study specifically looks at the issues regarding collateral of the housing loan portfolio including their value, based on data collected from few banks and HFC
Suggestions for the Development of Housing Loan Mortgage market.
Monograph : 2008 – Royal Octavo – 134 pp – card cover
A Note on Measurement and Management of Credit Risk under Basel II
– Dr. Arindam Bandyopadhyay (Ph.D, M.Phil, M.Sc.)
Written in a lucid language, the monograph discusses relevant issues regarding tools to measure and manage credit risk in the banking sector especially in the Indian context. It portrays relevant issues in the credit risk developments in India and guides the banking sector for eventual migration to the sophisticated tools for assessing, monitoring and controlling risks in their credit portfolio. It talks about the Basel II implementation challenges in banks and provides a road map to improve risk management culture in banks.
The monograph is divided into following six comprehensive segments :
Various Credit Rating Models and many methods for Estimation of PD Validation and Calibration of Rating Models Quantification of EAD and LGD Portfolio Approach of Measuring Economic Capital Risk Adjusted Performance Measurement Framework (RAPM) and Risk Based Profitability Analysis (RAROC) based lending strategy and capital allocation evolution of Basel II and implementation plan for Indian banks including estimation of IRB regulatory capital estimation and explanation of formulas. This monograph also addresses some other crucial aspects relevant for Indian banks like :
Minimum requirements for IRB approach and conformity of NIBM's credit rating models implications of Basel II on the Indian banking sector and Stress Testing of Credit Risk. The topics covered in the monograph are unique and first of its kind in India. This monograph would help the academicians/practitioners/risk managers/top executives alike in banks to understand the nuances of credit risk management including modern tools in identifying, evaluating credit risk and its implications on profits and business strategies.
Monograph : 2007 – Royal Octavo – 111 pp – card cover
Price : Inland. 500.00 Foreign : US $ 50.00 (Postal Charges Extra)
Monograph on Emerging Money Market in India : Instruments, Participants and Regulatory Framework
– S V Kuvalekar
Monograph : 2007 – Royal Octavo – 46 pp – card cover
Price : Inland : Rs. 200.00 Foreign : US $ 20.00 (Postal Charges Extra)
Analysis and Interpretation of Balance Sheets (Revised in 1996)
– J D Mohile
Balance sheets are studied by different persons with different ends in view. A banker studies balance sheet of a business organization while considering a loan proposal. His main concern therefore is to find out, as far as he can, whether : (a) the organization is financially sound and stable, i.e. solvent, (b) its liquidity is satisfactory, (c) its profitability or earning capacity is upto the required standard, and (d) it is well managed.
An attempt has, therefore, been made in this programme to indicate how the balance sheets and other financial statements can guide in forming one's judgement in respect of the above aspects of an organization. It may however be mentioned that "analysis and interpretation of balance sheets" is only a tool for taking judicious decision on loan proposals and one must not lose sight of the other basic principles of lending while considering a loan proposal.
This book, inspired by the ILO's Programmed Learning Text on how to read a balance sheet, was first published in 1972, and reprinted twice. This is the first revised edition incorporating all changes since then.
A complete job analysis of the procedure of screening balance sheets as prevailing in commercial banks has been done prior to revision of this text. A Post-Text to test oneself and Key to Post-Test to check whether one has learnt have been provided in the text.
Revised Edition : Reprint : 2017 – demy – xiv + 212 pp – Card Cover
Price : Inland : Rs. 750.00 Foreign : US $ 60.00 (Postal Charges Extra)
Bankers' Credit Decisions
– Sampat P Singh
The book is made up of two parts. Part one contains six chapters dealing with Credit Decisions, Working Capital Management, Norms of Lending, Loans versus Cash Credit System, Tools for Financial Analysis and the Case Method. These concepts have to be understood and then applied in the analysis of the cases. Part two is comprised of ten cases. The first nine cases are built around three types of conflicts : Bankers' interest versus borrowers' interest; credit need versus credit risk; and the business mode versus the bureaucratic mode. The last case is focussed on loan pricing and decision based on customer profitability analysis.
Financial analysis has oftentimes been viewed as an alternate to judgement and pragmatism. Bankers' decision has also been mistaken as a binary choice between yes and no resulting in the neglect of behavioural aspect of the decision process. This book attempts a more balanced approach. With improved educational profile of new generation bankers, growth of foreign and private sector banks, and greater autonomy to public sector banks, it is hoped that a more balanced and more efficient approach to credit decision will be adopted by the banks. This book provides the necessary academic support.
Fourth Reprint : 2018 – demy – xiii + 237 pp – card cover
Price : Inland : Rs. 800.00 Foreign : US $ 50.00 (Postal Charges Extra)
Financing of Agri-Business : A Technical Manual
– Dr N B Shete
India is blessed with diverse agro-climatic conditions which are conducive to grow different crops round the year. No other country grows such a wide range of foodgrains, plantation crops, fruits, vegetables, flowers, etc., in such abundance as India. Because of our strength in agricultural sector, India can easily wrest a commanding position in developing and extending worldwide benefits of bio-technological software comprising highly promising and at the same time, relatively inexpensive vermiculture, bio-fertilizers, bio-pesticides, tissue cultured propagated plants of fruits, vegetables, flowers, etc.
With liberalization, Indian agriculture has made forays into commercial and hi-tech agriculture, high-value crops, etc., both for domestic and export markets, which require higher amount of credit. A large number of corporate borrowers, technocrats, new generation entrepreneurs, etc., are venturing into this arena on a large scale. On the other hand, there is a need for systematic diversification of the lending activities of the banks and financial institutions in the priority sector. The credit policy pursued during the post-reform period has lent momentum to the agricultural sector, particularly for a fuller exploitation of the potential of bio-technology.
For banks and financial institutions, agri-business is a promising sector growing at 25 per cent per annum. The agri-business ventures require specific finance allocation as the credit flow to this sector needs to be strengthened. Commercial banks can take advantage by establishing permanent technical and scientific advisory groups to deal broadly with the goal of financing agri-business projects as new areas are emerging every day.
This manual is concerned with the technical aspects of some of the agri-business projects, covering bio-technology, tissue culture, floriculture, mushroom cultivation, aquaculture, greenhouse cultivation, horticulture and agro-processing and is intended to add to the bankers' knowledge and experiences in financing some of the more viable projects.
Second Reprint : 2003 – royal octavo – xx + 450 pp – card cover
Price : Inland : Rs. 500.00 Foreign : US $ 25.00 (Postal Charges Extra)
- Compendium of Published Papers & Articles, Conference Presentations and Working Papers – 2008-09 - NIBM Faculty Price : Inland : Rs. 500.00 Foreign : US $ 50.00 (Postal Charges Extra)
- Compendium of Published Papers & Articles, Conference Presentations and Working Papers – 2007-08 - NIBM Faculty Price : Inland : Rs. 400.00 Foreign : US $ 40.00 (Postal Charges Extra)
- Compendium of Published Papers & Articles, Conference presentations, and Working Papers – 2006 – NIBM Faculty, (2007), Rs. 500
- Women and Banking – K Dinker Rao, R Dasgupta & K U Umakrishnan, (2005), Rs. 75
- Management of NPAs in Priority Sector Credit of Banks – N B Shete, (2004), Rs. 100
- Exemplary Implementation of Citizen's Charter in Punjab National Bank, Oriental Bank of Commerce and Punjab & Sind Bank – Kalyan Swarup & A U Gadewar, (2003), Rs. 150
- Preparation of An Index of Services Production – Tarun Das, Rajaram Dasgupta, Rohit Kumar Parmar & Asish Saha (eds.), (2003), Rs. 350
- Innovative Approach of Oriental Bank of Commerce to Microfinance – K Dinker Rao, R Dasgupta & D P Khankhoje, (2002), Rs. 200
- Taking Banking to the People : NIBM's Role – K Dinker Rao, (2002), Rs. 300
- Human Resource Management in Banks : Contemporary Issues – Jacob Mankidy (Reprint) (2000), Rs. 150
- Bancassurance in India – eds S M Padwal & R K Parchure, (2000), Rs. 250
- Strategies for Integrating Women Managers – Aruna Mankidy, (2000), Rs. 250
- Essays on International finance : The Indian Perspective – Sukumar Nandi, (1997), Rs. 200
- Banks' Contribution Towards the Upliftment of Scheduled Castes and Tribes – K V Patel, V S Kaveri & D P Khankhoje, (1997), Rs. 200
- International Monetary Banking, Trade Systems and Economic Development – ed M Thomas Paul, (1992), Rs. 350
- Money and Securities Markets : Emerging Challenges – ed O P Chawla, (1990), Rs. 90
- Banking Industry in the 1990s – ed B K Ghosh, (1990), Rs. 120
- Multiple Unionism in Banks – N C Khandekar, (1987), Rs. 75
- Evaluation of Training – M V Bhatawdekar, (1986), Rs. 40
Special Issues of Journals
- Future of Central Banking, Prajnan (Vol. XXXV, No. 2), Rs. 60
- Banking in the New Millennium, Prajnan (Vol. XXVIII, No. 4), Rs. 60
- Transformation in Banking and Finance, Vinimaya (Vol. XV, No. 4), Rs. 50
- Technology Banking, Vinimaya (Vol. XVII, No. 3), Rs. 50