Commercial Banking Management Course | Risk, ALM, Lending | IIT Kharagpur
Course Details
| Exam Registration | 314 |
|---|---|
| Course Status | Ongoing |
| Course Type | Elective |
| Language | English |
| Duration | 12 weeks |
| Categories | Management Studies |
| Credit Points | 3 |
| Level | Undergraduate/Postgraduate |
| Start Date | 19 Jan 2026 |
| End Date | 10 Apr 2026 |
| Enrollment Ends | 02 Feb 2026 |
| Exam Registration Ends | 20 Feb 2026 |
| Exam Date | 25 Apr 2026 IST |
| NCrF Level | 4.5 — 8.0 |
Mastering Commercial Banking Management: A 12-Week Guide with Prof. Jitendra Mahakud
In today's complex financial landscape, the effective management of commercial banks is more critical than ever. It requires a delicate balance between pursuing profitability and maintaining liquidity, all while navigating a myriad of risks. A comprehensive understanding of these principles is essential for aspiring bankers, financial analysts, and consultants. This detailed guide outlines a structured 12-week journey into the core of commercial banking management, based on a course designed by Prof. Jitendra Mahakud of the prestigious Indian Institute of Technology (IIT) Kharagpur.
About the Course & Instructor
This course delves into the management of commercial banking activities from a risk management perspective. Its prime focus is on managing major risks—such as interest rate risk, credit risk, liquidity risk, and operational risk—to maximize the dual objectives of profitability and liquidity. The curriculum is meticulously crafted by Prof. Jitendra Mahakud, a distinguished Professor of Economics and Finance at IIT Kharagpur. With a PhD from IIT Mumbai and over 50 publications in leading journals, Prof. Mahakud brings immense academic and research expertise in financial markets, corporate finance, and banking to this program.
Course Details:
- Duration: 12 Weeks
- Level: Undergraduate/Postgraduate
- Intended Audience: Students of Economics, Commerce, and MBA
- Industry Support: Highly relevant for careers in Banks and Financial Consulting Companies
Detailed 12-Week Course Layout
Module I: Foundations - Functions, Regulation & Performance (Weeks 1-2)
The course begins by establishing a solid foundation. You will explore the fundamental functions and forms of commercial banks, the critical regulatory environment they operate within, and how to decipher their financial statements. The module then dives deep into key performance metrics used to evaluate a bank's health, including profitability, efficiency, stability, liquidity, and loan quality measures.
Module II: Valuation and Risk Framework (Weeks 3-4)
Understanding value and risk is paramount. This module covers the techniques for pricing bank stocks and fixed-income securities. It then provides a comprehensive overview of the risk management process, detailing major risk types faced by banks—credit, market, operational, liquidity, solvency, and legal risk—along with the measures used to quantify them.
Module III: Asset-Liability Management (ALM) & Interest Rate Risk (Weeks 5-6)
At the heart of banking management is ALM. You will learn essential tools like Static Gap Analysis, Duration Gap Analysis, and Earnings Sensitivity Analysis to manage interest rate risk. The module progresses to advanced hedging strategies using financial derivatives (futures, options, swaps) and innovative instruments like Asset-Backed Securities and Credit Derivatives.
Module IV: Management of Lending Activities (Weeks 7-8)
Lending is a core revenue generator for banks. This section examines the lending function, loan policy formulation, and the critical process of loan pricing. It also breaks down the rigorous credit evaluation process for both industrial and retail loan portfolios.
Module V: Investment Portfolios & Liquidity Management (Weeks 9-10)
Banks must wisely manage their securities portfolio and liquidity. This module discusses investment alternatives, how to evaluate investment risk, and formulating an investment strategy. It also covers practical techniques for estimating liquidity needs, funds management, and determining the optimum level of bank liquidity.
Module VI: Liabilities, Capital & Off-Balance Sheet Activities (Weeks 11-12)
The final module addresses the management of deposits and other liabilities, the crucial role of bank capital, capital adequacy standards (like Basel norms), and the growing importance of off-balance sheet activities such as financial guarantees, derivatives, trade finance, and foreign exchange operations.
Essential Reference Books
The course curriculum is supported by seminal textbooks in the field, ensuring both theoretical depth and practical insights:
| Book Title | Author(s) | Publisher |
|---|---|---|
| Commercial Banking: The Management of Risk | Gup, Benton E. & Kolari, James W. | John Wiley & Sons |
| Bank Management & Financial Services | Rose, P. S. & Hudgins, S. C. | McGraw-Hill Education |
| Management of Banking, 6e | MacDonald, Scott. S. & Koch, Timothy. W | Thomson |
Who Should Take This Learning Journey?
This structured program is ideal for:
- Students pursuing degrees in Finance, Economics, Commerce, or MBA seeking specialization in banking.
- Aspiring professionals targeting roles in retail banking, corporate banking, risk management, treasury, or financial consulting.
- Early-career bankers and finance executives looking to solidify their theoretical understanding of core banking operations and risk frameworks.
By completing this 12-week intellectual journey, you will gain a robust, risk-focused framework for understanding and managing a commercial bank. You'll be equipped with the analytical tools to assess bank performance, manage key risks, and make strategic decisions regarding lending, investments, and capital—a powerful skill set for a successful career in the dynamic world of finance.
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