CAIIB ABFM Syllabus 2025, Exam Pattern, Detailed Syllabus

CAIIB ABFM Syllabus 2025: The CAIIB exam (Certified Associate of Indian Institute of Bankers), aims to provide finance and banking professionals with a strong foundation in the core concepts of banking. Bankers who are planning to appear in the CAIIB ABFM Paper this year must be aware of the updated syllabus of CAIIB ABFM 2025. The IIBF will soon release the CAIIB Exam Date 2025 for the Financial Year 2024-25 and candidates must start preparing for the CAIIB Advance Business & Financial Management Paper.

CAIIB ABFM Syllabus 2025

CAIIB Advance Business & Financial Management Syllabus

CAIIB Syllabus Paper 3 Advanced Business and Financial Management (ABFM)

CAIIB Syllabus Paper 3 Module A: The Management Process

Here's an overview of the topics related to Basics of Management, including functions, planning, organizing, staffing, directing, and controlling:

1. Basics of Management:

• Definition of Management
• The Management Process
• Functions of Management
• Importance of Management
• Management Thoughts & Approaches
• Management Challenges & Opportunities

2. Introduction to Strategic Management:

• Business Environment Analysis

3. Planning:

• Fundamentals of Planning
• Steps in Planning
• Importance of Planning
• Advantages and disadvantages of planning
• Management by Objectives
• Plan Components
• Contingency planning
• Forecasting & Decision Making

4. Organizing:

• 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

5. Staffing:

• 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

6. Directing:

• Characteristics of directing
• Importance of directing
• Elements of directing
• Leadership
• Motivation
• Communication
• Supervision

7. Controlling:

• 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

CAIIB Syllabus Paper 3 Module B: Advanced Concepts Of Financial Management

Here's an overview of the topics related to Sources of Finance, Financial Strategies, Capital Investment Decisions, International Project Investment, Capital Budgeting, Risk Analysis, and Decision Making:

1. Sources of Finance and Financial Strategies:

• Equity Capital
• Internal Accruals
• Preference Capital
• Term Loans
• Debentures
• Alternative Financing Strategies in the Context of Regulatory Requirements

2. Financial and Operating Leverages:

• Financial Leverage
• Degree of Financial Leverage and its Behavior
• Operating Leverage
• Degree of Operating Leverage and its Behavior
• Combined or Total Leverage

3. 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

4. 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 the evaluation of overseas projects
• Evaluation methods
• Impact of transfer pricing
• Adjustment of Risk and Uncertainty in Capital Budgeting Decision

5. Risk Analysis:

• 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

6. 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

CAIIB Syllabus Paper 3 Module C: Valuation, Mergers & Acquisitions

Here's an overview of the topics related to Corporate Valuations, Valuation Approaches, Discounted Cash Flow Valuation, Non-DCF Valuation Models, Special Cases of Valuation, Mergers, Acquisitions, Restructuring, and Deal Structuring:

1. 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 Approach

2. 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

3. 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

4. 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

5. 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

6. 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

CAIIB Syllabus Paper 3 Module D: Emerging Business Solutions

Here's an overview of the topics related to Hybrid Finance, Start-up Finance, Private Equity and Venture Capital, Artificial Intelligence, Business Analytics, Green and Sustainable Financing, and Special Purpose Acquisition Company (SPAC):

1. 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

2. 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 programs
• International challenges and bridges

3. 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

4. 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

5. 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

6. 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

7. Special Purpose Acquisition Company (SPAC):

• 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

CAIIB 2025 Marking Scheme

• To successfully clear each subject of the CAIIB exam, candidates must secure a minimum score of 50 marks out of the total 100 marks allotted.
• Alternatively, candidates who manage to obtain a minimum of 45 marks in every subject and an overall aggregate of at least 50% in a single attempt will also be considered as having qualified for the examination.
• The credits obtained for the subjects in which candidates have achieved passing marks will remain valid until the specified time limit expires for completing the entire examination process.

CAIIB ABFM Exam Pattern 2025

• The CAIIB ABFM exam will be conducted in Online mode only.
• The CAIIB ABFM Examination is held for a total of 100 marks.
• The question paper will have 100 questions. The Institute, on the other hand, has the authority to change the number of questions that will be asked for each subject.
• No negative marking for incorrect answers in the CAIIB ABFM Paper.
• The duration to complete the CAIIB ABFM Paper will be 2 hours.
• Candidates have the option of taking the CAIIB ABFM Paper in Hindi or English.

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