How to Clear BFM in 1st Attempt? Study Plan, Key Tips

Clearing the CAIIB Bank Financial Management (BFM) Exam in the first attempt is a goal that many aspiring bankers set for themselves. 

With the right preparation strategy, study plan, and resources, it is absolutely achievable. Here, we cover everything needed to help Banking and working professionals to crack the CAIIB BFM exam on their first attempt in the December Cycle.

How to Clear BFM in 1st Attempt?

BFM is an important subject in CAIIB exams that covers topics like international banking, risk management, treasury operations, and managing balance sheets. The CAIIB Bank Financial Management checks not just your book knowledge but also how well you can apply concepts through case studies and numerical questions. 

Understanding the CAIIB BFM Exam Pattern 2025 and focusing on key topics will help you build a strong base and score better.

Tips to Clear BFM Exam First Attempt

Below are the tips and preparation strategy for how to clear BFM in 1st Attempt.

Understand the CAIIB BFM Paper Pattern 

 Total Questions: 100

Total Marks: 100 - 50% marks to qualify

Duration: 2 Hours (60 minutes)

Negative Marking: No

Case Studies: Many questions are case-based, especially in Module D

Most Important Topics to Cover- Module-Wise

 Module A- International Banking

• Exchange Rate Mechanism

• NOSTRO / VOSTRO / LORO

• Foreign Exchange Market

• Forward Contract / Option / Swap

• FEMA and FEDAI guidelines

• Types of LCs (especially Back-to-Back LC)

• ECB (External Commercial Borrowings)

• Capital Account vs Current Account

Module B - Risk Management

• Types of Risk (Market, Credit, Operational, Liquidity, etc.)

• Risk Mitigation and Risk Pricing

• Sensitivity / Volatility / Downside Risk

• Value Risk (VaR0

• Enterprise Risk Management (ERM)

• Basel I / II / III - Difference and Implementation in India

• ICAPP and SERP

Module C - Treasury Management

• Role of Treasury

• Money Market Instruments (T-Bills, CD, CP)

• SLR / CRR
  Yield Curve / Yield to Maturity (YTM)

• Duration / Convexity

• Repo, Reverse Repo, CBLO

• Investment Portfolio of Banks

BFM Exam Study Plan: 20 Topics You Must Not Skip

Begin your preparation by understanding the detailed syllabus and exam pattern. Prioritize modules with higher weightage, such as Module A (International Banking) and Module B (Risk Management), which together constitute over 50% of the exam questions. Modules C (Treasury Management) and D (Balance Sheet Management) are also important but can be tackled after A and B.

In the table below, you will find the BFM important topics that you must not skip to clear BFM in 1st Attempt.

BFM Success Tips for Beginners (Weekly)

A well-structured study plan is key to staying on track and covering all topics effectively. Here’s an example of a 6-8 week study plan.

CAIIB BFM Preparation Strategy

• Use CAIIB BFM Macmillan Book (Best Books for BFM Exam) + Latest IIBF Module PDFs

• Practice 1000+ MCQs (previous year + Application based)

• Make your own one-liner notes

• Practice 5 to 10 case studies per week

• Focus extra on Module D and B