The CAIIB ABFM Syllabus 2025 plays a crucial role for banking professionals aiming to move up the ladder through internal promotions. Conducted by the Indian Institute of Banking and Finance (IIBF), the Advanced Business and Financial Management (ABFM) paper is one of the four mandatory subjects under the revised CAIIB examination structure. This guide provides a detailed, module-wise overview of the latest syllabus to help aspirants plan and prepare effectively.
The ABFM paper includes 100 questions in total and is structured across four major modules: Management Process, Advanced Financial Concepts, Valuations and Mergers, and Emerging Business Solutions.
Table of Contents
Module A
This module focuses on fundamental management functions within the banking environment. It covers various organisational theories, leadership, decision-making, and operational controls that are critical for managerial efficiency.
Key Topics:
- Basics of Management: Functions, approaches, strategic thinking
- Planning: MBO, forecasting, decision-making, contingency planning
- Organising: Organisation structure, authority, manuals, change management
- Staffing: Recruitment, selection, training, performance appraisals
- Directing: Leadership, supervision, communication, motivation
- Controlling: Control processes, control techniques, planning-control link
Module B
This module deals with high-level financial decision-making and equips candidates with the knowledge to evaluate investment opportunities and capital structures, especially in the banking context.
Key Topics:
- Sources of Finance: Equity, term loans, debentures, regulatory compliance
- Leverages: Financial, operating, and combined leverage
- Capital Investment: Project cash flow estimation, cost analysis, forecasting
- International Projects: Foreign investment risks, currency evaluations
- Risk in Capital Budgeting: Scenario and sensitivity analysis, decision trees
- Decision-Making Tools: CVP analysis, ABC costing, ethical considerations
Module C
Module C covers corporate growth strategies and financial structuring through valuations and restructuring processes like mergers and acquisitions.
Key Topics:
- Corporate Valuation: DCF, book value, stock-debt method, relative valuation
- Discounted Cash Flow: Models and inputs, dividend valuation methods
- Non-DCF Models: Multiples-based valuations, special cases (startups, distressed firms)
- M&A: Deal mechanics, exchange ratios, tax and legal considerations
- Structuring: Buyouts, alliances, cross-border acquisitions, financial reporting
Module D
This future-focused module includes topics such as startup finance, venture capital, AI in banking, green financing, and new-age financing models. It aims to build awareness of technological and environmental shifts impacting financial services.
Key Topics:
- Hybrid Finance: Warrants, convertible debentures, FCCBs, mezzanine capital
- Startup Finance: Policies, tax incentives, investor outlook, pitch decks
- Private Equity & VC: Investment stages, due diligence, exit strategies
- Artificial Intelligence: AI applications, tools, networks, ethical concerns
- Business Analytics: Big data, web/mobile analytics, predictive insights
- Green Finance: ISO standards, RBI stance, policy growth, regulatory landscape
- SPACs: SPAC formation, benefits, risks, capital structure, De-SPAC process
By mastering each of these modules, candidates can enhance their analytical thinking and decision-making abilities—skills that are vital for leadership roles in banking.
FAQs
How many modules are in the ABFM syllabus 2025?
There are four modules: A, B, C, and D.
Is ABFM compulsory in CAIIB 2025?
Yes, ABFM is one of the four compulsory papers under the revised CAIIB structure.
What is the weight of each module in the exam?
The paper has 100 questions; weightage may vary by topic but all modules are important.
Does Module D cover fintech topics?
Yes, Module D includes AI, business analytics, and SPACs relevant to fintech.
Who conducts the CAIIB exam?
The Indian Institute of Banking and Finance (IIBF) conducts the CAIIB exam.
