The CAIIB (Certified Associate of Indian Institute of Bankers) is one of the most prestigious professional banking exams conducted by the Indian Institute of Banking & Finance. Among its subjects, ABFM (Advanced Bank Financial Management) is known to be one of the most conceptual and analytical papers.
In this blog, we have provided the most important topics from the CAIIB ABFM paper, along with module-wise weightage and more, based on previous year papers and expert analysis. These topics are not only crucial for scoring high marks but also for understanding the subject deeply.
CAIIB ABFM Important Topics
Some of the most important topics for the CAIIB ABFM paper are as follows:
| Module | Important Topics |
| Module A – Management Process | 1. Functions of Management – Planning, Organizing, Staffing, Directing, Controlling 2. Management Thoughts – Classical, Neo-classical, Modern 3. SWOT Analysis – Strengths, Weaknesses, Opportunities, Threats 4. Planning Process & Components – Steps & types of plans 5. Management by Objectives (MBO) – Concept & benefits 6. Types of Organizational Structures – Line, Functional, Matrix 7. Staffing – Recruitment, Selection, Training, Development 8. Performance Appraisal – Methods & importance 9. Leadership, Motivation, Communication – Core of directing 10. Controlling – Features & link with planning |
| Module B – Financial Management | 11. Sources of Finance – Equity, Debt, Preference Capital 12. Preference Shares – Features, types, dividend policy 13. Leverage Concepts – Financial, Operating, Combined with formulas 14. Capital Investment Decisions – Payback Period, NPV, IRR, Modified IRR 15. Foreign Investment Analysis – Approaches to evaluate overseas projects 16. Risk & Uncertainty in Capital Budgeting – Sensitivity & Scenario Analysis 17. Decision-Making Tools – CVP Analysis, ABC Analysis |
| Module C – Valuation and Business Finance | 18. Corporate Valuation Approaches – DCF and others 19. Equity Valuation Models – P/E, Book Value Approach 20. Special Cases in Valuation – Cross-holdings, cyclical industries, convertible securities 21. Mergers & Acquisitions – Types, anti-takeover strategies, tax relief in amalgamation 22. Hybrid Securities – Debentures, Bonds, Preference Shares 23. Start-up Finance – Definition, benefits, challenges, govt. policies 24. Private Equity & Venture Capital – Concepts, stages, differences |
| Module D – Contemporary and Emerging Topics | 25. Business Analytics as a Management Tool – Role & key elements 26. Green & Sustainable Finance – ISO standards, application in financial institutions 27. SPAC – Definition, features, process, De-SPAC stages 28. AI & Cybernetics in Business – Control theory, automation, testing processes |
CAIIB ABFM Module wise Weightage
The module-wise weightage for the CAIIB ABFM paper is as follows:
| Module | Estimated Weightage |
| Module A | 25–30 |
| Module B | 25–28 |
| Module C | 25–30 |
| Module D | 10–12 |
| Module E | 4–6 |
Also Check: CAIIB Exam Date 2025
AIIB BFM Paper Exam Structure
The CAIIB 2025 exam has five papers in total. Four are compulsory ABM, BFM, ABFM, and BRBL, and one is an elective chosen by the candidate based on role or interest. Each paper has 100 questions for 100 marks with a 2-hour duration.
The exam is held online by IIBF and includes MCQs, case studies, and numerical problems to check both knowledge and practical skills.
| Feature | Details |
| Total Questions | 100 objective-type multiple-choice questions |
| Total Marks | 100 marks |
| Case-Based Questions | Includes case studies and case lets |
| Numerical Input Questions | Some subjects include numerical questions requiring direct input (no options provided) |
| Exam Mode | Online (Computer-Based Test only) |
| Negative Marking | No negative marking for wrong answers |
| Exam Language | Can be attempted either in Hindi or in English |
Preparation Strategy for ABFM Paper
The preparation strategy for the CAIIB ABFM paper is as follows:
- Start with Modules A and B, as they carry conceptual and numerical questions.
- Prepare short notes for formulas, definitions, and key models.
- Practice previous year questions (PYQs) to identify recurring topics.
- Revise with a focus on case studies and practical applications.
The CAIIB ABFM paper is all about concept clarity, logical application, and consistent revision. Covering the above-mentioned important topics ensures a strong foundation and boosts your confidence for the exam.
FAQs
Chapters 1 (Functions of Management) and 4 (Planning Process) carry higher weightage.
Chapter 25 on SPACs is short but commonly included in exams.
Focus on high-weightage chapters, practice numericals, and revise formulas & key concepts.
Yes, real-life banking examples improve understanding and help in descriptive answers.
Yes, memorize merger-related provisions under the Income Tax Act for case-based questions.
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