CAIIB ABFM Syllabus 2025, Check Detailed ABFM Syllabus & Pattern

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CAIIB ABFM Syllabus

The Certified Associate of Indian Institute of Bankers (CAIIB) exam, specifically the Advanced Business & Financial Management (ABFM) paper, is important for banking professionals aiming to improve their knowledge of financial management in banking. If you are preparing for the CAIIB ABFM exam, understanding the syllabus is important for effective study planning. This article will help you with the detailed CAIIB ABFM Syllabus 2025.

CAIIB ABFM Syllabus 2025

The CAIIB ABFM Exam is one of the four compulsory papers within the CAIIB certification conducted by the Indian Institute of Banking and Finance (IIBF). In this paper, there are 4 modules which are further segregated into various topics. Before moving on to the detailed syllabus, let’s have a look on the exam pattern.

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CAIIB ABFM Exam Pattern 2025

The candidates must note that there is no negative marking. ABFM Paper will have MCQs including the case lets/case studies. The detailed pattern for the CAIIB ABFM exam is given below:

Subject	No. of Questions	Total Marks	Duration
Advanced Business and Financial Management	100	100	2 hours

CAIIB ABFM Syllabus 2025 – Detailed

The CAIIB ABFM Syllabus 2025 is divided into four key modules. Below is a summary of the modules:

Module	Topics Covered
Module A	The Management Process
Module B	Advanced Concepts of Financial Management
Module C	Valuation, Mergers & Acquisitions
Module D	Emerging Business Solutions

CAIIB ABFM Module A Syllabus – Management Process

The syllabus for Module A of ABFM i.e. Management Process is given below:

Chapters	Topics
Basics of Management	Definition of Management, The Management Process, Functions of Management, Importance of Management, Management Thoughts & Approaches, Management Challenges & Opportunities, Introduction to Strategic Management, Business Environment Analysis
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
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
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
Directing	Characteristics of directing, Importance of directing, Elements of directing, Leadership, Motivation, Communication, Supervision
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 ABFM Module B Syllabus – Advanced Concepts of Financial Management

The syllabus for Module B of Advanced Concepts of Financial Management is given below:

Chapters	Topics
Sources of Finance and Financial Strategies	Equity Capital, Internal Accruals, Preference Capital, Term Loans, Debentures, Alternative Financing Strategies in the Context of Regulatory Requirements
Financial and Operating Leverages	Financial Leverage, Degree of Financial Leverage and its Behaviour, Operating Leverage, Degree of Operating Leverage and its Behaviour, Combined or Total Leverage
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
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 evaluation of overseas projects, Evaluation methods, Impact of transfer pricing
Adjustment of Risk and Uncertainty in Capital Budgeting Decision	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
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 ABFM Module C Syllabus – Valuation, Mergers & Acquisitions

The syllabus for Module C of Valuation, Mergers & Acquisitions is given below:

Chapters	Topics
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
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,
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
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
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 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 ABFM Module D Syllabus – Emerging Business Solutions

The syllabus for Module D of Emerging Business Solutions is given below:

Chapters	Topics
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
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 programmes, International challenges and bridges
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
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
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
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
Special Purpose Acquisition Company	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 ABFM Syllabus 2025 – FAQs

Q1. What are the important topics in CAIIB ABFM Syllabus?

The CAIIB ABFM Syllabus consists of 4 modules and all the modules are important.

Q2. Which modules are included in CAIIB ABFM?

The CAIIB ABFM modules are the management process, advanced concept of financial management, valuations, mergers and acquisitions and emerging business solutions.

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