JAIIB AFM Preparation Strategy 2025, AFM Important Topics & Study Tips

The Junior Associate of the Indian Institute of Bankers (JAIIB) exam is an important step for banking professionals who want to improve their knowledge of banking and financial management. One of the key papers in this exam is Accounting and Financial Management for Bankers. In this blog, we have provided JAIIB AFM module-wise preparation strategy, details of important topic, topics from which questions were asked in the last cycle exam and more.

What Is the AFM Paper in JAIIB?

The Accounting and Financial Management (AFM) paper focuses on accounting principles, balance sheet preparation, ratios, and financial management concepts applied in the banking sector. It includes both theory and numerical questions.

Paper 3 AFM is crucial as it not only helps in exams but also improves practical knowledge useful in banking operations like balance sheet reading, risk management, and investment analysis.

Understanding the JAIIB AFM Syllabus

The AFM paper comprises 100 questions, each carrying one mark, to be completed in 2 hours. The JAIIB AFM Syllabus is divided into four modules:

1. Module A: Accounting Principles and Processes
2. Module B: Financial Statement and Core Banking Systems
3. Module C: Financial Management
4. Module D: Taxation and Fundamentals of Costing

JAIIB AFM Module Wise Preparation Strategy and Study Tips

The JAIIB Paper 3 AFM module-wise important topics and study tips are as follows:

Module A – Basics of Accounting

This module covers fundamental accounting concepts and rules. Topics include:

• Accounting Principles & Standards
• Journal Entries, Ledger Posting, Trial Balance
• Depreciation Methods
• Bank Reconciliation Statement

Study Tip:
Practice journal entries and trial balances daily. Learn the Golden Rules of Accounting (Debit & Credit rules). Use examples from banking transactions to strengthen concepts.

Module B – Bank Accounting and Balance Sheet

This section is banking-specific and includes:

• Bank Final Accounts
• Non-Performing Assets (NPA) and Provisions
• Balance Sheet Analysis
• Income Recognition & Asset Classification

Study Tip:
Focus on NPA classification, provisioning norms, and the structure of a bank’s balance sheet. Practice preparing Profit & Loss accounts for better conceptual clarity.

Module C – Financial Management

This module links accounting with financial decision-making. Topics include:

• Cost of Capital (WACC)
• Leverage: Operating, Financial, and Combined
• Time Value of Money (NPV, IRR, Discounting)
• Working Capital Management
• Capital Budgeting

Study Tip:
Practice numerical questions on NPV, IRR, and Leverage. Use calculators to speed up calculations. Understand the formulas and their application in decision-making.

Module D – Valuation, Ratios & Risk Management

This module deals with evaluation and risk analysis:

• Ratio Analysis (Liquidity, Profitability, Solvency)
• Valuation of Bonds and Shares
• Risk and Return concepts
• Capital Asset Pricing Model (CAPM)

Study Tip:
Memorize key ratios and their formulas. Practice questions on bond valuation and risk-return analysis. Understanding rather than rote-learning will help in solving tricky questions.

Tips for Effective JAIIB AFM Preparation

Some of the useful tips to prepare for the JAIIB 2025 AFM paper effectively are as follows:

• Break Down the Syllabus: Cover one module at a time and create short notes for formulas and journal entries.
• Practice Numerical Questions Daily: At least 60–70% of AFM questions are numerical, so solving them daily is essential.
• Use Mock Tests: Attempt JAIIB AFM mock tests to improve speed and accuracy.
• Focus on Previous Year Questions: Many numerical patterns are repeated with slight changes.
• Create a Formula Sheet: Keep a handy sheet of important formulas like ratios, NPV, IRR, depreciation methods, etc.
• Revise Regularly: Revise at least once a week to avoid forgetting accounting rules and formulas.

High Weightage Topics to Strategize JAIIB AFM Preparation

Some of the high-weightage topics for JAIIB Paper 3 AFM are as follows:

Subject	Topic	Key Points to Focus
Accounting	Journal, Ledger, Trial Balance	Golden rules, rectification of errors
Banking Accounts	NPA & Provisions	Asset classification, IRAC norms
Financial Management	Time Value of Money	NPV, IRR, Discounting, Compounding
Financial Ratios	Liquidity, Profitability Ratios	Quick Ratio, ROA, ROE, Debt-Equity
Valuation	Bonds & Shares	Yield, Current Value, Dividend models
Working Capital	Estimation of Working Capital	Operating cycle, cash management
Leverage	Operating & Financial Leverage	Impact on EPS and Risk

Study Tips for High Weightage Topics

• Prioritize Numerical Practice: Focus more on topics like Time Value of Money, Ratio Analysis, and NPA provisions.
• Revise Frequently: Formulas and accounting entries must be revised again and again.
• Work Smartly: Solve simpler questions first during the exam, then move to lengthy calculations.

JAIIB AFM Exam Pattern

Subject	No. of Questions	Total Marks	Duration
AFM – Accounting & Financial Management	100	100	2 hours

There is no negative marking. Candidates need 50 out of 100 marks to pass.

JAIIB AFM Study Plan for 45 Days

Preparing for the JAIIB Accounting & Financial Management (AFM) exam requires a well-structured plan to cover all four modules effectively. This 45-day study plan has been curated by our expert to help aspirants systematically prepare, revise, and practice important concepts before the exam.

How to Use This Study Plan?

• Spend 2-3 hours daily on focused study.
• Follow a module-wise approach for better understanding.
• Allocate time for concept learning, revision, and mock tests.
• Solve numerical problems regularly to improve accuracy.
• Revise formulas and key concepts every week.

Days 1–15 – Foundation Building (All Modules in Rotation)

• Daily Target (2–3 hours):
  • 30–40 mins: Accounting basics (Journal entries, Ledger, Trial Balance, Rectification of Errors)
  • 30–40 mins: Financial Management (Time Value of Money – Simple/Compound Interest, NPV, IRR)
  • 20–30 mins: Quick read on Taxation basics (GST, TDS) or Costing fundamentals
  • 15 mins: Revise previous day’s formulas/short notes
• Weekend Boost (Day 6, 7, 13, 14):
  • Solve 25–30 MCQs + 2 Case Study Questions
  • Focus on Bank Accounts (NPA, Provisions) & Ratio Analysis

Days 16–30 – Concept Strengthening + Numerical Practice

• Daily Target (2–3 hours):
  • 30–40 mins: Bank-specific accounting (Final Accounts, P&L, Balance Sheet, NPA classification)
  • 40–50 mins: Financial Management (Leverage, Cost of Capital, Working Capital)
  • 15–20 mins: Taxation & Costing basics (Variance Analysis, Standard Costing)
  • 15 mins: Revise ratios & formulas
• Weekend Boost (Day 20, 21, 27, 28):
  • Practice a mini mock test (30–40 questions) with a timer
  • Analyze weak areas immediately
  • Revise frequently asked exam topics (like Depreciation methods, Bond Valuation, RBI norms for NPAs)

Days 31–40 – Advanced Preparation + Mock Tests

• Daily Target (2–3 hours):
  • 30 mins: Revision of Accounting entries + Bank Reconciliation + Errors
  • 45 mins: Advanced Financial Management (Bond Pricing, CAPM, Working Capital Cases)
  • 30 mins: Taxation rules for banking + Costing applications
  • 15 mins: Quick review of ratios and formula sheet
• Weekend Boost (Day 34, 35, 39):
  • Attempt Full-Length Mock Tests (100 Questions in 2 hours)
  • Focus on speed + accuracy
  • Revise mistakes immediately

Tip: Keep a formula diary (Time Value of Money, Ratios, NPA norms, Depreciation, Leverage). Read it daily for 10–15 mins.

Days 41–45 – Final Revision & Exam Readiness

• Day 41–42: Revise high-weightage topics – NPA, Financial Ratios, Bond/Share Valuation, Time Value of Money
• Day 43: Solve Mock Test 2 with exam-like conditions, analyze weak spots
• Day 44: Revise Accounting & Financial Statements + GST/TDS basics
• Day 45 (Last Day): Quick glance at formulas, ratios, short notes, and FAQs. Stay calm – no new topics.

Tip: Focus on 80:20 Rule – 20% high-weightage topics give 80% of marks (NPA, Ratios, TVM, Balance Sheet, Provisioning, Bond Valuation).

Study Hacks

• Daily Formula Sheet: Write all formulas (NPV, IRR, Ratios, Depreciation, Leverage) in one page – Revise daily.
• MCQ Practice – Reading: For AFM, practice is more effective than passive reading.
• Morning/Early Hours Study: Utilize 1–1.5 hours in the morning when mind is fresh.
• Weekend = Mock + Revision: Keep heavy study + full mock tests only on weekends.
• Practical Approach: Relate AFM concepts with your daily bank work (NPAs, Balance Sheets, Working Capital loans).

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