How to Prepare for JAIIB AFM 2026?

The JAIIB (Junior Associate of Indian Institute of Bankers) AFM (Accounting & Finance for Bankers) 2026 exam is an essential step for banking professionals seeking to enhance their knowledge of accounting, finance, and related banking practices. A well-planned preparation strategy is crucial to scoring well and gaining a strong understanding of the subject.

How to Prepare for JAIIB AFM 2026?

Preparing for the JAIIB AFM in 2026. First, let’s talk about difficulty: AFM is considered the toughest paper of the three. It’s not about memorization; it’s about understanding the flow of numbers. But the good news is it’s also the most predictable. If you approach it with the right strategy, you can not only pass, but also do it with ease.

1. Know What You Are Facing

The exam has 100 questions. You get 2 hours. Most questions are MCQs. But now, many questions come in the form of case studies. That means they will give you a small story or a balance sheet, and then ask 4-5 questions from it. You don’t need to become a CA to pass this exam. You just need to understand the basics clearly.

Before starting preparation, candidates should be thoroughly familiar with the syllabus. The AFM paper generally covers:

• Accounting & Financial Statements – Balance Sheet, Profit & Loss Account, Cash Flow Statements
• Banking & Financial Management Concepts – Capital Adequacy, Asset-Liability Management, Financial Ratios
• Funds & Cost Management – Sources of Funds, Cost Analysis, Budgeting
• Financial Markets & Instruments – Bonds, Debentures, Mutual Funds, Risk Management
• Banking Laws & Regulations – RBI guidelines, Basel Norms, Prudential Norms

2. Which Topics to Focus On First?

Don’t study the book from page 1. Start with the most important topics. These carry the most marks.

First: Accounting

• Focus on Final Accounts (how to read a balance sheet and profit & loss account)
• Cash Flow Statement (where money came from and where it went)
• Partnership Accounts (basic admission and retirement entries)

Second: Financial Management

• Ratio Analysis – This is very important. Don’t just learn formulas. Understand what each ratio means. For example, if current ratio is high, it means the bank has enough money to pay bills.
• Working Capital – How much money a business needs to run daily.
• Capital Budgeting – NPV and IRR. Just remember one thing: money today is worth more than money tomorrow. If you understand this, these chapters become easy.

Third: Taxation & ALM

• Tax – Focus on TDS (when to deduct tax) and advance tax. Don’t get lost in big tables.
• ALM – Think of it like matching. Short-term money should not go into long-term loans. That’s the main idea.

3. Study with a Pen and Paper

AFM is not a subject you can just read. You have to solve.

• First 2 months: Take a notebook. Solve every numerical by hand. Write the full step. Do this for depreciation, ratios, cash flow, etc. This builds confidence.
• Next 2 months: Start solving MCQs. But after solving, check why the wrong answers were wrong. If you can explain why the other three options are incorrect, you have truly understood the topic.

4. How to Handle Case Studies

Case studies scare many people. But they are easy if you follow this method.

When you see a case study:

• Do not read the questions first.
• Look at the data given (balance sheet, profit & loss).
• On your rough sheet, write down the key numbers: Sales, Debtors, Profit, Total Assets.
• Calculate the common ratios yourself first—current ratio, debt-equity ratio, etc.
• Now read the questions. Most of the time, they will ask exactly what you just calculated.

This way, you don’t waste time reading the case again and again.

5. Keep a Mistake Notebook

This is a small but powerful habit. Buy a small notebook. Every time you make a mistake in a mock test, write down the reason in simple words.

For example:

• “Forgot to deduct preference dividend before calculating EPS.”
• “Mixed up operating leverage with financial leverage.”

Read this notebook every Sunday. You will see you make the same 10 mistakes again and again. Fix these, and you will fix half your problems.

6. Last 45 Days: Only Practice

In the last one and a half months, stop reading too much. Focus only on solving.

• Solve full mock tests in one sitting. Sit for 2 hours without getting up. This trains your mind.
• Finish each mock in 1 hour 45 minutes. Keep 15 minutes extra to check your answers. In the real exam, you will need this time to catch small calculation errors.
• Don’t ignore the easy modules like Indian Financial System and Ethics. These carry 20-25 marks and require no calculations. Just read them once or twice in the last month. They are free marks.

7. On the Exam Day

Keep these simple tips in mind:

• Start with what you know. Don’t go in order. First, solve the 15-20 questions you are 100% sure of. This gives you confidence.
• Skip long case studies at first. If you see a big case study with many questions, mark it and come back later. If you get stuck on it early, you will waste time and feel stressed.
• Don’t overthink. If a calculation is taking more than 2 minutes, you are probably overcomplicating it. The exam tests basic concepts, not deep complex math. Trust your first answer.