Credit Analyst/Banking

Also what ratios (liquidity, leverage, etc.) you’ll look into as relationship person and what as credit person while on boarding a new corporate.

As a relationship person, when onboarding a new corporate client, the key ratios I would look into would primarily be liquidity and profitability ratios. Liquidity ratios such as the current ratio and quick ratio would help assess the company’s ability to meet its short-term obligations. These ratios indicate the availability of liquid assets to cover…...

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And also what’s your understanding of the difference between credit and relationship manager.

In the banking industry, the roles of a credit manager and a relationship manager are distinct but interconnected. While both roles involve client engagement and managing client relationships, they focus on different aspects of the banking process. A credit manager primarily deals with the analysis and evaluation of creditworthiness and risk associated with lending activities…....

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What is important yardstick in assessment of Term Loan?

One important yardstick in the assessment of a term loan is the Debt Service Coverage Ratio (DSCR). DSCR is a financial metric used by lenders to evaluate a borrower’s ability to generate sufficient cash flow to meet their debt obligations. It provides an indication of the borrower’s capacity to repay the loan. DSCR is calculated…...

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What are IRAC norms?

IRAC (Income Recognition, Asset Classification, and Provisioning) norms are guidelines issued by the Reserve Bank of India (RBI) to ensure prudent and transparent recognition of income, classification of assets, and provisioning for potential loan losses by banks and financial institutions. These norms play a crucial role in maintaining the stability and integrity of the banking…...

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What ratios you will look for when giving credit?

When assessing the creditworthiness of a company, several key ratios are commonly considered to evaluate its financial health and ability to repay its obligations. Here are some important ratios to consider when giving credit: 1. Current Ratio: This ratio indicates a company’s ability to cover its short-term obligations with its short-term assets. A higher current…...

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