IIRF Online > Finance & Accounting > Finance > Banking > Banking Credit Analysis Process (for Bankers)
Banking Credit Analysis Process (for Bankers) by Udemy
Course for Bankers, Consultants and managers to Understand Credit Analysis Process from Indian Context.
Course Highlights
- Understand What is Credit Analysis
- How to evaluate Credit Proposal
- How to analyse Financial Statements
- How to analyse Term loan Projects
- Understand What is Project Financing
- How to arrive at Working Capital
- What is Working Capital Cycle
- What is letter of Credit
- What is Bank Guarantee
- Understand, Detailed Process of Credit Analysis
Skills you will learn!
Curriculum
18 Topics
Welcome Lecture
Why Credit Analysis Required
Know Your Customers
Know Customer Integrity
Know Performance Efficiency
Know Financial Position and ability to Pay Back
Know about Industry
Legal and Valuation of Securities
Why Past Loans Matter
Decision making in Credit
Difference between Corporate Lending and Retail Lending
Know Your Customer Policies
Decision making in Credit
Difference between Corporate Lending and Retail Lending
Information Exchange amongst Lending Institutions and Credit Information Compani
Dun & Bradstreet
Negative List of Information
Central Repository of Information of Large Credits
13 Topics
Financial Statements
Income Statement and Balance Sheet
Sources and Uses of Funds
Financial Statement Making Process
Difference between Income Liability Expense and Assets
Profit and Cash
Structure of Balance Sheet
What is important in Reading Balance Sheet
Second Balance Sheet Reading Skill Understanding Liquidity Position
Third Balance Sheet Reading Skill - Performance Measurement
Test your knowledge in Understanding financial statements- A Conceptual Approach
Test your knowledge in Understanding profit and loss account items
Test Your knowledge in Understanding Balance sheet
12 Topics
Introduction
Capture Borrower Profile
Write Brief Background of Borrower
Industry / Sector of Borrwer Write Up
Proposal request Template Format
Credit Limits Table Formulation
Group Exposure Table and Interpretation
Banking Arrangement and Sharing Pattern
Information Exchange amongst Lending Institutions & Credit Information Companies
Dun & Bradstreet
Negative List of Information
Central Repository of Information of Large Credits
32 Topics
Introduction to Ratio Analysis (Talking Head)
Classification of Ratio (Talking Head)
Introduction to Liqudity Ratio (Talking Head)
Classification of Liquidity Ratio (Talking Head)
Current Ratio (Talking Head)
Quick Ratio (Talking Head)
Ideal Current Ratio and Quick Ratio (Talking Head)
Absolute liqudity Ratio (Talking Head)
Basic Defense interval Ratio (Talking Head)
Capital Structure Ratios (Talking Head )
Turn over Ratio (Talking Head )
Inventory Turn over Ratio (Talking Head )
Debtors Turn over Ratio (Talking Head)
Creditors Turn over Ratio (Talking Head)
Inventory Holding Period (Talking Head)
Debtors Collection Period (Talking Head)
Creditors Payment Period (Talking Head)
Case Study 1 Ratio Analysis (Talking Head)
Case Study 2 Ratio Analysis (Talking Head)
Case Study 3 Ratio Analysis (Talking Head)
Case Study 4 Ratio Analysis (Talking Head)
Debt Service Coverage Ratio (Talking Head)
Interest Coverage Ratio (Talking Head)
Preference Dividend Coverage Ratio (Talking Head)
Capital Gearing Ratio (Talking Head)
Profitability Ratio (Talking Head)
General Profitability Ratio (Talking Head)
Return on Investment Ratios (Talking Head)
Various Ratio for Equity Share holders (Talking Head)
Market Value Ratios (Talking Head)
Summary and limitation of Ratio Analysis (Talking Head)
Test your knowledge in Analysis of financial statement
16 Topics
Sales Movement Analysis while writing Loan Proposal
Export Sales Movement
Analysis of Raw Material Cost
Analysis of Power Cost
Analysis of Direct Labour Cost
Analysis of Selling General & Admin Cost
Analysis of Operating Profit
Analysis of Profit and Profitability
Analysis of Cash Accruals
Analysis of PBDIT and Interest Coverage Ratio
Analysis of Paid Up Capital
Analysis of TNW Adjusted TNW and TOL / TNW in Loan Proposal
Analysis of Current Ratio and Net Working Capital in Loan Proposal
Analysis of Debt Service Coverage Ration (DSCR) in Loan Proposal
Analysis of Efficiency Ratios in Loan Proposal
Comments on Performance and Financial Indicators
14 Topics
Introduction to Fund Flow Analysis (Talking Head)
Importance of Fund Flow Analysis (Talking Head)
Fund Flow Through some Numbers (Talking Head)
Fund Flow Through Digram (Talking Head)
How to identify long term Sources and Uses (Talking Head)
Example of Long Term Source And Uses (Talking Head)
Standard Format of Fund Flow Statement (Talking Head)
Fund Flow Analysis Case Study
Fund Flow Statement Analysis of Real Case
Deficit Analysis in Fund Flow Statement
Estimate vs Actuals analysis in Fund Flow Statement
Comprehensive Analysis 1 of Fund Flow Statement
Comprehensive Analysis 2 of Fund Flow Statement
Comprehensive Analysis 3 of Fund Flow Statement
12 Topics
Cash Flow Statement Introduction (Talking Head)
Cash Flows from Various Activities (Talking Head)
Cash Flow Statement Direct Method (Talking Head)
Cash Flow Statement Indirect Method (Talking Head)
Case Study 1 Cash flow study (Talking Head)
Case Study 2 Cash flow study (Talking Head)
Case Study 3 Cash flow study (Talking Head)
Cash Flow Analysis in Loan Proposal
Cash Flow Analysis in Loan Proposal 2
Cash Flow Analysis in Loan Proposal 3
Cash Flow Analysis in Loan Proposal 4
Test your knowledge in Fund Flow And Cash Flow Analysis
4 Topics
Reading Balance Sheet of Adani Enterprise Limited
Fundamental Analysis Part 1
Cash Accruals & Asset Turnover
Reading Cash Flow Statement of Adani Enterprises Limited
1 Topic
Reading Balance Sheet of Infosys Limited
10 Topics
Inter firm Comparison in Loan Proposal
Inter firm Comparison in Loan Proposal Case 1
Internal Rating in Loan Proposal
Internal Rating in Loan Proposal - More Insights
External Rating in Loan Proposal
Review of Conduct of Accounts in Loan Proposal
Review of Cash Credit Account
Review of Term Loan Accounts
Review of Letter of Credit Facility
Review of Bank Guarantee
4 Topics
Review of Warning Signals and Audit Reports in Loan Proposal
Review of Compliance of Financial Covenants & Sanction Conditions
Review of Contingent Liabilities and Statutory Dues
Addressing Risk and Mitigating Factors
3 Topics
Finer Pricing
Defaulters List
Loan Policy
7 Topics
Financing Partnership Firm - Part 1
Financing Partnership Firm - Part 2
Tax aspects of Partnership Firm
Company as Partner
Trust as Partner
HUF as Partner
Minor as Partner
3 Topics
Types of Bank Loans for Business
Bank Loans for New Projects
Loans available in banking channel
7 Topics
Working Capital Loans
Working Capital Cycle
Tandon Committee Recommendations on Working Capital Assessment
Working Capital Assessement as per Nayak Committee
Review of Assessed Bank Finance
Working Capital Cycle Analysis
Test your knowledge in Financing Working Capital Requirements
7 Topics
Understanding Cash Credit
Cash Credit Example
Cash Credit
Assessment of Cash Credit - ABF Method
Assessment of Cash Credit - Conservative Method
Assessment of CC Book Debts
Is it ok to substitute creditors with CC / OD?
4 Topics
How to monitor Receivables?
Precautions - Finance against Bills
Frauds in Bill Financing
Accomodation Bills
9 Topics
What is Stock Statement?
Importance of Stock Statement
Drawing Power Computation from Stock Statement
Drawing Power Computation in case of Multiple Banking Arrangement
DP against unpaid Stock
Problem of Inflated Stock Statement
Why Stock Statements are obtained?
Advances from Customers and its treatment in Drawing Power Computation
Why Banks are reluctant to fund Receivables from Related Parties?
1 Topic
What and Why of Non Fund Based Credit Facilities?
8 Topics
Letter of Credit
Documents involved in Letter of Credit
Types of Letter of Credit
General aspects related to LC
Assessment of Letter of Credit
Letter of Credit (Old Lecture)
LC Computation (Old Lecture)
Assessment of Letter of Credit Limit
11 Topics
What is Bank Guarantee?
Types of Bank Guarantee
Bid Bond Guarantee
Advance Payment Guarantee
Appraisal and Assessement o BG Limits
Bank Guarantee (Old Lecture)
Types of Bank Guarantees (Old Lecture)
What is Bid Bond Guarantee?
Maintenance bond / guarantee
What is Retention Money Guarantee?
What is Advance payment Guarantee?
3 Topics
Physical follow up - Introduction
Physical follow up and End Use of Funds
Steps related to Physical Inspection
1 Topic
Basics of Project Report
31 Topics
Why Business entities should go for Term Loan?
Term Loan Appraisal By Banks
Term Loan - Nature of Project
What is TEV Study?
Technical Viability of Project
Financial Viability of Project
Economic Viability of Project
Commercial Viability of Project
Managerial aspects of Project
Compliance aspects of Project
Cost of Project and Means of Finance under Term Loan Appraisal
Land Cost and related inputs under cost of Project - Term Loan Appraisal
Building Cost and related inputs under cost of Project -Term Loan Appraisal
Plant and Machinery Cost and related inputs under cost of Project -Term Loan App
Technical Know how and related inputs under cost of Project -Term Loan Appraisal
Preliminary Expenses and related inputs under cost of Project -Term Loan Apprais
Pre-operative Expenses and related inputs under cost of Project -Term Loan Appra
Provision for Contingencies and related inputs under cost of Project -Term Loan
Working Capital Margin and related inputs under cost of Project -Term Loan Appra
General aspects related to estimation of Cost of Project - Term Loan Appraisal
Introduction of Sources of Finance - Term Loan Appraisal
Share Capital as source of Finance - Term Loan Appraisal
Internal Accruals as source of Finance - Term Loan Appraisal
Subsidies as source of Finance - Term Loan Appraisal
Debenture as source of Finance - Term Loan Appraisal
Term Loan as source of Finance - Term Loan Appraisal
Unsecured Loans as source of Finance - Term Loan Appraisal
Project Implementation Schedule
Production Factors - Term Loan Appraisal
Manufacturing Process - Term Loan Appraisal
Other Production Factors - Term Loan Appraisal
7 Topics
DSCR Computation in Term Loan
Analysis of DSCR (Gross Average & Net Average)
Analysis of DSCR 2 (Gross Average & Net Average)
How to improve DSCR?
Term Loan Eligibility Calculation
FOIR Computation in Term Loan
Project Viability - Case Study
7 Topics
Break Even Analysis
Break Even Point Example
Break Even Point Graph
Break Even Test by Bankers
Cash Break Even Analysis
Break Even Analysis Case 1 in Term Loan Appraisal
Break Even Analysis Case 2 in Term Loan Appraisal
5 Topics
Sensitivity Analysis in Term Loan Appraisal
Sensitivity Analysis Sales Drop Testing Case 1 in Term Loan Appraisal
Sensitivity Analysis Variable Cost Increase Testing Case 2 in Term Loan Appraisa
Sensitivity Analysis Material Cost Increase Testing Case 3 in Term Loan Appraisa
Sensitivity Analysis DSCR Testing Case 4 in Term Loan Appraisal
4 Topics
ECRA
Default
Credit Rating Scale
Importance of Credit Rating Scale
9 Topics
Introduction to Trading Enterprises
How Final Rating will be arrived?
Financial Risk (Static) based on latest financials
Financial Risk (Dynamic) based on 3 years financials
Market Risk
Managerial Risks
Security Value
Contingent Risk
Additional factors to determine pricing
17 Topics
Introduction to Credit Risk Rating of Non Trading Entities
Financial Risk (Static) - Current Ratio
Total Outside Liabilities to Tangible Networth
Interest Coverage Ratio
PAT / Net Sales
Financial Risk (Dynamic) - Current Ratio
Total Outside Liabilities to Tangible Networth
Interest Coverage Ratio
Financial Risk - Net Sales
Market Risk
Managerial Risk
Security Value
Capital Market Perception
Contingent Risk
Compliance
Pricing Factors
Final Rating
10 Topics
Credit Scoring & Credit Score
What is Good Credit Score?
What is CIBIL?
What is CIBIL Score?
Factors affecting CIBIL Score
Reasons for Poor Credit Score
How to improve Credit Score?
Mistakes in Credit Scoring
How to correct your Credit Score?
5 Myths around Credit Score
11 Topics
Why Bankers reluctant to sanction Working Capital Facility?
Why Bankers are running after seeing this Balance Sheet?
Why Current Ratio of at least 1.33 is insisted by Bankers?
What are Current Assets and Current Liability?
How Bankers Understand Long Term Stability of Business?
Return on Investment Case Study
Importance of Debt to Equity Ratio
Preference Share Capital
Why Banks are insisting on Margins on Loans
Why Banks insist on Financial Statements
How Sales analysis made by Banker
3 Topics
What & Why of MCLR
Calculation of MCLR
Misc. Items related to MCLR
3 Topics
Export Credit
Preshipment Credit
Assessment of Preshipment Credit
7 Topics
Introduction to Terms of Payment
Advance Payment
Documentary Credit
Parties in Documentary Credits
Details included in Letter of Credit
Practical Mechanism in Letter of Credit
Different Kinds of Letters of Credit
12 Topics
Introduction to Export Finance
Preshipment Finance - Packing Credit
Advance against Incentives
Preshipment Credit in Foreign Currency
Postshipment Finance
Negotiation of Export Documents under Letter of Credit
Purchase or Discount of Foreign Bills
Advance against bills sent on collection
Advance against goods sent on consignement
Advance against Export Incentives
Advance against undrawn balances and retrention money
Post shipment credit in Foreign Currency
6 Topics
CMA Introduction
CMA - Operating Statement
Capturing Past Data from Audited Financial Statements
Analysing Previous Years Income Statement
Analysing Previous Year Liability Statement
Analysing Previous Years Asset Statement
16 Topics
Introduction
Classification of comp
Features
Terms used
Differences
Adv and Disadv
Functions of CAS
Comp scope in banking
Why compl automation
Centralised Infra
Core bank and benefits
Tech architecture CBS
Flow of transaction
Information Security
SOP PC LAPTOP
Pwd Mgmt Policy
7 Topics
Introduction
Functions of bank
Main functions of bank
Front office and Back office
Outsourcing activities
Operational Instructions in Banks
Banking Operations Manual
13 Topics
Operational aspects of KYC Norms
KYC Norms - Customer Acceptance Policy
KYC Norms - Customer Identification Procedure
KYC Monitoring Transaction
KYC Risk Management
Selecting Additional information KYC
Norms for Periodic Updation of KYC
KYC Relaxatio
eKYC
Customer Service in Banks
ATM Transactions
Recent Changes in customer Service - RBI
BCSBI
32 Topics
Introduction
Technical Term
Technical Term 2
Priority Sector 3
Technical Term 4
Basic Rate
Fixed & Floating Rate
Penal Rate of Interest
Security
Document of title to Goods & Bankers General Lien
Negative lien Restriction Advances Rehabilitation & Recovery
Operational Process of loan in Banks
Methods for Assessment of loans
Accounting aspects of loan Products
Basic Operating Instructions on Loan Products
Operating Manual for C & A
Simple Operating Procedure
Documentation & Margin
VALUATION
Marketability
Insurance
Godown Pledged Accounts
Pledging of stocks
Unpledged Goods Stored in Pledged Goods Godown
Delivery of Stock Pledged
Submission of Stock Statements
Goods Hypothecated lying with Unhypothecated Goods
Inspection of Stock
SIP
Inspating official comment in SIR
SA
Inspection Charge
2 Topics
What is Buyers Credit
Discontinuation of Letter of Undertaking / Letter of Comfort for Trade Finance
1 Topic
What is Stand By Letter of Credit?
23 Topics
Introduction to Corporate Banking
Meaning and Importance of Corporate Banking
Cash Management
RTGS
NEFT
ECS
Receivables Management
What is Cheque Truncation?
Introduction to Factoring
Functions of Factor
Types of Factoring
Difference between Bill Discounting & Factoring
What is Forfaiting?
Difference between Forfaiting & Export Factoring
Impact of Factoring on Balance Sheet
Trusteeship Services
Debenture Trusteeship
Security Trusteeship
Attorney Ship Services
Custodial Services
Risks associated with Custodial Services
Business Advisory Services
Offshore Banking Services
8 Topics
Introduction to Supply Chain Financing
What is Supply Chain ?
Why Supply Chain Financing is important?
What is Vendor Financing?
What is Vendor Receivable Financing?
What is Dealer Financing?
Advantages of Supply Chain Financing to Bank
Advantages of Supply Chain Financing to OEM Vendor & Dealer
48 Topics
How to establish DP for 1st Time CC release
How to decide on Credit Period ?
Debtors ageing analysis
Retail loan for owner of proprietorship
Whether LC affects MPBF?
Difference between LC&BG
Tax Accounting Treatment
Whether TL repayment is funded by MPBF?
How to understand the movement of Net Working Capital
Analysis of CMA report
DSCR interest Add Bank Confusion
DP For Term Loan
Cash Withdrawal From CC Limit
Advance Received From Customer Impact On Current Ratio
Why Bank Add CC Interest While Calculating DSCR
How To Calculate NWC While TL & WC are Given
How to justify when debtors increases only at end of year
More Tax = More Loan - Myth or Reality?
Why interest on term loan is calculated on average balance?
Difference between Bills Purchased & Bills Discounting
Do you know the power of Cash Discount?
Preference Share Capital - Meaning Features Ads & Cons
Manipulations in Financial Statement & How to become better reader of Financial
What is Mudra Loan?
Why interest is calculated on average balance in term loan projections?
What is Rule 72 114 & 144?
What is CAGR?
Difference between LC & BG
What is LC Bill Discounting?
Preference Share Capital - Meaning Features Ads & Cons
Do you know the power of Cash Discount?
How to identify Manipulations in Financial Statements
What is Nostro Account?
What is difference between Schedule III & VI of Companies Act 2013?
What is the difference between Letter of Comfort & Guarantee?
Why ECGC Cover required?
Part 1 Whether Company can borrow from Directors?
Part 2 Whether company can borrow from Director?
Part 3 Whether company can borrow from Director?
Differences between Co-Applicant & Guarantor
What is EBIDTA?
Is it ok to substitute creditors with CC / OD?
Why Banks are reluctant to fund Receivables from Related Parties?
How Vendor Bill Discounting works?
What are Reserves?
Why interest on CC not considered in DSCR Calculation?
Whether GST on Receivables can be funded in CC?
CC Assessment: Why disparity between Turnover Method and MPBF Method
1 Topic
Bonus Lecture
Banking Credit Analysis Process (for Bankers)
Related Banking Courses
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