Financial Credit: Meaning & Objectives; Credit Risk; Credit Analysis; Seven C's; Credit Analysis Process; Credit Process; Documentation; Loan Pricing and Profitability Analysis; Regulations. Types of Credit Facilities: Various Types of Credit Facilities – Cash Credit; Overdrafts; Demand Loan; Bill Finance – Drawee Bill Scheme; Bill Discounting. Cash Delivery: Types of Facilities; Modes of Delivery.
Sole Banking Arrangement; Multiple Banking Arrangement; Consortium Lending; Syndication; Credit Thrust; Credit Priorities; Credit Acquisitions; Statutory & Regulatory Restrictions on Advances. Credit Appraisal: Validation of Proposal; Dimensions of Credit Appraisals; Structuring of Loan Documents; Credit Risk; Credit Risk Rating; Credit Worthiness of Borrower; Purpose of Loan; Source of Repayment; Cash Flow; Collateral.
Quasi Credit Facilities: Advantages of Non-Fund Facilities; Various Types of NFB Facilities; Various Types of Letters of Credit; Assessment of LC Limits; Bills Purchase/Discounting under LC; Loan Commitments; Un-funded Lines of Credit and their Characteristics. Various Types of Bank Guarantees: Performance Guarantee; Financial Guarantees; Deferred Payment Guarantees; Types of Performance and Financial Guarantees; Assessment of Bank Guarantee Limits; Period of Claim under Guarantee.
Risk & Uncertainty; Financial Sector; Risk Types. Operational Risk Management: Recruitment & Training; Work Flow Design; Work Flow Documentation; Delegation of Authority; Independent Internal Audit; Independent Compliance Function; Independent Risk Management Function; System Audit; Corporate Governance; Whistle Blower Policy; Risk Management Culture.
Credit Analysis: Importance of Credit Analysis; Stages of Credit Analysis; Profitability Analysis and Pricing of Loans; Credit Risk Analysis (Debt Ratios and Risk of Leverage); Analysis of Working Capital; Liquidity; Operating and Cash Cycle Risk. Credit Rating: Measurement of Risk; Objective of Rating; Internal & External Rating; Model Credit Rating; Methodology of Rating; Internal & External Comparison; Model Rating Formats. Activities 1. Case Analysis: Students will analyze a loan proposal and assess the borrower's creditworthiness using the principles of credit appraisal. 2. Balance Sheet Analysis: Students will analyze a company's balance sheet to evaluate its financial position, liquidity, solvency, and creditworthiness. 3. Ratio Analysis: Students will calculate and interpret key financial ratios to assess credit risk and repayment capacity. 4. Group Discussion: Students will discuss different types of credit facilities, letters of credit, bank guarantees, and operational risk management practices. 5. Presentation: Students will prepare and deliver a presentation on credit rating methods, operational risk management, or loan pricing and profitability analysis.
After completion of the course student will be able to:
This subject is on page 4, 5 of the original AKTU PDF.
