Credit Analysis & Risk Management

Teacher

skilllabs

COURSE DESCRIPTION

Bank advances are gaining a focus of discussion both at policy making and execution levels in contemporary banking environment. Banks are facing continuous challenges in tackling the NPAs and hence reduced the cost of capital to ease the lending to the various sectors of economy. This course on bank advances and credit analysis is designed to give a micro perspective to learners about key components of lending to retail and corporate customer. It also gives learners an understanding of various retail and corporate lending products before moving to the process of credit analysis. The course is delivered with unique pedagogy where live proposal from the industry is discussed to understand the various underlying concepts of lending.

COURSE OBJECTIVES

The objective of the course is to help participants to understand various banking products on retail and corporate front, mater the risk and credit Processes followed by a banker. It also gives emphasis on developing analytical skills while considering the qualitative and quantitative aspects of a proposal to take the correct decision for better portfolio building and reduced NPA in a banks book. Understanding the documentation and monitoring processes are also key learning objectives of this course.

LEARNING OUTCOMES

Learners are able to:

Develop understanding about key concepts of credit analysis from a micro perspective.
Know various products and processes in retail & corporate lending organizations with team structure and key terms.
Able to take decision on how, whom and what to lend, controlled, monitored and managed manner.
Learns about the regulatory framework of banking operations.

COURSE OUTLINE

Chapter	Topic	Recommended learning Hrs
Introduction to Bank advances / Lending	Lending entities – Banks, Non Banking Finance Companies ( NBFCs), differences, Distribution, areas of operationsCardinal Principles of Lending – Safety, Liquidity, ProfitabilitySectors in which banks provide credit. Retail Lending, Corporate lending, Advances to MSMEs 5 C Model of Credit Analysis	4.5
Scope of Lending, Concept of EMI and Time value of money	Scope of retail credit, Factor contributing to growth of retail credit, Understanding EMI, Time Value of Money and its working on EXCEL	4
Retail Lending Products & Process	Understanding secured and Unsecured lending products and general process of Lending keeping in view the cardinal principles of lending.Understanding the borrower profiles and asset profiles	4
Understanding Key Lending products	Home Loans, Loan Against Property, Taxation in housing loans other forms of retail credit – Vehicle loans, Personal and consumer loans and concept of plastic money	6.5
Plegde, Hypothecation and other charges	Understanding various aspects of mortgage as a charge and security available to banks	2.5
Company advances, Credits to Partnerships, HUF and Trusts	Concept of company and its features, Various categories of companies, partnerships firms, HUF and Trusts, their structure and liabilities.	3.5
Documentation – Conceptual and Practical aspects	Understanding the documentation involved in the lending process according to various assets and profiles. Understanding the liabilities of borrowers and lender, execution, loan agreement, relevance to POA etc	3
Follow Up , Supervision and monitoring of credit facilities	Post sanction process, Understanding delinquent account, NPA and recovery management, legal and non legal ways of recovering money, write offs.	4
Case Study	.Live case study on a sanctioning of a housing finance file – End to End Process	3
	Total Learning Hours	45