Credit Module

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 Course Programme
Overview

Chapter I :
• Understanding the Business Process;
• Identification of need from Financial Statement;
• Mapping customer’s requirement ;
• Selling the correct banking product ;
• Scenario : Identification of Customer’s need

Chapter II:
• Meaning of Working Capital ;
• Assessment of Working Capital Finance :
− Domestic Working Capital :
− Export Finance :
• Scenario / example on Working Capital Assessment

Chapter III :
Credit Appraisal and disbursement
• Starting a new relationship;
• Selection of proper banking :
− Sole, Multiple and Consortium Banking ;
• Process of Credit assessment and types
− MPBF method, Cash budget method and Turnover method
• How to write credit proposal – do’s and don’ts
• Format of the proposal
• Sanction of Loan ;
• Process of execution of documents;
• Process of creation and registration of charge;
• Process of disbursement ;

Test

Monitoring of the exposure :

• Analysis of stock and other periodic statement ;
• Monitoring and early warning signals
• Analysis of Working Capital Account transaction and development of cross selling opportunities for good
accounts

Renewal and Enhancement procedure :

• Analysis of data and increase or decrease of sanctioned limit;
• Collection of data and completion of the process of Renewal and Enhancement ;

Scenario / Example : Importance of monitoring in a weak account;

Test

Chapter IV and V :
Different Working capital products ,their features and applications
• Cash Credit ;
• FCNR(B) Loan ;
Credit Module

• Bill Discounting ;
− Drawer ;
− Drawee;
• Working Capital Demand Loan ;
• Suppliers Credit ;
• Buyers Credit ;
• Commercial Paper;
• MIBOR Linked Debenture;

The selection criteria for use of the above mentioned product and use of the above product for in-
creasing the bank’s business;

End of module Test

 Course Programme
Overview
Chapter VI :
Assessment of Non Fund Based Facilities :
• Letter of Credit ;
− Inland Letter of Credit ;
− Import Letter of Credit ;
• Bank Guarantee ;
− Assessment of Performance Guarantee;
− Assessment of Financial Guarantee;
• Pricing of Letter of Credit and Bank Guarantee;
Operation of Letter of Credit :
• Opening of Letter of Credit :
− Precaution to be taken while opening Letter of Credit :UCPDC 600 provision of opening of Letter of
Credit ;
− Role of Advising Bank and Confirming Bank ;
• Handling of Documents :
− UCPDC 600 provision of handling LC documents ;
− Precaution to be taken for handling documents ;

Types of Letter of Credit and role of banks:

• Back to Back Letter of Credit;
• Transferable Letter of Credit ;
• Red Clause Letter of Credit ;
• Green Clause Letter of Credit ;

Test

Drawing a cash flow from LC operation and linking it with the operating cycle of the customer ;
Operation of Bank Guarantee :
• Opening of Bank Guarantee ;
• How to handle invocation of Bank Guarantee cases;
• Reconciliation of Cash Flow, Operating Cycle from Guarantee operation ;
Concept of Cash management

Test

Chapter VII : Long Term Funding

Term Loan :
• Assessment of Term Loan :
• Improving techniques of Term Loan cash flows :
• Disbursement process of term Loan :
• Monitoring of Term Loan :
• Capturing uncertainties in the project finance :
• Case Study on Term Loan ;

Test

Chapter VIII : Credit Risk

• Definition of Credit Risk
• Sources of Credit Risk ;
Credit Module

• Credit Risk of Large Corporate versus Small and Medium Corporate; ( SME)
• Factors to be looked in for detecting early delinquencies in SME Credit ;
• Importance of good rating and interest rate in the Basel II scenario for a SME borrower;
• Case Study : Finding out the early warning signal;

Final Evaluation Test

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VOIP: +1 (646) 277-4422 Fax: + 91 22 28292445 Email: apurva@silverbrookcenter.com