Podcast
Questions and Answers
What has changed the banking business environment and given it a new shape?
What has changed the banking business environment and given it a new shape?
- Entry of new banks in the credit market
- Mobile banking and online banking platform (correct)
- Introduction of new financial products
- Focus on financial inclusion
What is a major challenge for a bank in disbursing quality loans?
What is a major challenge for a bank in disbursing quality loans?
- Managing loan recovery procedures
- Evaluating borrowers' creditworthiness
- Determining loan interest rates
- Selecting good/right borrowers (correct)
What is a recent trend in the banking industry?
What is a recent trend in the banking industry?
- Expansion of financial services (correct)
- Reduction in financial services offered
- Focus on traditional banking services
- Decrease in competition among banks
What is a key aspect of a strong credit culture in a bank?
What is a key aspect of a strong credit culture in a bank?
What is a consequence of new banks entering the credit market?
What is a consequence of new banks entering the credit market?
What is the primary focus of capital budgeting in a firm?
What is the primary focus of capital budgeting in a firm?
What does the term 'capital' refer to in the context of capital budgeting?
What does the term 'capital' refer to in the context of capital budgeting?
What is the primary objective of credit planning at the bank level?
What is the primary objective of credit planning at the bank level?
What is the Payback Period (PBP) in capital budgeting?
What is the Payback Period (PBP) in capital budgeting?
What is a key factor to consider when formulating a bank's credit plan?
What is a key factor to consider when formulating a bank's credit plan?
What is the purpose of computing a project's payback period?
What is the purpose of computing a project's payback period?
What is one of the benefits of credit planning at the bank level?
What is one of the benefits of credit planning at the bank level?
What is the key characteristic of capital budgeting?
What is the key characteristic of capital budgeting?
What is the role of prudential regulations in credit planning at the bank level?
What is the role of prudential regulations in credit planning at the bank level?
What is the ultimate goal of credit planning at the bank level?
What is the ultimate goal of credit planning at the bank level?
What is the primary purpose of a bank's financial analysis on a client's historical and projected data?
What is the primary purpose of a bank's financial analysis on a client's historical and projected data?
What happens if the bank finds the financial analysis of a client's projected data to be unsatisfactory?
What happens if the bank finds the financial analysis of a client's projected data to be unsatisfactory?
Why is it important for a bank to consider the socio-economic aspect of a project?
Why is it important for a bank to consider the socio-economic aspect of a project?
What is the final step in the borrower selection process if all aspects of the applicant are satisfactory?
What is the final step in the borrower selection process if all aspects of the applicant are satisfactory?
What is the purpose of a loan structure?
What is the purpose of a loan structure?
What is the implication of a higher Gross Margin ratio?
What is the implication of a higher Gross Margin ratio?
What does a lower SG&A percentage indicate?
What does a lower SG&A percentage indicate?
What is the implication of a higher Return on Assets ratio?
What is the implication of a higher Return on Assets ratio?
What is the implication of a lower Dividend Payout Rate?
What is the implication of a lower Dividend Payout Rate?
What does a higher Net Margin ratio indicate?
What does a higher Net Margin ratio indicate?
What is the primary objective of the discussion between the banker and the customer regarding credit facilities?
What is the primary objective of the discussion between the banker and the customer regarding credit facilities?
What is the significance of the Credit Information Bureau (CIB) report in the credit application process?
What is the significance of the Credit Information Bureau (CIB) report in the credit application process?
What is the primary focus of the bank when sanctioning credit?
What is the primary focus of the bank when sanctioning credit?
What is the difference between preventive and curative measures in credit investigation?
What is the difference between preventive and curative measures in credit investigation?
Why is the selection of a good borrower crucial for the bank?
Why is the selection of a good borrower crucial for the bank?
What is the primary responsibility of the Relationship Manager (RM) during the credit application process?
What is the primary responsibility of the Relationship Manager (RM) during the credit application process?
What is the purpose of the prescribed format provided by the bank for credit applications?
What is the purpose of the prescribed format provided by the bank for credit applications?
Why is it essential for the bank to ensure the repayment of the loan?
Why is it essential for the bank to ensure the repayment of the loan?
What is the significance of credit investigation in the credit application process?
What is the significance of credit investigation in the credit application process?
What is the primary goal of the bank when sanctioning credit?
What is the primary goal of the bank when sanctioning credit?
What is the primary purpose of ratio analysis in financial statements?
What is the primary purpose of ratio analysis in financial statements?
What is the main advantage of using ratio analysis to evaluate a firm's financial performance?
What is the main advantage of using ratio analysis to evaluate a firm's financial performance?
What is an example of a growth ratio, according to Financial Spread Sheet (FSS)?
What is an example of a growth ratio, according to Financial Spread Sheet (FSS)?
What is the benefit of using ratio analysis to evaluate a firm's financial performance?
What is the benefit of using ratio analysis to evaluate a firm's financial performance?
What is the relationship expressed by a ratio in financial analysis?
What is the relationship expressed by a ratio in financial analysis?
