Banking Credit Portfolio & Management – Lending to Recovery

Lending Principles| Bank Finance| Ratios| Loan Policy| Risk| Charge on Securities| NPAs| Recovery| Debt Restructuring

Created by: EDUCBA Bridging the Gap
Learn real world skills online

What Will I Learn?

• Principles of Lending: Understand the foundational rules and cardinal principles that govern bank lending, including the importance of liquidity, profitability
• Assessment of Bank Finance: Gain insights into various financing methods, such as working capital and term loans, and learn how to evaluate project reports
• Financial Ratio Analysis: Develop the ability to analyze and interpret different financial ratios to assess a company's financial health and repayment capacity
• Loan Policy Development: Learn about the components of a typical loan policy and how to align policies with regulatory guidelines set by the Reserve Bank
• Credit Monitoring Techniques: Discover effective strategies for monitoring credit, including the use of registers and oversight of borrower accounts
• Documentation and Legal Aspects: Understand the importance of proper documentation, the types of documents required, and the legal considerations
• Credit Risk Management: Explore methods for evaluating and managing credit risk, ensuring that students can identify and mitigate potential risks effectively.
• Creation of Charge on Securities: Learn about the different forms of security that can be used to secure loans, including assignment, lien, hypothecation
• Supervision and Follow-Up: Master the strategies for supervising advances and following up with borrowers to ensure ongoing financial health.
• Understanding Non-Performing Assets (NPAs): Learn the definition of NPAs, the RBI guidelines for asset classification, and provisioning norms
• Preventing Slippage of NPA Accounts: Gain insights into the characteristics of Special Mention Accounts (SMAs) and strategies to prevent accounts from slipping
• Recovery of Advances: Explore non-legal measures for recovery, rehabilitation strategies for distressed units, and the role of legal measures
• Debt Restructuring: Understand the general principles of debt restructuring, including income recognition, asset classification, and key concepts related
• By the end of the course, students will be equipped with the knowledge and practical skills necessary to excel in banking finance, lending decisions.

Requirements

• Familiarity with Financial Concepts: Students should have a foundational knowledge of key financial concepts such as interest rates, loans, and basic accounting principles. Familiarity with financial statements like balance sheets and income statements is advantageous.
• Basic Analytical Skills: Proficiency in analytical thinking and problem-solving skills is essential, as the course involves assessing financial data and making informed lending decisions.
• Computer Skills: Basic proficiency in using computers and financial software applications is recommended. Familiarity with spreadsheet tools (e.g., Microsoft Excel) will be helpful for financial analysis and data management.
• Motivation to Learn: A willingness to engage actively in the course materials and participate in discussions is crucial for a successful learning experience.

Target audience

• Banking Professionals: Individuals currently working in banks or financial institutions, including loan officers, credit analysts, and relationship managers, seeking to deepen their understanding of lending principles and practices.
• Finance Graduates: Recent graduates in finance, economics, or business administration who wish to pursue a career in banking or financial services and want to acquire foundational knowledge in lending.
• Credit Risk Analysts: Professionals involved in assessing and managing credit risk who want to enhance their expertise in evaluating loan proposals and monitoring credit quality.
• Loan Officers: Current loan officers looking to refresh their knowledge of lending principles, assessment techniques, and credit monitoring strategies.
• Financial Consultants: Consultants who advise businesses on financing options and risk management, aiming to strengthen their knowledge of lending and credit practices.
• Entrepreneurs and Business Owners: Individuals seeking financing for their businesses and wanting to understand the lending process, requirements, and how to improve their chances of obtaining loans.
• Students and Learners: Individuals interested in pursuing further studies in finance or banking, looking for a comprehensive overview of lending principles and practices.