Cash Flow vs Profit: Why Profitable Businesses Still Default on Loans Vinu: Manu, I often see borrowers showing good profits but still defaulting on loan repayments. How does that happen? Manu: Because profit is an accounting concept, while loan repayment depends purely on cash flow. A business can ...
How Bankers Should Read Financial Statements Beyond the Numbers Vinu: Manu, as bankers we see balance sheets and P&L statements every day. But everyone says we should read financials “beyond the numbers.” What does that actually mean? Manu: It means not stopping at totals and ratios. Financial state...
Should You Buy Digital Gold? SEBI’s Alert Explained Simply Vinu: Manu, I read in BusinessLine that SEBI has warned investors about digital gold. Why is SEBI suddenly concerned? Manu: Good question, Vinu. SEBI noticed a rapid rise in people buying digital gold through online platforms like Google Pay...
Working Capital Assessment for Commission Agents in APMC Markets Vinu: Manu, I’ve got one more doubt. How do banks assess working capital for commission agents in APMC markets, like those dealing in onions or potatoes? Manu: Good question, Vinu. See, commission agents are very different from normal ...
Breaking Into Credit: A Service Officer’s Roadmap to a Banking Career Upgrade Vinu: Manu, I’m currently working as a service officer where I handle both sales and operations. But honestly, I want to move into the credit department. Any idea how I can go about it? Manu: That’s a great move, Vinu. Cre...