Term Loan Appraisal: Key Mistakes Bankers Make While Evaluating Projects

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Term Loan Appraisal Mistakes: Why Good Projects Turn into Bad Loans Vinu: Manu, while appraising term loan projects, where do bankers usually go wrong? Manu: The first mistake is trusting the project cost and estimates blindly, without validating quotations, capacity and market reality. Vinu: Can yo...

Fund Flow Analysis for Bankers: How to Track Long-Term Financial Health

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Fund Flow Analysis for Bankers: How to Track Long-Term Financial Health Vinu: Manu, bankers focus a lot on cash flow. Why is fund flow analysis still important? Manu: Because fund flow explains movement of long-term funds. It shows how funds were sourced and how they were applied over time. Vinu: Le...

CMA Data Analysis for Bankers – A Practical Step-by-Step Guide to Avoid Credit Mistakes

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CMA Data Analysis for Bankers – A Practical Step-by-Step Guide to Avoid Credit Mistakes Vinu: Manu, CMA data often scares new credit officers. What is its real purpose? Manu: CMA data converts financial statements into a structured credit view. It helps assess working capital need, funding gap, and ...

Working Capital Assessment in Branch Banking – Practical Challenges and Real-World Risks

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Working Capital Assessment in Branch Banking – Practical Challenges and Real-World Risks Vinu: Manu, working capital assessment looks simple on paper, but branches struggle in practice. Why? Manu: Because theory assumes clean data, while branches deal with incomplete records, tax-optimized financial...

Before You Sanction a Loan: The Credit Appraisal Framework Every Banker Must Follow

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Before You Sanction a Loan: The Credit Appraisal Framework Every Banker Must Follow Vinu: Manu, before any loan is sanctioned, what is the fundamental objective of credit appraisal? Manu: To ensure that the borrower has the ability, intent, and cash flow to repay the bank without stress. Vinu: Let’s...