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 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...
Key Financial Ratios Every Finance Executive Should Track Monthly Vinu: Manu, finance executives track dozens of numbers. Which financial ratios truly matter on a monthly basis? Manu: Monthly tracking should focus on control and early warning, Vinu. You don’t need every ratio—only those that reflect...
Cash Flow vs Profit: What Finance Professionals Must Never Confuse Vinu: Manu, many businesses show profits but still face cash shortages. Why does this happen? Manu: Because profit and cash flow are not the same, Vinu. Profit is an accounting outcome, while cash flow reflects actual money movement....
How Finance Executives Should Read Financial Statements for Decision-Making Vinu: Manu, finance executives look at financial statements all the time. But what’s the right way to read them for decision-making, not just reporting? Manu: That’s the key difference, Vinu. For decision-making, financial s...