Navigating High TOL/TNW Ratios: Strategies to Strengthen Your Loan Proposal Vinu: Hey Manu, we’ve received an OD loan proposal where the TOL/TNW ratio is quite high, around 14:1. But the thing is, all the other financial ratios are within the benchmark, and overall, the loan proposal looks really go...
Bill Discounting vs. Bill Purchase: Understanding the Key Differences and Risks Vinu: Hey Manu, I’ve been hearing about bill purchase and bill discounting a lot lately, but I’m still not sure what the difference is. Can you explain? Manu: Sure, Vinu! Let's break it down. Bill discounting is when you...
Understanding Loan Equivalent Risk (LER): How Banks Manage Risk Beyond Currency Fluctuations Vinu: Hey Manu, I heard about this "Loan Equivalent Risk" (LER) today, but I’m confused about how it works. Could you explain it with a real example? Manu: Sure, Vinu! Let’s take an example. Imagine ABC Ltd....
Understanding Treasury Yields: A Beginner's Guide to Bond Returns and Market Signals Vinu: Hey Manu, can you explain what a treasury yield is? I've heard about it, but I'm not really sure what it means. Manu: Sure, Vinu! Treasury yield refers to the return an investor gets on a U.S. government bond ...
Credit Appraisal of a Rice Manufacturing Unit: A Comprehensive Guide Vinu: Hi Manu, I’ve been assigned to handle the credit appraisal of a rice manufacturing unit. I’m a bit unsure where to start. Could you help me? Manu: Sure, Vinu. When appraising a rice mill, there are several aspects to consider...