Term Loan Appraisal : Critical Aspects Vinu, a credit analyst, is relatively new to the banking industry and has been assigned to work closely with Manu, an experienced credit manager. They are sitting in the bank's conference room, reviewing a term loan proposal from a potential borrower. Vinu take...
Decoding DSCR Why CC/OD Interest isn't in the Denominator & the Role of the Working Capital Cycle Vinu: Hey Manu, I've been scratching my head over something related to the Debt Service Coverage Ratio (DSCR). Can you help me out? I'm confused about why the interest on cash credit (CC) or overdraft (...
Exploring Hypothecation A Conversational Journey Introduction: Welcome to our conversation on hypothecation! Join Manu, the knowledgeable expert, and Vinu, the curious professional, as we dive into the intricacies of this financial concept. Hypothecation, using assets as collateral for loans, has be...
Credit Ratings Unraveled: A Conversational Expedition into Financial Confidence Introduction: Welcome, readers, to an informative and engaging conversation between two friends, Manu and Vinu, as they delve into the world of credit rating. Manu, a knowledgeable individual, is here to answer Vinu's qu...
Understanding Banks' Margin Application on Current Assets and Verification of Inventory and Receivables Vinu: Hi Manu, I have a question about how banks apply margin on the Current Assets (CA) like inventory and receivables when computing Drawing Power (DP) in Cash Credit (CC) accounts. Can you help...