Documente Academic
Documente Profesional
Documente Cultură
Page 1
LOAN POLICY
Credit Risk 4 B 2
=>1.00 2 B 2
12 years 1 B 2
SB 12 2 B 2
15.00 lacs 2 B 2
SB-6 2 B 2
50.00 crores 4 B 2
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LOAN POLICY
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LOAN POLICY
SB-7 2 B 2
BB 3 B 2
Both A & B 1 B 2
WBCC-I 3 B 2
Dilution in security 3 B 2
cover, if any, may
be put up to the
Sanctioning
Authority for
Facility cannot be 3 B 2
put up for sanction
unless CIR has been
obtained
Statement since 1 B 2
opening of account
with transferor bank
to be perused
Both A & B 4 B 2
Only A 3 B 2
90 4 B 2
Both A & B 4 B 2
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LOAN POLICY
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LOAN POLICY
6 2 B 2
9 years 3 B 2
Section 20(3) 2 B 2
Rs. 10 crores 3 B 2
Rs. 10 crores 2 B 2
50% 3 B 2
SB-12 1 B 2
2 months 3 B 2
<=6.00 1 B 2
<=6.00 4 B 2
>=2.75 3 B 2
<=3.00 1 B 2
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LOAN POLICY
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LOAN POLICY
<=3.00 3 B 2
Both A & B 4 B 2
Both A & B 4 A 2
structure covering 3 A 2
delegation of power
to permit such
waivers , they can
give waiver without
considering
commercial
considerations and
careful evaluation
of individual cases
Page 8
LOAN POLICY
45 where the
realisable
value of the
an exposure security
where the an exposure (primary plus
realisable value where the collateral), as
of the security realisable value assessed by
(primary plus of the security the Bank /
collateral), as (primary plus approved
assessed by the collateral), as valuers /
Bank / approved assessed by the RBI's
valuers / RBI's Bank / approved inspecting
inspecting valuers / RBI's officers, is
officers, is ab- inspecting officers, ab-initio not
initio not more is ab-initio not more than
than 10% of the more than 25% of 30% of the
outstanding the outstanding outstanding
What is Unsecured Exposure exposure. exposure. exposure.
46 Prudential
Exposure Limits
are the limits
expressed as
percentage of IPEL) based on IPEL) based
What is Internal Prudential the Bank’s Internal Credit on external
Exposure Limit (IPEL)? Capital Funds. Rating Credit Rating
47 the guiding Company
principle being does,t
commonality of de-facto control of belongs to
management the affairs of the the holding
How Group/ Connected Company are and effective company is naot a company
defined by regulator control determining fact group
48 Large
borrower is
Large borrower defined as a
is defined as a Large borrower is borrower to
borrower to defined as a whom the
whom the borrower to whom Bank’s
Bank’s exposure the Bank’s exposure
exceeds 10 % of exposure exceeds exceeds 20 %
How Large Borrower are defined by the Bank’s 15 % of the Bank’s of the Bank’s
regulator capital funds capital funds capital funds
49 credit exposure credit exposure
(The sanctioned and investment
limits or exposure. (The
outstandings, sanctioned limits
whichever are or outstandings,
higher,) fully whichever are investment
drawn TL o/S higher,) fully exposure
shall be drawn TL o/S shall shall be
How exposure is defined in loan reckoned as the be reckoned as the reckoned as
policy? exposure exposure the exposure
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LOAN POLICY
1 A 2
an exposure where
the realisable
value of the
security (primary
plus collateral), as
assessed by the
Bank / approved
valuers / RBI's
inspecting officers,
is ab-initio not more
than 140% of the
outstanding
exposure.
A&B 4 A 2
1 A 2
Associate Company
does,t belongs to
the holding
company group
1 A 2
Large borrower is
defined as a
borrower to whom
the Bank’s exposure
exceeds 18 % of the
Bank’s capital funds
2 A 2
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LOAN POLICY
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LOAN POLICY
Investments in 1 A 2
shares and
debentures of
companies,
Investments in PSU
bonds
all of above 4 A 2
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LOAN POLICY
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LOAN POLICY
1&3 4 A 2
1 A 2
Exposure above 2 B 2
Rs.1000 Cr
3 B 2
Non-Performing
Assets, and assets
under stress
(including SMA),
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LOAN POLICY
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LOAN POLICY
1&2 4 A 2
we can grant 1 A 2
advances against
shares of holding
companies ,
statutory provisions
regarding this
contained in
Sections 19(2) and
19(3) of the
Companies act
1956 must be
strictly observed.
require permission 2 M 2
of sanctioning
authority
Rs.25 Lacs 2 M 2
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LOAN POLICY
63 Under norms for takeover of Rs.10 Lacs Rs.1 Lac Rs.5 Lacs
advances under Agriculture
segment (other than Agro based
industries )ATL– for Allied
Activities eligible for takeover,
subject to The minimum amount
eligible for takeover would be
64 advances under Agriculture Rs.10 Lacs Rs.1 Lac Rs.2 Lacs
segment (other than Agro based
industries ) ATL for other than
allied activities eligible for
takeover, subject to The
minimum amount eligible for
takeover would be
65 Under norms for takeover of Rs.1 Cr Rs.2 Cr Rs.5 Cr
advances under Agriculture
segment (other than Agro based
industries ) Maximum amount
eligible for takeover would be
66 guidelines on guidelines on guidelines on
Large Exposure Large Exposure Large
Framework (LEF) Framework (LEF) Exposure
to be to be implemented Framework
In order to align the exposure implemented with effect from (LEF) to be
norms for Indian banks with the with effect from 01.04.2019. implemented
BCBS standards, RBI has issued 01.04.2018. with effect
guidelines on Large Exposure from
Framework (LEF) 01.04.2020.
67 sum of all exposure is
exposures of a defined as
Bank to a Large exposure is the sum of all
counterparty or defined as the sum exposures of
a group of of all exposures of a Bank to a
connected a Bank to a counterparty
counterparties is counterparty or a or a group of
equal to or group of connected
above 10% of connected counterpartie
Bank’s eligible counterparties is s is equal to
capital base. equal to or above or above 10%
i.e., Tier I 10% of Bank’s of Bank’s
capital. (instead eligible capital eligible
of total capital base. i.e., Tier I capital base.
How Large exposure has been funds as capital+ Tier 2 (total capital
defined hitherto). Capital funds ).
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LOAN POLICY
Rs.25 Lacs 1 M 2
Rs.25 Lacs 3 M 2
Rs10 Cr 2 M 2
guidelines on Large 2 M 2
Exposure
Framework (LEF) to
be implemented
with effect from
01.09.2018.
1 A 2
Large exposure is
defined as the sum
of all exposures of a
Bank to a
counterparty or a
group of connected
counterparties is
equal to or above
15% of Bank’s
eligible capital
base. i.e., Tier I
capital. (instead of
total capital funds
as hitherto).
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LOAN POLICY
68 Specified Borrower under a. Rs. 25,000 Rs. 25,000 Crs at Rs. 15,000
Enhancing credit supply for large Crs at any time any time during FY Crs at any
borrowers through market during FY 2017- 2017-18 time during
mechanism are defined by RBI 18 b. Rs. FY 2018-19
As per guidelines, if any unit is 15,000 Crs at
having Aggregate Sanctioned any time during
Credit Limit (‘ASCL’) of FY 2018-19
more than________ it will be c. Rs. 10,000
considered as Specified borrower Crs at any time
from April 1,
2019 onwards
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LOAN POLICY
aggregate of the 1 M 2
fund based credit
limits sanctioned to
a borrower by the
banking system.
110% 1 M 2
40% 3 M 2
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LOAN POLICY
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LOAN POLICY
5%,10% 4 M 2
150% 1 M 2
20%, Yearly 2 M 2
1% 1 M 2
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LOAN POLICY
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LOAN POLICY
10,10 4 M 2
40% 4 M 2
Half yearly 3 M 2
80% 1 M 2
Page 24
SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
Choice 3 (Max. 1000 Choice 4 (Max. 1000 Right Ans Category( Chapter
Characters) Characters) (Numeric) B-Basic, Number
M-Medium, (Numeric)
A-Advance,
S-Situational,
G-Grace)
Maintenance Cell at RASME RMSE 1 B 3
Centre
5 Crore 1 Crore 3 B 3
2 Crore 10 Crore 1 B 3
40 25 2 A 3
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
54 Who will do the CRA validation of Risk Rater at Risk Rate at SME
RMSE's proposals at SME Centre RBO Centre
Places?
55 Who will do the CRA validation of Risk Rater at Risk Rate at SME
RMSE's proposals at Non-BPR RBO Centre
Centre?
56 Whether AGM SME Centre will be a Yes. He will be Yes. He will be a
member of RCC? a non Mandatory
mandatory Member
member
57 Who will handle the documentation RMSE AMT Branch
of loan proposals handled by RMSE
at SME Centre places?
58 Who will be responsible for CERSAI RMSE AMT Branch
charge creation for loan proposals
handled by RMSE at SME Centre
places?
59 Who will be responsible for RMSE AMT Branch
disbursement of loan handled by
RMSE at SME Centre?
60 Who take the decision regarding Branch RMSE and Head
referred cheques / temporary SME Centre
overdraft in the advances accounts
handled by RMSE AMT at SME
Centre places?
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
3 4 2 A 3
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
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SME CREDIT DELIVERY MODEL
RBO LHO 1 G 3
Branch RBO 2 B 3
Page 22
PRE SANCTION PROCESS
1 From where we will able to Website of Ministry of SEBI's website Website of RBI
get List of Disqualified Corporate Affairs
Directors?
2 Audited financial submitted by Audited Financial Audited Financial Audited Financial
the companies should Statement filed with Statement filed with Statement filed with
independently verified with RBI Ministry of Finance Registrar of Companies
which document?
3 Turnover of the unit GST / Sales Tax / ROC RBI
mentioned in the audited Excise returns
financial need to be verified
with _______ .
4 For Project Finance, what Whether project cost Debt / equity gearing Whether critical aspect
types of additional due is prima facie proposed and of project, cost of
diligence is required to be acceptable promoters ability to production, profitability,
done? bring the required etc are prima facie in
capital order
5 Capital mentioned in the RBI Audited Financial GST Return
Balance Sheet of a company Statement filed with
needs to be verified with Registrar of
________. Companies
6 Increase in authorised capital e-form SH-7 filed with GST Return RBI
needs to be verified with ROC
________.
7 A company has declared GR Form GST / VAT Return SEBI
domestic sales turnover of
Rs.50 crore. From which
return it can be verified?
8 A company has export sales GR Form / Softex GST / VAT Return SEBI
turnover of Rs.10 crore. From Declaration Form
which return it can be
verified?
9 Purchases mentioned in the GR Form / Softex SEBI Credit Claim in the
audited balance sheet of a Declaration Form GST / VAT Return
company needs to be verified
with ________.
10 Interest payment to outside Quarterly TDS GR Form / Softex Credit Claim in the
borrowings (other than bank Statement Form Declaration Form GST / VAT Return
borrowings ) by a company No.26Q filed with
needs to be verified with Income Tax
________. Department
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PRE SANCTION PROCESS
SEBI 1 B 4
Page 2
PRE SANCTION PROCESS
11 Salary and Wages expenses Credit Claim in the PF / ESI / Quarterly TDS
mentioned in the audited GST / VAT Return Professional Tax Statement Form No.24Q
balance sheet of a company Registers / Returns filed with Income Tax
needs to be verified with Department
________.
12 A company has declared net Credit Claim in the PF / ESI / Income tax return and
profit of Rs.2 crore in the GST / VAT Return Professional Tax other related
audited balance sheet. From Registers / Returns documents submitted to
which return it can be IT Authorities.
verified?
13 Income received by a service PF / ESI / ST-3 / GST return SEBI
provider needs to be verified Professional Tax filed with tax
with ________. Registers / Returns authorities
14 Whether scrutiny of financial It is not required as It is not required as Yes. It is one of
of major associates / sister they are separate per Bank's requirement under
concern / subsidiaries is company guidelines financial due diligence
required to be done for of the borrower.
sanction of credit facilities'?
15 What should be ensured at Financials of the Estimated financials No need for verification
the time of verification of concerns should be to be obtained of financials of the
financials of major of a common date. concerns
associates / sister concern /
subsidiaries?
16 A company has approached Declaration regarding Declaration Declaration regarding
us for sanction of credit whether any credit regarding overdue credit facilities availed
facilities. What declaration we facilities in any bank / statutory payment by its associates and
should obtain from them FI / NBFC and their obligations subsidiaries from
before considering the status. banking system
request?
17 In respect of existing Last 2 years Last 3 years Last 1 year
concerns, how many year's
balance sheet required for
considering sanction of credit
facilities?
18 What documents needs to be Income Tax / Wealth Salary slip and Bank Details of movable and
obtained from individual Tax Assessment Account Statement immovable properties.
guarantor for due diligence? Order of last 6 months Details of Liabilities with
its terms and conditions.
Page 3
PRE SANCTION PROCESS
2 and 3 Both 4 A 4
GR Form / Softex 3 B 4
Declaration Form
GR Form / Softex 2 B 4
Declaration Form
No Balance sheet 2 M 4
is required
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PRE SANCTION PROCESS
21 A retail trading unit was No. It is not required. It is not mandatory. Yes. i-Probe search
enjoying a cash credit limit of should be done to check
Rs.20 lacs with out branch. whether the unit /
The unit closed its account borrower / guarantor is
with full repayment and not linked to any loan in
requested for issue of 'No any branch of the Bank.
Dues Certificate'. Whether the
branch is required to search i-
Probe data before issuing 'No
Dues Certificate'?
22 i-Probe search is mandatory Limit below Rs.10 Limit of Rs.10 lacs Limit of Rs.5 lacs and
for all loans for lacs above
_____________ in the non-
individual category.
23 Report from only one Credit Limit above Rs.10 Limit upto Rs.10 lacs Rs.5 lacs and above
Information Company is lacs
required to be obtained for
_____________ for secured
advances under SME
Segment.
24 Report from only one Credit Limit upto Rs.3 lacs Limit above Rs.3 Rs.5 lacs and above
Information Company is lacs
required to be obtained for
_____________ for
unsecured advances under
SME Segment.
25 Report from two Credit Limit upto Rs.3 lacs Limit above Rs.3 Rs.5 lacs and above
Information Companies is lacs
required to be obtained for
_____________ for
unsecured advances under
SME Segment.
26 Report from two Credit Limit above Rs.10 Limit of Rs.10 lacs Limit of Rs.5 lacs and
Information Companies is lacs above
required to be obtained for
_____________ for secured
advances under SME
Segment.
27 Compilation of opinion report Rs.5 lacs Rs.1 lacs Rs.10 lacs
on borrower and guarantor
has been exempted for SME
advances upto _________.
28 Compilation of opinion report Rs.3 lacs Rs.5 lacs Rs.1 lacs
on borrower and guarantor is
mandatory for advances
above _________.
29 What is the periodicity for No periodicity defined At least once a year Once in 2 years
revision of opinion reports
compiled on borrowers and
guarantors?
Page 5
PRE SANCTION PROCESS
Rs.3 lacs 4 B 4
Rs.10 lacs 1 B 4
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PRE SANCTION PROCESS
30 What precaution we should It should be shared It should be shared The estimated means
take at the time of sharing of only on a specific only on the format should not be stated in
Credit information on our required received in prescribed by IBA. absolute terms. It
constituents with other writing from other should be shared by
banks? banks. way of prescribed
rating.
31 Who has established CRILC? SBI RBI SEBI
Page 7
PRE SANCTION PROCESS
ROC 2 B 4
Page 8
ANALYSIS OF FINANCIAL STATEMENT
5 In respect to taxation aspects The Indian Income Tax Partnership firm and its
of a partnership firm, which of Act treats a partnership partners are not taxed
the undernoted statement is firm as a separate seperately.
true? taxable entity.
6 The term 'Joint and Several Proprietorship Firm. Partnership Firm.
liability' is associated with
which of the undernoted
borrowing entity.
7 Which of the undernoted Any partnership A minor has the right to a
statements is/ are correct with agreement by a Minor is share in the property and
respect to 'Minor' as a partner Void. The minor's profits in the firm.
in a partnership firm? guardian has to sign the
deed of partnership on
his/ her behalf.
8 Which statement is true with No registration is Registration for an LLP
respect to registration of an required for an LLP. is optional.
LLP (Limited Liability
Partnership)?
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ANALYSIS OF FINANCIAL STATEMENT
Page 2
ANALYSIS OF FINANCIAL STATEMENT
9 What is the importance of a The provisions of the Lending banker may not
Trust Deed? Trust Deed relating to get protection if the
borrowing from banks / borrowing by the Trust is
FIs must be interpreted beyond the provisions or
in a very strict sense. authority provided by the
Trust Deed.
11 As per Companis Act 2013, It must have a minimum It must have a minimum
what is correct for a Private paid up capital of Rs.1 paid up capital of Rs.2
Limited Company? lakh, a minimum of 2 lacs, a minimum of 2
members and a members and a
maximum of 200 maximum of 100
members. members.
12 How does the Companies Act The new Act defines an The new Act defines an
2013 define an Associate Associate Company Associate Company
Company? (say, A) of another (say, A) of another
Company (say, B) Company (say, B) where
where B exercises B exercises significant
significant control over A control over A (by
(by controlling at least controlling at least 20%
25% of the total share of the total share capital
capital of A, or of the of A, or of the business
business decisions decisions under an
under an agreement). agreement).
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ANALYSIS OF FINANCIAL STATEMENT
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ANALYSIS OF FINANCIAL STATEMENT
15 What are the restrictons for The Bank shall not hold The Bank shall not hold
Banks for holding shares in shares in shares in
companies? any company, whether any company, whether
as pledgee, mortgagee as pledgee, mortgagee
or absolute owner, of an or absolute owner, of an
amount exceeding amount exceeding
thirty per cent of the thirty per cent of the
paid-up share capital of paid-up share capital of
that company or thirty that company or thirty
per cent of its own per cent of its own
paid-up share capital paid-up share capital
and reserves, whichever and reserves, whichever
is less. is more.
16 What is the legal status of the both the proprietorship No question of any legal
proprietor in a proprietorship firm and proprietor in status of proprietor as he
firm? individual capacity are is an individual
considered as same
19 If A Ltd has equity capital of B Ltd is the Holding A Ltd is the Holding
Rs. 4 cr out of which B Ltd. Company of A Ltd. Company of B Ltd.
holds shareholding of Rs. 3 cr,
what is the relationship
between Company B &
Company A?
Page 5
ANALYSIS OF FINANCIAL STATEMENT
Memorandum of Articles of 4 M 5
Association Association
Page 6
ANALYSIS OF FINANCIAL STATEMENT
20 Which of the following Registration with the Partner is not liable for
statement is true in respect to Registrar of Firms is the acts of the firm.
a partnership concern? mandatory.
25 At the time of putting up Less than 6 months old. Less than three years
fixation of reserve price for old.
sale of property under
SARFAESI Act, the valuation
report should be:
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ANALYSIS OF FINANCIAL STATEMENT
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ANALYSIS OF FINANCIAL STATEMENT
28 Can a laminated original title If laminated original title Laminated title deeds
deed be accepted for deeds are considered should not be accepted.
mortgage? in exceptional cases,
such cases should be
treated at par with lost
Title Deeds cases and
the process laid down
for the lost Title Deeds
should be followed.
Page 9
ANALYSIS OF FINANCIAL STATEMENT
No requirement of EC needs to be 2 M 5
obtaining fresh TIR obtained every three
after creation of EM. years.
16.02.2018 Either 2 or 3 4 B 5
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ANALYSIS OF FINANCIAL STATEMENT
33 M/s XYZ Pvt. Ltd. was granted The date of charge is Charge cannot be
credit facilites to the extent of 15.02.2017. created in ROC beyond
Rs. 25.00 crs by SBI and 30 days of creation of
documents executed on charge.
15.02.2017. The charge was
noted with the ROC on
28.03.2017. Which of the
undernoted statement is
correct in this scenario.
35 What type of security interests Only mortgages created All types of mortgages
are required to be filed with by deposit of title deeds. created by the Banks.
CERSAI.
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ANALYSIS OF FINANCIAL STATEMENT
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ANALYSIS OF FINANCIAL STATEMENT
37 If a guarantor expires, what is The legal heirs of the Legal heirs can be made
the extent of liability of the guarantor liable only after
legal heirs of the deceased are liable only to the execution of proper
guarantor extent of the estate agreement in this regard.
inherited by them from
the
deceased guarantor
unless they undertake
personal obligation in
their personal
capacities by executing
a separate deed of
guarantee or agreement
38 Documents with respect to a Amount of Stamp duty Stamp duty must be paid
credit facility sanctioned to a payable does not vary for documents executed
partnership firm were executed from state to state. on or before 15.03.2017.
on 15.03.2017. Which
statement is true with respect
to stamp duty payable.
39 In respect of Equitable 12 years from the date 3 years from the date
mortgage, limitation period as of creation of mortgage when the mortgage debt
per limitation act is: falls due, i.e. when a
default takes place and
the Bank makes a
demand on the borrower.
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ANALYSIS OF FINANCIAL STATEMENT
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ANALYSIS OF FINANCIAL STATEMENT
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ANALYSIS OF FINANCIAL STATEMENT
50 25 1 B 5
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ANALYSIS OF FINANCIAL STATEMENT
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ANALYSIS OF FINANCIAL STATEMENT
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ANALYSIS OF FINANCIAL STATEMENT
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ANALYSIS OF FINANCIAL STATEMENT
SME 6 SME 10 2 G 5
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ANALYSIS OF FINANCIAL STATEMENT
65 What are the guidelines for Title deeds in vernacular Title deeds in vernacular
accepting a property, whose language not to be language may be
title deeds are in vernacular accepted under any accepted after vetting by
language? circumstances. Law Department.
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ANALYSIS OF FINANCIAL STATEMENT
Demarcation of Demarcation of 4 M 5
property may be property is important
considered while for its identification
accepting the same as and possible
mortgage. enforcement, if
required at a later
date. Further, the
property should be
legally accessible
through normal
carriers to transport
goods to factories /
houses, as the case
may be.
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ANALYSIS OF FINANCIAL STATEMENT
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ANALYSIS OF FINANCIAL STATEMENT
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ANALYSIS OF FINANCIAL STATEMENT
77 Particulars of Equitable 60 45
Mortgage created by
companies/LLPs must be
registered with the Registrar of
Companies within _______
days of their creation as
prescribed by the Companies
Act.
78 Proper due diligence of the Bank’s extant Branches should
mortgagor by branch officials instructions from time to conduct thorough due
is important in ensuring that time in respect of KYC diligence in matters like
there is no fraud in creation of are to be complied in investigation of title to
security. Which of the case of all the properties /
undernoted aspects may be borrowers/mortgagors/ verification of identity of
considered as a part of due mortgagors. borrower and/ or
diligendce? guarantor and more so,
where the mortgagor is
not related to the
business/ family of the
borrower.
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ANALYSIS OF FINANCIAL STATEMENT
30 15 3 B 5
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ANALYSIS OF FINANCIAL STATEMENT
82 Adjusted Tangible Net Worth Net Worth - Investment Net Worth - Intangibles
(TNW) represents the real / in associates /
actual Promoters' Contribution. subsidiaries / JVs etc.
How Adjusted TNW is
calculated?
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ANALYSIS OF FINANCIAL STATEMENT
16 21 3 A 5
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ANALYSIS OF FINANCIAL STATEMENT
85 If the Total of Current Assets is Rs. 26.32 lakh Rs. 25.32 lakh
Rs. 168 lakh and Total Current
Liabilities is Rs. 142.68 lakh,
then what will the amount of
long term funds, which are
supporting the financing of
current assets?
86 Net Working Capital (NWC) Total Current Assets - Long Term Sources -
can be calculated as? Total Current Liabilities Long Term uses
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ANALYSIS OF FINANCIAL STATEMENT
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ANALYSIS OF FINANCIAL STATEMENT
96 What will be the EBIDTA if, Rs. 65.45 lakh Rs. 54.53 lakh
Depreciation is Rs. 12.50 lakh,
Profit Before Tax is Rs. 36.40
lakh, Interest cost is Rs. 16.55
lakh and tax expense is Rs.
10.92 lakh?
97 Which statement is incorrect? Decrease in the level of Increase in the level of
trade payables is inventories is considered
considered as inflow of to be short term use of
cash from operating funds
activities under cash
flow statement
103 Deferred Tax Assets are to be Fixed Assets Non Current Assets
classified as?
104 Disclosure for Related Party AS-18 AS-15
Transactions is mandatory on
the Audited Financial
Statements under which
Accounting Standard (AS)?
105 Financial statements are Management of the Government Authorities
prepared for the use of? business concern
106 Form-II of CMA format is Operating Statement Analysis of Balance
named as? Sheet
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ANALYSIS OF FINANCIAL STATEMENT
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ANALYSIS OF FINANCIAL STATEMENT
107 If the gearing ratio of a unit is Tangible Net Worth of The term liabilities will
less than 1, which statement is the unit will be lower be less than the Tangible
correct? than the Total Outside Net Worth
Liabilities
108 If we have to calculate the cost We have to add the We have to add the
of sale or goods sold, what value of opening stock value of opening stock of
adjustment is required to be of finished goods and SIP and deduct the
done in the cost of production? deduct the value of value of closing stock of
closing stock of finished SIP
goods
109 In the beginning of the Rs. 2.40 lakh Rs. 1.92 lakh
financial year, ABS and
Associates has acquired a
machine at a cost of Rs. 12
lakh. By applying the rate @
20% under WDV method for
charging depreciation, what
will the amount of depreciation
to be debited to P&L account
for the second year?
115 What is the full form of Expenses before Earnings before Interest,
EBIDTA? Interest, Depreciation, Depreciation, Tax and
Tax and Amortisation Amortisation
116 Where the Trade Payables will Current Liabilities Term Liabilities
be classified in the Balance
Sheet?
117 Whether Fund Flow Statement No Yes
is part of Financial
Statements?
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ANALYSIS OF FINANCIAL STATEMENT
Page 34
ANALYSIS OF FINANCIAL STATEMENT
118 How the sales growth is (Last Year Sales - (Last Year Sales -
calculated? Current Year Sales) / Current Year Sales) /
Last Year Sales Current Year Sales
119 The operating income after Rs. 7.50 lakh & Rs. 6.00 Both will be Rs. 7.15
interest of a manufacturing unit lakh lakh
is Rs. 6.35 lakh. During the
financial year, the unit has
booked a profit of Rs. 1.15
lakh on sale of investment and
amortised Rs. 0.35 lakh. What
will be profit before tax and
profit after tax assuming tax
rate @ 20%?
120 Total Outside Liabilities are? Total Liabilities - Term Total of current and term
Liabilities liabilities
121 What are various sources for Other Current Liabilities, Current Liabilities, Short
financing Current Assets? Short Term Bank Term Bank Borrowing,
Borrowing, Net Working Net Working Capital
Capital
122 What is the formula for Current Assets + Current Assets / Current
calculation of Current Ratio? Current Liabilities Liabilities
123 Which is an example of Copyrights Pre-paid expenses
tangible fixed Assets?
124 Which one of the following is Statutory Dues Payable Long Term Deposits
not a Current Liability? received from dealer
125 While preparing fund flow Short Term Source Long Term Surplus
statement, increase in capital
will be considered as?
126 An example of liquidity ratio Current Ratio Fixed Assets Turnover
is? Ratio
127 Cash Flow Statement consists Operating Activities Investing Activities
the cash flows from the …
activities?
128 Cash margin for issuance of Non-Current Assets Current Assets
LC for purchase of Machine, is
to be classified as?
129 Contingent Liabilities on Asset side Liabilities side
account of disputed tax
liabilities will be shown in the
Balance Sheet under?
130 Cost of Sales can be arrived Cost of Production + Cost of Production +
as? SGA Expenses Non Operating
Expenses
131 If Long Term Uses are more Long Term Surplus Long Term Deficit
than the Long Term Sources,
what will be resultant figure
called?
Page 35
ANALYSIS OF FINANCIAL STATEMENT
Rs. 7.15 lakh & Rs. Rs. 6.00 lakh & Rs. 3 G 5
5.74 lakh 4.80 lakh
Page 36
ANALYSIS OF FINANCIAL STATEMENT
132 If we reduce the Non Current Net Working Capital Long Term Surplus
Liabilities from the Non
Current assets, then what we
will get?
133 In the Long Term Debt / EBIDTA as a whole EBIDTA less interest on
EBIDTA ratio, EBIDTA is Term Loans
considered as?
134 Interest Coverage Ratio (ICR) Adjustments Amortization
is calculated by dividing
EBIDTA from Interest
expenses. What does 'A'
represents in EBIDTA?
135 Long Term Sources consist of? Net worth + Term Net Worth
Liabilities
136 One borrower is availing Multiple Banking Consortium Banking
various credit facility from Arrangement Arrangement
various Banks and provided
separate securities to each
Bank on different terms and
conditions. What type of
banking arrangement is this?
137 Out of Operating Profit before Operating Profit after Operating Profit before
Interest/Net Sales and Interest/Net Sales Interest/Net Sales
Operating Profit after
Interest/Net Sales, which is a
better indicator for comparing
two identical units?
138 Profit on sale of investments is Non- Operating Operating Activities
shown in which section of the Activities
Cash Flow Statement?
139 The definition of Current Accounting Standards RBI Master Circular
Assets & Current Liabilities are
available in?
Page 37
ANALYSIS OF FINANCIAL STATEMENT
Page 38
ANALYSIS OF FINANCIAL STATEMENT
144 Why we prepare Fund Flow Its Bank's requirement To know the movement
Statement? of NWC, liquidity,
sources and uses of long
term funds, diversion,
siphoning
145 Working Capital Gap is equal Total Current Assets Net working Capital plus
to? less Net Working other current liabilities
Capital
146 A Company has changed the No impact Cash Accruals will either
method of applying increase or decrease,
Depreciation from WDV to depend upon the case to
SLM. What will the impact on case basis
the Cash Accruals for the
particular year in which,
change happened?
147 A Company has forgot to Earnings will not be Earnings are inflated
record the depreciation in the changes as the
its books. What could be the Depreciation is a non
effects on the earnings of the cash charge
Company?
148 A firm, engaged in the The income generated The income generated
manufacturing of Plastic from investment should from investment should
Bottles, invested Rs. 35 lakh be considered as Non- be considered as
during FY 2015-16 in one of its Operating Income Operating Income
associate concern. During FY
2017-18, the firm has received
an income of Rs. 2.86 lakh
from these investments. What
should be the treatment of this
income while preparing /
validating the operating
statement of the firm?
149 A unit is enjoying CC limit of Yes, as the enhanced No, because the
Rs. 20 lakh and turnover for exposure will be more turnover is less than Rs.
FY 2017-18 was 110 lakh. The than Rs. 25 lakh 200 lakh
unit has approached for
enhancement of Rs. 10 lakh in
CC limit with estimated
turnover of Rs. 150 lakh for FY
2018-19. Whether the Audited
Financial Statements are
required?
Page 39
ANALYSIS OF FINANCIAL STATEMENT
Page 40
ANALYSIS OF FINANCIAL STATEMENT
154 The net tax liabilities for a Deferred Tax Assets Deferred Tax Liability
particular FY as calculated by
the unit is Rs. 163.50 lakh,
whereas the tax payment is
required to be made as per
Income Tax Rules is Rs. 175
lakh for that particular year.
The difference in the tax
liability was on account of
some expenses, which has
been disallowed by the Income
Tax Department. How this
difference of Rs. 11.50 lakh will
be accounted for ?
Page 41
ANALYSIS OF FINANCIAL STATEMENT
Page 42
ANALYSIS OF FINANCIAL STATEMENT
155 The net tax liabilities for a Deferred Tax Assets Deferred Tax Liability
particular FY as calculated by
the unit is Rs. 18.60 lakh,
whereas the tax payment is
required to be made as per
Income Tax Rules is Rs. 23.50
lakh for that particular year.
The difference is on account of
rate of depreciation. How this
difference of Rs. 4.90 lakh will
be accounted for ?
156 The Net Worth (Capital and Net Worth will increase Net Worth will decrease
Reserves) of a company as on by Rs. 135 lakh by Rs. 135 lakh
31.03.2017 was Rs. 965 lakh.
During FY 2017-18, the
Company had issued bonus
shares of Rs. 135 lakh, out of
reserves. What will the impact
on net worth of the Company
as on 31.03.2018, assuming
that there will be no fresh
infusion of capital and no other
increase in reserves during FY
17-18?
157 The trade receivables period The competitors in the Sales are increased on
will be impacted under which market have increase the existing terms
scenario? the credit period
158 What could be the reasons for Increase in the level of Decrease in the level of
negative cash flows from Current Assets Current Liabilities
operating activities?
159 What is the inventory holding 1 Month 1.57 Month
period in months for a unit with
sales of Rs. 49.60 lakh,
inventory of Rs. 6.50 lakh, cost
of goods sold Rs. 39.00 lakh
and trade receivables of Rs.
12.40 lakh?
160 What will be the cash accrual Rs. 2 lakh Rs. 18 lakh
of the a unit if, Sales is Rs.
135 lakh, Loss is Rs. 0.10 lakh
and Depreciation is Rs. 8 lakh.
The unit has paid an interest of
Rs. 4 lakh on term loan.?
Page 43
ANALYSIS OF FINANCIAL STATEMENT
Page 44
ASSESSMENT OF WORKING CAPITAL
1 Working Capital is defined Funds required for Funds required for meeting
as? acquisition of current day-to-day operations like
assets generally for a purchase of raw materials,
period of one operating spares & stores, meeting
cycle manufacturing expenses.
2 Gross Working Capital is Funds required for Total of Balance Sheet
better known as setting up of plant
8 What is the net working 25% of total current 25% of total assets
capital ( margin) assets
requirement under second
method of lending
prescribed by Tandon
Page 1
ASSESSMENT OF WORKING CAPITAL
Page 2
ASSESSMENT OF WORKING CAPITAL
Page 3
ASSESSMENT OF WORKING CAPITAL
Page 4
ASSESSMENT OF WORKING CAPITAL
19 As per the Nayak 10% of the Projected 20% of the Projected Annual
Committee annual sales Gross Sales
recommendations, the
minimum working capital
limits to be sanctioned by
Bank is
20 Working Capital Gap Current assets less Current assets less current
means current liabilities liabilities other than short
term borrowing
21 Cash Budget Method of Sugar Industry Tea Oil industry Tea industry,
assessment of WC Limits Industry, Construction construction industry
is used in: Industry
22 Raw Materials holding Months' cost of Months' Cost of Sales
level is compared in terms Production
23 Stock in process holding Months' cost of Months' Cost of Sales
level is compared in terms Production
of :
24 Finished Goods holding Months' cost of Months' Cost of Sales
level is compared in terms Production
25 Trade Receivables holding Months' cost of Months' Cost of Sales
level is compared in terms Production
of :
26 Trade Payable ( Sundry Months' cost of Months' Cost of Sales
Creditor) holding level is Production
compared in terms of :
27 Advance Received from Months' cost of Months' Cost of Sales
customers holding level is Production
compared in terms of :
28 Advance Paid to Suppliers Months' cost of Months' Cost of Sales
of Raw Materials holding Production
level is compared in terms
Page 5
ASSESSMENT OF WORKING CAPITAL
1:1 0.9:1 2 B 6
Page 6
ASSESSMENT OF WORKING CAPITAL
Page 7
ASSESSMENT OF WORKING CAPITAL
It is estimated to It is estimated to 3 S 6
increase from current increase from
61 days to 75 days current 61 days
to 68 days
10.2 11.2 2 S 6
25% No 3 B 6
interchangeability is interchangeability
allowed when the is allowed when
CRA is SB-10 & the CRA is SB-10
worse & worse
Page 8
ASSESSMENT OF WORKING CAPITAL
34 Under PBS method, which Computation of working Analysis of the funds flow
of the following statement Capital is based upon planned for the current/next
is not relevant, while the borrower’s year
Assessment of working Projected Balance Sheet
capital
37 While assessing the Fund Either as Net worth or Must be knocked off from
requirement of a unit, as Fixed Assets both Net worth and Fixed
Revaluation Reserve, if Assets as it is only a book
any, should be considered entry
as part of ….
38 The FBWC credit 1, lower of the two 5, lower of the two
requirements upto Rs.
……..crores to MSME units
will assessed under
Projected Annual Turnover
(PAT) method as per Nayak
Committee
recommendations. If the
requirement of the unit is
above the requirement as
assessed under PAT
method, the requirement
should be assessed under
both traditional method
based on
production/processing
cycles and the PAT method
and the……………. of the
two assessed limits should
39 The minimum Net Working 25% of the total current No minimum requirement,
Capital under Projected assets to be decided on case to
Balance Sheet method case basis considering other
should be? parameters
Page 9
ASSESSMENT OF WORKING CAPITAL
Page 10
ASSESSMENT OF WORKING CAPITAL
Page 11
ASSESSMENT OF WORKING CAPITAL
105days 90 days 2 M 6
It is estimated to It is estimated to 4 S 6
increase from current increase from
61 days to 75 days current 61 days
to 68 days
1
Making greater use Making greater M 6
of short term finance use of long term
and minimizing net finance and
short term asset. minimizing net 2
decreasing the cash None of these S 6
cycle
1
Yes, the Working No, the Working 1 M 6
Capital Gap can be Capital Gap
bridged by cannot be
borrowing, but only if bridged by
it is short term borrowing as it
would distort the
analysis around
the financial
Page 12
ASSESSMENT OF WORKING CAPITAL
48 Why was the Tandon The calculation was too There was pressure put on
Committee’s measure of old fashioned and the banks by corporates to
Maximum Permissible Indian banks wanted to adopt a more flexible
Bank Finance to calculate adopt a new assessment for working
working capital finance assessment for working capital finance.
changed? capital finance.
54 Why do CMA forms Credit officers and They are very useful in
continue to be used in relationship managers simplifying the
assessment? are familiar with the representation of financial
forms and find them statements, clarifying their
easy to use. content and providing a
clear understanding of the
credit assessment’s
Page 13
ASSESSMENT OF WORKING CAPITAL
1
The minimum The amount S 6
required net working borrowed exceeds
capital exceeds the current liabilities.
actual amount. 2
Liquidity Trade Payables M 6
1
Audited accounts are The amount of M 6
not required from the required working
company. capital is
assessed based
on projected cash
flows and not on
projected levels
of assets and 4
It is not material as Combination of M 6
long as working long- and short-
capital is available. term sources 4
Companies are There have been 2 A 6
familiar with the no other forms
information which issued to be used
needs to be entered by the RBI
in the forms and
provide the required
data.
Page 14
ASSESSMENT OF WORKING CAPITAL
Page 15
ASSESSMENT OF WORKING CAPITAL
Page 16
APPRAISAL OF NFB
1 The Bank Guarantee is Banker and applicant and Banker and Borrower and
a collateral contract, Borrower the beneficiary Guarantor
consequential to a beneficiary
main contract between
the ……….
2 Person to whom the BG Applicant Guarantor Beneficiary Buyer
is given and who has
the right to enforce it,
3 Bank guarantees can Two One Three More than
be classified in ……. Three
Categories
4 BG issued in lieu of Performance Either Financial None of the
advance payment for Guarantee Performance Guarantee above
Raw Material falls or Financial
under….. Guarantee
depending
upon deal
5 Performance BGs 0% 150% 100% 50%
attract Credit
Conversion Factor of….
6 Financial BGs attract 0% 150% 100% 50%
Credit Conversion
Factor of
7 Why proper To increase To increase Both a & b For correct
classification of BGs is BG business commission calculation of
required? Capital
8 Maximum period for 24 months 18 months 36 months Any period
which a BG can be
issued without prior
administrative
9 Normally, BG should 10 7 5 3
not have a maturity of
more than …………
10 Where margin for Need not be Optional Necessary Question of
issuing BG is to be obtained approval does
taken by marking lien not arise as it
on the DP in the cash will constitute
credit account, specific as margin.
approval from the
sanctioning authority is
11 If a bank Guarantee is Asst General Deputy General Chief General
required to be issued Manager General Manager Manager
for a period of 36 Manager
months, Period angle
clearance (PAC)is
required to be obtained
Page 1
APPRAISAL OF NFB
3 B 7
1 B 7
3 M 7
4 M 7
3 M 7
4 M 7
2 B 7
1 B 7
3 M 7
2 M 7
Page 2
APPRAISAL OF NFB
Page 3
APPRAISAL OF NFB
3 M 7
4 M 7
2 M 7
1 G 7
3 G 7
3 A 7
3 A 7
3 M 7
4 A 7
1 M 7
4 M 7
Page 4
APPRAISAL OF NFB
23 A separate claim 1 3 6 12
period not exceeding
----------- months can be
allowed to select
category of
beneficiaries like
24 Which of the following HDFC ICICI Franklin None of the
mutual fund schemes Templeton above
can be considered as
cash margin for Bank
Guarantee
25 Cash margin prescribed 25% 50% 100% No fixed
for Financial BGs is margin is
prescribed, it
depends on
case to case
basis
26 For participating in a Performance Financial Differed None of the
tender process floated Bank Bank payment above is
by Government Guarantee Guarantee Guaranteecorrect
Department, normally
which type of Bank
Guarantee is required
27 Bank Guarantee issued Performance Financial Differed None of the
on behalf of exporters Bank Bank payment above is
favouring the Customs Guarantee Guarantee Guarantee correct
Department under
EPCG scheme is
categorized under
28 Bank Guarantees Performance Financial Differed None of the
towards revenue dues, Bank Bank payment above is
taxes, duties, levies Guarantee Guarantee Guarantee correct
etc. in favour of Tax/
Customs/ Port / Excise
Authorities and for
disputed liabilities for
litigation pending at
29 Bank Guarantees in Performance Financial Differed None of the
respect of raw material Bank Bank payment above is
supply favoring NSIC Guarantee Guarantee Guarantee correct
on behalf of SME
customers is
30 Retention money Performance Financial Differed None of the
guarantees is Bank Bank payment above is
categorized as Guarantee Guarantee Guarantee correct
31 Units of which one of SBI Debts SBI Magnum SBI Magnum Dual
the following schemes Fund Series Gilt Fund Tax gain Advantage
of SBIMF cannot be Fund
accepted as margin
money for Bank
Guarantee issued by us
Page 5
APPRAISAL OF NFB
2 G 7
4 M 7
4 M 7
1 A 7
1 A 7
2 M 7
2 M 7
1 M 7
3 M 7
Page 6
APPRAISAL OF NFB
32 Units of which one of SBI Equity SBI Magnum SBI Magnum SBI Banking &
the following schemes ESG Fund Tax gain Insta Cash Financial
of SBIMF can be Fund Services fund
accepted as margin
money for Bank
Guarantee issued by us
33 The face value of units 100% of the 110% of the 115% of the 125% of the
accepted as the cash margin cash margin cash margin cash margin
equivalent of cash stipulated stipulated stipulated stipulated
margin for NFB
exposures should be
equal to 125% of the
cash margin stipulated
Page 7
APPRAISAL OF NFB
3 M 7
4 M 7
4 M 7
1 G 7
2 G 7
4 M 7
4 M 7
2 B 7
2 G 7
4 A 7
Page 8
APPRAISAL OF NFB
Page 9
APPRAISAL OF NFB
3 A 7
2 M 7
4 S 7
1 M 7
2 S 7
3 A 7
4 A 7
Page 10
APPRAISAL OF NFB
Page 11
APPRAISAL OF NFB
3 M 7
3 M 7
1 M 7
3 S 7
2 S 7
4 S 7
Page 12
APPRAISAL OF NFB
Page 13
APPRAISAL OF NFB
4 S 7
1 B 7
2 B 7
4 B 7
3 B 7
4 M 7
4 M 7
1 M 7
4 M 7
4 M 7
Page 14
APPRAISAL OF NFB
Page 15
APPRAISAL OF NFB
2 M 7
3 M 7
3 M 7
4 M 7
3 M 7
4 M 7
1 A 7
Page 16
APPRAISAL OF NFB
Page 17
APPRAISAL OF NFB
4 A 7
4 A 7
3 A 7
4 A 7
3 A 7
4 A 7
Page 18
APPRAISAL OF NFB
Page 19
APPRAISAL OF NFB
3 S 7
2 S 7
4 S 7
Page 20
APPRAISAL OF NFB
81 The LC stipulates that Yes since 15th Yes as per No, as per Yes since it is
the last date of August is UCP, if expiry UCP 600 only a force
shipment as 15th national date, expiry date majeure
August 2017. Due to holiday then presentation and last date reason so last
national holiday bill of the last date date, last of date of
lading was issued on of date of negotiation shipment can
16th August 2017. presentation negotiation can be be extended
Exporter has presented can be or shipment extended to
the documents to you extended to date is falling next banking
for negotiation. Can next working on a holiday day if that
you negotiate such day then the date date are
documents? will be falling on a
extended to holiday
next working
Page 21
APPRAISAL OF NFB
3 S 7
Page 22
APPRAISAL OF TL
Page 1
APPRAISAL OF TL
2 B 8
3 B 8
2 B 8
2 B 8
1 B 8
1 B 8
4 M 8
2 B 8
1 M 8
4 B 8
1 B 8
1 B 8
3 B 8
Page 2
APPRAISAL OF TL
15 In a term loan proposal, Cost Volume Cost Volume Cost Variation Cost Variation
CVP stands for Production Price Price production
16 The internal rate of Amount of Investment Rate of interest Zero
return is that rate at interest paid quality paid to the
which the sum of the to the bank bank rate at
discounted cash flows or which dividend
net present value is is paid to
17 Higher level of DSCR will Higher Lower Level of DSCR None of the
indicate that the element is not an above
of risk is on the …..side indicator of
18 The information required Fixed Semi Fixed Variable All of the
to calculate Break Even expenses expenses expenses above
analysis is
19 DSCR indicates the Repayment Quantum of Both the above None of the
degree of viability of period annual above
project and is a instalment
determining factor in
20 In the calculation of Sales-variable Depreciation Fixed expenses None of the
break even cost above
point,contribution means
21 In a term loan proposal, Interest ratio Internal rate of Interest rate of Investment
IRR stands for of return return return rate of return
22 Expenses incurred during Pre-operative Preliminary Capital Issue preincorporat
the period between expenses expenses expenses ion expenses
incorporation of the
company and
commencement of
commercial production is
known as
23 ……. of a project means Commercial Technical Financial Managerial
to determine the viablity feasibility Feasibility competency
accuracy of cost
estimates ,suitability of
the envisaged pattern of
financing and general
soundness of the capital
24 Expenses on foreign 1 0
technicians and trainign
expenses if local
technical personnel, can
be included as part of
25 Which of the following is Term Loans Debentures Defferred Internal cash
not a debt component of Payment accruals
the means of financing facilites
26 In a term loan proposal, Equity Debt Equity and or None of the
total cost of the project Debt above
can be financed through
Page 3
APPRAISAL OF TL
2 B 8
4 M 8
2 B 8
4 B 8
3 B 8
1 B 8
2 B 8
1 B 8
3 B 8
1 B 8
4 B 8
3 B 8
Page 4
APPRAISAL OF TL
Page 5
APPRAISAL OF TL
1 B 8
1 M 8
4 M 8
3 B 8
1 M 8
4 B 8
3 A 8
4 M 8
2 M 8
Page 6
APPRAISAL OF TL
Page 7
APPRAISAL OF TL
1 G 8
1 G 8
4 G 8
1 G 8
1 G 8
1 B 8
1 A 8
1 A 8
1 A 8
2 M 8
4 B 8
2 M 8
3 M 8
Page 8
APPRAISAL OF TL
49 Prima facie acceptability Final sanction Examining rejection of the None of the
implies of the required overall loan proposal above
loan accetability of
the proposal in
early stages
50 Which of the factors are Location of Accessibility to Skilled None of the
not considered under plant critical inputs manpower above
technical feasibility
51 Full fledged appraisal is True 0
not required when the
customer requires only
52 Colloboration Technical or Economic or financial or selling or
arrangments generally financial production purchase marketing
53 Estimates of cost needs Over Cost Vetting of cost None of the
to be vetted throughly estimation estimation will will lead to above
primarily because may lead ot also affect accurate
diversion of viability of the estimation of
funds and project working capital
under requirements
estimation subsequently
would result
54 Working capital margin, Net Working Gross Working Total current Promoters
as part of project cost, is Capital Capital assets margin in the
nothing but project
55 Contingency provision 2-5% of the 5-15% of the 5-15% of the 50% of the
could be in the range of firmd up cost firmed up cost non firm cost total project
cost
56 Internal cash accruals Quazi Equity Equity Debt Hybrid
can be considered as
57 Capital subsidy can be Equity Debt Debt or equity Quasi Equity
considered as depending on
timing of
58 Debentures are normally convertible fixed cost non convertible Debt
considered as
59 The primary purpose of ascertain the find out the ascertain the acscertain
calculation of DSCR is to liquidity levels solvency levels viability of the leverage
project levels
60 The life of a project is equal to the the estimated equal to the None of the
life of the duration of its tenure of the above
equipments economically management
productive life
61 Terminal value of the Closing market value residual or WDV of Fixed
project is inventory held of assets at the salvage value assets when
at the time of time of of the assets at the project is
liquidation liquidation of the end of the terminated
the company estimated life
of the project
62 What is true regarding study cushion Degree of It is also called All of the
sensitivty analysis available in resilence CVP analysis above
the project to
withstand
shortfalls
Page 9
APPRAISAL OF TL
2 M 8
4 M 8
2 B 8
1 M 8
1 M 8
1 M 8
3 M 8
2 B 8
1 M 8
4 M 8
3 M 8
2 M 8
3 A 8
4 B 8
Page 10
APPRAISAL OF TL
Page 11
APPRAISAL OF TL
4 B 8
4 B 8
1 A 8
4 M 8
3 B 8
3 B 8
2 M 8
3 S 8
2 A 8
3 A 8
Page 12
APPRAISAL OF TL
73 The following is not true Stipulated D/E The term loan, Normally, the The term loan
in respect of a term loan ratio needs to after sanction, tenure of the can also be
be maintained can be utilised loan should not relleased on
throughout the for any exceed ten reimburseme
implementatio purpose which years nt basis
n period the borrower
deems fit
74 If Fixed cost is Rs 40, 10 units 4 units 2 units 8 units
Variable cost is Rs 6 per
unit , Selling Price is Rs
10 per unit , what is the
break even point?
75 IRR is Indian Railway Internal rate of Internal Indian Rate of
Return return Recurring Return
76 Internal Rate of Return is Highest return Maximum rate at which rate of
for the project possible return the sum of the interest at
on a term loan discounted which then
cash flows is highest
equal to the return on the
investment project is
77 Debentures are normally equity quasi equity neither debt Debt
considered as nor equity
78 After completing Bank should Bank to accept Bank to All of the
commercial viabilty study reject the loan seek more examine above
for a five year term loan, application collateterla increase in
it is found that and go ahead tenure so as to
Avg,GDSCR is 1.15, then obtain a better
79 During financial Credit anlayst Seek more Credit anlayst None of the
feasibility study, it is to ignore and information on to stop further above
observed that the continue with the sources of work and send
promoters have other the appraisal equity and if rejection letter
commitments/other required
investments in the stipulate
pipeline, then suitable
upfront equity
80 A customer walks in and Go ahead with Adopt a Reject the All of the
seeks a term loan for the appraisal cautious proposal above
putting a new textile mill process. approach , straightaway.
in that area. There are 50 seek further
such mills in that area information
and more than 60% of before taking a
them are sick, then final decision
81 A company seeks a ten Reject the Seek additional Discuss with Increase the
year loan at D/E of 4:1 proposal collaterals the promoters tenure of the
for setting up a paper for a better D/E loan
manufacturing facility; ratio say 2:1.
DSCR is below
benchmark level, then
Page 13
APPRAISAL OF TL
2 M 8
1 B 8
2 B 8
3 M 8
4 B 8
3 S 8
2 S 8
2 S 8
3 S 8
Page 14
APPRAISAL OF TL
Page 15
APPRAISAL OF TL
2 S 8
3 S 8
Page 16
CREDIT RISK ASSESSMENT
1 In case an existing units Exit from the Neither renewal Rating should be
enjoying credit facilities exposure nor downgraded to
from us, fails to pass enhancement is worse of actual
entry barrier, what course possible CRA rating or SB-
of action is required 11
2 Under Credit Risk Financial Risk Operational Risk Business &
assessment Industry Risk
exercise(CRA),Units are
not assessed under which
of the following Risk
3 A proposal for sanction of Projected Projected Projected
various limits of ABC Pvt 31.03.2019 31.03.2020 31.03.2021
Ltd is being undertaken
by appraising Officer in
May 2018.The unit will be
involved in manufacturing
of napkin papers. The
project is likely to start
commercial operation by
31/12/2018.The CRA of
the unit will be based on
which of the following
Financial Statements
4 A unit is having ECR of 67 68 69
BB-,given by rating
agency ICRA. The unit has
got total score 69 under
three parameters namely
Financial Risk,
Management Risk &
Business & Industry Risk
based on audited
financials as on
31/03/2017. What is the
5 A new unit involved in SB-3 SB-4 SB-5
manufacturing of cables
and having total exposure
of Rs3 Crs is rated as SB-4
based on balance sheet
dated 31.03.2017.What
will be final rating of the
unit considering New Unit
6 What is the hurdle rating SB-8 SB-10 SB-11
for New Trading/Non
Trading units under CRA
Page 1
CREDIT RISK ASSESSMENT
Management 2 B 9
Risk
None of the 2 S 9
above is
correct
70 3 S 9
SB-6 4 S 9
There is no 2 G 9
hurdle rating
for new Units
Page 2
CREDIT RISK ASSESSMENT
Page 3
CREDIT RISK ASSESSMENT
Personal 4 B 9
None of the 1 G 9
above
Rating will be 4 S 9
downgraded to
SB-16
No CRA is 4 S 9
required as
limit is only Rs
35 lacs and
scoring model
is available for
SME SME
SMART SCORE
Rs 5.00 Crores 4 G 9
SB-7 3 B 9
Services Model 3 B 9
150% 4 M 9
16 4 B 9
Page 4
CREDIT RISK ASSESSMENT
Page 5
CREDIT RISK ASSESSMENT
100% 3 G 9
Credit Risk 4 B 9
One borrower 4 A 9
rating & five
facility rating
SB-15& below 3 M 9
All of the 3 M 9
above
7 4 B 9
Financial 4 M 9
Information
Financial 2 M 9
Soundness
QCA 3 M 9
None of the 1 M 9
above
All of the 3 M 9
above
All of the 4 G 9
above are
approved
rating
All the above 3 G 9
models are
used in both
CRA Regular &
CRA simplified
Risk weighted 4 M 9
Assets
Page 6
CREDIT RISK ASSESSMENT
31 The risk of loss resulting Systemic Risk Credit Risk Operational Risk
from inadequate or failed
internal processes, people
and systems or from
external events is called
32 Customer A and Capital Capital Capital
customer B of a branch is requirement requirement for requirement for
enjoying similar type and for customer customer B is customer A and B
similar amount of limit. A is higher higher than A are similar
The ECR of A & B is BB+ than B
& BBB- respectively,
which of the following
statement is correct
33 A proposal for sanction of Projected Projected Projected
various limits of ABC Pvt 31.03.2019 31.03.2020 30.09.2018
Ltd is being undertaken
by appraising Officer in
May 2018.The unit will be
involved in manufacturing
of moulds. The project is
likely to start commercial
operation by
31/08/2018.The CRA of
the unit will be based on
which of the following
Financial Statements
34 Trigger based dynamic Where total Where total Where total
review is required to be exposure is exposure is exposure is
carried out Rs5.00 Crores Rs10.00 Crores & Rs25.00 Crores &
& above above above
35 Non trigger based Where total Where total Where total
dynamic review is exposure is exposure is exposure is
required to be carried out Rs50.00 Rs100.00 Crores Rs250.00 Crores
Crores & & above & above
above
36 Non trigger based Monthly Quarterly Half yearly
dynamic review is Intervals Intervals Intervals
required to be carried out
37 Based on the Dynamic Downgraded Up graded only Both Downgraded
review, CRA rating can be only & Upgraded
38 Mapping exercise is done Borrower & Internal & Previous year &
to map Facility rating External rating current year
39 For mapping exercise all 2 categories 3 categories 4 categories
the units based on their
exposures are classified
40 Mapping exercise is Quarterly Half yearly Annual Interval
required to be conducted interval interval
at
Page 7
CREDIT RISK ASSESSMENT
Market Risk 3 B 9
None of the 2 S 9
above is
correct
Where total 2 M 9
exposure is
Rs50.00 Crores
& above
Where total 4 B 9
exposure is
Rs500.00
Crores &
above
Annual interval 3 G 9
Neither 1 B 9
Downgraded
nor upgraded
None of the 2 M 9
above is
5 categories 2 M 9
There is no 4 G 9
fixed
periodicity of
mapping
Page 8
CREDIT RISK ASSESSMENT
Page 9
CREDIT RISK ASSESSMENT
Infomerics 4 M 9
Cash flow 4 A 9
50 3 M 9
Down grade 4 M 9
only Borrower
Rating
Country Risk 4 M 9
RMD 3 B 9
Neither 3 S 9
deviation nor
sanction is
required from
a higher
Off Credit 1 G 9
Forward 4 A 9
foreign
currency
perpetual 1 G 9
rating
Page 10
CREDIT RISK ASSESSMENT
51 One of the facilities of a Long Term Medium term Short Term Rating
customer is rated as rating rating
A3,this rating is a
52 Which of the following is RAMIP model Only Borrower Only facility
correct for a construction will be Rating is required rating is required
company having exposure applied to be done to be done
of more than Rs 5 crores
53 The negative effects on Reputational Environment Risk Strategic Risk
capital and earnings due Risk
to business policy
decisions, changes in the
economic environment,
deficient or insufficient
implementation of
decisions, or a failure to
adapt to changes in the
economic environment is
54 The purpose of Risk Avoid Risk Minimize Risk Optimize Risk
management exercise is
55 If a new customer failed Deviation is Deviation is No deviation is
to clear Entry barrier required from required to be envisaged in
under CRA exercise, sanctioning obtained from Entry barrier
authority next higher
56 Which of the following Integrity Compliance of Compliance of
parameters is not one of environment loan policy
the entry barriers to be Regulation and
cleared by borrowers Local laws
under CRA exercise
57 For newly incorporated Audited Projected Provisional
unit where the audited Financial Financials Financials
financials relate to less
than 12 months of
commercial production,
CRA exercise will be done
58 Which of the following CCC=DSO+DI CCC=DSO+ DPO- CCC=DPO+DIO-
best describes the O+DPO DIO DSO
relationship between cash
conversion cycle(CCC)
and Days sales
outstanding(DSO),Days
Inventory
Outstanding(DIO) and
59 A unit total exposure is Annual Half yearly Quarterly Interval
Rs5 Crores and rating is interval interval
SB-12,the CRA exercise is
to be done at
60 For new units to be rated SB-4 SB-5 SB-6
under CRA Regular Non
Trade Model the rating
cap is
Page 11
CREDIT RISK ASSESSMENT
None of the 3 M 9
above is
correct
Both Borrower 4 G 9
& facility
rating is
required to be
Operational 3 M 9
Risk
none of the 3 B 9
above is
None of the 3 S 9
above is
correct
All of the 3 B 9
above are
considered as
entry Barriers
No CRA is 2 G 9
required to be
done in such
cases
CCC=DSO+ 4 A 9
DIO-DPO
None of the 2 G 9
above is
correct
SB-10 2 B 9
Page 12
CREDIT RISK ASSESSMENT
Page 13
CREDIT RISK ASSESSMENT
None of the 3 M 9
above is
correct
3 months 3 B 9
Commercial 2 G 9
credit bureau
(CIBIL
Rs 50 Crores 4 B 9
Financial 1 M 9
information
Financial 2 B 9
information
Credit 2 G 9
Bureau
module
Qualitative 2 S 9
Credit
Assessment
(QCA) module
Qualitative 3 M 9
Credit
Assessment
(QCA) module
Qualitative 3 B 9
Credit
Assessment
(QCA) module
None of the 2 G 9
above
Page 14
CREDIT RISK ASSESSMENT
72 Under Qualitative 10 5 4
Parameter
(ExternalRating)of CRA
exercise the quantum of
maximum score which
73 Cash Credit facilities are Long Term Medium Term Short Term
awarded, which type of
rating by Credit Rating
Agencies
74 If a corporate is having Market Hedge Naturally hedge Artificially Hedge
uncovered receivables to
cover its foreign currency
exposures, then it is
treated as
75 While calculating INR USD EURO
Unhedged foreign
currency
exposure(UFCE),all foreign
currency exposure are to
be converted into which
Page 15
CREDIT RISK ASSESSMENT
3 2 M 9
None of the 1 M 9
above
None of the 2 A 9
above
No conversion 2 A 9
is required,
different
currency
should be
computed
Page 16
PREPARATION OF PROPOSAL
S.No.
1
2
Page 1
PREPARATION OF PROPOSAL
Question
(Maximum 1000 Characters)
Which format will be used for modification in proposal i.e change in T&C/Pricing, Security/Margin etc.
Which format will be used for proposal for exposure above Rs 1 Crore and up to Ra 50 Crores?
Page 2
PREPARATION OF PROPOSAL
Page 3
VARIOUS SME PRODUCT
Page 1
VARIOUS SME PRODUCT
50% of amount in 4 B 11
default subject to
maximum of
Rs.100 lakh
Borrower 4 A 11
30.09.2018 3 B 11
respective LHO on 1 M 11
or before May, 31
of every year till
the end of the
tenure of
guarantee cover
by debit to
borrower’s account
or Branch Charges
A/c, as applicable.
By online 1 B 11
Below Rs 25 lacs 1 G 11
Neither of above 2 G 11
Page 2
VARIOUS SME PRODUCT
Page 3
VARIOUS SME PRODUCT
30th September 2 B 11
Tribes 3 B 11
Minimum – More 4 M 11
than Rs. 10 lakhs
and Maximum – Rs. 1 crore
Only A 3 B 11
All of them 3 M 11
65% 3 B 11
Minimum – More 1 M 11
than Rs. 5 lakhs
and Maximum – Rs. 10crores
Industrial Property 4 A 11
06 yrs 2 G 11
Not required 2 A 11
5 Lakhs G 11
Page 4
VARIOUS SME PRODUCT
Page 5
VARIOUS SME PRODUCT
Margin required is 4 G 11
20% for WC and
33% for TL
Component.
Halfyearly 3 M 11
Operational Data
cum status of
working capital
funds statement
Entry option 3 A 11
15 days 3 M 11
100 Crores 3 B 11
Traditional Method 2 M 11
65% 1 M 11
50% 1 B 11
2 1 B 11
GMU 3 A 11
Below 10 Lakhs 1 G 11
3 M 11
None of the
statement is
correct
Page 6
VARIOUS SME PRODUCT
35
Page 7
VARIOUS SME PRODUCT
On the basis of 4 A 11
actual peak
inventory plus
receivables levels
for the previous 12
months.
2 M 11
Traders
Maximum Rs 20 4 A 11
crores and
minimum amount
is Above Rs 5
crores
3 A 11
None of the
Statements is
correct
3 A 11
None of the
Statements is
correct
4 A 11
For Takeover of
restructuring loan
1 M 11
Rs 15 crores
Not more than 3 4 M 11
Page 8
VARIOUS SME PRODUCT
Page 9
VARIOUS SME PRODUCT
2 M 11
Composite Term
Loan
3 A 11
None of the
Statements is
correct
50% of the total 1 M 11
limit sanctioned
with a maximum of
Rs 5 crores
2 B 11
09 Months
1 M 11
20% of the working
capital facilities
(Fund Based + Non
Fund Based)
Maximum Rs.25 cr.
For a maximum 1 B 11
period of 02
months extendable
up to another 3
months at any one
instance
Nil as the credit 4 M 11
facility to be
covered under
3 A 11
None of the
Statements is
correct
Nil 4 G 11
By borrower and 1 G 11
Bank jointly
Page 10
VARIOUS SME PRODUCT
Page 11
VARIOUS SME PRODUCT
By borrower and 1 M 11
Bank jointly
31/05/2018 3 B 11
None of the 2 B 11
Statements is
correct
Rs 25 Lakhs 2 M 11
50% 2 A 11
120 days 3 M 11
ABL 3 A 11
Page 12
VARIOUS SME PRODUCT
Page 13
VARIOUS SME PRODUCT
Minimum Rs 10 1 M 11
Lakhs and
Maximum Rs 500
Lakhs
25% of the FBWC 2 M 11
limits with
maximum up to Rs
20 lacs
ABLCRE CP 3 G 11
M-dfs 2 S 11
SUI 1 S 11
PMEGP 3 S 11
Page 14
VARIOUS SME PRODUCT
72 M/s ABC ltd is enjoying SME Open term Corporate Loan Term Loan
credit facilities from our Loan
XYZ branch for last 6
years. Now they want a
pre-approved term loan
for setting up of new
machinery and
construction of factory
shed. Under which
scheme bank can offer
desired facility i.e. pre
approved term loan type
73 M/s XYZ requested for Corporate Loan Term Loan General Purpose
sanction of term loan for TL
acquiring patent. Under
which scheme we can
process the request ?
74 M/s ABC Pvt Ltd has EVFS EDFS Cash Credit Limit
been appointed as
authorised distributor of
Maruti Suzuki cars. Our
Bank's which scheme
will be the best option
for the RMSE to tap this
75 Under SME Credit Card 20% of their 25% of the annual 50% of their Gross
Scheme, Working capital annual turnover turnover Income as per IT
Assessment for Returns
Professional & Self
Employed is made as
76 Current ratio of the M/s Corporate Loan SME Open Term Loan General Purpose
XYZ Pvt Ltd is below 1. TL
The unit is facing
liquidity issues. The unit
approaches for bank's
assistance to improve
liquidity. Which scheme
can be helpful in
improving the current
ratio of the company?
77 The owner of the Lease Rental ABL SSBL
building taken on lease discounting
by Multinational (LRD)
Company approaches for
sanction credit facilities
for liquidity mismatch in
his existing trading
unit ? Which scheme will
be the best option for
him to avail the credit
Page 15
VARIOUS SME PRODUCT
General Purpose TL 1 S 11
SCCF 2 S 11
100% of their 4 B 11
Gross Income as
per IT Returns
Working Capital 1 S 11
Demand Loan
EDFS 1 S 11
Page 16
VARIOUS SME PRODUCT
Page 17
VARIOUS SME PRODUCT
LOS PB 2 S 11
Page 18
LEGAL ASPECT OF ADVANCES
Page 1
LEGAL ASPECT OF ADVANCES
3 B 12
3 B 12
2 B 12
3 B 12
3 B 12
1 B 12
2 B 12
1 B 12
4 B 12
1 B 12
Page 2
LEGAL ASPECT OF ADVANCES
12 What is true in case of Account Allocated Both are true None is true
allocated limits should be limits should
opened with not be
same CIF overdrawn
13 As per Audited Balance Rs. 100 lac Rs. 90 lac Rs 120 Lacs Cannot be
Sheet as on 31.03.2018, calculated
total Current Assets level from the given
was Rs. 150 lac. Out of information
which, the chargeable
current assets was 80% of
total current assets. As per
terms of sanction, 25%
margin on chargeable
current Assets has been
stipulated for FBWC limit of
Rs. 100 lac. What would be
the drawing power for the
month of April 2018?
14 What is the basic function To ensure the To ensure the To determine To determine
of credit monitoring? borrower borrower is if the credit what actions
continues to operating facilities are should be
be a good within the being used for taken where
credit risk. credit limits. the intended there is a
purpose cause for
15 What information should
be reviewed in the periodic
progress reports on There are Project reports
implementation of a The project Funding is orders for the have been
project to assess likelihood implementati available to project approved by
of meeting the loan on is on cover any outputs once the lender’s
repayment obligations? schedule. cost overruns. completed. engineer
16 Why should you check for Inventory Higher Excess Inventory pile-
any inventory pile-up pile-up offers inventory inventory, up may be
during unit inspection? additional may pose a when indicative of
business logistical disposed off in adverse
opportunity challenge for bulk, would developments
in terms of the unit in lead to such as
the terms of sudden cash obsolescence,
borrower’s handling/stor inflow which reduced
need for age would cause market
more cash acceptability,
financing imbalance order
cancellation,
speculative
Page 3
LEGAL ASPECT OF ADVANCES
3 B 12
2 S 12
3 M 12
3 M 12
4 M 12
Page 4
LEGAL ASPECT OF ADVANCES
Page 5
LEGAL ASPECT OF ADVANCES
1 S 12
4 M 12
3 M 12
4 M 12
Page 6
LEGAL ASPECT OF ADVANCES
Page 7
LEGAL ASPECT OF ADVANCES
4 M 12
3 S 12
4 M 12
Page 8
LEGAL ASPECT OF ADVANCES
24 Examine the
matter
Stock Audit report of a closely. Have
Borrowing unit mentions a detailed
that the inventory level discussion
shown in the stock with the
statement has been Wait for the borrower and Do nothing
substantially higher than next stock the auditor. because
the actual level found in statement Analyse the reduction in
the audit. Youn have and ask the borrower’s drawing power
observed that the drawing auditor to explanations Immediately would lead to
power works out to be verify the and assess if reduce the irrgularity in
substantially lower and the position with those are drawing the account
account would be rendered reference to justified. power as which may
irregular. What is the most the new Finally, take indicated in ultimately lead
appropriate action need to stock action as the stock to the account
be taken by you? statement appropriate. audit report becoming NPA
25 Credit administration is a It regulates It ensures It facilitates It improves the
critical activity in a bank’s flow of loan that need- building of a bank’s
lending business because funds to the based credit cordial competitive
borrower in lines are relationship position as
accordance sanctioned to with the compared with
with the the borrower borrower and other banks
terms and creates
conditions of goodwill for
loan sanction the bank
26 Why should the stock It is always It enables the It facilitates It is
statement include age- helpful to get bank to enforcement manadatory as
wise break-up of as much identify the of the bank’s per RBI
receivables? information receivables security in guidelines
as possible within and recovery
so as to be outside the proceedings in
ready to sanctioned the event of
meet any cover period. default
future Further, it
requirement gives a sense
of such about the
information pace of
realisation of
receivables
27 One of the key aspects of Estimating Checking if Keeping tab Checking if the
monitoring of a term loan the cost of there are on the salaries borrower is
post commencement of production delays in of key defaulting on
commercial production is submission of executives loan
stock repayments to
statements other lenders
Page 9
LEGAL ASPECT OF ADVANCES
2 A 12
1 M 12
2 M 12
4 M 12
Page 10
LEGAL ASPECT OF ADVANCES
Page 11
LEGAL ASPECT OF ADVANCES
4 M 12
1 M 12
3 M 12
4 M 12
1 M 12
4 M 12
Page 12
LEGAL ASPECT OF ADVANCES
Page 13
LEGAL ASPECT OF ADVANCES
4 M 12
4 M 12
1 M 12
1 M 12
4 M 12
4 B 12
Page 14
LEGAL ASPECT OF ADVANCES
Page 15
LEGAL ASPECT OF ADVANCES
4 M 12
4 B 12
1 B 12
3 B 12
2 B 12
2 B 12
4 M 12
4 M 12
Page 16
LEGAL ASPECT OF ADVANCES
Page 17
LEGAL ASPECT OF ADVANCES
4 M 12
1 B 12
4 M 12
4 M 12
4 M 12
Page 18
LEGAL ASPECT OF ADVANCES
53 Which of the following Each and Before Follow up for All are correct
statement is incorrect in every disbursement timely
respect to the Follow up sanction of loans/ submission of
aspects of Credit should be credit Statements of
Administration reported for facilities, a Stocks and
control certificate Book Debts,
purpose to regarding and their
the next compliance careful
higher with terms scrutiny, for
authority. and correct
conditions of computation
the sanction of Drawing
should be Power
placed before
the branch
head, as per
laid down
54 Which of the statement/s Stock The While All the three
is/are correct in respect to Statements position of allowing statements are
the Stock Statement received movement of drawings in correct
from the stocks with accounts on
Borrower the the basis of
need to be information stock
analyzed and about the statements, it
scrutinized level opening should be
properly. The of stock, level ensured that
information of stock in stocks
submitted and stock out purchased
should be with the under Usance
complete in closing stock LCs are
all respects will have to invariably
analyze to mentioned
arrive to the separately
facts that and no DP is
there are no allocated
slow moving against such
or obsolete stocks. This is
stocks necessary to
against which avert any
allowing possibility of
55 Term Loans, which are once in three once in six once in nine once in twelve
irregular, are required to months months months months
be reviewed
56 Format FSM-7 is known as Format of Format of
Stock Follow up Format of
Statement Register for Inspection
monitoring Register
timely receipt ( Inspection at
of FFRs a glance Inspection
/statements Register ) Report Format
Page 19
LEGAL ASPECT OF ADVANCES
4 M 12
4 M 12
2 B 12
3 G 12
Page 20
LEGAL ASPECT OF ADVANCES
Page 21
LEGAL ASPECT OF ADVANCES
4 G 12
4 B 12
4 B 12
3 M 12
Page 22
POST SANCTION PROCESS
Page 1
POST SANCTION PROCESS
None of the 1 B 13
above
None of the 2 B 13
above
10th 4 M 13
None of the 1 M 13
above
None of the 3 M 13
above
None of the 2 M 13
above
None of the 1 A 13
above
None of the 3 A 13
above
Page 2
POST SANCTION PROCESS
Page 3
POST SANCTION PROCESS
Both 2 and 3 4 A 13
C,A,B 1 A 13
If the realizable 1 A 13
value of security
is more than 10%
of the value
assessed by the
Bank or accepted
by RBI at the
time of last
inspection
If realizable value 1 A 13
of the security as
assessed by the
Bank/ approved
valuers/ RBI, is
not less than
2.5% of the
outstanding in
the accounts
None of the 2 S 13
above
None of the 3 S 13
above
Page 4
POST SANCTION PROCESS
Page 5
POST SANCTION PROCESS
None of the 1 S 13
above
SMA 2 3 S 13
31.03.2018 1 S 13
None of the 3 S 13
above
Doubtful more 4 S 13
than 3 years
6 2 S 13
Page 6
POST SANCTION PROCESS
Page 7
POST SANCTION PROCESS
SMA and 3 G 13
Standard Assets
None of the 2 G 13
above
Page 8
OVERVIEW OF INTERNATIONAL BANKI
Page 1
OVERVIEW OF INTERNATIONAL BANKI
Rs 25 Crores 3 S 14
Australian Dollar 3 B 14
It is eligible to get 4 B 14
PCFC in any of the
above mentioned
currencies
Advances against 4 B 14
exports on
consignment basis.
Page 2
OVERVIEW OF INTERNATIONAL BANKI
8 If the proceeds of export bills Normal rate as Rate applicable on Rate applicable as
are not realised within the applicable to post shipment on Cash Credit
normal transit period in the post shipment finance +2% Limit rate
case of demand bills and finance applicable for the
within due date in the case unit
of usance bills, interest
chargeable for the overdue
9 If export do not materialize Only the Disbursed amount Disbursed amount
at all ,after the disbursement disbursed from EPC account from EPC account
of Export Packing Credit, amount in EPC should be should be
which of the following course account will be recovered and recovered and
of action is correct recovered. rate applicable on rate applicable on
CC advance should CC advance should
be charged from be charged from
date of recovery date of
disbursement
Page 3
OVERVIEW OF INTERNATIONAL BANKI
Disbursed amount 4 M 14
from EPC account
should be
recovered and
rate applicable on
CC advance
+penal interest not
exceeding 2 %
should be charged
from date of
advance for 2 B 14
importer.
supplier to sub- 4 B 14
supplier to manufacture
exporter
exporters with 3 B 14
orders above Rs.
100
360crores.
days. 3 B 14
local funds. 4 B 14
maximum 360 1 B 14
days.
packing credit 4 B 14
may purchase it or 4 M 14
take it for
collection, but
should not refuse
Different branch of 1 G 14
a company will
have different IEC
code
DGFT with 3 G 14
consultation of RBI
DGFT 4 G 14
Page 4
OVERVIEW OF INTERNATIONAL BANKI
Page 5
OVERVIEW OF INTERNATIONAL BANKI
URR725 issued by 2 G 14
ICC Paris
It is a settlement 4 B 14
mechanism for
settling export
when exporter will
receive the money
when the importer
was able to sell the
goods and is most
risky for exporter
The bill is backed 4 S 14
by LC issued by
our correspondent
bank we may
purchase the bill if
all the documents
of LC along with
shipping bill is
submitted by the
exporter and
documents are
complying
presentation
Within 09 months 4 B 14
of export.
There is no 2 M 14
obligation attach
as far as export is
concerned.
Presence of a 2 M 14
Bank guarantee
from International
Bank if the value of
import is
exceeding
$1Million.
exporters who 3 M 14
have availed credit
from banks.
Page 6
OVERVIEW OF INTERNATIONAL BANKI
28 Advance remittance from the advance shipment will be advance does not
importer can be accepted by does not carry made only after exceed 25% of export
an exporter in India provided interest one year from the value.
payment. date of receipt of
29 A bank may refuse to accept when the advance
when . the when the
an export bill for collection customer has documents have documents are
sufficient limits discrepancies received from a
under bill when compared to non customer
discounting letter of credit
facility. requirements.
30 Extension period of credit 180 days 90 days 220 days
for export
31 The standard policy of ECGC buyers failure insolvency of the cancellation of the
covers the risk of to obtain collecting bank import licence in
import license the buyers country.
32 Submission to the bank of USD 10,000. USD 25,000. USD 1,00,000.
the bill of entry as evidence
of import is mandatory
where the value of import
33 The currency in which The country from The country of The arrangement
payment for import is made which the goods origin of goods. between the buyer
depends upon are shipped and seller.
Page 7
OVERVIEW OF INTERNATIONAL BANKI
rate of interest,if 4 M 14
payable, does not
exceed Libor plus
1%.
when the 3 M 14
documents are
received from a
customer.
270 days 2 B 14
USD 1,00,000 in a 3 M 14
year
Page 8
OVERVIEW OF INTERNATIONAL BANKI
38 The Pre-shipment credit is all of the . a and b only a,b and d only
liquated out of (a) proceeds above, a to d
of bills drawn for the export
of same consignment or
some other consignment,
(b) Converting Pre-shipment
credit to Post Shipment
credit,
(c) Balances in EEFC
account,
(d) rupee resources of
exporter representing the
39 If Export does not take place 360 days, date 270 days, date of 270 days, date
for a period of ----- days. of advance advance after 180 days
Such packing credit shall
cease to qualify for rate of
interest on export credit from
40 Pre-shipment credit in LIBOR EURO LIBOR EURIBOR
Foreign currency is allowed
at ----- related interest rates:
41 Pre-Shipment credit in a, b and d only a, b and c only A, c and d only
Foreign currency can be
allowed in (a) US Dollar, (b)
Euro, (c) Pound, (d) Yen, (e)
One of the convertible
42 Advance remittance for USD 100000 USD 200000 USD 500000
import of services, without a
Bank Guarantee, that an AD
can allow, can be up to
43 Advance remittance for USD 100000 USD 200000 USD 500000
import of Goods, without a
Bank Guarantee, that an AD
can allow, can be up to
44 External Commercial 3 years 5 years 7 Years
Borrowings are commercial
loans availed from Non
Resident lenders with
minimum average maturity
45 Who requests for opening of Buyer Importer Supplier
Letter of credit in Foreign
Currency
46 An importer wish to avail LC The Limit A proper analysis LC limits should
Limit for procurement of should be of cash Flow be commensurate
imported raw materials. adequate to pattern of the with borrower’s
While appraising the Limit , facilitate customer should (applicant)
which of the following points procurement of be made to ensure turnover and
should a Credit officer adequate that sufficient working capital
consider for processing quantity of funds are available limits.
Import LC Limit : materials to to meet the
support liability when
uninterrupted payment under the
operation of the LC becomes due.
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OVERVIEW OF INTERNATIONAL BANKI
a, b and c only. 1 M 14
USD 5000000 3 B 14
USD 5000000 2 B 14
10 years 1 M 14
Exporter 2 G 14
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OVERVIEW OF INTERNATIONAL BANKI
49 Which of the following is/are Usance and Usance period Physical Inspection
correct in respect of Sight LCs Limits should not exceed of the unit/activity
Appraisal and Assessment of should be the production is mandatory in
Import LC assessed cycle excepting in respect of Foreign
separately the case of bulk LCs etc
50 Which of the following Meaningful Cash budget It is also to be
Statement is incorrect in analysis of cash should be ensured that the
respect to the opening of LC flow statements obtained, where L/C limits
should be done considered sanctioned for
at the time of necessary, to regular
opening of L/Cs. ensure that the requirements of
borrower would be the borrower such
able to retire the as purchase of Raw
bills on the due Materials should
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OVERVIEW OF INTERNATIONAL BANKI
A longer usance 2 A 14
period would mean
lesser credit period
which implies
availability of
lesser funds than
needed to run the
working capital
cycle. This would
constrain the unit’s
operations and
lead to a shortfall
All of the above 4 M 14
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4 S 15
3 M 15
1 B 15
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6 Action under Section Action under If any one of the Subject to All 1, 2 & 3
13(4) can be initiated Section 13(4) can notices under account are correct.
after giving notice under be initiated after Section 13(2) is remaining
Section 13(2) of 60 days of returned within
SARFAESI Act. Which of issuance of notice undelivered, limitation
the undernoted under action under period there is
statement is true in this Section13(2). Section 13(4) no outer limit
regard? can be initiated for initiation of
after 60 days of action under
publication of Section 13(4)
contents of after issuance
demand notice of notice under
in two Section13(2).
7 After taking possession of 7 days from date 15 days from 10 days from Publication
the secured assets under of possession. date of date of not
Section13(4) of SARFAESI possession. possession. mandatory if
Act, within how many possession
days publication must be notice is
done in two newspapers? received by
8 When security is held by 50% 75% 60% 25%
more than one Secured
Creditor or jointly
financed by Secured
Creditors, action under
section 13(4) of SARFAESI
Act can be taken if it is
agreed upon by the
Secured Creditors,
representing not less
than ________ in value of
9 When action under 30 45 60 90
Section 13(4) of the Act is
taken by the Bank, the
Borrower(s)/Guarantor(s)
may file a Securitisation
Application before the
DRT u/s 17 of the
SARFAESI Act within
__________ days
10 If a Securitisation 30 45 15 60
Application is filed by the
Borrower(s) and
dismissed by the DRT or
if the DRT refuses to pass
an interim order
restraining further action,
the Borrower(s) may
prefer an appeal before
the DRAT u/s 18 of the
SARFAESI Act, within
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3 M 15
2 B 15
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2 M 15
4 B 15
1 B 15
3 M 15
1 M 15
3 M 15
4 G 15
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2 A 15
3 B 15
4 M 15
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22 Which of the statement/ Only recovery Pre Litigation Only 1 is Both 1 & 2
(s) is/ are true in respect cases filed before cases can also correct. are correct.
of settlement under 'Lok court can be be settled.
Adalat' organised by Civil settled.
Court?
23 What is the Bank's Bank should try to Principal More than 50% Compromise
approach in case of recover the amount cannot of interest settlement
Compromise maximum possible be waived should not be may be done
Settlements? dues in order to under waived under only after 2
minimize the Compromise. compromise. years of
sacrifice involved. account being
classified as
24 As per Bank's At least 10% of the At least 5% of At least 15% of At least 7.5%
Compromise Setttlement offer amount may the offer the offer of the offer
Policy, what should be be taken amount may be amount may be amount may
the initial deposit by the taken taken be taken
borrower with the offer
25 What is the treatment of It should be It should be It can be Both 2 & 3
upfront amount received immediatley held in a no- appropriated in are correct.
with the compromise credited to loan lien account on the borrower's
offer letter from the account on receipt. receipt. account if the
borrower? compromise
offer as
proposed by
the borrower is
approved by
competent
authority.
26 Is compromise Not Permitted. Permitted after Rate of interest Both 2 & 3
settlement permitted taking in- on deferred are correct.
with a Wilful Defaulter? principel payment of
Which of the statement/ approval from compromise
(s) is/ are correct? GM. amount in case
of Wilful
Defaulters in up
by 3% than in
normal cases.
27 What do we mean by It is decree by the It is decree by It is decree by It is to be
Consent Decree? Court with consent the Court with the Court with obtained from
of both the parties consent of the consent of appropriate
i.e. Bank & Bank. Borrower only. court
Borrower. subsequent to
failure of
compromise.
28 Which of the statement/ Compromise Compromise Compromise Both 1 & 3
(s) is/ are true in respect proposal may be proposal cannot Settlement are correct.
of compromise proposals taken from be taken from proposals from
from guarantors? guarantor. guarantor. guarantors
should be
treated on par
with proposals
from borrowers.
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1 B 15
2 B 15
4 M 15
2 M 15
1 M 15
4 M 15
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29 Who is the Regulatory Reserve Bank of Insolvency & Securities and National
Authority under the India Bankruptcy Exchange Financial
Insolvency & Bankruptcy Board of India Board of India Regulatory
Code 2016. Authority.
30 As per the Insolvency & NCLAT Supreme Court High Court DRAT
Bankruptcy Code 2016,
appeal against the order
of NCLT lies
with___________ .
31 The CIR process under 1 lakh 10 lacs 25 lacs 5 lacs
the Insolvency &
Bankruptcy Code can be
triggered in the event a
corporate has committed
a default of Rs.
_____________ or more in
32 Under the IBC, who is an Financial Creditor. A supplier of Creditors to Both 2 & 3
operational creditor? any goods or whom are correct.
services to the operational
company. debt is owed
33 A Corporate Insolvency Financial Creditor. Operational Corporate Either 1, 2 or
Resolution Process may Creditor Debtor 3
be initiated by:
34 What are the triggers Where the CIR Creditors The corporate Either 1, 2 or
under which liquidation process fails and representing debtor 3
process may be initiated no resolution plan 75% of the contravenes
under the IBC 2016? is approved by the outstanding the CIR
Committee of financial debt process, in
Creditors(CoC) resolve to which case,
liquidate the anyone
corporate prejudicially
debtor. affected can
apply for
35 What are the rights of a A secured creditor A secured A secured All of the
secured creditor during in the liquidation creditor in the creditor in the above are
liquidation? proceedings may liquidation liquidation correct.
stand within the proceedings proceedings
liquidation process may stand may stand as
outside unsecured
liquidation creditor for
process unrealised
amounts if
proceeds of
secured assets
are not
adequate to
realise the
36 What is the timeline 3 years 2 years 180 days 270 days
prescribed under IBC for
completion of liquidation
process?
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1 B 15
1 B 15
3 B 15
4 M 15
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4 A 15
2 B 15
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37 NCLT is required to 21 7 14 15
accept/ reject the
application filed either by
Secured Creditor,
Operational Creditor or
Corporate Debtor within
38 Insolvency Professional, NCLT accepts the The order of Management is The account
under IBC, will take over application filed liquidation by not taken over of the
management and control either by Secured NCLT. by the Corporate
of the Corporate Debtor Creditor, Insolvency Debtor
immediately after: Operational Professional becomes NPA.
Creditor or under IBC.
39 What is meant by Insolvency is a Insolvency is a Insolvency is a Both 1 & 3
Insolvency? situation where situation where situation which are correct.
liabilities of a assets of a arises after
person/firm exceed person/firm Bankruptcy.
its assets and is exceed its
unable to pay debt liabilities and is
obligations. unable to pay
debt
40 What is true about IUs will be a The records IUs are entities All of the
Information Utilities (IUs) storehouse for available with who will be above are
under IBC? financial the IUs will be registered with correct.
information of utilised to prove and licenced by
companies, LLPs, default, security the IBBI.
partnerships and interest and
individuals under existence of a
the Code. dispute in
respect of a
41 Regarding Corporate CIRP to precede Liquidation can Timeline Both 1 & 3
Insolvency Resolution Liquidation. be ordered by available for are correct.
Process (CIRP) & NCLT without CIRP is 180
Liquidation under IBC, initiation of days which
which of the undernoted CIRP. may be
statements are correct? extended by
NCLT by further
42 A credit facility in the Yes, can be issued No, because the Cant say with Data provided
nature of Term loan was as the total remaining dues available is insufficient
sanctioned to M/s XYZ amount due are less than information. to decide.
and Company to the tune exceeds Rs. 1 lac. 20% of principal
of Rs. 500.00 lacs on plus accrued
11.08.2009. The account interest and
became NPA on SARFAESI Action
27.04.2018. The total is not applicable
amount recoverable from in such case.
the said unit as on
25.05.2018 is Rs. 93.75
lacs. Can a notice under
Section 13(2) be issued,
if the account is
otherwise eligible to be
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1 B 15
1 M 15
4 M 15
4 M 15
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3 B 15
3 M 15
2 S 15
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47 Under the provisions of Borrower may Borrower may Borrower's right Borrower
SARFAESI Act, borrower's redeem the redeem the to redeem the cannot
Right to Redeem back the charged properties charged charged redeem the
charged properties, after at anystage of properties only properties after charged
payment of bank's entire SARFAESI Action before bank's payment of properties
dues, is available upto after payment of action under entire dues is from the Bank
which stage of SARFAESI bank's entire dues. Section 13(4) of limited to after initiation
action? SARFAESI after publication of of SARFAESI
payment of Sale Notice by Action.
bank's entire the Bank.
dues .
48 After taking possession No, it is not Yes, a copy May be It should
under Section 13(4) of required. must be provided after never be
SARFAESI Act, should the provided as per obtaining provided as
borrower provided with a the amended controller's per the
copy of Panchnama & provisions. permission. provisions of
Inventory? the Act.
49 Is it mandatory that the No. It is not It is for the Yes, it is A view may
sale consideration offered mandatory. Authorised mandatory. be taken by
by the proposed Officer to take a the Contolller
purchaser to view. of the branch.
whom the property is to
be sold by private treaty
under the provisions of
SARFAESI Act should be
higher than the reserve
price fixed by the
50 What is the amendment No such Written consent Property must Such sale
carried out for sale by amendment has of mortgagor is be sold only by shall be on
Private Treaty under been carried out. a must before Public Auction. the terms as
SARFAESI Act provisions? selling any may be
property under settled
Private Treaty. between the
secured
creditors and
the proposed
purchaser in
51 What is the maximum 30 days 15 days 3 months 45 days
period permitted under
SARFAESI Act for
payment of entire bid
amount by the successful
52 When the Bank decides 7 15 30 45
to sell the immovable
secured assets through
private treaty
after failure of sale under
public auction, notice of
not less than _________
days to the borrower
before the date of sale
through private treaty is
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2 B 15
3 M 15
4 M 15
3 B 15
2 B 15
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4 M 15
1 G 15
2 B 15
4 B 15
1 B 15
2 B 15
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60 What is rule 8(6) under The authorised The authorised The authorised The
the Security Interest officer shall serve officer shall officer shall authorised
(Enforcement) Rules to the borrower a serve to the serve to the officer shall
2002? notice of 30 days borrower a borrower a serve to the
for sale of notice of 7 days notice of 10 borrower a
immovable for sale of days for sale of notice of 45
secured assets. immovable immovable days for sale
secured assets. secured assets. of immovable
secured
61 What is the timeline No timeline is Civil suit is to be Civil suit is to Civil suit is to
prescribed for filing of prescribed by the filed be filed be filed
suit before Civil Court for Bank. immediately on immediately on immediately
recovery of Bank's dues? approval but in approval but in on approval
any case within any case within but in any
a maximum a maximum case within a
period of 3 period of 45 maximum
months from days from the period of 6
the date of date of months from
approval. approval. the date of
62 What are the timelines Original No timeline is Original Original
prescribed by the Bank Application (OA) is prescribed by Application Application
for filing of Original to be filed in DRT the Bank. (OA) is to be (OA) is to be
Application before the immediately on filed in DRT filed in DRT
DRT? approval but in immediately on immediately
any case within a approval but in on approval
maximum period any case within but in any
of 3 months from a maximum case within a
the date of period of 2 maximum
approval. Where months from period of 6
documents are the date of months from
getting time approval. the date of
barred, Original Where approval.
Application (OA) in documents are
DRT is to be filed 2 getting time
months before barred, Original
expiry of Application
documents. (OA) in DRT is
to be filed 3
63 What is the maximum Rs. 2.00 lacs Rs. 2.50 lacs Rs. 1.50 lacs. There is no
cap for court fee when upper cap
filing recovery suit before towards court
DRT? fee for filing
of recovery
case in DRT.
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2 B 15
1 M 15
3 B 15
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64 What do we mean by the The uncharged The name of the The charged The
term 'Attachment before assets cannot be legal heirs must assets may be uncharged
Judgment'? attached by the be impleaded in attached by the assets may
court for recovery the court case court for be attached
of bank's dues. after death of recovery of by the court
the guarantor. bank's dues. for recovery
of bank's
dues subject
to the
condition that
charged
assets are
insufficient to
cover the
65 In DRT, what is the 30 days 60 days 15 days 45 days
limitation period for
filing an application for
review against an order
of the Tribunal, on
account of some mistake
or error apparent on the
face of the record?
66 What change has been Form I has been Form I has Form I has No
incorporated in Form-I, amended to been amended been amended amendments
i.e. form in which the incorporate the to incorporate to incorporate have been
Original Application is details of the the details of the details of carried out in
required to be filed secured assets. the secured the legal heirs. Form I.
before the Debt assets,
Recovery Tribunal for estimated value
recovery of bank's dues? of the secured
assets, the
details of the
properties or
other assets of
the defendant
known to the
applicant
bank/FI but not
secured or
charged in
67 No appeal shall preferred 50% 75% 100% 60%
by a person against the
order of the Debt
Recovery Tribunal shall
be entertained by the
Appellate Tribunal unless
such person has
deposited _________ of the
amount of debt so due
from the said person as
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2 M 15
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3 G 15
1 M 15
4 B 15
1 B 15
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2 B 15
3 B 15
4 B 15
1 B 15
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