ANZ Operations & Technology Credit Analyst Interview Questions and Answers

It was easy. Just basic Math and DI

Q1. How do you analyse liquidity of a company?
Ans. 
Analyzing liquidity involves assessing a company's ability to meet short-term financial obligations.
• Calculate current ratio (current assets / current liabilities)

• Assess quick ratio (liquid assets / current liabilities)

• Examine cash flow from operations to see if it covers short-term obligations

• Review working capital to determine if there are enough current assets to cover current liabilities
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Q2. Explain LTV and How to you analyse Home loan application?
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LTV stands for Loan-to-Value ratio. Analyzing a home loan application involves assessing the borrower's creditworthiness and the property's value.
• LTV is calculated by dividing the loan amount by the appraised value of the property.

• A lower LTV ratio indicates a lower risk for the lender.

• Analyzing a home loan application involves reviewing the borrower's credit score, income, debt-to-income ratio, employment history, and...read more
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Q1. Formula regarding valuation DCF calculation formula Ratios formula and interpretation
Ans. 
Valuation formulas in credit analysis
• DCF calculation formula is used to estimate the value of an investment based on its future cash flows discounted back to present value

• Ratios formula includes Debt-to-Equity ratio, Current ratio, and Interest Coverage ratio to assess a company's financial health

• Interpretation of ratios involves comparing them to industry benchmarks and historical data
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Q1. They just asked me the introduction and my previous package
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Basic comprehensive english, reasoning etc

Q1. Introduce yourself
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Q2. Why american express
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Q3. Why do you want to switch
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Q4. Have you ever has a conflict with any of your coworker?
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Q5. What are the things you’d want your current manager to improve
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Q1. What is DSCR? How is it important?
Ans. 
DSCR stands for Debt Service Coverage Ratio. It is a financial metric used to evaluate a company's ability to pay its debt obligations.
• DSCR is calculated by dividing a company's operating income by its total debt service obligations.

• A DSCR of 1 or higher indicates that a company is generating enough income to cover its debt payments.

• Lenders often use DSCR to assess the creditworthiness of a borrower before extending a ...read more
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Q2. What ratios are important and why?
Ans. 
Important ratios for credit analysis include debt-to-equity, current ratio, and interest coverage ratio.
• Debt-to-equity ratio: Indicates the proportion of debt used to finance a company's assets. A lower ratio is generally preferred.

• Current ratio: Measures a company's ability to cover its short-term liabilities with its short-term assets. A ratio above 1 is ideal.

• Interest coverage ratio: Shows a company's ability to pay...read more
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Q1. Tell me something about yourself?
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Q2. What did you do in your last organisation?
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Q1. Describe Financial Statement?
Ans. 
Financial statements are documents that provide information about the financial performance and position of a company.
• Financial statements include the balance sheet, income statement, cash flow statement, and statement of changes in equity.

• The balance sheet shows the company's assets, liabilities, and shareholders' equity at a specific point in time.

• The income statement shows the company's revenues, expenses, and profi...read more
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Q2. Tell me about yourself
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Q1. Explain PD and LGD models
Ans. 
PD and LGD models are used in credit analysis to estimate the probability of default and loss given default.
• PD (Probability of Default) model estimates the likelihood of a borrower defaulting on a loan.

• LGD (Loss Given Default) model estimates the amount of loss a lender may incur if a borrower defaults.

• These models are used by credit analysts to assess credit risk and make informed lending decisions.

• PD models often use...read more
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Q2. What is the difference between Basel and IFRS9 norms
Ans. 
Basel norms focus on capital adequacy and risk management for banks, while IFRS9 norms focus on accounting standards for financial instruments.
• Basel norms are set by the Basel Committee on Banking Supervision to ensure banks maintain adequate capital to cover risks.

• IFRS9 norms are accounting standards set by the International Financial Reporting Standards Foundation to address classification and measurement of financia...read more
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Q1. General questions
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Q1. Why do you want to join
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Q1. Mutual funds, OTC, Credit rating
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