Equitas Small Finance Bank Risk Officer Interview Questions and Answers

RBI has issued recent directions on willful defaulters to prevent loan defaults and improve credit discipline.

• RBI has mandated banks to report all willful defaulters to Credit Information Companies (CICs).

• The central bank has also directed banks to publish photographs of willful defaulters in newspapers.

• RBI has set up a Central Repository of Information on Large Credits (CRILC) to track defaulters with exposure of Rs. ...read more

Bank of Maharashtra offers various MSME products to support small and medium enterprises.

• BOM offers MSME loans for working capital, term loans, and project finance.

• They provide customized financial solutions based on the needs of the MSME sector.

• BOM also offers trade finance facilities like letter of credit and bank guarantees to MSMEs.

• The bank has specific schemes like Stand-Up India and Mudra Yojana to support MSMEs.

• ...read more

To analyze a company for a term loan, consider factors like cash flow, debt service coverage ratio (DSCR), financial statements, industry trends, and management quality.

• Examine the company's financial statements to assess its profitability, liquidity, and leverage.

• Calculate the debt service coverage ratio (DSCR) to determine if the company generates enough cash flow to cover its debt obligations.

• Evaluate the company's ...read more

My notice period is 1 month and I am looking for a competitive salary based on my experience and qualifications.

• Notice period is 1 month

• Salary expectations are competitive based on experience and qualifications

VaR is a measure of potential loss in value of a portfolio over a specified time horizon at a given confidence level.

• VaR quantifies the maximum potential loss in value of a portfolio over a specified time horizon at a given confidence level.

• Historical simulation is a method of calculating VaR by using historical data to simulate potential future outcomes.

• VaR helps in assessing and managing market risk by providing an e...read more

Option greeks are measures used to assess the sensitivity of an option's price to changes in various factors.

• Option greeks include Delta, Gamma, Theta, Vega, and Rho.

• Delta measures the change in option price for a $1 change in the underlying asset price.

• Gamma measures the rate of change of Delta.

• Theta measures the change in option price with the passage of time.

• Vega measures the change in option price for a 1% change i...read more

Analyzing a balance sheet involves examining assets, liabilities, and equity to determine financial health.

• Start by calculating the current ratio to assess liquidity

• Examine the debt-to-equity ratio to evaluate leverage

• Analyze the inventory turnover ratio to assess efficiency

• Look at the return on equity to evaluate profitability

• Compare the balance sheet to previous periods and industry benchmarks

• Consider any off-balance...read more