10+ ICICI Bank Branch Credit Manager Interview Questions and Answers

In tax audit report for loan application, I check for compliance, accuracy, consistency, and potential red flags.

• Check for compliance with tax laws and regulations

• Verify accuracy of reported income and expenses

• Ensure consistency with previous tax returns and financial statements

• Look for potential red flags such as large deductions or unreported income

• Consider the overall financial health of the applicant

I will check the applicant's credit score, income, employment history, and debt-to-income ratio.

• Credit score

• Income

• Employment history

• Debt-to-income ratio

Before disbursements, due diligence should be done to ensure the borrower's creditworthiness and ability to repay the loan.

• Verify the borrower's identity and credit history

• Assess the borrower's income and expenses to determine their ability to repay the loan

• Check for any outstanding debts or liens on the borrower's assets

• Evaluate the purpose of the loan and the borrower's business plan

• Ensure compliance with all regulatory requirements and internal policies

• Obtain collateral or...read more

Reserve capital is the amount of funds set aside by a company for specific purposes, while capital reserve is the profit earned by a company that is not distributed to shareholders.

• Reserve capital is a part of the company's share capital that cannot be distributed as dividends to shareholders.

• Capital reserve is created from profits earned by a company and is not distributed to shareholders but kept for specific purposes.

• Reserve capital is a regulatory requirement for companie...read more

If assessee has filed his return in 44AD

• 44AD is a presumptive taxation scheme for small businesses

• The assessee can declare income at 8% of gross receipts

• If the assessee has filed under 44AD, the credit manager should verify the income declared and ensure it is in line with the business activities

• If the income declared is significantly lower than expected, further investigation may be required

Yes, I know how to prepare cash flow statements.

• Cash flow statements show the inflow and outflow of cash in a business.

• They are prepared using the indirect or direct method.

• The indirect method starts with net income and adjusts for non-cash items and changes in working capital.

• The direct method lists all cash receipts and payments.

• Cash flow statements are important for assessing a company's liquidity and financial health.

To analyze a loan file before disbursement, one should check the borrower's credit score, income, employment history, and collateral.

• Check the borrower's credit score to determine their creditworthiness

• Verify the borrower's income to ensure they can repay the loan

• Review the borrower's employment history to assess their stability

• Evaluate the collateral to determine its value and ensure it can cover the loan amount

• Check for any red flags such as past delinquencies or bankruptci...read more

Car loan is a secured loan.

• Car loan is secured by the car itself as collateral.

• If the borrower defaults on the loan, the lender can repossess the car.

• Interest rates on secured loans are generally lower than unsecured loans.

• Examples of unsecured loans include personal loans and credit cards.

CIBIL check includes credit score, credit history, loan repayment behavior, defaults, and outstanding debts.

• Credit score

• Credit history

• Loan repayment behavior

• Defaults

• Outstanding debts

The COVID-19 pandemic has affected various industries, with some being hit harder than others.

• Travel and tourism industry has been severely impacted due to travel restrictions and lockdowns.

• Hospitality industry has also suffered due to closure of restaurants, bars, and hotels.

• Retail industry has seen a shift towards online shopping, with brick-and-mortar stores struggling.

• Entertainment industry has been hit hard with movie theaters, concert venues, and theme parks closed.

• Oil ...read more

Secured loans are backed by collateral while unsecured loans are not.

• Secured loans require collateral such as a house or car to be pledged as security for the loan.

• Unsecured loans do not require collateral and are based solely on the borrower's creditworthiness.

• Secured loans typically have lower interest rates than unsecured loans.

• Examples of secured loans include mortgages and auto loans, while credit cards and personal loans are examples of unsecured loans.

Retail banking assets are financial products and services offered to individual customers by banks.

• Includes savings accounts, checking accounts, personal loans, mortgages, credit cards, and certificates of deposit

• These assets generate revenue for the bank through interest payments and fees

• Banks use retail banking assets to attract and retain customers

A banking company is a financial institution that provides banking services to customers.

• A banking company accepts deposits from customers and provides loans and other financial services.

• Examples of banking companies include JPMorgan Chase, Bank of America, and Wells Fargo.

• Banking companies are regulated by government agencies such as the Federal Reserve and FDIC.

• They play a crucial role in the economy by facilitating transactions and providing credit to individuals and busin...read more