ICICI Bank Credit Manager Interview Questions, Process, and Tips

Credit managers are responsible for overseeing the credit granting process, managing credit risk, and ensuring customers pay on time.

• Evaluate credit applications and determine credit limits

• Monitor customer accounts and ensure timely payments

• Manage relationships with credit reporting agencies and collection agencies

• Develop and implement credit policies and procedures

• Analyze financial data to assess creditworthiness

• Negot

Working capital cycle is calculated by adding the number of days it takes to sell inventory, the number of days it takes to collect receivables, and subtracting the number of days it takes to pay suppliers.

• Calculate average inventory turnover ratio by dividing cost of goods sold by average inventory.

• Calculate average collection period by dividing accounts receivable by average daily credit sales.

• Calculate average payme...read more

CIBIL report is a credit report generated by Credit Information Bureau (India) Limited, containing an individual's credit history.

• CIBIL report is used by lenders to evaluate an individual's creditworthiness before approving a loan or credit card.

• It includes details such as credit score, repayment history, outstanding loans, and credit inquiries.

• A good credit score in CIBIL report indicates a higher likelihood of loan a...read more

Negative cash flow scenarios include high expenses, low sales, delayed payments, and economic downturns.

• High expenses exceeding revenue

• Low sales leading to decreased cash inflow

• Delayed payments from customers affecting cash flow

• Economic downturn impacting overall business performance

Ideal debt equity ratio varies by industry and company, but generally ranges from 0.5 to 2.

• Debt equity ratio is a measure of a company's financial leverage.

• It compares a company's total debt to its total equity.

• A higher debt equity ratio indicates higher financial risk.

• Ideal debt equity ratio varies by industry and company, but generally ranges from 0.5 to 2.

• For example, a technology company may have a higher debt equi...read more

The recent budget focuses on healthcare, infrastructure, and digitalization.

• Increased allocation for healthcare sector

• Focus on building new highways and railways

• Investment in digital infrastructure

• Reduction in customs duty on certain products

• Introduction of new tax regime for small businesses