ICICI Bank Credit Manager Interview Questions, Process, and Tips

CIBIL is a credit information company that maintains credit records of individuals and companies.

• CIBIL stands for Credit Information Bureau (India) Limited.

• It is a credit information company that collects and maintains credit records of individuals and companies.

• Creditors use CIBIL reports to evaluate the creditworthiness of borrowers before lending money.

• CIBIL reports contain information on credit history, outstanding...read more

Credit Manager should know 3 ratios and its analysis, role of credit manager, cibil and MD of ICICI Bank.

• 3 ratios: Debt-to-Equity, Current Ratio, and Gross Profit Margin. Analysis helps in assessing the financial health of a company.

• Role of Credit Manager: Assessing creditworthiness of potential borrowers, setting credit limits, and managing collections.

• CIBIL: Credit Information Bureau (India) Limited. It is a credit i...read more

Key skills of a credit manager include financial analysis, risk assessment, communication, and negotiation.

• Strong financial analysis skills to evaluate creditworthiness of potential borrowers

• Ability to assess and manage risk effectively

• Excellent communication skills to interact with clients and colleagues

• Negotiation skills to establish favorable terms and conditions

• Knowledge of relevant laws and regulations

• Attention to...read more

The creditability of a borrower can be determined by analyzing their credit history, financial statements, and references.

• Check credit score and credit report

• Analyze financial statements such as income statement and balance sheet

• Verify references provided by the borrower

• Consider the borrower's industry and market conditions

• Assess the borrower's ability to repay the loan

• Evaluate collateral offered by the borrower

The most important ratios to analyze balance sheet and profit loss statement of borrower are liquidity, solvency, and profitability ratios.

• Liquidity ratios measure the borrower's ability to meet short-term obligations

• Solvency ratios measure the borrower's ability to meet long-term obligations

• Profitability ratios measure the borrower's ability to generate profits

• Examples of liquidity ratios include current ratio and qui...read more

The classification of borrower accounts into SMA0, SMA1, and SMA2 is based on the number of days the account is overdue.

• SMA0: Account is not overdue

• SMA1: Account is overdue for 1-30 days

• SMA2: Account is overdue for 31-60 days

Documents required for a term loan file.

• Loan application form

• Income tax returns

• Bank statements

• Financial statements

• Credit report

• Collateral documents

• Legal documents

Repo rate is the rate at which RBI lends money to banks, while reverse repo rate is the rate at which RBI borrows money from banks.

• Repo rate is higher than reverse repo rate

• Repo rate is used to control inflation

• Reverse repo rate is used to control money supply

• Example: If RBI increases repo rate, banks will increase their lending rates to customers