ICICI Bank Credit Manager Interview Questions, Process, and Tips

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

Working capital is the difference between a company's current assets and current liabilities.

• Working capital is essential for a company's day-to-day operations

• It indicates the company's liquidity and ability to meet short-term obligations

• Formula: Working Capital = Current Assets - Current Liabilities

• Examples: Cash, accounts receivable, inventory are current assets; accounts payable, short-term debt are current liabilit

Liquidity ratio measures a company's ability to pay off its short-term debts with its liquid assets.

• Liquidity ratio is calculated by dividing liquid assets by current liabilities.

• It shows how easily a company can cover its short-term obligations.

• Common liquidity ratios include the current ratio and the quick ratio.

• A higher liquidity ratio indicates a better ability to meet short-term obligations.