IDFC FIRST Bank Credit Manager Interview Questions and Answers

I can process around 20-25 cases on a daily basis depending on the complexity of the cases.

• The number of cases processed depends on the complexity of the cases.

• On average, I can process around 20-25 cases per day.

• I prioritize cases based on their urgency and importance.

SMA in CIBIL study stands for Special Mention Account. DPD stands for Days Past Due.

• SMA is a category in CIBIL report that indicates accounts with delayed payments.

• DPD is the number of days by which a borrower has delayed payment of EMIs or credit card bills.

• SMA accounts have payments overdue between 1-90 days, while accounts with DPD of 90 days or more are classified as NPA.

• Lenders use these parameters to assess the creditworthiness of a borrower before approving a loan or c...read more

Our approval rate is 85% and delinquency rate is 5% for the current product.

• Our approval rate is higher than industry average.

• We have strict credit checks in place to maintain low delinquency rate.

• We continuously monitor and analyze our approval and delinquency rates to make necessary adjustments.

• For example, we recently increased our credit score requirement to reduce delinquency rate.

Credit worthiness can be assessed with income docs by analyzing income stability, consistency, and sufficiency.

• Verify the source of income to ensure it is stable and reliable.

• Check for consistency in income levels over a period of time.

• Assess whether the income is sufficient to cover existing debts and potential new credit obligations.

• Look for any irregularities or discrepancies in the income documentation.

• Consider the type of income (e.g. salary, rental income, investment in...read more

I sanction an average of 50 files per month.

• I typically sanction around 50 files per month.

• The number of files sanctioned can vary depending on the complexity of each case.

• For example, in busier months, I may sanction up to 70 files, while in slower months, it may be closer to 40.

• I prioritize quality over quantity when sanctioning files to ensure accuracy and compliance.

STD in CIBIL stands for 'Standard' and refers to a credit score category indicating a moderate level of creditworthiness.

• STD is one of the credit score categories used by CIBIL, a credit information company in India.

• It represents a moderate level of creditworthiness, indicating that the borrower has a fair credit history.

• Borrowers with an STD rating may have a mix of positive and negative credit behavior.

• Lenders may consider offering loans or credit to individuals with an STD...read more

Financial ratios are essential for credit decisions.

• Liquidity ratios (current ratio, quick ratio) measure a company's ability to meet short-term obligations.

• Profitability ratios (gross profit margin, net profit margin) measure a company's ability to generate profits.

• Debt ratios (debt-to-equity ratio, interest coverage ratio) measure a company's ability to manage debt.

• Efficiency ratios (inventory turnover ratio, accounts receivable turnover ratio) measure a company's ability t...read more

DSCR stands for Debt Service Coverage Ratio and ICE Ratio stands for Interest Coverage Ratio.

• DSCR is a financial ratio that measures a company's ability to cover its debt payments with its operating income.

• It is calculated by dividing the company's operating income by its total debt service.

• A DSCR of 1 or higher indicates that the company is generating enough income to cover its debt obligations.

• ICE Ratio, on the other hand, measures a company's ability to cover its interest ...read more