Punjab National Bank Credit Manager Interview Questions and Answers

The tools of credit analysis include financial statements, credit reports, credit scoring models, and industry research.

• Financial statements provide information on a company's financial health and performance.

• Credit reports show a borrower's credit history and payment behavior.

• Credit scoring models use data from credit reports to assess creditworthiness.

• Industry research helps to understand the borrower's market and co...read more

Important clauses in 3CD for loan sanctioning

• Clause 4 - Purpose of loan

• Clause 5 - Amount of loan

• Clause 6 - Repayment terms

• Clause 7 - Security for loan

• Clause 8 - Interest rate

• Clause 9 - Default and consequences

Profit and loss ratios are financial metrics used to assess the profitability of a company.

• Profit ratio measures the percentage of profit earned on sales.

• Gross profit ratio is calculated by dividing gross profit by net sales.

• Net profit ratio indicates the percentage of net profit earned on sales.

• Operating profit ratio measures the profitability of core operations.

• Return on investment (ROI) is a common profitability rat

Concurrent audit is conducted during the course of business operations, while statutory audit is conducted at the end of the financial year.

• Concurrent audit is performed concurrently with the operations of the organization.

• Statutory audit is conducted to ensure compliance with legal and regulatory requirements.

• Concurrent audit helps in detecting and preventing frauds and errors in real-time.

• Statutory audit provides an ...read more

No, someone earning less than EMI should not take a loan.

• Taking a loan when earning less than the EMI can lead to financial strain and difficulty in repayment.

• It is important to have a stable income that can comfortably cover the loan repayment.

• If someone is already struggling to meet their financial obligations, taking on additional debt can worsen their situation.

• It is advisable to explore alternative options such as...read more

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.

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.