RBL Bank
Indian Oil Corporation Interview Questions and Answers
Q1. Major financial ratios and their implications in credit risk assessment
Financial ratios used in credit risk assessment
Debt-to-Equity Ratio: measures the amount of debt used to finance a company's assets
Current Ratio: measures a company's ability to pay its short-term debts
Interest Coverage Ratio: measures a company's ability to pay its interest expenses
Profit Margin Ratio: measures a company's profitability
Asset Turnover Ratio: measures a company's efficiency in using its assets to generate revenue
Q2. How to assess cash credit account statement
Assessing cash credit account statement involves analyzing the inflow and outflow of funds, identifying any discrepancies, and evaluating the borrower's creditworthiness.
Review the account statement for any irregularities or inconsistencies
Check the borrower's payment history and credit score
Assess the borrower's financial stability and ability to repay the loan
Compare the account statement with the borrower's financial statements and tax returns
Consider any external factors ...read more
Q3. What is asset liability mismatch
Asset liability mismatch is when a company's assets and liabilities have different maturities or interest rates.
Occurs when a company's assets and liabilities have different maturities or interest rates
Can lead to financial instability and liquidity problems
Example: A bank that borrows short-term funds to lend long-term
Can be managed through asset-liability management techniques
Q4. Difference between Financial and Performance BG
Financial BG is for payment obligations while Performance BG is for non-payment obligations.
Financial BG is used to guarantee payment obligations such as loans, taxes, and customs duties.
Performance BG is used to guarantee non-payment obligations such as completion of a project or delivery of goods.
Financial BG is typically issued by banks while Performance BG can be issued by insurance companies or other financial institutions.
Financial BG is usually a fixed amount while Per...read more
Q5. Concept of pre and post shipment facility
Pre and post shipment facilities refer to credit facilities provided to exporters before and after shipment of goods.
Pre-shipment facility is a credit facility provided to exporters to finance the production and processing of goods before shipment.
Post-shipment facility is a credit facility provided to exporters to finance the period between shipment of goods and receipt of payment from the importer.
Pre-shipment facility can be in the form of packing credit, which covers expe...read more
Q6. What is SBLC
SBLC stands for Standby Letter of Credit, which is a financial instrument used to guarantee payment.
SBLC is a type of letter of credit that serves as a backup payment option for the beneficiary in case the buyer defaults on payment.
It is often used in international trade transactions to reduce the risk of non-payment.
The issuing bank guarantees payment to the beneficiary if the buyer fails to fulfill their payment obligations.
SBLCs can be either funded or unfunded, depending ...read more
Top Credit Risk Analyst Interview Questions from Similar Companies
Reviews
Interviews
Salaries
Users/Month