Utkarsh Small Finance Bank Senior Credit Officer Interview Questions and Answers

Q1. What is the difference between OD and VC?
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Q2. How you determine drawing power?
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Q3. What is DLOD?
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Q4. What is Leverage ratio?
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Q5. Why do you what to switch job?
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Q1. Do you have knowledge of banking industry
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Yes, I have knowledge of the banking industry.
• I have a degree in finance and have worked in banking for 5 years.

• I am familiar with banking regulations and procedures.

• I have experience in credit processing and loan approvals.

• I have attended industry conferences and workshops to stay updated on industry trends.
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Q2. Do you know the market
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Yes, I am familiar with the market trends, competitors, and customer preferences.
• I regularly research market trends and competitor activities to stay updated

• I analyze customer feedback and preferences to understand market demands

• I attend industry conferences and networking events to stay connected with market influencers
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Q3. Do you belong to commerce background
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Q4. Have ever seen audited financial statements
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Yes, I have seen audited financial statements during my previous role as a financial analyst.
• Yes, I have reviewed audited financial statements as part of my job responsibilities.

• I have experience analyzing financial data and ensuring accuracy in financial reports.

• I am familiar with the process of auditing financial statements to ensure compliance with regulations and standards.
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Q5. Do you know banking terms
Ans. 
Yes, I am familiar with banking terms.
• I am familiar with terms like APR, overdraft, collateral, and interest rates.

• I understand terms related to credit processing such as credit score, credit limit, and credit utilization.

• I am knowledgeable about terms like debit card, savings account, checking account, and loan.

• I have experience with terms like mortgage, compound interest, principal, and escrow.
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Q1. How do you fund a applicant
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Funding an applicant involves evaluating their creditworthiness and determining the appropriate amount and terms of the loan.
• Evaluate the applicant's credit history, income, and debt-to-income ratio

• Determine the appropriate loan amount based on the applicant's financial situation

• Decide on the terms of the loan including interest rate, repayment period, and collateral requirements

• Obtain necessary documentation such as p...read more
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Q2. Ratios analysis , banking analaysis
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Q1. What is the concept of LTV?
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LTV stands for Lifetime Value, which is the predicted net profit attributed to the entire future relationship with a customer.
• LTV helps businesses understand the long-term value of a customer and make decisions on customer acquisition and retention strategies.

• It takes into account factors such as customer acquisition cost, average purchase value, and customer lifespan.

• For example, if a customer typically makes a $100 p...read more
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Q2. What is DSCR and how do you check loan eligibility for a self employed non professional?
Ans. 
DSCR stands for Debt Service Coverage Ratio. To check loan eligibility for a self employed non professional, you would typically calculate their DSCR.
• DSCR is a financial ratio that measures a company's ability to cover its debt obligations with its operating income.

• To calculate DSCR, you divide the company's net operating income by its total debt service.

• A DSCR of 1 or higher indicates that the company generates enough...read more
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Q3. What is CIBIL and what do you check in detail?
Ans. 
CIBIL is a credit information company that provides credit scores based on an individual's credit history.
• CIBIL stands for Credit Information Bureau (India) Limited.

• It is one of the four credit information companies in India.

• CIBIL collects credit information from banks and financial institutions to generate credit reports and scores.

• Factors checked include payment history, credit utilization, length of credit history, ...read more
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Q4. How do you check eligibility for a salaried employee?
Ans. 
Eligibility for a salaried employee is checked by verifying their employment status, income level, and credit history.
• Verify employment status through pay stubs or employment verification letter

• Check income level through recent pay stubs or tax returns

• Review credit history through credit reports from bureaus like Equifax or TransUnion
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Q5. What is Repo Rate and Reverse Repo Rate
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Repo rate is the rate at which the central bank lends money to commercial banks, while reverse repo rate is the rate at which the central bank borrows money from commercial banks.
• Repo rate is used by the central bank to control inflation and liquidity in the economy.

• Reverse repo rate is used to absorb excess liquidity in the market.

• Repo rate is higher than the reverse repo rate.

• Example: If the repo rate is 5% and the r...read more
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Q6. What are KYC documents? Is PAN card a KYC document ?
Ans. 
KYC documents are documents required for verifying the identity of customers. PAN card is a KYC document.
• KYC documents are Know Your Customer documents used for verifying the identity of customers.

• Examples of KYC documents include Aadhaar card, passport, driver's license, and voter ID card.

• PAN card is also considered a KYC document as it contains details such as name, date of birth, and photograph of the individual.
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Q7. What will you discuss during Personal Discussion (PD) with potential customer and what will you observe during the PD?
Ans. 
During a Personal Discussion with a potential customer, a Credit Manager will discuss the customer's financial situation, credit history, repayment capabilities, and any potential risks. They will observe the customer's communication skills, honesty, and willingness to provide necessary information.
• Discuss the customer's financial situation and income sources.

• Review the customer's credit history and repayment track rec...read more
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Q1. Self introduction
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Q2. About Previous job
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Q3. Job change reason
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Seeking new challenges and growth opportunities in a larger organization.
• Desire for career advancement

• Looking for new challenges

• Seeking growth opportunities

• Interested in larger organization with more resources
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Q4. Policy polrocess related
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IBPS takes test moderate to high

Q1. Assessment of working capital
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Assessment of working capital involves analyzing a company's current assets and liabilities to determine its ability to meet short-term financial obligations.
• Calculate working capital by subtracting current liabilities from current assets.

• A positive working capital indicates the company has enough assets to cover its short-term debts.

• A negative working capital may signal financial trouble and the need for additional fu...read more
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Q2. Why do you wan tot join banj
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Q1. Introduction and knowledge
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Q2. Credit Underwriting
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Q1. About present role
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