Branch Credit Manager- Credit & Operations Interview Questions and Answers

Major factors considered in credit appraisal

• Creditworthiness of the borrower

• Financial stability of the borrower

• Purpose of the loan

• Repayment capacity of the borrower

• Collateral or security offered

• Credit history of the borrower

• Industry and market conditions

• Regulatory compliance

• Risk assessment

On average, I handle around 150-200 files per month.

• I prioritize files based on their urgency and importance.

• I ensure that all necessary documents are present and accurate.

• I maintain a record of all files and their status for easy tracking.

• I communicate with clients and team members to resolve any issues or delays.

• Examples: loan applications, credit reports, financial statements.

Deferred Tax Assets and Liabilities are temporary differences between the book value and tax value of assets and liabilities.

• Deferred Tax Assets arise when the tax value of an asset is higher than its book value.

• Deferred Tax Liabilities arise when the tax value of a liability is lower than its book value.

• They are recorded on the balance sheet and can be used to offset future tax liabilities or assets.

• Examples include depreciation, inventory valuation, and tax credits.

• Deferred...read more

Current Ratio is a financial ratio that measures a company's ability to pay its short-term obligations.

• Current Ratio is calculated by dividing a company's current assets by its current liabilities.

• It is used to evaluate a company's liquidity and short-term financial health.

• A ratio of 2:1 is considered healthy, indicating that a company has twice as many current assets as current liabilities.

• A ratio below 1:1 indicates that a company may have difficulty meeting its short-term ...read more