Category: SME Lending
Understanding Liquidity Assessment for Credit Risk – PART 2 (NWC)
Even after we have taken due care of matching correctly graded current assets to current liabilities, the business eventualities, customer behaviour a [...]
Understanding Liquidity Assessment for Credit Risk- PART 1 (Current Ratio)
Liquidity assessment using Current Ratio is a powerful tool and a staple for credit risk analysts . But it has its limitations. In this three part ser [...]
Will it remain a lender’s market for long!
Market is rejoicing that credit growth is back. But it was not the doing of the banks. Instead it seems to be lender's market with long wait for credi [...]
Navigating SME Lending Strategy: Two key pointers
‘What is an SME?’ has no all-encompassing answer. Any standardised approach to building SME Lending strategy is therefore fraught with risks. We deep [...]
SME Financing – Opportunity for Alternate Channels
MSMEs seem to be showing the expected resilience and regaining market's interest. Sumit Kakkar explains some of the constraints faced by MSMEs and how [...]
Critical Thinking in Credit Risk: Avoid these Fallacies
Critical Thinking concepts can help build a robust credit risk culture that relies on logic and objectivity and minimises biases. Amit Balooni shares [...]
Credit Sense – Approach and Perspectives
Risk officers and Relationship managers are always at each other’s throats owning to difference in their perspective, often missing out what lies beyo [...]
Banking after Moratorium: Three key Monitorables
With the moratorium behind us, the attention is now on how the loan portfolios will behave. Sumit Kakkar identifies three crucial things that banks ne [...]
Over reliance on credit rating: How Banks constrain SME Lending
Banks are flush with liquidity, but still grappling with twin issues – where to deploy the money and how to source the right credit which meets the st [...]
“Emergency Credit Guarantee” for MSME – Decoding the fine print
Emergency Credit Guarantee for MSME has been unveiled. GOI seems to have pleasantly surprised the banks. There are minimal ambiguities in the eligibil [...]