Author: Sumit Kakkar
How many Credit Covenants are necessary in a Sanction Letter?
While there are no set parameters on how many credit covenants should be there in a Sanction Letter, one has to keep in mind that ratios tend be inter [...]
Loan Agreements: A contract between unequals!
Bank Loan agreement had been written ages ago. There are innumerable archaic clauses that may be unjustifiably invoked, without assigning any reasons [...]
RBI empowers CRO office: Endeavour to make NBFCs bullet proof!
In a recent circular RBI has made a high decibel statement about the CRO’s independence and has put a lot of onus on the boards of NBFCs. Importantly, [...]
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 [...]
Without Regulatory blessings, Q4-2021 to be litmus test for Banks
As we enter the climax, two questions arise – Would there be large scale Covid provision write backs? and, What would happen to asset growth of banks [...]
Credit Evaluation: How much information is Enough?
How much information is enough for credit evaluation? For a streamlined process a delicate balance needs to be maintained between timeliness and need [...]
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 [...]
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 [...]