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Library Overview

This e-learning course on BBM - Advances is designed to help users understand the overview of credit function of a bank, various types of loans and advances by a bank. An in-depth discussion of procedure of lending different types of accounts by a bank branch is provided. Further, the course also highlights on financial analysis for lending, different securities provided for loans and advances, and asset categorization by banks based on their performance.

Learning Objective

Overview of credit function of a bank branch
Principles and practice of lending
Financial analysis for lending
Securities used against lending
Credit documentation and sanction
Credit monitoring and loan recovery
Asset categorization

Target Audience

Those who are interested in understanding the operations of a bank branch with respect to loans and advances

1. Overview of Credit Functions

This course provides an understanding of:

The main parameters of classifying bank credit
The key features of fund based and non fund-based credit facilities
Various stages of the life cycle of bank credit
The essential features of each stage of the life cycle

Duration: 1 hour

2. Principle and Practice of Lending

This course provides an understanding of:\

The meaning of bank lending
The types of risks in bank lending
The main principles of bank lending
The due diligence of proposal
The risk rating analysis of applicant and assess the need and quantum of credit

Duration: 1 hour

3. Financial Analysis for Lending

This course provides an understanding of:

The meaning of financial analysis
The types of financial analysis
The meaning of ratio analysis and different kinds of ratios
Each ratio and its implications
The meaning and mechanics of cash flow analysis

Duration: 2 hours

4. Securities for Lending

This course provides an understanding of:

The importance of assignment as a mode of transfer of interest in securities
The attributes and importance of guarantees
The precautions to be taken while issuing guarantees
The importance, attributes, and classification of securities for bank credit
The main forms of charges and security creation
The main requirements of mortgage creation as a bank security
The attributes of different kinds of mortgage
The main advantages and disadvantages of mortgage

Duration: 1.5 hours

5. Credit Documentation and Sanctioning

This course provides an understanding of:

The meaning and need for documentation
The contents of a loan document
The process of documentation
The classification of documents
The elements of execution and execution by different entities
The credit sanctioning process
The delegation of financial powers
The contents of loan policy and loan agreement

Duration: 1 hour

6. Credit Monitoring and Loan Recovery

This course provides an understanding of:

Importance of follow up/monitoring of credit at the branch and other levels of the bank
Various tools and modalities of physical and financial follow-up of credit, specially at the branch level
Need and modality of annual review/renewal of credit
Personal liabilities of the guarantor and principal debtor
Exercising rights of set off in certain cases

Duration: 1 hour

7. Asset Categorization

On completion of this course, you will be able to explain:

The norms for asset classification and income recognition
Meaning and classification of a non-performing assets (NPAs)
Meaning and causes of sickness in business units
Basics of an NPA management
The principles and procedures of rescheduling loans and compromise settlements
The principles and procedure of write-off

Duration: 1 hour