In this course, we shall provide a vivid description of most of the aspects of Corporate Credit e.g. The different types of credit available globally, the procedures involved in providing such credits, the different angles of looking into the appraisal by the lenders, follow-through of the credit, post disbursement of funds, containing the adverse effects of any economic upheaval, and also discuss in detail the support tools for the credit analyst like Financial Statements, Ratios involved, Management Information Systems, Financial Reports, Rating methodology etc.
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To top it up, major aspects relating to the management of stressed accounts are also docked into the curriculum.
Policy makers of the country, Corporate Entities, Individuals pursuing Finance course, Professionals engaged in corporate credit, Lenders providing finance to the corporate - are all dabbling with the importance of credit and commercial lending, in one way or the other, in the economic progress of a nation.
This course is intended to provide, in detail, the conceptual clarity and process flow as to how the requirement of finance is established, how it is delivered and how the quality of the credit portfolio is maintained. The repayment mechanisms, covenants and concepts of how the funds get recycled in the economy would be appreciated. Presented in a simple, logical and lucid manner, the course does not demand any prior basic knowledge of Finance, Banking or allied areas.
The course will be of value to the Graduates and MBAs pursuing Banking & Finance subjects owing to its clarity, brevity and easy-to-understand format. It will also be of value to practising bankers (e.g., Credit Analysts, Relationship Managers, Maintenance Officers) who desire intensive exposure to the different facets of credit portfolio. The course will contribute immensely to Senior Finance Executives from various industries / corporate, seeking credit facilities from Banks and Financial Institutions and selecting the appropriate credit products for their enterprises. The course will afford an immersive experience to investors active in the debt market globally.
What you'll learn
- The Learners will have a 360-degree view of concepts of lending and maintenance of credit portfolio.
- The learners will understand the different processes involved in protecting the portfolio-value from erosion under various economic and financial conditions.
- The course will juxtapose different best practices and afford a global perspective.
- The prospective learners will grasp techniques of analysis of financial statements / different ratios.
- Appropriate guidance on Foreign Exchange concepts / processes / Import & Export Procedures etc.
Syllabus
Section 1: Evolvement of Corporate Finance
Subsection 1- Inception of credit & its evolution – Development of Transaction Banking
Subsection 2- Surplus & Deficit sectors of the economy – Channelising resources from the Surplus to Deficit Sectors – Financial Intermediation
Subsection 3- Cardinal principles of credit.
Subsection 4- Five C’s
Section 2: Legal framework
Subsection 1- Legal framework concerning Corporate credit.
Subsection 2- Documentation of the Lender-borrower contractual relationship.
Subsection 3- Conflict resolution in international trade.
Section 3: KYC & Due Diligence- its relevance
Subsection 1-Trade Based Money Laundering
Subsection 2- FATCA
Subsection 3- CRS
Section 4: Financial Statement Analysis.
Subsection 1: Structure of P&L, Balance Sheet – Documentation of Performance and Financials of Business Entities
Subsection 2: Various Financial Ratios and their implications.
Subsection 3: Measurement of credit risk as modelled from Financial Ratios.
Subsection 4: Analysis of the Financial Statements – Extracting the meaning out of the organised numbers.
Subsection 5: Cash & funds flow – significance.
Subsection 6: Creative accounting
Section 5: Quantitative Credit- Analysis & Appraisal
Subsection 1: Appraisal & Assessment- quantification of credit needs & risk mitigation.
Subsection 2: Different products of credit (Revolving Credit, SBLC etc)
Subsection 3: Project Finance- funding of fixed assets.
Section 6: Banking beyond natural boundaries
Subsection 1: Theories & Concepts of Foreign Exchange
Subsection 2: Different products available ( LC, BG, etc.)
Subsection 3: Risk mitigation.
Subsection 4: International Law & Practices.
Section 7: Credit administration
Subsection 1: Execution of Documents - Formation of specific contracts & agreements: Borrower & Guarantor's legal obligations
Subsection 2: Disbursement of funds (Consortium, MBA, Sole banking)
Subsection 3: Monitoring of financial assets- protecting the economic value of the financial portfolio.
Subsection 4: Information needs & flow.
Section 8: Business failure & bailout
Subsection 1: Business failures
Subsection 2: Its impact on the economy/lenders
Subsection 3: Bailout-the process
