The Key Parameters used in CMR to measure credit risk are:
1. Liquidity-the liquidity profile of borrower is adjudged by looking at the seasonally adjusted patterns of funds utilization over the past 24 month's period.
2. Firmographics-descriptive attributes like the maturity of the entity, ownership type, industry, location.
3. Repayment Behaviour-month on month analysis of payments made along with the assets classification, are considered to determine if the borrower has a poor or a good track record.
The Model categorises the Entity into broadly three categories:
a) CMR-1 to CMR-3-Never delinquent or No Amount overdue.
b) CMR-4 to CMR-7-Are delinquent but never an NPA
c) CMR-8 to CMR-10-are known to be NPA at some point in time in the past 24 months.
Important points:
1. Borrowers with CMR rating up to CMR-3 should be given preference for faster disposal
2. For CMR 4/5, need-based facilities may be approved.
3. For CMR 6/7, Proper justification for the sanction/enhancement should be given. Credit Risk mitigants like additional collateral, guarantee etc.may be stipulated.
4. For CMR of 8/9/10 may not be consider in case of new proposal while in case of existing accounts, enhancement may be done if reason is justifiable. Credit Risk mitigants like additional collateral, guarantee etc. may be stipulated.
هذه القصة مأخوذة من طبعة July 2020 من BANKING FINANCE.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة July 2020 من BANKING FINANCE.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
EMBRACING SUSTAINABILITY: THE RISE OF GREEN MARKETING IN THE MODERN BUSINESS LANDSCAPE
Marketing is a great tool to increase awareness of one's product or service as well as establish oneself as a trustworthy and reputable brand in a chosen field.
RISK IN BANKING: AN INEVITABLE THING THAT NEEDS TO BE MITIGATED NOT AVOIDED
As we all know that the banking is a business of trust where we are dealing with public money with utmost care and earn the profit which makes the bank afloat. Risk is involved in every business decision of banking be it fund based decision, Non-fund-based decision, Financial decision or Non-financial decision.
ADDRESSING CLIMATE RISK IN INDIAN BANKS: STRATEGIES FOR MITIGATION AND RESILIENCE
The financial sector faces a dual challenge: recalibrating operations and strategies to support the green transition while bolstering resilience against the increasing vulnerability to adverse climate events.
GROUP INSOLVENCY FRAMEWORK - AN EAGERLY AWAITED AMENDMENT TO THE INSOLVENCY AND BANKRUPTCY CODE (IBC).
Abstract: Insolvency and Bankruptcy code (IBC) was introduced in 2016 to provide for a robust and efficient insolvency ecosystem in India. At present, the insolvency regime takes up insolvency proceedings on individual entity basis i.e. each corporate debtor is treated as an individual entity and resolution is done accordingly.
HOW ROBOTICS IS CHANGING THE FACE OF INDIAN BANKING: AN IN-DEPTH ANALYSIS
Introduction - The banking sector is the backbone of any economy, and in India, it has been witnessing significant transformations driven by technological advancements.
Exim Bank transfers Rs. 252 crore balance of profit to Gol
Ms. Harsha Bangari, Managing Director, Export-Import Bank of India (Exim Bank/the Bank), presented the transfer receipt of Rs. 252 crore to Hon'ble Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, representing the balance of net profit for the financial year ended March 31, 2024, transferred to the Government of India.
Indian Bank observes International Day of Yoga
Indian Bank, observed the 10th International Day of Yoga with the central theme, 'Yoga for self and society'.
India Exim Bank opens its East Africa representative office in Nairobi, Kenya
Export-Import Bank of India (India Exim Bank) on May 31, 2024, inaugurated the East Africa Representative Office in Nairobi, Kenya in the gracious presence of H.E. Dr. Musalia Mudavadi, Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs, Republic of Kenya; Dr. Vivek Joshi, Secretary, Department of Financial Services, Ministry of Finance, Government of India; H.E. Ms. Namgya C. Khampa, High Commissioner of India to Kenya; and Ms. Harsha Bangari, Managing Director, India Exim Bank.
TACKLING TRADE-BASED MONEY LAUNDERING IN THE MODERN FINANCIAL LANDSCAPE
If we inquire informally among a group of bankers about familiarity with terms like a Letter of Credit (L/ C), Bill of entry (BOE), or Buyer's Credit, only a few might possess this knowledge. This introduces us to the intricate world of trade finance-a realm filled with unique terminologies and practices, characterized by its complexity and specialization.
CHALLENGE OF NPAS IN THE INDIAN BANKING SECTOR
India has a long history of venerated banking system of over 200 years, in which banks have been playing a pivotal role in making financial sector strong and viable through sustainable pace of economic growth. Banking System in India is diverse and encompasses commercial banks, regional rural banks, urban cooperative banks, and primary agricultural credit societies. After independence, several changes have taken place in the banking sector right from government monitored policies to the breezing liberalized world of post 1991 period.
