Introduction: The target customers, purpose of the corporate banking and its offerings.
Organisational Structure: The organisational structure in a typical Corporate Banking division. The Relationship Chain and the Credit Chain and its sub branching into Transaction Banking and Product Management.
Classification of Debt Products: Categorisation of Debt Products basis term, security and purpose.
Working Capital Loans: Types of Working Capital Loans; computing a company's working capital needs. Key terms such as Drawing Power and Consortium Arrangement for loans.
Capital Expenditure (Capex) Loans and Project Finance: Capex Loans and how these are disbursed. Types of Capex loans such as Maintenance Capex, Refinancing existing Term Loans, etc.
Term Loan - Put / Call Option: Variants of Term Loans, with a put / call option for the bank and the company.
Agricultural / Rural Loans & MSME loans: Priority Sector Lending. Sources of an agricultural loan portfolio for a Corporate Bank. MSME loans.
Bridge Loans: Bridge Loans; its relationship with Capital Market Exposure (direct & indirect).
Real Estate Exposure: Concept and regulations relating to Real Estate exposure.
Current Accounts: Current Accounts and its features.
Fixed Deposits(FD): FDs and features. Processes related to an F.D. such as repayment,renewal, sweep - in, overdraft on an F.D. etc.
Salary Accounts: Key aspects of salary accounts, such as minimum balance, account monitoring etc.
International Trade: An overview of the international trade process and the role of bank/s associated with this process.
Trade Transactions: Advance Payment & Open Account Trading - How such trade transactions occur, and the role of banks in these transactions.
Trade Transactions: Documentary Collections - The process flow of documentary collections such as 'Documents against Payments', 'Clean Collections' etc.
Trade Transactions: Letter of Credit (LC) - LC as a mode of trade transaction; risks associated with an LC; the parties in an LC transaction.
LC Process Flow - Issuance and Settlement: Letter of Credit (LC) - LC as a mode of trade transaction; risks associated with an LC; the parties in an LC transaction.
Bank Guarantees: Bank Guarantees and their purpose. Types of Bank Guarantees.
Risk and Responsibilities: The risks associated with a Bank Guarantee such as, liability to the bank, risks to various participants etc.
Trade Finance Products: Classification of trade finance products of banks.
Trade Finance for Exporters - Pre Shipment Export Finance: Features of the Pre Shipment Export Finance for exporters. Risks of pre-shipment credit and its difference from regular working capital.
Post Shipment Export Finance: Post Shipment Export Finance for exporters, its availability with Pre Shipment Finance as well as a Standalone facility; Exceptions to this facility.
Factoring: Types of Factor arrangements; Core services of a Factor; Process involved in factoring.
Trade Finance for Importers: Trade products available for importers such as, buyers' credit and suppliers' credit; case study.
Loan Equivalent Value (LEV): Concept of LEV, to quantify the credit risk in a client's treasury exposure.
Categorisation of Companies: Categorisation of companies to estimate suitable treasury products.
Forward Contracts , Swaps, Options and Combinations: A detailed discussion on Forward Contracts, Swaps, Options etc., with illustrations using foreign exchange transactions.
Indentifying the Potential for Treasury Products: Factors an RM should consider, to choose a treasury product for a client.
|Project Finance and Debt Syndication||
Introduction:Key characteristics related to Project Finance (its structure, Risk Capital etc.).
Project Finance Perspective in India: A brief description on the key industrial sectors where project finance occurs.
Infrastructure Project Types: Types of infrastructure projects (such as BOT, BOOT etc.).
Project Finance Structure: The process flow of Project Finance with respect to various participants.
Project Appraisal Components: Components of Project Finance (such as sources of funding, risk mitigation etc.).
Debt Syndication: An overview of debt syndication, its partners and key features.
Debt Syndication Process: A stage-wise description of Debt Syndication and role of partners.
Key Drivers for Syndication: The factors that contribute to syndication.
Syndicate Financing and Fees Charged: Process of syndicate financing; and the structures used.
|Securitisation and Distress Debt||
Securitisation: A brief overview on the purpose of securitisation and its advantages.
Securitisation Transaction: The process flow of a securitisation transaction, its participants and their roles, including creating an SPV.
Securitised Products and their Risk Classification: The types of securitisation products in India and types of assets behind them. Risk classification of each asset class from a bank's perspective.
Restructured / Distress Debt: Distressed Debt as a form of finance. Features of restructuring debt.
Methods of Debt Restructuring and Redressal-:A scenario wise discussion on various modes of debt restructuring and options open to the bank and the company.
|TOTAL RECOMMENDED LEARNING HOURS||18.5|
|The RM Process - Client Segmentation and Prospecting||
Introduction: Relationship Management, key drivers, scope and requirements; the thumb rules for an RM.
The RM Process & Segmentation: A high level framework of a relationship management process (such as Solution Structuring); client segmentation basis size, geography, etc.
Products for Large Corporates: The structure of a large corporate, its financing requirements, and appropriate solutions.
Financial Analysis and Business Risk: Financial analysis,and business risks a corporate can face.
Multinationals / International Corporates: The specific requirements of Multinational Corporates(MNCs).
Key Focus Areas & Regulations: Where a Relationship Manager should focus while handling a corporate client; important regulations.
Key Differentiators: Factors that form key differentiators in a relationship management (such as, technology integration of corporate and bank systems for faster transactions etc.).
Emerging Corporates, MSMEs: A discussion on the key features of emerging corporates and MSMEs; how MSMEs differ from large corporates.
Government Relationships: The importance of government relations, classification of the relationships and factors to be kept in mind while managing them.
|RM Process - Analysis and Structuring||
External Analysis: The analysis of external factors (such as technological changes etc.) to manage the risk involved and cross sell various products.
Financial Analysis: Assessment of the financial health of the business. Factors affecting the cash flow & risk mitigants.
Solution Structuring: Factors to be kept in mind while creating an optimum solution for the corporate.
Assessing Relationship Value: Factors that must be considered while assessing the relationship value of a corporate.
Value of Deal & Income: How the value of the deal is arrived at; the types of income a bank earns.
Risk Adjusted Return on Capital (RAROC) & Risk Weighted Assets (RWA): An introduction to RAROC and RWA; computation of RAROC.
Features affecting RWA and Managing Risk: Parameters that affect RWA (such as, facilities with Cash Margin etc.),and how to manage risk.
Committed and Uncommitted Facilities: Committed and Uncommitted facilities, and its impact on the value of a deal.
Cross Selling: Cross selling and it importance to Relationship Management.
Positioning for Future Business: Maintaining a long term relationship; making future gains at the cost of immediate loss.
Product Penetration Index (PPI): Computing the performance after cross -sell, in a matrix.
Relationship Strategy Mix: Relationship strategy based on potential and wallet share.
Ethics in Relationship Management: The factors an RM must consider, to ensure conduct of ethical business.
|TOTAL RECOMMENDED LEARNING HOURS||8.5|
|Introduction to Credit Risk Management||
Credit Team Structure: Important aspects of a typical credit appraisal role in a bank. Role of a Credit Analyst, The Credit Function and The Credit Decision.
Credit Risk Management: An overview of Credit Risk Management
Rating, Rating Watch: How Ratings & 'Ratings Watch' are used in Credit Risk Management.
Basic Credit Risk Model: Risks at different levels that are evaluated for credit analysis.
|Economic and Industry Analysis - Qualitative Parameters||
Economic Risk : The economic lifecycle via various stages, and various economic risks with scenarios.
Industry Risk: The characteristics of industry (such as Entry barriers), and factors that determine the risk behaviour of an industry (e.g. Government policies).
|Company Analysis - Qualitative Parameters||
Company Risk & Qualitative Factors: Qualitative factors responsible for company risk such as Management Competency, Concentration Risk etc.
|Financial Analysis - P&L Statement||
Reclassified P&L Statement: Reclassification of P&L items, from a lender's perspective.
Components of P&L Statement: Detailed analysis of a P&L Statement - Cost of Sales, PBDIT etc.
|Financial Analysis - Balance Sheet||
Reclassified Balance Sheet: Re-categorisation of the Balance Sheet items, from a lender's perspective.
Components of Balance Sheet: Analysis of various components of a Balance Sheet.
Profitability Ratios: Profitability ratios such as PBDIT Margin & PAT Margin; ROE, with the use of live examples.
Solvency & Leverage Ratios: Ratios & Terms which evaluate the financial soundness of the company- TD/TNW, ICR, etc.; with live examples.
Liquidity Ratios: Ratios which depict the liquidity scenario of a company; explanations and live examples.
|Credit Analysis - An Exercise||
An exercise on Credit Analysis with a real-life Annual Report.
|Working Capital Assessment||
Max Permissible Bank Finance: Live Case of Good Luck Steel Tubes Ltd.
|Product Structure: Key Concepts||
Basic Terms: An overview of basic terms such as Tranche, Back to Back Facility etc.
Security - order of importance & types of Security: Security in order of importance for credit risk mitigation.
Types of Security and Security Enforcement: Classification of security on the basis of tangibility.
Liquidity and Enforcement of Charge: Overview of liquid and illiquid collateral; how banks can place a charge on the assets, and enforce them.
RBI Guidelines: Key aspects of RBI Guidelines regarding NPAs.
Covenants and Structures & Product Risk Profiles: Conditions around a bank's loans, with caselets. Risk profiles of loan products.
|Credit Note - 1||
Components of Credit Note: Writing a Credit Note,Facility Description and contents of a facility table, Covenants, etc.
|Credit Note - 2||
Business Profile of the Borrower: Dimensions such as Board of Directors, Capital Market Data, External Ratings available, etc.
Financial Profile of the Borrower: Analysis of P&L and Balance Sheet, Liquidity and Financial Soundness, and Financial Projections, Credit Risk and Credit Risk Mitigants etc
|TOTAL RECOMMENDED LEARNING HOURS||34|