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🏦 JAIIB PPB Appraisal and Assessment of Credit Facilities 18 cards
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PPB Capsule Cards PRO Appraisal and Assessment …
What is the general formula to assess a borrower's maximum limit for a Letter of Credit (LC) facility?
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Assessing Letter of Credit (LC) Limit
Appraisal and Assessment of Credit Facilities 36
WA 36
PPB Capsule Cards PRO Appraisal and Assessment …
What is the generally acceptable benchmark for Average DSCR across the entire repayment tenor of a term loan?
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Acceptable DSCR Benchmark
Appraisal and Assessment of Credit Facilities 34
WA 34
PPB Capsule Cards PRO Appraisal and Assessment …
Under the Tandon Committee's First Method of Lending, how is the Maximum Permissible Bank Finance (MPBF) calculated?
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MPBF First Method of Lending
Appraisal and Assessment of Credit Facilities 33
WA 33
PPB Capsule Cards PRO Appraisal and Assessment …
What key elements are included when a bank estimates the 'Cost of Project' for a new business term loan?
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Cost of Project for Term Loans
Appraisal and Assessment of Credit Facilities 33
WA 33
PPB Capsule Cards PRO Appraisal and Assessment …
What are the typical 'Sources of Finance' evaluated by a bank to meet the total Cost of a Project?
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Sources of Finance
Appraisal and Assessment of Credit Facilities 33
WA 33
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PPB Capsule Cards PRO Appraisal and Assessment …
What is Credit Monitoring Arrangement (CMA) data used for in large credit appraisals and what are its key forms?
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CMA Data Requirement
Appraisal and Assessment of Credit Facilities 32
WA 32
PPB Capsule Cards PRO Appraisal and Assessment …
What are the sequential stages that define a manufacturing firm's operating cycle for working capital assessment?
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Operating Cycle of a Business
Appraisal and Assessment of Credit Facilities 31
WA 31
PPB Capsule Cards PRO Appraisal and Assessment …
How does the Tandon Committee's Second Method of Lending ensure higher financial discipline compared to the First Method?
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MPBF Second Method of Lending
Appraisal and Assessment of Credit Facilities 31
WA 31
PPB Capsule Cards PRO Appraisal and Assessment …
Why is the 'Margin for Working Capital' explicitly included in the total Cost of Project for a term loan?
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Margin for Working Capital in Project Cost
Appraisal and Assessment of Credit Facilities 30
WA 30
PPB Capsule Cards PRO Appraisal and Assessment …
If the DSCR is less than 1.50 in the initial years of a project but improves later, how can a bank structure the loan?
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Handling Low Initial DSCR
Appraisal and Assessment of Credit Facilities 29
WA 29
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PPB Capsule Cards PRO Appraisal and Assessment …
Besides net profit, why is 'Depreciation' added back to calculate cash generated for servicing a term loan?
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Cash Flow Components for Repayment
Appraisal and Assessment of Credit Facilities 29
WA 29
PPB Capsule Cards PRO Appraisal and Assessment …
For which specific types of businesses is the Cash Budget Method most appropriate for assessing working capital needs?
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Cash Budget Method
Appraisal and Assessment of Credit Facilities 29
WA 29
PPB Capsule Cards PRO Appraisal and Assessment …
What is the standard formula to calculate DSCR to assess the borrower's repayment capacity for a term loan?
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Debt Service Coverage Ratio (DSCR) Formula
Appraisal and Assessment of Credit Facilities 23
WA 23
PPB Capsule Cards PRO Appraisal and Assessment …
What parameters must a banker consider while assessing non-fund based limits for Bank Guarantees?
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Bank Guarantee Limits Assessment
Appraisal and Assessment of Credit Facilities 31
WA 31
PPB Capsule Cards PRO Appraisal and Assessment …
What is the primary purpose of Credit Risk Rating during the appraisal process?
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Credit Risk Rating
Appraisal and Assessment of Credit Facilities 28
WA 28
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PPB Capsule Cards PRO Appraisal and Assessment …
What is the core objective of preparing projected financial statements when assessing the viability of a new term loan?
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Viability of Business Activity
Appraisal and Assessment of Credit Facilities 25
WA 25
PPB Capsule Cards PRO Appraisal and Assessment …
If an MSE firm's projected annual turnover is ₹100 Lakh, calculate the Bank Finance and Borrower's Margin under the Turnover Method.
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Turnover Method Calculation Example
Appraisal and Assessment of Credit Facilities 25
WA 25
PPB Capsule Cards PRO Appraisal and Assessment …
Why do banks mandate a provision for 'Contingencies' in the project cost estimate?
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Contingencies in Project Cost
Appraisal and Assessment of Credit Facilities 25
WA 25
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Appraisal and Assessment of Credit Facilities — JAIIB PPB Capsules

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All 18 cards on this page
Assessing Letter of Credit (LC) Limit What is the general formula to assess a borrower's maximum limit for a Letter of Credit (LC) facility? Acceptable DSCR Benchmark What is the generally acceptable benchmark for Average DSCR across the entire repayment tenor of a term… MPBF First Method of Lending Under the Tandon Committee's First Method of Lending, how is the Maximum Permissible Bank Finance (MPBF)… Cost of Project for Term Loans What key elements are included when a bank estimates the 'Cost of Project' for a new business term loan? Sources of Finance What are the typical 'Sources of Finance' evaluated by a bank to meet the total Cost of a Project? CMA Data Requirement What is Credit Monitoring Arrangement (CMA) data used for in large credit appraisals and what are its ke… Operating Cycle of a Business What are the sequential stages that define a manufacturing firm's operating cycle for working capital as… MPBF Second Method of Lending How does the Tandon Committee's Second Method of Lending ensure higher financial discipline compared to… Margin for Working Capital in Project Cost Why is the 'Margin for Working Capital' explicitly included in the total Cost of Project for a term loan? Handling Low Initial DSCR If the DSCR is less than 1.50 in the initial years of a project but improves later, how can a bank struc… Cash Flow Components for Repayment Besides net profit, why is 'Depreciation' added back to calculate cash generated for servicing a term lo… Cash Budget Method For which specific types of businesses is the Cash Budget Method most appropriate for assessing working… Debt Service Coverage Ratio (DSCR) Formula What is the standard formula to calculate DSCR to assess the borrower's repayment capacity for a term lo… Bank Guarantee Limits Assessment What parameters must a banker consider while assessing non-fund based limits for Bank Guarantees? Credit Risk Rating What is the primary purpose of Credit Risk Rating during the appraisal process? Viability of Business Activity What is the core objective of preparing projected financial statements when assessing the viability of a… Turnover Method Calculation Example If an MSE firm's projected annual turnover is ₹100 Lakh, calculate the Bank Finance and Borrower's Mar… Contingencies in Project Cost Why do banks mandate a provision for 'Contingencies' in the project cost estimate?
Chapters in this paper
Banker-Customer Relationship Principles of Lending, Different Types of Borrowers, and Types of Credit Facilities Essentials of Bank Computerisation Ethics, Business Ethics & Banking: An Integrated Perspective AML- KYC Guidelines Appraisal and Assessment of Credit Facilities Operational Aspects of CBS Environment Ethics at the Individual Level Operational Aspects of KYC Operational Aspects of Loan Accounts Alternate Delivery Channels – Digital Banking Ethical Dimensions: Employees Opening Accounts of Various Types of Customers Types of Collaterals and their Characteristics Data Communication Network and EFT Systems Work Ethics and the Workplace
Modules in PPB
MODULE A: General Banking Operations MODULE B: Functions of Banks MODULE C: Banking Technology MODULE D: Ethics in Banks and Financial Institutions
JAIIB papers
IE-IFS — Indian Economy & Indian Financial System PPB — Principles & Practices of Banking AFM — Accounting & Financial Management for Bankers RBWM — Retail Banking & Wealth Management
Study formats
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