a) Introduction: Credit Definition, Concept of Credit
Management, Characteristics of Credit, Credit Instruments
b) Credit Retail: Credit Cards, Consumption loans, Personal
Loans, Consumer Durables, Two Wheelers, Four Wheelers,
Educational Loans, Loans against Jewelry, Shares
c) Business Loans to Individuals, Partnerships, MSME, and other
Priority Sector Loans
d) Corporate Loans – Private Limited, Public Limited, Listed
Companies, Startups
1. Discuss the characteristic features of credit advances by
commercial banks
2. What is meant by retail credit? Write short notes on loans
through credit cards
3. Write a brief note on gold loans and loans against jewelry
4. Discuss the loans and advances for education
5. Examine loans and advances made by commercial banks
against security of shares
6. State and explain credit for MSME sector
7. Write a detailed explanation on advances made by
commercial banks for the priority sector
8. Define and explain Startups with suitable examples. Write
briefly on corporate advances for Startups in India
a) Meaning of Credit Policy, Principles of Sound Lending,
Formulation of Loan Policy, Administration of Credit, Factors
Influencing Loan Policy
b) Evaluation of Applicant, Credit Monitoring Organization of
Bank Lending, Credit Process, Loan Pricing, Classification of
Securities, Various Credit Committees, Priority Sector Lending
c) Scrutiny of Applications, Bank Statements and Income Tax
Returns, Financial Statements, Audited Accounts, Balance
Sheet, Profit & Loss Statement, Financial Statement Analysis,
Cash Flows and various Ratios
d) KYC Verification, Credit Score (CIBIL, Experian), Credit Rating.
Bankers Reference, MCA 21 and Other Sources of Information,
Credit Appraisal as per RBI Regulations
1. Explain the principles of sound lending by commercial banks
2. What is meant by credit policy? Discuss the formulation of
loan policy by commercial banks
3. What is understood by Credit Monitoring? Write a brief note
on credit process by a commercial bank
4. What is loan pricing? Bring out the methods followed by
commercial banks for pricing of loans
5. What are the various credit committees in a financial
institution? What is the the role of credit committees in
commercial banks?
6. Enumerate and briefly explain the classification of securities
demanded by commercial banks from their customers
a) Credit Risks in Banks, Systematic and Unsystematic Risk, Asset
Liability Management Risk, Foreign Exchange Risk
Management
b) Internal Control and Compliance Risk, Information Technology
Risk, Environmental and Social Risk Management, Money
Laundering Prevention
c) Credit risk Management Before Issuing New Loans, Lending
Policy, Credit Analysis, Basel III Norms
d) Credit Information Analysis, Supervising and Monitoring
Activities, Securitizing Loans, Resolution for NPAs, Loan Loss
Provisions
1. Define credit risk. Enumerate the risks encountered by
financial institutions
2. Discuss the following risks faced by commercial banks in their
lending and investment activities:
a) Systematic and Unsystematic Risk
b) Asset Liability Management Risk
3. Discuss the following risks faced by commercial banks in their
lending and investment activities:
a) Internal Control and Compliance Risk
b) Information Technology Risk
4. Explain the concept of credit risk management by financial
institutions
5. Write short notes on:
a) Foreign Exchange Risk
b) Environmental and Social Risk
6. Discuss the NPA Resolution for management of NPAs in the
financial instituions
7. Define Loan Loss Provisioning by financial institutions.
Explain how the technique of loan loss provisioning helps
banks for managing credit risk
8. Write explanatory notes on Basel III norms for improving the
financial health of the commercial banks
