Corporate Banking

Course Outlines
Corporate Banking: Products & Credit Analysis

A QUALITY E-LEARNING PROGRAM BY www.learnwithflip.com
Corporate Banking Products & Services

Chapter
Debt Products
Topics
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. This helps in
understanding how banks structure these
products for clients.
Working Capital Loans
Types of Working Capital Loans;

computing a company's working capital
needs.
Capital Expenditure
(Capex) Loans and
Project Finance
Capex Loans as a generic product, 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.
General Corporate
Purpose / Cash Flow
Mismatch Loans
A discussion on scenarios when such

loans are used.
Agricultural / Rural Loans

& MSME loans
Priority Sector Lending for Agricultural /

Rural Loans. Sources of an agricultural
loan portfolio for a Corporate Bank.
MSME loans.
Bridge Loans
Real Estate Exposure
Current Accounts
Liability
Products
Fixed Deposits
Salary Accounts
Trade Products
What will you learn?
International Trade
Transaction
Recommended
Study time
4 Hours
Bridge Loans; its relationship with

Capital Market Exposure (direct &
indirect).
A discussion on Real Estate Exposure.
A discussion on Current Accounts and its
features.
F.Ds and features. Processes related to
an F.D. such repayment and its renewal,
sweep - in, overdraft on an F.D. etc.
Key aspects of salary accounts, such as
minimum balance, account monitoring
etc.
An overview of the international trade
transactions process and the role of
bank/s associated with this process.
Finitiatives Learning India Pvt. Ltd. (FLIP), 2011. Proprietary content. Please do not misuse!
2 Hours
2 Hours
Course Outlines
Trade Transactions:
Advance Payment
Trade Transactions:
Open Account Trading
Trade Transactions:
Documentary Collections
Trade Transactions:
Letter of Credit (LC)
LC Process Flow Issuance and Settlement
Bank Guarantees and its
Types
Risk and Responsibilities
Trade Finance Products
Trade Finance for
Exporters - Pre Shipment
Export Finance
Post Shipment Export
Finance
Factoring
Trade Finance for
Importers
Loan Equivalent Value
(LEV)
Treasury
Products
Project Finance
and Debt
Categorisation of
Companies
Forward Contract
Swaps
Options
Combinations of Swaps
and Options
Indentifying the Potential
for Treasury Products
Key Characteristics
How such Trade Transactions occur, and

the role of banks in these transactions.
The process flow of documentary
collections such as 'Documents against
Payments', 'Clean Collections' etc.
LC as a mode of trade transaction; and
risks associated with an LC; the parties
in an LC transaction.
A detailed description of the process flow
in an LC transaction with issuance and
settlement.
Bank Guarantees and their purpose.
Categories of Bank Guarantees.
The risks associated with a Bank
Guarantee such as, liability to the bank,
risks to various participants etc.
Classification of the trade products of
banks.
Features of the Pre Shipment Export
Finance for exporters. Risks of preshipment credit and its difference from
regular working capital.
Post Shipment Export Finance for
exporters, its availability with Pre
Shipment Finance as well as a
Standalone facility; Exceptions to this
facility.
Types of Factor arrangements;
Characteristics of invoices; Core services
of a Factor; Process involved in factoring
Trade products available for importers
such as, buyer's credit and supplier's
credit; case study.
A discussion of LEV, to quantify the
credit risk in the client's treasury
exposure.
Categorisation of companies to estimate
the suitable treasury products.
A detailed discussion on Forward
Contracts, Swaps, Options etc., with
illustrations using foreign exchange
transactions.
2 Hours
Factors an RM should consider, to choose

a treasury product for the company.
Key characteristics related to Project
Finance (its structure, Risk Capital etc.).
4 Hours
Course Outlines
Syndication
Project Finance
Perspective in India
A brief description on the key industrial

sectors where project finance occurs.
Infrastructure Project
Types
Types on infrastructure projects (such as

BOT, DBFO etc.)
The process flow of Project Finance with
respect to various participants
Project Finance Structure

Project Appraisal
Components
Debt Syndication
Debt Syndication Process
Key Drivers for
Syndication
Syndicate Financing and
Fees Charged
Securitisation
Securitisation
Transaction - Participants
and Roles
Securitised Products and
their Risk Classification
Securitisation
and Distress
Debt
RBI Guidelines and Basel

Norms for Securitisation
Components of Project Finance (such as

sources of funding, risk mitigation etc.)
An overview of debt syndication, its
partners and key features
A stage-wise description of Debt
Syndication and role of partners.
The factors that contribute to
syndication.
A discussion on the process of syndicate
financing; and the structures used.
A brief overview on the purpose of
securitisation and its advantages
The process flow of a securitisation
transaction, its participants and their
roles, including creating an SPV.
The types of securitisation products in
India (such as Collaterized Loan
Obligations) and types of assets behind
them. Risk classification of each asset
class from a bank's perspective.
A discussion on key points of RBI and
Basel Guidelines related to the regulation
of the securitisation process.
Distressed Debt as a form of finance.
Features of restructuring debt.
Restructured / Distress
Debt
Board for Industrial and
Financial Reconstruction
(BIFR)
One Time Settlement
A scenario wise discussion on various
Corporate Debt
modes of debt restructuring and key
Restructuring
points associated with them.
SARFAESI Act
Debt Recovery Tribunal
(DRT)
Total
4 Hours
18 Hours
Course Outlines
Relationship Management
Chapter
The RM Process
- Client
Segmentation
and Prospecting
RM Process Analysis and

Structuring
Topics
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
A brief discussion on financial analysis.

You will also learn about the business
risks a corporate can face.
Multinationals /
International Corporates
The specific requirements of

Multinational Corporates.
Key Focus Areas &

Regulations
Where a Relationship Manager should

focus while handling a corporate client;
important regulations.
Key Differentiators
A discussion on various 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 Relations
The importance of government relations,

classification of the relationships and
factors to be kept in mind while
managing them.
External Analysis
The analysis of external factors (such as

technological changes etc.) to manage
the risk involved and cross sell various
products.
Recommended
Study time
4 Hours
4 Hours
Course Outlines
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
A brief discussion on various factors

(such as, deals in hand etc.) that must
be considered while assessing the
relationship value of a corporate.
Value of Deal & Incomes

Risk Adjusted Return on
Capital (RAROC) & Risk
Weighted Assets (RWA)
Features affecting RWA
Manging Risk
RM Strategy
How the value of the deal is arrived at;

the types of income a bank earns.
An introduction to RAROC and RWA ;
Basel II and computing RAROC under
Basel II
A discussion on various parameters that
affect RWA (such as, facilities with Cash
Margin etc.). We will also discuss on how
to manage those risks.
Committed and
Uncommitted Facilities
A Brief discussion Committed and

Uncommitted Facilities and its impact on
the value of a deal.
Cross Selling
Cross selling and it importance to the

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
2 Hours
10 Hours
Course Outlines
Credit Analysis
Chapter
Topics
Credit Risk
Management
Introduction to
Credit Risk
Management
Reclassified P&L
Statement
Components of P&L
Statement
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 such as EBITDA Margin
& PAT Margin; ROCE &ROE, with the use
of live examples
Rating Rating Watch
Economic Risk and

Great (Economic) Cycle
of Life
Industry Risk
Company
Analysis Subjective
Parameters
Financial
Analysis - P&L
Statement
Financial
Analysis Balance Sheet
Ratio Analysis
Company Risk
Subjective Factors
Profitability Ratios
Recommended
Study time
An overview of Credit Risk Management

An overview on key norms of Basel I and
Basel II and how does it help bank.
How Ratings & Ratings Watch are used in
Credit Risk Management.
Risks at different levels that are
evaluated for credit analysis.
The economic lifecycle via various stages
and various economic risks with
scenarios.
The characteristics of industry (such as
Entry Barrier ) and factors that
determine the risk behaviour of an
industry (e.g. Government policies )
A discussion on various subjective
factors that are responsible for company
risk. For example, Management
Competency, Concentration Risk etc.
Reclassification of P&L items , from a
lender's use perspective.
Detailed analysis of a P&L Statement COGS, EBIDTA, Taxes, etc.
Basel I and Basel II
Basic Credit Risk Model
Qualitative
Analysis
2 Hours
2 Hours
2 Hours
4 Hours
4 Hours
4 Hours
Course Outlines
Solvency & Leverage

Ratios
Liquidity Ratios
Credit Analysis An Exercise
An exercise on Credit Analysis with a

real-life Annual Report.
Security - order of
importance & types of
Security
Types of Security and
Security Enforcement
Tangibility of Security
Product
Structure: Key
Concepts
Liquidity and
Enforcement of Charge
Basic Terms
RBI Guidelines
Covenants and
Structures & Product
Risk Profiles
Credit Note - 1
Ratios & Terms which evaluate the

financial soundness of the companyTD/TNW, DSCR, etc.; with live examples
Ratios which depict the liquidity scenario
of a company; explanations and live
examples.
Components of Credit
Note
Business Profile of the

Borrower
Credit Note - 2
Financial Profile of the
Borrower
4 Hours
A discussion on securities in order of

importance to their credit risk mitigation.
An overview of the classification of
securities on the basis of tangibility.
Classification of collateral, on the basis of
tangibility
Overview of liquid and illiquid collateral;
how banks can place a charge on the
assets, and enforce them .
An overview of basic terms such as
Tranch, Back to Back Facility etc.
A brief discussion on key aspects of RBI
Guidelines regarding NPAs.
4 Hours
Conditions around a bank's loans, with

caselets. Risk profiles of loan products.
Writing a Credit Note. We will discuss
topics such as:
Components of a Credit Note, Facility
Description and contents of a facility
table, Covenants, etc.
The Business Profile covers dimensions
such as:
Board of Directors, Capital Market Data,
External Ratings available, etc.
The Financial Profile covers areas such
as:
Analysis of P&L and Balance Sheet,
Liquidity and Financial Soundness, and
Financial Projections, Credit Risk and
Credit Risk Mitigants etc.
Total
4 Hours
4 Hours
34 Hours

Corporate Banking

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Corporate Banking

Uploaded by

Copyright:

Available Formats

Course Outlines

Corporate Banking: Products & Credit Analysis

Corporate Banking Products & Services

The target customers, purpose of the

The organisational structure in a typical

Categorisation of Debt Products basis

Working Capital Loans

Types of Working Capital Loans;

Capex Loans as a generic product, and

Term Loan - Put / Call

Variants of Term Loans, with a put / call

A discussion on scenarios when such

Agricultural / Rural Loans

Priority Sector Lending for Agricultural /

What will you learn?

Bridge Loans; its relationship with

How such Trade Transactions occur, and

Factors an RM should consider, to choose

A brief description on the key industrial

Types on infrastructure projects (such as

Project Finance Structure

RBI Guidelines and Basel

Components of Project Finance (such as

RM Process Analysis and

What will you learn?

Relationship Management, key drivers,

The RM Process &

A high level framework of a relationship

Products for Large

The structure of a large corporate, its

Financial Analysis and

A brief discussion on financial analysis.

The specific requirements of

Key Focus Areas &

Where a Relationship Manager should

A discussion on various factors that form

A discussion on the key features of

The importance of government relations,

The analysis of external factors (such as

Assessment of the financial health of the

Factors to be kept in mind while creating

A brief discussion on various factors

Value of Deal & Incomes

How the value of the deal is arrived at;

A Brief discussion Committed and

Cross selling and it importance to the

Positioning for Future

Maintaining a long term relationship;

Computing the performance after cross sell, in a matrix.

Relationship Strategy Mix

Relationship strategy based on potential

The factors an RM must consider, to

Re-categorisation of the Balance Sheet

Analysis of various components of a

Rating Rating Watch

Economic Risk and

An overview of Credit Risk Management

Basel I and Basel II

Basic Credit Risk Model

What will you learn?

Solvency & Leverage

An exercise on Credit Analysis with a

Ratios & Terms which evaluate the

Business Profile of the